Santa Paula staff reports: Kmart project passed, Lennar financing and bridge work planned

Planning Commission of the City of Santa Paula · September 23, 2025

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Summary

City staff updated the Planning Commission on recent and upcoming development activity: a Kmart-related item passed at City Council, Lennar plans to finance new homes at roughly 4% interest, Lewis Group seeks duplex rentals near the park, and bridge/street improvements are set to begin with staging and possible property acquisition.

City planning staff used the commission’s communications segment on Sept. 23 to brief members on recent development and infrastructure updates across Santa Paula.

Staff reported a Kmart-related matter recently passed at City Council; turnout and public engagement were similar to prior hearings. Staff also said Lennar intends to finance its product and "act as a bank," planning to offer its homes at about 4% interest, a move staff said is creating "some heartburn for other residential developers." The commission did not take action on the developer financing approach; the remarks were informational.

Staff described a Lewis Group proposal for duplex rental units across from the park, including discussion of a potential retail component to increase activity between the park and the development.

On infrastructure, staff said embankment work for the Santa Barbara Street bridge will start soon because in‑creek work is restricted between May and October. Staff said the project team is finalizing technical specifications and is evaluating either a property purchase or an eminent-domain option on the west side for staging space; the project is expected to substantially change circulation and the trail system within 18–24 months. Staff also described planned Telegraph corridor improvements, including a roundabout where Maine, Harvard and Telegraph meet.

Staff flagged upcoming staffing changes in economic development partners and city teams. Chair Kelly adjourned the meeting at 6:27 p.m.

Next steps: separate agenda items (sign code, inclusionary housing ordinance) and project-specific hearings will be scheduled as staff and partners complete required studies and public notice.