Sunset Strip Business Improvement District

SUNSET STRIP BUSINESS IMPROVEMENT DISTRICT

Annual Report 2013/14 Program of Work 2014/15

SUNSET STRIP BUSINESS IMPROVEMENT DISTRICT STRUCTURE AND METHOD OF ASSESSMENT

Overview The Sunset Strip Business Improvement District (BID) is an assessment district that aims to improve the business and neighboring residential environment on Sunset Boulevard by using private funding to add needed services not provided by the public sector. The Sunset Strip BID is a coalition of business owners willing to form a benefit assessment district, with the understanding that all funded services will be in addition to the public service level already provided. A nonprofit California Corporation run by the member businesses, the Sunset Strip Business Association, Inc. (SSBA), manages the Sunset Strip BID under contract with the City of West Hollywood.

The current Board of Directors includes:

Mikeal Maglieri, Rainbow Bar & Grill/Whisky A Go-Go (President) David Vialli, The Standard (Vice President & Treasurer) Craig Ley, Rock & Reilly’s (Vice President) Nic Adler, The Roxy Theatre Michael Bezerra, Cabo Cantina/Trocadero Kendra Cole, Skybar Anita Der Mohanessian, Panini Pizzeria Martin Dodsworth, Hornburg Lin Schatz, Andaz West Hollywood Artur Margarian, Tabacchi Nick Mathers, Eveleigh Nicolas Black, Mondrian

Brad Burlingame, Visit West Hollywood (Ex-Officio) Maribel Louie, City of West Hollywood (Ex-Officio) Mark Montgomery, Montgomery Management (Ex-Officio) Genevieve Morrill, West Hollywood Chamber of Commerce (Ex-Officio) Chris Bonbright, Avison Young (Ex-Officio) Todd Steadman, Executive Director

Location & Boundaries The Sunset Strip BID encompasses approximately 1.6 miles on Sunset Boulevard in West Hollywood. The district is bounded roughly by Doheny Road on the west to a half block west of Havenhurst Drive on the east. For a more detailed description of the boundaries, see Appendix A.

Services Based upon meetings with and feedback from businesses, City staff and area residents, four main service priorities remain the key focus of the Business Improvement District. These services provided under the Business Improvement District generally fall into one of four categories: • Public Safety • Maintenance

2 • Public Outreach, Policy Development, and Administration • Marketing The Sunset Strip

Assessment Structure

The Sunset Strip Business Improvement District is divided into 16 separate business classifications. These classifications are limited to the following businesses: nightclubs; bars; adult businesses; hotels; restaurants; other, which includes liquor stores/convenience stores with liquor; valet parking services; and retail stores. Each business classification receives an assessment level directly related to the level of service received from the District.

The following includes, but is not limited to, types of businesses on Sunset Boulevard that will not be assessed: motion picture distributors, business consultants, public relations firms, computer programmers, services allied to motion pictures, motion picture and video production, real estate agents, foreign trade and international firms, television broadcasting, dental laboratories, outdoor advertising services, manufacturing industries, non-classifiable establishments, legal counsel, legal services, music recording, insurance agents/brokers, entertainers, general medical and surgical services, physical fitness facilities, commercial photography, executive offices, miscellaneous publishing, museums, management and investing, nonprofit service establishments, radio broadcasting, adjustment & collection, accounting, engineering services, and travel agencies.

Assessment Methodology

During the formative months of the Business Improvement District, City staff and business owners worked diligently to develop an assessment methodology that was fair, balanced, and commensurate with benefits received. Since the benefits derived from the District are identical to the previous year, the same methodology will be used in 2014-2015.

Time and Manner of Collecting Assessments

As provided by state law, the Sunset Strip BID assessment levied shall be made at the time and in the manner set forth by the West Hollywood City Council in the ordinance establishing the District. The City of West Hollywood shall distribute funds collected to the Sunset Strip Business Association, Inc., pursuant to the authorization of this plan. Existing laws for enforcement and appeal of business taxes apply to the BID assessments.

3 The assessment rate for business classifications is illustrated below:

Table I Assessment Structure for Businesses

CLASSIFICATION ASSESSMENT

I. Nightclub/Bar or Adult 1. Occupancy 600 and above $ 35,000.00 2. Occupancy 250-599 $ 20,000.00 3. Occupancy 100-249 $ 15,000.00 4. Occupancy 0-99 $ 5,000.00

II. Hotel 5. Room Count 120 and over $ 4,000.00 6. Room Count 0-119 $ 2,500.00

III. Restaurant 7. ABC 47/48 & Occ. 450 & Over $ 25,000.00 8. ABC 47/48 & Occ. 275-449 $ 15,000.00 9. ABC 47/48 & Occ. 175-274 $ 10,000.00 10. ABC 47/48 & Occ. 100-174 $ 7,500.00 11. ABC 47/48 & Occ. 0-99 $ 5,000.00 12. W/O ABC 47/48 & $ 3,000.00 Occ. 50 & above 13. W/O ABC 47/48 & Occ. 0- 49 $ 1,000.00

IV. Other 14. Liquor/Convenience Store $ 5,000.00 15. On-Street Valet (per location) $ 2,500.00 16. Retail Stores $ 250.00

4 II. 2013/14 ACTIVITIES/ACCOMPLISHMENTS

Public Safety

Approximately 70% of the Association’s total assessment dollars are used for the increased public safety presence currently provided by Block-by-Block. They provide up to 9 uniformed, highly visible security personnel. In addition, Block-by-Block also provides a security manager, who serves as the Director of Security.

