Santa Barbara City Council Votes Pave Way for Paseo Nuevo Redevelopment Negotiations
Tracy Lehr
SANTA BARBARA, Calif. – The Santa Barbara City Council received an update on the Paseo Nuevo redevelopment project Tuesday.
The proposal would add housing to the shopping area.
After a lengthy discussion and public comments council members voted unanimously in favor of staff recommendations to amend the project description in the agreement between the city and Paseo Propco LLC.
The council also voted in favor of a resolution declaring a city-owned parcel exempt surplus land allowing negotiations to create affordable housing.
The land is currently parking lot 2.
“We are excited that the council authorized us to move forward in the negotiation on this really transformative project for downtown Santa Barbara,” said City Administrator Kelly McAdoo, “We are excited for the initial concept, there’s obviously a lot of details to be worked out.”
The parties involved include investment firm Alliance Bernstein (AB) that own the mall’s ground leases.
Rather than demolish the current Paseo Nuevo, this plan includes more than 230 apartments in a 7-story building between State and Ortega and Chapala.
Council members shared concerns about the height before the vote.
It would also include 80 affordable apartments on the parking lot near Chapala Street and Canon Perdido.
Mayor Randy Rowse called that a miracle and said AB has the money to make it happen.
“The rising tide will lift all boats and that is exactly what will happen for all those businesses surrounding the downtown,” said Rowse. “So, we are excited about we are excited about the revitalization of State Street.”
Residents and visitors would also be able to shop at a new grocery store and fitness center in the plan.
The city is also considering tax related incentives.
The old Nordstrom, now owned by Shopoff, is not part of this project, but councilmembers would like AB to engage with the Shoppoff since the large building is a part of Paseo Nuevo.
“The momentum this project could offer downtown is really significant,” said Downtown Santa Barbara Executive Director Robin Elander.
Tours and public hearings will follow before any final votes are made.
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