Economic Recovery
Growth & Opportunity
Zoning Amendments
Downtown / Citywide
City Council
February 24, 2026
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Previous Economic Recovery Zoning Efforts
Continued Support for New & Existing SM Businesses
Council Adoption on August 12, 2025
Permanent Adoption of Promenade IZO (Partial)
❑ Restaurants w/Entertainment: Greater Flexibility
❑ Expanded Uses that can obtain Alcohol Exemptions: BC & OT, SM Place ❑ Eliminate Prohibition on Fast Food Restaurants on Promenade Updates to Promenade IZO
❑ Retention of Legal Non-Conforming FAR (buildings on the Promenade) Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Permanent Adoption of IZOs & Emergency Orders
❑ Downtown IZO & Palisades Emergency Order (schools, daycare early edu.) ❑ Outdoor Sidewalk Dining, Massage, RRR Standards
Downtown & Citywide Zoning Amendments
❑ Downtown:
▪ Additional Land Use Streamlining of Review & Limitations ▪ Expand Alcohol Exemptions to Expanded Uses to Entire Downtown Core. ❑ Citywide:
▪ Simplify Land Use Review, Limitations, Use Standards
❑ Policy Questions (4):
▪ Retail, Pub Crawls, Taprooms, Non-Conforming Bars (NC) Tonight’s Proposed Economic Recovery Zoning Efforts
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Downtown IZO
❑ Simplified Land Use Review: Eliminate Discretionary CUPs, MUPs ❑ Retention of Legal Non-Conforming FAR (buildings on the Promenade) ❑ Outdoor Commercial Uses Exclusively in Office Campus District Outdoor Dining & Seating on Sidewalks
❑ Design criteria moved to Administrative Guidelines
Personal Services: Massage IZO
❑ Removes MUP, distance between establishments, & facility requirements ❑ Codifies current EIZO provisions, with no additional changes Permanent Adoption: IZOs & Palisades Emergency Order
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Palisades Fire Emergency Order: Schools, Day Care & Early Education ❑ Waives CUP requirements for operators seeking relocation to Santa Monica ❑ Residential Districts: Palisades satellite campuses w/existing CUPs may expand to accommodate students without amending CUP.
Resource, Recovery & Recycling (RRR)
❑ Simplifies thresholds on trash enclosure upgrades
❑ Revises refuse dimensional standards, adds new threshold for food & beverage, etc.
❑ Initiated as part of the Self-Certification Pilot Program Permanent Adoption: IZOs & Palisades Emergency Order
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
❑ Simplify Land Use Review, Limitations, Use Standards
❑ Expanded Alcohol Exemptions: Downtown Core & SM Pier
▪ Food Halls & Bar Establishments
▪ Convenience Markets
▪ Cultural Facilities / Instructional Services
▪ Commercial Entertainment & Recreation (small & large) ▪ Retail
▪ Personal Services *** (new addition)
❑ Relocation of Existing Pawn Shops in the Downtown
▪ Allows Existing Non-Conforming Pawn Shops to relocate within the Downtown Area (except along Ocean Avenue)
Additional Changes to the Downtown
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Strategy on Simplifying Review Process, Restrictions & Limitations ❑ Build on the successes of recent changes made for Downtown; ❑ Target limitations and ground floor restrictions seen as barriers for new and existing businesses;
❑ Apply the same limitations and land use process to comparable uses; ❑ Remove or downgrade entitlement processes that are time consuming, expensive, and can be handled by the ZA, Director, or staff.; ❑ Maintain certain thresholds for NC to preserve GF activity.
Citywide Amendments: Strategy
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
❑ Conditional Use Permit (CUP)
▪ $10,000 for land use; $20,000 for alcohol
permit;
▪ Planning Commission Public Hearing;
▪ Appeals to City Council;
▪ Requires meeting eight findings (SMMC
9.41.060)
▪ Significant staff and applicant prep time and
coordination required.
▪ ~3-5 months.
❑ Minor Use Permit (MUP)
▪ $8,000;
▪ Zoning Administrator Public Hearing;
▪ Appeals to Planning Commission;
▪ Requires meeting same eight findings
(SMMC 9.41.060)
▪ Some staff and applicant prep time, much
less than required for PC
▪ ~2 months.
❑ Specific Limitations [L(X)]
▪ Standard conditions that must be met,
whether permitted by-right or with an
entitlement;
▪ May either be prohibited or require an
entitlement if limitation can’t be met;
▪ Limitations vary by use: max tenant size,
Parking, Loading, and Operations Plan
(PLOP) approval, residential buffer, GF
restrictions, etc.
