CITY OF SANTA BARBARA
CITY COUNCIL / PLANNING COMMISSION JOINT MEETING
Randy Rowse
Mayor
Kelly McAdoo
City Administrator
Kristen W. Sneddon
Mayor Pro Tempore
Oscar Gutierrez
Ordinance Committee Chair
John S. Doimas
City Attorney
Eric Friedman
Finance Committee Chair
Meagan Harmon
Mike Jordan
Wendy Santamaria
City Hall
735 Anacapa Street
http://www.SantaBarbaraCA.gov
MONDAY, AUGUST 17, 2026, 1:30 PM
SPECIAL JOINT COUNCIL/PLANNING COMMISSION MEETING AGENDA DAVID GEBHARD PUBLIC MEETING ROOM, 630 GARDEN STREET
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SPECIAL COUNCIL MEETING AGENDA
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
PUBLIC COMMENT ON ITEMS LISTED ON THE AGENDA
WORK SESSION
1. Subject: Introduction of the City’s Pathways to Yes Initiative and Initiation of a Zoning Ordinance Amendment to Create a Better Buildings Pilot Program Recommendation: That Council:
A. Receive a report on the City’s Pathways to Yes Initiative and provide feedback; and
B. Initiate a zoning ordinance amendment for a Better Buildings Pilot Program.
2. Subject: Input on Potential Future Joint Meeting Topics Recommendation: That City Council and Planning Commission provide feedback on potential future topics for joint discussion. This item is intended to help identify priority areas, align upcoming work efforts, and ensure that future meeting agendas reflect shared interests and emerging policy needs.
ADJOURNMENT
CITY OF SANTA BARBARA
Joint Council / Planning Commission
Agenda Report
Agenda Date: August 17, 2026
To: Mayor and Councilmembers, and Planning Commissioners From: City Administrator’s Office
Subject: Introduction of the City’s Pathways to Yes Initiative and Initiation of a Zoning Ordinance Amendment to Create a Better Buildings Pilot Program Recommendation:
That Council:
A. Receive a report on the City’s Pathways to Yes Initiative and provide feedback; and B. Initiate a zoning ordinance amendment for a Better Buildings Pilot Program.
Discussion
Pathways to Yes Initiative
The City is launching the Pathways to Yes Initiative, a coordinated, cross-departmental effort to make it easier to build housing and complete other community-serving development projects in Santa Barbara. The initiative recognizes that applicants often encounter a complex combination of regulations, review processes, infrastructure requirements, and overlapping City priorities. While these requirements serve important purposes, their cumulative effect can create uncertainty, add time and cost, and sometimes prevent otherwise desirable projects from moving forward.
This initiative includes several related actions:
• Improving internal coordination and fostering an exceptionally collaborative, solutionsoriented approach to project review; • Reviewing the City’s development ordinances to identify outdated, duplicative, or unintended barriers;
Agenda Item No. 1
Joint Council / Planning Commission Agenda Report
Introduction of the City’s Pathways to Yes Initiative and Initiation of a Zoning Ordinance Amendment to Create a Better Buildings Pilot Program
• Streamlining permitting and review processes where doing so will not compromise important public protections;
• Developing infrastructure solutions, including potential off-site stormwater improvements, that can address requirements more effectively than project-by-project approaches;
• Expanding opportunities for housing and other community-serving uses on City-owned property; and
• Creating incentives for projects that advance multiple City priorities.
Better Buildings Pilot Program
The Better Buildings Pilot Program is one of the first major actions proposed under Pathways to Yes. It is aproposed incentive-based zoning framework to encourage downtown housing production while advancing the City’s ecological and climate goals. Specific goals include:
• Improve housing project feasibility through incentives and regulatory flexibility. • Advance the City’s ecological, climate, mobility, and resilience goals. • Test an objective, points-based system where developers earn incentives by providing defined community benefits.
