In 1965, the corner of State Street and Hope Avenue was a 16-acre lemon grove owned by William Lasarzig. South of it, where the Sears building now stands, was Tony Prevedello's 30-acre dairy. That year the developer Ernest W. Hahn Inc. signed a 65-year lease on the grove and a 63-year lease on the dairy. Construction started in 1967 "after much contention from neighbors," according to a city historic resources report summarized by Noozhawk. La Cumbre Plaza opened as Santa Barbara's first suburban mall with two anchors, Robinson's and Sears.
Nearly sixty years later, the former lemon grove is back on a public agenda. On Monday, November 9, 2026, the City of Santa Barbara will hold a special joint hearing on The Neighborhood at State & Hope. That is the proposed 680-unit mixed-use project on the Macy's site at 3805 State Street and 110 S. Hope Avenue. Most coverage will focus on the buildings. The longer-lasting decision is a line on a parcel map. It divides the mall into a piece that gets rebuilt first and a piece the City says "could be redeveloped in the future." Meanwhile, the store at the north end is expected to keep operating.
What Monday's Hearing Actually Rules On
The hearing starts at 3 p.m. in the David Gebhard Public Meeting Room at 630 Garden Street. Two city bodies sit together and each decides different things.
| Body | What it reviews | What approval allows |
|---|---|---|
| Staff Hearing Officer | Tentative Subdivision Map and CEQA exemption | Clears the land-use step |
| Architectural Board of Review | Architectural drawings for Project Design Approval | Clears the design step |
| Both, once approved | Combined land-use and design approvals | Applicant may apply for building permits |
The environmental question was largely settled before Monday. Governor Gavin Newsom signed Assembly Bill 130 on June 30, 2025, and it took effect immediately. The law gives a statutory CEQA exemption to certain housing projects on previously developed urban land. The City has determined that this project qualifies, provided it carries conditions needed for General Plan consistency. The hearing officer is confirming that finding, not starting a new environmental review.
It has been a long road to this point. The owner submitted a preliminary application in December 2022 and a formal one on June 6, 2024. The City deemed the application complete on February 13, 2025. On August 20, 2024, the City Council voted unanimously to negotiate a possible development agreement. Its aim was to secure more affordable housing and other public benefits in exchange for concessions. According to the City's project page, no agreement was reached, and the application is moving forward under the standard legal requirements and timelines.
The Map Is the Bigger Decision
The building plans cover 8.8 acres. The subdivision map covers the entire 14.9-acre legal lot. It would split off the Macy's site as its own parcel. The rest of the shopping center would sit on a second parcel, and the City notes that this remainder "could be redeveloped in the future."
The City's own planning documents show what that future could look like. The 2023–2031 Housing Element puts La Cumbre Plaza in the City's Priority Housing Overlay, which allows 37 to 63 units per acre depending on unit size. Its estimates of what each part of the plaza could hold look like this:
| Site | Current use, per the City | Acres | Estimated capacity |
|---|---|---|---|
| 3805 State | Macy's, with a pending project | 8.72 | 685 units |
| 110 S. Hope | One-story mall section and surface parking | 5.26 | 310 units |
| 130 S. Hope | One-story mall section and surface parking | 5.69 | 335 units |
| 3800 block State | Parking lot | 0.78 | 45 units |
| 3845 State | Former Sears site and parking | 10.63 | 525 units |
The City calls these "estimates only." They still show that the one-story mall sections along Hope Avenue, the part many shoppers walk through, are already counted in the City's housing capacity. For those sections, the City says it has four vacant spaces offered on one-year "Quikspace" leases.
The City does not require a single master plan before any of this happens. Projects consistent with existing zoning can skip a specific plan. Applicants must still show how their proposals relate to the current shopping center and to the expected future redevelopment of the rest of it. As a result, the plaza is likely to be redesigned one parcel at a time, and the first line is drawn on Monday.
