The Business Advocacy Service Center

Redondo Beach Chamber of Commerce

Home > Issues > Economic Development

 

June 1, 2007

Oppose Proposed Law that Kills Economic Improvements

 

A proposed new law, AB 1459, would negatively impact jobs and economic growth in coastal communities. The new law would also prohibit cities, counties, and the Coastal Commission from ever permitting the construction of condominium hotels, timeshare units, and other similar interests in Redondo Beach, which is designated as a Coastal Zone.

“This would only hurt our local economy and the recruitment of new businesses,” stated Marna Smeltzer, President/CEO of the Redondo Beach Chamber of Commerce & Visitor’s Bureau.

One aspect of the local economy is tourism. Ranked as California’s fourth largest employer and fifth largest contributor to the gross state product, tourism would definitely suffer. Furthermore, condo hotel units and timeshare construction would also decline. These projects, in recent years, have become essential in the growth of our local economy.

The proposed legislation will stop the creation of significant new lodging accommodations in the Coastal Zone which is overseen by the California Coastal Commission. The Commission is the authority for oversight and when projects are approved, the commission imposes appropriate conditions to protect the public’s interest in access to the coast and overnight lodging.

“There is already a check and balance system in place to protect the general public and see that construction of new condos and timeshares happen appropriately,” explained Smeltzer. “AB 1459 is simply not beneficial to our businesses,” Smeltzer continued.
 

December 2, 2004

Chamber Urges Council for Less Aggressive Business License Tax

 

At the November 16th City Council meeting the City Council struggled with an aggressive proposal for increasing the Redondo Beach Business License Tax.. The Business License Tax has not been increased since 1991, and Redondo Beach fees are the lowest in the South Bay. Our City is facing a $1.5 to $2 million deficit in the 2004 / 2005 budget. The City Manager's proposal is an attempt to bring Redondo Beach's business license tax in line with other South Bay cities and to help offset the city's budget deficit.
 

The Chamber lobbied that the proposal was too aggressive and playing catch up all in one year is just too dramatic. Business leaders agree there is justification for adjusting the tax. Additionally, implementing an annual CPI is a good idea in order to keep up with inflation. However, they pointed out that since the issue needed voter approval in March, there should be careful consideration to place a measure on the ballot that could be supported by the voters.
 

The original recommendation proposed to increase the business tax from $99 to $150 for each business plus increase the per employee fee from $18toS35. A second proposal for consideration added a "square footage fee" for businesses with over 10,000 sq feet to be assessed up to 10 cents per sq ft with a cap of $160,000.
 

The Mayor and members of the City Council agreed with business leaders that the plan was far too aggressive to implement all in one year, but struggled with an equitable solution.
 

A final decision whether to place a measure on the March ballot will be decided at the November 30 City Council meeting.

 

The two alternatives that will be discussed are the following.

 

Alternative #1 Increase the business tax, and the employee tax, rooms and other rentals, 20% each year for the next 2 years and then go to an annual increase based on the Consumer Price Index (CPI).
 

Alternative #2 Increase the business license tax and the employee tax, rooms and other rentals, 10% each year for the next five years, and then go to an annual increase based on the Consumer Price Index (CPI)


The Chamber would like to thank the members who took the time to complete the Business License Survey that was faxed and e-mailed. The results were shared with the City Council who reviewed the results with serious consideration.

 

Home > Issues > Economic Development

Home

Take Action

Issues

Priorities

Resources

Get Involved!

Contact Us