The City continues to face overlapping challenges related to housing production, climate adaptation, urban heat, ecological degradation, stormwater management, mobility, and downtown revitalization. Existing regulations adopted to address these challenges, though well-intentioned, ultimately constrain housing development and feasibility.
Development project applicants frequently identify local standards, discretionary review processes and timelines, density limitations, and post-construction stormwater requirements as significant constraints to housing feasibility and delivery, especially downtown. This was substantiated by the City’s recent Inclusionary Housing and In-Lieu Fee Study (April 1, 2026), which found that housing development under the City’s existing regulations is not financially feasible.
City permit data reflects the low rate of housing development in the downtown. During the sixyear period from 2020-2025, approximately 248 new housing units in 10 projects were issued a building permit in the Central Business District. Of those 10 projects, four (accounting for 45% Joint Council / Planning Commission Agenda Report
Introduction of the City’s Pathways to Yes Initiative and Initiation of a Zoning Ordinance Amendment to Create a Better Buildings Pilot Program
of permitted units) used State Density Bonus Law to achieve more density1, while also waiving certain City development standards2.
The Draft State Street Master Plan (2026) identifies the construction of 1,000 to 2,000 housing units in the downtown as an Implementation Priority in order to create a vibrant and economically sustainable State Street. It will take more than 20 years to achieve this housing goal at the City’s current rate of production.
Concurrently, the Sustainability Council Committee has requested staff explore implementation pathways for the Ecological Framework for the Downtown Core (Ecological Framework), developed by the Community Environmental Council and community partners.
The Ecological Framework promotes an integrated development model that views the urban environment as interconnected ecological infrastructure and emphasizes the relationship between housing, mobility, stormwater systems, climate resilience, and public health.
As the Draft State Street Master Plan is wrapping up, and there is recent momentum related to downtown redevelopment (Yardi office headquarters, DSP adaptive reuse housing in the former Nordstrom building, Santa Barbara International Film Festival Film Center, Music Academy downtown reuse, and other new businesses and remodels), the City has a unique opportunity to build on this direction and momentum to create a program that integrates these various climate and policy goals to accelerate housing production.
The proposed Better Buildings Pilot Program (Program) is intended to serve as an implementation mechanism for the Ecological Framework and complement the City’s broader development, climate, resilience, and ecological initiatives. Rather than relying solely on prescriptive development standards, the Program would create an objective, incentive-based structure that rewards projects that deliver measurable ecological, climate, housing, and mobility benefits.
As a pilot, the Program would test whether a more flexible, incentive-based approach can better align private development with City objectives while improving project feasibility and accelerating downtown housing production. The Program is grounded in the principle that housing is climate action, particularly when located in walkable, transit-accessible infill areas 1 All four projects received a density bonus of at least 50%. 2 The most common standards waived/reduced were open yard and parking (including bike parking).
Joint Council / Planning Commission Agenda Report
Introduction of the City’s Pathways to Yes Initiative and Initiation of a Zoning Ordinance Amendment to Create a Better Buildings Pilot Program
that reduce vehicle dependency, support multi-modal transportation, and reduce pressure for sprawl development at the urban edge.
Better Buildings Pilot Program
The Program is proposed as a five-year pilot subject to reassessment and potential modification based on performance metrics and implementation outcomes. The Program is structured as an objective point-based system in which applicants voluntarily provide defined community benefits in exchange for development incentives, including process efficiencies.
Eligible projects would include multi-unit and mixed-use developments in the Central Business District. Refer to Attachment 2 for a map of the eligible area. To qualify, projects must include a minimum of five residential units and have a minimum density of 20 units per acre.
Specifically, the Program aims to:
• Accelerate downtown housing production and reinvestment; • Improve project feasibility through incentives and regulatory flexibility; • Encourage development patterns that function as ecological infrastructure; • Promote compact, walkable, and multimodal infill development; • Advance implementation of the Ecological Framework;
• Integrate nature-based solutions and higher-performing building design into private development;
• Reduce entitlement uncertainty and discretionary review complexity; and • Create a more predictable, outcome-oriented development framework focused on measurable public benefit.
