So let me get this straight, the City of Santa Barbara will bend over backwards in providing funds and services to illegal immigrants and homeless (bums), but will squeeze local businesses into bankruptcy?
Oh that’s right, adding to the list of City benefactors are NGO’s, Environmental Groups and City Employee Unions? Something is really wrong here, whereby you have a smug, arrogant city administrator, McAdoo, who is a non-attorney, claiming the business owners have “no merit” in their lawsuit?
Ya, those pesky taxpaying business owners want to remodel a city owned dump, and offer a service and product in a historic setting that we can all be proud of, offering locals jobs and filling City coffers. What’s the matter with them?
Classic example of the tail wagging the dog and misguided priorities.
The mindless bureaucrats negotiating the harbor lease are the same yahoos who forced the elephant bar out of business then refused to negotiate a realistic rent with the replacement restaurant operator. They drove him out of business too. Now the building sits and slowly rots into the ground instead of producing jobs, taxes, income. Fools! If this was managed by a private company The agent in charge would have been fired long ago.
Quote "...the City’s recent history of failed quasi-private endeavors like Paseo Nuevo, Bellosguardo, Flightline at the airport, and State Street, ...."
Another Quote "...the restaurant landscape in Santa Barbara was very different when the Funk Zone was a collection of warehouses and industrial spaces ....""""
Here comes the I TOLD YOU SO.
The City of Santa Barbara going back to former Mayor Blum, has elected Mayors and Council who could give a heck about the overall long term health of the City Core. The street grid has collapsed and is both dis-inviting to locals as well as tourists. The group Cars Are Basic, Inc. predicted the outcome of traffic and business at the beach front when the fight over the Entrada Project was ongoing. CAB was at every "outreach" and city Council meeting. It is both unfortunate and a bit disconcerting to recognize every prediction by CAB has become reality., When forced to narrow streets as a test case.proving their contention both the Mayor and former Traffic Engineer thumbed their noses and went ahead with the now proven failure.
How sad is it that since COVID every Council Majority has voted to a) take as much supposed tax profit from State St. and collateral street businesses, b) bought the failure called RHNA and the c) the failure called Vision Zero (complaints from San Jose all the way to San Diego.
This fight is not about the Harbor Restaurant. This is about both social and fiscal mismanagement that started 40 plus years ago. It is about a City who the supposed "we know better" puffed shirts elected council's that thought "pretty" and Santa Barbara is so "unique" even the worst of policies would never touch both the economy as well as the social structure. You elected the likes of Williams, Hart, Falcone, Garcia, Blum, Schneider, Murillo. Recently Sneddon, Gutierrez, Harmon, Santamaria, Jordan, Garcia and the supposed businessman Freidman.
The long term outcomes of their collective city management has been failure.
The ideological bent that has created this outcome is amazing. The Deficit of a city that was and is so full of itself continues. The rebellion up and down the Coast of Calif. over RHNA is growing, and even the likes of Newsom hides and runs from press conferences that list the cities that have had it.
As the State of Calif. piles more and more $Billion deficits, as the Federal Gov. continues to tighten on out of control spending, as the producing sector from the middle class to Corp. structures flee the not so great state because of punishing taxes (did someone mention the Harbor Rest.?) where will be the long term operating income?
Destruction for "pretty" and "we can always tax more" is a fools game. Remember this 40 plus year accelerating out of control train failure the next time you vote.
Buyer beware is the local mantra. Wonder the findings of the Inspection Report, or was it knowingly waived by the City aware of infrastructure and other existing problems? Who were the inspectors?
Real Estate inspections are another expensive, mandated regulatory joke in my one experience. I paid several thousands for 4 inspections prior to planning to sell my home. On arrival inspectors ask for their fee upfront and handed me a receipt, along with a checked off report. When I asked “Don’t you need or want to tour, to inspect, to see?” The answer was a version of “No need, I can see your home is well maintained, and all improvements permitted”. The mold inspector did leave 3 machines for a week. Each inspector was referred to me by RE Brokers seeking the listing.
Who to trust? Certainly not after-hour, off-duty City and County employees making an extra few thousand dollars as inspectors; or relatives of realtors.
I finally got an honest, comprehensive inspection by a respected engineer and builder. Now I’m told all I need is an occupancy permit, after living here since 1988. Our local government is so #%!#!
