City Council
Report
City Council Meeting: May 13, 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 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 Promenade Entertainment Zone Program to Promote Economic Recovery.
Summary
On April 22, 2025, Council reviewed staff’s proposal to establish an Entertainment Zone on the Third Street Promenade and provided the following direction for revisions to the proposed ordinance:
• Make the program permanent instead of a pilot,
• Expand the program by changing to a seven days per week program allowing activations from 8am – 2am so that it allows a regular and predictable activation instead of only event-based,
• Work with Downtown Santa Monica, Inc. (DTSM) and other partners on marketing incentives, branding, sponsorship opportunities, and technical assistance,
• Provide initial evaluation report to Council six months from the activation of the Entertainment Zone,
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• Continue to work on simplifying the events permitting process and reducing the cost of conducting events within the Promenade Entertainment Zone, and • Consider potential expansion of the Entertainment Zone boundaries to crossstreets.
Staff evaluated the possibility of a geographic expansion of the Entertainment Zone (e.g. to include alleys, Second Street, Fourth Street, or Ocean Avenue) but after consultation with DTSM, ultimately the DTSM Board voted at their April 24, 2025 meeting to focus on the Promenade only. Security concerns were also expressed by both the DTSM Board, DTSM staff, and the City’s police department about the ability to manage consumption of alcoholic beverages if the boundaries of the Entertainment Zone were expanded including concerns about managing alcohol consumption in alleys which are open to vehicle traffic. As a result, the Entertainment Zone is focused only on the Third Street Promenade. Public safety considerations and recommendations are also summarized in this report. The attached ordinance is responsive to Council direction and includes the following revised provisions:
• Allow activation of the entertainment zone within the maximum hours of 8AM to 2AM
o Note that the hours for any activation could be less than these maximum hours if needed to address public safety concerns arising from activations of the Entertainment Zone
• 6-month evaluation from date of first activation of the Entertainment Zone. This report would evaluate the effect of the Entertainment Zone on key metrics such as:
o Crime rates
o Calls for service
o Impacts on revenue for businesses in the Entertainment Zone o Foot traffic on the Promenade
o Business surveys
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Once passed, the ordinance will take immediate effect with a program launch that could be as soon as early June but would be dependent on DTSM and the City having the appropriate operational and security safeguards (e.g. appropriate signage on the Promenade and alcohol safety training for participating businesses) in place to ensure a safe and successful patron experience. Staff anticipates outreach to Promenade businesses who have alcohol licenses to provide education about the program and how to participate. The regular activation will allow any individual business on the Promenade that is licensed to serve alcohol to easily participate in the Entertainment Zone by notifying ABC of their participation, signing a simple one-page participation agreement agreeing to comply with the terms and conditions of the ordinance and management plan, and receive free wristbands provided by the City for the purposes of identifying customers over 21 years of age. This regular activation will be augmented by the Entertainment Zone’s launch event, anticipated to be Pride on the Promenade on June 21, 2025. The following diagram provides a general overview of the rollout process for the daily activation of the Entertainment Zone:
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Figure 1: General Process Overview of Promenade Entertainment Zone Rollout Discussion
The proposed Entertainment Zone hours of 8AM to 2AM are in line with the hours permitted by administrative alcohol entitlements issued on the Promenade and provide flexibility for accommodating things like international sporting events early in the morning and holidays that may not predictably fall on weekends. However, of the 13 existing establishments licensed to serve alcohol on the Promenade only six advertise hours past 10PM on weekends. Even with the proposed hours, it is not anticipated that every business will take advantage of being open 18 hours per day, seven days per week. The following diagrams show all businesses that hold alcohol licenses on the Promenade by block.
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Figure 2: Businesses Holding Alcohol License on 1200 Block of Promenade Figure 3: Businesses Holding Alcohol License on 1300 Block of Promenade (note that Westside Comedy Theater entrance is on alley and not eligible to participate in Entertainment Zone) 6 of 11
Figure 4: Businesses Holding Alcohol License on 1400 Block of Promenade While it is impossible to predict exactly what will happen with this first-of-its-kind activation in Southern California, City services are not anticipating substantial operational changes associated with the daily activation of the Entertainment Zone but are preparing for a successful program that brings significant patron participation. The Promenade Maintenance team noted that their shifts end around 10PM so near term there may be a need for more trash receptacles for the to-go cups generated, especially after their shift ends until 2AM. As nightlife and crowds increase, staffing levels may also need to be returned to prior levels (approximately 10-15 years ago) when maintenance on weekend night shifts was extended with two hours of overtime until midnight. Further, Resource Recovery and Recycling staff have indicated that if a daily activation of the Entertainment Zone requires a second collection and emptying of bins in the parking structures (in order to minimize scavenging, dumpster fire, and public health issues), this may result in additional overtime of $618/day based on today’s staffing costs. If that is needed over the course of a year, that could potentially result in overtime totaling $225,000 annually. Staff would need to further work on how these costs could be charged to participating businesses if it is found that the Entertainment Zone activation is resulting in need for additional City services.
Public Safety Considerations
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Before enacting an Entertainment Zone ordinance, State law (Business and Professional Code Section 25962) requires notification of local law enforcement to request feedback regarding:
(1) Potential health and safety impacts that might be generated by the Entertainment Zone and strategies to mitigate those impacts; and
(2) The Entertainment Zone’s proposed boundaries, days and hours of operation, types of alcohol beverages permitted, and approved non-glass and non-metal containers.