Based on feedback staff has heard from developers, the primary incentives offered would be increased density, process streamlining (skip Pre-Application Review Team and Planning Commission concept reviews), and compliance with Central Coast MS4 Permit Post Construction requirements related to stormwater (as opposed to the City’s more protective rules).
To earn the points necessary to obtain these incentives, projects could provide community benefits (“enhanced project performance options”) such as energy-related enhancements (allelectric building or a net-zero energy building), nature-based stormwater improvements, Joint Council / Planning Commission Agenda Report
Introduction of the City’s Pathways to Yes Initiative and Initiation of a Zoning Ordinance Amendment to Create a Better Buildings Pilot Program
mobility improvements such as additional bike parking or paseos, use of more sustainable construction materials, or additional affordable housing. Refer to Attachment 1 for the draft Program including a full list of proposed incentives and benefits.
Staff considered adding additional community benefit categories such as artist housing, family housing, senior housing, native plants, public open space, community food gardens, increased salvage of building materials, day care facilities, and universal design. However, at this stage, staff recommends keeping the Program as simple as possible. For that reason, the proposed list of community benefits has been kept short and focused on the Program’s primary goals.
The Program would allow projects to achieve significantly more density than currently allowed by providing the enhanced performance options identified. While that increase in density may feel uncomfortable or even concerning, it is important to consider the broader context:
• The Program is limited to the Central Business District, where the City seeks to concentrate the most intense development. This area has relatively flat terrain, is conducive to walking and biking, and is well-served by transit. Increasing housing options downtown is expected to strengthen the economic vitality of businesses located on and near State Street.
• Projects cannot exceed the City’s 60-foot height limit. (Note that the Project does provide for a slight potential increase in height by allowing an alternative building height definition in which the roof or parapet does not count toward the maximum building height.)
• Projects still require design review by the Historic Landmarks Commission or Architectural Board of Review.
• Under State Density Bonus Law (SDBL), projects can currently waive City development standards, including height, and many projects are currently choosing to develop under this law.
• This Program is intended to supplement and not replace SDBL. It would provide an alternative path that still requires inclusionary moderate-income (80-120% Area Median Income) housing units, which is an affordability level that has proven difficult to achieve otherwise.
Joint Council / Planning Commission Agenda Report
Introduction of the City’s Pathways to Yes Initiative and Initiation of a Zoning Ordinance Amendment to Create a Better Buildings Pilot Program
Key Policy Considerations
The Program’s success will depend on calibrating incentives such that they meaningfully improve project feasibility while ensuring the City receives measurable community benefits.
Staff has proposed points for each incentive/performance option, but additional feedback on the proposed points structure would be helpful.
The Program presents an opportunity to balance post-construction stormwater requirements with other City priorities for certain redevelopment projects, particularly in constrained urban infill contexts. Staff are exploring mechanisms that maintain compliance with Central Coast Stormwater Permit requirements while providing greater flexibility and supporting improved ecological outcomes overall. This flexibility will be critical to provide incentives that are valuable to developers while maintaining our commitment to improving water quality.
If implemented as a pilot program, staff anticipate developing performance metrics related to:
• Housing production;
• Affordability outcomes;
• Ecological and climate performance;
• Permit processing timelines;
• Downtown economic activity; and
• Applicant participation rates.
At the end of the five-year pilot, staff would return to Planning Commission and Council to either extend, modify, expand, or end the Program, based on analysis of the metrics identified above.
Next Steps
If the Program is initiated, staff would take the feedback heard at the Land Development Team Oversight Committee, Architectural Board of Review, Historic Landmarks Commission, Sustainability Council Committee, the Joint Council /Planning Commission meeting, and subsequent public engagement to update the draft Program.
