ANNUAL REPORT 2OI8
2018 Annual Report I Downtown Center Business Improvement District 1 2 Downtown Center Business Improvement District I 2018 Annual Report DEAR DOWNTOWN STAKEHOLDER We are pleased to share with you the 2018 Annual Report for the Downtown Center Business Improvement District (DCBID). It was a year of big changes, with our founding President & CEO Carol Schatz stepping down after 20 years of service to the DCBID. Her leadership in the revitalization of our District and Downtown was commemorated on May 3rd with the dedication of Carol Schatz Square at the corner of Wilshire & Hope. It is with great appreciation and anticipation that we set out to build on her legacy. Downtown is a radically different place today than when Carol started the DCBID in 1998, but one critical constant through those years has been the stakeholder support that makes all of our work possible, and for which we are deeply grateful. The core of our services has always been safety, maintenance, marketing, and economic development, but the nature of those programs has evolved with the growth of the District and the changes in DTLA. Our main goal – a safe, clean, and vibrant district – never changes, but the ways we make that happen – as well as the opportunities and challenges we face along the way – are as dynamic as the city itself. The Safe and Clean team is at the heart of our efforts, with a commitment to assisting those who live, work, and visit the District, and providing 24-hour supplemental service to maintain the highest level of cleanliness and safety. In 2018, they responded to over 30,000 calls for service, and removed over 71,000 bags of trash and more than 4,000 instances of graffiti. The Marketing and Economic Development team continued to play a lead role in the vitality of Downtown with outreach to investors and developers, tours for prospective residential and commercial tenants, and innovative programs in each of our key sectors. Major initiatives this year included: publishing the Downtown LA Arts & Culture Report; launching the DTLA: Make It Yours Club to promote local businesses; and producing the DTLA//IRL holiday pop-up experience. These attraction and promotion efforts were amplified by theDCBID’s communications channels, including our increasing use of social media, video and digital content, and our website DowntownLA.com, telling the story of DTLA. Community engagement is an increasingly important component of our work, with our signature events such as Dog Day at the Cathedral and Halloween Festival For DTLA Kids complemented by quarterly Resident Mixers and our monthly Marketing Roundtable. The DCBID Downtown Guides provided assistance to thousands of workers, residents, and visitors, and connected with dozens of businesses in the District. Thank you for your continued dedication to Downtown LA and our District. We are extremely grateful for your support and know that together we will continue to build the future of Downtown LA. Sincerely,
Robert Cushman Suzanne Holley Chairperson, President & CEO, DCBID Board of Directors DCBID
2018 Annual Report I Downtown Center Business Improvement District 3 PHOTO BY HUNTER KERHART 4 Downtown Center Business Improvement District I 2018 Annual Report Cranes are taller than most buildings and the buildings are the tallest west of the Mississippi. Fashionable hotels, trendy restaurants, Volstead- themed bars, and expensive boutiques dot every block.” —Fodor’s Travel, November 2018
2018 Annual Report I Downtown Center Business Improvement District 5 DTLA BY THE NUMBERS
POPULATION GROWTH
18,700 75,633 1999 2018
PROPERTY VALUE
$15.9 BILLION 2018 $9.3 BILLION 2008
$4.5 BILLION 1999 $11.4 BILLION Total increase
RESIDENTIAL UNITS AVERAGE CONDO PRICE
Per Sq. Ft. 44,230 $697
11,626 $169
1999 2018 1999 2018
6 Downtown Center Business Improvement District I 2018 Annual Report A VIBRANT COMMUNITY
$99,000 66% 80% Average median household Residents between Residents have earned a income of residents the ages of 23–44 college degree or higher
500,000+ 22 MILLION 1,000+ Weekday population Annual visitors New restaurants, bars, retail, and amenities 2008–2018
CONTINUED GROWTH
Current Inventory Under Construction Pipeline
HOTEL ROOMS 9,518 1,271 9,449
RESIDENTIAL UNITS 44,230 7,0 3 3 35,170
2018 Annual Report I Downtown Center Business Improvement District 7 OPERATIONS Keeping the District safe and clean
Safe and clean streets are the foundation of a vibrant neighborhood. The DCBID’s Safety and Maintenance team is proudly committed to assisting those who live, work, play, and visit the District. This highly visible, well-trained staff of Safety team members and Maintenance personnel continues to provide daily, 24-hour supplemental services to maintain safety and cleanliness within the District. In 2018, the team addressed 110,694 District issues including responding to 30,476 calls for service. The DCBID’s BID A.C.T.I.O.N. program provided assistance to the homeless community, connecting 48 individuals to housing services.
