LA FASHION DISTRICT BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT >

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Bruce Hill
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1 LA FASHION DISTRICT BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT > >

FROM THE CHAIR > One of the great things about the LA Fashion District is its capacity for remaking itself over and over again, and was no exception.

our business community. Our mission remains the same - to provide a clean, safe and friendly place to work, shop and do business.

The results have been amazing. The LA Fashion District is growing in new directions.

and international visitors every day. Weekend pedestrian counts show a 23% increase over counts conducted in 2000 and website hits are surpassing the one million mark every month.

Dynamic changes in our community are also challenging the BID to change the way we do business.

Improved Safe Team standards and training Additional automated equipment to improve sidewalk cleaning Expanded advocacy efforts that are laying a foundation for infrastructure improvements and

Directors A highly trained and dedicated staff and Board of Directors with a focus towards continued improvements in keeping the District as the top BID in the nation The future of the LA

2 FROM THE CHAIR > One of the great things about the LA Fashion District is its capacity for remaking itself over and over again, and was no exception. With the LA Fashion District Business Improvement District (BID) renewed for another five years, BID assessments will continue to ensure a constant level of public space management services for our business community. Our mission remains the same - to provide a clean, safe and friendly place to work, shop and do business. With these basic service goals, the BID has helped pave the way for property owners to feel confident about renovating, expanding and exploring new ways to use their property. The results have been amazing. The LA Fashion District is growing in new directions. The 90-block district is now the creative center of the international apparel industry famous for the California look, and an "on-the-map" tourist destination that attracts thousands of local and international visitors every day. Weekend pedestrian counts show a 23% increase over counts conducted in 2000 and website hits are surpassing the one million mark every month. also saw the opening of the first lofts, in adaptive reuse building conversions, that are creating a brand new residential community. Dynamic changes in our community are also challenging the BID to change the way we do business. With a focus on the needs of the community, the Board of Directors refined clean, safe, image and communications and advocacy programs to better serve property owners, merchants, employees, residents and visitors. The LA Fashion District BID is better than ever because of: Enhanced partnerships with LAPD, LADOT, County Health and the City of Los Angeles Advanced technology to help reduce nuisance crime Improved Safe Team standards and training Additional automated equipment to improve sidewalk cleaning Expanded advocacy efforts that are laying a foundation for infrastructure improvements and continued economic growth Newsletters and streetscape banners with a fresh fashion forward look Direct ballot elections by BID property owners who selected eight members to join the Board of Directors A highly trained and dedicated staff and Board of Directors with a focus towards continued improvements in keeping the District as the top BID in the nation The future of the LA Fashion District depends on the success of many factors working together to meet the needs of our changing community. With the support of LA Fashion District property owners, partnerships with the City of Los Angeles and BID neighbors, we will continue to fulfill our mission and set the stage for new directions. District Expands to 90 Blocks in > Coinciding with the fiveyear BID renewal in 2003, the LA Fashion District BID boundaries increased from 82 to 90 blocks, effective January 1,. The LA Fashion District Clean Team wasted no time improving the additional area covered by the BID. The following before and after photos of the area around Crocker Street show some of the improvements made within weeks of the expansion. before Sincerely, John Remeny, Chair LA Fashion District BID & after

IMAGE & COMMUNICATIONS > The LA Fashion District Image & Communications programs are developed to create a positive image and branded identity of the LA Fashion District based on the positive changes

2 million in free publicity, a nearly 112% increase in the amount of free advertising dollars garnered in 2003, a significant testimony to the BID s ability to tell the story of the LA Fashion

The bright and colorful collaterals are indicative of the excitement in the Fashion District.

Visitors to Pow-Wow, the largest travel industry event of the year, Cinema Under the Stars at Pershing Square, ULI Urban Marketplace and the Santee Court Grand Opening Gala picked up the new

[millions] 600 500 400 300 200 media impressions 192,800,000 100 2003 512,400,000 New Banners New banners, in the District's signature colors, were installed just in time for the start of the holiday

One Million a Month For the first time in LA Fashion District history, the District s website, www.fashiondistrict.

Wholesale and residential pages were also added to the website, with the wholesale page featuring a directory of all of the lines showing at the current market week.

[millions] 18 15 12 9 6 3 2003 website hits 8,500,000 16,000,000 Holiday Campaign The LA Fashion District had another successful holiday campaign in.

