Santa Monica Officials Blame Trump for City’s Decline

Top officials in Santa Monica are pointing fingers at President Trump, claiming that his policies have contributed to the city’s struggles in recent years.

City Manager Oliver Chee suggests that Trump’s administration has negatively impacted international tourism, but he seems to overlook ongoing issues like significant legal settlements, the aftermath of the pandemic, retail vacancies, and a rising homelessness crisis.

“I think about a year ago, there was this feeling that maybe Santa Monica’s best days were behind it,” Chee told a news outlet. But he added, “this could still be one of the coolest places on Earth.”

Last September, the city, which has around 90,700 residents, officially declared a “financial crisis” following a series of substantial setbacks.

A major issue is a nearly $230 million settlement related to a long-standing sexual abuse lawsuit involving a former city IT employee, an amount that makes up about 30% of Santa Monica’s annual budget.

Additionally, the pandemic significantly diminished revenue from hotel and sales taxes, leading to layoffs of over 400 city employees, which is roughly one-fifth of the workforce.

Not long after, civil unrest prompted by George Floyd’s death resulted in looting that devastated local businesses, leaving many struggling to stay afloat.

Chee noted that the city has experienced a drop in foreign tourism, which he attributes to Trump’s policies, while last year’s severe wildfires in Pacific Palisades led to the evacuation of affluent residents who often frequented Santa Monica.

While there are signs of recovery, vacant storefronts linger in the downtown area.

Retail and restaurant vacancy rates sit around 20%, the highest in Los Angeles County, with Santa Monica Place facing challenges after its owner defaulted on a $300 million loan due in 2024.

After a Nordstrom closure last year, the once-busy shopping hub has turned into a nearly empty food court, with only one operator left in Sbarro.

Business owners have said that crime, homelessness, and public drug use have further deterred customers during the city’s toughest times.

“Things aren’t getting better,” AJ Zacher, the operations manager at a local sports bar, remarked, recalling several break-ins per night in 2020 and 2021.

“Santa Monica heavily relies on tourism and hospitality, so without a safe, welcoming environment, we’ll face serious challenges.”

Michael Mandel, co-owner of Pier Pizza and Subs, expressed concern about ongoing public drug use, saying it’s a clear deterrent for visitors.

“It’s ridiculous to do drugs out in the open,” he stated. “Once that’s dealt with, the streets will start looking better again.”

Longstanding local leaders conceded that the city government hadn’t adapted as consumer habits shifted.

“There was a sort of assumption that the city could sustain its revenues and reserves without realizing their vulnerabilities,” said Rick Cole, a former city manager.

Jim Harris, who heads the Santa Monica Pier Corporation, mentioned that the iconic Third Street Promenade struggles to compete with other entertainment districts investing in new attractions and events.

In a recent change of strategy, city officials are now allowing major fast-food franchises, which were previously restricted, leading to the opening of new stores, such as Raising Cane Chicken Fingers.

They’ve also increased police presence downtown, relocated homeless shelters from retail areas, reduced outdoor dining fees, and rolled out AI-assisted systems to expedite business permits.

An “Entertainment Zone” has been established, allowing visitors to carry alcoholic beverages outside on weekends and during special events.

Officials claim these steps are starting to yield positive results.

Crime rates are decreasing, police staffing is nearly reaching full capacity for the first time in nearly two decades, and foot traffic at Santa Monica Pier is approaching pre-pandemic levels, estimated at 12 to 14 million annual visitors.

“We plan to host many more events than before,” Harris said.

The upcoming FIFA World Cup is set to provide an economic boost, but officials are particularly optimistic about the 2028 Olympics in Los Angeles, with arrangements made for hospitality events for international delegations.

“To truly restore prosperity, we need to revive the local economy,” Chee emphasized. “Creating an inviting environment is crucial for attracting investment.”