SAFETY While in the District, you may come across our Safety team members, that are contracted employees of Allied Universal, and have training 30,476 that ranges from enhanced customer service to assisting those in Calls for safety service need and much more. They serve as additional eyes and ears for local law enforcement and city entities.
MAINTENANCE Our Maintenance team helps maintain the cleanliness of sidewalks and public areas within the District. The Maintenance team crew 4,278 members are contracted through Chrysalis, a non-profit organization Graffiti clean ups offering transitional employment opportunities to formerly homeless or economically disadvantaged individuals.
BID A.C.T.I.O.N. The BID A.C.T.I.O.N. program was developed to assist the DCBID in engaging and providing services to the homeless. In 2015, the BID 4,076 A.C.T.I.O.N. program was expanded through a contract with PATH Services provided (People Assisting the Homeless), an organization with over 30 years’ experience helping the homeless “find a path home.”
8 Downtown Center Business Improvement District I 2018 Annual Report 2018 Annual Report I Downtown Center Business Improvement District 9 SAFETY
FOOT PATROLS The DCBID Safety team began foot patrols in the District after SAFETY TEAM observing an increase in calls during the lunch and dinner hours STATISTICS regarding quality of life issues. The team focused on 7th Street during busy hours to ensure the area remains safe and clean for those who live, work, and play in the District. The addition of the foot patrols has been well received in the community and the team 30,476 has received extremely positive feedback from the public. Calls for service MOAB TRAINING Management of Aggressive Behavior (MOAB) training was provided by Allied Universal. This certified, 16-hour course trains our Safety team members on how to handle aggressive behavior by individuals 110 ,694 in the District. The training specializes in de-escalating aggressive Total issues addressed behavior and coming to a peaceful resolution. All of our Safety Team members are MOAB trained and will continue to receive updates on new techniques as they become available.
10 Downtown Center Business Improvement District I 2018 Annual Report MAINTENANCE
MAINTENANCE TEAM STATISTICS 71,349 TREE TRIMMING CONTINUES Bags of trash removed In 2018, the DCBID trimmed 208 trees within the District. The tree from over 250 DCBID trimming assists with overgrown trees that are blocking streetlights, owned receptacles growing into the sides of buildings, and helps to improve the cleanliness of the sidewalks. Since the DCBID began this service in 2014, we have facilitated the trimming of over 900 trees within the District. 4,278 Instances of graffiti removed 7,988 Sidewalk wash-down conducted
2018 Annual Report I Downtown Center Business Improvement District 11 BID OUTREACH
PATH PARTNERSHIP STATISTICS BID A.C.T.I.O.N. & PATH PARTNERSHIP The BID A.C.T.I.O.N. (Ambassador Community Training for Intervention, Wellness, Outreach & Networking) program was developed in conjunction with the California Hospital in 2000 to assist the DCBID in engaging and 4,076 providing services to the homeless. In 2015, the BID A.C.T.I.O.N. program Services provided was expanded through a contract with PATH (People Assisting the Homeless), an organization with over 30 years’ experience helping the homeless “find a path home.” In addition to finding housing, PATH builds permanent supportive housing and provides case management, medical and mental healthcare, and benefits advocacy. In 2018, PATH dedicated 48 two full-time mobile outreach teams to the District who provided those Individuals connected experiencing homelessness with a variety of services ranging from giving to housing services clothing, blankets, and transportation, to accessing medical services, rehabilitation programs and temporary and permanent shelter. The partnership between the DCBID and PATH increases both our outreach efforts and the types and number of services we can offer to Downtown 868 LA’s homeless population. High quality services are critical to ensuring that New individuals contacted homeless individuals and families can transition from living on the streets to thriving in their own homes.
20-YEAR PARTNERSHIP BETWEEN 2,952 DCBID & CHRYSALIS CONTINUES Chrysalis is a nonprofit organization focused on creating a pathway to Contacts made self-sufficiency for homeless and low income individuals by providing the resources and support needed to find and retain employment. The partnership between the DCBID and Chrysalis provides approximately 30 ongoing transitional employment positions. These positions provide valuable experience, helping to remove barriers to employment for individuals who have overcome a history of incarceration, homelessness, or drug addiction.
12 Downtown Center Business Improvement District I 2018 Annual Report TEAM MEMBERS OF THE YEAR Each quarter, the DCBID recognizes Safety and Maintenance team members who have gone above and beyond the call of duty.