Under supervision of the Director of Security, Block-by-Block officers provide a presence on Sunset Boulevard seven nights per week. Working closely with the Los Angeles Sheriff’s Department West Hollywood Station and the City of West Hollywood, the Sunset BID Security Ambassadors aim to improve the quality of life for residents and member businesses. The purpose of the Security Ambassadors is to reduce actual crime and unwanted behavior as well as provide a positive perception of safety on and near The Strip. The Security Ambassadors act as an extra set of eyes and ears for the West Hollywood Sheriff’s Department. They also provide an additional role as representatives of The Strip offering information and directions to visitors of The Sunset Strip.

SECURITY AMBASSADOR PATROLS • Security Ambassadors were deployed to assigned zones to patrol the area on foot, bicycle and by automobile as a deterrent for unwanted activity and to interact with businesses, residents and visitors. Result • The Ambassadors conducted Public Relations (PR) checks at various businesses each day to make a personal contact, as well as gather and share safety related information. • Bicycle patrol Security Ambassadors provided a visible deterrent to unwanted activity. • Block-by-Block supplied the Sunset Security Ambassadors with an automobile, complete with SSBA logo, to further identify the vehicle.

GUARD TOUR ROUNDS • Guard tour rounds are used to provide accurate reports as to the Ambassadors presence throughout the District. Result • Security Ambassadors complete documented rounds using the ‘PIPE’ (timekeeping system) guard tour rounds throughout the district at times specified in the deployment plan. • Forty-six receivers were strategically placed on and near Sunset to ensure frequent coverage throughout the District.

COOPERATED WITH WEST HOLLYWOOD SHERIFF’S DEPT • Maintained a good working relationship with local law enforcement. Result • SSBA Executive Director and Director of Security were in regular contact with law enforcement to discuss matters concerning The Sunset Strip.

5 • Lt. David Smith of the WEHO Sheriff’s Department and his associates routinely carried a Sunset BID Security Ambassador radio to facilitate communication between the BID security and the Sheriff.

CROWD CONTROL • Provided crowd control assistance on Sunset Boulevard. Result • SSBA Security Ambassador team assisted member businesses and their security personnel with crowd control. Specifically, bars and clubs on The Strip and retail shops hosting special events. • The Team also provided assistance to the Sheriff working Sunset Boulevard.

REDUCED NOISE AND LOITERING • Team members deterred visitors from entering residential areas. Result • Sunset BID Security Team members routinely instructed visitors to keep their voices down, turn down radios, and to move along to their destination when loitering.

COMMUNICATED WITH BUSINESSES AND RESIDENTS • Security Team members interacted with businesses and residents on a nightly basis. Result • Businesses and residents utilized a direct cellular telephone number to call when assistance was immediately needed. The team’s shift supervisor carries the cell phone at all times and can immediately radio Sheriff units to respond.

GENERAL AMBASSADORIAL SERVICES • Security members are the ambassadors to The Sunset Strip. Result • Security Ambassadors are trained to provide information regarding hotels, restaurants, attractions, events, parking locations and costs, and other information deemed appropriate by the Sunset Strip Business Association. • They provided information, directions and answers to the questions from the many visitors to The Strip. • Security Ambassadors also assisted with security and directions for the Sunset Strip Market as well as street closures and information related to the L.A. Marathon and Sunset Strip Music Festival.

SUNSET STRIP SECURITY SUMMIT • Hosted a Security Summit on January 16 for the membership to discuss matters unique to the nightlife industry on The Sunset Strip. Result • The Summit provided information and presentations from Lt. David Smith of the Los Angeles County Sheriff's Department, SSBA Director of Security Kris Zagyva and Jeffrey Aubel of the City of West Hollywood Code Compliance. • Topics discussed included working together to keep The Strip safe, who and when to call, and how to work with the homeless. The Summit also included a question and answer session. • Sixteen representatives from Sunset Strip businesses were in attendance (Brett Latteri, The Den; Gary Anagjian, The Den; Shawn Ilardi, The Den; Amanda Laflen, Mel’s Drive-In; Mark Morehurt, Sunset Marquis; Amir Gholi, Best Western Sunset

6 Plaza; Eiji Mori, Katana; Adam Gordihiw, Katana; Chad England, Lore Group (Pearl’s & Rock & Reilly’s); Omar Hautoum, Andaz West Hollywood; Mark Montgomery, Montgomery Management; Tony Rojes, House of Blues; Alex Pegero, House of Blues; Tony LePenna, Bootsy Bellows; Kelly Hamadeh, Pi on Sunset; and Warren Temper, Bootsy Bellows.

SECURITY AMBASSADOR INFORMATION CARD • Developed a Security Ambassador information card that specifically articulates the Ambassador services and the resources that are available to the individual business. Result • Card was distributed by Security Ambassadors to the member businesses on The Sunset Strip.