Once the draft is updated, the next steps would be to go to the Planning Commission for a recommendation, Ordinance Committee for a recommendation, then City Council for introduction and adoption of the ordinance amendment.
Joint Council / Planning Commission Agenda Report
Introduction of the City’s Pathways to Yes Initiative and Initiation of a Zoning Ordinance Amendment to Create a Better Buildings Pilot Program
Budget/Financial Information
The Better Buildings Pilot Program is expected to have minimal direct impact on the City’s operational budget, while offering potential for long-term fiscal benefits. By incentivizing downtown housing development, the program aims to increase the number of housing units in the Central Business District, which can enhance economic activity and generate additional revenue for the City. As more residents move downtown, local businesses benefit from increased patronage, supporting a stronger tax base and improved fiscal health. Ultimately, the program positions the City to achieve greater economic vitality with limited upfront costs.
Environmental Review
Initiation of the Better Buildings Ordinance is considered a feasibility and planning study for possible future action, and is, therefore, statutorily exempt from the California Environmental Quality Act under Guidelines Section 15262. Complete environmental analysis of the ordinance will be required prior to adoption.
Sustainability Impact
The Better Buildings Pilot Program advances the City’s sustainability goals by recognizing that housing is climate action when it is located in compact, walkable, and transit-accessible areas.
By encouraging downtown infill housing, the Program can reduce vehicle dependence, limit pressure for outward growth, and support a more vibrant, resilient urban core.
The Program also links additional development flexibility to measurable sustainability benefits, including all-electric or net-zero energy buildings, nature-based stormwater solutions, and ecological improvements that support the City’s climate, resilience, and environmental goals.
Attachments:
1. Draft Better Buildings Pilot Program
2. Better Buildings Pilot Program Map
Joint Council / Planning Commission Agenda Report
Introduction of the City’s Pathways to Yes Initiative and Initiation of a Zoning Ordinance Amendment to Create a Better Buildings Pilot Program
Prepared and
Submitted by: Alelia Parenteau, Acting Deputy City Administrator Allison DeBusk, Community Development Director
Brian D’Amour, Public Works Director
Approved by: Kelly McAdoo, City Administrator
ATTACHMENT 1
Title 30 Zoning Ordinance Amendments
1 Chapter 30.152 Better Building Pilot Program
Sections:
30.152.010 Purpose
30.152.020 Eligibility
30.152.030 Development Incentives
30.152.040 Enhanced Performance Options
30.152.050 Review Process
30.152.060 Relationship to Municipal Code
30.152.070 Relationship to State Density
Bonus
30.152.080 Sunset/Duration
30.152.010 Purpose
The Better Buildings Pilot Program (“Program”) is intended to facilitate increased residential development downtown by acknowledging the City’s overlapping challenges and requirements related to housing production, climate adaptation, urban heat, ecological degradation, stormwater management, mobility, and downtown revitalization. In recognition of existing constraints on housing feasibility and delivery resulting from these overlapping requirements, especially in the urban core, the Program allows for development-related incentives in exchange for meeting specific ecological-, affordability-, or mobility-related goals.
30.152.020 Eligibility
The Program is available to development that meets all of the following criteria:
A. Located within the Central Business District, as delineated in Figure 30.175.050.B; B. Located within a zone that allows residential use;
C. Multi-unit or mixed-use residential project;
D. Minimum density of 20 residential units per acre; and E. Minimum of five net new residential units provided.
30.152.030 Development Incentives
Eligible projects can access the development incentives listed in Table 30.152.030, Development Incentives / Points, by redeeming points earned per Table 30.152.040, Enhanced Project Performance Options / Points.