ANGEL LOMELI, Safety Team MARSHALL JACKSON, Maintenance Team
Angel has excelled in his ability Marshall can be found working to perform his job duties hard in the District with a big smile without a supervisor’s directive. on his face, always ready to help As Senior Safety personnel, anyone who needs directions or he uses his experience and assistance. His supervisors know guidance to mentor incoming that whenever Marshall is on the Safety team members. job, it will get done correctly.
HECTOR TZUL, Safety Team JOEL PLEASANT, Maintenance Team
Hector has proven to take Joel has been consistently working initiative in performing his hard with a welcoming attitude to job duties as well as handling those around him. He takes pride emergency calls. He demonstrates in his work and demonstrates it complete professionalism while in by showing up early, following all the field when interacting with the instructions and taking initiative general public. to assist with special projects.
ARLENE GARCIA, Safety Team TOMAS CLAUDIO, Maintenance Team
Arlene consistently Tomas started with the DCBID in a demonstrates a high level of part-time position as the porter for professionalism in executing her Angel’s Knoll. With his hard work job duties and in the field when and continued dedication to the interacting with the public. She team, Tomas quickly earned the was promoted to Supervisor and respect and friendship of everyone has excelled in the position. at the DCBID.
MELVIN MORATAYA, Safety Team DERRICK SMITH, Maintenance Team
Melvin has shown professionalism Derrick was promoted from while interacting with the general sweeper to driver and his public in assisting with directions supervisors recognize him as their and answering questions. He “go-to-guy” because of his flexibility makes himself available and ready and willingness to do whatever is to assist fellow members at any needed. He says that he enjoys the moment and keep the District safe. team atmosphere at the DCBID.
2018 Annual Report I Downtown Center Business Improvement District 13 ECONOMIC DEVELOPMENT Bringing investment to the District
The Economic Development team continued to play a lead role in the growth of our District and Downtown LA through its outreach to investors and developers, and its tours for prospective residents, office, and retail tenants. We maintained our position as the main hub for data and research on DTLA, responding to hundreds of requests for information, and issuing industry standard quarterly Market Reports. In 2018 we released our new Downtown LA Retail Report, highlighting the strength of the retail sector, and our Arts & Culture Report, stressing how DTLA has become the cultural epicenter of the entire Southern California region. We continued our quarterly DTLA Development Tour, which features key Downtown construction projects and supported the residential market by showcasing DTLA’s newest residential properties on our monthly DTLA Housing Tour.
INVESTMENT IN DOWNTOWN LA 1999–2018
Arts & Entertainment $2.5 billion
Civic & Institutional $4.6 billion
Commercial $2.2 billion
Mixed-Use $6.8 billion
Residential $12.5 billion
Figueroa Corridor/ Expo Park $1.9 billion
14 Downtown Center Business Improvement District I 2018 Annual Report PHOTO BY HUNTER KERHART
2018 Annual Report I Downtown Center Business Improvement District 15 COMMERCIAL MARKET OVERVIEW In 2018, the Economic Development team supported the commercial real estate sector with information, advice, and a range of services provided to investors, developers, lenders, brokers, property owners, and tenants.
DCBID SIGNIFICANT COMMERCIAL SALES 2018
ASSET ADDRESS BUYER BUILDING SQ FT PRICE PER SQ FT Eighth & Grand 770 S. Grand Ave. Brookfield 577,000 $648 Atelier 801 S. Olive St. Brookfield 320,000 $875 8th + Hope 801 S. Hope St. Yeh Family Trust 300,000 $733 Wedbush Center 1000 Wilshire Blvd. Cerberus 477,774 $410 The CalEdison 601 W. 5th St. GreenOak Real Estate 287,615 $469
