The critical state of business in West Hollywood has hit a boiling point. City Manager David Wilson, Asst. City Manager Jackie Rocco, Economic Development Director Laura Biery, and Management Assistant Paolo Kaspernik met with almost 50 business owners to reply to ‘the Critical State of Business’ letter, as outlined by Genevieve Morrill, President and CEO of the West Hollywood Chamber of Commerce.
Angry business owners challenged City Manager David Wilson’s ability to lead and reason with the City Council. Multiple voices echoed that they are being ignored. Mayor Shyne has refused to meet with us. Mayor Pro Tem Erickson is not available until October. Council member Heilman has been absent. Council member Byers hosted two meetings and met with a handful of businesses. Only Council member Meister has made herself available to listen to the complexities the businesses are facing.
Business owners representing every corner of West Hollywood joined this Friday’s meeting with the City Manager and staff. Wilson outlined items that were within staff’s control to present to City Council. Among those suggestions were waivers or rebates of sales taxes, or patio fees.
City Manager David Wilson led off the meeting. At this time, the council has not indicated that they want to have a discussion on the minimum wage ordinance. Today’s focus is on things staff has control over. “We do know these are challenging economic times nationally,” Wilson said. “We want to take this opportunity to respond.”
a) Business tax waiver up to 50% of tax certificates
b) Parking credit fee waiver up to 100%
c) Patio/outdoor dining fees—recommendation to waive outdoor dining fees
d) Marketing for local businesses—a marketing plan for the city is in process with Visit West Hollywood
e) Reinstate allowances for signage A-frames on sidewalks as long as they meet ADA requirements
The total was about 2 million dollars, plus any funds towards marketing. Then the discussion was open to the public. (Voice notes do not allow me to identify all speakers.)
David Cooley led off, speaking directly to Wilson, “David, what is being proposed… are you walking outside and seeing what is going on? A signage outside is not going to save our businesses.”
“I worked myself up the corporate ladder, I got two weeks off after a year. They didn’t listen to any of us. They didn’t listen to any of us. They made a mockery out of all of us. They didn’t consult economic studies. They used their platform for a political career for them, not thinking of the city. There was a press conference already planned before the vote was taken. Someone at city hall got fired for that. That press conference happened with union shirts at our city hall. They didn’t listen to any of us. And now it’s reflecting. We are in a major, major economic crisis. We just walked down Robertson Blvd; I felt like Russia just attacked us. There is not a business open. Why do these developers have our city looking like hell, and they are getting awards for it? And they are blaming you. You took down the Hamburger Haven, Jake and his employees there for forty years; you took down Bossa Nova, lost all those jobs; took down the nightclub, lost all those jobs; tore down the spa, lost those jobs.”
Cooley continued, “The people who are responsible should have had their faces here to listen to us. It’s just one thing after another in this city; after 40 years, they take away our sheriff department and brought in these blue shirts that do nothing. The meth coming into the Abbey from the park, and they just stand there. We are in a crisis, you are the City Manager, they have one agenda—look around this city, it’s shit; businesses are closing one after another, and we have nobody to talk to. What have you done as the City Manager to help our city survive? We are going to have to go to plan B; after the summer, no lunch business. It’s getting worse; people are afraid to come into our city. As a bottom line, it doesn’t pay to stay open. I’m so embarrassed for our city.”
“You need to step aside,” “We need a new City Manager,” echoed some of the disgruntled business owners.
Wilson responded: When it comes to crime, we started more foot patrols; we are adding technology, and our homeless policy. We are still a very compassionate city, but we also know it’s impacting your business. Wilson went on to discuss timelines on developments. Then he said, “There are a lot of businesses closing, but there are new ones opening too.”
The room became angry. Wilson quickly opened the floor to the many who were clamoring to speak.
Mark Lehman: “When we crafted this policy of requests, it was before the strikes. Hospitality had gotten decimated. We are an event-driven city. Events have disappeared.” “I have watched many new projects coming in that were dropped.” Where does that leave us? The only people who are coming in now are big companies that are incredibly well-funded.”
“Council will not meet with us. They were unavailable all through August. Sepi will finally be meeting with us on September 19th.”