SECURITY/AMBASSADOR RESULTS • Security Ambassadors are responsible for completing daily activity reports and submitting them as specified. The daily statistics are compiled weekly and provided to the Sunset Strip Business Association by the Security Director. Result • The following are the results for July 2013 through March 2014. o Visitor Assistance – 41,206 o Business Contacts – 17,502 o Homeless Assistance – 82 o Motorist Assistance – 62 o Bike Miles Ridden – 2,296 o Vehicle Miles – 2,497

Maintenance

The SSBA contracted with Social Vocational Services (SVS) to supply additional cleaning and maintenance services to the District. SVS services Sunset Boulevard from the District’s west to east boundaries and the residential neighborhoods immediately adjacent to the Sunset Strip.

INCREASED STREET MAINTENANCE PRESENCE • Social Vocational Services supplied the District’s street maintenance needs. Result • SVS employees provided street cleaning along the entire length of the District on Sunset Boulevard and into the adjoining neighborhoods five days per week - Wednesday through Sunday. • SSBA staff was in contact with SVS supervisors and street teams to review progress, identify trouble spots, and direct maintenance needs. • Of the trash collected 15 tons was recycled. • Trash bags collected by SVS: o Third Quarter 2013 – 761 o Fourth Quarter 2013 – 761 o First Quarter 2014 – 781

Public Outreach, Policy Development, Administration

SSBA staff continued to develop relationships with member businesses, City staff, local law enforcement, and area residents in order to form general and specific suggestions for implementing policies that would improve the District. These included open forums, one-on-one meetings, emails, and telephone calls. Sunset BID staff continued to work with these groups toward specific policies that would improve traffic, parking, and noise abatement.

COORDINATE PUBLIC OUTREACH ACTIVITIES • Success of the BID is dependent on community input. Result • SSBA Executive Director met in person and by telephone with BID members, City officials, area residents and key stakeholders who provided staff with information and feedback to help the BID maximize its effectiveness. • Community members continued to show interest in the BID and its workings by attending Board meetings and speaking during public comment. • Community members were encouraged to provide their contact information so they can be notified monthly via email regarding SSBA Board of Directors meetings as well as stay informed via a monthly SSBA e-newsletter. • SSBA remains committed to continuing to provide residents with an “open door” policy where members of the community can address their concerns and know their ideas are being heard, and they are assisting in the continued success of the District. • Staff visited with the following businesses to gather feedback on the Sunset Strip and the SSBA Program of Work - A Divine H20, Aahs, AP Parking, Ambrosia, American Advance Automobile, Andaz West Hollywood, Angela's Coffee, Auto Plex Parking, Bar 1200, Best Western Sunset Plaza, BOA, Book Soup, Bootsy Bellows, Cabo Cantina, Cafe Med, Carney's, Chin Lin, Clafoutis, Coffee Bean & Tea Leaf, The Comedy Store, Cravings, Eveleigh, Fiore Home Accessories, Gaby's Express, Gil Turner's Fine Wine & Spirits, Gorge, Grafton Hotel, Haute Couture, Hornburg, Hippocampus, House of Blues, Hugo Boss, Hustler Hollywood, Joe's Pizza, Katana, Lenceria Boutique, London West Hollywood, Mark Mahoney's Shamrock Tattoo, Mel's Drive-In, Mondrian Hotel, Nonna of Italy, Osteria Drago, Panini Pizzeria, Pearl's Liquor Bar, Peet's Coffee and Tea, Pi on Sunset, Pink Taco, Pizza & Wine Bar, Radio Shack, Rainbow Bar & Grill, RivaBella, Rock & Rielly's, The Roxy, Saddle Ranch, Soho House, Soundcheck Hollywood, The Standard, State Social House, Subway, Sun Bee Liquor, Sunset Deli, Sunset Marquis, Sunset Oil, Sunset Tower Hotel, Sunset Trocadero, Tabacchi, Tags, Talesai, The Church Key, The Back Room, Terner's Liquor, The Den, United Valet Parking, Viper Room, Whisky A-Go- Go.

BOARD OF DIRECTORS MEETINGS/DISCUSSIONS • Panel discussions and presentations are held on topics impacting The Sunset Strip or the Association featuring experts in various fields. Discussions help provide direction for the SSBA program of work. Result • Stephanie DeWolfe, Bianca Siegl and John Keho of the City of West Hollywood presented The Sunset Strip Billboard plan to the Board and received feedback from the attendees.

8 • Received feedback from the Board members and attendees regarding the Sunset Strip Market. Introduced Calamigos Ranch as a potential partner for the Sunset Strip Market. • Stephanie DeWolfe of the City of West Hollywood discussed proposed commercial projects for The Strip and provided an update on the Sunset Strip Billboard application processes.

DON’T DRINK AND DRIVE NAPKIN CAMPAIGN • Participated in 17th annual City Don't Drink and Drive Cocktail Napkin Campaign. Result • Security Ambassadors distributed brochures during the holidays to raise awareness about drinking and driving and to reduce the number of drunk-driving incidents. • City of West Hollywood recognized the Sunset Strip Security Ambassadors for their participation and support of the Campaign.