OFFICE VACANCY & RENT TRENDS DIRECT DIRECT AVERAGE YEAR VACANCY RENT PER SQ FT COMMERCIAL 2018 16.6% $43.68 STATISTICS 2017 17.7% $42.12 2016 16.8% $39.96 2015 18.2% $37.44 6% 2014 19.4% $36.48 DCBID property value 2013 20.7% $36.02 increase 2017-2018 2012 20.0% $35.79 2011 18.6% $35.67 2010 16.7% $35.40 279% 2009 15.3% $36.77 2008 12.5% $38.64 DCBID total property value 2007 12.3% $36.37 increase 1997-2018 2006 13.8% $31.65 2005 11.2% $28.05 2004 14.2% $26.88 3.1M 2003 14.4% $26.22 2002 15.2% $25.53 Total square feet office space leased in 2018 2001 12.9% $24.84 2000 16.0% $23.40 1999 14.2% $23.04
16 Downtown Center Business Improvement District I 2018 Annual Report DCBID PROPERTY VALUES 1997–2018
1997 $4,211,364,587
1998 $4,480,598,392 6.4%
1999 $4,838,421,305 8%
2000 $5,025,431,988 3.9%
2001 $5,260,525,694 4.7%
2002 $5,544,496,087 5.4%
2003 $5,688,391,189 2.6%
2004 $6,045,596,904 6.3%
2005 $7,002,900,943 15.9%
2006 $7,853,144,506 12.5%
2007 $8,695,487,916 10.7%
2008 $9,301,781,581 7%
2009 $9,326,410,136 0.3%
2010 $8,851,402,207 -5.1%
2011 $9,030,845,311 2%
2012 $9,213,781,118 2%
2013 $10,580,625,175 14.8%
2014 $11,086,749,184 4.8%
2015 $13,626,273,158 22.9%
2016 $14,620,288,733 7.3%
2017 $15,040,612,344 2.9%
2018 $15,946,353,021 6%
2018 Annual Report I Downtown Center Business Improvement District 17 COMMERCIAL MARKET OVERVIEW SIGNIFICANT OFFICE LEASES 2018
TENANT BUILDING ADDRESS SQ FT
Honey Coca-Cola Factory 963 E. 4th St. 130,397
Spotify At Mateo 555-581 Mateo St. 109,706
Arizona State University Herald Examiner 1111 S. Broadway 85,118
Lockton Insurance 777 Tower 777 S. Figueroa St. 72,127
CBRE Figueroa at Wilshire 601 S. Figueroa St. 69,046
ARUP Wilshire Grand Center 900 Wilshire Blvd. 66,200
Seyfarth Shaw LLP Figueroa at Wilshire 601 S. Figueroa St. 46,184
Uber LA Times Building 145 S. Spring St. 41,582
American Business Bank 400 South Hope 400 S. Hope St. 38,546
Chicago School of Professional Psychology AON Center 707 Wilshire Blvd. 37,515
In 2018, Honey leased 130,397 square feet in the rehabbed Coca-Cola Factory.
18 Downtown Center Business Improvement District I 2018 Annual Report RESIDENTIAL MARKET OVERVIEW A record-breaking 3,295 new residential units opened in 2018, including apartments at 888 at Grand Hope Park and condominiums at Metropolis Tower II. Additionally, Bonnis Properties began their conversion of the historic Foreman & Clark Building into 125 apartments. We supported the residential market on both sides of the equation–providing consulting services to investors and developers and touring prospective residents and brokers through existing properties and new projects on our monthly DTLA Housing Tour.
AVERAGE CONDO SALES 2001–2018
CHANGE FROM YEAR PRICE PER SQ FT PREVIOUS YEAR
2018 $697.00 0%
2017 $697.00 6.8%
2016 $652.69 7.8%
2015 $605.16 9.5%
2014 $563.23 15.4% RESIDENTIAL STATISTICS
2013 $487.89 30.5% 2012 $373.78 16.7% 87.1% 2011 $320.39 -2.8% Downtown residential 2010 $329.58 -3.2% occupancy rate 2009 $340.31 -28.4%
2008 $475.49 -9.9% 2007 $527.54 -5.6% 35,170 2006 $559.09 20.9% Proposed units 2005 $462.51 18.8%
2004 $389.29 41.3% 2003 $275.59 25.4% 7,033 2002 $219.78 14.8% Units under construction 2001 $191.44 13.5%
Source: DTLA Life Realty
2018 Annual Report I Downtown Center Business Improvement District 19 RETAIL & HOTEL MARKET OVERVIEW
2018 was another outstanding year for retail and hospitality, with 1.35 million square feet of retail space and almost 1,300 new hotel rooms under construction and another 9,500 hotel rooms in the pipeline. One of the most exciting events of the year was the January opening of the NoMad Hotel at 7th & Olive, providing 241 new luxury rooms to the market. Noteworthy retail openings included Nordstrom Local & Uniqlo, and new eateries Shake Shack, Paris Baguette, Li Orient, Honeymee, and Sweetgreen. The DCBID played a role on both the industry and consumer side – providing information and consulting services to prospective retail tenants and hospitality developers, and promoting local businesses and hotels in our marketing materials, tours, and Marketing Roundtable meetings.
