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Santa Monica's Third Street Promenade is a retail relic. Can it be saved?

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Santa Monica's Third Street Promenade is a retail relic.  Can it be saved?

Once Santa’s Monica’s signature destination for shopping and dining, the Third Street Promenade is showing its age.

Its decline has left the promenade’s landlords and city officials trying to counter years of stagnation, public safety concerns and fast-changing retail norms in an attempt to breathe new life into it.

The climb back to commercial viability is steep. Foot traffic at the pedestrian mall that teemed with locals and tourists during its heydey in the 1990s has been thinning for years, dropping by more than a third since 2019. “For rent” signs front a discouraging number of empty stores.

A visitor walks past a shuttered Market Pavilion now surrounded by cyclone fence on the Third Street Promenade.

(Genaro Molina/Los Angeles Times)

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The reasons for the Promenade’s troubles are many and layered. While, like many shopping districts and malls, it took a beating during the pandemic as shoppers stayed at home, its economic troubles predate COVID-19.

The Promenade, which has had few improvements since a renovation 35 years ago, was allowed to grow “tired and old,” real estate consultant David Greensfelder said. Its scale also presents challenges, as the mall’s unusually large stores are hard to fill in an era when many big retailers are reducing their footprints.

And issues and perceptions around public safety are also at play.

The Promenade’s reputation took a hit in May 2020 when protests in response to the murder of George Floyd devolved into violence and ransacking of stores. Over 100 businesses, many of them on or near the Promenade, were damaged or destroyed, said Santa Monica Mayor Phil Brock. In the years since, crime trends have been mixed in the city with robbery and shoplifting rates up slightly last year compared to 2022 and declines in several other categories. High-profile robberies in the region and an increase in the number of people living on the street in Santa Monica, meanwhile, have contributed to the sense among some that the Promenade is unsafe.

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“We’re not only trying to fight the actual crime that’s occurring because it is, but we’re also trying to rehabilitate this perception of safety in Santa Monica,” said Santa Monica Police Lt. Ericka Aklufi.

Signs in a store window warn "Silent alarm notifies police dispatch."

A passerby is caught in the reflection of an empty storefront available for rent on the Third Street Promenade in Santa Monica.

(Genaro Molina/Los Angeles Times)

On a recent weekday, “Optimus Crime,” a large mobile police command center that bears a resemblance to a Transformer, was parked at a crosswalk on the Promenade. Nearby, a banner hung over one of the mall’s vacant storefronts proclaiming, “Santa Monica is Not Safe.”

For the record:

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7:47 p.m. July 17, 2024An earlier version of this article said that John Alle manages 15,000 square feet of space on the Promenade; some of that space is elsewhere.

John Alle, who co-founded the Santa Monica Coalition about two years ago to bring attention to public safety issues in the city, manages about 15,000 square feet of commercial real estate, including the storefront where the sign hangs.

He claims rampant theft and near constant presence of homeless people forced one of his tenants in the building to leave. And although the sign likely is counter-productive to bringing people to the Promenade, Alle said he hopes the public shaming will prompt tourists and other visitors to demand the city do more to help the Promenade.

He added, “I don’t think it’s going to deter shopping. There’s not much shopping going on there.”

The high-profile success of the promenade in the 1990s also planted the seeds of the current struggle to keep stores occupied, experts said.

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Third Street for decades was Santa Monica’s main commercial strip, but by the late 1950s it was laboring to keep up with new regional shopping centers. After a lengthy renovation in 1989, when the mall was renamed as the Third Street Promenade, real estate developer Shaul Kuba and his partners started acquiring troubled properties on the Promenade at a deep discount and set out to find a flashy national tenant that could serve as a bellwether.

People in Adirondack chairs listen to a saxophone player.

Aaron Cohen plays the saxophone on Third Street Promenade earlier this month.

(Zoe Cranfill / Los Angeles Times)

They managed to land a Disney Store, and the match was lit, Kuba said. “That opened the door for a lot of other retailers — J. Crew, Banana Republic, Old Navy.” The Promenade began to thrive after a long stretch as a retail backwater.

