COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: June 16, 2026
SUBJECT: Small Business Support Initiative
Description:
The City Council will receive a presentation and provide direction related to prospective updates to the Santa Maria Municipal Code and Downtown Specific Plan in an effort to provide support to small businesses and facilitate economic growth.
Environmental Notice: The activity is not a “Project” as defined und er Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Receive a presentation and provide direction related to prospective updates to the Santa Maria Municipal Code and Downtown Specific Plan.
BACKGROUND:
The City Council has long established Santa Maria as a business-friendly community that seeks to foster an environment that allows businesses to thrive. Smal l, locally-owned businesses serve as the backbone of our local economy, with an estimated 82% of Santa Maria businesses having fewer than 10 employees. These employers create jobs, provide essential goods and services, and give Santa Maria its distinct community character.
Despite this business -friendly atmosphere, certain components of the development review process can at times present obstacles for businesses in terms of both time and costs. This can be particularly burdensome for small businesses. The proposed Small Business Support Initiative would evaluate various opportunities to streamline the review process and recommend strategic improvements to foster economic growth.
DISCUSSION:
The City of Santa Maria continuously seeks opportunities to stren gthen its business - friendly reputation. Yet the permitting process can represent a significant barrier to entry or growth for businesses, particularly those that are small and locally -owned.
Entrepreneurs launching or expanding a business often have little or no experience with the development review process, and navigating the various approvals required for a given location can be time-consuming, costly, and discouraging. 2 One such challenge is the Conditional Use Permit (CUP) process. Current CUP fees and processing timelines place a disproportionate burden on small businesses that operate with limited capital and staff resources. These are the very businesses that make Santa Maria's neighborhoods and commercial corridors vibrant.
Additionally, the current approval process laid out in the Downtown Specific Plan at times creates additional hurdles for businesses locating in the downtown area. This has inadvertently created a setting where, depending upon the business size and type, locating elsewhere in the City can be significantly faster and easier than locating within the very geographic area the City is seeking to revitalize.
The Small Business Support Initiative aims to address these barriers. Staff will evaluate various opportunities to amend the Sant a Maria Municipal Code and the Downtown Specific Plan in an effort to catalyze economic development, with a particular emphasis on facilitating the startup and expansion of small, locally -owned businesses as well as fostering business attraction to the downtown area.
Potential examples may include, but are not limited to:
Including uses such as fitness centers and youth sports facilities as a by-right use in specific zones, which currently require a Conditional Use Permit (CUP) Modifying the Downtown Permit Review Matrix in the Downtown Specific Plan to increase opportunities for ministerial reviews
Eliminating requirements for multiple public hearings for small-scale projects in the Downtown Specific Plan
Evaluating additional opportunities for stream lining and ministerial reviews, thereby reducing development timelines and costs to encourage economic growth Fee reductions for qualifying small businesses
Any such changes require formal approval of the Planning Commission, followed by City Council approval.
Alternative(s)
The City Council may direct staff not to pursue opportunities for streamlining and small business support efforts. This would leave all current codes and development review processes in place.
Fiscal Considerations
None at this time. Any potential fiscal impacts would be quantified when changes to the municipal code and/or Downtown Specific Plan are formally proposed.
Impact on the Community
The Small Business Support Initiative aims to:
Create jobs by enabling more businesses to open and expand 3 Enhance services and amenities available to Santa Maria residents Preserve and celebrate the mom -and-pop business culture that makes Santa Maria a unique and vibrant place to live and work