Downtown Downey sales tax revenue up 23% since 2017

Shoppers at the Havana Nights festival in Downtown Downey on Oct. 6, 2025. (City of Downey photo)

DOWNEY – Downtown Downey has delivered some of the strongest economic gains in the city in recent years, highlighted by a 23% increase in sales tax revenue since the formation of the Downtown Downey Improvement Association (DDIA) in 2017, according to a new report heading to the City Council on Tuesday.

City officials attribute the revenue growth to Downtown’s transformation into a regional destination, with a steady influx of restaurants, nightlife, and signature events drawing visitors throughout the year.

Annual foot traffic, which peaked at 7.2 million visits in 2019, has rebounded from pandemic lows to 6.7 million visits in 2024. Roughly 75% of those visitors now come from outside Downey, the report states.

The report emphasizes that rising sales tax revenue is a direct indicator of Downtown’s economic resilience, particularly as traditional retail markets face challenges from e-commerce and shifting consumer habits.

The growth also signals the effectiveness of business recruitment, marketing efforts, and improvements to the district’s overall experience, officials said.

Despite Downtown’s strength, the report acknowledges that not all businesses feel the benefits equally. A recent business survey found that more than half of respondents said community events and street closures do not positively impact their operations.

The report suggests the city will work more closely with businesses to ensure that Downtown’s events, while popular with visitors, do not create unintended hardships.

Planned investments aim to sustain the momentum while diversifying the district’s offerings beyond its well-known nightlife. Upcoming projects include new public art installations, continued support for the weekly Certified Farmers’ Market, efforts to activate a Downey Avenue alleyway, and the potential creation of a community pocket park at La Reina Avenue and 2nd Street.

The city also plans to continue partnerships with the DDIA and the Chamber of Commerce, along with ongoing security enhancements.