But in recent years these “big box” stores have been hurt by competition from online sellers and narrowly-focused specialty retailers.

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They have adapted by opening fewer, smaller stores, which is a problem for the Promenade. As tenants have departed, they have left behind uncommonly large spaces because of Third Street’s history as a prime retail venue serving large stores.

“I think every landlord is hoping a big box is coming back, and sometimes they do, but really, across the country retailers are shrinking,” said retail property broker Christine Deschaine of Kennedy Wilson.

Out of necessity, landlords are getting creative in an effort to fill the space and adapt to the changing expectations and habits of consumers, who now rely heavily on online purchasing. Shoppers, said Lars Perner, who teaches clinical marketing at USC’s Marshall School of Business, want a unique experience, an antidote to the big chains that provide mass-produced products.

“The idea that you’re getting something special is what draws crowds,” Perner added.

What was once a JCPenney and later Banana Republic is now a roomy, upmarket John Reed Fitness gym. Pickleball is played at a hybrid clothing retailer, sports club and restaurant Pickle Pop, which occupies 10,000-square-feet that was a former Adidas store. The top floor of a shuttered food court will be transformed into a “golf experience” that may include miniature golf, Deschaine said.

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Other large store spaces may be carved into units for smaller tenants, as has been done successfully on nearby 2nd Street, Deschaine said.

Some noteworthy retail tenants are already on the way, she said, including a technology company she declined to name that has agreed to take a prime space at the Broadway entrance to the Promenade. Also generating buzz is the pending arrival on the Promenade of Raising Cane’s Chicken Fingers, a Louisiana fast-casual restaurant chain.

Restocking the Promenade with tenants is a tall order in part because of its overall size, said Devin Klein, a property broker with JLL.

People walk past a "Santa Monica is not safe" sign.

A sign in a Third Street Promenade storefront warns, “Santa Monica is not safe.”

(Dania Maxwell / Los Angeles Times)

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The Promenade and Santa Monica Place mall next door have a combined total of more than 1 million square feet, he said, about twice as much as the Grove shopping center in Los Angeles.

At its low point during the pandemic toward the end of 2020 and into 2021, vacancy on the Promenade rose to 30% to 35%, Klein said, and is now between 20% and 25%.

That improvement can be attributed to some property owners accepting that they can’t demand as much rent as they used to get when the market was hotter and landlords came to believe they could charge tenants “Rodeo Drive rents,” said Brock, Santa Monica’s mayor.

He added, “We were never Rodeo Drive.”

“Landlords have really started to play ball with retailers and adjust their rent according to the market,” Klein said, “which has allowed more spaces to to get leased.”

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Over the past several years, Santa Monica city officials have tried to make it easier to open and run a business on the Promenade.

It has eased restrictions on the types of operating permits it issues in an effort to reverse a past in which it “micromanaged a little bit and maybe went overboard” on what businesses could set up shop, said David Martin, the city’s Community Development director.

People on bicycles near Third Street Promenade.

Shopping traffic has long been in decline on the Third Street Promenade.

(Zoe Cranfill / Los Angeles Times)

For example, a quota on how many restaurants are allowed on a city block has been eased and a cumbersome entitlement process that effectively prevented pop-up events has been removed.

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“We are trying to make sure that the city process is as clear as possible, as fast as possible, and then leave it to the market to bring in the kinds of businesses that the public is demanding,” Martin said.

For several years, Santa Monica city officials have had a blueprint to dramatically transform the Promenade itself, which hasn’t seen meaningful changes in decades.

A proposal, dubbed Promenade 3.0, was devised in 2019 at the behest of the city and Downtown Santa Monica Inc. a nonprofit that works with the city to manage the downtown area. The plan by architecture firm RIOS would cost about $60 million and is intended to make the Promenade more engaging to visitors so they linger and shop more.

A primary goal would be to stop funneling people through the middle of the street and encourage them to circulate in a loop pattern. Curbs might be eliminated to make it feel less like a closed street. Rooftop restaurants would be encouraged. Additions could include beer gardens, water features, a viewing tower and small pop-up retail stations to incubate new stores.