❑ Permitted By-Right (“P”)
▪ Business license review only.
Entitlement Process (from hardest to easiest)
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Strategy on Simplifying Review Process, Restrictions, & Limitations ❑ Simplifying Review Process
▪ CUP to MUP:
▪ Use impacts are easily identified, typical for that use, and can be mitigated with simple conditions;
▪ Noise, Parking/Loading/Access, RRR, etc.
▪ Value in public hearing to address any community concerns; ▪ Right sizing the review process;
▪ Reviewed by Zoning Administrator instead of PC;
▪ Appealable to PC instead of CC;
▪ Requires same 8 findings for approval as a CUP (SMMC 9.41.060).
Citywide Amendments: Strategy
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Strategy on Simplifying Review Process, Restrictions, & Limitations ❑ Simplifying Review Process
▪ CUP/MUP to By-Right:
▪ Entitlements removed where they act as a deterrent for a use; ▪ Entitlements maintained where they are needed to evaluate a use for compatibility;
▪ Specific conditions on recently approved entitlements show that parking and loading were the greatest concerns:
▪ Parking, Loading, and Operations Plan (PLOP) requirement added in-lieu of an entitlement;
▪ Removed inconsistent application of entitlements:
▪ Comparable uses required different approval processes; ▪ Entitlements required for a use in new construction but not in existing buildings.
Citywide Amendments: Strategy
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Strategy on Simplifying Review Process, Restrictions & Limitations ❑ Simplifying Restrictions & Limitations
▪ Ground Floor (GF) Restrictions:
▪ Entitlement required based on GF tenant size and/or frontage length; ▪ Forces applicants to seek a loophole or face a time consuming and expensive process:
redesigning floor plans, chopping up tenant spaces, change business description to fit into other land use classifications.
▪ Removed inconsistent application of GF restrictions;
▪ Build on recent economic recovery efforts to fill vacancies. Also aligns with recent policy position for expanded uses at the GF, like housing; ▪ Design review still part of the approval process.
Citywide Amendments: Strategy
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Citywide Amendments: Common Land Uses,
Amendment Small-Scale
(0 – 25K)
Medium-Scale
(25K to 80K)
Large-Scale
(80K+)
Existing Regulation Permitted Conditional Use Permit CUP (BAP) Staff Proposal Permitted Minor Use Permit; OR
Permitted with Parking Loading Operations Plan
CUP (BAP, IC,
OC)
PC Proposal Permitted Minor Use Permit 25K to 50K;
Conditional Use Permit 50K to 80K
CUP (BAP, IC,
OC)
Retail Strategy
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Question # 1
Should a CUP be required for any Medium-Scale Retail (25K to 80K SF) proposed greater than 50,000 SF?
❑ What this Means:
▪ CUP required for retail between 50,000 SF and 80,000 SF Citywide; ▪ Under both options, retail between 25,000 SF and 50,000 SF is more flexible; ▪ No change for small-scale or large-scale retail.
❑ Options:
▪ YES: Retail between 50,000 SF and 80,000 SF will maintain the CUP requirement Citywide.
▪ NO: Retail between 50,000 and 80,000 SF will be permitted with PLOP Downtown and via MUP on boulevards.
Citywide Amendments: Policy Questions
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Citywide Amendments: Common Land Uses
Amendment Existing Buildings New Construction/Additions Existing Regulation Conditional Use Permit for use
greater than 15,000 SF
Conditional Use Permit for use greater
than 15,000 SF
Staff Proposal Parking Loading Operations Plan Parking Loading Operations Plan; AND Minor Use Permit when greater than
25,000 SF
PC Proposal with Staff Support Parking Loading Operations Plan Parking Loading Operations Plan; AND Minor Use Permit when greater than
30,000 SF
Grocery Store Strategy
❑ Barriers:
• Difficult to reoccupy recently vacant large-tenant space (Rite Aid sites > 15,000 SF) • Leads to chopping up of tenant spaces to meet size requirements and avoid CUP. ❑ Mobility Concerns:
• Parking, loading, operations, and access to existing grocery sites has been a concern.
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
❑ Alcoholic Beverages (Process Streamlining)
▪ Downgrade CUP to MUP as new baseline requirement except for Bar Establishments
▪ AE & Restaurants w/Entertainment criteria simplified per EO ▪ Admin request process to remove certain requirements per EO:
- Max. number of televisions
- Bottle Service
- Pub Crawls
- Amusement Gaming Activities: pool tables, darts, etc. - Max 35% sales from alcohol.
