The city of Santa Barbara is set to buy the Casa de la Raza, in a surprising turnaround for the beleaguered building.
The Santa Barbara City Council is set to approve the sale on Tuesday, said City Administrator Kelly McAdoo.
The city of Santa Barbara has been in talks to acquire the beloved La Casa de la Raza, in a complex land-use deal involving the state of California. State Senate Pro Tempore Monique Limón secured $6.1 million in the California budget to acquire the property at 601 E. Montecito St.
Casa de la Raza is under the ownership of the U.S. Bankruptcy Court, Central District of California, An undisclosed nonprofit organization was in escrow to buy the property—until the city of Santa Barbara stepped in.
“The original escrow has been canceled,” said Meghann A. Triplett, an attorney with Margulies Faith, told the News-Press on Friday. “Subject to approval by the City Council and the Bankruptcy Court, the Trustee has agreed to sell the property to the City of Santa Barbara without an overbid process. The purchase price is expected to pay all claims in the Bankruptcy Case in full, and the Debtor supports the proposed sale without overbidding.”
Although a hearing date has not yet been set, Triplett said the hearing to approve the sale is expected in mid-December.
Since the late 1960s Casa de la Raza has served as a community destination for a variety of events and resources. It has provided immigration services, English-language classes, youth activities and dance classes, employment opportunities, and a place for kids to hang out after school and get homework help. It’s been a venue for quinceaneras, birthday parties, dances, art shows and live musical performances.
But in recent years the center has fallen on hard times.
Before the bankruptcy, La Casa de la Raza Inc. was heavily in debt and mired in allegations of apparent mismanagement. The nonprofit had not filed taxes in three years, the News-Press previously reported. It owed $332,000 to the Internal Revenue Service for payroll taxes dating back to 2013 and $43,547 to the state Employment Development Department, U.S. Bankruptcy Court filings alleged.