SSMF DONATION TO WEST HOLLYWOOD ELEMENTARY SCHOOL ● The Sunset Strip Music Festival (SSMF) once again gave back to the community by creating a charitable ticket program that allowed residents near the street closure to purchase charitable tickets for the Aug. 3 street festival. Result ● This ticket program generated $2,160, which was donated to the West Hollywood Elementary School’s arts and music education program to help support the next generation of musicians and music aficionados. ● On November 20, representatives from SSMF presented the donation to West Hollywood Elementary during their third annual Benefit with Friends charity event.

SSBA BROCHURE • A three-fold brochure that includes information about the Sunset Strip Business Association and the services provided to the members and The Sunset Strip. Result • Distributed to members and interest parties. • Included in the semi-annual assessment billing to the members.

SSBA ANNUAL REPORT • Developed Sunset Strip Business Association Annual Report. Result • Emailed the Annual Report to BID members, key stakeholders and City officials. Report included a recap of 2013 achievements as well as plans for 2014.

SSBA E-NEWSLETTER • Sunset Strip Business Association newsletter is sent monthly. Result • The monthly electronic newsletter was developed to inform key stakeholders about news on The Sunset Strip and the value of the SSBA. • Newsletter was distributed to member business, City officials and interested members of West Hollywood via email. • Topics included: Gibson GuitarTown charity auction, SSBA Social Media Promotion, Whisky’s and Sunset Marquis’ 50th anniversaries, WEHO Care Clothing Drive, DineLA Restaurant Week, MLK Day of Service, Oscar Parties on The Sunset Strip, Businesses Host St. Partick’s Day Parties, 2014 Sunset Strip Market, SVS Continues

9 to Keep the Boulevard Clean, City of West Hollywood Women’s Leadership Conference, SSBA Hosts Security Summit.

SSBA BOARD OF DIRECTORS WORKSHOP • The Sunset Strip Business Association, Inc. (SSBA) Board of Directors and staff held a strategic planning workshop on April 1, 2014 with the goal of reviewing and assessing its existing priorities and establishing what the organization’s priorities should be for the next 3 to 5 years. The purpose of evaluating the programs is to help guide program development and provide a firm footing for the organization. • The workshop was facilitated by Brad Segal, President and Rena Leddy, Vice President of Progressive Urban Management Associates (P.U.M.A.). P.U.M.A. is a Denver and Los Angeles based real estate economics and planning firm specializing in strategic planning for business improvement districts (BIDs) and organizations engaged in community development. Result • Eighteen City officials, stakeholders, property owners and business owners/managers attended. The following are the recommendations as a result of the workshop • Immediate o Assess the safety ambassador program, review and adapt deployment and reflect changes in the SSBA annual budget. o Include a line item in the 2014-2015 budget for strategic planning and re- thinking the BID. Consider securing matching funds from the City to support a strategic plan for the BID. o Review the Board make-up and insure that there is a good diversity of stakeholder representation o In order to reach a wider audience, contract with a new Public Relations firm that can focus on the happenings on The Strip, including music, food, and hotels. o Investigate partnerships with other groups to leverage marketing and special events resources.

• Moving Forward o Re-think the BID and conduct a strategic plan. o Diversify events and incorporate some new ones into future planning that include various audiences and markets. o Work with the City of West Hollywood on a streetscape improvement plan and other public realm improvements. o Work with the City of West Hollywood on the Specific Plan. o Invest in baseline data (demographics, leakage, etc.)

Marketing The Strip

The Sunset Strip Business Association promotes “The Strip” on a local and regional level while complementing the Visit West Hollywood efforts on the national and international stage.

10 SUNSET STRIP MUSIC FESTIVAL, LLC • Sunset Strip Business Association is the managing partner of the Sunset Strip Music Festival (SSMF). This is accomplished through a separate Limited Liability Company. • SSMF originally launched in 2008 and is intended to promote, preserve, and perpetuate the legendary Sunset Strip music experience. Result • Thursday, August 1 – SSMF Celebration at House of Blues Sunset Strip: The three-day festival kicked off with a celebration of 2013 SSMF honoree JOAN JETT, who performed a full set with her band The Blackhearts after she received the Elmer Valentine Award, which honors individuals who have impacted The Sunset Strip’s music scene. The evening featured stories about Jett from iconic Los Angeles DJ Rodney Bingenheimer, comedian Margaret Cho, guitarist Pat Smear and Carmen Electra. The venues hosted performances by Ours (Roxy), Enuff Znuff (Whisky) and Palaye Royale (Viper Room). • Friday, August 2 on The Sunset Strip: This year’s festival continued to activate outdoor spaces to provide unique experiences along the boulevard. An outdoor Jack Daniel’s Experience stage showcased a free, live concert in the “James lot” (8950 Sunset) from 6-10 p.m., presented by Jack Daniel’s and Swing House Studios. Andaz West Hollywood hosted a VIP cocktail reception on their pool deck as well as a free performance by Foo Fighter’s lead guitarist Chris Shiflett in their Mezzanine. The venues presented performances by Scott Weiland & The Wildabouts (Viper), Hoobastank (Whisky) and The Icarus Line (Roxy). • Saturday, August 3 Street Festival: The Sunset Strip was transformed into a premier outdoor concert venue with two main stages and a new Viper Room outdoor stage. Linkin Park, Awolnation, Wale, Black Rebel Motorcycle Club, Warren G, Logic, Slick Rick & Doug E. Fresh, Asher Roth, Finch, Street Drum Corps, Orgy and more performed on the outdoor stages and in The Roxy Theatre and Whisky A Go- Go. • The music festival received coverage in local, national and international media outlets, including Rolling Stone, Los Angeles Times, Billboard, The Hollywood Reporter, KTLA, LA Weekly, OC Weekly, Orange County Register, Guitar World, LAist, Getty Images, WireImage, Clear Channel, Pollstar, Revolver, Venues Today, etc. • SSMF utilized extensive social media campaigns, unique local and national promotional opportunities: • 13 Clear Channel digital billboards in L.A County. • CBS billboards at Newport Freeway, La Cienega & Venice, Hollywood (179,951 spots displayed). • “Tall Wall” on Sunset Strip. (60,000 cars a day). • Ads placed in LA Weekly and OC Weekly. • Online ads: Facebook, LA Weekly. • Two videotrons displayed on The Sunset Strip (60,000 cars a day) • SSMF contracted a social media company to focus on online outreach and promotions. The campaigns increased the festival’s Facebook numbers by 45% to 65,516 followers and its Twitter followers 23% to 18,867. • SSMF reached 3.7 million U.S. Facebook users but it also had an international reach in Mexico (560K), Germany (533K), U.K. (523K) and Brazil (429K).

