A recent court ruling undercut developers who hope to construct a controversial eight-story housing project adjacent to Santa Barbara’s Old Mission.
But the proposal for 270 residential units is still alive, and a bigger fight remains as the project heads toward a new phase of scrutiny over potential impacts to air quality, noise, traffic, aesthetics, wildlife, and cultural and historical resources.
Superior Court Judge Thomas Anderle last week ruled a series of complaints against the city of Santa Barbara by the builders doing business as The Mission LLC were moot or “unripe.” At the core of the lawsuit were allegations city planners improperly handled project applications.
Looking ahead, neighborhood groups this week stood ready to amplify their concerns.
“The biggest concern is public health and safety,” said land use attorney Marc Chytilo, who represents Smart Action for Growth & Equity (SAGE), a nonprofit focused on housing policy that includes residents of Mission Canyon, the Upper Eastside and Lower Riviera.
Among other considerations, neighbors will continue to question whether the project is appropriate for what’s considered to be a key wildfire and emergency evacuation corridor, Chytilo said.
Builder’s Remedy: a moving target
The project slated for 505 E. Los Olivos St. would reach a height of 112 feet —82 feet higher than 30-foot city zoning limits at the property, the former site of Mount Cavalry Monastery near Rocky Nook Park. It would include more than 50 units earmarked for affordability.

An original preliminary project application dates to May 2023. At the time, the state-mandated Housing Element component of the city’s General Plan was not yet certified. This made the housing proposal a Builder’s Remedy project, which meant it could bypass key local zoning and general plan standards.
But in October, Gov. Gavin Newsom signed SB 158, a bill that essentially disqualified the high-density Los Olivos Street proposal from Builder’s Remedy environmental review exemptions.
Championed by California Senate President Pro Tem Monique Limón, who represents Santa Barbara, SB 158 targeted affected projects in cities with populations between 85,000 and 95,000 (like Santa Barbara) in counties with populations between 445,000 and 455,000 (like Santa Barbara County).
In a case still pending, The Mission LLC has sued the city and state in federal court over SB 158.
The recent ruling
In the local lawsuit decided last week, The Mission LLC alleged city planning officials improperly deemed a series of project applications the company submitted incomplete. In one of the more serious allegations, the company said the city attempted to intentionally delay the project and deliberately increase costs.
According to court papers, the conflict spiked in May after the city rejected—for the fourth time—an application submitted by the developers.
“While my client has been willing to address the many improper, and in several cases illegal, requirements imposed by the city to date, this fourth letter is apparently entirely in bad faith and designed to harass,” attorney Richard Jacobs, who represents Mission LLC, wrote to city officials at the time.
Nearly two months later, following a fifth round of revisions, the city determined the developer’s application was acceptable.
That acceptance, Judge Anderle ruled Wednesday, rendered the developers’ claim against the city moot.
The judge also declined to weigh in on project fees and other requirements disputed by The Mission LLC, ruling the developers had raised some of their key grievances too soon in the project review process.
City taking public comment
City planners have begun to review the accepted application. In August, they issued a letter that described the project as inconsistent with four dozen municipal standards and policies.
Reached by phone on Monday, Jacobs, the developers’ attorney, would not discuss the ruling.
“My clients informed me to tell you, ‘No comment,’” he said.
In addition, the City Attorney’s Office did not respond to requests for comment.
The city is accepting public comment on the project through June 9.
