The council’s decision follows tensions between DTSM and the city, including disputes over parking rate increases and maintenance agreements
The Santa Monica City Council voted 6-1 on Tuesday to remove all six of its appointed board members from Downtown Santa Monica, Inc. and install temporary replacements, citing concerns over transparency and accountability.
The decision, made during a special council meeting, aims to reshape the governance of the nonprofit organization that manages the city’s downtown business improvement district ahead of selecting a new CEO.
The motion, proposed by Councilmember Barry Snell and supported by Mayor Pro Tem Caroline Torosis and Councilmember Dan Hall, removed current DTSM board members Luke M. Cain, Lucian Tudor, Leonid “Leo” Pustilnikov, Michelle Cardiel, Berta Negari, and Jon Farzam. The council appointed Jonathan Gregory, Sean Besser, Hodge Patterson, Gleam Davis, Richard Bloom, and Elaine Polachek as interim board members, with permanent appointments to be finalized at the council’s regular meeting on September 9 after a public application process.
Snell, a former DTSM board member, argued that the current board’s composition, heavily weighted toward property and business owners, has skewed priorities and contributed to downtown’s economic challenges. “The structure has been eroded,” Snell said during the meeting, pointing to high vacancy rates and a lack of discussion on initiatives like digital signage. He emphasized the need for a board with broader community representation to guide DTSM’s future, particularly with the impending selection of a new CEO following Andrew Thomas’s announced resignation.
Public comments during the meeting reflected mixed sentiments. One former DTSM board member supported the motion, urging appointments that align with community needs. Another speaker, a former DTSM and current pier board member, called for a reset to address the downtown’s crisis. However, another former appointee raised concerns about potential ethical violations by the board, advocating for an interim city attorney to investigate.
Mayor Lana Negrete, the sole dissenting vote, expressed unease, stating, “This doesn’t seem like an emergency issue to me. It feels unfair and undermines community trust.” She questioned the urgency of the removals, likening the action to undermining democratic processes. Councilmember Jesse Zwick, while supporting the motion, acknowledged its unusual nature but cited reports of board dysfunction and existential threats to DTSM, such as campaigns to dismantle the assessment district, as justification.
DTSM, a 501(c)(3) nonprofit, oversees maintenance, hospitality, marketing, and economic development programs in downtown Santa Monica, including the Third Street Promenade, with an annual budget of approximately $10 million, primarily funded by downtown property and business assessments. The 13-member board consists of six council-appointed members, six elected by property owners, and one reserved for the city manager or their designee.
The council’s decision follows tensions between DTSM and the city, including disputes over parking rate increases and maintenance agreements. DTSM board members had opposed raising parking fees, arguing it would deter visitors, while the city threatened to reject DTSM’s budget if the agreement was altered. The board’s recent split vote on CEO Andrew Thomas’s contract negotiations, followed by his resignation announcement added to the backdrop of the council’s action.