NOTABLE RETAIL OPENINGS IN 2018
Burgerim Corner Cantina
Honeymee Lucky Bird
Recliners LA Sweetgreen
RETAIL & HOTEL Chick-Fil-A DRNK coffee + tea and QWENCH juice bar STATISTICS JINYA Ramen Bar Massage Envy Rostizados The Burrow LA 1.35M CoCo Fresh Tea & Coffee DTLA Acupuncture Square feet of retail space under construction Kues Modern Asian Nordstrom Local
Shake Shack Uniqlo 1,300 Coconut’s Fish Café Hatch Yakitori New hotel rooms under construction Li Orient Paris Baguette
Skid Row Coffee Veggie Grill
20 Downtown Center Business Improvement District I 2018 Annual Report 2018 Annual Report I Downtown Center Business Improvement District 21 OFFICE PROGRAMS
US Bank Tower Lobby
HACKING THE HIGHRISE since 2013, new owners are maximizing the value and appeal of their buildings by reinventing them from Hacking the Highrise is an initiative from the DCBID the inside out, and reconnecting them to a revitalized that explores how DTLA’s office towers are being DTLA. From lobbies and plazas redesigned as communal reimagined for a new era of city living and a new gathering spaces, to radical office renovations for generation of tenants. creative tenants, and amenities and programming to DTLA is attracting a new generation of companies enrich the employee experience and integrate with the in growth sectors such as technology, design, and surrounding neighborhood, DTLA’s office towers are an media. These creative and entrepreneurial companies active testing ground for the workplace of tomorrow in are establishing a dynamic innovation scene with a the Downtown of today. vibrancy that extends to DTLA’s trend-setting restaurants and culture and the forward-thinking design of its BROKER LUNCH & LEARN streetscapes and public spaces. Some of them are setting As part of our DTLA: Make It Yours campaign, we have up shop in updated historic buildings or converted produced new materials and resources to support office industrial properties, but many are choosing Class A brokers with clients interested in DTLA. towers for their prime locations, large floor-plans, and To introduce these materials, our Lunch & Learn series for state-of-the-art technology and infrastructure. The towers top brokerage firms around the region brings presentation have been repositioning themselves to accommodate materials along with lunch to office brokers around Los the evolving needs and alternative workspace style and Angeles. We provide high-quality printed copies of our cultures of their new tenants. Guide to Downtown Office Space for brokers and their With over $6.5 billion invested in Class A Office Towers colleagues to give to prospective tenants.
22 Downtown Center Business Improvement District I 2018 Annual Report RETAIL PROGRAMS
DTL A//IRL For the holiday season, DCBID presented DTLA//IRL (Downtown Los Angeles In Real Life) – an elaborate pop-up on the ground floor of the LA Athletic Club. Equal parts retail experience, visitors center, event space, and art installation, the initiative highlighted the vibrant culture, community, and commerce of DTLA. POP-UP CONNECT The first phase of the Pop-Up Connect program, designed to connect trendsetting retailers to available space, was launched. Digital marketing and social media platforms were used to promote available spaces, listed by participating properties on DowntownLA.com, to potential retailers. MAKE IT YOURS CLUB Our Make It Yours Club, an SMS-based consumer loyalty program, grew to over 7,000 members by the end of the year. Subscribers received weekly text messages featuring exclusive offers and special deals at Downtown retailers.
2018 Annual Report I Downtown Center Business Improvement District 23 REPORTS
MARKET REPORTS Our quarterly Market Reports provided a comprehensive overview of Downtown real estate and development. They included updates on newly proposed and under construction projects by district, key statistics by market sector, as well as significant sales, leases, and retail openings. The DCBID Market Report has become an important data reference for the Downtown market, and is an often cited resource in media coverage of the DTLA marketplace.
RETAIL REPORT Retail in Downtown LA is undergoing a renaissance of its own with a growing mix of national brands, upscale boutiques, and distinct local offerings, all finding their own place in a community where fashion and food, art and culture, and community and commerce have converged in a celebration of urban living. Our Downtown LA Retail Report underscored the strength of the retail sector.
ARTS & CULTURE REPORT Since the beginning of LA’s history, Downtown has been the region’s hub for cultural assets and activity. In 2018, the DCBID produced its first Arts & Culture Report, which featured how DTLA has re-emerged as the epicenter of Los Angeles for cultural investment and innovation.
