Ballot Measure Would be a Giant Step for L.A.’s Mass Transit System

A week ago, the Metropolitan Transportation Authority (METRO) Board held a hearing on a proposed $120-billion plan to dramatically expand mass transit throughout the region. The Hollywood Chamber of Commerce was on hand to support the Crenshaw Northern Extension. We have pressed for this project for several years, and so were pleased that it was included in the list of projects to be funded. However, we were disappointed that it is not scheduled to begin construction until 2049.

A little background for those not familiar with this project. The Crenshaw line is a north-south light rail line that will connect to an LAX people mover. Its northern terminus is at the Expo Line below the 10 Freeway. The proposal would extend that line north through the Mid City area and West Hollywood before terminating at the Hollywood & Highland Metro Station. I think most people would agree that it makes sense to connect the airport to the region’s top tourist destination. Hopefully, we can get this project’s timeline moved forward.

The important thing at the moment, though, is to get this plan approved on November 8th by the voters. That is not necessarily an easy thing, because all of the improvements (as currently proposed) would be funded by an extension of the existing sales tax for 18 years and an additional half-cent sales tax for at least 40 years, boosting the county’s base sales tax rate to 9.5-percent. The measure must be supported by two-thirds of the electorate.

In the past, L.A. voters have been supportive of mass transit, passing Measure R in 2008, and more recently, falling just short of the needed votes for Measure J in 2012, gaining 66.1-percent in support but needing 66.7-percent.

The new initiative calls for highway improvements as well as a dozen mass transit projects that would double our existing system. Having a transit system that gets people to where they want to go is key to the economic future of this region. It is also key to having a livable city.

One of the criticisms we often hear from opponents of mass transit expenditures is that the system doesn’t take people where they want to go – despite the fact that METRO is currently building five lines, more than any other place in the country. This new measure will expand the system even further. The sooner we get started on this expansion, the sooner there will be a system that gets people to more destinations.

The METRO network is the key to dealing with growth issues in the region, and is the only solution that I have heard from any source that makes sense. As is currently happening in Hollywood, future development would be encouraged in close proximity to transit stations. Yes, that may require up-zoning in areas near the stations, but by focusing development there, it also allows the City to preserve existing single-family neighborhoods elsewhere. As the system is built-out, residents will be able to utilize mass transit to get around. It is true that people will still have cars and use them, but by orders of magnitude, we will see significant improvement as the system is expanded.

There are three general suggestions to handle growth that I have heard that do not make sense. Some people suggest that we merely concentrate all development in Downtown L.A., but that is not an answer for growth. This region is so vast and spread out that you cannot accommodate all development in the center city. Besides that, if you do not encourage development within sub regions, those communities will deteriorate. New development is critical to revitalizing our neighborhoods.

The proponents of the proposed Neighborhood Integrity “no growth” Initiative don’t want increased density near transit stations. For them, the solution is to merely build-out under the current zoning citywide. The problem with that is it would spread development all over the city whether near transit or not, resulting in more congestion everywhere. Plus, you cannot justify the high cost of building a mass transit system if you cannot concentrate potential riders near the stations.

And then there are those who say they don’t care where development goes so long as it isn’t built near their neighborhoods. That is again not a solution and an abrogation of our responsibility. Development must go somewhere if we are to have a healthy economy, and it is better to have a plan than no plan at all.

Which brings us back to the Metro proposal that will likely be placed before voters this fall. There are hundreds of successful transit examples worldwide that point the way for Los Angeles. We have reached the physical limits of growth in this region. The basin is filling in. If our children are to have a future here, we have to find a way to grow and improve mobility.

Voters need to seriously consider the benefits of this expansion of our transit system and determine if those benefits justify the increase in sales taxes. Personally, I believe that the expansion is warranted. This region is on the right track, and with the support of voters we will continue in the right direction.

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 24 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood

A New House Is Coming to Hollywood

Recently I attended a gala press announcement hosted by the Japanese Consulate and Consul General Harry H. Horinouchi. I was particularly interested to learn about a cutting-edge initiative that is going to be very beneficial to Hollywood, and which is bound to become a new attraction for both locals and tourists.

