*The 2024 Economic Study is considered a DRAFT document until approved and adopted by the City Council. The City Council will be reviewing the DRAFT 2024 Economic Study at the December 2, 2024, City Council meeting.

 The City of West Hollywood commissioned the West Hollywood Economic Study to assess West Hollywood’s economic health and formulate a strategy to strengthen West Hollywood’s economy for all. Significant community engagement led up to this report, with input from all parts of West Hollywood’s economy – businesses large and small from a wide variety of industries, labor unions and advocates, residents, and city staff. The report is also grounded in real estate, employment, demographic, and other data. The result is a five-year plan with a detailed set of short-, medium-, and long-term actions, based on:

• DRAFT Goals: Outcomes that West Hollywood sets out to achieve, and

• DRAFT Strategies: How the City of West Hollywood will achieve those outcomes.

 Economic Study Working Group:

The Project Team worked closely with City staff to recruit and assemble the Economic Study Working Group (hereafter, “Working Group”) to function as a sounding board for the Economic Study. Working Group members represented a wide swath of the West Hollywood business community, including newer and legacy and smaller and larger businesses, businesses from the hospitality, restaurant, cannabis, office and retail industries, nonprofit and labor, commercial real estate, as well as BIPOC-, women-, and LGBTQ+-owned businesses. The Working Group members from businesses included representation from all 5 Commercial Districts (Sunset Strip, Rainbow District, Design District, Mid-City, and Eastside). Over the course of the Economic Study, City staff and the Project Team held three in-person meetings with the Working Group at City Hall. The purpose of the three working group meetings were, respectively, to cover initial findings from community outreach and data analysis, review a Strengths, Weaknesses, Opportunities, and Threats (“SWOT”) Analysis, and review recommended goals and strategies.

To view the Full DRAFT Economic Study Report, please click on the image below:

 History & Background:

• At its January 21, 2020 meeting, the City Council directed staff to perform an Economic Study that includes an assessment of the current economic conditions in the City of West Hollywood, analysis of any gaps that may exist in the local economic structure, and recommendations for support and improvement. The information from the Economic Study would be used to foster sustainable economic development while enhancing the community’s access to local-serving businesses and a diversity of employment opportunities. 
• In March 2020, the LA County Department of Public Health required the immediate closure of numerous businesses to reduce the spread of COVID-19.  Various restrictions on business activity and public gatherings would continue over roughly the next two years. 
• At its December 21, 2020 meeting, the City Council directed staff to evaluate the establishment of a Business Recovery Task Force. 
• At is January 19, 2021 meeting, the City Council directed staff to identify ways in which the City can incentivize and support BIPOC, women, LGBTQ+ people, and West Hollywood residents to maintain and open businesses in West Hollywood.
• At its September 20, 2021 meeting, the City Council directed staff to identify ways to create/mandate affordable commercial spaces in new commercial and mixed use projects among other items targeted to support small businesses.
• In December 2022, the City issued a Request for Proposals (RFP) with responses due in February 2023, for an Economic Study outlining the City’s interest in conducting a Citywide analysis of multiple industries, focused on retail and hospitality (restaurants, bars, clubs), hotel, office, nightlife and entertainment, arts and culture, and events. The City also identified a need to examine existing conditions and future opportunities for five geographic sub-regions: the Sunset Strip, Design District, Rainbow District, Mid-City, and Eastside. 
• In May 2023, after further review of the responses provided, a Supplemental Addendum was sent to all responders, requesting additional information with responses due in June 2023. Additional information was requested regarding Diversity, Equity, Inclusion, and Accessibility (DEIA) as well as Major Event impacts.
• In July 2023, Staff invited all seven respondents to participate in interviews; the top two firms from the initial interview were invited to a second interview. Ultimately, HR&A Advisors was selected to conduct the Economic Study based on their experience, qualifications, approach to the scope of work, interview responses, and fee.  Designing in Color (DCo) was also selected as the DEIA consultant for both the Economic Study and the Strategic Plan. The DEIA Consultant worked collaboratively with the City’s prime consultant for the Economic Study to focus on incorporating diversity, equity, inclusion, and accessibility into the engagement and planning processes, with particular focus on engagement from LGBTQ+, BIPOC, and women-owned business stakeholders.
• At its September 18, 2023 meeting, the City Council directed staff to explore amendments to the Business Tax ordinance to expand incentives for businesses renewing leases in West Hollywood.
• At its October 16, 2023 meeting, the City Council approved agreements for services with HR&A Advisors and DCo to conduct a Citywide Economic Study.
• At its April 15, 2024 meeting, the City Council directed staff to return back upon completion of the Economic Study regarding the framework and guidelines for the creation of a Business Task Force.
• From November 2023 – November 2024, the consultant team conducted the data diagnostic, outreach, focus groups, Strengths, Weaknesses, Opportunities, and Threats (“SWOT”) Analysis, and recommended goals and strategies based on the findings.
• At its December 2, 2024, meeting (link to be added when agenda is posted), the City Council will receive a presentation of the Economic Study.

More Information:

• For questions about the Economic Study, please contact the Business Development Division at Business@weho.org or by phone at (323) 848-6429.
• To submit public comment for the December 2, 2024 City Council meeting, you may email publiccomment@weho.org or submit an E-Comment by visiting www.weho.org/wehotv no later than 12:00 p.m. on the Council meeting day. Note: Written Correspondence and E-Comments will not be read into the record during the City Council meeting; however, correspondence received by 12:00 p.m. will be forwarded to the City Council and posted on the City's website as part of the official meeting record. Your comments and information will become part of the official public record. If you do not want your personal information included in the official record, please do not include your address and/or phone number.