11 • Facebook ads generated more than 15 million impressions and more than 14,000 people clicked directly on the Facebook ads. • SSMF received more than 29 million impressions on Twitter, with 13,560 direct mentions. • Linkin Park’s Facebook announcing SSMF received 83,042 “likes.” • The total impressions of Facebook and Twitter ads was more the 53 million • SSMF partnered again with 98.7fm/Clear Channel as the official radio sponsor for SSMF 2013. Promotion included: -More than 400 on air mentions; 1,120 thirty second streaming commercials, more than 50,000 fifteen-second mentions. -Web page and event blog featuring SSMF and its artists. -Featured SSMF web ads/banners on site. o Live coverage from the Aug. 3 street festival o Additional mentions and coverage on Clear Channel stations included, KISS FM and MyFm. • KLOS provided 60 SSMF live mentions, 4 week promotion on website and exposure on their e-newsletter valued at $61,500. • Power 106 provided 50 live mentions leading up to SSMF, on-air interviews with SSMF talent, rotating banner on their website, 50 Tweets, 4 Facebook postings, 3 email blasts to 300,000 listeners valued at $150,000. • KTLA provided more than $800,000 on-air and online promotions for SSMF including live interviews with SSMF talent and organizers. • Airplane banner promoting the street festival flew along the Southern California beaches from Newport Beach to Malibu Fourth of July weekend. • Partnered with Ethos Gallery and artist RISK for special limited edition SSMF prints. • National “flyaway” radio promos in partnership with Virgin America, Mondrian, Andaz and Gibson Guitar in markets including Las Vegas, Dallas, Salt Lake City, Detroit, Indianapolis, Fresno, Chicago and San Francisco. • SSMF received additional radio promo on the following stations: 91X San Diego, KIOZ San Diego, 93.7 KCLB Palm Springs, KKUU Palm Springs, KRAB Bakersfield, LIVE 105 San Francisco, 89x Detriot, 104.1 KFRR San Francisco. • SSMF banners were featured on 120 street pole along the 1.6-mile Sunset Strip (60,000 cars a day) during the month of July. • Street teams and promotional flyers created nearly 1 million hits/impressions. • Poster sniping campaign throughout L.A. (Hollywood, West LA, Silver Lake). • Promotion on Eventbrite homepage. • Created custom, exclusive VIP package for 200 Living Social members. Package and festival information was distributed to their database of more than 500,000 Los Angeles area subscribers. • Participating West Hollywood hotels promoted SSMF online and created unique SSMF hotel packages. • Email blasts to past SSMF ticket buyers. • Total Media/Promotional Value: $1.95 Million

• SSMF 2013 worked with the following sponsors - Jack Daniel’s, Bud Light, 98.7fm, Gibson Guitar, City of West Hollywood, Andaz West Hollywood, Eventbrite, Guitar Center, Hornburg Land Rover on The Sunset Strip, Visit West Hollywood, Monster Energy, Guitar World magazine and Revolver, Sephora, and WeChat.com. Swing

12 House Studios provided the street and The Uprising provided the design and creative. Special thanks to ACE Outdoor, CBS Outdoor and Clear Channel Outdoor.