The proposal was stalled by pandemic-related challenges including plummeting city tax revenue that could have helped fund it, RIOS architect Nate Cormier said.

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Martin said that property owners on the Promenade could possibly fund the initiative, but there’s nothing in the works.

“The idea of completely redoing the Promenade like was done in like the ’80s, that’s not currently on the table,” he said.

Nevertheless, the city’s seaside location will continue to make it a draw for visitors and businesses, encouraging recovery of the Promenade, Klein said.

“You can never change the fact that it’s still one of the prettiest areas in the world,” he said. “There’s always going to be some kind of a bounceback when you have this kind of real estate. Let’s face it — you’re a couple blocks from the ocean.”

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Commentary: A leading roboticist punctures the hype about self-driving cars, AI chatbots and humanoid robots

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Commentary: A leading roboticist punctures the hype about self-driving cars, AI chatbots and humanoid robots

It may come to your attention that we are inundated with technological hype. Self-driving cars, human-like robots and AI chatbots all have been the subject of sometimes outlandishly exaggerated predictions and promises.

So we should be thankful for Rodney Brooks, an Australian-born technologist who has made it one of his missions in life to deflate the hyperbole about these and other supposedly world-changing technologies offered by promoters, marketers and true believers.

As I’ve written before, Brooks is nothing like a Luddite. Quite the contrary: He was a co-founder of IRobot, the maker of the Roomba robotic vacuum cleaner, though he stepped down as the company’s chief technology officer in 2008 and left its board in 2011. He’s a co-founder and chief technology officer of RobustAI, which makes robots for factories and warehouses, and former director of computer science and artificial intelligence labs at Massachusetts Institute of Technology.

Having ideas is easy. Turning them into reality is hard. Turning them into being deployed at scale is even harder.

— Rodney Brooks

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In 2018, Brooks published a post of dated predictions about the course of major technologies and promised to revisit them annually for 32 years, when he would be 95. He focused on technologies that were then — and still are — the cynosures of public discussion, including self-driving cars, human space travel, AI bots and humanoid robots.

“Having ideas is easy,” he wrote in that introductory post. “Turning them into reality is hard. Turning them into being deployed at scale is even harder.”

Brooks slotted his predictions into three pigeonholes: NIML, for “not in my lifetime,” NET, for “no earlier than” some specified date, and “by some [specified] date.”

On Jan. 1 he published his eighth annual predictions scorecard. He found that over the years “my predictions held up pretty well, though overall I was a little too optimistic.”

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For example in 2018 he predicted “a robot that can provide physical assistance to the elderly over multiple tasks [e.g., getting into and out of bed, washing, using the toilet, etc.]” wouldn’t appear earlier than 2028; as of New Year’s Day, he writes, “no general purpose solution is in sight.”

The first “permanent” human colony on Mars would come no earlier than 2036, he wrote then, which he now calls “way too optimistic.” He now envisions a human landing on Mars no earlier than 2040, and the settlement no earlier than 2050.

A robot that seems “as intelligent, as attentive, and as faithful, as a dog” — no earlier than 2048, he conjectured in 2018. “This is so much harder than most people imagine it to be,” he writes now. “Many think we are already there; I say we are not at all there.” His verdict on a robot that has “any real idea about its own existence, or the existence of humans in the way that a 6-year-old understands humans” — “Not in my lifetime.”

Brooks points out that one way high-tech promoters finesse their exaggerated promises is through subtle redefinition. That has been the case with “self-driving cars,” he writes. Originally the term referred to “any sort of car that could operate without a driver on board, and without a remote driver offering control inputs … where no person needed to drive, but simply communicated to the car where it should take them.”

Waymo, the largest purveyor of self-driven transport, says on its website that its robotaxis are “the embodiment of fully autonomous technology that is always in control from pickup to destination.” Passengers “can sit in the back seat, relax, and enjoy the ride with the Waymo Driver getting them to their destination safely.”

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Brooks challenges this claim. One hole in the fabric of full autonomy, he observes, became clear Dec. 20, when a power blackout blanketing San Francisco stranded much of Waymo’s robotaxi fleet on the streets. Waymos, which can read traffic lights, clogged intersections because traffic lights went dark.