▪ Streamline AE processing: remove noticing/posting for >50 seats Citywide Amendments: Alcohol Streamlining
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Question # 2
Should alcohol-serving establishments be prohibited in participating in pub crawls?
❑ What this Means:
▪ Currently prohibits businesses from participating/organizing pub crawl events.
▪ Planning Commission expressed patron safety concerns. ❑ Options:
▪ YES: Maintains current pub crawl prohibition
▪ NO: Eliminates pub crawl prohibition for new and existing businesses Citywide Amendments: Policy Question
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Citywide Expansion of Alcohol Exemptions Beyond the Downtown ❑ Food Courts
❑ Taprooms
▪ Alternative that can provide flexibility for less traditional bar establishments not serving food.
❑ Cultural Facilities, Instructional Serv, Personal Services, Retail ▪ Art galleries, museums, day spas, beauty/barber shops seeking to enhance customer experience
Citywide Amendments: Alcohol Streamlining
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Question # 3
Should the closing hours be 9pm or 12am for Taprooms seeking an administrative Alcohol Exemption Permit?
❑ Options:
▪ Planning Commission: 9pm closing for Taprooms
▪ Staff Recommendation: 12am closing for Taprooms, aligned with Restaurant closing hours
Citywide Amendments : Policy Question
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
❑ Community Assembly
▪ Eliminates min. 7,500 sf parcel size qualifier
▪ Adds a PLOP requirement, removes hour restrictions
❑ Restaurants, Limited Service & Take-Out
▪ Expands closing hours from 10pm to 12am (includes fast-casual) ❑ Small Scale Facilities: Game Arcades
▪ Removes this entire section of outdated arcade standards. ❑ Eating & Drinking Establishments
▪ Reclassed for clearer organization for land use review purposes ❑ Personal Services, Physical Training
▪ All forms of exercise/fitness permitted by-right (instead of CUP) Citywide Amendments: Specific Use Standards
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
❑ Allows existing bars to reopen if closed longer than 12 months ❑ Prior use of space must have operated as a bar establishment ❑ Provides opportunity to preserve existing bar locations that have historically been a part of the Main Street Commercial area. ❑ Addresses the potential permanent loss of bars on Main Street as new bar establishments are not permitted in the district. ❑ Same provision allowed for bars in the Downtown and for other uses including restaurants & retail citywide.
Reopening of Bars on Main Street (NC District)
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Question # 4
Should previously operating bars that have closed in the NC Main Street District be allowed to reopen if the bar has been closed for more than 12 months? ❑ What this Means:
▪ Bars are considered Non-Conforming Uses since new bars are not permitted. ▪ Non-Conforming Use Standards require any non-conforming business closed more than 12 months to reoccupy with a conforming use.
❑ Options:
▪ YES: Allows existing bars within the NC Main Street district to reopen even if the bar has been closed for more than 12 months.
▪ NO: Existing vacant bars closed for more than 12 months will be terminated permanently based on non-conforming status since new bars are prohibited in the district.
Citywide Amendments: Policy Question
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
RRR Amendments - Room Dimensions (revisions)
TABLE 9.21.130.A: MINIMUM RESOURCE AND RECYCLING ROOM DIMENSIONS –
RESIDENTIAL MULTI-UNIT DEVELOPMENT
Number of
Residential Units
Minimum Room Dimensions
Width (ft.) Length (ft.) Height (ft.)
3 – 10 units 2122 ft. 21 ft. 7.510 ft. 7.5 ft. 10 ft. (1) 11 – 20 units 2122 ft. 21 ft. 14 ft. 10 ft. (1)
21 40 units or greater 28 ft. 20 ft. 10 ft. (1)
(1) An outdoor enclosure must have walls at least 6 ft. in height and an opening at least 8 ft. wide.
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
RRR Amendments – Room Dimensions (revisions)
TABLE 9.21.130.B: MINIMUM RESOURCE AND RECYCLING ROOM DIMENSIONS –
NONRESIDENTIAL DEVELOPMENT AND MIXED-USE
Aggregate Floor Area Minimum Room Dimensions
Width (ft.) Length (ft.) Height (ft.)
Less than 5,000 sq. ft. 2122 ft. 21 ft. 7.510 ft. 7.5 ft. 10 ft. 5,001 – 20,000 sq. ft. 2122 ft. 21 ft. 14 ft. 10 ft.
20,001 sq. ft. -40,000
sq. or greater
28 ft. 20 ft. 10.t.
