New Yardi Plan May Revitalize Downtown Santa Barbara at the Former Macy’s Site

SANTA BARBARA, Calif.  (KEYT) - The City of Santa Barbara has a new offer to consider that could help with the years of frustrations about what will happen to downtown, the Paseo Nuevo Mall and the need for more housing.

It's called an Adaptive Reuse Proposal.

Specifically Yardi Systems, based in Goleta with hundreds of employees, is part of a plan to move in to the vacant Macy's  Department store on State St. at Ortega, bringing in a full team and new energy to the downtown corridor.

Part of the plan includes a transfer of the land to Yardi and also the company would contribute $5 million to the City’s Local Housing Trust Fund and $700,000 to support the City’s Downtown Plaza and Parking Program.

In the big picture the city is also looking at a deal in the formation stages with DSP (a joint venture of Dune, Shopoff Realty Investments, and Praelium) that proposes new homes within the former Nordstrom building on the opposite side of the mall from Macy's

The city has been looking for a combination of business and housing plans that would fit into the downtown footprints, reduce vehicle use and create a new interest in the main corridor for activity and events in the city.  It is also making it clear to all developers or those with proposals, that housing on all levels, including affordable units, have to be part of the deal.

Other plans have included demolishing the Macy's building and putting a new housing project in along with a higher end grocery store.

These plans and any new ones that come forward have several components including land ownership, leases and  in multiple decision makers, both private and in local government that have to agree before the deals can ben finalized.

The City Council meets at 2 p.m. Tuesday in Santa Barbara City Hall.

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