Staff consulted with the Police Department, Fire Department, and Public Works as essential partners in implementing the Entertainment Zone. All city departments are dedicated to revitalizing the Third Street Promenade and are committed to ensuring the success of the Entertainment Zone. However, there are some issues that staff would like to bring to Council's attention:
• Hours and Security at closing time: Consideration of adjusting hours to start at noon Monday – Friday and 10AM on Saturday and Sunday as SMPD staffing does not peak until closer to noon; maintain private security presence particularly at closing time (up to 2AM)
o Recommended Implementation:
▪ SMPD already staffs overtime to the downtown area Friday, Saturday, and Sundays
• 2 officers 11AM-8PM
• 4 officers, 1 sergeant 6PM-2:30AM
▪ DTSM confirmed that private security teams begin at 6AM ▪ DTSM Security needs to monitor the east/west cross streets between Wilshire and Broadway to ensure that patrons do not wander beyond the Third Street Promenade with open containers of alcohol
▪ DTSM confirmed that they are able to shift deployment of private security to extend to 2AM on the Promenade
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• Starting Hours Alternatives: A process to request to activate the Entertainment Zone as early as 8AM if it coincides with Promenade major events such as parades, festivals, watch parties, or televised international sporting events (e.g. soccer games, international baseball or football games) will be included in the management plan.
• Signage: Signage to delineate the boundaries of the Entertainment Zone so that customers are clear about where public consumption of alcohol is not allowed o Recommended Implementation
▪ DTSM confirmed that they will be providing area appropriate signage and large, well-defined ground stickers both at perimeter and within the Entertainment Zone
Regarding the Entertainment Zone hours, staff recommends that the ordinance maintain the maximum allowable hours of 8AM to 2AM as hours can be modified to be more restrictive in the management plan associated with any activation of the Entertainment Zone in order to address any operational limitations.
Breakdown of Typical Event Costs for Third-Party Organizers As a follow-up to Council’s request for information regarding the City costs that may be associated with an event, the following table provides a breakdown for event costs assuming a typical 8-hour event:
Department Estimated
Approximate Cost
Approximate Staffing
Assumption for 8-hour
event
Fire Department $2,412.10a 1 Fire Safety Officer
Police Department $3,304.96b-
$7,730.24c per
block
4 Police Officers per block
Public Works – Promenade
Maintenance
$2,300d 1 additional Promenade
staff, per shift, per block
running two shifts between
5AM to 10:30PM
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Department Estimated
Approximate Cost
Approximate Staffing
Assumption for 8-hour
event
Public Works – RRR $1,500 (varies
depending on scale
of event)e
Note that events
anticipated to exceed 1,500
people will require event
organizer to use private
hauler instead
Estimated Approximate Total
Cost Range $9,517.06 - $13,942.34
a 8 hour event plus one hour prior to the event start (9 hours total) costs $2,412.10 b Overtime rate for city-sponsored event is $103.28/hr (32 hours of overtime total) costs $3,304.96 c Overtime rate for third-party special event is $241.57/hr (32 hours of overtime total) costs $7,730.24 d Overtime rate is $49/hour or $393 per shift for pre- and post-event cleaning e Costs may include permit fee, costs for containers, and extra solid waste, recyclables, and organics collection
Note that the above costs may be waived if the event is City produced or co-produced.
In the past two years, DTSM has produced 57 events and paid nominal fees or had fees waived (including 2024 Pride on the Promenade). For comparison there have been four non-DTSM events organized by third parties. As mentioned in the April 22, 2025 staff report, interdepartmental collaboration on identifying ways of simplifying the events permitting process will continue as part of the Entertainment Zone program.
Tracking Success
To track the success of the Entertainment Zone, Community Development staff will coordinate an evaluation report in consultation with key partners six months after activation of the Entertainment Zone. DTSM has agreed to share data including Promenade foot traffic, calls for service for private security, as well as surveys of local business owners to under revenue impacts to augment the sales tax data available to the City. Police and Fire will also provide additional metrics such as crime rates and calls for service to illuminate how safety on the Promenade has been affected.
Alternatives
Concerns have been raised by residents that would be most immediately impacted by implementation of the Entertainment Zone including concerns about noise generated by 10 of 11
events and businesses on the Promenade. Code Enforcement staff have been diligently investigating complaints and businesses are directed to point any speakers away from the residential neighborhood. In order to address concerns, should Council wish to consider a different approach to the Entertainment Zone, the following alternatives are presented for Council consideration:
1. Do not adopt the proposed Entertainment Zone ordinance;
2. Adopt a modified Entertainment Zone ordinance to be event-based (same as ordinance proposed on April 22, 2025); or
3. Modify the proposed ordinance to limit its activation (e.g. different boundaries, different days and/or maximum allowable hours). For example, in order to mitigated potential impacts to the residential neighborhood immediately north of the Promenade, Council could limit the maximum allowable hours of the Entertainment Zone in the Promenade’s 1200 Block to less than 2AM or limit the days that the Entertainment Zone could be activated.
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 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
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There is no immediate financial impact or budget action necessary as a result of the recommended action. Event organizers will be responsible for covering all costs associated with the events. Further, potential impacts to City services associated with the daily activation of the Entertainment Zone will be monitored as part of program evaluation. Should there be impact on City services, adjustments can be made in the management plan to ensure that participating businesses are responsible for covering costs. Staff will return to Council if specific budget actions are required in the future.
Prepared By: Jing Yeo, Planning Manager
Approved Forwarded to Council
Attachments:
A. Entertainment Zone Ordinance_May 13
B. Written Comments