The Funk Zone is a hip area that used to be an industrial zone, near lower State Street, where you can sit on a patio surrounded by ivy-covered walls on a lazy weekend afternoon. The atmosphere is fantastic and there are tons of young well-dressed people soaking it up.

Helena Ave Bakery is a great spot, which is hard to find until you see the sign outside that says "Food To-Go." Here you can delight in the most amazing berry galette and a cup of tea or coffee! They have a small outdoor patio that is sweet with lots of vines and plants. Come early to avoid long lines. 
My favorite place in the Funk Zone is Dart Coffee. The decor is exquisite, with lanterns galore and flowers hanging upside down from the ceiling. The egg and chorizo burrito is the best I've had, and their chocolate croissant and hibiscus iced tea are also excellent. There are four places to sit: inside, outside on the attached patio, outside in the area with umbrellas next to the attached patio, or across the street in the garden. It has an art market on weekends. The garden is enchanting, and definitely worth spending some time relaxing in.
There are also plenty of breweries, wine rooms, and cafes with lovely patios! This place has all you need for a fun outing. Validation Ale is a great place for a burger and beer- they sometimes have a free comedy hour that is entertaining. Lucky Penny is a pizza place with a cute outdoor patio.
It's wonderful to walk along E. Yanonali and take in the art on the walls, the sunny patios, and the ivy everywhere. I love the murals, especially the spoon one on Santa Barbara Street. This area reminds me so much of one of my favorite areas in Miami called Wynwood Walls. The funk zone should start the highly artistic graffiti on the walls here too!
From the Funk Zone you can walk across State Street to the Moreton Bay fig tree or the MOXI, a discovery museum for kids. Or you can walk south on State Street to Stearns Wharf, which always has glorious views. You can also walk to the area of a zillion palm trees on the water, which has the skate park, the bike path along East Beach and the Doubletree Walk.
Another modern spot with good food is the Santa Barbara Public Market, near upper State Street.

Directions

The Funk Zone is located on E. Yanonali Street, where it branches off from lower State Street, near Stearns Wharf and across from MOXI.
You can park in the Amtrak train station parking lot, at 125 State Street, Santa Barbara CA 93101. The first 75 minutes are free, and then it costs $1.50 an hour.
Helena Ave Bakery, 131 Anacapa Street, Santa Barbara. Open daily 7-2:30.
Dart Coffee, 121 E Yanonali St, Santa Barbara. Open daily 7-4.

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