Santa Barbara Board to Review Housing Project Planned at La Cumbre Plaza

One of Santa Barbara's last department stores would be demolished to make way for 680 new homes under a proposal going before the city's Architectural Board of Review on Monday — a project that could reshape the western end of State Street and test the city's design-review process under state housing law.

The board is scheduled to consider design approval for the housing development at 3805 State St. and 110 S. Hope Ave., the site of the Macy's building and its surrounding parking lots at La Cumbre Plaza. As Noozhawk first reported, the meeting begins at 3 p.m. at 630 Garden St., with public comments accepted in person, on Zoom, or by email to the ABR secretary before 9 a.m. Monday.

What the Project Would Build

The Macy's building — along with associated telecommunications facilities and surface parking — would be torn down to make room for six separate buildings ranging from two to six stories, with two levels of subterranean residential parking and two ground-level commercial garages, according to the city staff report.

The 680 units would break down as 94 studios, 383 one-bedroom apartments, 186 two-bedroom units, and 17 three-bedroom units. Of those, 39 are proposed for very-low-income households and 15 for moderate-income households.

The project, listed under applicant Gelare Macon, Flowers & Associates with property owner Matthew Taylor of MCP Santa Barbara LLC, also includes more than 27,000 square feet of commercial space, more than 42,000 square feet of resident amenity space, 817 residential parking spaces, and 107 commercial parking spaces. Plans call for 715 long-term residential bicycle parking spaces, roughly 26,000 square feet of shared open yard area, and about 60,916 square feet of open space and plazas.

Why the City's Hands Are Largely Tied

Because the project includes below-market-rate units, it qualifies under California's State Density Bonus Law, allowing more units than zoning would ordinarily permit on the site. And because it's a housing development, the city is limited to five public hearings and cannot deny the project based on size or density alone. Under state law, officials essentially cannot reject the proposal unless they can demonstrate serious health and safety consequences.

That legal framework sharply constrains what the Architectural Board of Review — a body known historically for exacting scrutiny of Santa Barbara's signature Spanish-Mediterranean aesthetic — can actually do. The board's leverage lies primarily in design details: massing, materials, landscaping, and how the buildings meet the street.

If the board grants approval, the applicant could then move forward with building permits.

The End of an Era for La Cumbre Plaza

The Macy's building dates to 1967, and in January 2025 the city determined it holds no historical significance and can be demolished. Its removal would mark the end of one of the few remaining traditional department stores in Santa Barbara — a milestone for a retail corridor that has contracted steadily over the past two decades.

The redevelopment is one of two major housing projects planned at La Cumbre Plaza. A separate proposal would bring 443 rental units to the former Sears building at 3845 State St. The Architectural Board of Review reviewed that project about a year ago and was highly critical of the design, according to Noozhawk; the development team said it would incorporate the board's feedback and return later.

Combined, the two projects would add more than 1,100 housing units to a site long defined by asphalt and big-box retail — a transformation in keeping with Santa Barbara's broader effort to funnel new housing into existing commercial corridors rather than undeveloped land.

What's at Stake for Residents

For neighbors in the surrounding neighborhoods — where concerns about traffic, parking, and building height tend to dominate — Monday's meeting is the most direct opportunity to shape the project's design before permit applications begin. It remains to be seen whether the Macy's redevelopment will draw the same criticism the Sears project faced.

For renters and housing advocates, the project represents a meaningful, if modest, addition to the city's constrained housing supply, with 54 units set aside for lower- and moderate-income households. The unit mix, heavily weighted toward studios and one-bedrooms, reflects a market-rate orientation, though the 17 three-bedroom units would offer some family-sized options.

The scale — 680 units on a single shopping-center site — would make it one of the largest housing developments in Santa Barbara's recent history. State Street's western stretch, struggling with retail vacancies like much of the corridor, would gain hundreds of new residents within walking distance of existing businesses and transit.

What Comes Next

Monday's Architectural Board of Review hearing is a design-approval step, not the final word on the project. If approved, the applicant can proceed to building permits. Further hearings on the project are limited to a total of five under state law.

Design renderings are available through the city. Residents who wish to comment can attend in person at 630 Garden St., join via Zoom, or email [email protected] by 9 a.m. Monday.

The fate of the sister project at the former Sears building — paused after last year's chilly reception — will also be watched closely, as both developments together will determine whether La Cumbre Plaza becomes a template for reimagining Santa Barbara's aging retail centers as mixed-use neighborhoods.