24 Downtown Center Business Improvement District I 2018 Annual Report TOURS & SERVICES
DEVELOPMENT TOURS Timed with the release of our quarterly Market Report, this bus and walking tour highlights new residential, office, and retail real estate development. Each quarter’s tour provided an overview of the market, developments under construction and in the pipeline, and a closer look at recently completed projects. HOUSING TOURS In 2018, almost 300 people attended our monthly DTLA Housing Tour, showcasing the unique attractions, amenities, and residential living opportunities in Downtown. Each tour provided examples of for-lease and for- sale developments, with an amenity stop at a local business. OUTREACH, RECRUITMENT & CONSULTING SERVICES To promote investment, we assisted and/or toured many types of companies and individuals, including the following: • Residential Developers and Investors • Hotel Developers and Operators • Commercial and Investment Bankers • Real Estate Appraisers • Office Space Tenants • Retailers and Restaurateurs • Cultural, Educational and Non-profit Institutions • Commercial and Residential Real Estate Brokers
2018 Annual Report I Downtown Center Business Improvement District 25 MARKETING Expanding Awareness & Strengthening Community
The Marketing department implemented strategic programs, campaigns and events that promoted Downtown businesses, engaged the community and highlighted events throughout the District. We used digital marketing and social media platforms to drive visitors to DowntownLA.com and to promote Downtown businesses, events, and programs to thousands of visitors, workers, and residents. Our website, the number one resource for all whom live, work, and play in Downtown, had over 1.13M page views and 363K users in 2018. Our social media increased across all platforms (Facebook, Twitter and Instagram), but Instagram followers grew the most significantly at 145% over 2017. Our email newsletter continued to reach tens of thousands of subscribers each month with an average open rate of 26%. Our summer and holiday marketing campaigns promoted DTLA to the greater LA region, and highlighted events and businesses in our District with curated guides and useful content that generated renewed awareness of the Downtown area.
SOCIAL MEDIA NUMBERS
43,133 39,086 29,477 Facebook fans Twitter followers Instagram followers
26 Downtown Center Business Improvement District I 2018 Annual Report 2018 Annual Report I Downtown Center Business Improvement District 27 EVENTS
RESIDENT MIXER SERIES As part of our continued efforts to build community among our residents, the DCBID hosted three Resident Mixers in 2018. Our Spring Mixer was held at Harbor House with over 60 residents in attendance. The Summer Resident Mixer was held at RA_Loft Salon where over 75 residents and Marketing Roundtable members attended the mixer and enjoyed an evening of mingling with neighbors, sampling small bites and sips. The Holiday Resident Mixer was held at Morton’s the Steakhouse, where we hosted nearly 100 residents and Marketing Roundtable members. Attendees learned about DCBID services, and had the opportunity to meet the DCBID staff.
19th ANNUAL PUBLIC SAFETY APPRECIATION BBQ Over 1,000 residents, workers, and safety personnel attended our 19th Annual Public Safety Appreciation BBQ at Bank of America Plaza. The DCBID was joined by the Los Angeles Police Department, the Los Angeles Fire Department, and the Historic Core, Fashion District, and South Park BIDs to honor the men and women in uniform whose dedicated service continues to make our District and Downtown LA a safe and livable community. The DCBID hosts this community event each year to give Downtown residents and workers the opportunity to meet and connect with the public safety officials who keep them safe. This year’s net proceeds of $5,000 benefited the Los Angeles Police Memorial Foundation.
28 Downtown Center Business Improvement District I 2018 Annual Report 11th ANNUAL HALLOWEEN FESTIVAL FOR DTLA KIDS On the evening of October 31st, over 1,300 Downtown LA kids and families attended our Halloween Festival at FIDM Grand Hope Park. Now in its 11th year, this community event was created by the DCBID to support the families that we helped to bring Downtown. These families help create a vibrant community and we are honored to provide them with an opportunity to have a safe and fun Halloween party right in their own backyard. During the event, families were able to meet with Downtown service providers such as Metro Charter School, Bright Horizons Preschool, and the Los Angeles Library Foundation. Event highlights included puppet shows, face painters, bounce houses, arts and crafts tables, and trick-or-treat doors. Attendees also enjoyed hot dogs, cotton candy, and snacks donated by Ralph’s.
12th ANNUAL DOG DAY AT THE CATHEDRAL On Wednesday, July 11, the DCBID hosted the 12th Annual Dog Day Afternoon at the Cathedral of Our Lady of the Angels for Downtown LA residents and their dogs. Over 1,100 residents and their dogs were in attendance. This free community-building event is a great way for residents to meet their neighbors, make new friends, and celebrate their four-legged friends. Residents enjoyed live music, food by Levy Restaurants, and meeting with over 30 pet-related vendors.