Why the Weekly Errand Run Holds Steady
Approval on Monday would not bring demolition the next week. Noozhawk reported in January 2025 that the Macy's building is leased through 2028. The developer told the outlet he had not discussed ending the lease early with Macy's. A later Noozhawk piece in April 2025 said nothing was likely to happen on the site until after 2028. Macy's still lists the La Cumbre Plaza store at 3805 State Street, and so does the mall's own site.
The rest of the plaza sits on the parcel the map leaves alone. The mall's current roster includes Bristol Farms, Pottery Barn, Williams Sonoma and J. Jill, along with Lure Fish House, Islands Restaurant, Panda Express and Chipotle. Bristol Farms is one of the plaza's newest tenants. Edhat covered its opening in May 2025.
The building itself has no historic protection. The city report found that the three-story store, built in 1967 and designed by Gin Dan Wong and Max Reder Horwitz in the New Formalism style, is not eligible for national, state or local landmark status. It opened as the eighth Robinson's in California, became Robinson's-May in 1993 and became Macy's in 2005. What keeps it standing is the lease.
What Changes at the Curb Once Building Starts
For drivers coming up Hope Avenue, the street changes will matter more day to day than the apartments. The applicant's site, stateandhope.com, lists these circulation changes:
- A new dedicated right-turn lane from State Street onto South Hope
- A new Class 1 bike lane connecting State to Hope
- Public pedestrian paseos through the site
- A new connection between La Cumbre Road and Hope Avenue
The same site describes six buildings and two levels of underground parking for residents, with surface parking for visitors. It also lists landscaped plazas and paseos, a park, small local retail spaces, eateries and a restaurant. The design draws on the Spanish Colonial Revival of Granada and Sevilla, mixed with contemporary influences from nearby properties. The City's description lists moderate- and very low-income rental units alongside market-rate units, plus retail, dining, commercial and public spaces.
The Sears End Moves on a Slower Track
At the south end of the plaza, a separate owner has proposed La Cumbre South Homes. That plan calls for 443 rental units on the 9.5-acre former Sears site at 3845 State Street, a 10,000-square-foot leasing and amenities building, and a multi-use path along Arroyo Burro Creek. On November 10, 2025, the Architectural Board of Review continued that project indefinitely and asked for design changes, as the Santa Barbara Independent reported. The Independent described it as well behind the Macy's proposal.
How Monday Works for Anyone Who Wants to Weigh In
The City's Notice to Neighbor for this hearing sets out three ways to participate:
- Speak at the hearing. The chair announces when public testimony opens. Individual comments are typically limited to two minutes.
- Email before the meeting. Send comments to [email protected] or [email protected].
- Mail a letter. Address it to the SHO Secretary or ABR Secretary, PO Box 1990, Santa Barbara, CA 93102-1990. Mail must arrive at least one week before the hearing, which makes Monday, November 2 the target date.
That same notice also states that appeals must be filed within 10 calendar days of a decision. To keep the right to appeal, a person must have commented in writing or in person before the decision. The partial plan set and staff report are posted through the City's Staff Hearing Officer and Architectural Board of Review pages. The full plans can be viewed at the 630 Garden Street Planning Counter. The City's La Cumbre Plaza page offers an email subscription for updates. You can also be listed as an interested party for mailed notices by emailing [email protected] with case number PLN2024-00227. The City notes that mailed notices are not sent when a hearing is continued. Questions about the project go to Development Review Supervisor Megan Arciniega at [email protected].
The appeal rules and deadlines above are taken from the City's notice. This post is general information, not legal advice, so anyone planning to comment or appeal should confirm the requirements with the City or a land-use attorney.
The parcel line drawn on Monday will shape the top of Hope Avenue long after the 2028 lease runs out. If you're wondering how changes at La Cumbre Plaza might affect a Hope Ranch property you own or are considering, The Morehart Group can walk you through it in a private consultation with our Montecito specialists.
