SANTA ANA – As Latinos have for generations in Santa Ana, Café Calacas’ Frank Farias brought out a plate of pan de muerto, or bread of the dead – Mexican sweet rolls traditionally baked in the weeks leading up to Dia de los Muertos.

A few City Council members and officials relaxing in the outdoor seating area on Thursday morning partook in the pastries, paired with cafe de olla, a sweet, cinnamon-infused coffee. The cafe on Fourth Street is in the lobby of the former West End Theater, which opened in 1915 and often screened silent films with live piano music providing background ambiance.

Farias, 29, and his business partner revamped the mom-and-pop shop that sold sugar skulls into a contemporary Mexican cafeteria offering traditional dishes with a modern twist.

“It’s about bringing back memories of people who enjoy the traditional Mexican places,” said Farias, who co-owns the cafe.

That mix of preserving a rich Latino history while integrating new ideas and the next generation is what earned downtown Santa Ana the prestigious designation of one of five “Great Neighborhoods” – and the only one in the western U.S. – by the American Planning Association.

The planning organization announced the recipients earlier this month and its board members presented the award on Thursday evening at the Spurgeon Promenade before several hundred community members.

Since 2007 when it launched the Great Places in America program, the association has recognized five neighborhoods, five streets and five public spaces each year that demonstrate exceptional infrastructure, amenities, cultural identity and innovative and sustainable practices.

Kurt Christiansen, a member of the association’s national board, on Thursday complimented the city’s plazas, the many outdoor eating places and the walkability of the downtown.

“A lot of downtowns close at 5 and there isn’t any nightlife,” he said, as a band played and people enjoyed food from nearby restaurants. “They’ve done a wonderful job with the streetscape.”

Councilwoman Michele Martinez, whose ward includes downtown, said the area began transforming into an inclusive place about four years ago, when affordable housing entered the adjacent Lacy neighborhood and a sunshine ordinance was established.

“At the end of the day, it’s because we finally decentralized government and gave the power to the people,” she said. “We all know when we have the magic of relationships – it’s what makes a place.”

Sales tax revenue annually in the downtown area from general retail, food products and professional services has been on the rise, from $761,864 in 2010 to $1.1 million in 2015, according to the city’s economic development specialist, Marc Morley.

“The biggest thing that is happening is property values are skyrocketing. The density makes us attractive – people can walk everywhere,” City Manager David Cavazos said.

But some residents disagree that the change has been for the better.

About a dozen activists with Chicanos Unidos, an Orange County social justice organization focusing on Santa Ana, crashed the city’s celebration, chanting, “Don’t support gentrification!” and “False narrative!” as city officials delivered their speeches.

At least 30, mostly Latino businesses have been displaced from the downtown in the past six years, Chicanos Unidos organizer Gaby Hernandez said.

“The association that gave it to them claims that they were able to develop this community with the inclusion of the community, which has not been the case,” she said.

The protest baffled city leaders and business owners including Ryan Chase, 33, a longtime downtown property owner who rebranded the area where the celebration was held from Fiesta Marketplace to East End and created the foodie destination 4th Street Market.

“We got voted the best downtown in the country,” Chase said. “Somehow it’s a bad thing. I don’t get it.”

Contact the writer: 714-796-7762 or jkwong@ocregister.com or on Twitter: @JessicaGKwong