Pacific Park hoping pavilion puts party back into pier. (Up Front).

Pacific Park, the amusement park on Santa Monica Pier, has placed an $80,000 bet that corporate clients will be drawn to its updated special events pavilion.

Combining a large tent with the park's "Sig Alert" bumper car ride created the new attraction, which opened this month. When the pavilion is in use, the bumper cars will be removed and a temporary dance floor installed.

Park operators project additional corporate parties of between 300 and 500 guests will add another $50,000 to the $650,000 in event revenues the site generated last year, according to Mary Ann Powell, chief executive and general manager of Pacific Park, which is owned by Santa Monica Amusements LLC. The park generates between $11 million and $12 million in overall annual revenues, she said.

Pier operators said they had already booked business to the 4,500-square-foot venue, despite the uncertain economy and the area's checkered image.

"They have a couple strikes against them' said Charles Banfield, a Los Angeles party planner. "Santa Monica is great but that area has a reputation for being a Mecca for the homeless and Santa Monica is notorious for dirty beaches. For a local event site, I don't know that it would be my first choice?"

Those are the types of stereotypes that the Pier Restoration Corp. -- a non-profit organization created by the city of Santa Monica to help it manage the pier -- is trying to dispel, said the group's executive director, Ben Franz-Knight.

"It's a perception that's out there, but it's really not accurate," he said. "Of all the places in Santa Monica, the one where there's not a problem with the homeless is on the pier. And we have a police substation which helps to keep things pretty quiet?"

Frequent adjustments

The pier has seen more than a century of additions, subtractions and modifications. Built in 1874, the landmark site, at the foot of Colorado Avenue, has been knocked down and rebuilt several times. A 1984 storm destroyed huge sections of the pier, which was later rebuilt to include space for a small amusement park.

In 1996, Santa Monica Amusements signed a 50-year lease under which it pays the city $300,000 in base rent plus $100,000 in maintenance fees. Additionally, the park has agreed to pay the city 5 percent of any receipts it takes in over $11 million.

The base rent and the maintenance fee adjust upwards with the Consumer Price Index, but the amounts will increase by at least 2 percent and no more than 5 percent annually, according to Mark Richter, Santa Monica's director of economic development.

Pacific Park's 12 rides, 21 midway games and food court attract more than 3 million visitors annually.

Banfleld said the new pavilion would face stiff competition from several nearby beachfront hotels that can offer many of the same amenities with ocean views. Another complication is the weak economy that has many companies cutting back on the frequency and number of events they host.

The cost of renting the pavilion fluctuates widely based on the size of the event and if food and alcohol are served. During the winter, the park's off-season, renting the pavilion can cost several thousand dollars. During the summer it runs to tens of thousands of dollars.

Beyond increased revenues, the new pavilion enables operators to hold private events while keeping amusement rides open to the public. Before, the whole park would be closed to the public during private functions.

"Our sales team has consistently received calls for parties of that size," said Powell. "But it wasn't economically feasible to close off the entire park for a party of that size."

Heather Keenan, president of San Francisco-based Key Events, said she hosted an event at the pier recently for Microsoft Corp. that went off without a hitch. Keenan said she wouldn't hesitate using the new pavilion.

"It's absolutely, definitely needed and it should be competitive," she said. "It's really the only location for large events right on the beach."

Powell said the park should be able to distinguish itself because of its location and atmosphere. She said the pavilion is more flexible than most hotel facilities, which have set lighting designs and internal caterers.

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Santa Monica Pier boasts long amusement history

Original Park: Loaf Pleasure Pier

Opened: 1916

Features: Blue Streak roller coaster, Whip and Aeroscope thrill rides and the Hippodrome building containing merry-go-rounds and Wurlilzer organs.

Known for: LaMonica Ballroom, the site of many early national radio and television broadcasts.

Closed: 1953, taken over by city of Santa Monica

New Park: Pacific Park

Opened: 1996, when pier reopened after being destroyed in 1964 storm.

Features: 12 rides, including the West Coast's only solar-powered Ferris wheel.

Known for: Backdrop to many commercials, television shows and movies.