The study, conducted by Economics Research Associates (ERA), indicates that in the District's first year, from its formation in 1996 through 1997, business has improved dramatically across every economic sector including hotel occupancy, restaurant revenues, multiple-screen cinemas sales, tour operations and office property lease rates and occupancies.

Highlights of the ERA study include the following:

• Hotels report occupancies and room revenues moved up by 6%+. -- Restaurants, cafes, coffee shops and fast food revenues were up 14%.
• Retail and services establishments taxable sales increased by 5%. -- Multiple-screen cinemas experienced a 22% increase in business volume.
• Office properties experienced increased lease rates and higher occupancies, accelerating markedly in the beginning of 1998 as properties that were being renovated became available. 
• Owners report new leases in 1998 with rents up to 25% greater than prior occupancies.
• Tour operators reported an increase in customers due to the widening perception that the Hollywood environment is improving.

"Few other economic development agencies in Southern California have chosen to assess themselves in such a rigorous manner, but because Hollywood is one of the most visible urban centers currently being revitalized, we thought it was essential that we measure our progress."

"We formed the BID to improve business in the area," said Steve Ullman, chief executive officer, Grant Parking, and president of the HED board of directors.

"Rather than rely on anecdotal buzz to prove our success, we required hard numbers to demonstrate to the other property owners that we have indeed been successful. By measuring our progress through this study, we hope to set a standard that other BIDs in Los Angeles county can follow."

The numbers in the study -- which was conducted utilizing a wide variety of data sources including property owner surveys, commercial data services and city-collected statistics -- were impacted by several factors affecting the District in its first full year. These factors include:

• Continuing construction of the Metro Rail Red Line subway and resulting impact on surrounding businesses.
• The renovation of several Class-A office buildings for repositioning in the marketplace (many of those efforts were completed during late 1997 and early 1998).
• The closure of the El Capitan Theatre in late 1997 for a stage renovation.

• The reopening of the El Capitan Theatre, the debut of a Disney Store in its street-level retail space (November 1998) and the leasing of the El Capitan's office space, currently underway. 
• The introduction of new attractions such as the Max Factor Building and the Hollywood History Museum (1999) and the continuing success of current attractions such as the recently renovated Guinness Museum and Ripley's Believe It or Not!
• The development of the TrizecHahn Highland and Hollywood project (opening 2001), anticipated to attract other high-quality retailers to the area.
• The opening of the MTA Red line at Vine (May 1999) and Highland  (May 2000), bringing new visitors to the area.
• The expansion of the BID by another 12 blocks (Early 1999).

"Early indications from this relatively small data area point to strong continuing improvement during the second full year of HED activities. The benchmarks we have set will give us some solid economic indicators to look at in 1998 and beyond as the BID expands its reach. Hollywood's future looks very bright!"

The Hollywood Entertainment District is a five-year property-based Business Improvement District formed in September 1996. It is currently funded by 40 property owners who own property along a six-block stretch of Hollywood Boulevard from La Brea to McCadden, including properties one-block north and one-block south.

The assessment raises $600,000 a year and is primarily budgeted toward security and maintenance services. The BID is expected to expand in 1999, encompassing another 12-block stretch of Hollywood Boulevard, extending the BID's reach from La Brea to Gower.

Major landmarks in the expansion area include the Egyptian Theater, Musso and Frank's Grill, the Pantages Theater, Capitol Records and Frederick's of Hollywood.