City of Santa Barbara ATTACHMENT 1
2 TABLE 30.152.030: DEVELOPMENT INCENTIVES / POINTS
Type Incentive Points Required
Development-Related Additional density – Unlimited density 160 points Development-Related Additional density – 10% density bonus 30 points each Development-Related Reduce open yard – Reduce minimum open yard area required by 10%
5 points each
Development-Related Reduce open yard – Reduce minimum open yard dimensions by 12 inches
10 points each
Development-Related Reduce vehicle parking – Reduce vehicle parking (quantity) by 10%
5 points each
Development-Related Alternative Building Height Measurement – Height is the vertical distance measured from existing or finished grade, whichever is lower, to the top of the structure directly above. For the purposes of this measurement, roof parapets and pitched roof elements are allowed to extend above this height by an additional five feet, provided such features are solely architectural or functional roof elements and do not create occupiable space.
5 points
Development-Related Inclusionary Housing-Related – TBD TBD Development-Related Stormwater – In-lieu fee options for portions of stormwater compliance
TBD
Development-Related Stormwater – Comply with the Central Coast post construction stormwater requirements rather than City’s more stringent requirements
TBD
Process-Related Exempt from Building Height Exception determination required by Section 30.140.100.B, Community Benefit and Community Benefit Housing Projects
2 points
Process-Related Exempt from pre-application and concept review required by Section 30.150.060, Pre-Application and Concept Review
Required
2 points
A. In addition to the Development Incentives explicitly identified in Table 30.152.030, applicants may propose incentives that are substantially similar to or are extensions or variations of the listed incentives. The Community Development Director, in consultation with the Public Works Director and Sustainability and Resilience Director, shall determine if the requested incentive is appropriate, in line with the incentives listed, and consistent with the Purpose of this Chapter, and shall identify an appropriate point value based on comparison to identified point values for similar types of incentives. The Director’s decision is final.
30.152.040 Enhanced Performance Options
Eligible projects earn points by providing designated community benefits (“enhanced project performance options”). These points earned can then be redeemed for the development incentives listed in Table 30.152.030, Development Incentives / Points.
ATTACHMENT 1
Title 30 Zoning Ordinance Amendments
3 TABLE 30.152.040: ENHANCED PROJECT PERFORMANCE OPTIONS/ POINTS Type Community Benefit Points Earned
Housing and Affordability Additional affordability (above inclusionary housing requirements) – Additional 5% of base density units for moderate-income households
+ 50 points each
Housing and Affordability Additional affordability (above inclusionary housing requirements) – Additional 5% of base density units for middle-income
households
+ 30 points each
Housing and Affordability Additional affordability (above inclusionary housing requirements) – $50,000 contribution to Local Housing Trust Fund
+ 10 points
Climate and Energy All-electric building + 40 points
Climate and Energy Ultra-High Energy Efficiency (20% more efficient than state code)
+ 50 points
Climate and Energy Net Zero Energy Building (A highly efficient building that offsets its annual energy use through onsite renewable energy
generation)
+100 points
Climate and Energy Urban heat mitigation – Install a cool roof with an aged Solar Reflectance Index of at least 64 for low-slope roofs, or at least 32 for steep-slope roofs
+ 10 points each
Climate and Energy Urban heat mitigation – Use high-albedo paving materials with a minimum Solar Reflectance Index of 29 for at least 50% of onsite non-roof hardscape areas
+ 10 points each
Climate and Energy Passive House or PHIUS+ Certification ILFI LBC +100 points Ecological and Resilience
Features
Stormwater retention exceeding SWMP requirements by 25% + 40 points Ecological and Resilience
Features
Stormwater retention exceeding SWMP requirements by 50% + 60 points Ecological and Resilience
Features
Nature-Based Stormwater Management: meet at least 90% of required stormwater treatment volume or area through
vegetated or permeable green infrastructure.
