July 18, 2025 Breaking News, Latest News, and Videos

Santa Monica City Council Bends On Living Wage For 710 Wilshire Development:

Whenever a developer enters into a development agreement (DA) with the City of Santa Monica, it understands certain concessions must be made before earning its zoning ordinance exceptions from City Hall. The developer of a proposed hotel just east of the downtown may have to make quite a large concession after a divisive vote at City Hall on Tuesday night.

That concession? A 65-cent per hour increase in wages for hospitality workers employed at the hotel.

The City Council knew it was in for a long night with the 710 Wilshire development – a proposed 285-room hotel on Seventh Street and Wilshire Boulevard – on its special meeting agenda on March 20. After nearly four-and-a-half hours of deliberations and discussions, the council narrowly voted for the 710 Wilshire DA to include a requirement to pay hospitality workers $11.29 or $12.54 per hour.

Those offered benefits would receive the lower rate.

Under the original proposal, the DA would have required prospective employees to be offered an hourly wage of $10.64 with benefits or $11.89 without.

Proponents who attended Tuesday’s meeting in Council Chambers in support of the future workers campaigned for a livable wage, a flat rate of $14.97 per hour.

Voting in favor of the $11.29 and $12.54 wages were Mayor Richard Bloom and Council members Bobby Shriver, Bob Holbrook, and Pam O’Connor.

The naysayers – Mayor Pro Tem Gleam Davis and Council members Kevin McKeown and Terry O’Day – all worried the approved hourly wages were not high enough for employees to afford to live in Santa Monica, meaning they would have to commute from a surrounding community and potentially exasperate the City’s traffic ills.

Interestingly enough, the going rate for those hired by non-local developers who have contracts with the City is $13.54 per hour, or $2.29 per hour more than the hourly wage for a prospective employee with benefits at 710 Wilshire.

A key issue in the debate on the dais was whether the imposed hourly wage would be so high as to place the developer of the proposed 710 Wilshire project – Maxser and Company – at a competitive disadvantage.

The four ‘yes’ votes were concerned that the $14.97 per hour suggestion would result in the project not being able to operate in the black.

Those in favor of the higher hourly wages said the developer and property owner, Alexander Gorby, will earn so much money from the enterprise that he could afford the $14.97 per hour wages. Even more, it was argued $14.97 per hour, or about $30,000 per year, was the bare minimum for an employee to work, live, shop, and enjoy Santa Monica.

Conversely, representatives of the Chamber of Commerce stated future hotel developers might avoid building in Santa Monica if the required hourly wages tickled the $15 mark.

The staff report indicated non-tipped union employees working at Santa Monica hotels earn between $9 and $14.10 per hour; non-tipped non-union employees earn between $9 and $10.25 per hour.

Despite the 4-3 council vote, the issue is not fully settled, as the developer still has to agree to the recommended increase of living wages for future hospitality employees.

According to the staff report to council members, all projects in float-up discussions must include a living wage provision in its DA.

“The City has an existing Living Wage Ordinance but like the vast majority of cities in California and around the nation, the Ordinance is limited to ‘business assistance’ living wage where the requirement is triggered only if a private project receives public funding assistance, is a City contractor, or is providing a service on City property,” the staff report read. “Santa Monica’s Living Wage Ordinance applies to all contractors providing services to the City in excess of $54,200. The FY2011-12 wage rate is $13.54/hr.”

Also stated in the staff report – the DA must balance offering a living wage with ensuring that the proposed hotel is not placed at a “competitive advantage” as a result.

“The purpose of the living wage provision in the Development Agreement is to ensure that the proposed hotel provides its workers fair and reasonable compensation comparable to similar Santa Monica hotels and hotels in nearby communities without putting the proposed hotel at a competitive disadvantage,” it stated.

If completed with current proposals intact, 710 Wilshire would include: 15,600 square feet of ground floor retail and restaurant space; historic preservation of the Landmark Santa Monica Historic Building; a local hiring program for construction and permanent employees; two paid internships per school session for Samohi or SMC students; transportation infrastructure fee of $244,000; Silver LEED certification; “EV Ready” parking spaces; shared parking; discounted rates on hotel meeting rooms for Santa Monica-based groups; and a slew of Transportation Demand Management measures.

in News
<>Related Posts

Man Arrested in Brentwood for Impersonating Firefighter During Palisades Fire

July 18, 2025

July 18, 2025

The suspect faces at least 28 criminal counts—including 23 felonies—spanning incidents from 2023 to May 2025 Federal and local law...

West Coast Premiere of ‘The Opposite of Love’ Opens at Hudson Backstage Theatre

July 18, 2025

July 18, 2025

Produced by Neil Gooding Productions, behind shows like Back to the Future: The Musical, the play runs Thursdays through Saturdays at...

Study Highlights Economic Impact of Cap-and-Trade Extension in Los Angeles

July 18, 2025

July 18, 2025

Governor Gavin Newsom and legislative leaders are pushing to reauthorize the program this year, citing its role in generating 287,000...

Film Review: Superman

July 17, 2025

July 17, 2025

“This movie is packed with storyline, Superman lore, meaningful objects, and action.” writes Kathryn Whitney Boole Rated PG-13129 MinutesReleased July...

Multiple Drug Arrests Reported in Palisades Park in Recent Weeks

July 17, 2025

July 17, 2025

SMPD Reported Several of the Arrests Between June 29 and July 5 The Santa Monica Police Department reported several drug-related...

(Video) Did You Know Emma Chamberlain’s Coffee Shop is in Century City?

July 17, 2025

July 17, 2025

The outpost is a first for the popular influencer Did You Know Emma Chamberlain’s Coffee Shop is in Century City?...

Mayor Bass Hails National Guard Withdrawal as Victory for Unity

July 17, 2025

July 17, 2025

The Pentagon’s decision to reduce the troop presence follows weeks of legal challenges and public demonstrations Mayor Karen Bass celebrated...

DUI Checkpoints to be Conducted Across LA This Weekend

July 16, 2025

July 16, 2025

The LAPD selects checkpoint sites based on data indicating high incidents of impaired driving-related crashes and arrests The Los Angeles...

SMPD to Conduct Bicycle and Pedestrian Safety Operation on Friday

July 16, 2025

July 16, 2025

The focus will be on speeding, illegal turns, failing to yield or provide right of way to cyclists or walkers,...

Dodgers to Host Back to School Bash for Fire-Affected Families

July 16, 2025

July 16, 2025

The free event will offer free groceries, school supplies, outfits, haircuts, medical screenings, and carnival rides The Los Angeles Dodgers...

LA Sees Second Straight Year of Homelessness Decline, Leaders Celebrate Progress

July 16, 2025

July 16, 2025

The survey, designed by the University of Southern California, reported a 17.5% drop—the largest two-year decrease on record The Los...

LAPD Seeks Missing 63-Year-Old Man Known to Frequent Playa Vista

July 15, 2025

July 15, 2025

His family last heard from him via a group text on June 22 The Los Angeles Police Department’s Missing Persons...

Santa Monica Offers City-Owned Properties for Affordable Housing Development

July 15, 2025

July 15, 2025

The move aims to address the city’s Regional Housing Need Assessment of 8,895 units, with a goal of producing at...

California Hits Two-Thirds Clean Energy Milestone

July 15, 2025

July 15, 2025

This year, clean energy has powered the state for an average of seven hours daily, with over 90% of days...

Venice Beach to Host First Medal at 2028 Olympics

July 15, 2025

July 15, 2025

Venice Beach, known for its vibrant boardwalk, will kick off the 844 ticketed events, hosting the triathlon along its coastline...