Business shutdowns during the global COVID-19 pandemic devastated our local economy, including State Street, at the heart of Santa Barbara’s downtown core.
While the pandemic had significant impact, the downtown economy had already been deteriorating for some time due to dwindling visitors, high vacancies and cumbersome permitting processes that slowed business growth to a crawl.
Now, because of swift and innovative changes, including closing the street to vehicles, allowing for a “promenade,” the business economy shows signs of life and plenty of optimism for future growth.
The Santa Barbara South Coast Chamber of Commerce, which represents a large number of downtown businesses, has a pulse on community sentiment, works closely with the local tourism agency and hospitality-related business, and is holding fast to a vision for State Street that puts the economic vitality of the business community at the heart of all downtown solutions.
The State Street Master Plan process is our community’s best opportunity for a collaborative effort to bring about change and a brighter future.
We are pushing for a long-term plan that emphasizes business success and creating a sense of place. We are also calling for much more robust use of economic data, research and statistics to make decisions about how we design the new downtown infrastructure.
Our vision emphasizes six categories of commercial interest:
- Experiential
- Food and beverage
- Personal services
- Vertically integrated retail
- High-tech office and trade
- Hospitality
- Housing
By prioritizing these categories, we can create a balanced and sustainable mix of businesses that meet the needs of locals and visitors alike.
To further enhance the character and identity of downtown State Street, we propose identifying five distinct districts within the area:
- Theater
- Cultural
- Nightlife
- Retail
- The Funk Zone
By developing each district’s unique offerings, we can create a diverse and exciting mix of activities and experiences for people of all ages and interests.
Finally, we believe that downtown State Street should be a hub of activity and engagement, with a wide variety of activations and events throughout the year.
Some examples of these activations include outdoor cooking classes, live music performances, outdoor workout experiences, and holiday or culturally relevant activities.
By creating a dynamic and engaging environment, we can attract new visitors and keep locals connected with downtown.
While there are challenges ahead, and current conditions are not ideal, downtown State Street is still thriving in many ways.
Our downtown continues to be the vibrant and diverse heart of Santa Barbara’s economy and cultural identity.
It is a hub of businesses that support employment opportunities and generate tax revenue. It attracts visitors and locals to the area for its diverse offerings in retail, attractions, hospitality and services.
State Street remains a source of cultural and historical significance, with its iconic landmarks and districts continuing to serve as community gathering places.
Despite “doom loop” narratives, State Street’s core conditions are better than they were post-pandemic, and we are on the path to greater success.
As we continue this renaissance, we see downtown State Street’s transformation as a symbol of resilience, and a place where local businesses can continue to grow and thrive with the support of the community.
Our vision is that each of the downtowns on Santa Barbara County’s South Coast emerge as diverse and thriving hubs of economic and cultural activity that reflect the needs and interests of each community.
Through the ongoing efforts of the proposed Community Business Improvement District, State Street Advisory Committee and master planning process, we are committed to making this vision a reality for generations to come in Santa Barbara.
We can all work together to ensure that downtown continues to be cherished as an iconic part of our city, and a symbol of resilience and growth in the face of challenges.

