Local Business Owners Fear New Downtown Parking Fees Will Drive Customers Away

SANTA MONICA — Just days after the latest parking rate changes took effect in downtown Santa Monica, many small business owners are voicing deep concern that the new fees — including $1 for the first 90 minutes and a $20 daily maximum in most structures — could further harm foot traffic and hurt already struggling retailers, restaurants, and wellness businesses.

The revised rates, which went into effect on April 13, 2026, followed months of debate and community pushback. City officials originally slashed the free parking period from 90 minutes to 30 minutes in January as part of a broader simplification effort. After protests from merchants, particularly fitness studios and gyms reliant on short customer visits, the City Council compromised: drivers now pay a flat $1 for up to 90 minutes, with rates rising incrementally after three hours and capping at $20 per day (slightly lower in Structure 9).

While the city describes the changes as a way to simplify pricing, encourage longer stays, and generate revenue for public services, many local operators see it differently.

“It used to be truly free for a quick errand or a class drop-in,” said Maria Lopez, owner of a yoga studio on 4th Street that depends on members popping in for 45- to 75-minute sessions. “Now there’s a $1 charge right away, and if someone stays a bit longer or comes back later in the day, it adds up fast. We’re already seeing hesitation from regulars who used to park without thinking twice.”

Several merchants echoed her worries. Downtown Santa Monica has faced challenges with vacant storefronts and recovering post-pandemic foot traffic. Business owners argue that even modest fees create a psychological barrier for casual visitors, shoppers, and tourists who might otherwise browse, dine, or attend events on the Promenade or nearby streets.

“People come downtown to make a day of it — shop, eat, maybe catch a movie,” said restaurant owner David Chen, whose establishment relies on lunch and dinner crowds. “But when they see parking could hit $20 for the full day, especially on weekends when rates can climb higher, they might just head to easier, cheaper options in neighboring areas. We can’t afford to lose any more impulse visits.”

The city has introduced pilot validation programs allowing businesses — especially fitness and wellness operators — to purchase discounted 90-minute validations. However, some owners say the process is cumbersome and the discounts don’t fully offset the new costs or reach every type of merchant, such as retail shops or small cafes.

City leaders maintain that most visitors parking for two to five hours will actually pay less than under the old complicated nine-tier system, and that the changes are needed to fund essential services amid budget pressures. They also point to reduced monthly permit rates as a help for employees.

Yet for many on the ground, the perception of added cost outweighs the city’s assurances.

“We’re competing with online shopping and other destinations that feel more welcoming,” said one boutique owner who asked not to be named. “Anything that makes coming downtown feel more expensive — even if it’s just a dollar to start — risks pushing people away at a time when we need every customer we can get.”

As the new rates settle in, downtown business groups say they will continue monitoring the impact and may push for further adjustments or expanded validation options. In the meantime, many merchants are bracing for what they fear could be another blow to local commerce.

City officials encourage visitors to check the PayByPhone app or signage for exact rates, which vary slightly by structure and day of the week.

This story reflects concerns raised by multiple downtown business owners in the days following the April 13 implementation. The situation remains fluid, and outcomes will depend on how visitors respond in the coming weeks and months.