Pumping Up the Downtown Economy 9 to 5

By Jorge Casuso

March 6 -- It is a typical weekday at lunchtime, and Downtown eateries are doing a brisk business. Office workers line up at fast food outlets and food courts to grab a quick bite, while at upscale restaurants, casually dressed bosses woo clients over gourmet meals.

While the dramatic success of the Third Street Promenade has focused attention on the 10 million annual visitors lured to the strip by its thriving nightlife, another force has been quietly working 9 to 5 to help the Downtown thrive.

For more than a decade, the workforce around the Bayside District -­ which according to State employment figures numbered approximately 22,000 last year -­ has helped pump life into the Downtown economy, keeping it afloat before the nighttime throngs hit the popular visitor destination.

"Keeping that early morning, daytime and early evening vitality adds to the vibrancy Downtown," said Robert O. York, a consultant for the Bayside District. "People on the streets is what¹s expected of a vibrant Downtown. People attract people."

"When you¹re looking for a sustainable Downtown, you look for one with office and retail," said Gwen Pentecost, senior administrative analyst for the City's Division of Economic Development. "One of the things that makes a Downtown or commercial area viable is the office workers."

"I think the daytime workers really supply a big boost to the daytime
population," said John Warfel, who is chair of the Bayside District board and owns a real estate investment company Downtown. "It's a big plus and a big part of Downtown, but people don¹t focus on it."

For a century, Downtown Santa Monica was a central hub for white-and-blue collar workers who kept the cogs of the old economy turning. But the dramatic rise of the Third Street Promenade as a dining and entertainment destination has lured a new workforce to the heart of the city.

Old Downtown buildings with small footprints not conducive to large
corporate firms are ideal for small entertainment and high-tech companies. And during the past 15 years, postproduction houses, design firms and dot.com entrepreneurs have carved out niches in old brick buildings, bringing younger, more educated workers Downtown.

"For a long time there was very limited use of the upper floors," said York, who is a partner in the Fransen Co. "We just don¹t have the big footprint office towers the big firms are looking for. The Downtown is not dominated by one particular firm or group of firms.

"The environment has changed dramatically," York said. "Its proximity to the workforce, the ambience and amenities the Downtown offers. Once you get a certain workforce, there's a momentum that builds. It's a very desirable place to be."

If the bigger firms are looking for the space, the smaller firms that have
streamed into the Downtown are lured by the restaurants and shops, the weather and the prospect of not having to get into your car to run the routine errands of a typical business day.

"I like to be within walking distance of Downtown," said Tom Larmore, a partner in the law firm Harding, Larmore, Kutcher & Kozal, which has offices on the corner of 6th Street and Arizona Avenue. "There are a lot of restaurants, and a lot of our stuff is done at City Hall, which is close by."

"I love working Downtown because of the restaurants," said Randy Brant, senior vice president of development leasing for Macerich Co., which has an office at 4th Street and Wilshire Boulevard.

"Within a reasonable walk I have a few dozen restaurants to choose from. My workers can run to Banana Republic and Macy¹s. You don¹t have to get in your car."

"I don¹t get in my car. I really like that," said Warfel, whose company
leases office space in the white tower at 100 Wilshire. "If you only have 40 minutes for lunch, you can go to the bank and grab a bite.

"You can do high-end business lunches or a quick bite, all within walking distance. Most of the weekday lunchtime crowd is office workers."

Operators of the 90 eateries Downtown say local workers account for the lion's share of their business before the evening crowds hit town.

"It is important for us," said Roberto Fumagali, manager of Locanda del Lago on the Promenade. Fumagali estimates that 50 percent of the daytime business comes from local workers.

"If you have only 45 minutes, it's good to come down and grab a bite," Fumagali said. "A lot of people coming have a business lunch. We have a regular crowd."

So does Monsoon just down the block, where the restaurant¹s owners estimate that 95 percent of their daytime customers are Downtown workers.

"Our clientele is pretty much regular," said Nile Park, COO of Global
Dining, which owns the large Asian restaurant on the Promenade. "We get some shoppers, but that's pretty small. We rely on local clientele. It's a huge chunk of our business."

While Downtown has its lures, it also has some drawbacks. A parking crunch can add hundreds of dollars to monthly expenses, and the traffic and nighttime noise on the Promenade makes working after hours difficult.

"It's hard to get parking spaces, and there¹s no private parking," said
Justin Carroll, a partner in the design firm Hamagami Carroll & Associates, which leases 8,500 square feet in an old brick building with hardwood floors on the Promenade.

"It's also hard to deal with the crowds. My office is right over the Promenade," said Carroll, whose company has grown from seven to 45 employees since it opened Downtown 11 years ago.

On weekend nights "you have all different songs all at once" coming from street performers on the Promenade. "It gets to be a bit much."

But there are advantages, Carroll said. When the company, which "does a lot of packaging design," needs to "do competitive analysis," the workers can stroll down the block to one of the dozens of nearby retail stores to conduct their research.

"It's nice to have all the conveniences around," Carroll said. "It's an
exciting destination. People like it. It's cool to come to a meeting here."

Nabil Mechi, an editor at Murex Films, Inc. -­ which edits features, music videos and commercials ­- said his company has similar mixed feeling about being Downtown.

"The parking costs more money. There's a lot of traffic and
noise," Mechi said.

Murex has expanded from one to four rooms since it started at 127 Broadway five years ago, Mechi said. With a growing client list and each monthly parking space fetching $100, staying Downtown has become an expensive proposition.