ANNUAL REPORT - Downtown LA · Downtown Center Business Improvement District I 2015 Annual Report 3 We are pleased to once again share with you ... The Future of Urban Retail –

ANNUAL REPORT

Downtown Center Business Improvement District

Breaking New Ground

2 2015 Annual Report I Downtown Center Business Improvement District

Downtown Center Business Improvement District I 2015 Annual Report 3

We are pleased to once again share with you the Downtown Center Business Improvement District’s (DCBID) Annual Report, outlining the accomplishments of 2015. This year marks our 18th year in operation and the 17th year of the burgeoning Downtown Los Angeles Renaissance.

2015 got off to a strong start with the launch of the DCBID’s Get Urban initiative. The program encourages leasing of office space by educating brokers and prospective tenants on the assets and advantages of Downtown LA.

Capitalizing on the momentum of the opening of Whole Foods and pending opening of The BLOC, the Economic Development team produced DTLA: The Future of Urban Retail – a 28-page report on Downtown retail released in November at a full-day conference attended by over 400 retail and real estate professionals from across the country.

The DCBID continues to be the hub for data and research on Downtown LA. In addition to our quarterly Market Reports, we conducted the 2015 Survey of Downtown Residents and Workers and managed production of The Downtown Los Angeles Renaissance: Economic Impact & Trends, a report by Beacon Economics. Both reports were released in January 2016.

With the steadfast goal of driving traffic to Downtown businesses and events, we launched a new, mobile-responsive website in November. The new website features an improved user-experience, interactive maps, investor tools, business directories, enhanced events calendar, and more.

The DCBID also commenced a rebrand project which includes a new logo and visual system, to be completed in 2016. The rebrand will enhance marketing initiatives that promote Downtown LA, and ultimately increase the value of your properties.

The “Purple Patrol” continued to maintain safety and cleanliness by installing 18 new Bigbelly ‘smart’ trash cans, trimming 295 trees, and responding to 125,373 incidents and 24,838 calls for service. Our Downtown Guides assisted thousands of employees, residents, visitors, and businesses.

In 2015, a contract was developed and executed with PATH (People Assisting the Homeless) to provide a full-time, on-the-street, mobile outreach team to connect the homeless within the DCBID with much needed services including permanent housing, mental health and wellness services, and to provide training and education to DCBID Security and Maintenance teams.

The eyes of the art world were on Downtown LA on September 20th as The Broad lifted its veil and began welcoming visitors (free of charge) to view the personal art collection of Eli and Edythe Broad.

The DCBID remains the number one Los Angeles-based BID by budget and has set ambitious goals for 2016, including the launch of a new visitor kiosk at the U.S. Bank Tower and a robust Arts & Culture initiative.

Thank you for your continued dedication. With your support, we will continue to break new ground to realize the true potential of Downtown LA.

Sincerely,

Peklar Pilavjian2015 Chairperson, Los Angeles United Investment Company

Carol E. SchatzPresident & CEO

DEAR DOWNTOWN STAKEHOLDER


Thirteen Projects, Nineteen Cranes, One Massive Photo. Stunning shot of Downtown’s crane-filled skyline puts the scope of construction boom in perspective.” – urbanize.LA

PHOTO BY HUNTER KERHART



10,170 RESIDENTIAL UNITS

UNDER CONSTRUCTION


DTLA BY THE NUMBERS

Population Growth

18,70060,618

2015

1999

Residential Units

Average Condo Price per Sq. Ft.

11,62635,449

2015

$169$605

2015

Property Value

1999 1999

$4.8 billion

$13.6 billion1999

2015

New restaurants, bars, retail, nightlife, and amenities 2008–2015

OPEN FOR BUSINESS

800+

A VIBRANT COMMUNITY$98,000 average median household income of residents

66% of residents are between the ages of 23–44

79% of residents have earned a college degree or higher

500,000+ weekday population

19 million annual visitors

Hotel Rooms

8,163 Current Inventory

2,515 Under Construction

2,876 Pipeline

Residential Units

35,449 Current Inventory

10,170 Under Construction

15,334 Pipeline

CONTINUED GROWTH


Safe and clean streets are the foundation of a vibrant downtown. The DCBID’s Safe and Clean team is proudly committed to assisting those who live, work, and play in the district. This highly visible, well-trained staff of purple-shirted safety officers and maintenance personnel continues to provide daily, 24-hour supplemental services to maintain safety and cleanliness within the district. In 2015, the team responded to 125,373 incidents and 24,838 calls for service. The DCBID’s specially trained BID A.C.T.I.O.N. team provided assistance to the homeless community, working closely with service providers.