Let’s hope buyers can find reputable inspectors.
The Harbor Restaurant is a community gem; beautifully renovated!
I read this article titled "A Real Climate Change – By the City –Is Needed"
by David McCalmont and I have a supporting title "A Fujita 5 Tornado
To Wipe-Out the Public Corruption is Needed in this City" and I quote Mr. McCalmont
"Let’s hope this legal action leads to a better climate for all who live, work, and do business in Santa Barbara!" I have read the entire legal Complaint and what it misses is that the SB City
and the SB County are both responsible for the Break-Down of Business Environment in
the area because of Public Corruption. Any doubt read former FBI Executive Tom Parkers Article
Just read where Newsom has ordered the dropping of their lawsuit against the Trump administration over the High Speed Rail con job. Gee, wonder if it is bc the discovery phase would blow the lid off of all the grift, theft, corruption and piggish behavior of Dem officials and their supporters, Unions and Environmentalists?
I have a prediction for 2026, the grift in California will make the Minnesota Somali scam look like petty theft in comparison!
It’s time that all of us who own property, residential or commercial, to start fighting the insanity of the city and or county. The taxes that they have abd are getting is insane especially since I see very little, except the employees getting absurd wages,that we are getting.
The City will never “cooperate” with local businesses. The City sees local merchants as a cash cow that can be used to fund the City’s illogical schemes and cover its mismanagement. As they say, when you lay down with dogs, you get up with fleas.
The Republican Party of Santa Barbara County used to hold its meetings at Flightline, the proprietor of Flightline is a Republican, John Thyne is a Republican and has defended Network Medical (when two days before their annual fundraiser at Marjory Luke Theater SB Junior High with speaker Robert Lavatino MD, the democrat CEO of the SBUSD Steve Vance cancelled the rented space. John Thyne took the case and argued successfully and the show went on.
Thank you, David. Excellent piece and I agree completely with you. Btw, a little bit of personal history with The Harbor Restaurant. Way back when I was sixteen (1969) they used to have lunch time modeling shows courtesy of LaBelle Modeling Agency at The Harbor. I did them, modeling these amazing creations from a boutique called Narcissus on Carrillo near San Andres. I learned a lot about handling drunken men who wanted to touch the clothes to make sure they would fit their wives — The Harbor made stiff cocktails. I would smile, back away out of reach and tell him his wife (probably meaning his much younger secretary) would look fabulous in it and seal the deal. And that was a great lesson to learn in a protected environment that stayed with me when I went to the big cities. And incidentally, it’s why I never had any patience with MeToo. Just say no. Sweetly. They’ll go onto another woman. Why are we willing to let our corrupt local government wreck what is best about this magical little city with their promises of making it affordable for everyone, when it never will be?
I can see both sides of this argument, but I have to say that by tying the city to a percentage of sales that it would make them more app to create a more welcoming environment. Canceling the 90 minute free parking and other impediments to a better experience at one of “their” businesses would only help to improve sales, and therefore increase monthly rents paid to them. I say decreasing taxpayer payments to local NGO‘s and increasing investment in local infrastructure is a much better operating platform for the city and county to invest in. Stop the grift! It all starts locally.
Two comments:1) if the City feels it has a duty to ‘get the most out of each asset’ why is it contemplating ‘giving away’ Paseo Nuevo to developers? 2) Since the city feels it is entitled to a top level return on their rental property investment and that it is their responsibility to do so, maybe they should remember that concept of ‘top level returns’ during their talks about ‘rent control’ and apply it to other rental property owners in the City besides themselves.
Opening State Street would boost tax revenue to the city. The city is selective in where and when it is interested in maximizing revenue and when and where it is Interested in an environmental, equity or other priority.
Nothing compelled Thyne into purchasing it. The contract was a transfer of the lease to him. He had to sign off on it. Now he is saying, Give me better terms because business is down. Ok, let me figure this out . . .
I am a patron. I go to him and say, "Hey, I know you wanted $100 for the check, but, you know, the economy is bad, and I think we should negotiate the check." Do you think he would negotiate the check?
He is asking for WELFARE. That is it, nothing more, nothing less. What is next? Is his business too big to fail?
