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The former home of Macy’s now sits empty on the corner of Ortega and State Streets
By Lauren Bray, edhat staff
Santa Barbara City Council discussed changes to the downtown area in a packed meeting Thursday following the release of a revitalization report.
The City of Santa Barbara hired Kosmont Companies earlier this year for “real estate advisory services in connection with a market analysis” to provide recommendations for the revitalization of the State Street area of Downtown Santa Barbara. The 87-page report cost Santa Barbara $84,000.
The report was released this week ultimately finding the downtown area is facing significant vacancies as a result of “macro changes in the retail industry, competition for retail sales, and a complex permitting process.” It commented the City’s goal is to increase vibrancy and reduce vacancies along State Street.
Inside the Kosmont Report
The report found a general consensus is the City does not have a business-friendly reputation, with the permitting process being too difficult and expensive. Additionally, planning and building departments are short-staffed while the City staff is not enthusiastic to expedite development. The high cost of housing is driving out a quality workforce while some landlords are not motivated to lower rents due to past elevated rent expectations. The report continued to state that vagrancy is hurting the image of State Street while residents want to see an increased police presence.
The detailed Kosmont Report then provides suggestions for some of these issues. The report states “redevelopment of the Macy’s store is a critical component in the State Street revitalization. Given
the surplus of retail space along State Street, Kosmont recommends a blend of uses such as housing, office, hospitality, and retail.”
Additionally for State Street, the report recommends smaller size residential units at high density and reduced parking requirements, as well as, increased public/private partnerships to incentivize property owners to invest in changes. Infill housing or live/work space in back of vacant buildings along State Street and the development of new workforce housing, including micro-units, between
Chapala and Anacapa Streets, plus the ability to utilize surplus parking spaces in City parking structures to meet onsite requirement and reduce development costs.
A pedestrian mall, potentially closing down sections of State Street, to incorporate outdoor dining, music after 10:00 p.m., pop-up events, and art were also suggested. The permitting process should be easier and more accessible, especially for pop-up events, the report claims.
Other suggestions in the report included: more creative office uses or shared working spaces that have artistic designs or window displays to avoid frosted glass; UCSB to open satellite campus downtown; subsidize waterfront trolley to be zero cost on State Street and other transportation needs for workers and tourists; establish Adaptive Reuse Zone with relaxed building permit rules; and incentivize residential, office, and hotel reuse of vacant commercial buildings; and the city increasing special events downtown more frequently.
Kosmont stated the next steps are to hire an economic development (ED) professional in a full-time City government managerial position as well as an Asst. City Manager with broad experience to oversee ED function, or hire an ED Manager position. In observing other ED departments in cities of similar size, Kosmont estimates the annual budget could range from $300,000 to $1,000,000.
Solutions to fund this were: allocate annual funds from Measure C, charge fees for expedited permit process, downtown parking revenue, reduce City subsidies of various marketing budgets with private organizations, and contributions from downtown BID.
The Community and Council Voice Their Opinions
The meeting lasted over four hours with the majority of the council voicing support of the report’s recommendation to hire an ED director to lead the charge for suggested changes.
There was a strong showing of locals who provided public comment, most of which echoed a “no duh” sentiment to the report’s findings. Business owners and residents have voiced similar or the same concerns for years with some questioning why an expensive report was needed at all.
Public comments tended to focus on three categories: homelessness/safety, more affordable housing, and easier permitting processes.
Some residents commented on the need for rent control and more density housing that’s affordable. “What good is increased housing if no one can afford it?” one public commenter asked the council. Another suggested additional grocery store options in the downtown area, while one person suggested tearing down the empty Macy’s structure and building a park. Shared mobility such as rentable scooters and bicycles were thrown in the mix along with community-based solutions for homelessness instead of an increase in police presence.