Known as Japan House, the program is a new public diplomacy initiative from Japan’s Ministry of Foreign Affairs to showcase the best of Japanese arts, culture, innovative technology, food, and more. The Ministry has selected three locations around the world to showcase the initiative – London, Sao Paulo and Los Angeles. Of particular interest to us is that Hollywood & Highland has been selected as the Los Angeles location.

The Los Angeles Japan House will bring the most authentic aspects of Japan to the world and will promote understanding and appreciation of Japan in the hopes of strengthening U.S.-Japanese relations. The concept is still being refined, but you can expect Japan House to open in the summer of 2017. You should also know that our own Beth Marlis, Chamber Chair of the Board, is on the advisory board to the Japanese consulate, working to make this a reality.

There are a few things that we already know about Japan House. It will consist of two separate locations at Hollywood & Highland. On the second floor, the facility will take up over 6,000-sq.ft., with a shop, café, multi-media room (and special presentations about Japanese culture), and a seminar room. On the fifth floor, there will be a Japanese restaurant featuring top Japanese chefs and an event space (in over 8,000-sq.ft.) which can accommodate 200 people.

This is exactly the type of attraction that Hollywood needs and can host better than any place else in Southern California. We already know that Hollywood is a magnet for people from the entire region. Enterprises such as the El Capitan Theatre, the Pantages Theatre, the Hollywood Bowl and Amoeba Records have proven that this is the place for entertainment. We are the top tourist destination in Los Angeles County as well – and with the pending opening of Universal Studio’s Wizarding World of Harry Potter – we expect that our desirability will continue to grow.

I believe that unique attractions such as Japan House have their greatest chance at success here. And they help our “brand” as well. For Hollywood to succeed, we must be able to continue to add new attractions that will draw people. We cannot sit back while other areas of Southern California open popular new venues.

Tourism, along with Entertainment and Health Care, are our three major employment sectors in this community. Thousands of jobs rest on our ability to continue to improve the Hollywood brand. The Hollywood Walk of Fame is one way that we constantly reinforce the brand, but we cannot rely just on the tried-and-true attractions.

We welcome Japan House to Hollywood and look forward to having their involvement in this community. As we learn more details about their plans, I am sure that the level of excitement will grow even more!

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 24 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood

Closure of Cashmere Sends Proper Message

Two weeks ago, the Los Angeles City Council took action affirming the Department of City Planning’s decision to revoke a Conditional Use Permit (CUP) for the Cashmere nightclub in Hollywood for multiple land use violations. The Hollywood Chamber of Commerce applauds the action by the Council and the efforts of Councilmember Mitch O’Farrell.

Let me explain why the Chamber supports this action.

When an applicant seeks a CUP to open a club, the City establishes rules under which that club must operate. Those rules are set to protect the public – those who would visit the club as well as nearby residents and businesses. The types of rules that are set may include hours of operation, age restrictions, alcohol and food sales, capacity, and security requirements, among other things.

Over the years, there has been lax enforcement of CUPs. The Hollywood Chamber has been concerned for years about this and has urged proper enforcement. We were encouraged when the Planning Department set up its Conditional Compliance Unit a couple of years ago. We believed it was a step in the right direction. But progress has seemed to be painstakingly slow.

In the particular case of Cashmere, it had been the focus of numerous investigations by the LAPD over an extended period of time. Last August, a 20-year old male DJ died while employed at the nightclub. In another incident in 2014, investigators say a female college student was sexually assaulted at the club. Such incidents and investigations should have sent a message to the operator that steps needed to be taken to address the issues.

However, adequate measures were not taken. If an operator does not think there will be adequate enforcement, it can encourage some to flaunt the rules, which may have been the case here. The fact that the City has stepped in and taken the serious step to revoke the CUP sends a very strong message to those who don’t want to follow the rules. Without a CUP, the business is unable to continue operating.

Hollywood’s nightclubs are an essential component of our revitalization program. In the 1990s when things looked bleak as far as redevelopment, the clubs brought hope to the community. Early pioneers such as The Garden of Eden, Beauty Bar, Sunset Room and Deep helped to bring patrons to Hollywood. The clubs liked the edginess of Hollywood. Their success brought additional venues and Hollywood established a reputation as a nighttime hotspot.