The company later acknowledged its vehicles occasionally “require a confirmation check” from humans when they encounter blacked-out traffic signals or other confounding situations. The Dec. 20 blackout, Waymo said, “created a concentrated spike in these requests,” resulting in “a backlog that, in some cases, led to response delays contributing to congestion on already-overwhelmed streets.”

It’s also known that Waymo pays humans to physically deal with vehicles immobilized by — for example — a passenger’s failure to fully close a car door when exiting. They can be summoned via the third-party app Honk, which chiefly is used by tow truck operators to find stranded customers.

“Current generation Waymos need a lot of human help to operate as they do, from people in the remote operations center to intervene and provide human advice for when something goes wrong, to Honk gig workers scampering around the city,” Brooks observes.

Waymo told me its claim of “fully autonomous” operation is based on the fact that the onboard technology is always in control of its vehicles. In confusing situations the car will call on Waymo’s “fleet response” team of humans, asking them to choose which of several optional paths is the best one. “Control of the vehicle is always with the Waymo Driver” — that is, the onboard technology, spokesman Mark Lewis told me. “A human cannot tele-operate a Waymo vehicle.”

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As a pioneering robot designer, Brooks is particularly skeptical about the tech industry’s fascination with humanoid robots. He writes from experience: In 1998 he was building humanoid robots with his graduate students at MIT. Back then he asserted that people would be naturally comfortable with “robots with humanoid form that act like humans; the interface is hardwired in our brains,” and that “humans and robots can cooperate on tasks in close quarters in ways heretofore imaginable only in science fiction.”

Since then it has become clear that general-purpose robots that look and act like humans are chimerical. In fact in many contexts they’re dangerous. Among the unsolved problems in robot design is that no one has created a robot with “human-like dexterity,” he writes. Robotics companies promoting their designs haven’t shown that their proposed products have “multi-fingered dexterity where humans can and do grasp things that are unseen, and grasp and simultaneously manipulate multiple small objects with one hand.”

Two-legged robots have a tendency to fall over and “need human intervention to get back up,” like tortoises fallen on their backs. Because they’re heavy and unstable, they are “currently unsafe for humans to be close to when they are walking.”

(Brooks doesn’t mention this, but even in the 1960s the creators of “The Jetsons” understood that domestic robots wouldn’t rely on legs — their robot maid, Rosie, tooled around their household on wheels, a perception that came as second nature to animators 60 years ago but seems to have been forgotten by today’s engineers.)

As Brooks observes, “even children aged 3 or 4 can navigate around cluttered houses without damaging them. … By age 4 they can open doors with door handles and mechanisms they have never seen before, and safely close those doors behind them. They can do this when they enter a particular house for the first time. They can wander around and up and down and find their way.

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“But wait, you say, ‘I’ve seen them dance and somersault, and even bounce off walls.’ Yes, you have seen humanoid robot theater. “

Brooks’ experience with artificial intelligence gives him important insights into the shortcomings of today’s crop of large language models — that’s the technology underlying contemporary chatbots — what they can and can’t do, and why.

“The underlying mechanism for Large Language Models does not answer questions directly,” he writes. “Instead, it gives something that sounds like an answer to the question. That is very different from saying something that is accurate. What they have learned is not facts about the world but instead a probability distribution of what word is most likely to come next given the question and the words so far produced in response. Thus the results of using them, uncaged, is lots and lots of confabulations that sound like real things, whether they are or not.”

The solution is not to “train” LLM bots with more and more data, in the hope that eventually they will have databases large enough to make their fabrications unnecessary. Brooks thinks this is the wrong approach. The better option is to purpose-build LLMs to fulfill specific needs in specific fields. Bots specialized for software coding, for instance, or hardware design.

“We need guardrails around LLMs to make them useful, and that is where there will be lot of action over the next 10 years,” he writes. “They cannot be simply released into the wild as they come straight from training. … More training doesn’t make things better necessarily. Boxing things in does.”

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Brooks’ all-encompassing theme is that we tend to overestimate what new technologies can do and underestimate how long it takes for any new technology to scale up to usefulness. The hardest problems are almost always the last ones to be solved; people tend to think that new technologies will continue to develop at the speed that they did in their earliest stages.