SAFETYAs city resources diminish, the role of the DCBID’s safety services becomes more important. To better serve the District, we provided advanced training and technical support for our safety team. Additionally, we continued to adjust patrols to address special needs in the District as identified by the Computer-Aided Dispatch (CAD) system and safety observations. The DCBID continued to champion strong working relationships with the City and County of Los Angeles.

Safety Team Statistics24,838 calls for service, a 61% decrease from 2014

125,373 incidents, a 7.5% decrease from 2014

Out of all incidents, 45 resulted in arrests for misdemeanor or felony crimes

CLEANLINESS On a daily basis, the members of the DCBID’s Clean Team worked to remove graffiti, discard trash, and sweep sidewalks.

Clean Team Statistics53,088 bags of trash removed from over 250 DCBID owned receptacles

1,224 instances of graffiti removed

4,339 sidewalk wash-downs conducted

52,338 hours spent on cleaning the district

OPERATIONSKEEPING DOWNTOWN SAFE AND CLEAN


There was a 7.5% decrease in incidents from 2014


OPERATIONS

BIGBELLY EXPANSIONThe DCBID completed its phase 2 installation of Bigbelly solar waste bins in Summer 2015. Bigbelly solar bins offer a modern solution for waste collection as they are entirely solar powered and equipped with GPS units and usage meters for remote waste management. We replaced 18 aged DCBID owned receptacles with modern Bigbelly solar powered stations that are branded with the DCBID logo and colors. The new stations were placed along Hill St., Grand Ave., and 9th St. Utilization of these “smart” stations led to an increased collection efficiency of 60% which allows operations staff to focus manpower on other maintenance initiatives.

TREE TRIMMING CONTINUES2015 marked the second year of the DCBID’s five year tree trimming cycle. The 2015 schedule was completed on July 28th. Approximately 295 trees were trimmed in the year, brightening and improving the cleanliness of sidewalks within the district. Since the DCBID began tree trimming services in 2014, we have facilitated the trimming of over 550 trees in the district.


BID A.C.T.I.O.N. TEAM & PATH PARTNERSHIPOn October 1st, the DCBID commenced a partnership with PATH (People Assisting the Homeless) to provide a full-time mobile outreach team to the streets of our district. This new partnership expands upon the efforts of the DCBID’s specially trained BID A.C.T.I.O.N. Team, which over the past 14 years has assisted the Downtown homeless community with a variety of services including providing housing, clothing, blankets, transportation, medical services, bus tokens, and assistance with entry into rehabilitation programs.

Working together with PATH provides the DCBID an opportunity to leverage their 30-years of experience in assisting the homeless and allows us to seamlessly increase both our outreach efforts and the types and number of services we can offer

to Downtown’s homeless population. PATH services include access to permanent housing, mental health and wellness services, and training and education for DCBID Security and Maintenance teams. During their first three months in our district, the team made contact with 246 individuals and linked 62 individuals to needed services.

BID A.C.T.I.O.N. StatisticsProvided services to 115 individuals

Placed 5 individuals in housing or drug and alcohol

rehabilitation programs

Made contact with 24 new individuals

Followed up with 2,896 individuals the DCBID

had previously contacted

Jan-Sept, 2015 prior to PATH partnership


52,338 hours spent cleaning

the district

DCBID COMPLETES 17th YEAR OF ONGOING PARTNERSHIP WITH CHRYSALISThe sidewalks and streets of the DCBID are maintained by our “Clean Team”. The Clean Team is staffed through Chrysalis, a nonprofit organization focused on creating a pathway to self-sufficiency for homeless and low income individuals by providing the resources and support needed to find and retain employment.The DCBID has been partnering with Chrysalis since 1998, providing homeless and low-income individuals with the skills, experience and self-confidence needed to secure permanent employment. The Downtown Center Business Improvement District was the first BID to staff its Clean Team through Chrysalis. Since its inception, our partnership has provided life changing opportunities to over 1,500 individuals.