A lot has transpired since those days as we have seen the revitalization of Hollywood take hold. Today, we see new retail, mixed-use residential projects, office space and hotels under construction.

While the clubs are no longer the backbone of the revitalization effort, they are still important. We have some great venues, which help us to provide nighttime entertainment. Most operators are outstanding, doing their best to adhere to their CUPs.

When the City clamps down on those who continually break the rules, it helps to establish the parameters for operating in Hollywood and it supports those clubs that do follow the rules.

Councilmember O’Farrell and the City took the right action in the case of Cashmere. While we hate to see any business close, we believe the message that was sent is good for Hollywood, good for our residents and visitors, and good for business.

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 24 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood

Columbia Square Shows How Development Helps the Community

With all of the recent attacks on developers by NIMBYs (Not-in-my-backyard) who don’t want to see growth, I thought I would provide a case study on the positive aspects of new development.

Columbia Square is a perfect example. This $450-million, 700,000-sq.ft., mixed-use project by Kilroy Realty will have an “outsized” positive impact on Hollywood.

One of the most historic buildings on Sunset Blvd., Columbia Square was the West Coast home of CBS for many years. Built in 1938, it originated such shows as Jack Benny’s Lucky Strike Program, the Adventures of Ozzie & Harriet, and The Swan Show starring George Burns and Gracie Allen. When CBS moved their studios out of Hollywood in 2007, its future was in question.

Now, thanks to the work and investment of Kilroy Realty Corp., Columbia Square is shining once more. The historic buildings have been restored and renovated as the L.A. hub for Neuehouse, a New York-based creative workspace collaborative. Acclaimed New York architect David Rockwell, who also designed the interior of the Dolby Theatre, designed the space. Architectural Digest gave the facility glowing reviews in January.

Writer Mayer Rus said of the space “If you’d like a window into the leading edge of creative work (and play) spaces in 2016, you need look no further than the recently completed NeueHouse Hollywood, the West Coast counterpart to the original Manhattan office hub for the so-called creative class. …the L.A. complex boasts a few attributes its Gotham forebear cannot claim: a building with an impeccable modernist pedigree; a site with a long and compelling history in the production of popular American culture; and the kinds of amenities one can enjoy only in a heavenly Mediterranean climate.”

Rus continued in the Architectural Digest article that “there are a number of restaurant and lounge experiences, including alfresco dining on the roof terraces – in facilitating discourse and comfort in the workplace.”

Not only has the historic building been preserved, which benefits the community enormously, but it is a place that visitors and residents can patronize and enjoy. Several restaurants have or are in the process of opening, including Rubies + Diamonds, Sugarfish, Sweetgreen and Paley.

Also preparing to move into Columbia Square is Viacom. CEO Philippe Dauman recently discussed the pending move into 180,000-sq.ft. of space with the L.A. Times. He noted that this will become the headquarters for their West Coast media networks and home base for about 700 employees from MTV, Comedy Central, VH1, BET, Spike, TV Land and Logo. It will provide them with new production stages, a lot of shooting space and a rooftop area for shoots with views of the Hollywood Sign. He noted that the Hollywood facility will be the largest mobile content studio in the industry.

Besides Viacom, Kilroy has announced that Fender Guitar has leased 40,000-sq.ft. and will be moving their headquarters from Scottdale, Arizona, to Hollywood. These will be new, high quality jobs for Southern California and Hollywood.

After the loss of dozens of entertainment firms over the past 20 years, the announcements by Viacom and Fender Guitar send a great message that Hollywood is back. However, of even greater import is bringing more than 700 quality jobs to the community. Hollywood has an opportunity to show that with smart growth, it is possible to grow a community with balanced jobs and housing. We are building both. We currently have 1,800 housing units under construction and more in the pipeline. In addition, there are several hundred thousand square feet of office space in development as well as several hotels.

This balance of different uses is what makes the revitalization of Hollywood so exciting. Locating jobs and housing in close proximity with nearby entertainment options and shopping are especially attractive to the Millennials who are locating here. When you consider the compact nature of Hollywood which makes it walkable, as well as its transit connectivity, one begins to see how growth can and should occur to make a community livable.

