The Santa Monica City Council will take final action Tuesday on establishing a digital display district along the Third Street Promenade, a move that could generate up to $7 million annually while transforming the visual landscape of the city's downtown corridor.
The council is scheduled to adopt five ordinances at its Jan. 13 meeting, including the Digital Display District Ordinance and four development agreements for digital displays at specific locations. The items require only a second reading after being approved 6-0 on Dec. 16, 2025.
If adopted, the ordinances will take effect 30 days later, allowing installation of up to 16 large-format digital displays at corner buildings on the Promenade and at Santa Monica Place. The initial development agreements cover seven displays at four locations: Santa Monica Place, 1310 Third Street Promenade, 1202 Third Street Promenade, and 301 Arizona Avenue.
Supporters view it as essential for economic revitalization and critics warn of potential negative impacts on the area's character and historic resources.
According to an economic study prepared for the city, the digital displays could generate between $3.5 million and $7 million annually if all 16 allowed displays are eventually installed. Each display operator must pay the city a one-time contribution of $500,000 plus ongoing annual payments of either 20% of gross revenues or a minimum annual guarantee of $500,000, whichever is greater. The minimum guarantee escalates 3% annually.
The first $5 million in revenue will go to the city's realignment plan. Above that threshold, approximately 10% would go toward repaying borrowing against the city's Housing Trust Fund, 85% toward downtown revitalization efforts including tenant improvements and public infrastructure, and up to 5% for a new moving image media art program.
The ordinance establishes strict operational standards for the displays, each limited to 1,000 square feet. Operating hours are restricted to 6 a.m. or 7 a.m. until 2 a.m., depending on the season. Brightness levels are capped at 6,000 candelas per meter squared during daytime, decreasing to 200 candelas after 10 p.m. Audio is prohibited except for city programming events. Each display must allocate 20% of its operating time to city content and public art programming.
The Santa Monica City Council meets Tuesday, Jan. 13 at 5:30 p.m. in City Hall.