The following is response to the article, "Beverly Hills’ Bad Medicine," published on Tuesday, Aug. 17.
The
article looks at only one side of the issue. Beverly Hills is a
community of 35,000 residents with a day time population of up to
450,000 and with more vehicles passing through everyday then are on the
405 at LAX.
The
city has a lot of revenue to be sure and nothing here should be
perceived as a complaint about lack of resources. On the other hand it
takes a lot of money to support the services to such a huge day time
activities and special events ranging from traffic control to endless
police services to the United Stats to assist with protection of
visiting US politicians and foreign visiting dignitaries.
I am
the former City Manager of Beverly Hills now retired after 40 years in
local government having served a diverse range of communities. I am the
person that started the discussion on this issue and have an obligation
to defend the issue. The issue has nothing to do with an aversion to
medical uses, it has everything to do with the long term economic
health of Beverly Hills.
Some of the key issues in medical uses are:
- Medical
uses generate very high traffic and parking demands. Most medical
buildings are older and do not meet these demands putting the burden on
the streets, other businesses and the public parking. In addition
these buildings tend to charge very high parking rates pushing most of
the patients into the parking intended for the retail and restaurants.
It also tends to frustrate other businesses that often do not want to
locate near medical because of these problems and can reduce rents on
other properties. It causes sever problems in the residential
neighborhoods adjacent to these medical buildings as patients and
employees use the streets for cheaper parking. - These
patients do not generate as much spin off business as you suggest.
Most, but certainly not all, patients see their doctor when ill or
having a medical procedure. Following plastic surgery patients usually
have bandages and black and blue marks. These medical patients tend to
not go shopping or eating because of the illness, procedure and
appearance following the medical visit. Patients with any extensive
surgery are not allowed to stay in a hotels because hotels do not meet
the State standards for medical recovery. As a result medical uses
create large impacts and little revenue to offset those impacts. - Many
of the employees at medical offices are often not the highest paid and
even many doctors make less today then what people perceive. These
employees are not shopping at Louis Vuitton, eating a Spagos or staying
in five star hotels. The employees from much higher paying industries
like entertainment do shop, eat and stay in hotels. - Because
of an old tax structure, medical uses in Beverly Hills, unlike the City
of Los Angeles, pay very little in taxes either from business licenses
or sales and hotel taxes as noted above. - Medical
uses typically can afford to pay more in rents, understandably property
owners tend to prefer to rent to medical for the higher rents. This
pushes out other office uses and exhaust office space to allow other
uses like talent agencies and other entertainment based businesses to
expand and has forced a number out of Beverly Hills. These entrainment
based business do generate clients that shop and eat and stay in hotels
and produce very large tax revenues. It is the entertainment business
and the "rich and famous" nature of Beverly Hills that is the draw for
tourism, events and movie productions. Tourism, events, movies and
clients are the major source of revenue for the city. - Much
of the medical demand is not for plastic surgeons, but, in fact, to
support regular medical practices and the growing space demands for
doctors associated with Cedars Sinai. These are patients with normal
and often serious medical problems, not cosmetic needs. They visit
primarily to be treated and hopefully cured, not to recreate. - The
city is not opposed to medical uses and already has a disproportionate
amount of medical space in regards to its population and small
geographic area. With the growth at Cedars Sinai and the demand it
creates for medical office space, over time the entire city inventory
of office space could be consumed by medical demands. The time to
address this concern is now, not after it is a major problem. I think
you would agree that Beverly Hills reputation and thus its revenue
sources are not built on being the medical support center for Cedar
Sinai. There is almost endless opportunity in the City of Los Angles
for this medical space to locate. I would also note West Hollywood is
struggling with this same issue as a result of medical demands from
Cedar Sinai.
Cities
today, with sever limitations on their taxing authority, must look at
land use from a perspective of establishing a sustainable economy with
as much diversity in that economy as is feasible.
History has
shown it a mistake to put all your economic eggs in one basket. There
are endless examples of communities failing from such circumstances. It
is not only about revenues for the cities, it is about jobs and quality
of life for our citizens. I think these concerns outweigh the profit
motive of the real estate owners who in Beverly Hills can still rent
their buildings for a handsome price.
The relatively low vacancy rate in Beverly Hills even in this terrible economy demonstrates that fact.
Roderick J. Wood, ICMA-CM
ICMA Legacy Leader
Past President Cal-ICMA
Past President League City Manager Department