The city is not in the restaurant business. The city is in the leasing business. They are doing their job.
Imagine if the city had a lease with Planned Parenthood and then Planned Parenthood said, "Business is down, give us a cut in rent." I suspect you would argue, "They signed the lease, they should pay the lease."
Planned parenthood is not a business dependent on sales to be profitable but is propped up (80%) by government handouts and contributions. Really poor example.
So you are now saying that if I am a business that depends on sales, the city should renegotiate every time I demand it to?
So, if Sonos leased a building and wanted a rent reduction, would you be ok with it?
So, if Google or Amazon leased a building and wanted a rent reduction, would you be ok with it?
This is a principled concept. Either the city negotiates with all or none. You are also asking the city to subsidize a bad decision. What happened to FAFO? Didn't Thyne FA, and now he needs to find out.
Most companies do not lease from the city genius. You are right though, the city is not in the restaurant business and know nothing of what it takes to be successful.
Genius. Pfft. You are trying so hard to win by ignoring the prompt. You are showing that you are NOT principled.
If ANY business has a lease with the CITY, you want the city to renegotiate the terms because things have changed for that business, and the business is making demands.
or
If ANY business that has Thyne as the owner, you want the city to renegotiate the terms because he overpaid for a business, one that investors will not even invest in.
Pfft.
I guess SBIF should renegotiate the terms on Fiesta 5 because people are staying home streaming instead of going to the movies.
I guess the people who were renting out the parks for events on the beach should ask for a refund if they don't sell enough tickets.
I channeled my inner John Thomas and Googled it and that is what came up. Only 18% of revenue from fees and the rest from gov grants and contributions. Is that wrong? I rarely Google anything.
I googled Google and it was something like 25% donations from folks like the chip implant vax guy Bill Gates. Well, that was actually Wikipedia. So yes, contributions. Your 80% "government funding" is just way off.
I think we can see the result of the city’s management of resources, both directly and indirectly by looking at the vacancies on State street and other areas around town, as well as what they’re looking to do with rent control (ie, impact landlords, not reduce the contribution direct and indirect costs from the city). Not all empty buildings, or soon to be empty buildings are city owned, but all are affected by direct and indirect city fees, regulations, bureaucracy, and processes. Unfortunately, these are not unique to SB, but are one of the reasons that remote businesses are succeeding: can we say Amazon, UPS, FedEx. Of course, an additional competitive issue, ironically, is the growth of non profits in SB: they don’t typically pay property taxes, thus increasing the city’s burden of costs on all other property owners, including businesses. The message is: the capital allocation towards a higher ROI will continue, and business people will vote with their feet.
On State Street, the city owns the theater that SBIFF is in. That they have direct impact on.
Their direct and indirect fees can have an impact. But why not try to be accurate rather than spew generalizations?
Fees: what are they? The taxes? ROFL. If you are a restaurant, you pay $300 on $1mm in gross receipts. Yes, 3/10th of 1 percent. If that makes or breaks a restaurant, wow. Permit fees? Is that the complaint? Those are minor in the scheme of things.
Time for permit approval? Of course, everyone would like things to be available instantly and to have only one review. I was fortunate to have worked with two excellent architects whom I had used to get the approval done in one review. IIRC it took about 30 days. Ok, I would have liked it done in 10 days, but I planned accordingly.
IIRC, the only NGOs that do not pay property tax are churches. The rest do.
Business people vote with their wallets, not with their feet. They will allocate capital where they feel they can get the best return with the least effort.
Thyne - lawyer and real estate agent. So he's well-versed. The Harbor Restaurant gets pretty marginal reviews. Maybe he should focus on being a better restaurant operator?
This case is even more hilarious when you read the complaint.
"The damages to the Premises were not apparent to the new owners of The Harbor Restaurant when they purchased the business, and they were not disclosed by the City or the former owner."
"From December 2023 through January 2024, The Harbor Restaurant experienced
severe water intrusion as a result of historically heavy rains. The water intrusion revealed the dilapidated nature of the infrastructure of the Premises, including severe mold, outdated wiring, rotted wood and building materials, mildewed carpets, broken equipment, and failed framing."
Let me understand this, from their own admission. A highly knowledgeable and experienced real estate broker didn't find this in the inspection? Or did they skip the inspection?
