San Diego Restaurant 'Spaces As Places' Grant Funding Available

SAN DIEGO, CA—There is a new boon for restaurants that wish to continue their outdoor dining and services. Applications are now available for up to $20,000 in grant funding to allow them to legally continue outdoor operations within the public right of way, the city announced Wednesday.

These businesses must have previously received a Temporary Outdoor Business Operations permit and have applied for a new Spaces as Places permit — a January 2022 initiative that allows local eating and drinking establishments to exclusively use outdoor spaces in the public right of way, including sidewalks and parking spaces.

"We know that San Diegans enjoy the outdoor experience that many local business offer, and we want to assist dining and drinking establishments who made these changes during the COVID-19 pandemic to continue operating outdoors," said Christina Bibler, director of the city's Economic Development Department. "It's our hope that people will cooperate with the new Spaces as Places requirements and use this program to their benefit."

Around $300,000 in outdoor business grant funding is available through the current fiscal year, until June 30, 2023. That funding comes from Senate Bill 1186 fees, collected through the sale of business licenses and renewals and the Small Business Enhancement Program.

Awarded in phases, the grant is intended to help cover permitting, design and construction expenses for businesses operating in the public right of way.

Businesses located within the San Diego Promise Zone boundaries — a territory that includes East Village, Barrio Logan, Southcrest, Lincoln Park and Encanto — along with "those in low- and moderate-income areas or owned by low- and moderate-income individuals," are eligible for up to $20,000 in reimbursement. Businesses outside those locations and requirements may apply for up to a $15,000 grant.

The Spaces as Places initiative follows the Temporary Outdoor Business Operations program to support businesses with limited space to safely implement COVID-19 restrictions. The TOBO program expired on July 13, 2022.

According to a city statement, after covering program implementation costs, "at least 50% of the funding collected through Spaces as Places fees will be dedicated to public right-of-way, bicycle and pedestrian improvements in traditionally underserved communities."

More information about the grant, the award process and requirements can be found at sandiego.gov/economic-development/business/tobogrant.

City News Service, Patch Editor Ashley Ludwig contributed to this report.