Santa Monica launches comprehensive economic revitalization strategy

March 26, 2026 2:13 PM

City Council approves new economic development tools to attract restaurants, expand entertainment zones, and catalyze private investment

SANTA MONICA, Calif. (March 26, 2026) - The Santa Monica City Council this week approved a sweeping package of economic development measures as part of the City's Realignment Plan Update, signaling an aggressive push to attract private sector reinvestment and revitalize the local economy.

The package combines direct financial incentives, regulatory reform, and strategic programming investments, representing the most comprehensive economic development action the City has taken in years.

"Santa Monica has always been California's front porch, the place the world comes to see what's possible," Mayor Caroline Torosis said. "The reforms we're putting in place today are the final pieces of our economic recovery, filling our storefronts, activating our streets, and rebuilding the vibrancy that makes this city worth visiting. By the time the world arrives for major events, we won't just be ready, we'll be thriving."

​​​​​​​​​ Key elements of the economic development strategy include:

$3 Million Economic Development Fund
The City Council authorized a new fund to support restaurant attraction incentives, tenant improvement assistance, business recruitment, and capital renewal studies for Third Street Promenade. The fund will also support the City's participation in the 2027 Rose Parade, as directed by Council.

Wastewater Fee Waivers for Restaurants
The City will waive its portion of the wastewater capacity fee-approximately $1,000 per seat-for new restaurant projects and restaurant expansions. For a 50-seat restaurant, this eliminates $70,000 in City fees.

Retail to Restaurant Activation Program
The City will develop a new program to accelerate activation of vacant and underutilized commercial spaces through financial incentives and expedited permitting for qualifying restaurant conversion projects. Program details will be refined through stakeholder outreach in the coming months.

Free Sidewalk Dining for Simple Setups
Fees and permit requirements are being eliminated for restaurants using basic tables-and-chairs outdoor dining configurations, modeled after a similar program in San Francisco. Up to 59 restaurants citywide could benefit.

Entertainment Zone Expansion
The Entertainment Zone, which was launched on the Third Street Promenade in June 2025 as the first of its kind in Southern California, will expand to cover the entire Downtown core, with event-based authority extended to the Santa Monica Pier, Main Street, and Montana Avenue.

TDM Program Modernization
The City's Transportation Demand Management program is being modernized to reduce regulatory burden on employers, shifting mandatory annual surveys to an optional self-attestation model for businesses with 30-249 employees.

Film Permit Fee Waiver
The City will temporarily waive film permit application fees to attract and retain production activity during a challenging period for the industry.

Downtown Parking Adjustments
Modified rates for Downtown parking structures will provide 90 minutes of parking for $1, with a new validation pilot program for fitness and wellness businesses, along with Downtown schools.

Major Event Programming
The City accepted $750,000 in Metro grants for Open Streets events tied to the FIFA World Cup and the 2028 Olympic and Paralympic Games, and authorized expanded production partnerships for a five-week Downtown World Cup activation in June and July.

These measures build on progress already achieved under the Realignment Plan, including outdoor dining fee reductions implemented in December 2025, and a 40-percentage-point improvement in building plan check turnaround times.

For more information about Santa Monica's economic development initiatives, visit santamonica.gov.

Media Contact

Lauren Howland
Communications and public information manager
[email protected]

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