Walter Shild spoke next, “The reality is these things you’re proposing are just window dressing. If you look at what is costing businesses tens of millions of dollars, ‘we have to compete, and we are between Los Angeles and Beverly Hills.’ I think what you’re missing is that most of these new businesses opening were deals signed pre-minimum wage, and others are not aware of what is happening on the ground.”
I asked the question, “What about the workers? This is supposed to be the worker ordinance. Normally when we do a pilot or implement a plan, we look three or six months down the line and bring the information back to city council. They need to see for themselves the effect the ordinance has had on workers.”
Brett Latteri spoke, “I’ve never seen it so bad. If we have 2,000 businesses and you are giving back 2 million dollars, it’s like $1,000 a business, not enough to pay half the gas bill. And I would just like to note that normally we get a resume or two a week, but now we are getting five resumes a day from people laid off from other West Hollywood businesses. We are screaming from the rooftops for help, and we are not getting any help whatsoever.”
Lucien Tudor, “We are La Boheme. For 32 years we have been always silent. We never had problems with political aspirations, but we just need help. We don’t want to go anywhere. We don’t want to lay off people. We want to sit at the table and have a dialogue.” “If we look for the future of the city and the well-being of these residents and the well-being of the businesses, let’s not get political. How can we present the results of these policies, and where we are at, and where are we going to be in five years if we continue like this?”
Speaker: (Voice notes do not allow me to identify each speaker), “We don’t want to be San Francisco; that is going to happen in LA, and West Hollywood is leading it. If they are not listening to you, then who are they listening to? They got the $19.08 per hour; that’s their badge for their political career. The PTO (paid time off) is killing us; it’s absolutely unaffordable.” “I love this city, and I don’t want to give up.” The impacts of Melrose construction have been enormous. “When they are not doing construction, if the contractor is not working, then move the cones.”
David Cooley added, “One of my customers asked, ‘What is going on with our city?’ Your businesses should speak up. ‘Why don’t you ban the city council from coming into your businesses?’ That will get you a lot of press.” The room erupted in laughter and then applause. “Ban the city council members from coming into your business.” “I don’t look at any of you as competitors; we all work together; that’s what makes West Hollywood so special. What are our competitors are our city leaders right now; they won’t even address us.”
Catch: “Hearing about cameras and security ambassadors will not make our guests feel better. Other than a sheriff presence, there is nothing I can present to our guests. Nobody is not paying the minimum wage; what can we do to create? The PTO is costing us $400,000 per year. If you can go back to the city council, that is our number one request. We are now looking at our staff, who is our bottom 25%, and how can we coach them out or prepare for them not to have a job. Look at July to August. I can’t hire anyone; it’s a freeze everywhere. The effect is we are cutting the labor force by 20%. Staff who is now fighting over shifts for 2-3 shifts a week and barely paying rent. The effect on hospitality is that; that is what is happening in our city, right now; when are they gonna feel it? If there is one thing to ask for relief, one thing it is the PTO.”
There was applause.
Speaker: “We had a specific wage ordinance for city contractors; we have a specific ordinance for hotel workers; so all we are asking is a specific wage ordinance for the hospitality industry. Our $100,000 employees got $10,000 raises, but our front-line workers got nothing the way this was crafted.”
Jason Wong of Fatburger, “The justification for it is being a living wage to help people pay the rent. But we did this in LA for the last five years, and it has not helped affordability at all.” He then spoke to the homeless that have interfered with his business and that he has to compete with other franchises in LA, but his costs are higher.
A bar manager added, “So they come to me; they are tight for money; they are coming to ask, ‘Can I take my sick pay? Can I take my vacation pay?’ They are not sick or taking a vacation.”
One female business owner explained, “I’m in West Hollywood, queer, female, restaurant owner, because it’s West Hollywood. And that’s where you’re safe; that’s where we are supposed to be doing like-minded things. But the way that it’s going to shit, really fast.” “We need to explain to our guests why this is happening.”
A number of people chimed in, “Why don’t we just ban them from our own businesses? Ban. Great idea,” another said. “That will bring a highlight to what they did to us.” “Why don’t we ban them from our own businesses? And that will stop their political advancement by using us.” “You are not allowed in our restaurants; you are not allowed in our salons; this will be an eye-opener, and they will address us.”
