original post: https://therealdeal.com/la/2021/08/09/santa-monicas-third-street-promenade-could-open-up-to-housing-hotels/

Rezoning and investment plan meant to energize retail stretch where 40% of storefronts are empty

Renderings of Third and Arizona Town Square after the proposed Third Street Promenade Stabilization and Economic Vitality Plan (Downtown Santa Monica)

Santa Monica’s Third Street Promenade could see a comprehensive rezoning and investment program that would open up the historic retail district to housing and hotel and development.

The proposal comes from Downtown Santa Monica Inc., a nonprofit entity that manages the Third Street Promenade, Urbanize reported. Individual landlords along the stretch include Federal Realty Investment Trust and KLM Equities.

The Third Street Promenade is Santa Monica’s main retail district, responsible for 15 percent of the city’s annual sales tax revenue. After Covid took its toll, around 40 percent of its storefronts are now empty.

Part of the proposal called the Third Street Promenade Stabilization and Economic Vitality Plan, would allow restaurants to expand their outdoor dining spaces at street level and allow for more rooftop dining.

The Los Angeles City Council, which does not have jurisdiction in Santa Monica, relaxed its outdoor dining rules earlier this year.

The proposal also suggests transforming the promenade’s intersection with Arizona Avenue into a “town square” that could be closed for large gatherings. That includes the creation of an arts center for live performances and events. DTSM suggests the AMC Theater near the intersection as a potential site for the arts center.

[Urbanize] — Dennis Lynch