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Stay Informed

If you wish to be listed as an interested party and receive hearing notices for the 3805 State Street project, email CDAdmin@SantaBarbaraCA.gov with the following information:

  • Your Name
  • Email Address
  • Mailing Address
  • Reference PLN2024-00227

Contact Information

Patsy Price
Contract Planner
PPrice@SantaBarbaraCA.gov

Title

The Neighborhood at State & Hope

Body

The 8.7-acre Macy’s Site (3805 State Street) is located on the north end of La Cumbre Plaza.

The proposed project, named “The Neighborhood at State & Hope,” includes demolition of the Macy’s building and associated parking and construction of a 680-unit mixed-use housing project under the Average Unit-Size Density (AUD) Incentive Program and State Density Bonus law.  It includes moderate- and very low-income rental units, market rate rental units, and a variety of retail, dining, commercial and public spaces. The project also includes a proposed Tentative Map to divide the 14.9-acre legal lot into two parcels, creating an 8.79-acre site for the new development while the existing development (a portion of the shopping center) would remain on the other parcel.

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Project Status

The property owner submitted a Preliminary Application for the project in December 2022. From December 2022 to April 2024, City staff, the Architectural Board of Review, and the Planning Commission reviewed the Preliminary Application.  The intent of this preliminary review was to help the applicant identify potential development issues that need to be addressed as part of the formal Planning Application process.

The owner submitted a formal Planning Application for the project on June 6, 2024.  Staff completed three reviews of the application in July and September 2024 and February 2025.  The City deemed the Planning Application complete on February 13, 2025. 

On June 30, 2025, California Assembly Bill (AB) 130 was signed by Governor Gavin Newsom and became effective immediately.  AB 130 makes significant changes to California’s housing and environmental laws, for projects that meet specific criteria, AB 130 provides a statutory CEQA exemption. The legislation is designed to promote housing construction in existing urban areas on previously developed or substantially urbanized land. The City is evaluating the proposed project to determine whether it qualifies for the AB 130 CEQA exemption.

Following environmental review, if required, the Staff Hearing Officer (SHO) will consider approval of the Tentative Map.  Following SHO review, the Architectural Board of Review will review the project for Project Design Approval and Final Approval. Then the applicant may apply for building permits.

On August 20, 2024, City Council voted unanimously to direct staff to engage with the property owner to negotiate a term sheet for a potential development agreement.  A development agreement could allow the City to secure a commitment for more affordable housing than is currently proposed and other public benefits in exchange for providing agreed upon concessions or incentives to the property owner.  City staff and the applicant met to discuss terms for a development agreement.  However, no agreement was reach. The City will continue to process the current project application according to applicable legal requirements and timelines.

Timeline

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Project Materials