SUNSET STRIP MARKET • Seasonal, weekly Thursday night farmers’ market and community event features organic and conventional California growers as well as artisan food purveyors from 6-10 p.m., May - October at the City of West Hollywood public lot (8755 Sunset Blvd.) • The Market also features live acoustic entertainment, wine tasting, craft beer garden, free events for kids and chef shopping program. The summer months also featured a free outdoor movie series and “game night” sporting event broadcasts in September. Result • The Market builds community between the residents and businesses. • Draws people to The Strip who are then more likely to patronize and spend money in the businesses. • Featured restaurants for the Chef Dining Program included Eveleigh, RH. • The weekly event attracts 500-750 people. • Sunset Strip Market named the “best after hours farmers market” in LA by Time Out Los Angeles. The Market also received coverage in Daily Candy, LA Weekly, LAist, Patch, Wehoville. • Additionally, a weekly e-newsletter is sent to a database of 1,500 individuals outlining the week’s news. The Market’s blog also features weekly posts alerting attendees to the week’s entertainment, events and offerings. • The Market experienced strong attendance during the opening and months immediately following. However, as the fall months approached with cooler weather, earlier sunset and the official start of the school year, the Market experienced a drop in attendance beginning in September and throughout October. During October average weekly attendance was 180 people compared to 350 average during same month last year. The drop in attendance also made it difficult to retain farmers. • The lower attendance was also impacted by the lack of music programming in October, due to noise complaints from a couple residents. In addition, some vendors were unwilling to renew their quarterly health permits for four weeks in October. • The Market went on hiatus for the winter months on October 24 and will re-open in May 2014. • SSBA staff conducted a survey of Sunset Strip Market patrons. Questions included resident zip code, age range, how they found out about the Market, primary reason for visiting the Market, how often they attend, percentage of money spent on fruits and vegetables, what products or improvements would they like to see in the Market. More than150 people participated in the survey. • According to the survey results, 90% of the attendees were from 90069 zip code. Fifty-nine percent of attendees were between the ages of 30 and 49. Ten percent of attendees had children in their household. People came to the Market for the music, produce shopping, outdoor dining and the social gathering. More than 31% attended the Market two or more times a month. • The SSBA held business and community meetings and had many individual meetings with stakeholders, business representatives, residents and City staff since the Market closed last October. These meetings had a combined attendance of close to 80 participants who shared a variety of opinions and represented many backgrounds. Staff discussed in detail the proposed changes in programming for the 2014 Sunset Strip Market.

13 • Based on feedback from attendees and after reviewing economic trends from the past two years, the Market will institute some changes for the 2014 season’s offerings and programming, including updating the hours from 6-10 p.m. to 5:30 – 9:30 p.m., with the Market season operating from May through the end of September. It was also recommended to have an outside special event company manage operations of the Market and take on the financial responsibility, which will elevate the Market and reduce the SSBA risk. In addition, it was recommended to have a community Market with more craft beer and wine offerings. • Worked with SSBA businesses to create options for them to participate in the Market, including creating “pop-up shops” at the Market, selling pre-prepared meals or allowing for food delivery to the Market. Additionally, a bounce-back program will provide Market attendees with discounts and specials at participating Sunset Strip restaurants, venues, retailers and bars.

GIBSON GUITARTOWN III ON THE SUNSET STRIP 2013 • A public art exhibit that features 10-foot tall art guitars placed along the boulevard that celebrate The Sunset Strip’s history • GuitarTown also provides visitors an interactive walking tour of the boulevard. Result • A range of artists participated in the 2013 installment, including Linkin Park’s Mike Shinoda, tattoo artist Kat Von D, tattoo artist Lyle Tuttle, who was close friends with Janis Joplin, sculptor Eugene Daub, who recently created the Rosa Parks sculpture for the U.S. capitol, and jewelry designer Kathy Rose. • The July GuitarTown unveiling at Hornburg received coverage from KTLA, LAist, Wehoville, Gibson.com, WireImage among others. • Local business owners, art aficionados and music fans raised $40,611 at The Sunset Strip GuitarTown charity auction held Feb. 21 at Bonhams. The proceeds will directly benefit Music for Relief, the nonprofit organization founded by members of Linkin Park to support disaster relief, provides aid to survivors of natural disasters and support the prevention of such disasters via environmental programs. • The auction was covered by numerous media outlets including the CBS Sunday Morning Show. It received more than 6 million viewers nationwide. Getty Images, WireImage, Filmagic.com, CBSNews.com, GuestofaGuest.com, Wehoville.com, Metalassualt.com, Bravewords.com, TheMusicUniverse.com covered the auction. • This year’s auction brings the total amount raised for charitable organizations to $147,250. Previous Gibson GuitarTown on The Sunset Strip auction proceeds have benefited the Los Angeles Fund’s “Arts Matter” campaign, Los Angeles Youth Network, West Hollywood Arts & Cultural Commission and West Hollywood Library.

SUNSET STRIP HOLIDAY PROMOTION • Compiled list of special offers and events at businesses along The Strip to publicize activities to L.A. area residents. The list includes activities from New Year’s Eve concerts at music venues to special holiday dining menus/offers. The goal is to showcase the various events taking place along The Strip during the holiday season. Result • Halloween, Thanksgiving, Holiday Dinners and Shopping and New Year’s Eve lists were created and promoted on TheSunsetStrip.com and Facebook and Twitter accounts. • Twenty five business were included in the promotion – House of Blues, Gorge, Peet’s Coffee & Tea, Viper Room, Skybar, Sunset Marquis, Gordon Ramsay,

14 Rainbow Bar & Grill, Rock & Reilly’s, Pearl’s, Le Claufoutis, House of Blues Charitable Dinner, Bootsy Bellows, Book Soup. Sunset Collection (Angela’s Coffee, Sushi Park, Joe’s Pizza, Burger Louge, Devine H20), The Den, Sharima 13 Jewelry, Lenceria Boutique, The Roxy, London West Hollywood, Grafton Sunset. • LA.com and Newnoisemagazine.com featured the Sunset Strip holiday promotions and events.

