The City of Santa Barbara is advancing a plan to redevelop the Paseo Nuevo Mall into a vibrant, mixed-use project in the heart of downtown. The proposal includes 233 market-rate housing units, 80 affordable units, and more than 175,000 square feet of retail space, along with new public amenities and open space. The project area spans from State Street to Chapala Street and Ortega Street to south of Carrillo Street and includes the Macy’s parcel, in-line retail shops, and a portion of City Parking Lot 2. The project does not include the former Nordstrom’s building at this time.
On August 5, 2025, the City Council approved the project description above and authorized staff to negotiate a Disposition and Development Agreement (DDA). The project remains under review, with additional opportunities for public input, environmental review, and design approvals to follow.
Project Facts
- Market-rate units: 233
- Affordable units: 80 (income-restricted)
- Retail space: 125,000 sq ft
- Community Uses to Remain: Museum of Contemporary Art; Center Stage Theater
- Parking spaces: 600 spaces in Lot 1, 383 spaces in Lot 2
- Building height: Up to 75 feet (via Density Bonus Law)
- Public land use: Includes a portion of Parking Lot 2