Genevieve Morrill, President and CEO of the West Hollywood Chamber of Commerce, added with regards to the rush to pass the ordinance, “Lauren Langer, the city attorney, said at council, ‘Yes, there looks like a pathway to a tipped credit for the hospitality industry, but it will take some time.’ They didn’t want to take time because it was an election; they didn’t want to listen because it was an election; they had the press conference set up; they already had their motion planned. They didn’t want to listen to the logic or listen to the businesses.”
Paul Nichols spoke, “They have created this monster, and I don’t think they know how bad it is. West Hollywood is losing what used to make it special; West Hollywood is losing its soul.”
Wow, I have never seen the business community so angry with West Hollywood city hall and the council.Businesses will get the sense they are no longer welcome and will make plans to leave.Sad to see. I think from now on I will avoid West Hollywood until the business situation settles down and is corrected by whatever means.Having a upset business environment and owners is not encouraging for outstanding customer service. Is Pro Tem Mayor Erickson really taking a month off to celebrate his birthday and not meeting with anybody? Talk about being delinquent in the duties you were elected to… Read more »
Drive up to every homeless person offer them shelter, food, and rehab. If they refuse load them on a bus and take them out of Los Angeles County. If they return and break the law incarcerate them in a homeless encampment where they stay on house arrest. Then deport them again until they make an effort to get a job and sobriety.
Need a seperate city for non tax paying criminals that abuse the lives of honest law abiding tax paying citizens constitutional rights. Enough is enough, the liberals are horrible decision makers with no moral fiber.
West Hollywood Cityhood was a prosperous, wildly successful, forward thinking and socially progressive yet common sense experiment since the mid-1980’s. Will it survive the current self-serving City Council? Only the voters can decide or continue to “fiddle as Rome burns.”
I hope that every business owner who spoke up or wrote about this issue is an actual dues paying member of the Chamber and not just joining a parade as it passed by. Often, some only speak up once it impacts them directly.
I can safely state that in the 39 years West Hollywood has been a City, there has never been such an unprecedented outpouring of anger and frustration from the business community directed at City Hall. While a lot of factors are at work that have brought us a point of crisis in confidence, many of those factors are self inflicted. Offering more sidewalk advertising does not offset the expense caused by our mandated increases to sick time and vacation time that apply to even part time employees; indeed that suggestion only reinforced the notion that City Hall is disconnected from… Read more »
The City appears negatively impacted by unsophisticated Council members and unsophisticated staff that often arrive from slightly more than provincial environments with an obscure degrees There is no frame of reference when the main event should be an efficiently operated city amenable to all. Personal political ambitions and divisive outlooks continues to exacerbate the postage stamp city. Whether the original premise was flawed or hijacked, the result is the same. West Hollywood seems in cardiac arrest.
This is one of the most thorough and succinct diagnoses of the city that I have ever read.
If Restaurant Business Owners voted with Unite Here Local 11,which would force hotels to fill empty rooms with homeless individuals…The homeless would No longer camp,crap,urinate,Harass the Costumers…plus if you get all of the homeless off of the streets into hotels and set a Curfew for them.The Cops could Focus on the Criminals !
It is interesting that Unite Here has called for hotels in Los Angeles to open their unrented rooms to house the homeless but has not made a similar call in West Hollywood. Maybe it will be on next week’s City Council agenda. After the City of LA had to pay out $11 million to the Mayfair hotel for damages arising from housing the homeless, I don’t see how this proposal, however well intended, makes sense.
It doesn’t. If someone is caught doing drugs in public they should get a choice..jail time or rehab. Use taxes raised for homelessness to build more drug rehabs/jails…and mental health facilities. Change the laws so the mentally ill can be placed in to those facilities. Enforce the no loitering laws already on the books. All the things we used to do..until we stopped doing them and our problems started.
Correct. Merely transplanting the homeless offers no cure. Putting behind the sight if the public is no cure. Rehabilitation in the proper facilities is the most positive path ti cure. Destroying hotel properties is largely its own insanity.
