West Hollywood Inc.: city once known for social agenda now fighting for business.

Like many middle-aged rock stars, the fabled Sunset Strip is launching a comeback.

The 16-block stretch of Sunset Boulevard between Doheny Road and Crescent Heights Boulevard has become a hub of new clubs like the House of Blues, while aging landmarks like the Mondrian Hotel and Hyatt West Hollywood have gotten major renovations.

Though the Sunset Strip long has been one of L.A.'s most celebrated playgrounds, observers give much of the credit for its current resurgence to an unlikely source: city government.

When it incorporated in 1984, West Hollywood was known as a city with a strong social agenda that put human services first and business a distant second, said Don Savoie, executive director of the West Hollywood Chamber of Commerce.

But that's changed with the election of new City Council members focused more on spurring development and boosting sales tax revenues.

"Business is improving not just on the Strip, but it's being encouraged throughout the city," Saydie said.

In recent years, West Hollywood created the Sunset Specific Plan, which offers incentives to businesses that meet city criteria encouraging upscale shops and restaurants.

In addition, West Hollywood is set to launch a redevelopment project along the city's east side bordering Los Angeles. It also has a Business Improvement District that encompasses commerce along Melrose Avenue - a bastion of art and design shops.

"A good city is one that evolves, and we're doing that on a number of levels," said Charles Makinney, West Hollywood's city manager. "Take a drive around the city, along Santa Monica Boulevard and Sunset Boulevard, and you'll see a difference. We're getting the message out."

Indeed, the city boasts of its new attitude via glossy brochures and billboards that tower high over the Sunset Strip. It has even come up with a new slogan: "West Hollywood, Where Creativity Gets Down to Business."

These changes are nothing short of amazing, said Larry Kosmont, whose consulting firm Kosmont & Associates performs an annual survey on the cost of doing business in Southern California cities. It is a far cry from the days when major companies - including Playboy Enterprises, Warner/Chappel Music and United Talent Agency - were leaving the city in droves, he said.

"At one time, West Hollywood remained closed up - they were protecting their flanks," said Kosmont. "As the city matured, they got to understand the necessary balance between revenue and service. There's been a big change there, and that's good for business."

The beginning of that change was marked with the opening of the House of Blues nightclub in 1994. Business leaders say the club helped propel the Strip - and the city in general - out of its economic slump.

The city helped guide the club through permit and approval process, making concessions along the way that covered everything from design to parking mandates.

In its first year, House of Blues generated more than $100,000 in sales taxes - and led to the construction of other big-name nightclub/restaurant projects like Billboard Live and Thunder Roadhouse Cafe.

"Business in the city is on an upswing, but it's more evident here on the Sunset Strip ... it's a showcase," said Isaac Tigrett, chief executive of the House of Blues Inc. national chain. "The location is fashionable again."

House of Blues also sparked other developments in the city. Hotels like Chateau Marmont, Mondrian and Hyatt West Hollywood all underwent major facelifts during the past two years. In addition, plans are underway to refurbish the Golden Crest Club Hotel.

With the election of City Councilman Steve Martin two years ago, the five-member council suddenly found itself with a pro-business majority. Martin immediately began to push for businesses incentives, and the rest of the council has been supportive.

"I think there was this attitude that built up over the years that doing business in West Hollywood was difficult," Martin said. "We've been trying to change that for the past few years, and we're now seeing the benefits."

In fact, West Hollywood has a huge business component - with 200 design shops, 140 restaurants, 350 entertainment firms, more than 30 art galleries and 16 hotels squeezed into its 1.9 square miles.

Martin believes the city's tax structure - one of the lowest for businesses in the county - is an important factor keeping these businesses in town.

For instance, a 100-person office with $10 million in sales located in West Hollywood would pay $14,400 a year in business taxes compared to $61,315 in L.A.

A retail shop doing $10 million in sales would pay $4,800 to do business in West Hollywood - or it could move to L.A and pay $15,355.

In addition, the city doesn't impose taxes on utilities or commercial parking lots.

New businesses can also take advantage of a streamlined permit approval process, including a pre-application program. The city also created a one-stop business center, which helps new and existing companies get information on permits, licenses and financing.