+ 40 points
Mobility and Public Realm
Improvements
Bicycle-related Benefits – Each additional long-term bike parking space
+ 2 points each
Mobility and Public Realm
Improvements
Bicycle-related Benefits – 25% of required long-term bicycle parking spaces provided can accommodate larger bike types (e.g. cargo, bikes with trailers/child carriers, e-bikes, recumbent) + 10 points each
Mobility and Public Realm
Improvements
Bicycle-related Benefits – Install bike charging facilities for 10% of required long-term bike parking spaces. Charging facilities to be a minimum 120V with fire safety bags meeting the latest Fire Safety Best Management Practices
+ 15 points each, up
to 45 points total
Mobility and Public Realm
Improvements
Bicycle-related Benefits – Replace 10 City Hitching Post Bike Racks in Public right-of-way with the Rambler Wide Bicycle Rack
+ 5 points
Mobility and Public Realm
Improvements
Pedestrian-related Benefits – Paseo in accordance with the Pedestrian Master Plan or El Pueblo Viejo Design Guidelines + 20 points
City of Santa Barbara ATTACHMENT 1
4 Mobility and Public Realm
Improvements
Pedestrian-related Benefits – Contribute $25,000 for
sidewalk/paseo repair/beautification in the Central Business District
+ 5 points
Circular Economy and
Adaptive Reuse
Adaptive Reuse project per SBMC 30.185.045 + 100 points Circular Economy and
Adaptive Reuse
Use of low-carbon concrete for 25% of project + 10 points Circular Economy and
Adaptive Reuse
Use of low-carbon concrete for 50% of project + 20 points Circular Economy and
Adaptive Reuse
Use of low-carbon concrete for 75% of project + 30 points Circular Economy and
Adaptive Reuse
Use of low-carbon concrete for 100% of project + 40 points Circular Economy and
Adaptive Reuse
Use of mass timber construction materials for 25% of project + 10 points Circular Economy and
Adaptive Reuse
Use of mass timber construction materials for 50% of project + 20 points Circular Economy and
Adaptive Reuse
Use of mass timber construction materials for 75% of project + 30 points Circular Economy and
Adaptive Reuse
Use of mass timber construction materials for 100% of project + 40 points A. In addition to the enhanced project performance options explicitly identified in Table
30.152.040, applicants may propose enhanced performance options that are substantially similar to, are extensions or variations of, or constitute technological or environmental innovations to the listed enhanced performance options. The Community Development Director, in consultation with the Public Works Director and Sustainability and Resilience Director, shall determine if the requested enhanced performance option is appropriate, in line with the options listed, and consistent with the Purpose of this Chapter, and shall identify an appropriate point value based on comparison to identified point values for similar types of enhanced performance options. The Director’s decision is final.
30.152.050 Review Process
Projects follow the standard review process based on required entitlements, unless waived by a Development Incentive identified in Table 30.152.030.
30.152.060 Relationship to Municipal Code
Projects are subject to applicable Municipal Code regulations unless explicitly reduced or waived by a Development Incentive identified in Table 30.152.030.
ATTACHMENT 1
Title 30 Zoning Ordinance Amendments
5 30.152.070 Relationship to State Density Bonus
This Program is a voluntary program and may not be combined with State Density Bonus Law.
Applicants are permitted to pursue projects under the State Density Bonus Law; however, the incentives outlined in this Program would not apply in such cases.
30.152.080 Sunset/Duration
A. Pilot Program. The Program is established as a pilot program with a duration of five years from the effective date of the adopting ordinance.
B. Expiration of Pilot. Projects deemed complete before the sunset date may proceed under this Chapter; no new applications or resubmittal of incomplete applications will be accepted after the sunset date.
C. Evaluation and Reporting. City staff shall report to Council before the sunset date regarding effectiveness and recommendations.
D. Council Action. Council may extend, modify, or sunset the Program based on evaluation findings.
ATTACHMENT 2
Map of Central Business District, which is the proposed eligibility area for the Better Buildings Pilot Program.
GARDEN STREET
DE LA VINA STREET
ARELLAGA STREET
SOLA
STREET