Santa Barbara is undergoing critical negotiations regarding the Paseo Nuevo redevelopment plan. Recently, the city decided to exclude a portion of land beneath the Nordstrom building from a proposed agreement.
Changes to the Paseo Nuevo Redevelopment Plan
City Administrator Kelly McAdoo announced that the land transfer related to the Nordstrom building would not proceed for now. This change comes in response to concerns from Shopoff Realty Investments, the owners of Nordstrom.
Negotiations Over Land and Housing Developments
The decision to exclude the Nordstrom land was meant to protect future negotiations. “We preserved the negotiation about the Nordstrom parcel at a later date,” McAdoo stated. Despite this temporary relief, ongoing discussions about housing development in Santa Barbara remain complex.
- The Paseo Nuevo redevelopment initially proposed by AB Commercial included plans for:
- 500 residential units, which was later revised to:
- 233 market-rate units and 80 affordable units.
- Ultimately, the plan was further reduced to include 209 market-rate apartments and 24 affordable apartments.
Financial Aspects of the Deal
The city plans to transfer land and a portion of property tax revenue, valued between $32 million and $39 million, to AB Commercial. This move aims to make the project financially viable for the mall’s redevelopment.
Remaining Issues and Next Steps
Despite the exclusion of the Nordstrom land, negotiations between Shopoff and AB Commercial are ongoing. Both parties must reach an agreement due to existing reciprocal easement agreements. These agreements mandate mutual consent for related housing developments before construction begins.
Key points of the proposed housing project include:
- 60 one-bedroom apartments
- 23 two-bedroom apartments
- 22 micro-units
- 7 studio apartments
- 11 affordable housing units, adhering to city regulations
The situation will reach a crucial moment during the Santa Barbara City Council meeting scheduled for December 2. During this meeting, council members will vote on the land deal, now excluding the Nordstrom site, with expectations of providing more clarity on the agreement outcomes.