I suggest people read this suit—especially paragraph 59.
No matter how you slice it or dice it, Thyne and his partners purchased the place knowing the terms of the lease and are now asking to have them changed. As a citizen of the city, I would ask the city, "Why would you consider subsidizing this business?" If so, "Let me talk to you about the expenses of mine that I want subsidized!"
David, completely agree with you that there is a need for a total climate change in the city administration. I was involved the the owners of the lease for reopening of the Harbor restaurant. The lease was even then skewed to the benefit of the City. However, the potential revenue base made the lease at that time workable. As you stated there was no funk zone and the competition was limited in the beach area, Charthouse, Espana were the other major players. BTW our group didd not originally bid on the Harbor site. We wanted the Moby Dicks location. We also had a very able Wharf manager for the city, Paul Nefsted. He worked with us on repairs and improvements.
I agree with your assessment of McAdoo, she is a professional, no business background individual who does not understand business. Just her stand on Paseo is evidence of that. Why should we let her be the arbitrator of a solution to the Harbor . I would take it the council as well as continue with all legal actions.
Hope that the City face reality and renegotiates the lease. Cheers
So let me get this straight, the City of Santa Barbara will bend over backwards in providing funds and services to illegal immigrants and homeless (bums), but will squeeze local businesses into bankruptcy?
Oh that’s right, adding to the list of City benefactors are NGO’s, Environmental Groups and City Employee Unions? Something is really wrong here, whereby you have a smug, arrogant city administrator, McAdoo, who is a non-attorney, claiming the business owners have “no merit” in their lawsuit?
Ya, those pesky taxpaying business owners want to remodel a city owned dump, and offer a service and product in a historic setting that we can all be proud of, offering locals jobs and filling City coffers. What’s the matter with them?
Classic example of the tail wagging the dog and misguided priorities.
LT and others ..... the Harbor Restaurant is ICONIC. Had family Birthday parties
there .... family get togethers .... or went up to Long Boards for a Beer with running
partners. Best view in ALL OF SANTA BARARA. The City should pay/help someone to
Keep that Restaurant going. Alot of memories there ..... what a shame.
McAdoo has spent her entire career in public service. One can hardly expect her to appreciate what it takes to earn a buck vs take a buck.
The mindless bureaucrats negotiating the harbor lease are the same yahoos who forced the elephant bar out of business then refused to negotiate a realistic rent with the replacement restaurant operator. They drove him out of business too. Now the building sits and slowly rots into the ground instead of producing jobs, taxes, income. Fools! If this was managed by a private company The agent in charge would have been fired long ago.
Great comment. I did not know about the e-bar but I am not surprised.
Quote "...the City’s recent history of failed quasi-private endeavors like Paseo Nuevo, Bellosguardo, Flightline at the airport, and State Street, ...."
Another Quote "...the restaurant landscape in Santa Barbara was very different when the Funk Zone was a collection of warehouses and industrial spaces ....""""
Here comes the I TOLD YOU SO.
The City of Santa Barbara going back to former Mayor Blum, has elected Mayors and Council who could give a heck about the overall long term health of the City Core. The street grid has collapsed and is both dis-inviting to locals as well as tourists. The group Cars Are Basic, Inc. predicted the outcome of traffic and business at the beach front when the fight over the Entrada Project was ongoing. CAB was at every "outreach" and city Council meeting. It is both unfortunate and a bit disconcerting to recognize every prediction by CAB has become reality., When forced to narrow streets as a test case.proving their contention both the Mayor and former Traffic Engineer thumbed their noses and went ahead with the now proven failure.
How sad is it that since COVID every Council Majority has voted to a) take as much supposed tax profit from State St. and collateral street businesses, b) bought the failure called RHNA and the c) the failure called Vision Zero (complaints from San Jose all the way to San Diego.
This fight is not about the Harbor Restaurant. This is about both social and fiscal mismanagement that started 40 plus years ago. It is about a City who the supposed "we know better" puffed shirts elected council's that thought "pretty" and Santa Barbara is so "unique" even the worst of policies would never touch both the economy as well as the social structure. You elected the likes of Williams, Hart, Falcone, Garcia, Blum, Schneider, Murillo. Recently Sneddon, Gutierrez, Harmon, Santamaria, Jordan, Garcia and the supposed businessman Freidman.