Clean Team Marlon Anderson continually displays a strong willingness to learn and grow. He shows initiative by sharing his knowledge and training with his co-workers and always extends a helping hand along the way.

Clean TeamDonell Antoine arrives for work ready for the day. He takes initiative and is a team player. He often leads by example, assists with the training of his co-workers, and is respected by his colleagues.

Safety TeamOfficer Edward Araujo consistently displays outstanding professionalism. As a classroom instructor, he trains all new Safety Officers and prepares candidates to meet the DCBID standards and expectations.

Clean Team John Daly is very responsive to guidance that is given to him while showing an eagerness to learn. He is a dedicated employee, and goes above and beyond his duties to assist citizens in Downtown LA.

Safety TeamCorporal Taylor Devin is committed to leading by example and possesses the traits of an exemplary Field Training Officer. His trainees have proven to perform at high levels after their preparation is complete.

Safety TeamOfficer Daniel Guevara demonstrates hard work and dedication. During his tenure he has assumed additional responsibilities as a Dispatcher and member of the DCBID Homeless Outreach team.

Guide TeamRuiz Milagros arrives at work with an infectious smile and positive attitude. She has extensive knowledge of Downtown, from transit and attractions to shopping and dining.

Clean TeamTracy Salter exemplifies a highly efficient, observant and motivated work ethic. He takes initiative and is always very professional when representing the DCBID and Chrysalis.

Safety TeamOfficer Joshua Sanchez serves the area he patrols by taking a proactive approach. In Q4, Sanchez responded to and observed over 6,000 service requests. He consistently takes extra time to assist his fellow co-workers.

Guide TeamAlexis Trevino leads by example. She takes on extra responsibility without hesitation and is exemplary in carrying out those duties. She was promoted to Lead Ambassador in 2015.

Guide TeamShekaca Washington always does her best to assist the people of Downtown. She can frequently be seen giving directions and guidance, always pointing individuals in the right direction.

TEAM MEMBERS OF THE YEAR Each quarter, the DCBID recognizes Safe and Clean team members and Ambassadors who have gone above and beyond the call of duty.


ECONOMIC DEVELOPMENTThe DCBID economic development team continued to play a lead role in the growth of Downtown LA through its outreach to investors and developers, and its tours for prospective residents and tenants. We continue to be the main hub for data and research on DTLA, responding to hundreds of requests for information as well as issuing industry standard quarterly Market Reports, our biennial Survey of Downtown Residents and Workers, and The Downtown Los Angeles Renaissance: Economic Impact & Trends Report. For the office sector, we launched the Get Urban office recruitment program and for the retail sector we produced the DTLA: The Future of Urban Retail report and conference.

BRINGING INVESTMENT TO DOWNTOWN

INVESTMENT IN DOWNTOWN LA 1999–2015

$1,490,000,000

$4,010,000,000

$1,220,000,000

$6,760,000,000

$9,430,000,000

$1,500,000,000

Arts & Entertainment

Figueroa Corridor/ Expo Park

Civic & Institutional

Commercial

Mixed-Use

Residential

1 billion


$24,400,600,000 TOTAL INVESTMENT IN DOWNTOWN LA 1999–2015


2,368,279 TOTAL SQUARE FEET LEASED

SIGNIFICANT COMMERCIAL SALES 2015ASSET ADDRESS BUYER BUILDING SQ FT PRICE PER SQ FT

The Roosevelt 727 W 7th St. The Blackstone Group LP 332,832 $294.44

8th+Hope 801 S Hope St. Essex Property Trust, Inc. 300,000 $666.67

PacMutual 523 W 6th St. Ivanhoe Cambridge, Inc. 446,023 $448.41

One Bunker Hill 601 W 5th St. Rising Realty Partners 272,600 $337.49

Figueroa Courtyard 221 S Figueroa St. Rising Realty Partners 274,645 $306.01

800 Wilshire Tower 800 Wilshire Blvd. Onni Group 226,797 $358.25

Giannini Place 649 S Olive St. The Sydell Group 146,340 $268.21

International Jewelry Mart 410-418 W 7th St. Atlas Capital Group, LLC 43,978 $334.26

YEAR DIRECT VACANCY DIRECT AVERAGE RENT PER SQ FT

2015 18.2% $37.44

2014 19.4% $36.48

2013 20.7% $36.02

2012 20.0% $35.79

2011 18.6% $35.67

2010 16.7% $35.40

2009 15.3% $36.77

2008 12.5% $38.64

2007 12.3% $36.37

2006 13.8% $31.65

2005 11.2% $28.05

2004 14.2% $26.88

2003 14.4% $26.22

2002 15.2% $25.53

2001 12.9% $24.84

2000 16.0% $23.40

1999 14.2% $23.04

OFFICE VACANCY & RENT TRENDS

223.65%TOTAL PROPERTY VALUE

INCREASE 1997–2015

COMMERCIAL MARKET OVERVIEWIn 2015, 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.


