The Santa Barbara City Council took a major step Tuesday night toward redeveloping the Paseo Nuevo shopping center, a project officials say could reshape downtown for decades to come.
The plan calls for demolishing the old Macy’s building and replacing it with more than 200 apartments, including up to 80 affordable units. Council members stressed the importance of keeping affordability at the center of the project.
Councilmember Wendy Santamaria said, “We need that affordable housing. We need the adequate parking. We need 25% affordable deed restricted. I'll leave it at that.”
Councilmember Meagan Harmon added that while the proposal is a start, she hopes the plan will do more to meet the city’s housing needs.
“Over-promising and under-delivering is not acceptable when it comes to affordability in our community,” Harmon said.
Officials say the redevelopment could eventually bring as many as 600 new residents downtown, creating a more active and sustainable city center and helping to revitalize one of the city’s busiest commercial areas.
Despite ongoing concerns, the council directed city staff to continue negotiations with the developer and advance the development agreement. If the deal stays on track, construction could begin as early as 2027.
The project is part of a broader effort to address housing shortages while reinvigorating Santa Barbara’s downtown area.