That’s why the march to full self-driving cars has stalled. It’s one thing to equip cars with lane-change warnings or cruise control that can adjust to the presence of a slower car in front; the road to Level 5 autonomy as defined by the Society of Automotive Engineers — in which the vehicle can drive itself in all conditions without a human ever required to take the wheel — may be decades away at least. No Level 5 vehicles are in general use today.

Believing the claims of technology promoters that one or another nirvana is just around the corner is a mug’s game. “It always takes longer than you think,” Brooks wrote in his original prediction post. “It just does.”

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Versant launches, Comcast spins off E!, CNBC and MS NOW

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Versant launches, Comcast spins off E!, CNBC and MS NOW

Comcast has officially spun off its cable channels, including CNBC and MS NOW, into a separate company, Versant Media Group.

The transaction was completed late Friday. On Monday, Versant took a major tumble in its stock market debut — providing a key test of investors’ willingness to hold on to legacy cable channels.

The initial outlook wasn’t pretty, providing awkward moments for CNBC anchors reporting the story.

Versant fell 13% to $40.57 a share on its inaugural trading day. The stock opened Monday on Nasdaq at $45.17 per share.

Comcast opted to cast off the still-profitable cable channels, except for the perennially popular Bravo, as Wall Street has soured on the business, which has been contracting amid a consumer shift to streaming.

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Versant’s market performance will be closely watched as Warner Bros. Discovery attempts to separate its cable channels, including CNN, TBS and Food Network, from Warner Bros. studios and HBO later this year. Warner Chief Executive David Zaslav’s plan, which is scheduled to take place in the summer, is being contested by the Ellison family’s Paramount, which has launched a hostile bid for all of Warner Bros. Discovery.

Warner Bros. Discovery has agreed to sell itself to Netflix in an $82.7-billion deal.

The market’s distaste for cable channels has been playing out in recent years. Paramount found itself on the auction block two years ago, in part because of the weight of its struggling cable channels, including Nickelodeon, Comedy Central and MTV.

Management of the New York-based Versant, including longtime NBCUniversal sports and television executive Mark Lazarus, has been bullish on the company’s balance sheet and its prospects for growth. Versant also includes USA Network, Golf Channel, Oxygen, E!, Syfy, Fandango, Rotten Tomatoes, GolfNow, GolfPass and SportsEngine.

“As a standalone company, we enter the market with the scale, strategy and leadership to grow and evolve our business model,” Lazarus, who is Versant’s chief executive, said Monday in a statement.

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Through the spin-off, Comcast shareholders received one share of Versant Class A common stock or Versant Class B common stock for every 25 shares of Comcast Class A common stock or Comcast Class B common stock, respectively. The Versant shares were distributed after the close of Comcast trading Friday.

Comcast gained about 3% on Monday, trading around $28.50.

Comcast Chairman Brian Roberts holds 33% of Versant’s controlling shares.

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Ties between California and Venezuela go back more than a century with Chevron

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Ties between California and Venezuela go back more than a century with Chevron

As a stunned world processes the U.S. government’s sudden intervention in Venezuela — debating its legality, guessing who the ultimate winners and losers will be — a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.

Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.

Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Chávez required them to surrender majority ownership of their operations to the country’s state-controlled oil company, PDVSA.

But Chevron remained, playing the “long game,” according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.

Looks like that bet might finally pay off.

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In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicolás Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would “run” Venezuela and open more of its massive oil reserves to American corporations.

“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.

While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela’s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there’s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.

But the company’s official response to the stunning turn of events has been poker-faced.

“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”

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Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.

Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.

Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.

Chevron began exploring in Venezuela in the early 1920s, according to the company’s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela’s largest foreign investor.

The company held on over the decades as Venezuela’s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007, under then-President Hugo Chávez.

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Venezuela has the world’s largest proven crude oil reserves — meaning they’re economical to tap — about 303 billion barrels, according to the U.S. Energy Information Administration.

But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.

Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.

That’s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.

But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly — which could lead to a windfall for Chevron.

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The Associated Press contributed to this report.

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