City Council
Report
City Council Meeting: April 22, 2025
Agenda Item: 10.A
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To: Mayor and City Council
From: Arminé Chaparyan, Director, Administration
Subject: Introduction and Adoption of an Emergency Ordinance Adding Chapter 6.43 and Amending Section 4.08.200 Relating to the Third Street Promenade Entertainment Zone Pilot Program
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Introduce and Adopt an Emergency Ordinance Adding Chapter 6.43 and Amending Section 4.08.200 to the Santa Monica Municipal Code Relating to the Entertainment Zone Pilot Program to Promote Economic Recovery.
Summary
As part of the City’s focus on economic recovery, City Council has adopted numerous emergency ordinances to support Santa Monica’s existing businesses while drawing new businesses into the City. These ordinances have included, but are not limited to, the relaxation of land use restrictions, permit streamlining including simplifying alcohol permits for new restaurants with relaxed operating requirements, and adoption of the Santa Monica Outdoors Program authorizing street parklets and use of outdoor private space for commercial activity. While many of these recent ordinances to simplify requirements have been implemented citywide, there has been a particular focus on Santa Monica’s downtown and the Third Street Promenade area.
In its ongoing efforts to promote economic recovery and growth downtown, on October 22, 2024, Council directed the City Attorney and City Manager to “review and analyze State Senate Bill 969 (SB 969), which Governor Gavin Newsom had recently signed, 2 of 10
and with due speed take all necessary steps and draft all necessary ordinances and policies that would allow the establishment of an “entertainment zone” (as that term is defined in California State Senate Bill 969) on the Third Street Promenade in Downtown Santa Monica.” Since then, the City Planning Division has consulted with other City departments, Downtown Santa Monica, Inc. (DTSM), and the California Department of Alcohol Beverage Control (ABC), to draft an ordinance establishing an entertainment zone on the Third Street Promenade. This pilot program is being structured around permitted events to allow the service of alcohol within the entertainment zone, with the goal of holding the first event in conjunction with Pride on the Promenade in June 2025.
At the request of the Santa Monica’s Chief of Police, the new ordinance is proposed as a one-year pilot program allowing Staff to assess the success of the entertainment zone and revise implementation if necessary.
This report provides background on SB 969 as it allows the creation of an entertainment zone, lessons learned from the City of San Francisco and that jurisdiction’s experience establishing an entertainment zone, requirements for enacting the ordinance, and staff’s proposed implementation plan. Staff also poses a policy question regarding the implementation of the entertainment zones for Council consideration.
The establishment of an entertainment zone on the Third Street Promenade, guided by the framework of SB 969 and informed by the experiences of San Francisco, presents a significant opportunity for Santa Monica to continue fostering economic recovery in its downtown area. By creating a vibrant and engaging public space where families can gather and adults can responsibly enjoy alcoholic beverages purchased from local businesses, the City can attract more visitors, increase foot traffic, and boost spending at Promenade establishments
Discussion
Background on SB 969
Signed by Governor Newsom on September 28, 2024, SB 969 allows local governments to create entertainment zones where on-sale alcohol licenses (i.e. restaurants and bars) can sell alcohol to-go for consumption in designated public 3 of 10
spaces. The program built on 2023’s Senate Bill 76, which permitted entertainment zones exclusively in the City of San Francisco, where a successful pilot program focused on Downtown’s Front Street, prompted Senator Wiener to push for a statewide expansion.
The bill empowers local governments to designate specific areas for public alcohol consumption, including streets, sidewalks, and public rights-of-way. It also requires cities and counties to implement procedures for clearly marking zone boundaries, verifying participants’ ages, and sharing operational parameters with the ABC.
Businesses within these areas can sell alcohol in open containers for public consumption pursuant to established entertainment zone procedures in addition to allowances and limitations of their respective ABC licenses and local land use entitlements.
Since the passing of SB 969, San Francisco’s Front Street Entertainment Zone has held events tied to holidays including Halloween and Saint Patrick’s Day, with programming such as live music and games to help draw crowds. One participating business, Harrington’s Bar and Grill, reported an increase in sales of 1,500% during Front Street’s inaugural event. In addition to Front Street, the City of San Francisco has established three other entertainment zones at Chase Center, Harland Place, and Cole Valley. The San Francisco Board of Supervisors is reviewing requests to create two additional zones in the Castro District and Union Street.