1997 $4,211,364,587

1998 $4,480,598,392

2000 $5,025,431,988

2001 $5,260,525,694

2002 $5,544,496,087

2003 $5,688,391,189

2004 $6,045,596,904

2006 $7,853,144,506

2007 $8,695,487,916

2008 $9,301,781,581

2010 $8,851,402,207

2011 $9,030,845,311

1999 $4,838,421,305

2005 $7,002,900,943

2009 $9,326,410,136

2012 $9,213,781,118

2013 $10,580,625,175

2014 $11,086,749,184

6.39%

7.99%

3.87%

4.68%

5.40%

2.60%

6.28%

15.83%

12.14%

10.73%

6.97%

0.26%

-5.09%

2.03%

2.03%

14.8%

4.78%

2015 $13,626,273,158 22.91%

15 billionPROPERTY VALUES 1997–2015

22.91%PROPERTY VALUE

INCREASE 2014–2015


SIGNIFICANT OFFICE LEASES 2015

TENANT BUILDING ADDRESS SQ FT

Capital Group Bank of America Plaza 333 S. Hope St. 323,000

Munger, Tolles & Olson 350 Grand 350 S Grand Ave. 150,500

City of Los Angeles 350 Grand 350 S Grand Ave. 115,591

AECOM One California Plaza 555 W 5th St. 112,525

WeWork The Gas Company Tower 605 S Olive St. 93,464

Los Angeles Immigration Court City National Bank 865 S Figueroa St. 72,210

Allen Matkins 865 South Figueroa 865 S Figueroa St. 44,248

DLR The BLOC 700 S Flower St. 35,362

Cross Campus 800 Wilshire 800 Wilshire Blvd. 27,272

Boston Consulting Group City National Plaza 515 S Flower St. 27,133

WeWork space in The Gas Company Tower


YEAR PRICE PER SQ FTCHANGE FROM PREVIOUS YEAR

2015 $605.16 9.5%

2014 $563.23 15.40%

2013 $487.89 30.5%

2012 $373.78 16.7%

2011 $320.39 -2.8%

2010 $329.58 -3.2%

2009 $340.31 -28.4%

2008 $475.49 -9.9%

2007 $527.54 -5.6%

2006 $559.09 20.9%

2005 $462.51 18.8%

2004 $389.29 41.3%

2003 $275.59 25.4%

2002 $219.78 14.8%

2001 $191.44 13.5%

2000 $168.61 N/A

AVERAGE CONDO SALES 2000–2015

RESIDENTIAL MARKET OVERVIEWThe residential sector held strong in 2015, and we supported both sides of the market – providing information and consulting services to investors and developers and touring prospective residents and brokers through existing properties and new projects on our monthly housing tours. Over 10,170 residential units were under construction, including some of the largest developments in Downtown LA’s history, such as the $1B Metropolis project, with 1,000+ condos, hotel, and retail.

95%DOWNTOWN RESIDENTIAL

OCCUPANCY RATE

15,334PROPOSED

UNITS

10,170UNITS UNDER

CONSTRUCTION


RETAIL & HOTEL MARKET OVERVIEWRetail, Restaurants, Nightlife, Hotels, and Amenities 2015 was a banner year for retail and hospitality, with 2 million square feet of retail space and 2,500 hotel rooms under construction. Showcase openings included Whole Foods and Burlington Coat Factory. Hospitality highlights included the Sydell Group’s purchase of Giannini Place, to be transformed under the Nomad Hotel brand, and the announcement of a major expansion of the JW Marriott by AEG. 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 roundtable meetings.