Due to this single project, we will see the preservation of a historic landmark, hundreds of construction jobs, hundreds more permanent jobs, new opportunities for dining as well as outstanding architecture. It is a win-win for the community. And it would not have been possible without the vision and investment of a developer.

Let’s keep this in mind when next you hear the negative attacks against development.

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 24 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood

Why it is thumbs down on Neighborhood Initiative

By now, you may have heard of a new anti-growth effort, the Neighborhood Integrity Initiative, being promoted by a group called the Coalition to Preserve L.A. The initiative would impose harsh restrictions on projects that require major changes to city planning rules – including putting a moratorium of up to 24 months on development projects that cannot be built without votes from elected officials to increase density. It would make it difficult to change the L.A. General Plan for individual real estate projects. It would place City employees directly in charge of preparation of environmental review of major projects. It would require the City Planning Commission to update the City’s community plans to be consistent with the City’s General Plan – even though these initiative supporters often fight any effort to update the community plans.

Let me say the obvious – that the goal of the initiative proponents is to stop any significant development within the City of Los Angeles. They claim that their initiative “will preserve the character of neighborhoods throughout the City of Los Angeles and improve the overall quality of life for city residents.” In actuality, it will worsen the quality of life for city residents – as there will be fewer jobs, higher housing prices, and more congestion.

In order to justify radical initiatives like this one, the proponents always paint City officials as inept and developers as villains out to make a buck and destroy the character of neighborhoods. They never want to discuss the reasons behind the City’s actions or where growth should occur. They have no solutions. They merely want to turn the clock back fifty years to the Los Angeles of another time.

The problem is that you cannot go back. Los Angeles is the least affordable place to lease or buy a home in the nation and has had the biggest housing price increase over the past 15 years in the U.S., primarily because it is so difficult to build anything here. One of the reasons why we have so much gridlock is because of people who over the years have refused to consider smart growth solutions that have been implemented in cities around the globe.

The Los Angeles metropolitan area has reached its physical limits. We cannot keep growing outward and forcing people to commute vast distances. We should not allow the interior areas of the City to deteriorate in order to “preserve” neighborhoods. We should not prevent affordable housing from being built in our city.

Smart growth advocates and planners will tell you that the successful planning model is to direct growth to occur along transit corridors. As our mass transit system is built-out, it will eventually enable people to travel where they need to go without using their vehicles. We are then able to preserve those single-family neighborhoods that are so valued by the initiative proponents. (This used to be referred to as the two-percent solution – to direct development onto two-percent of the land in order to preserve 98 percent of the land.)

Opponents argue that the mass transit system is not yet built-out and that we should wait until that occurs before we build around mass transit stations. However, if we wait, traffic will continue to worsen for everyone because housing and jobs will be built in places that only add to congestion.

They also argue that it is impossible to build new projects without creating more traffic. They are correct that there will be some additional traffic. However, by matters of degrees, the increase in traffic will be substantially less due to the nearby transit, and because jobs will also locate close to these stations. There are currently five mass transit lines under construction by Metro in greater Los Angeles – that is more than any place else in the nation. As these lines come into operation, it will be easier to see the wisdom of guiding development to transit corridors.

Hollywood is the poster child for those opposing development. They point to the 70 or so projects in the pipeline and argue that development will destroy the quality of life and the character of Hollywood. In my view, exactly the opposite is occurring. We are creating a great example of how urban development should happen – with walkable neighborhoods and jobs, shopping, and entertainment close by. Opponents seem to forget how bad things were in Hollywood 20 years ago. What has turned central Hollywood around is the new development. And this development is occurring in the center of Hollywood, close to mass transit. Parking lots are being replaced by exciting new development that make it an attractive neighborhood.

New development has made it possible to preserve historic structures. About 15 years ago, I was visited by representatives of the Los Angeles Conservancy who were concerned about the possible loss of two very historic properties – Columbia Square and the Palladium. Today, because of new development, both of those historic venues are saved and will again be show places.

I was recently told the story of a local resident whose children have moved to the East Coast with no intention of moving back to L.A. Why? Because they are tired of living in an urban area where it is impossible to get by unless you use a car and are stuck in traffic gridlock. Passage of this initiative will only perpetuate that ineffective and outdated model.