Lessons Learned from San Francisco
Having established an entertainment zone on Front Street under prior legislation, San Francisco’s experience has provided useful lessons learned for implementation in Santa Monica. One lesson learned from San Francisco is the importance of adaptability through the establishment of an administrative Management Plan to govern the standards and requirements of an entertainment zone instead of codifying such provisions into an Ordinance. Establishment of administrative regulations and Management Plan for the program allows immediate changes to requirements resulting in greater responsiveness and adaptability to quickly address evolving needs, 4 of 10
unforeseen challenges, and to accommodate novel events without frequent legislative amendments.
San Francisco's experience also highlights that entertainment zones are most successful when community partners are involved and sufficiently resourced to effectively manage and implement these events. Additionally, San Francisco stressed that proper programming of entertainment zone events is key to success but achieving that success comes with a substantial financial cost. By crafting an Ordinance and Management Plan, allowing promotional advertising, streamlined approval, and potential self-certification of permits, event organizers will be better enabled to manage logistics associated with running their reoccurring events with the additional benefits of an entertainment zone.
Furthermore, San Francisco's efforts to focus multiple City departments on a single review process created a well-coordinated approach that helped avoid conflicts, streamline the application process, and ensured the entertainment zone operates within the broader regulatory framework of the City.
Requirements of State Law
Ordinance
Pursuant to SB 969, to establish an entertainment zone on the Third Street Promenade, staff recommends the City Council to adopt the attached ordinance adding Chapter
6.43, Entertainment Zone Pilot Program, in Article 6 of the Santa Monica Municipal Code (SMMC) that provides for the following:
• Clearly defined geographical boundaries of the entertainment zone; • Operating hours during which an entertainment zone may be activated; and • Types of alcohol to be served.
In addition to adopting a new ordinance to activate the ability to establish an entertainment zone, amendments to SMMC Section 4.08.200, Drinking Upon Public 5 of 10
Property, must be made to create an exception for the entertainment zone during its operating hours.
Management Plan
A comprehensive Management Plan created in coordination with an inter-departmental team led by City Planning including Police, Fire, City Attorney, Public Works (including RRR), Mobility, Building & Safety, Economic Development, and Recreation & Arts will provide responsive and detailed guidelines for the successful operation of the entertainment zone. Additionally, the Management Plan will be informed by discussions with DTSM that have led to a greater understanding of first-hand experience in the City’s community events process and organizing events and ways to help improve the City’s current event approval process. These conversations will help refine the Management Plan requirements and the overall proposed application process.
The Management Plan will include refined operational requirements detailing the practical aspects of the zone's functioning, such as guidelines for participating businesses, security protocols, frequency of activations, hours of operation, sanitation measures, potential street closure requirements, the identification of approved nonglass and non-metal containers, and methods for age verification. During the pilot, entertainment zone activations are expected to follow the same basic operation and programming as events DTSM has sponsored in previous years. While reviewing department’s set requirements based on the review of each event’s unique circumstances, many have standard guidelines applied to the Promenade. Below is a summary of key components that will be included in the Management Plan:
• Safety Requirements:
o In past events, the Fire Department has allowed some repeat organizers to use their own staff as a day-of Fire Safety Officer (FSO) to ensure events on the Promenade follow agreed upon regulations regarding maintaining a passable roadway, locations of equipment, booths, vendors, and props. Events may also be required to hire Fire Department Staff to operate as the FSO. If an event has an expected turnout of 5,000 or more 6 of 10
people, additional requirements from LA County for a Mass Gathering event are necessary. These include developing a formal plan for communications within the event, fixed and mobile medical resources such as a first aid tent and/or bicycle EMTs, and coordination with other local and area organizations.
o With the addition of open containers of alcohol, the Police Department has requested that beyond standard requirements for community events, barriers be located at both ends of that portion of the entertainment zone being activated to better monitor that alcohol is not brought in or out.
Police would likely staff a one-block activation of the event with at least four officers. As stated above, the requirements, activities, and circumstances of each event mean that these guidelines may need to be modified ahead of the event.
• Refuse
o Public Works will work directly with event organizers to ensure adequate services, receptacles, and refuse storage is available for the size of the event. Event organizers will be required to handle trash generated by their events using existing or temporary receptacles. For larger events with expected attendance at one time of 1,500 people or more, Public Works may ask the organizer to utilize a private hauler to offset existing infrastructure during weekend events. Zero waste policies are encouraged for all events.
