City Council Backs Down on 14-Story "Unleashed" Mental Health Housing Project; Residents' Objections Cited as Decisive Factor in Stunning Reversal

April 1, 2026--SANTA MONICA - In a move that stunned developers and housing advocates alike, the Santa Monica City Council voted unanimously late Tuesday night to abandon plans for a proposed 14-story mixed-use building at the corner of Euclid and Wilshire that would have replaced the beloved pet store Unleashed with 120 market-rate apartments and 40 units of supportive housing for the mentally ill.

The project, which had been fast-tracked as part of the city's push to address both the housing shortage and mental health crisis, is now officially dead."

We heard you," Councilmember Lana Negrete told a packed chamber of cheering residents. "Santa Monica values compassion, but we also value not tearing down the one place where half the neighborhood gets its emotional support kibble."

The reversal came after weeks of heated public comment, online petitions, and at least one midnight protest involving 47 golden retrievers wearing tiny "Save Unleashed" bandanas. Residents argued that while supportive housing is important, sacrificing a community institution like Unleashed - known for its organic dog treats, weekly adoption events, and the world's most patient staff - was simply a bridge too far."

This isn't just about pets," said longtime resident and dog dad Marty "Pawprint" Goldstein of nearby 11th Street. "Unleashed is therapy. My anxiety meds come with a side of squeaky toys and free advice from the parrot in the front window. You replace that with a 14-story building full of people who might also need therapy and suddenly nobody's walking anybody. It's a catastrophe of biblical, leash-related proportions."

Another objector, cat owner and mental-health peer counselor Deborah Whiskers, put it more bluntly: "We support housing the mentally ill. We just don't support housing them on top of the only store that sells the salmon-flavored dental chews my cat will actually eat. That's not compassion - that's cruelty to felines."

City staff confirmed that alternative sites for the project are now being considered, possibly on city-owned parking lots or "somewhere nobody actually likes." Unleashed owner Rick Martinez, who had been bracing for eminent domain proceedings, said he was "over the moon - or at least over the first floor."

"We're staying right here," Martinez told the Observer. "The cats, the dogs, the guinea pigs - they all get to keep their home. And honestly, after the last three weeks, even the tarantula in the reptile section looks relieved.

"Councilmembers stressed that the vote does not reflect any diminished commitment to mental health services or new housing. "We're just keeping the pet store," said one anonymous member. "Because if we lose Unleashed, the entire city might actually lose its mind."

Developers for the project could not be reached for comment, though one was reportedly last seen wandering Wilshire Boulevard muttering something about "going to the dogs."

In a final statement, the City Council reminded residents that April 1 is a day for jokes - but keeping Unleashed open, they insisted, is no laughing matter.The pet store will remain open for business as usual, with extended hours this weekend for "We Survived City Hall" treats and free belly rubs for all.