Department stores were sluggish in late 2002

Paul Clinton

A sluggish economy dampened sales tax revenue flowing into the two

cities’ coffers during the fourth quarter, city data released last

week shows.

Bolstered by a juggernaut auto dealer, in Fletcher Jones

Motorcars, Newport Beach fared better. But department stores

languished even in that city.

Costa Mesa’s revenue from the sale of goods came in 0.7% more than

the fourth quarter of 2001, which retailers have said the Sept. 11

terrorist attacks dampened. Without including accounting anomalies,

revenue fell 2.6%.

The city pulled in $10.04 million for the quarter, compared to

$9.97 million a year ago.

“I tend to be very optimistic about the economy in general because

we have such a diversified economy,” said Ed Fawcett, the president

of the Costa Mesa Chamber of Commerce. “Even if you see a dip, we

haven’t seen the results on the after-Christmas sales.”

Four of Costa Mesa’s top five business categories -- department

stores (-1.9%), auto dealers (-6.5%), specialty stores (-5.1%) and

home furnishings (-1%) -- registered drops during the quarter. Only

family apparel, at No. 3, saw an increase (3.7%).

During the quarter, Costa Mesa pulled in $1.43 million from

department stores, $1.12 million from auto sales and $564,724 from

family apparel.

Department stores in Newport Beach also suffered during the

holiday quarter, revenue manager Glenn Everroade said. Yet, the city

saw strong performances in its auto and restaurant industries.

“I’d consider it a favorable quarter,” Everroade said. “It was not

as encouraging for department stores.”

General merchandise and apparel accounted for $788,503, a 3.6%

drop from the fourth quarter of 2001. Auto sales contributed

$755,683, a 16.8% rise, and restaurants kicked in $679,321, a 5.5%

increase.

Overall numbers for the quarter are not yet available, Everroade

said.

By state law, cities receive one penny of every dollar, or 1%,

spent inside their borders.

This area benefits from two high-profile shopping centers, South

Coast Plaza and Fashion Island. Costa Mesa receives almost $10

million per year from South Coast Plaza, while Newport Beach pulls in

about $4.5 million from Fashion Island.