So I ask the proponents of this initiative to tell us exactly where they think development should occur. They have no answer to that question. And until they can answer it, then this initiative should be given no credence. If you like the current gridlock in L.A., it will never change with their plan. Their solution to go backwards is no solution at all. They would merely be preserving a model that we already know no longer works.

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 23 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood

Target Should Not Be A Target Any Longer

For more than a year now, construction has been at a standstill on Hollywood’s new Target store at the corner of Sunset and Western Avenue.  This would be Hollywood’s first “department” store since Sears closed their nearby store in 2008.  This store will allow Hollywood residents to shop locally without having to leave the community for many necessities, and it will provide 250 critically-needed jobs for the neighborhood – if it is allowed to open.

Construction ceased because a neighborhood group sued, complaining that the City should not have granted an exception to what is known as the Station Neighborhood Area Plan (SNAP) that governs construction in the area.  A judge agreed and said the City should have changed the zoning on the property rather than granting an exception.

The City has now come back with a recommendation to meet the judge’s order by proposing a new Subarea F specific plan amendment to apply to large scale highway-oriented commercial projects.  This is a reasonable addition to the SNAP ordinance that addresses how superstores can properly fit into the urban context.

However from the tone of the first hearing last month, some residents are still not satisfied.  A few even called for the half-built Target to be torn down and rebuilt to the 35-ft. height allowed by the SNAP ordinance, with underground parking.

It may help to provide a little more background.  The SNAP ordinance allows mixed-use projects (retail and residential together) to be built to a height of up to 75-feet.  If a project is not mixed-use, it is only allowed to build as high as 35-feet. The City had felt the benefits of the Target project to the community merited an exception to SNAP to allow for the project to be built to the higher height.

Why are these residents so insistent on the 35-ft. height?  Some said that their desire is to have more mixed-use projects to meet the need for housing in the area.  Others pointed out that the Target in West Hollywood has underground parking and so this one should as well.

Now, by my latest calculations, there are 320 housing units under construction at the moment within the SNAP area and another 762 units in the pipeline.  That is nearly 1,100 housing units.  Exactly, how many housing units do they want to see?  Is it their object that every project that is built within SNAP be a mixed-use project?

As far as the desire to have underground parking, I would again ask why the parking must be underground.  The design of this project is such that the parking would be shielded and there would be other retail on the ground floor.  It is not going to be unsightly.  What is unsightly is this half-finished building.

Within the last month, two new mixed-use projects have been announced across the street on two sides of the Target.  Each of these will be six or seven stories and up to the 75-foot height limit.  So what would we be achieving by forcing the Target to be reduced to 35-feet?  Certainly not any view protection.  There is no reasonable rationale as to why a strictly-retail center should be limited to 35-feet when its neighboring buildings are at 75-feet.

The proposed new Subarea F designation for retail makes sense and should be approved.by the Planning Commission when it meets this coming Thursday, November 12th, at 8:30 a.m. at City Hall.  If you agree with me, I would urge you to attend the hearing and let the commissioners know that Hollywood needs this project and its 250 jobs.  It is time to move forward with a project that will benefit this community.

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 23 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood

City Sets Priority to Create Jobs

Last week, the first meeting was held of the L.A. City Council’s new Ad Hoc On Comprehensive Job Creation Plan Committee. I attended and offered our Chamber’s strong support for their efforts. It is extremely critical to the future of our City that the City Council act to jumpstart the creation of jobs.

Committee Chair Paul Krekorian said “This is going to be a committee that takes action and makes recommendations to the Council. This is the biggest priority we have as a city. It will impact our ability to maintain a high quality of life for our residents.”

Dr. Christine Cooper from the L.A. Economic Development Corporation presented an overview of the opportunities and challenges that we face. She noted that L.A. unemployment has consistently been higher than at the county, state and national levels.

She wasn’t exaggerating. Since 1990, jobs in the U.S. have increased by 29 percent and by 28 percent in California. In Los Angeles, by contrast, the number of payroll jobs has increased only by 2 percent during the same period, according to the UCLA Anderson Forecast.

So the Ad Hoc Committee has a challenging assignment. We hope they will move quickly. Already, they have passed a motion directing various City agencies to report back with recommendations on a comprehensive job creation plan.