SUNSET STRIP VIP CLUB PASS • Entertainment venues partnered with participating Sunset Strip hotels to launch the first-of-its-kind All Access Pass in 2010. The pass is available to guests of The Sunset Strip hotels and provides them with complimentary access to The Comedy Store, The Roxy Theatre, Viper Room, Whisky A Go-Go, House of Blues and Rainbow. • The goal is to provide visitors with yet another reason to stay on the world famous Sunset Strip. Result • Distributed a press release to key national markets and targeted travel and lifestyle publications. • Participating hotels promoted the card as part of their packages/perks online.

THESUNSETSTRIP.COM • The official online resource for information and news on restaurants, shows, shopping, nightlife and everything that is The Sunset Strip. Result • Sunset Strip Picks – Weekly picks showcasing the “top” shows and entertainment events on The Strip. • Additional content includes photo galleries, interviews with local personalities, interviews with artists and calendar of events.

SOCIAL MEDIA • The SSBA Aggressively promotes The Sunset Strip as wells as the programs, activities and events through its social media efforts. Result • Facebook fan page for The Sunset Strip has 32,075+ fans, SSMF has nearly 65,780+ fans and the Sunset Strip Market has 1,730. • Twitter account @TheSunsetStrip has 23,900 followers and @SSMF has 19,800 followers.

SEVENTH ANNUAL SUNSET STRIP MUSIC FESTIVAL (SSMF) • The three-day celebration hosted in collaboration with The Sunset Strip music venue owners/operators and the City of West Hollywood is scheduled for September 2014. It is intended to promote, preserve and perpetuate the legendary Sunset Strip music experience. The SSBA is the managing partner of the SSMF, a Limited Liability Company. Result • Through an RFP process, SSMF, LLC is partnering with the Nederlander organization to further spread the word about the Music Festival, gain additional exposure, increase ticket sales and sponsorship, reduce SSMF, LLC risk and take the Festival to the next level.

15 • SSMF, LLC is pursuing a two-day street festival (Saturday and Sunday) instead of just a Saturday event – in an effort to allow for more attendees, a more in-depth festival experience, greater ticket sales, revenue and dramatically increase the likelihood that Music Festival attendees will stay at West Hollywood hotels. A two- day street festival event would not only help make the event profitable, it can also bring many other benefits to the City. It will draw more people in from outside of Southern California and hotels will greatly benefit from the increased traffic for a full weekend. By adding the second day it also gives the clubs and local restaurants an extra day of activity, particularly on a Sunday, which is typically not a busy day or night.

• SSMF is also moving the date of the festival to September, to accommodate hotels concerns that this is a slower time of the year. Additionally, to eliminate some of the heavy competition with other music festivals in L.A. during the month of August as well as festivals in Europe, which have prevented artists from performing in the past.

SUNSET STRIP STREET POLE BANNER PROGRAM • Designed to promote The Sunset Strip and to raise revenue to fund the most prioritized needs of the Association. Result • In April 2013, SSBA signed another two-year contract with Jack Daniel’s (extended to June 2015). • The Jack Daniel’s sponsorship grossed $352,000 for fiscal year 2013/14.

III. 2014-2015 PROGRAM OF WORK PLAN

Public Safety & Maintenance

As a result on the Board workshop held on April 1, many stakeholders believe the program should be reviewed. Stakeholders feel that they don’t need as many staffing hours for the Security Ambassador program because the cruising and crowd control issues have subsided and the demographics of some of the clubs and business have changed; however The Strip needs to improve its public realm, walkability and sense of place.

The SSBA will continue to focus on public safety and security with the retention of a trained, motivated, qualified, and attentive Security Ambassador team. Block-by-Block will continue to provide security officers, a shift supervisor, and Security Director to allow the District to have a security presence 7 (seven) days per week. The timing and deployment of the security team may vary depending on special events and changing needs. The Sunset Strip Business Association and the Security Ambassadors will continue to work closely with the West Hollywood Sheriff’s Department (WHSD) and the City of West Hollywood to ensure any scheduling changes are meeting the needs of the District and its goals.

The Security Ambassadors will continue to deter: noise, unlawful littering, trespassing, loitering, graffiti, and disorderly conduct. The security detail will also continue to serve as goodwill ambassadors and project a friendly image for The Strip by welcoming residents and visitors and assisting with information and directions. The Security Ambassador Team will also continue to: Patrol the entire District on bicycles, on foot, and by

16 automobile; staff and implement restricted access barriers; and assist WHSD and member businesses.

For the upcoming year, the Association will enhance the street maintenance services by including a Cleaning Ambassador program under the Block-by-Block contract which will include power washing the sidewalks.