I agree. Rehab or jail, which should include rehab. And this doesn’t mean I don’t have compassion. If that was my family member I would want them FORCED off the streets and into rehab. It’s the only humane option. The rest is madness and a bizarre far left version of compassion that actually is just saying “die on the streets, slowly each day.”
Again, this is coming from a lifelong Democrat.
What’s Funny is Lindsey Horvath supports Unite Union 11,But at the same time/West Hollywood Doesn’t do Sweeps on the Homeless in West Hollywood,they let them sleep,crap,urinate,Harass the Residents/Businesses owners !
I just read a homeless motel I think in Wyoming had $11 million in damages from having the homeless live there. The city was responsible for the damages. Yours is the dumbest idea I believe I have ever heard anywhere. Should someone in an apartment now just stop paying rent, declare themselves homeless, and they get a free room at the Andaz? Is that what you’re thinking? Would room service also be included?
The Hotel your talking about had No Law and Order,it was Abandoned ! The inside safe hotel program has been working somewhat good in Santa Monica,Los Angeles Ect…That could be your Next Rent Control,so maybe you should go find out if you can get a Homeless voucher for a Hotel Room lol
The left apparently stopped critical thinking a while ago. It’s too bad, I agree with you. I have no political home anymore because I would never vote for the trump madness and I believe in science and climate change and equality, but seems like you have to nod your head and say “yeah, that makes sense” to completely nonsensical, not to mention unsupported theories about how to solve street vagrancy.
Am hopeful that your unfunny comment was in jest.
What a brilliant idea. Let’s fill up hotel rooms with the drug addicted and/or mentally ill homeless population so that we can put an end to tourism once and for all. Who needs businesses to thrive anyway? Then we can all watch our home values go down the drain, but that’s ok because we can just hand them over to the homeless. Apparently, if you just give them homes, they’ll stay there and not cause trouble! Lol sure… I have a better idea. Why don’t we start electing better politicians and annihilate the hold morons like Unite Here have on… Read more »
First of all…California is a Democratic state,it’s been like this forever…You think California is going to turn into a Republican State in an instant ? Be logical ! The Only way to Hold Gavin Newsoms feet to the fire,so at least we could try to follow the paper trail of money that’s being spent or going into THEIR Pockets…when they put these homeless people into hotels,they get case managers,they get a chance to talk to Mental health workers,they even have the option of going to The Tarzana Drug Rehab Facility ! So if People choose to Not Vote with Unite… Read more »
I’d rather see new skid row-type areas developed for people who can’t take care of themselves–keep them away from the healthy population. The vagrants are polluting my daily life and I think many feel the same way.
Develop “new skid row areas”? Sounds like a humane solution.🙄😨😱
How about curing the causes of homelessness which are multiplying exponentially?
While advocating such an operation in areas like parts of the open desert spaces with rehabilitation resources enabling people to become productive members of society, the city mayor finds it easier to stuff them into hotels with no plan for the next steps.
Bandaids are worthless when the situation is cardiac arrest! 😱.
if they house the homeless into hotels,most likely it won’t be in the City of West Hollywood because the City of West Hollywood was officially incorporated as an independent City…Currently West Hollywood Doesn’t Address its homeless Problems,like Santa Monica,Los Angeles !
This comment is wayyyy off base and uninformed and unrealistic. There is no data or common sense to show that filling empty hotel rooms would solve the homeless problem. Setting a curfew maybe, but house a certain amount for free and more will keep coming. I support all efforts to help people with addictions and mental health issues and I support housing programs as well, but do we really believe that there isn’t a percentage of people out there who will simply keep taking as long as it’s free? It’s as if we have no understanding of human nature or… Read more »
Ban Erickson, Shayne and Byers from the city. No one wants to look at their faces. They provide nothing. Certainly not glamor to the creative City. These are just dreadful loosen political hacks. They’re ridiculous. All three of them. Get out of West Hollywood, get out of our lives. You are a menace.
I love that you give Meister and Heilman some kind of pass. They too voted for the $19.08 minimum wage. It was a unanimous vote. All five of them are out of touch and responsible for destroying businesses here. I would like to see a Council with at least one landlord, one brick and mortar business owner, one homeowner, one office type worker, and even one renter. It’s called balance. We don’t have that now.
