October 27, 2025
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Regulations Eased to Boost Business on Third Street Promenade

Key Updates Include Allowing Game Arcades and Arcade Bars, and Simplifying the Review Process for Larger Restaurants

The Santa Monica City Council approved a series of zoning updates Tuesday aimed at boosting economic growth and cultural vitality in the downtown area, particularly on the Third Street Promenade. 

The changes are intended to create greater flexibility for businesses and streamline processes for new and existing establishments.

Key updates include allowing game arcades and arcade bars on the Third Street Promenade, simplifying the review process for larger restaurants, and facilitating the operation of large-scale commercial entertainment on city-owned properties. 

Additionally, restrictions on signage have been eased to encourage creative advertising, including animated and digital signage for on-site promotions.

In an effort to support a broader range of businesses, regulations on alcohol licenses for establishments on 2nd and 4th Streets have been relaxed, and limits on business size for certain industries, such as banks and pet stores, have been lifted on the Third Street Promenade. The city is also making way for outdoor-only uses in Santa Monica’s office campus districts.

“Encouraging a thriving business community is a key priority for our city, especially in our downtown and Third Street Promenade,” said Community Development Director David Martin in a release. “We will continue to look at holistic approaches to support our city’s economic recovery.”

The zoning updates are part of ongoing efforts to stimulate economic growth by eliminating unnecessary regulatory hurdles. Downtown Santa Monica Inc. CEO Andrew Thomas praised the changes, noting they will help create a dynamic and engaging environment for both locals and visitors by removing barriers to business growth.

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