Planning - the idea of Mr. Abbot Kinney.
I think it's explained on the Wiki link.
Yes, here is a clip from it. (For more info than in this clip and lots of photos, see
http://en.wikipedia.org/wiki/Venice%2C_Los_Angeles%2C_California
HISTORY
Venice of America was founded by tobacco millionaire Abbot Kinney in 1905 as a beach resort town, 14 miles west of Los Angeles. He and his partner Francis Ryan had bought two miles of oceanfront property south of Santa Monica in 1891. They built a resort town called Ocean Park on the north end of the property, which was soon annexed to Santa Monica. After Ryan died, Kinney and his new partners continued building south of Navy Street in the unincorporated territory. After the partnership dissolved in 1904, Kinney built on the marshy land on the south end of the property. His intent was to create a seaside resort like its namesake in Italy.
When Venice of America opened on July 4, 1905, Kinney had dug several miles of canals to drain the marshes for his residential area, built a 1200-foot-long pleasure pier with an auditorium, ship restaurant, and dance hall, constructed a hot salt-water plunge, and built a block-long arcaded business street with Venetian architecture. Tourists, mostly arriving on the "Red Cars" of the Pacific Electric Railway from Los Angeles and Santa Monica, then rode Venice's miniature railroad and gondolas to tour the town. But the biggest attraction was Venice's mile-long gently sloping beach. Cottages and housekeeping tents were available for rent.
The town grew in population, annexed adjacent housing tracts, and changed its official name from Ocean Park to Venice in 1911. The population (3119 residents in 1910) soon exceeded 10,000, and drew 50,000 to 150,000 tourists on weekends.
Attractions on the Kinney Pier became more amusement oriented by 1910, when a Venice Scenic Railway, Aquarium, Virginia Reel, Whip, Racing Derby and other rides and game booths were added. Since the business district was allotted only three one-block-long streets, and the City Hall was more than a mile away, other competing business districts developed. Unfortunately, this created a fractious political climate. Kinney, however, governed with an iron hand and kept things in check. But when he died in November 1920, Venice became harder to politically govern. With the amusement pier burning six weeks later in December 1920, and Prohibition (which had begun the previous January), the town's tax revenue was severely affected.
The Kinney family rebuilt their amusement pier quickly in order to compete with Ocean Park's Pickering Pier, and the newly built Sunset Pier. When it opened it had two roller coasters, a new Racing Derby, a Noah's Ark, a Mill Chutes, and dozens of other rides. By 1925 with the addition of a third coaster, a tall Dragon Slide, Fun House and Flying Circus aerial ride, it was the finest amusement pier on the West Coast. Several hundred thousand tourists visited on weekends and spent their hard-earned money on rides, restaurant food and souvenirs. In 1923 Charles Lick built the Lick Pier at Navy Street in Venice, adjacent to the Ocean Park Pier at Pier Avenue in Ocean Park. Another pier was planned for Venice in 1925 at Leona Street (now Washington Street).
For the amusement of the public, Kinney hired aviators to do aerial stunts over the beach. One of them, movie aviator and Venice airport owner B.H. DeLay, implemented the first lighted airport in the United States on DeLay Field (previously known as Ince Field). He also initiated the first aerial police in the nation, after a marine rescue attempt was thwarted. DeLay also performed many of the world's first aerial stunts for motion pictures in Venice.
But by 1925, Venice's politics became unmanageable. Its roads, water and sewage systems badly needed repair and expansion to keep up with its growing population. When it was proposed that Venice be annexed to Los Angeles, the board of Trustees voted to hold an election. Those for annexation and those against were nearly evenly matched, but many Los Angeles residents, who moved to Venice to vote, turned the tide. Venice became part of Los Angeles in October 1925.
Los Angeles had annexed the Disneyland of its day, and proceeded to remake Venice in its own image. They felt the town needed more streets for automobiles, not canals, and paved the bulk of them in 1929 after a protracted three-year court battle led by canal residents. They wanted to close Venice's three amusement piers, but had to wait until the first of the tidelands' leases expired in 1946.
