Hollywood is plotting a comeback after the pandemic and an entertainment industry downturn put an unflattering spotlight on crime and poverty, further depressing foot traffic.
The city is simplifying zoning for the first time since 1988 and adding more incentives to encourage development on prime commercial corridors and public lands. It's also adding a tourism tax to be used for safety measures.
The push is part of a multipronged strategy to help clean up the area's act in the wake of a COVID-19 pandemic that tanked global tourism and drove away office workers, sending the area's vacancy rates to historic highs. The entertainment strikes in 2023 upended production in Hollywood, further worsening the city's outlook.
“We want our city to shine, and we have a lot of work to get us back to where we need to be," California state Sen. Ben Allen, a Democrat, said during a meeting of the Hollywood Partnership, the nonprofit that manages public spaces in the 500-property, 80-block Hollywood Entertainment District with a $9 million annual budget.
Hollywood isn't alone in its struggle: other densely populated urban markets across the country face sluggish activity caused by pandemic-era headwinds and perceived poverty and crime. In downtown districts of Miami, San Francisco and New York City, for example, safety concerns have made it harder for employers to get workers back into their cubicles and for tourists to explore side streets, CoStar News reported.
In June 2024, visits to offices nationwide were still nearly 30% below June 2019 levels, according to tracking firm Placer.ai. Downtown foot traffic, meanwhile, fell at a majority of the 64 districts across the United States and Canada tracked by the University of Toronto's School of Cities between May 2023 and May 2024.
Hollywood has been trying to turn its fortune around for several years, and the stakes are getting higher with the NBA All-Star Game, soccer's FIFA World Cup, and the Super Bowl all slated to take place in Los Angeles ahead of an even bigger spotlight: the 2028 Olympic Games.
Pro-development plans
Attracting commercial development of all kinds is important for boosting economic activity in Hollywood, according to Kathleen Rawson, president and CEO of the Hollywood Partnership.
Adding more affordable housing could help retain residents, encourage mixed-use development and boost the local economy long-term, Rawson said, noting renting is already the most popular choice among Hollywood's 31,000 residents.
“We need diverse housing options for working folks and for a variety of public sector employees,” including multibedroom units, Rawson said.
One example of a public-private collaboration is the recently permitted 1360 Vine, a 33-story apartment development by Onni Group that has a 2026 slated opening. The city helped arrange permits for the 429-unit project in exchange for more affordable units, as well as offering an alternative plan for a mixed-use office and residential project should the developer pursue a different development route.
"We supported the developer presenting two project options, one office, one residential," Rawson said.
The city is looking to provide a similarly tailored experience for developers looking to convert Hollywood's stock of older buildings with high vacancies into residential or flexible office space, Rawson said.
Officials are also looking to make public lands available as a development option. One of the more unique potential public plays is a 38-acre park on a platform over a 1-mile portion of the 101 Freeway through the heart of Hollywood. The Hollywood Central Park concept has won a $3.6 million federal grant.
“Public land used to be one of the hardest places to build and develop, and now it’s going to be one of the easiest,” said Hugo Soto-Martinez, Los Angeles City Council member for District 13, at the Hollywood Partnership’s 2024 annual meeting last month.
Safety first
Filling empty storefronts and building more affordable housing will help create a more attractive streetscape and encourage tourists to spend more time and money in Hollywood, Rawson said.
"Folks spend one hour on a Walk of Fame that is more than a mile long," Rawson said, noting increasing that time spent on Hollywood's famed street is "something we all need to work on."
Crime, theft and homelessness have served as notable barriers to entry among national retailers considering an expansion into Hollywood, notes Marty Shelton, vice president at NAI Capital.
"We need more positive stories coming out of Hollywood," said Shelton, the former chairman of the Hollywood Chamber of Commerce who is helping bring discount supermarket chain Grocery Outlet and other retailers to the neighborhood.
Crime in Hollywood, however, is more about perception than reality, Los Angeles Police Chief Jim McDonnell told attendees at the event.
"Quality-of-life issues, the level of disorder in some cases, those are the kind of things that put fear in people, that raises the anxiety level,” he said.
One of Hollywood’s strategies for boosting safety is to rely on police only for the most serious problems and leave the rest to “ambassadors," or people trained and paid by the business district to quickly clean up low-risk but high-impact situations that can derail a day of sightseeing.
The Hollywood Partnership is also adding a network of closed-circuit television cameras to monitor activity across all 80 blocks.
Funding for cameras, private security and marketing will come from a mix of public and private dollars. The Hollywood Partnership wants to add an extra 1% to 3% tax to purchases made within a special district, with plans to take it to the City Council next year.
The proposed tourist tax joins a proposed doubling of tax credits for film and television production based in the state; officials hope such funds will kick in in time to make a difference ahead of the event lineup planned for Los Angeles.
“It’s not enough to make a difference to the consumer, but collectively, it will make a huge difference in the neighborhood,” Rawson said.