2018 Annual Report I Downtown Center Business Improvement District 29 CAMPAIGNS
SUMMER IN THE CITY Downtown LA is hotter than ever in the warm summer months. Our summer campaign “Summer Sun, Cool Fun” kicked off Memorial Day weekend and promoted DTLA as a destination for special events, movies, and outdoor concerts. Audiences were driven to our curated guide at DowntownLA.com/ Summer. The online guide highlighted major event series and included where to go for dining, shopping, and things to do before and after each event. 2018 participants included: • FIGFEST 2018 • FLIXatFIG • Friday Night Flicks at Pershing Square • Downtown Stage at Pershing Square • Grand Performances • Dance DTLA Our marketing campaign included a strategic mix of digital, print, and radio advertising along with pop-up activations at Pershing Square and FIGat7th.
DTLA FOR THE HOLIDAYS The DCBID launched its “DTLA for the Holidays” campaign from Thanksgiving weekend through New Year’s Day. The campaign promoted Downtown LA as a walkable destination for unique gifts and festive events with a one-stop guide at DowntownLA.com/Holiday. The webpage featured 50+ retailers, hotel promotions, and holiday events in Downtown LA including the Ice Rink at Pershing Square, FIGat7th Holiday Silent Disco, L.A. Master Chorale concerts at Walt Disney Concert Hall, Winter Glow at Grand Park, the Millennium Biltmore Tree Lighting Ceremony, and many more. The holiday campaign included a pocket-sized shopping and events guide, strategic mix of digital, print, and radio advertising along with pop-up activations at Pershing Square and FIGat7th.
30 Downtown Center Business Improvement District I 2018 Annual Report MARKETING STATISTICS 1.1M Website page views 363,331 Website users 35,523 Email subscribers 26% Email open rate (above industry avg.)
2018 Annual Report I Downtown Center Business Improvement District 31 COMMUNICATIONS
NEWSLETTERS Quarterly District News The DCBID published and mailed four quarterly newsletters to all property owners within the District. The District News newsletter provided information on DCBID programs, events, and Operations statistics to keep our stakeholders informed. Monthly Email Newsletters Subscribers to the DCBID’s “This Month in DTLA” received monthly newsletters that highlighted new businesses, events, seasonal marketing campaigns, and exclusive specials. The emails had an average 26% open rate, exceeding the 17% industry standard.
MEDIA COVERAGE DCBID events and initiatives resulted in coverage from a number of news media outlets including the Los Angeles Times, New York Times, Los Angeles Business Journal, Wall Street Journal, L.A. Downtown News, and Globe St. The DCBID earned broadcast coverage on stations KTTV, KTLA, and KABC7. WELCOME MAPS The DCBID distributed approximately 500,000 maps, highlighting Downtown LA attractions, points of interest, and public transit routes. The maps were distributed to Downtown businesses, at special events, transportation hubs, tourist locations, and hotels throughout Southern California.
32 Downtown Center Business Improvement District I 2018 Annual Report DOWNTOWN GUIDES The DCBID Downtown Guides program continued to provide much needed services to residents, visitors and businesses including distribution of Downtown materials, providing directions, answering general questions, interacting with new businesses, creating welcome bags, and much more. The Downtown Guides are instrumental in creating a supportive community in our District for businesses and individuals. When it comes to your safety on the street, the Downtown Guides serve as extra eyes and ears for our Safety Team.
DOWNTOWN GUIDES STATS 834 Directions given 4,040 Businesses contacted 157,875 Welcome maps provided 3,000 Welcome bags provided
2018 Annual Report I Downtown Center Business Improvement District 33 34 Downtown Center Business Improvement District I 2018 Annual Report FINANCIALS Statement of activity (For the Year Ending December 31, 2018)
REVENUES EXPENSES
Community Service Other Income Maintenance 3.4% Destination 0.3% 25.2% Marketing 11.7%
Economic Public Safety Development Assessment Revenues 29.0% 12.7% 99.7% Administration 18.0%
Assessment Revenues $6,685,402 Total Revenue $6,706,951 Other Income $21,549 Total Expenses $6,453,060 Total Revenue $6,706,951 Increase in Net Assets $253,891
$1.48 M YEAR-END NET ASSETS
2018 Annual Report I Downtown Center Business Improvement District 35 FINANCIALS
DCBID ASSESSMENT REVENUES 2018 VS. 2017 2018 $6.7 M 2017 $6.3 M
DCBID PROGRAM EXPENSES BREAKDOWN 2018 VS. 2017
PUBLIC SAFETY