In 1929, oil was discovered south of Washington Street on the Venice Peninsula, which was a fashionable residential area where movie stars lived. Within two years, 450 oil wells covered the area and drilling waste clogged the remaining waterways. It was a short-lived boom, that provided needed income to the community, which suffered during the Depression. The wells produced oil into the 1970s.
The city of Los Angeles had neglected Venice so long that by the 1950s it had become the "Slum by the Sea". With the exception of new police and fire stations in 1930, the city spent little on improvements after annexation. The city did not pave Trolleyway (Pacific Avenue) until 1954 when county and state funds became available. Cheap rents for run-down bungalow housing attracted predominantly European immigrants (including a substantial number of Jewish refugees from Hitler's death camps), and young counterculture artists, poets and writers. The Beat Generation hung out at the Gas House on Ocean Front Walk and at Venice West Cafe on Dudley where they held poetry readings and smoked marijuana. Police raids were frequent as they tried to rid the community of "undesirables."
Venice and neighboring Santa Monica were hosts for a decade to the Pacific Ocean Park (POP), an amusement and pleasure-pier built atop the old Lick Pier and Ocean Park Pier by CBS and the Los Angeles Turf Club (Santa Anita). It opened in July 1958. They kept the pier's old roller coaster, huge airplane ride and historic carousel, but converted its theaters and smaller pier buildings into sea-themed rides and space-themed attractions designed by Hollywood special-effects people. Visitors could travel in space on the Flight to Mars ride, tour the world in Around the World in 80 Turns, go beneath the sea in the Diving Bells or at Neptune's Kingdom, take a fantasy excursion into the Tales of the Arabian Nights on the Flying Carpet ride, visit a pirate world at Davy Jones' Locker, or visit a tropical paradise and its volcano by riding a train on Mystery Island. There were also thrill rides like the Whirlpool (rotor whose floor dropped out), the Flying Fish wild mouse coaster, an auto ride, gondola ride, double Ferris wheel, safari ride, and an area of children's rides called Fun Forest. Sea lion shows were performed at the Sea Circus.
Since attendance at the seaside park was too low to operate during the winter, and there was competition from Disneyland, Knott's Berry Farm and Marineland, it was sold after two seasons to a succession of owners, who let the park deteriorate. And since Santa Monica was redeveloping the surrounding area for high-rise apartments and condos, it became difficult for patrons to reach the park. It was forced into bankruptcy in 1967. After the park suffered a series of arson fires beginning in 1970, its rotting structure was demolished by 1974. Another aging attraction in the 1960s was the Aragon Ballroom that had been the longtime home of The Lawrence Welk Show & the Spade Cooley Show, and later the Cheetah Club where rock bands like the Doors, Blue Cheer & many other top bands of the time, performed. It burned in the 1970 fire. The district around POP is known as Dogtown, which was home to pioneering skateboarders the Z-Boys, as profiled in the documentary film, Dogtown and Z-Boys.
Producer Roger Corman owned a production facility, the Concorde/New Horizons Studio, on Main Street for many years, in which a large number of his films were shot. This facility was torn down to build lofts.
Attractions and neighborhoods
Venice is today one of the most vibrant and eclectic areas of Southern California and it continues a tradition of progressive social change involving prominent Westsiders. The Venice Family Clinic is the largest free clinic in the country.
Venice is an unusually pedestrian-oriented area for Los Angeles: many of its houses actually have their principal entries from pedestrian-only streets, and have house numbers on these footpaths. (Automobile access is by alleys in the rear.) However, like much of Los Angeles, Venice is also well-known for traffic congestion. It lies 2 miles away from the nearest freeway, and its unusually dense network of narrow streets was not planned for the demands of modern traffic. Mindful of the tourist nature of much of the district's vehicle traffic, though, its residents have successfully fought numerous attempts to extend the Marina Freeway (CA-90) into southern Venice.