I’m sure there will be ample opportunity for input from the public as well. Let me offer a few suggestions. First, the City cannot create a jobs strategy without addressing the biggest drag on jobs creation in the City – the job-killing Los Angeles Gross Receipts tax. This is the highest business tax in the county by a factor of 9.5 times the average of the other 87 Los Angeles County cities.

The City has made small efforts to trim back the tax, but much more is needed. Over the next three years, the tax will be reduced by 5 percent a year. Assuming the City Council approves continuing reductions at that rate, it would take 20 years to do away with that tax – not enough to jumpstart jobs creation.

It is a challenge for the City Council to eliminate this tax, because it generates some 10 percent of City receipts. Facing an ongoing structural deficit, it takes a leap of faith to do away with it altogether and the City Council has been reluctant to do so. But maybe there are other alternatives that could be considered – such as reducing it initially to the countywide average for all cities so that we are not placed at a competitive disadvantage? Perhaps, the City could study alternative taxes that wouldn’t have the same negative impact on jobs creation? If the City wishes to be a competitive player in jobs creation, then it has to be a competitive player when it comes to the cost of doing business – and taxes are a big consideration for many firms.

The City should also look at where jobs are being created and see how they could facilitate that growth. Currently, Hollywood and Playa Vista are the biggest job creation engines within the City. With more than one-million sq.ft. of office construction underway, Hollywood has the potential to create thousands of new jobs. Already, Viacom, Netflix, Neuehouse, SIM Digital and others have announced they are coming to Hollywood. Other projects are in the pipeline and could be expedited if the City put the Hollywood Community Plan on the fast track to being reconsidered and implemented.

There are many other things that could be done, such as structuring an incentive package to encourage hotels to be built in all areas of the city – not just downtown by the Convention Center (which is the practical result of a plan that was presented earlier this year). The City could streamline the process that business owners and start-ups have to go through to get permits to expand or to open a business.

If you have ideas on what the City could do, send them my way and we will pass them on to the City. Better yet, plan to attend the ad hoc committee’s hearings! We will post them on our website as soon as we are aware that they have been scheduled. This may be a unique opportunity to move our city forward. Let’s all work to help the City craft a package that will really make a difference.

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 23 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood.

Leadership Needed to Resolve a Real Crisis

This past week, the Hollywood Chamber had meetings with two of our L.A. City Councilmembers – first with Curren Price who chairs the City’s Economic Development Committee, and then our board met with newly-elected 4th District Councilmember David Ryu.

In both meetings, the issue which quickly rose to the top was the rapidly escalating number of homeless encampments throughout Hollywood. I can tell you that people are alarmed at what is happening on public sidewalks, along the freeway and even on private property. Your Chamber has been active in lobbying for action, through meetings as well as letters to our public officials.

A recent count by Los Angeles Homeless Services Authority (LAHSA) found that the number of encampments on Hollywood streets has jumped by 54 percent to 184 since the last count in 2013. Countywide, LAHSA found that there was an 84 percent increase.

Who are these newly homeless in Hollywood? The Hollywood Entertainment District Security Patrols has surveyed many of the newly-arrived homeless and found that most of them are not from the Los Angeles area. A large number are from out of state and drawn to Hollywood. The majority are young.  Even if the City offered them housing, they would decline. They just want to hang out. For further information on this, read a column by Hollywood Property Owners Executive Director Kerry Morrison:http://onlyinhollywood.org/new-faces-contributing-to-increase-in-homelessness-in-hollywood/

Many of them are also on drugs and alcohol and there is an increasing incidence of mental illness and violent behavior. When I was walking to a meeting last week, one of them appealed to me for a contribution so he could do “alcohol research”. At least he was honest!

Hollywood has done a lot to assist our homeless population. There is a consensus here that we need to treat legitimately homeless individuals humanely. Since 2010, the Hollywood 4WRD Coalition has found housing for 440 of those on our streets. The goal has been to find permanent supportive housing for all of our local homeless. That goal has been blown out of the water with the current situation. I have been in Hollywood for 23 years, and have never seen it so bad.

