Economic Opportunity & Growth: Santa Monica moves forward with permanent business-friendly reforms

August 13, 2025 11:41 AM

SANTA MONICA, Calif. (Aug. 13, 2025) - The Santa Monica City Council Tuesday adopted a slate of business-friendly updates aimed at attracting new businesses, supporting existing shopping and dining and fostering economic growth downtown and on Third Street Promenade.

The zoning updates focus on making it easier for businesses to serve alcohol and offer greater entertainment options, bringing vibrancy to the downtown area.

"In Santa Monica we're not afraid to try new things and respond to the ever-changing needs of our business community," Mayor Lana Negrete said. "These updates are already making a big impact downtown, and I look forward to seeing even more progress as we make lasting, meaningful updates to be a more business-friendly city."

Adopted updates for the Downtown/Promenade area include:

• Offering streamlined alcohol permits for new commercial uses beyond just restaurants, including bars/nightclubs, retail, recreation facilities, cultural/instructional facilities and convenience markets.
• Reducing operating restrictions for restaurants with entertainment, including dancing, number of television screens and pub crawls.
• Eliminating restrictions/prohibitions on fast food and fast casual restaurants on Third Street Promenade.

The changes were originally adopted in an interim zoning ordinance in 2023 to give staff and local businesses a chance to enact them quickly and evaluate their effectiveness before making them permanent.

During the interim period, the eased regulations supported several new businesses to open downtown, including AJA Vineyards, Holey Moley, Splatter Studio and Pickle Pop. And, coming soon, Raising Cane's on the Promenade.

In line with this strategy, the council also added an interim zoning measure within the Downtown to allow greater design flexibility in commercial space to align with potential tenant needs on the Promenade.

Tuesday's action builds on strategic efforts by the City Council to facilitate Economic Opportunity & Growth, including the opening of Southern California's first Entertainment Zone on Third Street Promenade in June and the creation of a new Business Concierge Program.

Ultimately, these zoning updates are part of a larger effort to take a fresh look at city zoning regulations to make it easier for businesses to open, grow and thrive in Santa Monica. Additional updates are set to go before the council in the coming months.

For more information, read the full staff report here or view the council discussion here.

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Business, Business Programs, Licenses And Permits, Why Open a Business in Santa Monica

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Community Development