Santa Monica’s economy has taken a beating in recent years but officials hope putting some ice on it will help.
The Santa Monica City Council is holding negotiations with the LA Kings for an outdoor game, which would occupy not only the Pier address but also Beach Parking Lot 1 North and a sand area of approximately 15,000 square feet north of the beach bike path — bordered on the east by the bike path, on the west by the Pacific Ocean, and running to Lifeguard Tower 14.
It’s one of two negotiations scheduled for Tuesday night (the other is price and terms of a license with Fever Lab, Inc. for use of property at 200 Santa Monica Pier) that are part of an ongoing effort to revitalize the City's fortunes based around events and entertainment.
The NHL has been expanding its outdoor games over the past 10 years under three brands, the NHL Winter Classic, the NHL Heritage Classic and the Stadium Series. Games travel to different cities under each brand and the inaugural Stadium Series was previously hosted by the Kings at Dodger Stadium in 2014. A 2026 outdoor game in Florida was made possible by building the rink in a temperature controlled tent that was removed prior to the game’s start.
The negotiations come as Santa Monica executes an ambitious events-driven recovery plan following a fiscal-distress declaration last year.
The declaration cited a projected structural deficit of approximately $29.6 million by fiscal year 2026-27, fueled in part by more than $229 million in sex-abuse settlement payouts tied to the Uller case and compounded by a 26.8% pandemic-era drop in General Fund revenue.
The effects have been visible. The Third Street Promenade has posted increasing vacancy rates. Recent departures include H&M, AMC Theatres, Anthropologie and Nordstrom. Foot traffic on the Promenade dropped more than 40% between July 2017 and July 2023.
Tourism, which accounts for roughly 46% of General Fund revenues, has also stalled. The city drew 4.2 million visitors in 2024, generating $916.6 million in spending and $62.7 million in transient occupancy tax — but that visitor total is half the 8.4 million recorded in 2019. TOT revenue fell 10% and sales tax revenue fell 6% in fiscal year 2024-25.
City officials have responded with an events and entertainment strategy they describe as central to a citywide recovery. In December 2025, the council approved five major event partnerships — including with concert promoter Goldenvoice, ESPN, Club France and hospitality company Hochsitz/Silverback — anchored by a $3 million economic development fund and the launch of Southern California's first Entertainment Zone on the Promenade.
The Goldenvoice deal, the most prominent piece of the strategy, calls for a one-day ticketed beachfront music festival in fall 2026 on approximately 12.5 acres south of the Pier, with 30,000 to 35,000 attendees and 12 to 15 performing acts. The event is planned to recur annually through 2028. A Michelob ULTRA Pitchside Club tied to the FIFA World Cup is slated for the Pier in June 2026, and ESPN has agreed to broadcast from the Pier and beach during Super Bowl week in February 2027. Club France is planned at the Annenberg Community Beach House during the 2028 Los Angeles Olympics.
A revised financial outlook released with the Realignment Plan update in March 2026 projected General Fund surpluses through fiscal year 2030 — a sharp reversal from the deficit projections issued just months earlier. Officials have cautioned, however, that the projection depends on whether the events strategy delivers sustained gains in TOT, sales tax and parking revenues alongside public safety investments aimed at restoring foot traffic downtown.