Santa Monica bets on alcohol, events for revival

TL;DR

Santa Monica Revival: City leaders push events and open alcohol to revive Third Street Promenade amid post-COVID economic woes.
$3 Million Investment: Santa Monica plans $3 million for Promenade, expects $5.4 million surplus by end of 2026-27 if efforts succeed.
Mixed Views: Officials tout crime drops and events, but critics blame homelessness for ongoing retail flight.

The story at a glance

Santa Monica faces empty storefronts and business closures on the Third Street Promenade after declaring fiscal distress last year due to falling tax revenue and large settlement payouts. Leaders including Mayor Caroline Torosis and City Manager Oliver Chi are promoting entertainment zones for open alcohol, major events tied to the World Cup and Super Bowl, and increased policing to draw crowds back. This is being reported now as the city eyes a balanced budget this year and surplus by 2026-27, amid signs of restaurant lease renewals and crime reductions.

Key points

Third Street Promenade got an entertainment zone in May allowing open alcohol between Wilshire Boulevard and Broadway; expanded in March to downtown during events.
City investing $3 million in Promenade revival; 59 restaurants now exempt from sidewalk fees.
Upcoming events include FIFA World Cup watch parties at the pier, a two-day Goldenvoice music festival this fall, and an ESPN Super Bowl 2027 event.
Police fully staffed at 230 officers for first time in 20 years; 12.5% drop in violent and property crimes year-to-date, over 100 arrests weekly in February and March.
Homelessness: 202 people in shelters, 475 unsheltered (2025 data); Santa Monica Coalition provided 41 one-way travel fares.
Seven housing projects advancing; restaurants signing new leases, per City Manager Chi.
Property owner John Alle criticizes lack of enforcement on homelessness, says retailers leaving for L.A.

Details and context

Santa Monica's economy shifted after COVID, with the Promenade suffering empty stores and closures despite its history as a tourist draw with the pier and beach. City leaders say past passive appeal no longer works, so they added a business concierge program, parking fee hikes, more traffic citations, and a beat policing model with a Homeless Liaison Program.

Skeptics like property owner John Alle point to homelessness and weak enforcement driving restaurants and retailers away, noting signs banning alcohol inside stores. Officials report proactive steps like 157% more drug investigations from December to February and 40% more police stops.

The strategy leverages big events like the Olympics and World Cup for foot traffic, alongside policy tweaks to help businesses recover.

Key quotes

Mayor Caroline Torosis: “We know that if we want to invite foot traffic to Third Street Promenade, the consumer trends are different than they were in early 2000s... We have to bring economic recovery back, and we weren’t going to do that doing business as usual. We have to invite people back.”[[1]](https://www.latimes.com/california/story/2026-04-23/santa-monica-has-hit-hard-times-can-alcohol-parties-lure-people-back)

John Alle: “The problem is we’re seeing more restaurants give up on Santa Monica and to go L.A.... Santa Monica is doing all the wrong things.”[[1]](https://www.latimes.com/california/story/2026-04-23/santa-monica-has-hit-hard-times-can-alcohol-parties-lure-people-back)

City Manager Oliver Chi: “We can create events and activity that will draw people into the city.”[[1]](https://www.latimes.com/california/story/2026-04-23/santa-monica-has-hit-hard-times-can-alcohol-parties-lure-people-back)

Why it matters

Santa Monica's push tests whether events and alcohol can reverse tourism-dependent downtowns' post-pandemic declines amid homelessness and crime concerns. Businesses may see more foot traffic and leases if events succeed, while residents face trade-offs on public drinking and policing intensity. Watch if World Cup parties and the music festival boost revenue as projected, or if critics' warnings on enforcement prove correct.

What changed

Fiscal distress declared last year from falling revenue and $229 million sexual abuse settlements; now balanced budget expected this year ahead of schedule, with $5.4 million surplus projected by end of 2026-27. Entertainment zone approved in May for open alcohol on part of Promenade, expanded in March to downtown during events. Police fully staffed at 230 officers for first time in 20 years as of December, with 12.5% crime drop year-to-date.

FAQ

Q: What is the Third Street Promenade entertainment zone?

A: Approved in May, it lets people buy and carry open alcoholic drinks from participating businesses between Wilshire Boulevard and Broadway. Expanded in March to the downtown core during events, and to the pier, Main Street, and Montana Avenue with event-based authority. The goal is to boost foot traffic and help businesses recover.

Q: How has crime changed in Santa Monica?

A: Violent and property crimes dropped 12.5% year-to-date with 230 fully staffed officers for the first time in 20 years. Police made over 100 arrests weekly in February and March, with 40% more stops initiated and 157% increase in proactive drug investigations from December to February.

Q: What events is Santa Monica planning?

A: A FIFA World Cup interactive zone and watch parties at the pier, two-day music festival with Goldenvoice this fall, and ESPN event for the 2027 Super Bowl. These aim to draw crowds to the Promenade and downtown.

Q: What do critics say about the revival plan?

A: Property owner John Alle says the city does the wrong things by not improving homelessness enforcement, leading restaurants to leave for L.A. He notes no real improvement and retailers banning alcohol inside due to issues.