Santa Monica’s Week In Business

Michael Rosenthal

   Despite rising commercial property vacancy rates, Santa Monica is often considered a “good bet” for long term property values, particularly on the residential side, where values are predicted to rise 5% this next year. One of the state’s largest pension funds just acquired a newly-built apartment complex in the Sleek Precinct of Eastern Santa Monica. CalSTRS, the California State Teachers Retirement System, acquired the Plaza at the Arboretum with an initial down payment of $76 million. The 351-unit complex is sandwiched between two commercial properties with a large parking garage directly behind it. The reported price is close to $216,000 a unit, with apartments renting for $1,655-$2,890 a month. Foster City-based Legacy Partners is the seller. They will continue to manage and lease the property.
   Imagine a major freeway is damaged in an earthquake causing a detour for millions of auto commuters daily. When this happened to the Santa Monica Freeway during the Northridge earthquake, the State of California put out an emergency contract with bonus provisions for early completion. The contractor worked 24/7 and replaced an entire freeway section within 60 days. Compare this with our Pacific Coast Highway Sewer Replacement project, now in its third year of aggravating delays on what most consider to be a MAJOR vehicular artery for the west side of Los Angeles, including Santa Monica, the Palisades, Malibu and many West Valley commuters. The difference is that authority was ceded to the City of Santa Monica, which is overseeing this project. Sheila Kuehl, when she was our State Assembly member, headed the PCH task force. Kuehl is an excellent public servant, but this time she mistakenly put her trust in Santa Monica officials who first sold the project as an earthquake repair, but later admitted that there was no visible damage to the lines. The earthquake rap was basically designed to squeeze out FEMA money. The project is designed to increase capacity of the sewer line heading south from Los Angeles though no new major developments are planned. An alternative site for the line was suggested that would have been far less expensive and much less difficult, but City engineers refused to consult with politicians and proceeded to dig up PCH, claiming the project would take under a year. Three years later, there is still no sign of a work schedule compelling the contractor to work round-the-clock shifts. Instead our major coastal artery has been relegated to a drivers’ hell.
   The Santa Monica Mirror has formally asked Santa Monica officials to put out to bid City public notice advertising as is required by Section 6.09 of the municipal code. No response has been forthcoming and the City continues to pour money into the coffers of the Tribune Company (owner of the Los Angeles Times), to the tune of about $125,000 yearly. I was speaking with a top elected official about the benefits of advertising in the local media, when he told me he had no time to discuss it he was on his way to a photo shoot promoting the City’s campaign to shop locally. I wonder if he saw the irony in that?
   Santa Monica public company, National Golf Properties, the nation’s largest owner of golf courses, has announced it is suspending dividend payments. Since August shares in the company have plummeted 62%, primarily due to troubles with the firm managing most of their 137 courses, American Golf Corp, which may be unable to pay its rent due to a reported drop in business.
   Santa Monica-based MGM has promoted Darcie Denkert to president of MGM Entertainment Business Group, a newly formed group with responsibility for the company’s worldwide entertainment and business affairs with a focus on leveraging the film and television library. Jonathon Bader has been promoted to executive vice president of business affairs at MGM Pictures.
   Santa Monica-based Reunion.com, the Internet’s second largest alumni website with over 7 million registered users, announced the acquisition of the PlanetAlumni.com database, containing over 1.4 million members.
   LowerMyBills.com of Santa Monica has appointed Hal Muchnick as executive vice president and general manager, managing day-to-day operations.
   Santa Monica’s Converge Global, Inc. announced that TeleWrx, Inc., its proposed merger partner, has Robert Brown and Donald A. Smiley joining Michael Brown, the President of TeleWrx, on the Board of Directors. From 1994 to 1998, Smiley served as President of the Florida Marlins. He also served as Marketing Director for Huizenga Holdings, Inc. and then Blockbuster Entertainment Corp., where he headed and developed many of its successful divisions including franchising, marketing, advertising, real estate, merchandising, Internet development, as well as being assistant to the Chairman, Wayne Huizenga. For over 33 years, Robert Brown represented the various magazines of the Petersen Publishing Company. Having served in many capacities, he is best-known as the Publisher of Motor Trend Magazine. As Senior Vice President, he was in charge of 20-plus magazines, including Motor Trend, Hot Rod, Sport, Guns & Ammo, Photographic, Skin Diver, Four Wheel & Off-Road, and Teen. Mr. Brown, with over 45 years of marketing experience, enjoys consulting for Fortune 500 companies today.
   Santa Monica-based Business.com has entered an agreement with BusinessWeek Online to provide its business Internet search results to BusinessWeek Online’s 1.5 million users. Business.com’s search functionality, which includes both Standard Listings (pay-for-inclusion) and Featured Listings (pay-for-placement), gives users access to more than 400,000 business-focused listings in 25,000 categories. All listings undergo a rigorous editorial review to ensure their quality for inclusion and relevant placement in the Business.com directory. As part of the distribution agreement, Business.com will provide its self-service listings sales platform to BusinessWeek Online and will share the listings revenue generated from the site. Said Jake Winebaum, founder and chief executive officer, Business.com, “The addition of BusinessWeek Online to the Business.com Network marks another important step forward in our strategy to partner with the world’s leading business Web sites. Further, it underscores our belief that joining Business.com Network is the fastest and most effective way for business Web sites to add business search functionality to their sites.” Added Brett Zickerman, Vice President of Business Development, BusinessWeek Online, “BusinessWeek Online is always looking for ways to improve our offering, and the quality of the Business.com directory and its exclusive focus on business make it a terrific match for us. By adding the Business.com search results throughout BusinessWeek Online, we’ve made a significant enhancement to our site and user experience.”
   Santa Barbara-based One Beach Road closed its store at 335 Wilshire Blvd. on Saturday, The company continues to operate its furniture stores in Santa Barbara, Palm Desert and Palm Springs.
   Happy anniversary to the Tegner-Miller Insurance company. The firm is celebrating 100 years of continuous operation in Santa Monica. It has been a member of the Santa Monica Chamber of Commerce since 1926.