$1,876,632
$1,839,694
MAINTENANCE
$1,627,406
$1,534,742
COMMUNITY SERVICE
$216,965
$214,139
DESTINATION MARKETING
$752,864
$808,053
ECONOMIC DEVELOPMENT
$816,866
$733,086
ADMINISTRATION
$1,162,327
$1,417,199
36 Downtown Center Business Improvement District I 2018 Annual Report TALK OF THE TOWN
THE BEST PLACES TO TRAVEL IN SEPTEMBER August 2018 “We focus here on the city’s downtown area which is evolving from just a “place to work during the day” to the lively “DTLA” with top restaurants, hotels, theaters, entertainment venues, and cultural sites. Dining in L.A. is reason alone to visit, but there’s a lot more.” — Travel and Leisure
FINDING YOURSELF IN LOS ANGELES July 2018 “Downtown Los Angeles, or “DTLA,” as it is now referred to in real estate literature, is an uncanny place. Walking around, I was constantly plagued by a feeling of déjà vu, perhaps because, as Thom Anderson points out in his documentary “Los Angeles Plays Itself,” this downtown has stood in for so many other downtowns on the silver screen that it has become a kind of everyplace.” — NY Times
LOS ANGELES IS (FINALLY) THE FIFTH FASHION CAPITAL June 2018 “As a steady stream of big-name designers lay down roots in the city, LA feels increasingly essential to the global fashion business.” — Business of Fashion
DOWNTOWN PROJECTS WIN ARCHITECTURE AWARDS June 2018 “The Los Angeles Business Council named its annual Architectural Awards winners this month, and 11 projects in Downtown Los Angeles were among the 54 honored.” — Downtown News
DOWNTOWN LA IS A HOTBED OF GREAT NEW HOTEL DESIGN April 2018 “Downtown Los Angeles is undergoing something of a renaissance. Once a haven of entertainment and retail, the area went into decline, but is now on the up again thanks to a swathe of new hotel development.” — Hospitality.net
2018 Annual Report I Downtown Center Business Improvement District 37 LOOKING TOWARDS 2019 High standards for the coming year Our organization continues to play a vital leadership role in the resurgence of Downtown LA. DCBID’s efforts in 2019 will focus on the following: OPERATIONS Continuing a high standard for Maintenance and Safety services and developing and maintaining strong partnerships with stakeholders and residents. ECONOMIC DEVELOPMENT Promoting growth in 5 key sectors (office, retail, residential, arts and culture, and hospitality and nightlife) and being the #1 resource for DTLA investment research and tours. MARKETING Promoting DTLA as a world- class destination for residents, workers, visitors, and businesses using targeted communications and direct engagement of local, regional, and national audiences in each sector.
38 Downtown Center Business Improvement District I 2018 Annual Report BOARD OF DIRECTORS
EXECUTIVE OFFICERS Robert Hanasab Robert Cushman, Chair Robhana Group Inc. Brookfield Steven Hathaway Cari Wolk, Past Chair The Los Angeles Athletic Club Athena Parking, Inc. Stacy Lieberman Eric Bender, Secretary The Broad Downtown Properties Joan McLane Sauli Danpour, Treasurer USC Institute of Urlogy Xyvest Holdings, Inc. Robert Morgan Barry Altshuler, Executive Vice Chair Coretrust Capital Partners, LLC Equity Residential Stuart Morkun Peklar Pilavjian, Executive Vice Chair Mitsui Fudosan America, Inc. Los Angeles United Investment Co. S. Chris Park Suzanne Holley, President & CEO Hanjin International Corp. Downtown Center BID Ken Pilgrim BOARD MEMBERS The Westin Bonaventure Hotel and Suites Barbara Bundy FIDM Helen Simmons Omni Los Angeles Hotel Carl Cade Tribune Real Estate Holding Mark Spector Onni Group Dan Cote The Bloc ALTERNATES Evan Grobecker Travis Addison CommonWealth Partners CommonWealth Partners Simon Ha Peter Zen Steinberg The Westin Bonaventure Hotel and Suites
DCBID STAFF Suzanne Holley Eric Davis President & CEO Vice President of Operations Nick Griffin Mike Filson Executive Director Director of Community Relations Michael Ashkenasi Elan Shore Marketing & Economic Development Manager Director, Research and Special Projects Kevin Begovich Kevin Thomas Art Director Executive Assistant Steph Bernstein Jaqueline Vaughn Director of Administration VP of Marketing & Communications Jorge Castro Associate Director of Operations As of April 11, 2018
2018 Annual Report I Downtown Center Business Improvement District 39 600 Wilshire Blvd., Suite 870 Los Angeles, CA 90017 P: 213 624 2146 | F: 213 624 0858 DowntownLA.com Digital download available at DowntownLA.com/Annual18
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PHOTO: TYLER NIX/UNSPLASH 40 Downtown Center Business Improvement District I 2018 Annual Report