Four years ago the City of West Hollywood completed The Sunset Strip Beautification Project which included pavement resurfacing; replacing damaged sidewalks; improving roadway and crosswalk markings; upgrading traffic signal equipment; and planting street trees. Unfortunately new and existing sidewalks are lacking maintenance and the needed cleanliness. The new services provided by this Cleaning Ambassadors would provide removal of loose trash, cigarette butts, sediment and loose rock. All areas of the District would be covered twice per eight hour shift. Graffiti would be removed upon identification from public fixtures such as light posts, utility boxes and signs. The new services would provide two types of pressure washing: (1) Spot washing of isolated spills, stains and hot spots in the district, and (2) a scheduled comprehensive washing of Sunset Boulevards sidewalks to provide a thorough even cleaning. In addition, the Cleaning Ambassadors would take on special projects including a thorough cleaning of tree wells, scrubbing and cleaning of street fixtures and any other task as specified. This daytime Ambassador team would be trained and expected to recognize hospitality needs in order to provide a friendly greeting and offer of assistance, give directions, provide recommendations on things to do and see, and answer any questions the public might have.

Below is a sample schedule of the proposed Security Ambassador and Cleaning Ambassador Program that would be provided by Block-by-Block. Please note the SSBA would no longer utilize Social Vocational Services since those same services would be provided by Block-By-Block.

SECURITY COMMITTEE

The SSBA Security Committee will continue to meet periodically with security staff of The Sunset Strip businesses to discuss ways to improve safety and service on The Strip. The meetings will serve as a venue to share information about upcoming events or concerts so that SSBA Security Team can effectively assist if requested. Working with

17 the Sheriff’s Department, the Security Ambassadors share information to educate stakeholders on safety/security related issues.

HOMELESS OUTREACH

The SSBA Security Ambassadors will continue to help coordinate communication with homeless service providers to ensure that resources are used most effectively on The Strip. They will also provide information to the homeless community and those who want help, including about P.A.T.H. (People Assisting The Homeless), which provides services to homeless.

Public Outreach, Policy Development, and Administration

The SSBA will also continue to reach out to the community for input, comments, and suggestions. SSBA staff and Board of Directors will continue the monthly Board meetings, which are open to the public.

Part of the plan for continued success in public outreach includes maintenance of a neighborhood database used to communicate with area residents. This database will continue to be a priority in order for the SSBA to effectively communicate with constituents via email. The database will be used to notify them of upcoming meetings and solicit feedback on the SSBA’s implemented programs.

The SSBA will also continue to work with City staff and law enforcement in developing policies that will benefit the District.

Additionally, the SSBA will remain an avenue whereby member businesses can be united and work alongside the City of West Hollywood and discuss a wide range of pertinent issues. Under the umbrella of the SSBA, business owners will be better positioned to approach the public sector with a viable and unified private sector voice.

NEIGHBORHOOD MEETINGS

The SSBA will hold neighborhood meetings for the residential and business communities to discuss The Strip, SSMF and SSBA.

Budget/Request

The 2014-2015 budget and assessment is anticipated to be $491,500. As specified in the Program of Work Amendment 2014/15, additional monies raised by the banner sponsorship program or other revenue generators will go towards enhancing the goals of the SSBA and specifically for future office space rental, marketing plan, and increased administrative and operating cost

TABLE II West Hollywood Sunset Strip Business Improvement District Budget FY1415

Service Description Amount

Public Safety/Ambassadors $181,000 Prevention of public disorder Coordination with City Sheriff Report litter and maintenance problems Respond to emergency situations Interface between businesses and residents As Ambassadors, assist Sunset Strip visitors

Maintenance Services/Cleaning Ambassadors $169,000 Pressure washing sidewalks on Sunset Blvd. Removal of litter on The Strip and surrounding neighborhoods. Daytime hospitality ambassadors to assist visitors.

Outreach & Policy Development $2,271 Policy development (traffic, noise, parking issues, etc.) Printing and Postage

Operations & Administration $139,229 Program administration (salaries, taxes and insurance) Office supplies and equipment Utilities Office Rent

TOTAL $491,500.00

BID BOUNDARIES

The City of West Hollywood is surrounded by the City of Los Angles on the north, south and east and the City of Beverly Hills on the west. The Sunset Strip Business Improvement District is primarily centered along a 1.6-mile stretch along the portion of Sunset Boulevard known as "The Strip". The District is comprised of one zone. The specific addresses included in the BID boundaries are as follows:

Street Range Alta Loma Rd. 1190-1232 Carol Dr. 1030-1058 Clark Dr. 142-150 Cory Ave. 1004-1010 Doheny Dr. 1060-1111 Doheny Rd. 9201-9337 Hammond St. 1016-1026 Harper Ave. 1000-1036 Hilldale Ave. 1000-1036 Holloway Dr. 8731-8766 Horn Ave. 1100-1120 La Cienega Blvd. 1200-1234 Larrabee St. 1010-1050 Miller Dr. 1320 Olive Dr. 1300-1339 1/2 Palm Ave. 1012-1022 1/2 San Vicente Blvd. 1000-1031 Sherbourne Dr. 1104-1114 Sunset Blvd. 8222-9220 and 9229-9255 (odd only) Sweetzer Ave. 1400-1422

The service area includes approximately 200 businesses.