Little Sister

800 Degrees Pizzeria

ediBOL

Pitchoun Bakery

Burlington Coat Factory

A.P.C. Boutique

Floyd's Barbershop

Please Do Not Enter

Otium

American Tea Room

Fogo De Chao

Public School 213

GROW Market

Groundwork Coffee Co

Redbird

Cento Pasta Bar

Barrel Down

Rice Bar

Chego

Bierbiesl

Jason Markk Flagship Store

Shiekh Shoes

Whole Foods

Bombo

Jersey Mikes

Sparkle Factory

H.D. Buttercup

Broken Spanish

Le Petit Paris

Tabachines Cocina

Arts District Brewing Co

BS Taqueria

Liberty Travel

The Little Easy

Verve Coffee Roasters

Café Gratitude

Malin + Goetz

Tione's On Main

Vespaio

Clifton's Cafeteria

Mixabowl

Triple 8

Wittmore

District

Philz Coffee

Uptown Pup

NOTABLE RETAIL OPENINGS IN 2015


BID RESEARCH & REPORTSThe DCBID is a one-stop shop for market information and research for Downtown LA. In 2015, our research department responded to hundreds of requests for market information from developers, brokers, appraisers, bankers, businesses, media, community members, and other stakeholders. These efforts continue to be instrumental in recruiting businesses and investment to Downtown LA.

MARKET REPORTSOur Quarterly and Year-End Market Reports provide a comprehensive overview of the state of commercial, residential, and retail real estate for all of Downtown. They also include updates on newly proposed and under construction projects.

THE DOWNTOWN LOS ANGELES RENAISSANCE: ECONOMIC IMPACTS AND TRENDSThe DCBID commissioned a report from Beacon Economics, quantifying the impact of the Downtown Renaissance on the City of Los Angeles. The report was released in January, 2016.

2015 DOWNTOWN SURVEY REPORTThe DCBID conducted its biennial survey of Downtown residents, workers, and visitors. The resulting report was produced, marketed and distributed in January, 2016.



GET URBAN CREATIVE/TECH OFFICE RECRUITMENT PROGRAMThe Economic Development team launched Get Urban, our creative/tech office recruitment initiative, in Q1. The program is designed to encourage leasing of office space by educating brokers and prospective tenants on the assets and advantages of Downtown LA. The program’s main components include a 16-page glossy brochure covering the benefits of doing business downtown and a monthly bus tour of Downtown’s eclectic neighborhoods, creative work environments, arts, culture, retail, and residential opportunities. The team led 7 tours in 2015, hosting 200 attendees, and showcasing two dozen Downtown companies in 20 commercial office buildings. The Get Urban brochure has been distributed in printed and digital form to thousands of local, regional and national businesses, brokers, and other real estate professionals.For more information, visit DowntownLA.com/GetUrban

START-UPS IN THE SKYAs part of the Get Urban initiative, the team helped launch a new monthly mixer series, co-produced with Tech Rise, bringing together the tech and creative communities and showcasing the DCBID’s premier office buildings.For more information, visit sits.la


REPORT & CONFERENCE In Q4, the economic development team produced DTLA: The Future of Urban Retail – a 28-page report released at a high-profile full-day conference attended by over 400 retail and real estate professionals from across the country.

Timed to coincide with the opening of Whole Foods, the event featured a breakfast panel discussion with an all-star line-up of industry leaders hosted by The BLOC, a luncheon sponsored by Brookfield Properties, a tour of DTLA’s retail highlights, and a reception hosted by AEG/LA LIVE and the M2K Group.

The report was marketed with an initial print run of 1,000 and digital distribution to over 5,000 targeted industry recipients. The event and report generated significant media coverage and follow-up inquiries from prospective retail tenants.

For more information, visit DowntownLA.com/DTLAretail2015

DTLA: THE FUTURE OF URBAN RETAIL


HOUSING TOURSIn 2015, over 400 people attended our monthly Downtown Housing Tours showcasing DTLA’s unique attractions and amenities, and residential living opportunities, including both for-lease and for-sale developments. The tours were fully booked throughout the year, demonstrating the continued strength and appeal of the Downtown residential market.