4. Large Residential, Nonresidential and Mixed-Use Development. Any development, whether residential, nonresidential, or mixed-use with more than 40 residential units, or with more than 40,000 square feet of floor area shall be reviewed by the Director of Public Works, who shall require the design and placement of a refuse and recycling room or outdoor enclosure consistent with the purpose of this Section to provide adequate and accessible areas for the storage and collection of refuse and recyclable materials.
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Recommendation
1. Permanent Adoption of IZOs & EO Provisions
Adoption of Downtown & Citywide Amendments
2. Adoption of CEQA Exemptions:
- Section 15301
- Section 15061(b)(3)
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Question # 1
Should a CUP be required for any Medium-Scale Retail (25K to 80K SF) proposed greater than 50,000 SF?
Question # 2
Should alcohol-serving establishments be prohibited in participating in pub crawls?
Question # 3
Should the closing hours be 9pm or 12am for Taproom Alcohol Exemption Permits?
Question # 4
Should previously operating bars that have closed in the NC Main Street District be allowed to reopen if the bar has been closed for more than 12 months? Policy Question Summary
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
CUPs Downgraded to MUPs
❑ DCP (As a model for Citywide)
▪ Office (GF) greater than 7,500 SF
❑ Boulevards
▪ Grooming and Pet Stores less than
12,500 SF
▪ Small-scale facilities less than 5,000 SF
▪ Retail between 25,000 & 80,000 SF
▪ Food Hall greater than 10,000 SF
▪ Restaurants > 5,000 SF
▪ Additional limitations for NC.
❑ Bergamot Area
▪ Non-creative offices greater than
5,000 SF
❑ Employment Districts
▪ Community Assembly (e.g.
membership clubs)
▪ Small-scale facilities less than 5,000
SF
Citywide Amendments: Common Land Uses
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
❑ DCP (As a model for Citywide)
▪ Community Assembly (e.g.
membership clubs)
▪ Food Halls
▪ Retail < 80,000 SF
❑ Boulevards
▪ Community Assembly not adjacent
to residential
▪ Banks
▪ Food Halls < 10,000 SF
▪ Retail < 25,000 SF
▪ Additional limitations for NC.
❑ Bergamot Area
▪ Community Assembly
▪ Commercial Kitchens
▪ Retail < 80,000 SF
❑ Employment Districts
▪ Community Assembly not adjacent
to residential
▪ Retail < 80,000 SF
Citywide Amendments: Common Land Uses
CUPs and MUPs Downgraded to By-Right
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
❑ DCP (As a model for Citywide)
▪ Media Support Facilities
(production)
▪ All Office Uses
▪ Nurseries/Gardens
▪ Instructional Services
▪ Convenience Markets
▪ Small-Scale Facilities
❑ Boulevards
▪ Media Support Facilities
(production)
▪ General Personal Services
▪ All Office Uses, except NC
❑ Bergamot Area
▪ Business and Professional Office
▪ Medical and Dental Office
❑ Employment Districts
▪ Instructional Services
▪ Banks
Citywide Amendments: Common Land Uses
Removal of Tenant Size and/or Frontage Restrictions
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
Resource Recovery & Recycling Amendments
• December 16, 2025 – Council approved the establishment of a Self-Certification Pilot Program • January 13, 2026 – Council adopted Interim Zoning Ordinance (IZO) Number 2844, which amended SMMC Section 9.21.130, Resource Recovery and Recycling Standards, to update applicability thresholds and standards for resource and recycling room dimensions in order to further economic recovery efforts by facilitating a Self-Certification Pilot Program. • January 21, 2026 – Planning Commission recommendation to Council to permanently adopt IZO amendments
• February 24, 2026 – Proposed Council adoption of proposed amendments (effective April 9, 2026) • IZO 2844 expires on April 13, 2026, unless extended (staff proposes 180-day extension) Item 12-B
February 24, 2026
Item 12-B
February 24, 2026
RRR Amendments - Applicability
Section 9.21.130. Resource Recovery and Recycling Standards.
A. Applicability. All uses shall provide refuse and recycling storage and staging areas that comply with the standards of this Section. Refuse and recycling rooms meeting the standards of subsection (C) shall be provided in conjunction with:
1. New construction for which a building permit is required.
2. Improvements affecting refuse and recycling areas of publicly owned facilities.
3. Additions that Alterations of which the sum total of all improvements within a twelve month period either adds 30% or more to the existing floor area or the aggregate permit valuation as determined by CPI.
4. Eating and Drinking Establishments, as defined in Section 9.51.030(B)(8), and Food and Beverage Sales, as defined in Section 9.51.030(B)(10).
Item 12-B
February 24, 2026
Item 12-B
February 24, 2026