Annual Report 2018-2019
Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.
For more information about Douglas Emmett, please visit their website at www.douglasemmett.com.
A Letter from the CEO
We are increasingly becoming an urban world, with people moving into city centers at a rate never experienced before. Couple this great migration with the technological revolution that has significantly impacted and transformed many aspects of our lives, from how we communicate and purchase goods and services to how we manage our money and move from one place to another, and it quickly becomes clear that the need for placemaking and destination management organizations like Downtown Santa Monica, Inc. has never been greater. Nor have the calls for us to bring about positive change.
A reassuring takeaway is that Downtown Santa Monica and Third Street Promenade remains one of the premiere destinations in all of Southern California, attracting millions of people each year. We are still a healthy economic engine for the city, and a beloved gathering place for our residents. DTSM, Inc. continues to build upon this legacy, fortifying those elements that bring us prolonged success while pivoting to meet the challenges of tomorrow.
Throughout the last year this organization has been diligently working on initiatives to push our downtown forward — the most significant being Promenade 3.0.
When it opened in 1989, the Third Street Promenade was embraced as Santa Monica's "living room," and it still serves that purpose today. However, it is imperative that this pedestrian paradise continues to evolve in the face of increased competition from other regional destinations. It needs not just capital investment, but also a renewed purpose, driven by a vision that will ensure it remains one of the most celebrated public spaces in the world, meeting the needs and wants of Santa Monicans today and into the future.
To create that vision, DTSM, Inc. and the City of Santa Monica have launched Promenade 3.0, an extensive public process to build on the Promenade's legacy. Experts in urban placemaking have been called on to help study the Promenade and how people enjoy it today. With input from property owners, residents and business owners, and the utilization of robust data collection and surveys, the goal is to craft and move toward implementation of a master plan to guide capital improvements, cultural programming and business recruitment for continued success.
In addition to Promenade 3.0, DTSM, Inc. continues its work in a number of areas, from marketing and communication, to economic development, placemaking and mobility.
For example, this past year we launched the Quality of Life Team, an extension of our successful and highly regarded Ambassador Program, to work closely with our city partners on finding solutions to homelessness. These valued team members engage daily with those who are struggling, helping them access services or reuniting them with family.
Our economic development arm is actively recruiting new, exciting retail and dining concepts, serving as a liaison to push projects through approvals and permitting in a timely fashion. We have created a business recruitment website loaded with pertinent information to guide those seeking to set up shop in our downtown. That includes traditional brick-and-mortar as well as experiential pop-ups.
We have engaged with shared mobility companies like Bird and Lyft, conducted a thorough audit of how curbside space is being used to develop new projects like a mobile-delivery-parking pilot program, and have instituted a data collection and reporting program to better inform future decision-making.
And for the first time ever DTSM, Inc. partnered with the City of Santa Monica, the Santa Monica Pier Corp. and Santa Monica Place to host a citywide PRIDE celebration, dubbed SaMo PRIDE. The entire month of June was loaded with family-friendly events that paid tribute to the contributions made by the LGBTQ+ members of our community. As part of SaMo PRIDE, DTSM, Inc. produced PRIDE on the Promenade, a free event that spanned the entire length of the Promenade. It was the first time in six years that DTSM, Inc. was allowed by the City to produce an event of that size. We hope to expand upon this with more large-scale events.
Our Board of Directors has continued advocating for more housing that meets the needs of people from all socio-economic backgrounds, reliable and diverse transit options, engaging public art, affordable dining and retail concepts, plus enhanced safety and maintenance. Our board members are dedicated and passionate about our downtown and we are grateful for their insights and leadership.
Our role as Downtown Santa Monica's protector and nurturer is one we never take for granted. We relish opportunities to ensure this remains an attractive, safe and enjoyable place to live, work, create and thrive.
The following report provides greater detail into the work this organization performs. It serves as a source of pride, inspiration, reflection and helps us dedicate ourselves anew to our mission to serve the residents, property owners, merchants and the millions who visit us every year.
