Tri-County Produce will remain open under new ownership, after the previous owner announced retirement last month.

John Dixon stated the doors of 335 S. Milpas Street would close at the end of April after running the store for the past 40 years.

The customer-serving grocery warehouse has been a fixture in Santa Barbara since 1966 and the community had a big reaction to its announced closure.

Now, it’s going to remain open as 26-year employee Jaime Desales Sr. and his son, Jaime Desales Jr., will take the helm.

Desales, Sr. said the business was like a second home and expressed excitement to now run it with his son as Dixon did with his father.

“Seeing Jaime Sr. and Jr. take over the reins is one of the most rewarding moments of my career. Jaime has been an integral part of this business for over two decades—he knows it inside and out. Watching him and his son carry Tri County forward gives me great peace of mind and a lot of pride. I know the market is in excellent hands, I’m truly grateful that the store will remain open, continuing to serve the community that means so much to me,” said Dixon.

Tri-County Produce was originally founded in 1966 as a wholesale distributor serving the three coastal counties. In 1976, under the ownership of Virgil and Marie Elliot, the warehouse was transformed into a public farmers market, offering fresh, local produce to the community.

In 1985, the store was purchased by father-son team Jim and John Dixon, who expanded the market’s offerings to include gourmet natural foods, beer, wine, and fresh meat and seafood.

Jim Dixon (left) and John Dixon (right) [Photo: Tri County Produce]

Following the passing of Jim Dixon in 2016, John carried on the family legacy, continuing to serve the Santa Barbara community with the same dedication and care.

In 2021, local developers Chris Parker and Austin Herlihy, backed by local investors, approached Dixon with a proposal to build housing while preserving the Tri-County Produce building.

The real estate developers paid $9.7 million for the 1.35 acres at the corner of Milpas and Por La Mar Drive in 2022.

“This opportunity wouldn’t be possible without the support and encouragement from John Dixon, Mr. Herlihy and Mr. Parker and their partners. We’re incredibly grateful, and we’re committed to continuing the tradition of offering the freshest produce and the best service in town,” said Jaime DeSales Jr.

On Monday morning, Santa Barbara residents Wendy and Eric Schmidt announced they have stepped in as angel investors to preserve Tri-County Produce. In a deal negotiated with Tri-County Produce owner John Dixon and developers Herlihy and Parker, the Schmidts’ investment will allow the DeSales father-son duo to continue running the market.

“I knew we had to find a way for this beloved market to continue serving the community,” Wendy Schmidt said. “With its 40 years of networked fresh produce suppliers across the region and a unique curation of other products, Tri-County Produce has become an essential part of Santa Barbara. We’re delighted that we’ve crafted a way for the market to continue and the Desales family to ultimately own this market, and we look forward to continuing to work with Austin and Chris to make this a smooth transition for everyone.”

The deal is the latest investment the Schmidts have made in Santa Barbara. Last month, the Schmidt Family Foundation purchased the 350-acre parcel of land known as Mar y Cel, the largest contiguous undeveloped property in Montecito, to protect the lands as open space.

Since 2006, Eric and Wendy Schmidt have been dedicated to philanthropy with the establishment of the Schmidt Family Foundation, focusing on promoting clean energy, sustainable food systems, ocean preservation, and human rights. Additionally, they launched the Schmidt Ocean Institute, which supports oceanographic studies by providing free access to a philanthropic research vessel, with the condition that findings are shared publicly. In 2024, their efforts expanded through Schmidt Sciences, a nonprofit aimed at advancing scientific and technological research to enhance understanding of the natural world and address global challenges.