On July 1, the Santa Barbara City Council voted 5-2 to extend Title 31, the ordinance keeping ten blocks of State Street closed to cars, for up to six more years. If you've lived downtown through any stretch of the last six summers, you already know this argument by heart. Consultants, committee meetings, a Master Plan that took years to draft, and a vote that landed almost exactly where it started.
One columnist covering that meeting described the vote as keeping the current setup after six years of process. That is one part of the downtown story.
Alongside the promenade debate, private investment and cultural projects were taking shape downtown. A software company committed to buying most of a shopping mall. A film festival finished a $20 million theater rebuild. A restaurant chain spent seven months renovating a building it's owned since 2007. These projects add another dimension to the story of where downtown is heading.
Two Former Department Stores, Two Redevelopment Plans
Another significant downtown story this year involves two buildings a block off State Street that had sat empty for years: the old Macy's and the old Nordstrom inside Paseo Nuevo.
Yardi Systems, the Santa Barbara-founded software company currently based in Goleta, is buying the mall's Macy's building, its inline retail, and the parking lot underneath, then moving roughly 600 employees into the space. The City Council closed on the development agreement June 30, and Yardi's own estimate puts its investment in the property at around $100 million, with $5 million earmarked for the city's Local Housing Trust Fund and another $700,000 toward downtown parking. On the other end of the mall, a development group called DSP, a partnership of Dune, Shopoff Realty Investments, and Praelium, is converting the vacant Nordstrom into somewhere between 80 and 112 rental apartments, cutting a courtyard into the roofline for daylight, with 10 percent of units set aside for moderate-income renters.
The redevelopment plans are moving forward. Formal land-use applications are expected this summer and fall, with construction targeted for 2027. The buildings had been vacant for years, and the proposals would give them new uses.
The McHurley Film Center Opens Downtown
A block up from Paseo Nuevo, the Santa Barbara International Film Festival made its own bet on downtown, and it made it well before this year's council votes. The former Fiesta 5 multiplex at 916 State Street, which had gone through a bankruptcy filing in 2024, is now SBIFF's McHurley Film Center: five screens, roughly 900 seats, new projection and sound, and a rotating art gallery in the lobby. The renovation ran somewhere between $20 and $21 million, funded through a private capital campaign, and it wrapped just days before the festival's 41st edition opened February 4.
The scale of what that building is now doing matters more than the ribbon cutting. SBIFF is expanding its annual programming from roughly 1,000 screenings a year to more than 6,000, using the Film Center for daily independent, foreign, and documentary titles while still renting the 2,000-seat Arlington for big premieres and the 350-seat Riviera for mid-sized events. The Film Center's expanded schedule adds year-round programming downtown alongside the annual festival.
Recent Openings on Lower State Street
Lower State Street's dining scene has turned over fast enough this year that it's worth just laying out the timeline, because the pace tells its own story:
- October 2025: Manifattura opened on lower State Street, a compact Italian spot from the Aperitivo team focused on hand-made pasta.
- November 2025: Bistro Amasa opened inside the Upham Hotel, Southern California's oldest continuously operating hotel, pairing Central Coast ingredients with a hotel-anchored dining room.
- March 2026: Beau, a 1920s-inspired bar, opened in the former Crush Bar and Armada Wine space on State Street.
- June 2026: Sandbar Cocina y Tequila reopened at 514 State Street after a seven-month renovation, the first full reimagining of the space since the Baja Sharkeez Restaurant Group bought the property in 2007. The redesign leans into Riviera Maya and Caribbean coastal influences, with an expanded indoor-outdoor footprint and a retractable roof.
- Spring 2026: Aegean brought modern Mediterranean cooking to De la Guerra Plaza, and Silvergreens, the health-focused café chain that started in Isla Vista back in 1995, reopened at 1001 State Street in partnership with Amazon after a soft launch for Amazon employees.
Together, these dates offer a snapshot of the changing dining scene on Lower State Street.
What Actually Changes for You This Summer
Here's the practical version, for anyone walking State Street on a Saturday morning rather than reading council minutes. The promenade itself isn't going anywhere in the near term. Bollards that block cars from Haley to Victoria Streets are staying in place, retracting only for emergency vehicles, and Title 31's extension means that basic street layout is settled for years, not months. The Saturday certified farmers market, which moved in 2024 to the 900 to 1000 blocks of State Street and the blocks of Carrillo between Chapala and Anacapa, still runs 8 a.m. to 1 p.m. with the same mix of local growers and prepared food vendors.
What's genuinely new is what's opening around that fixed layout. If you haven't walked past the old Fiesta 5 building lately, the marquee alone is worth a look, and the Film Center's year-round schedule means there's now a reason to check its listings even outside festival season. If you've been avoiding Paseo Nuevo because half of it felt abandoned, that's about to change on a multi-year timeline, not overnight, but the direction is now set by signed agreements rather than speculation. And if Sandbar was your spot before it closed for renovation, it's worth a return visit for the retractable roof alone.
Downtown's changes this year include a council decision on the promenade and projects involving a software company, a film nonprofit, and restaurant operators. The council vote kept the street's basic layout in place; those projects are unfolding alongside it.
If you've watched this stretch of downtown change over the years and find yourself thinking about what comes next for your own home or your own next chapter, that's exactly the kind of conversation Terri Dimond has built a practice around. Attend a free senior seminar to talk through what a changing Santa Barbara means for your own plans, on your own timeline.