We hope you find this report informative and inspiring as well. After all, this is your downtown, too.
The mission of DTSM, Inc. is to work with the City of Santa Monica to promote economic stability, growth and community life within Downtown Santa Monica through responsible planning, development, management and coordination of programs, projects and services designed to benefit the community as a whole, which includes Downtown businesses, property owners, residents and visitors.
Downtown property owners are assessed annually based on the zone in which their property is located.
This map illustrates the five benefit zones and their respective total assessments.
Following is a summary of DTSM, Inc.'s FY18/19 financial statements for all programs and operations.
|STATEMENT OF ACTIVITIES||June 30, 2019
|June 30, 2018
|Parks Program Revenue||$731,198||$507,416|
|Ice at Santa Monica Revenue||$1,023,916||$1,084,763|
|Program Operation Services||$1,332,088||$1,326,262|
|Dolphin Change Program||$10,300||$10,307|
|Ice at Santa Monica Expense||$937,258||949,794|
|Parks Program Expense||$637,381||493,753|
* DTSM board allocated additional funds from the organization's reserves for special projects.
|Statement of financial position||June 30, 2019
|June 30, 2018
|Total Net Assets||$3,170,762||$3,421,274|
|Total Liabilities & Net Assets||$4,399,665||$4,246,988|
Median Household Income projected to increase 35% over the next 5 years. The US median is projected to increase only 14% over the same period.
The Plaza at Santa Monica is a forthcoming sustainable community destination at 4th and Arizona — exemplifying iconic, multi-use architecture and offering vibrant open public space and community programs for all Santa Monica residents.
Designed by OMA, the renowned architecture firm led by Rem Koolhaas, the plan creates iconic, 'stacked,' multi-purpose spaces with fantastic views for all to enjoy. Included in the project is a 240-room hotel, office space, ample multi-level parking, bike station, and over 12,000 square feet of indoor cultural space, allowing for an active schedule of installation and performance programming. The highlight feature is over 42,000 square feet of open public space, including a community garden and a dog park, the first in downtown Santa Monica.
With such abundant public benefits in the near future, and sponsorship of winter 2019 family programs like ICE at Santa Monica, The Plaza at Santa Monica is slated to become the authentic "living room" of the community.
For more information, please visit theplazaatsantamonica.com.
Fondly referred to as "the blue shirts," hospitality ambassadors have made a lasting impression with residents and visitors as the dependable, friendly and familiar faces of Downtown Santa Monica.
Since 2009, the Downtown Santa Monica Hospitality Ambassadors have greeted patrons, provided business referrals or directions, assisted in finding lost children or vehicles, and more. As the acting eyes and ears of the district, ambassadors will kindly notify patrons of quality of life violations such as smoking, scooting or biking on the Third Street Promenade, sleeping on public property, and filming without a permit.
All interactions are recorded and reviewed regularly to maintain the quality of service this essential program provides.
Quality of Life Ambassadors are a new addition to the Downtown Santa Monica Ambassador Program. These valued team members roam the district daily keeping an acute eye on the public realm.
In July 2018, a new ilk of hospitality ambassador was introduced to the downtown. The Quality of Life team, or "QOL" for short, have received specialized training to respond directly to calls from stakeholders, proactively engage in homeless outreach and address issues that require more nuance than traditional hospitality ambassadors. Quality of Life ambassadors work closely with DTSM, Inc. staff to inform the Santa Monica Police Department of ongoing issues in the district.
Quality of Life Interactions
The Downtown Santa Monica Maintenance Program provides round-the-clock cleaning of district streets, sidewalks, parking structures and alleyways. The custodial and power washing services, made possible by property assessments, have had an immense impact on the public perception of downtown.
