From rubble to retail.

One of Santa Barbara’s most visually unappealing sites is about to get a transformation.

Developers plan to build restaurants and retail shops at the corner of Garden and East Yanonali streets in the Funk Zone.

The site is currently used for storage of stone and landscaping materials.

“It is a very special site,” said Joseph Miller, one of the owners. “Our company is really dedicated to the promotion of independent retail and restaurants.”

Miller and David Fishbein are the principals of the Runyon Group, which has developed retail projects in Los Angeles, and most recently, the Post on Cabrillo Boulevard near Montecito.

They purchased the Yanonali site in 2020. A previous proposal to build commercial retail was approved in 2019, but approvals expired in 2022.

The new development includes two two-story buildings with general retail, a gym, and fast-casual and fine-dining restaurants.

“It’s about finding local business, local restaurants mixing them with regional independence, and creating a special atmosphere which is what we are attempting to do here,” Miller said.

The city Planning Commission voted 4-0 on Thursday to approve a development plan, a coastal development permit and a front and interior setback modification.

Commission members Lucille Boss, Brian Barnwell and Benjamin Peterson were absent from the meeting.

Although commission members and activists in the community have pushed for more housing, the site is not eligible for housing because it is part of the Cabrillo Plaza Specific Plan.

The project, designed by architect Brian Cearnal, includes a habitat restoration plan to restore, enhance, and preserve the portion of Laguna Channel that runs along the eastern boundary.

Commission chair Devon Wardlow supported the project, but asked if the developers could include features for children. She said the Funk Zone has a good a bar scene, but kid-friendly options are slim.

“We don’t have that many areas where families can go and have their kids there,” Wardlow said. “Maybe you could break up one of the buildings and put a little a little gated area for kids to hang out.”

She added: “If you can think about ways to ensure this could be a kid-friendly environment, that would be great because I think that is just something I think we are missing in the Funk Zone.”

Commissioner Lesley Wiscomb requested that the development include more art studios.

“I think that will be a really exciting transition into the Funk Zone, where it is more artsy, Wiscomb said.

Commissioner Don DeLuccio said he supported the project for multiple reasons, including the creek restoration.

“We do need housing, but we also need sales-tax revenue, and this project will bring sales-tax revenues for the city,” DeLuccio said. “I think this is a really big benefit to our community.”