The following is a letter to Ojai Valley Chamber of Commerce members from CEO Scott Eicher. My personal take on this is surprise at an evaluation process where a company billing itself as the World’s Largest Hotel Chain would not have caused our interim city manager to lean towards the spirit of the ordinance in its interpretation.
I applaud the Chamber’s position and effort to work with Kenley and the Planning Commission to tighten up the ordinance and further protect the primary industry of Ojai, cultural tourism (where the unique identity of Ojai is enhanced by the relative lack of chain stores, thus increasing its desirability as a tourist destination).
Good Day Members,
I attended a meeting Tuesday evening with Planning Commission Chair Troy Becker, City Council Member Betsy Clap and Interim City Manager John Baker to discuss the approval of the Hummingbird Inn’s “signage change” application. The Hummingbird Inn’s application was to change its name to “Best Western Hummingbird Inn”.
After some discussion, it was decided that there may not be any way to keep the world’s largest hotel chain with over 4,000 locations world wide out of Ojai with the current Formula Business Ordinance. Although Chairman Becker is on record directing City Staff to bring this application to the commission for a public discussion, Interim City Manager John Baker said he had no idea of the background of this particular issue, and that as he read the ordinance and the applicant’s affidavit, there was no reason to not approve the application.
Four years ago, the City Council directed Staff and the City Attorney to draft an ordinance that would keep chain businesses out of the city of Ojai. The ordinance as it was written does not accomplish this.
Though this Best Western may come into town, the Chamber will begin work immediately with Kenley Neufeld and the Planning Commission to re-write the current Formula Business Ordinance so that we can keep chains such as Best Western out of Ojai.
Scott Eicher
Chief Executive Officer
Ojai Valley Chamber of Commerce
201 S. Signal St.
Ojai, CA 93023
{ 22 comments… read them below or add one }
Scott Eicher read this Letter to the Planning Commission last night but he also added some strong words about the City Atorney’s role in this. I don’t want to misquote him–maybe Kenley can recall…
I don’t understand how the merchants can be opposed to Best Western, a way for a small hotel can market more widely. If they have more guests through this marketing system, there are more potential customers for the stores in Ojai. Furthermore, Best Western Casa Ojai was here for years and now has given up the Best Western franchise. Aren’t the merchants shooting themselves in the foot?
Good point but that is not the issue… as I understand it, we are looking at the bigger issue of there being a legal public process in place so that we do not wake up one morning and suddenly see a dozen hotel chains replacing the ones that make Ojai unique…
I understand the issue of the legal process in question. The other side of this issue, is the old Chain Store rub. I think, at this point, I would rather see a Whole Bean and Starbucks in the two abandoned gas station buildings. A Whole Foods in the bowling alley. Who cares where the ownership is based, as long as we have businesses there, employing local people, generating taxes for the city. Seems to me like a full to capacity motel with a BW affiliation is better than a half full indy. Seems like a conflict for the CEO of the Chamber to be, in a roundabout way, discouraging the very lifeblood of our unique little burg. So long as the businesses comply with sign ordinances, who the heck cares where they are based. We are either going to have to budge a bit, or we will become a tourist spot ala Calico Ghost Town.
Have you considered if our unique little burg can support what you suggest?
For example, what would be the effect of a Whole Foods at the Bowling Alley on Star Market, Rainbow Bridge and Westridge Market? And what would be the traffic impact of that location?
In the last few years Ojai has lost several businesses that employed a signifcant amount of people. These were businesses that wanted to stay in Ojai. It seems that the problems they had finding a new location when their business grew, (and other problems) could have been overcome.
Also, unfortunately, there is no guarantee that any business will hire local people. Many of the best paying jobs in Ojai are held by people who live outside the Valley, including City and School employees.
Thank you Autumn. Very well put!
Competition keeps everyone at the top of their game. If there was only one grocer in town, he could get away with price gouging. And, I doubt anyone would be driving from Santa Barbara to work at a Whole Bean. By recycling abandoned buildings, you are using those that have already gone through the EIR process. It is just so daggum ironic that a town that tries to pass itself off as a destination makes it so goshdarn hard for businesses to survive to give the touristas something to do once they get here.
Hi Autumn –
The problem is that chains create an unlevel playing field. A mom-and-pop such as Giorgio’s has to earn enough to pay employees and support a local family that then spends their money in our community.
A Subway only has to earn its Thousand Oaks franchisee $500 a month in profit times the 17 franchises he owns to have a six-figure income. Further, all of the revenue leaves Ojai immediately, save the minimum wage part-time jobs.
So in terms of competition, Subway can offer an inferior product at lower prices at break-even for an extended period of time to win market share from the local mom-and-pop. When we lose the mom-and-pop because of this un-level playing field, our entire community is poorer, because there is no wealth multiplier effect of having money earned locally also be spent locally.
I totally agree that the abandoned buildings are a problem – I personally don’t think filling them with chains is the way to go about it.