3 IMAGE & COMMUNICATIONS > The LA Fashion District Image & Communications programs are developed to create a positive image and branded identity of the LA Fashion District based on the positive changes that take place. Programs are designed to attract new investors and customers to the District, as well as encourage City investment and media attention. In, the BID was able to leverage over $7.2 million in free publicity, a nearly 112% increase in the amount of free advertising dollars garnered in 2003, a significant testimony to the BID s ability to tell the story of the LA Fashion District with a modest budget. A Fashion Forward Look The LA Fashion District map guide, newsletter, services directory and contact card got a makeover in. The bright and colorful collaterals are indicative of the excitement in the Fashion District. In, the BID distributed over 23,000 map guides at tradeshows, through the website and at various special events. Visitors to Pow-Wow, the largest travel industry event of the year, Cinema Under the Stars at Pershing Square, ULI Urban Marketplace and the Santee Court Grand Opening Gala picked up the new collaterals. [millions] media impressions 192,800, ,400,000 New Banners New banners, in the District's signature colors, were installed just in time for the start of the holiday shopping season. The highly graphic banners represent the diverse activity in this vibrant District and serve as an important branding function for visitors. One Million a Month For the first time in LA Fashion District history, the District s website, registered over one million website hits in the month of February and continued to climb the rest of the year. Wholesale and residential pages were also added to the website, with the wholesale page featuring a directory of all of the lines showing at the current market week. Visitors also utilized the website s searchable directory, which lists contact and location information for all of the ground-floor businesses in the District. [millions] website hits 8,500,000 16,000,000 Holiday Campaign The LA Fashion District had another successful holiday campaign in. Print ads were seen in Daily News, LA Downtown News, La Opinión and LA Weekly. Radio spots were heard on KCRW, KNX and on Spanish language stations such as K-BUENA through Pulse traffic and weather sponsorships. In addition to holiday advertising, the Fashion District hosted a shopping tour for 14 area foster teens. The teens were treated to a day of shopping and lunch in the District. Numerous businesses contributed to the tour by providing items for tour goody bags and offering special in-store discounts. ADVOCACY > Bold new projects are merging the landscape of the LA Fashion District into the downtown Los Angeles revival. Every property conversion and renovation takes the BID another step closer to creating a clustered, mixed-use community where people can live, learn, work, shop and do business. Advocating change and improvement on local and regional levels are more important than ever before. The BID Board of Directors forged new paths by supporting these four highlighted initiatives that will affect the way we do business and ensure the quality of life in the District in the years ahead.

Annual budgets are carefully developed by BID committees and approved by the Board of Directors. First CPI Increase Since 2000 In the BID Board of Directors voted to increase the 2005 budget by 2.

4 FINANCE > The LA Fashion District BID was renewed by District property owners in 2003 with an annual budget of $3.3 million. The assessment funds go directly to the BID to pay for public space management programs, developed by property owners and the BID Board of Directors, that benefit the 90-block district. Annual budgets are carefully developed by BID committees and approved by the Board of Directors. First CPI Increase Since 2000 In the BID Board of Directors voted to increase the 2005 budget by 2.6% to reflect the annual change in the Los Angeles Consumer Price Index (CPI) for all urban consumers. The property owner approved District Management Plan allows for CPI increases up to 3%. The additional funds will be used to cover the increasing cost of security, maintenance, insurance and fuel expenses. Image & Communications 7.3% South Santee Alley 6.7% Administration 6.2% Other 4.1% Clean Team 40.4% the Money Was Spent Safe Team 35.3% How DOWNTOWN PROPERTY OWNERS ASSOCIATION Summary of Financial Information As of December 31, 2003 ASSETS Total Current Assets $ 1,540,630 1,412,214 Total Property & Equipment 164, ,717 Total Assets 1,705,436 1,522,931 LIABILITIES & NET ASSETS Current Liabilities $ 398, ,332 Net Assets Unrestricted 1,306,635 1,258,599 Total Liabilities & Net Assets 1,705,436 1,522,931 REVENUE Assessment Revenue $ 2,884,942 2,750,083 Assessment Revenue - South Santee Alley 205, ,184 Investment Income 22,330 29,489 Other Revenue Total Revenue 3,112,784 2,916,056 EXPENSES Maintenance $ 1,239,391 1,181,234 Security 1,081, ,728 Image & Communications 224, ,365 Administration 188, ,047 Uncollected Assessment Allowance 46,769 93,567 City Collection Costs 21,990 12,674 Santee/Maple Alley 205, ,184 Depreciation 57,261 43,377 BID Renewal 220,081 Total Expenses 3,064,748 3,108,257 NET ASSETS Increase (Decrease) $ 48,036 (192,201) A complete set of audited financial statements is available on request. & SPECIAL PROJECTS Big Box Ordinance The entrepreneurial environment in the LA Fashion District has transformed this former manufacturing center into the hub of the western apparel industry and the economic powerhouse that it is today. The BID Board of Directors voted to sustain this entrepreneurial spirit by supporting an ordinance that regulates superstores in the area. The Big Box Ordinance got final approval from the City Council this year, effectively banning superstores that are over 100,000 square feet and intend to dedicate 10% of total gross floor area to non-taxable goods. Pedestrian Counts Weekend pedestrian counts show a 23% increase over counts conducted in During the four week project, pedestrian traffic was counted at 30 locations. Over 258,000 people walked through Santee Alley, strolled down Maple Avenue and passed by Santee Court in an eight-hour period. The results clearly indicate the LA Fashion District is the place to be. News Rack Ordinance Good news for many merchants in the LA Fashion District who have complained about too many news racks in front of their stores. The City Council voted to regulate the placement and color of news racks throughout the city. The ordinance will limit the number of racks to 16 for every 200 feet of sidewalk with no more than four at any one location. The ordinance that went into effect on January 1, 2005 will enhance the streetscape by reducing clutter and sidewalk obstruction on the District's narrow sidewalks. Business Tax Reform In another vote to sustain small business in the LA Fashion District, the Board of Directors endorsed Business Tax Reforms that exempt businesses with gross receipts below $100,000, reduce the number of tax categories from 64 to six, and provide additional tax relief of 3-5 % each year from 2006 to 2010 for all businesses.