OUTREACH, RECRUITMENT & CONSULTING SERVICESTo 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

CONFERENCES & EVENTSIn addition, we continued to participate in the following conferences and events:• International Council of Shopping Centers Conference• International Downtown Association Annual Conference• Los Angeles BID Consortium Monthly Meetings• CoreNet Global Office Conference• Southern California Development Forum• Connect Media• Bisnow• Disrupt CRE• Tech Day LA• LA Innovation Week• Los Angeles Global Tech Summit• Silicon Beach Fest Downtown LA

BID BUSINESS SERVICES



RESIDENT MIXER SERIESAs part of our community outreach, the DCBID produced two Resident Mixers in 2015. We invited all 28 buildings located within DCBID boundaries. Residents enjoyed appetizers, a no host bar, and a presentation on DCBID programs, services, and staff. Our summer mixer was held at Border Grill with 40 residents in attendance. The Holiday Resident Mixer was held at Barrel Down where we hosted nearly 100 residents. We distributed magnets printed with the DCBID Service Center 24/7 Hotline at both events.

16th ANNUAL PUBLIC SAFETY APPRECIATION BBQThe DCBID hosted its annual community BBQ on Thursday, October 15th to acknowledge the law enforcement and public safety personnel who make Downtown LA a vital and safe community. Los Angeles Police Department Captain Mike Oreb, Sara Hernandez from the Office of Councilmember Jose Huizar, Assemblyman Miguel Santiago, and Los Angeles Fire Department Chief Robert Fligiel were among the 1,000 guests who attended the event at the Bank of America Plaza. Guests enjoyed a barbeque lunch by Rosie’s Catering, live music, and giveaways. Proceeds in the amount of $5,000 went to the Los Angeles Police Memorial Foundation.

8th ANNUAL HALLOWEEN PARTY FOR DOWNTOWN L.A. KIDSOn the evening of Friday, October 31, more than 1,900 children and their parents attended our 8th Annual Halloween Party at Grand Hope Park at the Fashion Institute of Design & Merchandising (FIDM). Major attractions included several bouncy houses, puppet shows, arts and craft tables, photo booths, and trick-or-treat doors. Ralph’s Fresh Fare generously donated hot dogs, candy, and other treats.

9th ANNUAL DOG DAY AFTERNOON AT THE CATHEDRAL On the afternoon of July 8th, 1,600 people and 1,000 dogs filled the 2.5-acre plaza at the Cathedral of Our Lady of the Angels for a community-building event celebrating Downtown dogs. Dogs of all breeds and their owners enjoyed music, mingling, meeting over 20 pet-related vendors, giveaways and great food by Levy Restaurants. The DCBID honored Monsignor Kevin Kostelnik and Hal Bastian for their continued support of Downtown LA and the event.

BUILDING COMMUNITY

BID EVENTS


MARKE TINGENGAGING CONSUMERS WITH DOWNTOWN

The marketing department implemented strategic programs that created awareness and drove traffic to Downtown businesses and events in 2015. We promoted thousands of businesses, events, and programs on our website, DowntownLA.com, and used social media to increase exposure for our website content. Our website, the go-to resource for all who live, work, and play in Downtown had over 1.5MM page views and 500k users. We increased our social media by an average of 70% across Facebook, Twitter, and Instagram. Our email newsletter continued to reach tens of thousands of subscribers each month with an average open rate of 23%. Our summer, holiday and Influencer marketing campaigns promoted Downtown LA with curated guides and useful content that generated renewed awareness to the area.

DCBID WEBSITE1,516,283 page views

502,549 users

36,070 email subscribers

23% email open rate (above industry avg.)

DCBID SOCIAL MEDIA30,238 Facebook fans; up 37% from 2014

33,700 Twitter followers; up 34% from 2014

5,055 Instagram followers; up 140% from 2014



MARKETING

MEDIA COVERAGEDCBID 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 including KTTV, KTLA, KABC7, and KPPC.

WELCOME MAPSThe DCBID distributed approximately 350,000 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.

NEWSLETTERSQuarterly District NewsThe DCBID published and mailed four quarterly newsletters to all property owners within the district. The District News newsletters 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” email list received monthly newsletters that highlighted new businesses, events, seasonal marketing campaigns, and exclusive specials. The emails had an average 23% open rate, exceeding the 17.1% industry standard.

