Supervisors authorize negotiations to pursue workforce housing at 117 E. Carrillo with direction to involve a local nonprofit

The Board of Supervisors authorized county staff to begin exclusive negotiations with the developer recommended from an earlier RFP for workforce housing on county land at 117 East Carrillo Street, while directing staff to prioritize partnership with a local nonprofit and to ensure community design review is completed before any final approvals.

John Banaca of the Division of Development and Housing presented the procurement results and said five proposals were evaluated on team qualifications, prior performance, design, financing and local partnerships. The recommended proposers included a modular builder (Sola Impact, recommended by staff), a Pacific Companies team and a traditional affordable‑housing developer partnered with the housing authority. Staff noted Sola’s proposal would use modular construction to deliver roughly 100–104 units with an earlier projected completion (staff estimated earlier occupancy dates for modular construction) and a lower per‑unit cost in the submission materials.

Board members repeatedly emphasized that negotiations must preserve the character of downtown Santa Barbara and incorporate robust community outreach. Supervisor Lavanino, among others, pressed staff to require an explicit role for a local nonprofit housing operator or a local housing authority in the negotiating term sheet. The board also asked for additional financial diligence and public notice steps before a final agreement is brought back for approval.

Housing advocates and the City of Santa Barbara’s housing authority called for careful review of density, unit sizes and long‑term financial assumptions. Rob Frederick of the City Housing Authority urged that any selected proposal be subject to at least two courtesy reviews by the city’s historic‑buildings and planning bodies and that the developer demonstrate the project will produce durable, quality units.

Martin (representing Sola Impact) said Sola has delivered modular projects in other California jurisdictions and is willing to work with local architects to align aesthetics with Santa Barbara’s historic design guidelines. Staff confirmed the county will not sell the land; rather, the county will enter a long‑term ground‑lease or similar arrangement with the developer, who would be responsible for financing, construction, operations and maintenance.

The board’s motion (as reflected in the public record) authorized staff to: (1) enter exclusive negotiations with the recommended developer; (2) require a local nonprofit partner be included in the development plan or operations; and (3) continue public engagement and design review before returning with a pre‑development agreement and a proposed long‑term lease or disposition document.

The board moved the item with the direction that final approvals and any required land‑use permissions will return to the board for review. Staff said they will present further diligence materials, refined lease terms and proposed tenant‑selection priorities (including a focus on county employees) during the negotiation process.