- Clean and maintain parking structure restrooms (including restocking hand towels and other supplies)
- Clean and maintain elevator interiors
- Empty parking structure trash bins and replace trash bags
- Walk parking structures removing loose trash and debris
- Mop parking structure stairwells, restrooms, landings and lobby areas
- Report non-functioning lights in parking structures and elevators
- Spray and wipe down handrails in parking structure stairwells
- Spray and wipe signage and trash bin cages
- Spray and wipe walls in parking structure restrooms, lobby areas, stairwells and landings
- Clean and deodorize trash bin liners
- Continuously remove graffiti, flyers and handbills
- Attend to emergency maintenance issues such as spill clean-ups
- Apply touch-up paint to street and parking structure amenities such as light poles, benches, railings and trash bins
2,000,000+ sq. ft.
The purpose of the Marketing Department is to amplify DTSM, Inc.'s brand and key messages, promote local events and district businesses and attractions, and increase positive sentiment and awareness for Downtown Santa Monica. That is done through a robust marketing program inclusive of advertising, public relations efforts, stakeholder communication, partnerships, and special event production.
In FY2018/19, the Marketing Department continued emphasizing social media as the premiere means of reaching Downtown Santa Monica's targeted audience with a calendar of engaging and informative posts highlighting products and services offered by downtown businesses, shining a spotlight on the district's historical architecture and dazzling landscapes, as well as promoting the area's laid-back, yet sophisticated vibe, and local events to drive attendance.
DTSM, Inc. expanded its collaboration with social media influencers by developing a prolonged campaign with local brand ambassadors with expertise in various verticals, from fashion and lifestyle, to dining and health and wellness. Using these influencers helped DTSM, Inc. expand our reach both locally and abroad.
ADVERTISING & PUBLIC RELATIONS
To ensure that downtown remains top of mind as a premiere SoCal destination, DTSM, Inc. engaged in multiple advertising campaigns across a wide range of platforms including transit, print, out-of-home, radio and targeted digital. Advertising partners included Santa Monica Daily Press, Surf Santa Monica, The Argonaut, KCRW, KOST 103FM, Big Blue Bus, Pride Media, Los Angeles Magazine and LA Weekly.
DTSM, Inc. also produces a number of free, community-driven and family-friendly events to enhance the visitor experience including Ice at Santa Monica, the Westside's premiere outdoor ice-skating rink, and the Official City of Santa Monica Holiday Tree Lighting. This year DTSM, Inc. partnered with The Plaza at Santa Monica to create a free weekly film series at Ice at Santa Monica that featured children's films as well as critically-acclaimed films in which the City of Angels played a starring role. The Plaza at Santa Monica built and installed a fully-functional outdoor movie theatre for the series.
DTSM, Inc. has also been working with the City of Santa Monica on special event policy changes that could allow for larger, more culturally rich events to take place on Third Street Promenade. The goal is to provide top-notch community events that fit with the Downtown Santa Monica brand and appeal to our residents and businesses.
DTSM, Inc. partnered with the City, Santa Monica Pier Corp. and Santa Monica Place, as well as other community groups, to produce the first-ever SaMo PRIDE, a month-long celebration of the contributions made by the LGBTQ+ community, individuality, inclusivity and love in every color. The entire month of June was packed with events, including PRIDE on the Promenade, which took place on June 15, 2019. The festival featured over 40,000 attendees, 20 performances on two stages, 30 vendor and community group booths, and 2.5 billion media impressions. Over 80 percent of visitors surveyed reported positive or very positive impressions of PRIDE. Over 50 percent stated that they had come to the Promenade specifically for PRIDE.
Feedback was also solicited from Promenade businesses. Increased foot traffic was reported by 68 percent of businesses surveyed, while 52 percent said that sales exceeded projections. All stated that the event was a success overall and would support making SaMo PRIDE an annual event.
Filming and Events
The Marketing Department assists district businesses and outside brands by providing guidance on how to comply with the City's requirements and regulations as they produce their own events and activations. DTSM, Inc.'s special events manager works closely with various brands and organizations to help maintain a delicate balance on the Third Street Promenade, which is both a shopping, dining and entertainment destination, as well as a safe place for self-expression and the exchange of ideas.
