Santa Barbara Council Upholds Plans for Second-Largest Hotel in City

In a 5-2 vote, Santa Barbara City Council chose to deny three separate appeals of the much-contested 250-room Garden Street hotel, upholding the planning commission’s approval of what will become the second-largest hotel in the city.

The decision came after intense debate over environmental concerns, impacts on the Funk Zone neighborhood, and whether the city needed another hotel in the midst of a housing crisis.

The hotel, part of a 40-year plan by original owner Bill Wright to redevelop six parcels along Garden and Yanonali streets about a block from the beach, was met with resistance almost every step of the way since Wright’s family hired Newport Beach–based Dauntless Development to guide the project through city review.

When the project hit a wall with the planning commission in 2023, developers were told to return with a better plan on how to mitigate the impacts on the city’s housing stock. Then in May 2024, after much debate and with the project facing a wave of community backlash, the planning commission granted 4-2 approval of the updated plans, which included six affordable housing units and the developer’s promise of a $500,000 donation to the city’s Local Housing Trust Fund.

Three separate appeals were filed to contest the planning commission’s approval, raising concerns over environmental impacts, the plans for a 238-space underground parking garage, and the fact that the project was part of a deal signed back in 1983. In October, City Council heard all three appeals, listened to staff recommendations, and a lengthy public comment period before closing the hearing and continuing to November 19.

Tuesday’s hearing got off to a rocky start, since community members were unable to submit any form of public comment, written or otherwise. The city attorney and council had agreed not to receive any more testimony before deliberating on a final decision.

Attorney Marc Chytilo, who represents appellants Keep the Funk S.B., attempted to speak during the general public comment about the “deprivation of due process,” but his comments were cut short and he was told he could not specifically reference the project itself.

When deliberations began, Councilmember Kristen Sneddon was the most vocal about the risks that could come from approving a project based on a plan that was signed according to 1983 environmental standards.

“Just to take us back in time to 1983,” she said, “that was a time when it was still cool to break open your thermometer and play with the mercury.”

Her major concern was over soil and contaminants that could be lurking underneath the project, which would only come to light after the developers began digging for the underground parking lot.

“For a project this size on our delicate waterfront area,” she said. “I don’t see how in good conscience we can rely on the early ’80s for these findings on environmental impacts.”

Sneddon and Councilmember Oscar Gutierrez both supported a motion that would have required an updated environmental impact report, but it was voted down by the five remaining councilmembers.

Councilmember Eric Friedman said it was a tough decision, but even if the project were to come back as housing, he argued, the developers could take advantage of state laws and build up to 140 market-rate apartments with only seven affordable units.

Councilmember Meagan Harmon also said she was conflicted, and while her heart was with the community members, in her head she knew that it was crucial for the city to keep its word on development deals.

The 5-2 decision upheld the previous approval, granting an exemption from any further environmental review. As part of the conditional approval, Dauntless Development agreed to double its contribution to the Local Housing Trust Fund to a total of $1 million.

Following the decision, appellant Keep the Funk S.B. responded on social media: “We’re disappointed in our representatives not addressing our concerns, but we are extremely grateful for this community and our continued support.”