On Monday, November 9, at 3 p.m., the City of Santa Barbara will hold a special joint hearing on the future of the north end of La Cumbre Plaza. On the agenda is The Neighborhood at State & Hope, a 680-unit mixed-use housing project. It would replace the Macy's building and its parking at 3805 State Street and 110 S. Hope Avenue. City Council will not hear it, and neither will the Planning Commission. A Staff Hearing Officer and the Architectural Board of Review will sit together. If they approve, the applicant can apply for building permits.
La Cumbre Plaza is being remade one parcel and one storefront at a time. You can see it in the housing proposals and in the restaurant spaces along Upper State, and both are worth knowing about before Monday's hearing.
The plaza-wide plan that didn't happen
A few years ago there was talk of a single citywide specific-plan concept for La Cumbre Plaza, with up to 2,000 homes. As Noozhawk reported in April 2025, the concept stalled when its funding was rejected. The housing ideas that survived were two separate proposals, one for the Sears site and one for the Macy's site.
The two projects are at very different stages:
| Macy's site | Former Sears site | |
|---|---|---|
| Address | 3805 State St. and 110 S. Hope Ave. | 3845 State St. |
| Project name | The Neighborhood at State & Hope | La Cumbre South Homes |
| Proposed homes | 680 mixed-use units | 443 rentals in two four-story buildings |
| Latest public step | Joint SHO and ABR hearing set for Nov. 9, 2026 | ABR design review in Nov. 2025, with revisions expected |
The Sears proposal comes from owner Riviera Dairy Property and developer Kennedy Wilson. It includes about 10 percent moderate-income units. Noozhawk covered its November 2025 design review, where the Architectural Board of Review pushed back and the developer planned to revise the design and return. The city's project page still describes staff reviewing the October 2025 submittal. It lists environmental review and later approvals as steps still ahead and gives no construction date.
The Macy's project is well ahead of the Sears site. Its name has stayed the same, but the size has changed. Earlier reporting gave 684 units, and the city's current project description says 680.
What the Macy's plan contains
The city's project page describes moderate-income and very low-income rental units alongside market-rate rentals. It also lists "a variety of retail, dining, commercial and public spaces." The project relies on the city's Average Unit-Size Density Incentive Program and on State Density Bonus law.
The subdivision map matters most for anyone who uses the rest of the plaza. The plaza sits on one legal lot of 14.9 acres, and the proposal would split it in two. The 8.8-acre Macy's site would become one parcel for the new development. The rest of the shopping center would stay on the other parcel, and the city notes that this portion "could be redeveloped in the future." So Monday's hearing covers one corner of the plaza. It also draws the line that any future redevelopment of the remaining shopping center would start from.
A January 2025 city staff report found that the 1967 Macy's building lacked historic significance, as Noozhawk reported. That finding did not approve demolition or the housing project. Noozhawk's 2025 coverage put construction after Macy's lease ends in 2028. Neither the city's project page nor the hearing notice gives a construction start date.
Two turns in the project's file
Two events shaped the project between its completed application in February 2025 and this month's hearing notice.
The first came in August 2024. City Council voted unanimously to have staff negotiate a term sheet for a possible development agreement with the property owner. According to the city, such an agreement could have secured more affordable housing and other public benefits in exchange for concessions to the owner. Staff and the applicant met, but they did not reach an agreement. The city says it "will continue to process the current project application according to applicable legal requirements and timelines."
The second came on June 30, 2025, when Governor Gavin Newsom signed Assembly Bill 130, which took effect immediately. For projects that meet specific criteria, AB 130 provides a statutory exemption from the California Environmental Quality Act. It is aimed at housing on land that is already developed or substantially urbanized, and a mall parking lot on State Street fits that description. The city has determined that the Macy's-site project qualifies for the exemption, with conditions added for General Plan consistency.
The city's general planning timeline for the project lists environmental review as a step that could take "Months-1 Year depending on level of CEQA review." On November 9, the Staff Hearing Officer will consider the CEQA exemption along with the tentative subdivision map. The Architectural Board of Review will consider Project Design Approval.
How to follow it before and after Monday
The city has laid out the public's access points, in order:
- Look at the site plan online. In October 2026 the city posted a proposed site plan on the project page.
- See the full plans in person. Most of the drawings are not posted online under Government Code § 65103.5. You can view them at the Community Development Department, 630 Garden Street, during walk-in hours with no appointment. You may not photograph or copy them without the copyright holder's written permission.
- Check the agenda pages. Hearing materials will be posted ahead of time on the Staff Hearing Officer and Architectural Board of Review pages.
- Ask the project planner. The city directs questions to Megan Arciniega, Development Review Supervisor, at [email protected].
- Know the appeal window. The city's neighbor notice says decisions may be appealed within 10 calendar days.
This is a summary of public notices and general information, not legal advice. If you are thinking about commenting or filing an appeal, check the procedures directly with the city or an attorney.
Meanwhile, the storefronts are turning over too
The housing decisions will take years to play out. Restaurant spaces at the plaza and along this part of State Street have been changing hands throughout 2026.
Mendocino Farms opened June 30, 2026, at 3851 State Street in La Cumbre Plaza. It took over the former Panera Bread space. Edhat noted that it is the chain's first Santa Barbara location and its 100th overall.
Islands was scheduled to close its La Cumbre Plaza location on September 27, according to an employee who spoke with Edhat ahead of that date. The plaza's homepage still listed Islands among its featured tenants in late October, and no replacement has been announced.
Bangkok Thai Cafe is a short walk south at 3613 State Street in Ontare Plaza, in the former Kaz To-Go space. Santabarbara.com's dining news reported it open by October 16. The menu covers Thai classics plus regional dishes such as Khao Soi and Boat Noodles.
Earlier, Talbots at La Cumbre was expected to close at the end of January 2025, Siteline reported.
On the plaza calendar through December
The rest of the shopping center keeps its regular programming while the Macy's parcel goes through review. These dates come from the plaza's posted events page:
- November 3 and December 1: Grace Fisher Foundation Smart Senior Living Seminar
- November 20 and December 18: LCCCA Art Walk
- December 5: Pinnacle Performance dog-adoption event
- Now through December 4: Harmony for Independence music-program dates
That puts the November 20 Art Walk 11 days after the hearing. If the hearing officer and design board act on November 9, the 10-day appeal window will have just closed.
Hitchcock & Associates follows what happens on Upper State because changes like a new parcel line or a new anchor tenant show up later in how nearby homes are valued. If you own near La Cumbre Plaza and want to know how this plan might affect your property, Hitchcock & Associates can walk you through it. Request a complimentary home valuation, and we'll explain what we're watching at State and Hope.