Located in Santa Monica, CA and steps away from the beach and iconic Santa Monica Pier, Santa Monica Place is anchored by Bloomingdale's, an innovative Nordstrom concept store and an array of the city's best shops. The luxury shopping center offers over 70 premier shops, restaurants and experiences including Louis Vuitton and Tiffany & Co., The Cheesecake Factory, entertainment venues such as ArcLight Cinemas and the new Cayton Children's Museum.
For more information about Santa Monica Place, please visit their website at www.santamonicaplace.com.
DTSM, Inc. continues to play a critical role in enhancing and enlivening public space through interactive programming and infrastructure investment. These programs and more will prepare us for larger planning projects that lie ahead, such as the redevelopment of Third Street Promenade and activation of private plazas and public sidewalks.
In September 2018, the 1200 block of Third Street Promenade was transformed overnight into a living laboratory called "The Experiment." DTSM, Inc. incorporated input gathered from public meetings, then used proven practices in placemaking to create a people-based design centered around moveable furniture, decor, and programmatic elements like music and games. The experiential project serves as an outdoor incubator to test, study, and gather feedback from the public on amenities and techniques to help inform DTSM, Inc., the City, and stakeholders on best-practices for future investment in Promenade 3.0.
Lincoln Light Poles
Using beautification and placemaking funds from our Lincoln Boulevard property owners, DTSM, Inc. implemented a light pole branding program along the highly trafficked street. The 46 graphically wrapped light poles serve a variety of purposes along our eastern gateway, including providing a sense of place, beautifying otherwise mundane infrastructure, marketing the neighborhood and protecting against graffiti and other forms of vandalism. Ambassadors deployed along Lincoln Boulevard - or Zone L - historically have reported almost three-times as many instances of stickers and graffiti removal per service hour than an ambassador deployed in the other downtown zones. Since the wraps were installed at the end of August, monthly graffiti and sticker removal has dropped by 29 percent on Lincoln Boulevard.
Promenade Fountain Enhancements
Who says facelifts are strictly for the Hollywood elite? Serving as central gathering points, meeting places, and photo opportunities for over three decades, the three dinosaur fountains along Third Street Promenade were in dire need of an aesthetic upgrade. DTSM, Inc. partnered with the City of Santa Monica and Suisman Urban Design to refurbish the iconic centerpieces to the tune of $450,000. Completed in August 2018, the fountains feature sparkling blue pools, additional greenery and plant material, and a new concrete color scheme. What's old is new again!
Creating the Third Street Promenade of the future.
There's no doubt Third Street Promenade, the late 1980s evolution of the Third Street Mall of the 1960s, is a tremendous success. But Santa Monicans are known for being progressive, always wanting to take on new challenges and continue to evolve. As the Promenade approaches it 30th anniversary DTSM, Inc. and the City of Santa Monica have launched Promenade 3.0, a placemaking project to determine how the street can best serve the next generation of residents and visitors amid the changing retail environment.
Experts in urban placemaking from Rios Clementi Hale Studios and Gehl have been called on to study the Promenade, through an extensive public process, to determine how people enjoy it today. In early 2020, the design team will unveil a master plan to guide capital improvements, programming and retail and restaurant recruitment for a sustainable and prosperous future.
Promenade 3.0 will focus on the following three lanes:
LANE 1: EFFECTIVELY MANAGE PUBLIC SPACE
DTSM, Inc. and the City of Santa Monica will draft and approve a new Services Agreement that strengthens the relationship between the two groups, fosters greater levels of collaboration and better defines roles and responsibilities to help meet the challenges of today. As part of this work, DTSM, Inc. will play a leading role in approving and managing events on the Promenade, improving wayfinding and enhancing public safety.