Councilmember Kristen Sneddon encouraged the idea of using the vacant buildings as potential housing. She stressed the importance of the space being vibrant and adding to the downtown culture. She also supported the idea of closing portions of State Street on a trial basis and wants to be more service-oriented in the permitting process for businesses.
Sneddon then deferred to City Administrator Paul Casey on how quickly some of these ideas could be implemented. Casey responded that they are ready to act on the economic development side.
Throughout the meeting councilmembers and speakers suggested Nina Johnson, senior assistant to Casey, would make a good candidate for the ED position.
Councilmember Randy Rowse jumped in with a more cautious tone urging the council not to rush into hiring but to take time to find the right person or people. Rowse also stated programs like AUD are important and it’s the council’s job to figure out a way to get to yes instead of no when it comes to permitting projects.
Councilmember Eric Friedman echoed Rowse’s concerns of supporting the ED position but doesn’t see the hurry, stating, “we are looking at the next 20 to 25 years of downtown, and when you rush you make mistakes.”
Friedman also said the free MTD shuttles are no longer free for a reason and he supports a nominal fee. He also likes the idea of closing State Street for special events but not permanently closing down the street without a solid plan. Finally, he urged landlords to experiment with lower rents.
Councilmember Meagan Harmon appreciated the need to take time but urged the council not to forget about innovation and experimentation as key to the process. She stated that everyone must be open to change, new ideas, and trying new things.
Councilmember Jason Dominguez reintroduced the idea of redesigning De La Guerra Plaza to help with the revitalization. He also supports a homelessness committee so “at least one institution is constantly dealing with the issue.” Dominguez also stressed taking time and having a solid and clear goal, “Institution Ale is an example of where we may have shot ourselves in the foot,” he said.
Councilmember Oscar Gutierrez agreed to think responsibly but also to take risks. He also called on millennials to do their part, “show up and be heard.”
Mayor Cathy Murillo was vocal about wanting to create an ED position and expressed excitement over the downtown street experiments that recently took place. She likes the idea of micro-housing units, especially in the back of a store, “how cool is that? It’s European,” she said.
Click here to view the full report.
Where does it say that in this report? I couldn’t find it. Might be in another report but it’s not in this one.
AND WHY THE FRICK IS THE CITY CLOSED EVERY OTHER FRIDAY WHEN THEY CLEARLY NEED MORE MANPOWER TO HANDLE THE PERMITTING PROCESS.
The lady that owns Plum Goods went on the record saying rents are not too high but are on par with other similar cities.
Pathetic that downtown is in such dire straits. Big stores are not getting the business they once did due to on-line buying. Makes sense, who wants to go into stores when they can buy from their computer, in the comfort of their home, with free shipping in most cases. I shop at thrift stores and yard sales. Saw a pair of shoes in a magazine that cost $1,400, I bought the exact looking pair, new condition, for $2.00 at Goodwill. Downtown was much nicer when there were no mega sized stores and all were locally owned.
City spending at its most obnoxious.
Seriously, one of the fixes they suggest is more shared office spaces! Impact Hub, Workzones and Sandbox are all mostly empty. This is a non starter as a business idea and the market is flooded with private sector options, a City run version of a bad business idea, awesome!
Why are we spending tens of thousands to out of town companies to tell us how to fix our problems that are so obvious a child could point them out. The next step is to to spend hundreds of thousands! The solutions do not require a new high level hire. Move the homeless out of the State St and half the problem is taken care of. Second relax permitting rules ie the ludicrous situation with Institution Ale’s neon, entirely the City’s making. This problem is solvable but not by politicians determined to spend money on consultants who just push the real problem down the track while simultaneously encouraging City staff to harass business owners
Could they have padded this bogus report a little less obviously? It’s like a grade school assignment cobbled together the night before it’s due
Page after page of charts and graphs using public stats, mostly the City and States own numbers!
