New law aims to attract more small businesses to Promenade
In an effort designed to slow the corporate takeover of downtown, the City Council on Tuesday agreed to limit storefront sizes on the Third Street Promenade.
New businesses on the Promenade soon will be allowed only 50 feet of storefront, unless they apply for a special permit, according to the new ordinance.
The move is part of a broader effort by City Hall to control the balance of chain stores and independent businesses in Santa Monica, where escalating rents and heightened competition have made it difficult for restaurants and small shops to thrive.
Because chain stores typically lease larger spaces, officials believe by limiting them it will encourage small business growth on the outdoor mall, which has become largely corporate. Over the years, many chain stores have leased neighboring properties and torn down the walls to increase square footage.
City Councilman Kevin McKeown said City Hall policies should support the small, independently owned businesses that are unique to Santa Monica.
“They’re being forced out,” he said. Council members, who unanimously approved the interim ordinance, said City Hall will consider exceptions for popular vendors, like downtown’s movie theaters, that require extra space. They said the potential benefit of allowing some larger establishments may outweigh the drawbacks.
However, council members said it’s important to limit the large retailers and prevent them from dominating downtown.
Mayor Richard Bloom said chain stores are available to consumers anywhere but what’s really needed downtown is more small businesses. He said City Hall should explore ways of holding back the tide of corporatization.
But limiting chain stores can be tricky legally, officials warn. Because they are corporations with outlets in multiple states, any efforts to curtail chains can be seen as a violation of federal law, which protects interstate business.
Mark Richter, City Hall’s director of economic development, pointed to similar efforts by the cities of Santa Cruz and San Francisco that limit the amount of square footage a store can occupy, but stops short of explicitly barring chain stores.
The new restriction isn’t aimed at chain stores alone, but at all large businesses, said Kathleen Rawson, executive director of the Bayside District Corp., a non-profit that manages downtown in conjunction with City Hall. Rawson said whether they are chain stores or not, too many large stores can detract from the ambiance of the Promenade, which benefits from a balance of different types of businesses.
The City Council on Tuesday also pushed forward legislation that could make it easier for restaurants to open their doors on the Promenade and increase the amount of outdoor dining there.
Currently, restaurants can rent space on the sidewalk in front of their businesses from City Hall for outdoor seating. Officials would like that program expanded.
One possibility is putting tables in the center of the Promenade. But City Attorney Marsha Moutrie said that may infringe on First Amendment rights because it takes space away from the public. And Mayor Bloom said because the Promenade is so crowded, especially on weekends, the space is in high demand by pedestrians.
Those issues will be discussed by officials in City Hall and a decision will be made in the coming months. All of the suggestions originally came from the Promenade Uses Task Force, a group of local business and community leaders that was created to address issues on the Promenade.
“The dialogue started with, ‘How can we not lose our restaurants?’” Rawson said. “That’s morphed into a variety of issues that we need to be looking at to preserve the vitality of the Promenade and downtown.”
“The dialogue started with, ‘How can we not lose our restaurants?’” — — KATHLEEN RAWSON Executive director, Bayside District Corp
Originally published in the Santa Monica Daily Press print edition on September 11, 2003. Read the original PDF.