Improved Training & Communication OPERATIONS > Over 75% of property owner BID assessment funds are allocated to the Clean and Safe programs by mandate of the Board of Directors and District property

The BID Safe Team program is designed to supplement - not replace - individual building security.

The LA Fashion District BID maintenance programs improve the public environment by removing graffiti, sidewalk and alley cleaning, street trash removal, tree trimming, weeding and poster removal.

First impressions mean business and it is important to provide a clean environment for visitors from all over the country and the world, as well as downtown employees and residents.

Advanced customer service training and professionalism are the foundation of new training policies.

The BID works closely with social service organizations to provide enhanced outreach efforts to homeless populations.

5 Improved Training & Communication OPERATIONS > Over 75% of property owner BID assessment funds are allocated to the Clean and Safe programs by mandate of the Board of Directors and District property owners. Safe Team Officers patrol the 90-block district 24-hours a day, seven days a week and work closely with LAPD in overall crime prevention efforts and reduction of neighborhood street disorder. The BID Safe Team program is designed to supplement - not replace - individual building security. They provide highly visible neighborhood safety in their yellow and black uniforms, and respond to calls for general assistance from owners, merchants and visitors. The LA Fashion District BID maintenance programs improve the public environment by removing graffiti, sidewalk and alley cleaning, street trash removal, tree trimming, weeding and poster removal. The District is a highly visible public destination in downtown Los Angeles with pedestrian traffic counts that rival other large cities throughout the country. First impressions mean business and it is important to provide a clean environment for visitors from all over the country and the world, as well as downtown employees and residents. Safe Team officers attend intensive training courses offered by the Regional Occupational Program. LAPD provides input for identifying key personnel to supervisory positions. Advanced customer service training and professionalism are the foundation of new training policies. The LA Fashion District BID Safe Team works closely with LAPD to provide the District with the best possible coverage. The BID works closely with social service organizations to provide enhanced outreach efforts to homeless populations. Crime Down 20% In the LA Fashion District and LAPD strengthened their relationship with improved communication and better crime solving strategies. Thanks to Central Division s Captain James A. Rubert, Captain Blake Chow and Senior Lead Officer Julie Nony, the Fashion District s crime rates have declined by 20% in. Surveys & Task Force Efforts An intensive 3-month survey conducted by the BID revealed patterns of activity, locations and products being sold by illegal vendors throughout the District. With this important information the BID assisted LAPD and the County Health Department to enforce regulations and seize illegal DVDs, CDs, animals and counterfeit goods from unlicensed vendors. Random Task Force efforts continue to make a positive difference in the numbers of illegal goods being sold on sidewalks and streets of the Fashion District. $37 million in counterfeit goods were seized in LAPD Central Division in, most of which came from the Fashion District. New Technology The LA Fashion District was selected by LAPD Central Division as the location for their first Surveillance Camera Pilot Project. The digital camera output from two cameras in the District is monitored by police officers at Central Division 24-hours a day. By using the cameras, LAPD is virtually expanding the number of officers on the streets. As crimes are observed, officers are dispatched directly to the scene for the arrest. Tons of Trash With dump fees going up, the cost to keep streets clean continues to negatively impact the BID budget. One of the BID s major outreach initiatives during was to remind property owners and tenants that it is their legal responsibility to install dumpsters and arrange for regular trash collection for their businesses. In the BID saw a 9% increase in trash tonnage to 7.5 tons a day. New Automated Sidewalk Cleaning Equipment A third sidewalk scrubber, the Tenant 8210, was acquired in. The equipment is housed at key locations in the north, central, and south ends of the District, which reduces travel stress on the equipment and provides improved service to all zones. [millions - sq. ft.] automated sidewalk cleaning ,000, ,000,000 Graffiti Removal Zero Tolerance Policy In cities across the world, graffiti is seen as a sign of a neglected neighborhood and encourages crime. The BID removed over 8,000 graffiti tags from District walls, signs and utility boxes in - a 44% increase over tags removed in The BID maintains a zero tolerance policy for graffiti with tags removed within 24-hours. [tags] graffiti removal 9,000 7,500 6,000 5,698 4,500 3,000 1, ,219 Outreach A "Clean Sidewalks" outreach program initiated by the BID encouraged property owners and their tenants to remove merchandising displays from sidewalks in order to allow LAPD to quickly identify legal and illegal vendors.