LANE 2: MAXIMIZE UTILITY OF PRIVATE PROPERTY
Later this year, with the advice of DTSM, Inc., the City of Santa Monica will introduce an interim zoning ordinance to test a slate of relaxed ordinances designed to stimulate leasing activity. Revisions under consideration include enhancements to zoning for nightlife and entertainment, flexibility to divide spaces and change uses to better meet market conditions, and improvements to the function of alleys, outdoor dining and other ancillary spaces. Opportunities to stimulate leasing to unique, local and independent retail and entertainment concepts will be explored in partnership with property owners.
LANE 3: DEVELOP SUPPORTIVE PHYSICAL INFRASTRUCTURE
Through an extensive public process involving key stakeholders, including property owners, the City of Santa Monica, DTSM, Inc., merchants and residents, significant resources will be devoted to updating the Promenade's infrastructure to coincide with new programming, all the while recognizing the Promenade's unique role as both an economic engine for Santa Monica as well as an important public gathering space fostering community connections. DTSM, Inc., with the help of urban placemaking experts, is in the process of testing new street furniture and other amenities, as well as event programming with the goal of formulating a vision for the Promenade's future that will be vetted by the public and ultimately approved by the City Council and property owners.
For more information or to provide feedback on Promenade 3.0. visit DowntownSM.com/Promenade
The goal of the Economic Development arm of DTSM, Inc. is to maximize the vitality of downtown by fostering a diverse, engaging mix of high-quality retail, restaurant and entertainment businesses and other active uses. Programs include publishing a quarterly market report, the development of a data-driven website for prospective tenants and downtown brokers and providing permitting assistance to ease the burden of opening a new business in the district.
Quarterly Market Reports
This year, the Economic Development and Data and Research departments produced quarterly market reports, which provide insight into the local real estate scene. The reports were released each quarter at "Brokers' Breakfasts," at which local real estate brokers discussed their work and the trends they are witnessing. The larger goal of these meetings and conversations is to ensure that Downtown Santa Monica continues to be a resource for and a partner with the downtown real estate community.
Click here to view the 2018 Quarterly Market Reports.
Choose Santa Monica
The team also launched ChooseSantaMonica.com. The informative site tells the story of downtown, presents key data sets, displays available retail spaces in an interactive map, and guides users through a set of questions to inform them about the steps required to open a business in Downtown Santa Monica. The audience for the site includes prospective businesses, brokers, property owners, and new merchants.
Visit ChooseSantaMonica.com today.
Economic Development provides ongoing merchant support to prospective and existing businesses. This year, several restaurants were assisted in obtaining permits for outdoor seating, which makes our streets more vibrant and bolsters business. Assistance was also provided to a number of temporary retail concepts, or pop ups, helping them work through the City's permitting process so that they were able to open in a timely manner. DTSM, Inc. supports pop ups because they activate otherwise vacant spaces and attract visitors.
Business Openings and Closures
Whether you're looking for thin crust pizza and wine coolers from Paperboy, modern beach tacos from Azulé Taqueria, a 20+ course tasting menu experience from Michelin-starred Dialogue by Chef Dave Beran, a fresh fish sandwich and boardwalk fries from the Voltaggio Brothers' STRFSH, or a couple of scoops of your favorite flavors in a homemade waffle cone from Sloan's, The Gallery has it all.
New to The Gallery is SOCIALEATS, a food discovery platform in real life, including five original concepts by K2 Restaurants, and the first West Coast location of Fuku coming soon.
DTSM, Inc. is governed by a 13-member volunteer board of directors. Six board members are elected by Downtown property owners; six board members are appointed by the Santa Monica City Council; and one board seat is reserved for the City of Santa Monica's city manager or his/her designee.
BOARD & COMMITTEE MEETINGS
All board and committee meetings of the DTSM, Inc. Board of Directors are open to the public. Agendas are posted in advance at DowntownSM.com and with the Santa Monica City Clerk. To join the distribution list for meeting notices, please email [email protected]
FY2018/2019 Board of Directors
DTSM, Inc. staff is responsible for day-to-day oversight of the neighborhood and the organization's programs and operations.