A controversial proposal to redevelop the former Macy’s building at Paseo Nuevo into housing has been scrapped, and Yardi Systems is now negotiating to relocate about 600 employees from its Goleta office into the State Street property.
Yardi approached the city and the mall’s leaseholder, Alliance Bernstein, after the earlier housing plan fell apart, reports the Santa Barbara News-Press.
That proposal called for demolishing the Macy’s building to construct 209 market-rate apartments and 24 affordable units. That deal faltered amid concerns over a proposed public contribution valued at $32 million to $39 million—conveying the land beneath the mall and a portion of property tax revenue—as well as the need for a long-term lease. The council voted against the deal earlier this year, prompting Alliance Bernstein to walk away.
In the wake of that decision, Yardi Systems approached the city, Alliance Bernstein and mall stakeholders about moving office workers downtown, and negotiations are ongoing…