DISTRICT IMPROVEMENT AWARDS > New construction projects, innovative economic developments and dedicated professionals have all played an invaluable role in making the LA Fashion District downtown's

BOARD OF DIRECTORS John Remeny, CHAIR Remy Leather Fashions Steve Hirsh, VICE CHAIR Cooper Design Space Laura Aflalo, TREASURER A & H Management Ethan Eller, SECRETARY The New Mart Raquel Bensimon

Kluger L & L Properties Paul Lentz California Market Center Steve Needleman ANJAC Fashion Buildings George Peykar Peykar Wall Street Real Estate Investments Max Salter Beno s > 726 E.

Manager Veronica Nunez, Administrative Assistant Jackie Sanchez, Operations Coordinator Katherine Schmidt, Marketing Coordinator Randall Tampa, Operations Director > Dena Sohn, Deputy City Attorney

6 DISTRICT IMPROVEMENT AWARDS > New construction projects, innovative economic developments and dedicated professionals have all played an invaluable role in making the LA Fashion District downtown's most vibrant neighborhood, not only to do business, shop, and most recently, to live. Award recipients shown on the cover. BOARD OF DIRECTORS John Remeny, CHAIR Remy Leather Fashions Steve Hirsh, VICE CHAIR Cooper Design Space Laura Aflalo, TREASURER A & H Management Ethan Eller, SECRETARY The New Mart Raquel Bensimon Dearden s Michael Delijani Delson Investments Alan Epstein MJW Investments Peter Fleming The City Market of Los Angeles Barry Gold DAK Enterprises Elisa Mermelstein Keller Mermel & Mermel Lance Kluger L & L Properties Paul Lentz California Market Center Steve Needleman ANJAC Fashion Buildings George Peykar Peykar Wall Street Real Estate Investments Max Salter Beno s > 726 E. 12th Street > 734 E. 12th Street > 738 E. 12th Street > 742 E. 12th Street > 748 E. 12th Street > 762 E. 12th Street > 817 S. San Pedro Street > 1013 Crocker Street > 1200 S. San Pedro Street > 1521 S. Los Angeles Street > Accessory Collection > American Garment Center > Bella Flowers > California Market Center STAFF Kent Smith, Executive Director Jose Gonzalez, Finance Manager Lynn Myers, General Manager Veronica Nunez, Administrative Assistant Jackie Sanchez, Operations Coordinator Katherine Schmidt, Marketing Coordinator Randall Tampa, Operations Director > Dena Sohn, Deputy City Attorney Neighborhood Prosecutor Program > Downtown Fashion Collection > Julie Nony, Senior Lead Officer LAPD Central Division > LA Flower Mall > Los Angeles Fire Department Skid Row Fire House > Nobell > Santee Court, Phase I > Street Furniture Program > Streetlights on Main Street > The New Mart COMMITTEES FINANCE Raquel Bensimon, CHAIR Laura Aflalo Barry Gold Max Salter John van den Akker OPERATIONS Laura Aflalo, CHAIR Dave Braverman Ethan Eller Peter Fleming Lance Kluger Steve Needleman John van den Akker IMAGE & COMMUNICATIONS Ethan Eller, CO-CHAIR George Peykar, CO-CHAIR Michael Delijani Lorelyn Eaves Sharen Bekhrad-Emrani Steve Hirsh Larry Hudson Laurie Sale Sam Sale John van den Akker PERSONNEL Elisa Mermelstein Keller, CHAIR Laura Aflalo Raquel Bensimon Barry Gold Lance Kluger Steve Needleman John Remeny Max Salter LEGISLATIVE Steve Hirsh, CHAIR Alan Epstein Paul Lentz 110 East 9th Street, Suite A-1175, Los Angeles, CA tel: fax: info@fashiondistrict.org w w w. f a s h i o n d i s t r i c t. o r g

Department of Code Compliance

Department of Code Compliance Code Compliance Operations AND 100-Day Plan Update Presented to the Quality of Life and Government Services Committee November 26, 2007 Purpose Overview/Background Typical