What does the current crisis mean for Hollywood?  It means that residents do not feel safe in their own neighborhoods. It means that employees are afraid to walk to their cars after work. Developers of multi-million dollar office buildings are concerned that businesses won’t want to locate in Hollywood when they see the encampments outside their doors. This is a quality of life issue that impacts everyone.

Do we see these same problems in nearby cities such as West Hollywood, Burbank, Pasadena or Glendale? The answer is “no”. The usual explanation that we receive is that Los Angeles is so large that it is the prime target of lawsuits challenging homeless enforcement, and so the City’s hands are tied.

I recognize that is indeed a problem, but we are looking to our elected officials for leadership, not explanations. This week the Los Angeles City Council is poised to declare a “State of Emergency” and to earmark $100-million for solutions. This is a good first step.

However, beyond that, a plan of action is needed. First, the City needs to differentiate between those who are truly homeless and in need of humane treatment, and those who want to “hang out” and choose a lifestyle of living on the sidewalks and moving from city to city. Separate approaches need to be crafted for both populations. The County and State need to be brought into the dialogue. If legislation is needed in Sacramento to address the challenges imposed by the courts, then now is the time to be speaking to our legislators – when they are beginning to put together their legislative priorities for 2016. The City should be researching what other cities faced with similar issues have done.

The time for inaction is over. We don’t want to accept this increase in people living on our streets as a new normal. We will be watching how our elected officials lead on this issue!

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 23 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood.

Hollywood Is On Top With Office Development

Last month, the Los Angeles Business Journal published its “Real Estate Quarterly” report. One statistic caught my eye in particular – the amount of office space under construction in Hollywood.

They reported the total was 1,123,407-sq.ft. Now that is significant in and of itself, but when you look at the total amount of space under construction in L.A. County, it becomes even more impressive. The total space being built in the county at this time amounts to 1,951,171-sq.ft. So the amount of office space underway in Hollywood is 58 percent of everything currently being built in this county! Amazing!!

It wasn’t that many years ago that we were begging people to build a new office building in this community. There hadn’t been a spec office building built here in 30 years. Because of the City’s adaptive re-use ordinance that allowed old buildings to be converted to other uses, we had lost more than 200,000-sq.ft. of office space previously used for commercial purposes.

There was a real question as to whether Hollywood would remain a viable business district. Over the past 20 years, there had been an exodus of media firms moving to the Westside or San Fernando Valley. Every television station except KTLA abandoned Hollywood. At one time we had numerous radio stations broadcasting from Hollywood, and they all moved out, including KNX and KFWB. Many ancillary firms also moved.

As the revitalization gathered steam over the past decade, we have been hopeful that office development would come and that some of these entertainment firms would return. However, the challenge was always that it is very difficult to get an office project financed unless you have a minimum of 30 to 40 percent preleased. That seemed to be a very challenging proposition – to find a major company willing to sign a lease in Hollywood two years before they could occupy the space.

So we are very appreciative to three firms that have seen the potential in Hollywood – Hudson Pacific, JH Snyder, and Kilroy Realty. These firms were willing to take the gamble on Hollywood and to finance their own projects, betting that there would be tenants willing to come here. Some would assume this was a pretty big bet on an unproven market.

Yet that is what they have done, and we are pleased to be seeing that their investments in Hollywood are paying off. Already, leases have been signed at Columbia Square by Neuehouse for 93,000-sq.ft. and by Viacom for 180,000-sq.ft. Broad Green Pictures has signed a lease for 36,000-sq.ft. of space at the Hollywood 959 project. We understand there are several other significant deals very close to signing that may be announced shortly.

What does this mean for Hollywood? A great deal. It means there are going to be hundreds, if not thousands of new jobs created here that may provide employment for our local residents. All of these employees will be needing places to dine and shop and so our retailers and restaurants will benefit. The firms will need supplies and so vendors will benefit. Many of them will have clients visiting, and so our hotels will benefit. As stakeholders, these firms will want to be involved in the community, and so our many local causes and nonprofits will benefit.

We realize that it is unlikely Hollywood can maintain its place as the number one place for office construction in the county indefinitely … but for the moment we are “king of the hill.” So let’s celebrate, and thank these major developers for their investment in Hollywood’s future. I have said many times that it is impossible to revitalize a community without private sector investment. We are glad that there are firms willing to invest their money in Hollywood. It is a challenge to build a major development when it may take five or six years of working through the system before a shovel can be turned on a project. Fortunately, these companies have been willing to take on the challenge, and the results have been nothing short of spectacular!