Heilman wasn’t even on the council when this passed. John D’amico was.
Stop spreading misinformation
He highlighted the worst of the 5 -those that have done the most damage doing the bidding of unite here.
That is true but my recollection is that Lauren Meister voted against the additional PTO (paid time off), that doubled the number of sick and vacation days for all workers in the City. It looks like that provision has created the most havoc for the business community and I don’t think the proposal was fully thought out when it was enacted. While I agree with it in theory, historically workers have always negotiated extra time off individually, which is what I did before I was self employed.
Lauren Meister does her homework though. I like her. I agree with you thought, we need more balance on the council, but the fault is the voters. Voters need to take steps to educate themselves and become informed. Democracy only survives with active citizenry, otherwise it becomes venal and despotic.
I’m no fan of David Cooley but when he is right HE IS RIGHT.
With these business owners, how much do they earn in a year, compared to some busboy or server or host? What kind of cars do they drive? How funded are their retirement plans? Where do they go on vacation? How much paid time off do they have in a year? What do they eat? What is their health insurance status? What did their shoes or sunglasses cost? How much money do they have in the bank? What is their net worth, next to some kitchen cook? These rich business owners compared to the slaves who work for them can cry… Read more »
How ridiculous of you to count everybody else’s money and generalize all owners in such a condescending, almost rascism towards business owners manner. There is no hive without the Queen Bee.
Ok I’ll say it: GOOD GRIEF!
Karl Marx would love you!
Did the business owners provide any solutions or were they there just to complain? I read the article and I missed where any one of them provided any ideas or solutions. Confusing.
It appears the owners were mostly asking for a bunch of freebies. But that doesn’t address security, getting rid of the homeless, getting the urine off the sidewalks etc. Until they address the root problem of every problem in the City, which is Rent Control, (having people here who can’t afford to live here), we will see lots more business failures. Personally, I believe Sepi, Chelsea and Erickson are laughing at all of this, knowing they will get re-elected because the Unite bed-makers Union doesn’t care about business failures. Which will be the first hotel to close? Any guesses? The… Read more »
I fail to see the relation between rent control and poor business decisions. Exactly how does mandatory high wages correlate to rent control? Most employees throughout WH do not even live in West Hollywood. Rent control is a part of every major city in the nation. This city was founded upon rent control (I was here to cast one of the first votes). Property owners are not forced to own property in West Hollywood. Our problem is anti business decisions made by Far Left City Council members…as they have further done to the entire welfare-state of California. Calculate the hundreds… Read more »
It’s not “poor business decisions”. It’s that the City Council is actively working against businesses in the city, and imposing impossible rules on them that don’t exist in neighboring cities. If there were no rent control, I believe all of the old crumbling apartment buildings would have been torn down, and new condos, and new apartment buildings would be built, with lots more parking and people who could afford to live here. Sorry you don’t see it that way. Your way is what we have now: lots of poor freeloaders, nasty buildings that don’t get kept up, virtually no new… Read more »
It’s very clear in the article. The business owners don’t want the highest minimum wage on the country and the excessive Paid Time Off rules. It’s also very clear in the article that business owners want more law enforcement and less ambassadors.
Read it again.
yeah, not confusing…at all.
The solution is very simple for these business owners, find candidates who match your needs and wants, support them with political donations and get them elected. The current city council was NOT appointed but elected by getting more votes then other candidates.
You are very naive. Eastsiders far out–vote Westsiders. It’s real simple. No wonder unions pull all the strings, and look at the results.
You’ve got my vote, WehoQueen. You are usually correct on the issues.
oh wow, the 2 of you against rent control are going to make huge waves in this city 😂
I wish I were wrong, but just look around at the results of 40 years of Weho. If I were running, I would only offer actual solutions. The voters don’t want that. They prefer to hear lies and vacant promises. The same ones for 40 years.
The unions pull the strings because they go from building to building collecting ballots to fill out and mail for West Hollywood residents.
Yeah! Sidewalk signage A-frames and maybe giant inflatable tube mans’ like the ones you see on Pico and La Brea! That’ll help businesses. Yeah! that’s the ticket!