The long term outcomes of their collective city management has been failure.
The ideological bent that has created this outcome is amazing. The Deficit of a city that was and is so full of itself continues. The rebellion up and down the Coast of Calif. over RHNA is growing, and even the likes of Newsom hides and runs from press conferences that list the cities that have had it.
As the State of Calif. piles more and more $Billion deficits, as the Federal Gov. continues to tighten on out of control spending, as the producing sector from the middle class to Corp. structures flee the not so great state because of punishing taxes (did someone mention the Harbor Rest.?) where will be the long term operating income?
Destruction for "pretty" and "we can always tax more" is a fools game. Remember this 40 plus year accelerating out of control train failure the next time you vote.
Good article Mr. McCalmot
Buyer beware is the local mantra. Wonder the findings of the Inspection Report, or was it knowingly waived by the City aware of infrastructure and other existing problems? Who were the inspectors?
Real Estate inspections are another expensive, mandated regulatory joke in my one experience. I paid several thousands for 4 inspections prior to planning to sell my home. On arrival inspectors ask for their fee upfront and handed me a receipt, along with a checked off report. When I asked “Don’t you need or want to tour, to inspect, to see?” The answer was a version of “No need, I can see your home is well maintained, and all improvements permitted”. The mold inspector did leave 3 machines for a week. Each inspector was referred to me by RE Brokers seeking the listing.
Who to trust? Certainly not after-hour, off-duty City and County employees making an extra few thousand dollars as inspectors; or relatives of realtors.
I finally got an honest, comprehensive inspection by a respected engineer and builder. Now I’m told all I need is an occupancy permit, after living here since 1988. Our local government is so #%!#!
Let’s hope buyers can find reputable inspectors.
The Harbor Restaurant is a community gem; beautifully renovated!
I read this article titled "A Real Climate Change – By the City –Is Needed"
by David McCalmont and I have a supporting title "A Fujita 5 Tornado
To Wipe-Out the Public Corruption is Needed in this City" and I quote Mr. McCalmont
"Let’s hope this legal action leads to a better climate for all who live, work, and do business in Santa Barbara!" I have read the entire legal Complaint and what it misses is that the SB City
and the SB County are both responsible for the Break-Down of Business Environment in
the area because of Public Corruption. Any doubt read former FBI Executive Tom Parkers Article
in the Independent "https://www.independent.com/2020/02/22/perceptions-of-political-corruption/" which I have pounded here in the SB Current. This is the overriding problem
now in SB and the State of California and other states like Minnesota>Billions Gone!
https://x.com/DonaldJTrumpJr/status/2004977815780032963 (Minnesota Fraud Has Gone Viral)
But it is much worse in California by orders of Magnitude
https://x.com/EricLDaugh/status/2003826137852498116 (Over $70 Billion Gone By Fraud?)
Welcome to California the Fraud Capital of the United States.
https://x.com/nettermike/status/2005049200812208266
I am like a Broken Record like the Broken CALI-FRAUD State.
Howard Walther, Member of a Military Family
Just read where Newsom has ordered the dropping of their lawsuit against the Trump administration over the High Speed Rail con job. Gee, wonder if it is bc the discovery phase would blow the lid off of all the grift, theft, corruption and piggish behavior of Dem officials and their supporters, Unions and Environmentalists?
I have a prediction for 2026, the grift in California will make the Minnesota Somali scam look like petty theft in comparison!
LT as stated. CALI-FRAUD is ORDERS OF MAGNITUDE GREATER THAN
MINNESOTA!! You are Dead-Center>>>
"...the grift in California will make the Minnesota Somali scam look like petty theft in comparison!"
It’s time that all of us who own property, residential or commercial, to start fighting the insanity of the city and or county. The taxes that they have abd are getting is insane especially since I see very little, except the employees getting absurd wages,that we are getting.
The City will never “cooperate” with local businesses. The City sees local merchants as a cash cow that can be used to fund the City’s illogical schemes and cover its mismanagement. As they say, when you lay down with dogs, you get up with fleas.
Cambrai, Thank you,
I was about to make that very point.
