SANTA MONICA, CA — Santa Monica says efforts to make opening and operating a business easier are producing results, with faster commercial plan reviews, reduced fees and new financial incentives aimed at reviving the city's struggling economy.
According to a city announcement Tuesday, on-time first-round commercial plan reviews climbed by more than 40 percentage points to 92.5 percent within four months of implementing its Realignment Plan, adopted in October 2025.
Officials have also launched a pilot self-certification program designed to issue permits within five business days, potentially cutting approval times by as much as 80 percent. The city did not disclose how many permits have been issued through the pilot or whether that target has been consistently achieved.
The improvements helped Santa Monica secure a place among seven finalists for the Los Angeles County Economic Development Corporation's Most Business-Friendly City award in the large-city category, marking its second consecutive nomination.
The city has introduced several other measures intended to reduce costs for businesses, including eliminating its portion of the wastewater capacity charge, a change officials say could save a 50-seat restaurant approximately $50,000 in upfront expenses.
Sidewalk dining fees have been reduced by 75 percent per square foot, while parklet fees have been halved. A separate program allows restaurants to offer basic outdoor dining without additional permits or licensing fees.
Santa Monica has also established a $3 million Economic Development Fund to support business recruitment, tenant improvements and commercial revitalization, particularly along the Third Street Promenade. Eligible small brick-and-mortar businesses can apply for one-time $5,000 microgrants.
Meanwhile, the city's Business Concierge program, which helps businesses navigate municipal requirements, responded to more than 800 inquiries during its first year.
The announcement follows the release of a RAND Corporation study documenting the extent of Santa Monica's economic decline compared with neighboring communities.
Researchers found that inflation-adjusted taxable sales fell approximately 33 percent between 2015 and 2025, with clothing and accessory sales plunging 75 percent and food-service sales declining nearly 24 percent.
The study also identified persistently high commercial vacancies and visitor numbers substantially below pre-pandemic levels.
Although the city's latest figures indicate improvements in administrative processes, they do not establish whether those changes have translated into more business openings, fewer vacancies or a broader economic recovery.
The city has also emphasized public safety as part of its economic development strategy, reporting that the Santa Monica Police Department has reached full sworn staffing for the first time in 20 years. A downtown police substation opened on the Third Street Promenade in June.
"A city is business friendly when someone with a good idea can get a permit, open their doors and hire their neighbors without waiting on us," Mayor Caroline Torosis said.
The LAEDC award winners are scheduled to be announced Nov. 4 at the Rose Bowl.
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