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Downtown LA’s economy was looking better, but these challenges remain
Downtown L.A., home to historic structures like the Alexandria Hotel building, is an economic engine of the city.
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Julie Leopo
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LAist
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Downtown LA’s economy was looking better, but challenges remain
Increases in residents and entertainment options helped the area, but homelessness and immigration raids area affecting business downtown.
Downtown L.A.’s up-and-down economic outlook in the past 20 years appeared to be up recently. New hotels have opened, along with some new entertainment venues, such as the Bellwether. New residential units also added to downtown L.A.’s vibrancy and helped businesses.
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What does the future of Downtown LA business look like?
That’s good for the city as a whole, because downtown contributes a large portion of the city’s tax base.
“When you look at just three categories of downtown contributions to the tax base for the entire city’s unrestricted revenue: hotel tax, parking tax, [and] business tax, downtown contributes about 30% of those tax categories,” said Nella McOsker, president of L.A.’s Central City Association.
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So it’s important, downtown business leaders and others say, for L.A. to come up with strategies to keep the area economically healthy. McOsker and others who appeared on LAist’s daily new program, AirTalk with Larry Mantle, recently gave some updates.
Hotel tax, parking tax, [and] business tax, downtown contributes about 30% of those tax categories.
— Nella McOsker, president of L.A.’s Central City Association
Challenges remain
For most of its history, downtown L.A. has been an economic center that employed many people. McOsker said that before COVID lockdowns sent office workers home, nearly 50,000 public employees worked in downtown L.A.
“Those types of individuals sustained business' ability to stay open for lunch and have the higher foot traffic that we see Monday through Friday, 9 to 5,” she said. But many haven’t returned full-time.
Office workers haven't returned to downtown at pre-COVID levels, one expert says.
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Samanta Helou Hernandez
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Two recent examples of hard times downtown: the announcement that Cole’s, at Sixth and Main streets, would soon stop slinging French dips and drinks; and the impending closure of the nearly century-old Mayan theater, with its eclectic architecture and legendary nightlife.
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Down south, a group of bagel makers is quietly generating excitement in the bagel-verse. -
The spending plan would gut prevention, outreach and supportive services to maintain temporary shelter beds and absorb rate increases previously covered by other funding sources. -
Earlier mergers, like Disney's 2019 acquisition of Fox, cut the number of films studios released theatrically — a troubling trend for theater owners already coping with consolidation and streaming.
Meanwhile, recent protests, unrest, curfews and fears about federal agents have been among the factors leading some Angelenos to avoid unnecessary trips downtown.
Cole's announced in early July that its final day serving French dips, pickled eggs and strong drinks would be Aug. 3.
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Courtesy Pouring With Heart
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“That can have a cascading effect to a number of businesses that are already vulnerable,” economist Kevin Klowden said.
McOsker highlighted Mayor Karen Bass’s efforts to clear downtown homeless encampments and help people find housing. But it’s unclear, McOsker added, whether these efforts are having a positive effect on downtown’s economy.
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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
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