The Republican Party of Santa Barbara County used to hold its meetings at Flightline, the proprietor of Flightline is a Republican, John Thyne is a Republican and has defended Network Medical (when two days before their annual fundraiser at Marjory Luke Theater SB Junior High with speaker Robert Lavatino MD, the democrat CEO of the SBUSD Steve Vance cancelled the rented space. John Thyne took the case and argued successfully and the show went on.
Thank you, David. Excellent piece and I agree completely with you. Btw, a little bit of personal history with The Harbor Restaurant. Way back when I was sixteen (1969) they used to have lunch time modeling shows courtesy of LaBelle Modeling Agency at The Harbor. I did them, modeling these amazing creations from a boutique called Narcissus on Carrillo near San Andres. I learned a lot about handling drunken men who wanted to touch the clothes to make sure they would fit their wives — The Harbor made stiff cocktails. I would smile, back away out of reach and tell him his wife (probably meaning his much younger secretary) would look fabulous in it and seal the deal. And that was a great lesson to learn in a protected environment that stayed with me when I went to the big cities. And incidentally, it’s why I never had any patience with MeToo. Just say no. Sweetly. They’ll go onto another woman. Why are we willing to let our corrupt local government wreck what is best about this magical little city with their promises of making it affordable for everyone, when it never will be?
EXCELLENT ARTICLE DAVID,,!!!
Thanks, but I thought, Mr. Mike, you were pilgrimaging at the monastery this week. Isn't the internet taboo behind the cloistered walls?
Why? Because the City has engaged in a Pay-For-Play scam in which subsidized rent is exchanged for political cover by the renter class.
I can see both sides of this argument, but I have to say that by tying the city to a percentage of sales that it would make them more app to create a more welcoming environment. Canceling the 90 minute free parking and other impediments to a better experience at one of “their” businesses would only help to improve sales, and therefore increase monthly rents paid to them. I say decreasing taxpayer payments to local NGO‘s and increasing investment in local infrastructure is a much better operating platform for the city and county to invest in. Stop the grift! It all starts locally.
Two comments:1) if the City feels it has a duty to ‘get the most out of each asset’ why is it contemplating ‘giving away’ Paseo Nuevo to developers? 2) Since the city feels it is entitled to a top level return on their rental property investment and that it is their responsibility to do so, maybe they should remember that concept of ‘top level returns’ during their talks about ‘rent control’ and apply it to other rental property owners in the City besides themselves.
Opening State Street would boost tax revenue to the city. The city is selective in where and when it is interested in maximizing revenue and when and where it is Interested in an environmental, equity or other priority.
Nothing compelled Thyne into purchasing it. The contract was a transfer of the lease to him. He had to sign off on it. Now he is saying, Give me better terms because business is down. Ok, let me figure this out . . .
I am a patron. I go to him and say, "Hey, I know you wanted $100 for the check, but, you know, the economy is bad, and I think we should negotiate the check." Do you think he would negotiate the check?
He is asking for WELFARE. That is it, nothing more, nothing less. What is next? Is his business too big to fail?
The city is not compelled to do anything.
Perhaps the city should run the restaurant.
The city is not in the restaurant business. The city is in the leasing business. They are doing their job.
Imagine if the city had a lease with Planned Parenthood and then Planned Parenthood said, "Business is down, give us a cut in rent." I suspect you would argue, "They signed the lease, they should pay the lease."
Planned parenthood is not a business dependent on sales to be profitable but is propped up (80%) by government handouts and contributions. Really poor example.
So you are now saying that if I am a business that depends on sales, the city should renegotiate every time I demand it to?
So, if Sonos leased a building and wanted a rent reduction, would you be ok with it?
So, if Google or Amazon leased a building and wanted a rent reduction, would you be ok with it?
This is a principled concept. Either the city negotiates with all or none. You are also asking the city to subsidize a bad decision. What happened to FAFO? Didn't Thyne FA, and now he needs to find out.
Most companies do not lease from the city genius. You are right though, the city is not in the restaurant business and know nothing of what it takes to be successful.
Genius. Pfft. You are trying so hard to win by ignoring the prompt. You are showing that you are NOT principled.
If ANY business has a lease with the CITY, you want the city to renegotiate the terms because things have changed for that business, and the business is making demands.
or
If ANY business that has Thyne as the owner, you want the city to renegotiate the terms because he overpaid for a business, one that investors will not even invest in.