350,000 DOWNTOWN LA MAPS DISTRIBUTED


WHY EVERYONE SHOULD STAY IN DOWNTOWN L.A. September 2015“Thanks to an influx of exciting restaurants and bars, as well as the arrival of L.A. Live, Downtown L.A., affectionately called DTLA, is becoming a must-visit neighborhood in Los Angeles, even for Angelenos.” - Condé Nast Traveler

IN DOWNTOWN LOS ANGELES, A POTENTIAL ANCHOR FOR OFFICES November 2015“The more vibrant downtown becomes, the more it will attract other office users. People like to be in an area that is exploding, there’s a dynamism you feel, it’s palpable.” - Carol Schatz, New York Times

DOWNTOWN L.A.’S BECOME A FASHION SCENE IN WHICH TO BE SEEN October 2015“The established and coming new fashion businesses in downtown will work to maintain and enhance L.A.’s identity as the ‘Fashion Capital of the West.’” - Women’s Wear Daily

L.A. AND ITS BOOMING CREATIVE CLASS LURES NEW YORKERS May 2015 “Long a gritty urban backwater, Downtown has become a trend factory, brimming with Beaux-Arts loft condos, galleries, groundbreaking restaurants like Baco Mercat and, inevitably, a new Ace Hotel to serve as “Portlandia” south.” - New York Times

THINGS ARE LOOKING UP FOR DOWNTOWN LOS ANGELES October 2015“This renaissance is catching the attention of investors from around the globe who are committing billions of dollars to some of the largest developments ever in Downtown LA, including some much needed retail space.” - Chain Store Age

TALK OF THE TOWN


MARKETING

ADVERTISING CAMPAIGNSSummer in the CityDowntown LA is more active than ever in the summer months. Our Summer campaign promoted DTLA as a destination for outdoor concerts, movies, and special events with a curated guide at DowntownLA.com/Summer. The guide highlighted major event series and included recommendations for dining, shopping, and things to do before and after each event. 2015 featured listings included: • FIGat7th Downtown Festival • Friday Night Flicks at Pershing Square • Downtown Stage at Pershing Square • Grand Performances • Grand Park Summer • Dance Downtown at The Music Center Our marketing campaign included a strategic mix of online, print, radio, and social media advertising with street team marketing.

Celebrate the Holidays in Downtown LAThe DCBID launched its “Celebrate the Holidays in Downtown LA” campaign from November 23rd through December. 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 Odd Market, L.A. Master Chorale concerts at Walt Disney Concert Hall, the Millennium Biltmore Tree Lighting Ceremony, and more. The campaign was advertised in the LA Downtown News, WHERE LA, KCRW, KOST, iHeartRadio, social media, and DowntownLA.com.


The New DowntownLA.comThe redesigned DowntownLA.com website was unveiled on November 23rd. The website launched with a fresh design, interactive maps, business directories, event calendars, research data, and much more. Having undergone its first major upgrade since 2009, DowntownLA.com was completely rebuilt from the ground up and features a new streamlined and responsive user interface that scales perfectly to mobile devices, making the site easily accessible from anywhere. The website launch was promoted with social media advertising, email marketing, and print ads.

Social Media Influencer CampaignThe DCBID launched an influencer marketing campaign in November to promote unique afternoon itineraries within our district. We selected four influential social media personalities to follow curated itineraries and share their experience with their audience. The themed itineraries included stops at Please Do Not Enter, Seven Grand, Bottega Louie, Pitchoun Bakery, Barrel Down, Brigade LA, and more. Each influencer shared their experience via Instagram posts, a Snapchat story, and a blog post reviewing their afternoon in Downtown LA. The program generated over 2MM impressions for 15 businesses in the Central Business District.


DOWNTOWN GUIDESPROVIDING A WARM AND HELPFUL WELCOME

2015 Downtown Guides Statistics

13,194 DIRECTIONS GIVEN

8,335 BUSINESSES CONTACTED

5,081 WELCOME MAPS PROVIDED

2,842 WELCOME BAGS PROVIDED

Once new residents, office workers, and businesses arrive in Downtown LA, our friendly Guides are here to greet them. The team provides much needed customer service including distribution of Downtown materials, directions, answering general questions, creating welcome bags, and much more. In 2015, we received numerous testimonials praising our team of friendly Guides. We continue to enhance the program through quarterly training sessions and additional benchmarks.


Our organization continues to play a vital leadership role in the resurgence of Downtown LA. Below is a summary of our key goals for 2016.

OPERATIONS• Continue to keep Downtown safe and clean.

• Expand tree trimming program.

• Build on homeless outreach with PATH mobile response team partnership.

MARKETING• Drive traffic to Downtown Center businesses

and events with a focus on expanding digital marketing.

