Santa Monica Economic Revitalization Strategy Launched

The Santa Monica City Council has approved a sweeping package of economic development measures as part of the City’s Realignment Plan Update.

The plan, part of a push to attract private sector reinvestment and revitalize the local economy, includes direct financial incentives, regulatory reform, and strategic programming investments.

Specifically, 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.

• Wastewater Fee Waivers for Restaurants

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

• Retail to Restaurant Activation Program

The City plans to develop a new program to accelerate activation of vacant and underutilized commercial spaces through financial incentives and expedited permitting for qualifying restaurant conversion projects.

• Free Sidewalk Dining for Simple Setups

Fees and permit requirements are being eliminated for restaurants using basic tables-and-chairs outdoor dining configurations. Up to 59 restaurants citywide could benefit.

• Entertainment Zone Expansion

The Entertainment Zone, which was launched on the Third Street Promenade in June 2025, will expand to cover the entire Downtown, with event-based authority extended to the Santa Monica Pier, Main Street and Montana Avenue.

• Film Permit Fee Waiver

The City is temporarily waiving film permit application fees to attract and retain production activity.

• Downtown Parking Adjustments

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

“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," Mayor Caroline Torosis said.

More information about Santa Monica's economic development initiatives is available at santamonica.gov.