Pfft.
I guess SBIF should renegotiate the terms on Fiesta 5 because people are staying home streaming instead of going to the movies.
I guess the people who were renting out the parks for events on the beach should ask for a refund if they don't sell enough tickets.
You seem to love corporate welfare.
80% is way off. More like 1/2 of that - but I agree that's not a good example.
I channeled my inner John Thomas and Googled it and that is what came up. Only 18% of revenue from fees and the rest from gov grants and contributions. Is that wrong? I rarely Google anything.
I googled Google and it was something like 25% donations from folks like the chip implant vax guy Bill Gates. Well, that was actually Wikipedia. So yes, contributions. Your 80% "government funding" is just way off.
I think we can see the result of the city’s management of resources, both directly and indirectly by looking at the vacancies on State street and other areas around town, as well as what they’re looking to do with rent control (ie, impact landlords, not reduce the contribution direct and indirect costs from the city). Not all empty buildings, or soon to be empty buildings are city owned, but all are affected by direct and indirect city fees, regulations, bureaucracy, and processes. Unfortunately, these are not unique to SB, but are one of the reasons that remote businesses are succeeding: can we say Amazon, UPS, FedEx. Of course, an additional competitive issue, ironically, is the growth of non profits in SB: they don’t typically pay property taxes, thus increasing the city’s burden of costs on all other property owners, including businesses. The message is: the capital allocation towards a higher ROI will continue, and business people will vote with their feet.
Wait . . . huh?
On State Street, the city owns the theater that SBIFF is in. That they have direct impact on.
Their direct and indirect fees can have an impact. But why not try to be accurate rather than spew generalizations?
Fees: what are they? The taxes? ROFL. If you are a restaurant, you pay $300 on $1mm in gross receipts. Yes, 3/10th of 1 percent. If that makes or breaks a restaurant, wow. Permit fees? Is that the complaint? Those are minor in the scheme of things.
Time for permit approval? Of course, everyone would like things to be available instantly and to have only one review. I was fortunate to have worked with two excellent architects whom I had used to get the approval done in one review. IIRC it took about 30 days. Ok, I would have liked it done in 10 days, but I planned accordingly.
IIRC, the only NGOs that do not pay property tax are churches. The rest do.
Business people vote with their wallets, not with their feet. They will allocate capital where they feel they can get the best return with the least effort.
Thyne - lawyer and real estate agent. So he's well-versed. The Harbor Restaurant gets pretty marginal reviews. Maybe he should focus on being a better restaurant operator?
This case is even more hilarious when you read the complaint.
"The damages to the Premises were not apparent to the new owners of The Harbor Restaurant when they purchased the business, and they were not disclosed by the City or the former owner."
"From December 2023 through January 2024, The Harbor Restaurant experienced
severe water intrusion as a result of historically heavy rains. The water intrusion revealed the dilapidated nature of the infrastructure of the Premises, including severe mold, outdated wiring, rotted wood and building materials, mildewed carpets, broken equipment, and failed framing."
Let me understand this, from their own admission. A highly knowledgeable and experienced real estate broker didn't find this in the inspection? Or did they skip the inspection?
I suggest people read this suit—especially paragraph 59.
No matter how you slice it or dice it, Thyne and his partners purchased the place knowing the terms of the lease and are now asking to have them changed. As a citizen of the city, I would ask the city, "Why would you consider subsidizing this business?" If so, "Let me talk to you about the expenses of mine that I want subsidized!"
David, completely agree with you that there is a need for a total climate change in the city administration. I was involved the the owners of the lease for reopening of the Harbor restaurant. The lease was even then skewed to the benefit of the City. However, the potential revenue base made the lease at that time workable. As you stated there was no funk zone and the competition was limited in the beach area, Charthouse, Espana were the other major players. BTW our group didd not originally bid on the Harbor site. We wanted the Moby Dicks location. We also had a very able Wharf manager for the city, Paul Nefsted. He worked with us on repairs and improvements.
I agree with your assessment of McAdoo, she is a professional, no business background individual who does not understand business. Just her stand on Paseo is evidence of that. Why should we let her be the arbitrator of a solution to the Harbor . I would take it the council as well as continue with all legal actions.
Hope that the City face reality and renegotiates the lease. Cheers