Who on the City council is buddies with the owner of Cosmont Companies? Would be my first question because someone just got $84000 to put our own data in bar charts and tell us that more and more people are shopping on Amazon
Could these noodle brained, nincompoops find their own butts without the aid of a consultant? This council and city management, especially Murillo are utterly inept, ineffective political hacks. Murillo has turned out to be the worst mayor we’ve ever had in a time when we truly need strong, capable, experienced leadership. Its really a pathetic joke that they hire some $85k consultant to tell them what every other person in the city knows.
‘[H]how cool is that? It’s European.” This isn’t Europe.
I do not know exactly how this could be done, but….wouldn’t it be nice if the Macy’s property could be converted to a “premium” adult ed / continuing education center. It would have to be accessible only to those who were registered to take classes…. otherwise it will instantly be populated with the residents of iur downtown public library.
The City government and bureaucracy needs a top to bottom overhaul, which won’t come from wasting money on consultants and wasting time in circular conversations in committees. It’s not a question of liberal or conservative, developer or preservationist. It comes down to competence. It should not take a consultant to know that the SB permitting system is a confusing mess and retail is declining. That has been common knowledge for years. The mayor and most of the Council are out to lunch.
Deja vu all over again. Go back forty years and the city was filled with angst over how much State Street, especially the lower part, had deteriorated. Back then there was no online shopping to blame. La Cumbre Plaza was the villian. Back then the crime and homeless problems were way worse. Four decades later State Street has been much improved. Take off the rose colored glasses and take stock of the progress that has been made before splashing out money for a new City official that will have little impact on the issue at hand.
On par with which cities, I wonder? Whose side is she on, anyway?
The SB Council and the Mayor needs to get their snobbish noses out of the air and get out of everyone’s business. Stop trying to control everything!! But hey, no smoking unless it’s a joint, no straws, no plastics…. why do they put so much effort into the unimportant stuff. WHy do they keeping running businesses out of town, why do they keep building housing that no one can afford, yet all the homeless people who come to SB get free housing while working people can’t afford anything here…
It’s time to drain the swamp in Santa Barbara!!!
Institution Ale’s neon sign violates the sign ordinance. City Council denied their appeal for an exemption.
ummm yes we want to be like everywhere else. Same chain stores, chain restaurants, characterless. That’s something to shoot for. Or you could aim higher, reduce rents to fill vacant spaces, charge the unused properties a “dead space” fee. Come up with creative and organic solutions as opposed to paying a consultant to regurgitate the obvious and undertake the “throw it at the wall and see if it sticks” style of recommendations. Basically they don’t know diddly and have no confidence in their recommendations or the implementation thereof.
Yes, make it more friendly for the late-night drunks, instead of the throngs of locals and tourists alike who would like to stroll happily and bolster the economy during all the rest of the daytime hours. Idiots.
She’s said this on record a few times. Wonder whose pocket or bed she is in. I won’t even go in her store.
Maybe we need to be more European because what we are doing right now is not working.
$1000 per page. Is that the going rate for an out of town observer to say what all locals have known for years? Let’s start a “Vagrant Committee”. It would be in operation from midnight to 4.00A.M. The new Economic Director, who would be making $150,000 per year, plus, plus, plus, could drive the bus. For a business unfriendly town, how do City employees easily get to facilitate illegal business permits and can’t complete the legal ones? Is it suspicious or is it the new normal?
The City should just give in to the homeless and create a two block “human experiment” on the 500-700 block of State St. Install fences around it and let the bums do whatever they desire-then have tourist from around the World come pay to observe the “Santa Barbara Human Experiment”… Kinda like charging to visit at the Zoo…
Wasn’t there another consultant hired by the long gone Downtown SB ED Maggie Campbell a few years ago that cost around $55,000? Same stuff! No reference to the homeless problem. This is a repeat and more wasted money. Duh!
