The City Council has approved a comprehensive package of zoning amendments designed to streamline permitting for businesses and try to encourage new investment.
The ordinance downgrades permit requirements for many business types, streamlines alcohol regulations and permanently adopts temporary economic recovery rules that officials say have successfully attracted new enterprises to the downtown area.
"Santa Monica is open for business, period," Mayor Caroline Torosis said. "We are trying to remove every single artificial barrier that we can."
The legislation represents the latest phase in what city planners described as an ongoing effort to revitalize commercial districts. It pairs with separate fee-reduction measures the council considered the same evening.
Under the new rules, many businesses that previously required a Conditional Use Permit — a process costing around $10,000 and taking three to five months — will now need only a Minor Use Permit, which costs about $8,000 and takes roughly two months. Some uses will be permitted outright without any discretionary review.
The changes affect restaurants, retail stores, fitness studios, offices and entertainment venues across the city's commercial zones.
Alcohol regulations saw particularly significant changes. The council voted to allow pub crawl events, which had been restricted, and created a new "tap room" category for establishments serving only beer and wine. Bars will now require only a Minor Use Permit rather than a full Conditional Use Permit in districts where they are allowed.
The city also expanded its alcohol exemption program, which allows qualifying businesses to obtain approval for alcohol service in days rather than months. Officials said more than 100 permits have been issued through the streamlined program since it launched downtown.
"We've seen businesses come through the permitting process that have benefited from these changes, and the feedback and results are telling us that our streamlined strategies in the downtown are working," said Steve Mizokami, principal planner for the city.
The council also approved a provision allowing existing bars on Main Street that have been closed more than 12 months to reopen, preventing the permanent loss of those establishments under nonconforming use rules.
The threshold for opening a grocery store without a Conditional Use Permit increased from 15,000 to 30,000 square feet, addressing what staff called a barrier to filling large vacant retail spaces.
The ordinance also corrected an error affecting Santa Monica Jewelry and Loan, the city's only remaining pawn shop. A 2017 clerical error in the Downtown Community Plan inadvertently stripped the business of its right to relocate within downtown.
Michael Klass, who owns the shop with his brother, told the council the family business serves thousands of residents who rely on regulated, non-recourse loans.
"Approving this amendment does not create risk. It prevents unintended harm," Klass said. "It restores the city's long-standing policy."
Planning Commission Chair Joshua Hamilton wrote to the council supporting the fix, noting the commission voted unanimously in favor.
The Santa Monica Chamber of Commerce endorsed the overall package, praising the council and staff for "commonsense solutions to removing barriers to business activity."
Councilmember Dan Hall acknowledged he had opposed the pawn shop provision previously but changed his position after learning more about the circumstances.
"I'm willing to admit when I'm wrong," Hall said.
Councilmember Ellis Raskin successfully pushed to downgrade bar permits from Conditional Use Permits to Minor Use Permits, going further than the Planning Commission had recommended.
The ordinance requires a second reading before taking effect. Staff indicated additional streamlining measures would return to the council in coming months, including a review of restrictions in the office campus district.
Councilmember Jesse Zwick praised the Community Development Department for leading what he called a culture change in city government.
"We are really leading the way and becoming a city that's open for business," Zwick said.