• California Department of Alcoholic Beverage Control (ABC) o As required by SB 969, in order for individual alcohol providers to participate in an entertainment zone event they must notify ABC through an online notification portal and confirm with the City that they have done so.
• Operational Components
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o As required by SB 969, containers for alcohol served in the entertainment zone are not permitted to be glass or metal. Although not expressly required in the State law, branded containers used by participating vendors would add cohesiveness to the event and identify beverages purchased within the entertainment zone from those brought from the outside. Additionally, the state requires that persons in possession of alcoholic beverages are readily identifiable as being 21 years of age or older. Therefore, wristbands issued after an ID check are common solution in similar events. Hand stamps have the advantage of creating less waste but are more difficult to identify at a distance.
Implementation & Pilot Streamlined Events Process
As recommended by the Police Chief, the implementation of the entertainment zone is proposed as a one-year pilot program with at least three events currently anticipated, the first being DTSM’s annual Pride event on June 21, 2025. Upon conclusion of the pilot staff will report to Council with recommendations on how to proceed with future entertainment zones.
Permitting events in the entertainment zone will be based on the Community Event Permit process as shown in Figure 1 below, as a starting point for interdepartmental review of entertainment zone activations.
Figure 1: Sample of Community Event Permit Process
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As a pilot, there are opportunities to review the way the events are permitted and opportunities for process efficiency through standardization of requirements and plans that can be used over multiple events. This approach can reduce the administrative burden and leverage existing expertise. The process improvements are focused around:
• Pre-approved operation, security, and site plans;
• Investigating the potential for self-certification of certain temporary building permits;
• Allowing for annual reviews of insurance and other obligations; • Requiring pre-event meetings with relevant city divisions; and • Eliminating limitations on branding for sponsorship opportunities.
A key strategy for streamlining involves standardization and the development of preapproved plans. With annual events having similar operations, establishing preapproved plans for operation, security, and site plans tailored for entertainment zone events on the Promenade can significantly expedite the permit review process. Through initial discussions with Police, Fire, and Public Works Departments, there is conceptual agreement that such an initiative appears feasible. Further efficiencies can be achieved by expediting the review process for repeat event operators. Conversations with Risk Management have led to potential expediting by conducting an annual review of an operator’s insurance requirements instead of as part of each event.
Beyond streamlining the existing permit review process, staff is exploring the possibility of self-certification of building permits for certain temporary structures associated with 9 of 10
events, such as stages, step-and-repeats, or kiosks, which could further accelerate the permitting timeline. The Building & Safety division is open to this concept provided plans are stamped by a licensed professional and are still subject to final inspection.
Additionally, to further enhance clarity and prevent confusion over requirements and avoid potential conflict between requirements staff is exploring a pre-event coordination meeting between relevant City Departments and the event operator. Finally, eliminating existing limitations on branding for sponsorship opportunities within the entertainment zone could help maximize revenue generation for events, contributing to the financial sustainability of the initiative.
Policy Questions
In staff’s efforts to implement SB 969 and find ways to ensure the pilot program’s success, staff would like Council to consider the following policy question:
Is the City Council interested in directing staff to continue developing a streamlined pilot entertainment zone permit process (that may include a selfcertification component) and that relies on standardized plans where applicable but does not compromise public safety requirements?
Environmental Review
The ordinance to establish an entertainment zone in the Downtown is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines. Section 15301/Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The ordinance to establish an entertainment zone would not increase development or expand the existing use, but rather, would relax certain land use restrictions, streamline alcohol permits for existing restaurants, and authorize street parklets and use of outdoor private space for commercial activity. These provisions of the ordinance would not result in adverse environmental impacts. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 10 of 10
15300.2 would apply. Therefore, the ordinance is exempt from CEQA pursuant to Section 15301 and no further environmental review is required.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Event organizers during this pilot program will be responsible for covering all costs associated with the events. Staff will return to Council if specific budget actions are required in the future.
Prepared By: James Combs, Senior Planner
Approved Forwarded to Council
Attachments:
A. Entertainment Zone Ordinance
B. Entertainment Zone Promenade Map
C. Written Comments