It looks like the end is near for Santa Barbara’s iconic department store, Macy’s.

But it’s a new beginning for Santa Barbara and La Cumbre Plaza.

“I am very proud to be part of what is a transformative project in the city of Santa Barbara,” said developer Matthew Taylor. “This is my backyard. I grew up coming to this plaza.”

A 680-unit housing project at La Cumbre Plaza moved forward Monday night after a 7-hour hearing in front of the city’s Architectural Board of Review and staff hearing officer. The complex project involves the demolition of the Macy’s building and construction of the apartments at the site and in the surrounding parking lot area.

Macy’s lease runs until 2028, and then the developer plans to knock the building down and start construction, expected to be completed by 2032.

Project Planner Gelare Macon said every so often a city is presented with a transformational project for the next generation.

“This is one of those moments,” Macon said.

Developers want to build housing in La Cumbre Plaza. Developers plan to knock down Macy’s and building, and build on parts of the existing parking lot. (Rendering courtesy the Cearnal Collective)

Macon said when the mall was built in the 1960s it represented the future of how Santa Barbara would shop.

“It was a place you drove to,” Macon said. “Today we have the chance to make it a place you come home too. Where there’s asphalt now, there will be front doors.”

The Architectural Board’s vote was 3-1, to essentially say that it could not deny the project because Taylor filed it under the Housing Crisis Act (SB 330), which prevents local governments from denying projects unless they pose a threat to public health and safety.

Most of the ABR members expressed positive comments about the project, except for board member Richard Six.

“It is too massive and not in proportion to the neighborhood,” Six said.

Once built, the project would dramatically change the look and feel of the area. Housing would replace Macy’s, and be built on the surrounding parking lot areas. The in-line mall would remain, including Lure Restaurant.

Many details of the look and design of the project still need to be worked out, but the city cannot deny the project. Members of the public could file an appeal, but the City Council would have no legal right to deny the project either.

A separate 443-unit housing project by a different developer is proposed for the other side of La Cumbre Plaza—on the site of the old Sears building, and parking lot. That project, proposed by Riviera Dairy, is still working its way through the city process. The two developers are not working together after plans for a specific plan for the area unraveled in 2022.

The other side of the plaza, where Panda Express, See’s and Mendocino Farms sit, would remain.

Attorney Brad Lundgren represents the ownership of those buildings. At the meeting, he raised concerns about a loss of parking, according to the plan, as well as a bike lane that could disrupt customers.

“My clients do not oppose the project, however, these conditions need to be addressed,” Lundgren said.

Developers want to build housing in La Cumbre Plaza. (Rendering courtesy the Cearnal Collective)

A few people spoke in opposition to the development.

Jerome Mercer, said he moved to Santa Barbara 54 years ago and started a flower stand on the corner of La Cumbre Road and State Street.

“I don’t really understand this project,” Mercer said. “My whole thing about being in Santa Barbara is the protection of the beauty, of our land.”

He said he doesn’t see the project as something that will enhance Santa Barbara’s “beauty.” He called the area a “world-class site” and a “world-class town.”

“It’s going to block beauty,” he said. “I just don’t see it as something that is Santa Barbara.”

Another speaker, nearby resident Adrienne Schuele, raised concerns about the design.

“We are going to be so impacted with 680 new homes, or apartments in this area,” said nearby resident Adrienne Schuele.

She said if there’s no way to stop the project, the project should “at least be beautiful and look like Santa Barbara.

“This is so hard for us to accept,” she said. “We are going to have to accept it.”

City officials on Monday acknowledged that the project was a radical change for the area, but also said it was a necessary move for the city .

“I really just want to note how excited I am,” said Staff Hearing Officer Tess Harris. “From the standpoint of this many units coming into the city, and it’s pretty remarkable.”

The project’s height would range from two to six stories, with the highest part of the building reaching 78 feet, nine inches. The development would include 939 parking spaces.

An overview of the plans for La Cumbre Plaza. (Image courtesy City of Santa Barbara)

Of the total units, 39 would be set aside for low-income residents and 15 for moderate-income workers. The rest would rent at market-rate.

Harris said she understands that the development marks a difficult change for some residents.

“At the same time, we also need to be able to keep our residents in the city and we need to be able to have space for workers, for families, for individuals who are currently living in the city and want to remain in the city and those who want to continue to be part of our community,” Harris said.


Joshua Molina is editor of the News-Press and an award-winning journalist with more than 25 years of reporting across the South Coast. He is a professor of journalism at Santa Barbara City College and host of local news show SB Talks with Josh Molina.