It would seem that city staff and particularly Murillo’s “peeps” come to EdHat and downvote each and every critique of her awful performance as Mayor and the city’s failings. Every single post with any critique of the city, the council or the mayor gets downvoted into the penalty box. Which is odd considering the number of posts that point out her utter incompetence outweigh the Pollyanna’s posts who believe that all is perfect in paradise by about 5 to 1… Do we the people need to hire an outside consultant to tell us that our mayor is a inept, ineffective, nincompoop? I think the people of EdHat and the city have already concluded that fact. Personally I vote for a $50k contract to be awarded to Roger to tell us exactly how things are and how they should be…
Ahhh yes! SB is slowly turning into a mini me version of a Manhattan, N. Y. Starting with 4 to 5 story AUD Projects that those who are in the service industry (many with 2 to 3 jobs), those who are in the middle class (now considered regular working class) and those who are on low monthly fixed income that they just cannot afford. The Mayor is the village idiot that was voted by her idiot followers. City Council Members Jason Dominguez and Kristen Sneddon are the only ones who really care about the community of SB. The rest of the Council are Murillo’s idiot puppets. Just think about it; residential living on State St., mini me Manhattan, N. Y. Not the Old Spanish type Pueblo that SB that it once was. That history of SB is disappearing and will be long forgotten.
This may not be Europe, but we are known as the “American Riviera”. We might take a lesson from Northern Europe. I wonder if any of the consultants have ever been to Illums Bolighus? I will not go into detail here, check it out online. Amazing true department store with something for everyone, and is also a tourist destination because of it’s unique concept. That suggestion is free.
So if people start living downtown, won’t they also be the very ones who will complain about music noise after 10pm?
The payment of the consultant fee is another example of how government politicians have learned to play the game. Nothing in that report was “new” as it all repeated the Downtown Org/Chamber of Commerce demands that have failed for decades. And the idea that the city should reconstitute itself to appease “millennials” is really disgusting. The “millennials” the authors want us to attract are exactly the same people as were called Young Urban Professions (Yuppies) a couple of decades back. The city owes a duty to the whole of its population, not just these successful (and apparently wasteful and narcissistic people–per the report). The whole expense was just a defense of the right of property owners and exploiters to dominate city policy for their own benefit. When are we going to see a holistic “solution” to making downtown a “vibrant” place?
I too wonder why every comment critical of the mayor is downvoted? Cathy probably told her assistant to create multiple IDs and cover over any criticism. She’s totally incompetent as mayor, but really good at schoolgirl gossiping and bullying tactics. Remember how some people used to whine about Helene? Doesn’t she look like the best mayor ever compared to Murillo?
Thank you #3490! I mentioned this at an Architectural Board of Review Meeting sometime last year as well at a City Planning Commision Meeting. They looked at me like I was crazy, but it is true and they are just too blind to see it. Well one of the Board Members on the ABR does see it. I was born here in SB in 1956 at Saint Francis Hospital, (closed down in June of 2003) and I grew up here. I still have some fond memories of what SB looked like in 1959 and 1960 when I was just 3 and 4 years old. Throughout the 60’s and in the 70’s there were a lot of changes, but SB still had it’s Old Spanish Pueblo charm. It was right about early to mid 80’s that’s when it was slowly disappearing. Now look at it today as you already have observed. Listen to the 1973 concept album by The Kinks ‘Preservation Act 1’. When I was going to SBH at that time I bought that album and when I heard the album, I already knew this was going to happen to SB. Very sad.
It’s not every comment about her, it’s comments like..”In the photo for the article, it appears that Madame Mayor Murillo is sporting an outfit given to her by Kim Jong-un.” Those type of comments should be removed by the Admin.
The neon sign. Get rid of the neon sign. The neon sign must go. All will be well if the neon sign is gone. The neon sign is the problem, not the vagrants. You never see vagrants with neon signs. Drug needles, liquor bottles, tents, urine, feces and stolen bicycles, yes. Neon signs, no.
7/27 9:19. Finely crafted paranoid conspiracy theory. You win. Here’s a cookie.
