During this year’s State of the City event at the 1Hotel this past Thursday was highlighted by its theme ‘who is in your orbit’.
City Manager David Wilson discussed the city’s budget. “The city’s recently adopted fiscal 2026 budget, the city’s general fund is structurally balanced at 167 million dollars and we are drawing down 1 million dollars to assist with the critical social services. About 70% of our revenue comes from taxes largely generated by you, our business community. As a contract city nearly half of our expenditures goes toward essential services such as law enforcement and infrastructure maintenance, followed by staffing. The city’s revenue has rebounded quickly post pandemic since fiscal 2022 and have seen steady growth since them. However the rate of growth has slowed in the last year and we are projecting moderate increases in the coming years due to factors that could affect tourism and consumer spending such as economic uncertainty stemming from the federal policies, persistent inflation and high interest rates. Despite these factors the city is in a sound financial position thanks to our commitment to prudent fiscal policies, balancing conservative budgeting with moderate growth, and maintaining diverse revenue sources.”
“Our top revenue source is sales tax that is strengthened by Measure E, local sales tax that was implemented in 2022 . Transit and Occupancy tax has remained consistent post pandemic and we have seen a steady increase from development agreements over the last few years with the billboard programs.”
“We are investing in people and the services we provide. Many of them support the community development and our public works teams. These are critical to our business services. We have added new transportation and mobility divisions that will play a significant role in preparing the city for the major regional events coming up in the next few years as we lead up to Olympics and para-Olympic games.”
“In terms of private development progress continues. These two sites down on the boulevard remain active topics of discussion. . Neither of them currently have entitlements. The temporary shoring at the Melrose Triangle site was not suppose to be long term so the owner will have to fill the hole. We are working with them to do that. We also understand that the owner for another development project at this location in the near future.”
“Some of the buildings at the Robertson Lane site have deteriorated and will be demolished in the coming weeks. We understand that the owner is planning to submit a new version of the project that will create a more cohesive site while continuing to highlight the historic Factory building.”
“There are encouraging news elsewhere around the city. There have been reports that the project at 8850 Sunset which includes the Viper room has been going into foreclosure. It is our understanding that there has been a deal has been negotiated and we are optimistic that the project will be submitted for plan check in the coming weeks. A major mixed use project at 1000 La Brea, with over 500 units is also going through the process of environmental review.”
“And over the last year three new billboards have been constructed and another two were approved by the city council. We are expecting to receive another set of approvals by the end of this year.”
“And finally we launched and expanded several business development initiatives. Recent programs included providing marketing support for the cannabis businesses, the economic study the mayor mentioned earlier, free parking for WeHappy Wednesdays, and special event fee waivers for businesses. Some of the current initiatives include a second phase of the WeHo Loves Locals program, special events and PR support for the Rainbow District and the economic impact analysis for special events.”
“Some of the upcoming initiatives include implementing the business task force, east side marketing program, developing a vacant property strategy, creating the business accelerator program, and providing incentives for ride share operators. These efforts reflect our ongoing partnerships those in the business community.”
“And so I do plan for my retirement, I do feel confident that I am leaving the city in good hands. We have an extraordinary team of city professionals and I’d like you to take a stand one more time for our city staff to be acknowledged. Thank you all for your service and leadership, thank you to the Chamber and the City Council our residents and business community to make this such a dynamic place to live, work, and play.”
The city also provide statistics on commercial rents in West Hollywood. Citywide the average price per square foot of retail space was $74.67 per square foot, and $58.24 per square foot for office space.
Retail rents in the Design District were $85.78 per square foot for retail, and $53.64 for office space. Retail rents on the city’s east side were $61.06 for retail space and $55.15 per square foot for office space. Mid-City rents were $58.94 per square foot of retail space and $50.27 per square foot for office space. Retail rents in the Rainbow District totaled $71.01 for retail space and $54.23 for office space. The Sunset Strip rents for retail space were $74.64 cents per square foot and $65.31 for office space.
Commercial vacancy rates citywide were 13.5% of office space, and 10.2% of retail properties. The Design District reported vacancy rates 11.6% retail, 2.2% office. Eastside vacancy rates were 6.8% retail and 28.7% office. Mid-City had a vacancy rate of 9.7% retail and 7.8% office. The Rainbow District had a vacancy rate of 16.3% retail and 10.7% office. Sunset Strip had a vacancy rate of 10.3% retail and 16.3% office vacancy rates.
Total visitors to the City of West Hollywood declined to 7.57 million in Q1 2025 down from 7.82 million in Q1 2024. 17.9% of all visitors to West Hollywood travel more than 250 miles. 16.8% of visitors live between 0-3 miles, and 31.2% of visitors to West Hollywood live between 3-10 miles from the city.
The average length of time spent in West Hollywood varied widely with 18.6% of visitors stating they spend an average of 2-4 hours in WeHo on each of their visits. 9% of respondents claimed to spend 4-9 hours per visit. The majority of respondents, 24.6 % of visitors state they spend only 10-30 minutes inside WeHo on each of their visits.
Not a bad report.
Read about the The Now Development with 7 Japanese restaurants supposed to open this year.
Why haven’t I read about it here?
Thank you.
The “state of the city” is sad and disconnected from reality.