Hearing officer approves open‑yard reduction for 1533 State Street mixed‑use project

Staff Hearing Officer Allison Debusk on June 25 approved an open‑yard modification for a proposed four‑story, 27‑unit mixed‑use development at 1533 State Street, concluding the project qualifies for the California Environmental Quality Act infill exemption and imposing conditions to reduce construction impacts and protect archaeological and environmental resources.

The modification reduces the required open yard from 2,832 square feet to 2,314 square feet for the site; the project also proposes a 4,500‑square‑foot ground‑floor commercial space, basement residential parking and three moderate‑income units as part of the city’s average unit size density (AUD) incentive program.

Debusk said the record shows the project balances size, bulk and scale for the site and neighborhood, and that key technical environmental issues have been addressed. “I do agree with the Historic Landmarks Commission that the scale and design of this project is appropriate to this site and the neighborhood,” she said, concluding the project qualifies for CEQA Guidelines section 15332, the infill development exemption.

Associate planner Kilar Plummer presented the project to the hearing officer, describing the 18,879‑square‑foot parcel as currently developed with two one‑story commercial buildings (one identified in materials as Cantwells Deli and Market). Plummer said the proposal includes residential amenity spaces — including a yoga room and a flexible “theater/podcast” room — a rooftop area with screened mechanical equipment and a solar array, and a basement parking garage and bicycle storage.

Plummer told the hearing officer that the AUD incentive lets the project seek higher density and that, while vehicle parking is not required for residential units under the AUD program, the applicant has opted to provide residential parking (one space per unit) as an on‑site amenity. Plummer also noted the project was reviewed by the Historic Landmarks Commission (HLC) and found to be aesthetically appropriate by that body.

An on‑site archaeological resources report and Phase I and II environmental site assessments were prepared because of the site’s historic uses; staff recommended conditions including limited archaeological monitoring during construction, use of a contractor qualified to handle potential lead and asbestos abatement in the older buildings being demolished, and installation of a vapor intrusion (VOC) barrier for future buildings on the site.

Public comment included a brief statement from Jonathan Duran, a local representative of the carpenters union, requesting opportunities for local hire and apprenticeship standards on projects of this type. Debusk said construction nuisance impacts are common for projects of this size and added standard mitigation language to the project’s conditions to limit hours, regulate haul routes, require dust and air quality controls and address construction parking and staging.

Debusk also revised recommended findings and conditions in the staff report before approving the modification. She struck proposed language referencing a CEQA certificate of determination that would not be on file for an exemption, deleted a proposed condition concerning interior amenity space, retained and renumbered other conditions, and added standard AUD/priority housing and affordability covenant requirements under the Santa Barbara Municipal Code references discussed at the hearing.

The hearing officer recorded that the development would include 27 units with an average unit size of about 782 square feet and three moderate‑income units required under the AUD inclusionary requirements. The decision is appealable to the Planning Commission if an appeal is filed within 10 calendar days; any Planning Commissioner may also suspend the decision within that same 10‑day period.

Planned next steps include final design review by the HLC and compliance with the conditions of approval before issuance of building permits.