ARAGORN please stop overposting. You only need to click send once. Oh and calling people names only weakens your argument.
You “pro planners” are in large part responsible for the disheveled state of the city and environs. We ain’t buying your unreasoned BS. Classism at its worst.
Cathy this isn’t Europe but by all means if you think Europe is so cool please move there. We won’t miss you at all. I hope you people have had the chance to register to vote because it’s obvious most people don’t think she’s doing a great job. It’s time for Santa Barbara to have a mayor that cares about Santa Barbara. Preferably someone from here or that has lived here long enough to know this isn’t the Santa Barbara we want.
Thanks Rep Jason Dominquez for keeping priorities in order: “ … a homelessness committee so “at least one institution is constantly dealing with the issue.” We must engage in problem solving. We cannot risk becoming LA Norte. Dominguez also stressed taking time and having a solid and clear goal, As a pro planner,, I recommend higher rent housing downtown with tenants capable of supporting arts and dining. Those working at Amazon in law offices can afford $2800-$4000/mo. Locate on Westside, bear industrial zone, and outskirts off Foothill/ Cathedral Oaks, less expensive small and tiny units under $1200 for workers with subsidized bus transport to City core. No more subsidized housing in SB. We have more taxpayer subsidized Section 8 proportionately than anywhere else in America. We need low rent small starter and worker AUD units 200 -400 sq feet.
“The report was released this week ultimately finding the downtown area is facing significant vacancies as a result of “macro changes in the retail industry, competition for retail sales, and a complex permitting process””. Exorbitant commercial rental rates have nothing to do with it? Really?
Here’s a crazy idea, City Council: start charging State St Landlords vacancy taxes and use the proceeds to pay for increase police enforcement, an economic developer, or increased staffing for expediting the permit process for downtown businesses. A journey of a thousand miles takes a first step.
That’s right, and ACTING mayor: ///////////////////////From CathyMurillo.com: ABOUT ME…..”Murillo has a B.A. in Dramatic Art from UCSB, and is a member of the American Association of University Women, the Santa Barbara Women’s Political Committee, Health Care for All Santa Barbara, League of Women Voters Santa Barbara, and the Santa Barbara Puerto Vallarta Sister Cities Committee.”
Those two consultants look like the real estate agents scouring my neighborhood for out-of-town investors.
Actually, the real way to play the game is to be in government, vote for a consultant study, and then have a financial interest in the consultant hired to do the study. Happened recently at LADWP and also the bullet train project. The rich just get richer……
I guess no one taught you the golden rule when you were a kid, right?
I was just thinking that there hadn’t been much Murillo bashing on this site for a while, but it seems the haters were just biding their time. It is unfortunate that the Mayor has been too busy doing other things to solve the problems of homelessness and bricks and mortar retail, because I’m sure those are really easy problems to solve. Just look at Ventura, and Los Angeles, and San Diego. Those problems have been solved there right? ……..Some problems are really difficult and very complex. The solutions are not easy. That is the reality. Sorry to burst your bubbles. Let the downvoting begin.
Eight thumbs up for this comment so far. Shows there are at least 8 financially incompetent readers here.
This Council is having to deal with the bad decisions from previous Councils. The cities where the downtown’s are thriving, protected their “old-towns” by not letting chain stores in. They zoned chain stores to other new areas of their cities (San Luis Obispo, Durango, Flaggstaff). When Santa Barbara let the Paseo Nuevo Mall in the rents all went up and the Mom and Pops dried up. Tourists don’t want to walk up a Main Street like their own with a dozen Starbucks and mall stores. Santa Barbara can throw money and talk all day long, but until they put the genie back in the bottle , they will suffer with high rents that mom and pops cant afford. Also, the density of development around State street is killing the character of the City and creating a less attractive place for tourists. This Council is stuck with the little L.A. scenario that cities that don’t plan correctly end up with.