Recent City Council decision opens door to more downtown businesses

Recent City Council decision opens door to more downtown businesses

Published on June 29, 2026

The El Camino Real/Downtown Specific Plan was recently amended to allow for more uses along Santa Cruz Avenue. At the June 23 City Council meeting, changes to the Specific Plan were approved to support vibrancy in the downtown.

Previously, personal and wellness services and personal improvement services were limited to portions of side streets, select areas of Menlo and Oak Grove avenues and upper floors along Santa Cruz Avenue. Office uses were also generally restricted to upper-floor spaces or locations other than Santa Cruz Avenue.

With the recent changes, personal services and personal improvement and wellness uses are now permitted along the ground floor of Santa Cruz Avenue, in addition to the other previously allowed areas of downtown. Council also added an allowance of small-scale recreation along the ground floor of Santa Cruz Avenue. These additional uses on Santa Cruz Avenue will allow for new businesses like spa services, salons, yoga and Pilates studios, amusement arcades and dance studios. By expanding the range of active, customer-serving businesses, the amendments are intended to complement the existing mix of retail and restaurants and enhance downtown activity.

Office uses will also be allowed on the rear half of the ground floor in addition to the upper floors of Santa Cruz Avenue. This flexibility enables larger commercial spaces to accommodate office tenants in rear portions of a building while maintaining active retail or service-oriented uses along the street frontage.

Additional changes include business services such as banks and financial institutions as a conditional use on Santa Cruz Avenue, with a limit on square footage allowed.

Learn more about the Downtown Specific Plan amendment.

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