• Introduce new DCBID branding.

• Provide visitors with additional street level walk-up resources.

• Promote a positive image of Downtown.

ECONOMIC DEVELOPMENT• Focus on reducing office vacancy rates by

targeting recruitment of creative, tech, arts & culture and traditional users.

• Continue to be the #1 resource for Downtown LA market research; rollout the Downtown Study results; develop new and original research.

• Boost efforts to recruit local, regional, and national retail.

• Continue to connect with existing residents through our proprietary Downtown Residential Managers (DRMA) Roundtable and with prospective residents through Saturday Housing Tours

• Conduct outreach to businesses and office tenants new to Downtown LA.

2016 GOALSHIGH STANDARDS FOR THE UPCOMING YEAR



FINANCIALSSTATEMENT OF ACTIVITY (For the Year Ending December 31, 2015)

Assessment Revenues 99.1%

REVENUES

Maintenance 24.1%

Community Service 2.5% Destination

Marketing 13.5%

Economic Development

11.5%Management and General

17.8%

Public Safety 30.5%

Other Income 0.9%

EXPENSES

Assessment Revenues $5,852,958 Other Income $51,808

Total Revenue $5,904,766

$1.65mTOTAL NET ASSETS

Total Revenue $5,904,766 Total Expenses $6,200,967

Decrease in Net Assets $296,201

2014 Net Assets $1,943,2642015 Decrease in Net Assets $296,201 =


2015

DCBID ASSESSMENT REVENUES 2015 vs. 2014

FINANCIALS

2014

$5.85m$5.92m

$1,893,161

$1,711,484

DCBID PROGRAM EXPENSES BREAKDOWN 2015 vs. 2014

Public Safety

$1,493,889

$1,481,855

Maintenance

Community Service

$838,833

$755,064

Destination Marketing

$713,418

$551,013

Economic Development

$1,105,634

$1,051,191

Management and General

$139,860

$156,032

2 million


BOARD OF DIRECTORSEXECUTIVE OFFICERS Cari Wolk- Chair Athena Parking, Inc.

Peklar Pilavjian- Past Chair Los Angeles United Investment Company

Sauli Danpour- Treasurer Xyvest Holdings, Inc.

Barry Altshuler- Executive Vice Chair Equity Residential

Eric Bender - Executive Vice Chair Downtown Properties

Robert Cushman- Executive Vice Chair Brookfield

Carol E. Schatz- President & CEO Downtown Center BID

BOARD MEMBERSJim Bonham Hines

Barbara Bundy FIDM

Alex Capriotti The Broad

Michael Czarcinski The Westin Bonaventure

Clare De Briere The Ratkovich Company

Evan Grobecker CommonWealth Partners

Simon Ha AIA, LEED AP Steinberg

Robert Hanasab Hanasab Investments

Steven Hathaway The Los Angeles Athletic Club

Veronica Perez Veronica Perez & Associates

Lucy Rumantir OUE Limited – The Americas

K.C. Yasmer Forest City Development

Adele Yellin Yellin Company

ALTERNATESTravis Addison CommonWealth Partners

Julio Morales Equity Residential

Matthew Nolan Grand Central Square

Brian Plymell Hines

Peter Zen The Westin Bonaventure Hotel & Suites

Carol E. Schatz* President & CEO

Kevin Begovich Graphic Designer

Shawn Bratton* Executive Assistant to Carol Schatz

Jeff Chodorow* Director of Finance

Ron Colcol Superintendent of Maintenance Services

Mike Filson Community Relations Manager

Nick Griffin* Director of Economic Development

Suzanne Holley* Vice President & Chief Operating Officer

Julia Marino Economic Development Associate

Lena Mulhall* Office Manager

Herman Pang* Director of I.T

Henna Sherzai Director of Marketing & Communications

Elan Shore Research & Special Projects Associate

* Services contracted between Downtown Center Business Improvement District and Central City Association

DCBID STAFF

Downtown Center Business Improvement District

626 Wilshire Blvd., Suite 200 Los Angeles, CA 90017P: 213 624 2146 | F: 213 624 0858DowntownLA.com

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Documents

ANNUAL REPORT - Downtown LA · Downtown Center Business Improvement District I 2015 Annual Report 3 We are pleased to once again share with you ... The Future of Urban Retail –