Hooray for Hollywood, and hooray for the companies investing in Hollywood!

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 23 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood.

Millennials Setting the Pace for Hollywood’s Future

At our recent Hollywood Economic Development Summit, keynote speaker Victor Coleman of Hudson Pacific Properties, shared some fascinating statistics.

He said that 35 percent of Hollywood’s population (zip codes 90028 and 90038) is made up of Millennials (those in the 18 to 35 years old bracket). That is the largest concentration of Millennials of any community within Los Angeles County. It is greater than West L.A., which contains 29 percent Millennials and Santa Monica, which comes in with 24 percent Millennials.

When you look at a three-mile radius of Hollywood, the percentages remain strong, with 29 percent of the population composed of Millennials, greater than any other comparable zone except Downtown.

Why is this important to the future of Hollywood? Because this is a key reason why creative companies are interested in locating in Hollywood. We have the right demographic they are seeking. We want to attract firms that will employ these young people so that they do not need to travel elsewhere to work.

Hollywood is at the forefront of developing a new paradigm in Southern California – a place where people really can live and work in close proximity without the need for a car. We have got to stop pushing development to the periphery of the metropolitan area, requiring people to drive wherever they need to go and in turn clog our freeways and streets.

Over the past couple of years, new development in Hollywood has faced opposition from residents, primarily in the Hollywood Hills, who have objected to the growth in central Hollywood. As is usually the case in Southern California, those concerns are primarily focused on traffic and congestion. People just don’t believe that it is possible to change commuters’ habits.

With the Millennials, we finally have a chance to change that mindset. Studies have shown that they are urban centric. They like to walk, bike and take public transit. They are fascinated with Uber or Lyft and other alternatives to having their own vehicles. And they crave 24/7 walkable, mixed-use neighborhoods with a cool, hip factor.

Let me share with you a few statistics that bear this out. One study by Atlantic Cities revealed that up to 86 percent of Millennials said it was important for their city to offer opportunities to live and work without relying on a car. Nearly half of those who owned a car said they would consider giving it up if they could count on public transportation options.

A study by U.S. PIRG showed that Millennials drove on average 23 percent fewer miles in 2009 than they did in 2001 – a greater decline in driving than any other age group. During the same time period, Millennials who lived in households with annual incomes of over $70,000 increased their use of public transit by 100 percent, biking by 122 percent and walking by 37 percent.

These statistics bear out why central Hollywood is so attractive to Millennials. It is a very compact community. You really can walk almost everywhere you need to. There are plenty of entertainment options – and more are coming. As the area fills in with more desirable retail stores, it is easy to see this area becoming one of the most walkable communities within Southern California. We are on the Redline Subway route, the backbone of the Metro transit system. As more lines are added, it will become even easier for residents of Hollywood to get where they want to without a vehicle.

So Hollywood is a prototype of what we need to encourage in Southern California. I would invite the skeptics who believe that this can’t work here to watch what is happening in Hollywood. We must accommodate growth within the Metro area, but we must do it with more forethought. This is the smart way to grow.

Obviously, there are other steps that can also be taken to improve traffic circulation – such as seeing that mitigation funds from new projects are invested wisely in street improvements and taking advantage of programs such as the Mayor’s Great Streets initiative. However, our new millennial generation presents a unique opportunity for Hollywood.

As a business community, we need to foster and welcome these young professionals to Hollywood. The Chamber has already created our Hollywood Young Professionals and Entrepreneurs program (HYPE). It is amazing to see the energy within this group.

I am sure that there is a lot more that we can do. We should all be having conversations with these new Hollywood residents and ask what their needs are and what would make Hollywood a better neighborhood for them. I suspect making it cleaner and safer would be at the top of their list. We have a lot of work to do, but having this key demographic in our community gives us an amazing opportunity to continue the revitalization of Hollywood.

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Leron Gubler has been serving as the President and CEO of the Hollywood Chamber of Commerce for the past 23 years. His tenure since 1992 continues to oversee the great comeback story of Hollywood.