Santa Monica, which is generally known for strict zoning guidelines, has lifted restrictions to help spur economic activity and support re-opening restaurants. The City adopted proposed changes from non-profit Downtown Santa Monica Inc. The changes include an alcohol exemption, converting restaurant space or vacant space into an alternative use and permitting food halls on the Third Street Promenade and in other areas of the city.

Downtown Santa Monica, Inc. has been evaluating the economic state of downtown and particularly the beloved Third Street Promenade as a part of the "In order to adjust to the modern retail world and to reduce the barriers to entry for new businesses, we proposed a set of policy changes to the City of Santa Monica," Andrea Korb, economic development manager, Downtown Santa Monica, tells GlobeSt.com. "After COVID-19 hit, we worked with the City to turn these proposals into a broader package of zoning changes for both the Promenade and the rest of Santa Monica's commercial districts to support economic recovery throughout the City. If there is a silver lining to COVID-19 it is that we were able to move quickly with these changes, thanks to support from our City partners, who recognized the importance of supporting our local business community through the challenging circumstances ahead." The new guidelines specifically target restaurants and nightlife establishments, which have been particularly hit hard by the pandemic and required closures. "Restrictions have been lifted, new uses are permitted, and entertainment is now allowed in places it was previously limited," says Korb. "This will make it easier for new businesses to enter the market, allow for more varied uses and more creative use of ground floor space, and help businesses thrive. We hope this will bring more life and excitement to Downtown."

While COVID-19 was certainly a catalyst for these changes, in many ways they were already needed. Downtown Santa Monica Inc. had already been working on a way to reimagine and reinvest in the Third Street Promenade to adapt to new retail and consumer needs. "Prior to COVID-19, margins were already slim for the restaurant industry in California and Santa Monica," says Korb. "By removing restrictions and allowing restaurants (and on the Promenade, any establishment that serves food) to sell more alcohol, stay open later, and provide more entertainment, businesses will have a better chance of not just surviving, but thriving." However, restaurants aren't the only businesses that will benefit from the changes. "Other changes better allow for uses we are seeing more of today, such as boutique fitness studios, breweries, and makers' spaces, and keep the door open for novel uses we haven't seen yet," adds Korb. "There are also adjustments to allow ground floor space to be more flexible, reflecting the current desire for smaller retail spaces and allowing for lower-cost alley-fronting space. This will also make it easier to build out ground floor lobby space to service upper floor office."