La Cumbre Plaza Redevelopment
Current Status of La Cumbre Plaza Redevelopment
La Cumbre Plaza is undergoing a significant transition as anchor retail stores have closed and large portions of the site are being evaluated for housing. The City has identified this area as a location for higher density housing due to its proximity to services, employment centers, transit routes, and regional transportation access. Two major housing proposals are currently moving through the City review process on different portions of the La Cumbre Plaza property.
Macy’s Parcel
The most recent plan for redevelopment of the Macy’s parcel describes an approximately 640-680 unit mixed use rental housing project called The Neighborhood at State and Hope. This was developed under the City’s Average Unit Density incentive program and applicable state housing regulations.
The most recently described unit mix includes:
Approx. 640-680 total residential units
Approx. 95 studio units
Approx. 380 one bedroom units
Approx. 185 two bedroom units
Approx. 20 three bedroom units
The application also includes approximately 30,000 square feet of commercial space, open space areas, and structured and subterranean parking.
In regard to affordability, approximately 54 income restricted units will be made available. While affordable housing is included in the project, questions still remain about whether the overall level of affordability is sufficient relative to the scale of the development.
Macy’s has been reported to have a lease that runs through approximately 2028. Final project design, environmental review, and entitlements remain subject to public hearings and City decisions.
Former Sears Parcel
A separate project has been submitted for the property, the City describes this proposal as an approximately 443 unit rental housing project. The project includes a mix of studio, one bedroom, two bedroom, and three bedroom units, along with a leasing and amenities building, courtyards and outdoor common areas, as well as a multi use path along Arroyo Burro Creek. The proposal indicates that approximately 10 percent of the apartments would be designated for moderate income households.
The Architectural Board of Review voted in November 2025 to continue the La Cumbre South (Sears) project indefinitely, citing concerns that the proposed design didn't reflect Santa Barbara's Spanish Colonial Revival or Mediterranean styles.
Affordability and Community Benefit
Housing production alone is not enough. The key question is how much of that housing will truly serve Santa Barbara residents who are struggling to afford to live here.
As currently proposed, a portion of the Macy’s site includes income restricted units. The Sears site includes income restricted units as well. While this is a start, the overall percentage of actual affordable housing remains limited compared to the total scale of development proposal.
Given the size of these projects, we should continue to evaluate whether additional affordability can be achieved through:
Creative financing tools
State and federal housing partnerships
Public private collaboration
Phased affordability commitments
Removing overlapping red tape that slows construction timelines and increases costs
A project of this scale should meaningfully contribute to housing for working families, teachers, service workers, and young professionals without overloading our cities infrastructure.
Traffic and Infrastructure Considerations
Traffic is one of the primary concerns for our District 5 residents. La Cumbre Plaza is uniquely positioned compared to most other large development sites in the city. It sits immediately adjacent to Highway 101 access, near the Highway 154 connection, and along established transit corridors with bus service on Upper State Street.
Because of this regional access, the site has the potential to absorb traffic differently than projects embedded deep within residential neighborhoods. Its proximity to the 101, the 154, and public transit lines may help reduce localized traffic spillover into surrounding streets compared to other potential housing sites.
That said, traffic analysis must still be thorough and transparent. Infrastructure capacity, signal timing, school traffic, and neighborhood cut through patterns should all be carefully studied before final approvals.
If studies ultimately show that impacts cannot be mitigated appropriately, adjustments to project scale, traffic flow, or infrastructure improvements should be considered to ensure the surrounding area is not overwhelmed.
Good planning means placing growth where infrastructure already exists and where regional access is strongest.
My Perspective
La Cumbre Plaza represents a major inflection point for Santa Barbara.
La Cumbre is one of the most appropriate areas in our city to focus new housing because it is close to jobs, services, transit, and regional highways. At the same time, projects of this scale must be reviewed carefully to ensure they strengthen rather than overwhelm surrounding neighborhoods.
I support a true mixed use redevelopment. A walkable neighborhood that includes grocery stores, restaurants, retail, open space, and everyday services creates more than just housing. It creates a destination. Done correctly, this area can become inviting not only for new residents but for neighbors throughout District 5 and across Santa Barbara.
I also believe we must continue exploring opportunities to improve affordability and ensure that housing developed in our community better serves local workers and residents.
Responsible redevelopment means:
Delivering meaningful housing supply with deeper affordability
Ensuring architectural quality consistent with Santa Barbara’s character
Addressing traffic and infrastructure impacts proactively
Coordinating major projects so they function cohesively with the area they are in
Creating walkable community oriented spaces that reduce dependence on vehicle travel and help minimize traffic impacts
We do not need to choose between housing production and neighborhood integrity. We must insist on both. The transformation of La Cumbre Plaza will shape Upper State for generations. This is an opportunity to revitalize underutilized commercial land while maintaining the qualities that define Santa Barbara.
My commitment is to ensure that growth in District 5 and across our city is thoughtful, transparent, and grounded in long term community benefit rather than short term gains.