(And for what its worth, I am poking around a locally enriching non-profit approach to one of the most prominent abandoned buildings.)
I trust you will keep Ojai Post readers informed on any developments of the “locally enriching non-profit approach to one of the most prominent abandoned buildings.” Sounds very promising! We really have to think outside the box!!!
This is such an important discussion, thanks Autumn, X, Tyler for reminding us of all this. Autumn, you might like to go to the business community gatherings where possible solutions to these problems are discussed. Paul Blatz website (as I recall) identifies all or most of the most visible abandoned buildings…he and many others are actively working on this…
Interesting that most of the blight I chronicled in April 2006 is still, well, blighted: http://www.ojaipost.com/2006/04/choosey-about-business-at-what-cost/
Kind of a bit of a recession/depression going on too Lisa. That’s more likely the reason for the blight.
I wonder how many of you are experienced retailers who know how important location, locaton, location is. Ojai has the location, but in my opinion is not making the most of it.
Having experienced the retail business as a “Mom and Pop” in a busy major regional shopping center in Southern California surrounded by other ‘Mom and Pops” and some serious chains, I can tell you that those chains brought a wonderful synergy to all of us. We even made it through the other recession in the early ’80′s and then some.
As Autumn pointed out, competition keeps you on your toes! It makes you have a serious concern about your staff and their ability to provide excellent friendly customer service through constant training, it makes you aware of how important great merchandising is to attract customers, and you need to constantly look at the lighting and highlights of your store to make your wares shine.
So many stores in Ojai have looked the same for years and years. Several have poor lighting, never greet a customer and when things get tight, they have a sale.
This is an interesting debate with more to come I’m sure.
Have noticed for a while that Bliss Yogurt…a chain is about to open. Personally, I think it will be a great addition to Ojai on many levels…new…clean…lighted and inviting.
The biggest problem, in my opinion with Ojai’s chain store ordinence is that it is completely inconsistent…Best Western is O.K. for a while…Jersey Mike’s is O.K., but Subway isn’t, Chevron, Bank of America and all the banks are O.K., True Value and Vons are O.K.
No growth seems to be self-defeating, robbing the City of much needed tax revenue which is sorely needed for the sustainability of the residents and the community. Property taxes are at a standstill considering the decline in real estate values.
Other cities such as Santa Barbara and Downtown Ventura control the chain store image with their architecture. Ojai should consider this alternative.
Bliss Yogurt is not a chain. Kenley checked it out.
Jersey Mike’s shocked people who thought we had a chain store ordinance in place already.
I checked out Bliss online. Suggest you do the same, Tyler.There are many all over the country. I would consider that a chain and am delighted! Looking forward to their opening. The store will be clean and light and hopefully have a very friendly staff. Perhaps they are like Best Western – an individual store with a franchise…a marketing tool.
Bliss Yogurt in Ojai is not a chain. Kenley talked to the owner, and both of us looked online. They are unrelated to any other Bliss Yogurt.
Perhaps this is a good thread to bring up the issue of the banking of the City of Ojai. The accounts for the City of Ojai are at Wells Fargo. Wells Fargo is one of the giant, zombie banks that took money from the Bush bailout. They received something on the order of $25 billion from TARP and an unspecified amount directly from the Fed as well as an unlimited credit line at nearly 0% interest also from the Fed. Further, Wells and the other giant banks successfully changed the accounting rules so that they do not have to mark the assets on their books to market. By removing the “mark to market” rule, the giant banks are able to pretend solvency.
Why is the city of Ojai banking with Wells Fargo? Wouldn’t it make more sense that the accounts for the city actually benefit the local economy?
The City of Ojai should do as much local purchasing and commerce as possible. For example, let’s say that the City goes through 100 rolls of toilet paper a month. At Costco, that might cost $40 and at Starr, that might cost $60. While the City saves $20, the $40 spent at Costco leaves the community never to return. If purchases are made locally, it strengthens local business and circulates more money locally.
Likewise with Wells Fargo vs. Ojai Community Bank. By not banking locally, the City of Ojai allows money and wealth to drain from the local community. Were they to bank with OCB, the bank would have increased capital to loan to small business and circulate locally.
If Bliss Yogurt is not a franchise or chain, why does it have the same logo as all the other Bliss Yogurt shops?
It’s not a franchise, and it doesn’t have the same logo as “all the other Bliss Yogurt shops,” of which there don’t seem to be many around the US. (one in AZ, one in WA, two in TX, one closed in OC)
From Kenley:
http://kenleyneufeld.posterous.com/hey-ojai-is-bliss-frozen-yogurt-a-chain
“Not a chain or franchise. I checked with the City of Ojai and the owner signed an affidavit to that affect.”
From Bliss Yogurt owner Barbara McCarthy on the same thread:
“Thanks for the welcome….Bliss has been in the works since December. It’s not a franchise, couldn’t have done that in Ojai….all my own ideas.”