The Goleta City Council rejected a proposal earlier this month to change the land use designation of the former Ellwood Onshore Facility, which would have paved the way for a glamping campsite.

The City Council voted unanimously not to initiate a change in the land use designation for 7979 Hollister Ave., from open space-active recreation to visitor-serving commercial following a proposal from the site owner.

“My fear is that there seems to be a lot of risk here that I, as a council member, as your mayor, I am not willing to take right now,” Mayor Paula Perotte said.

Changing the land designation would mean amending Goleta’s general plan.

Perotte added that an amendment would “be making decisions for future generations,” and she was not prepared to do that at the Sept. 1 City Council meeting. 

The City Council members considered other alternatives put forth by staff before making their decision, which elicited some applause from meeting attendees.

Michael Johnson of Bell Canyon Recreation LLC owns the former oil and gas facility near The Ritz-Carlton Bacara, Santa Barbara and the Sandpiper Golf Club. 

The project that Johnson proposes would bring beach-themed uses, expand Haskell Beach access with public parking and add multi-generational lodging to the community, according to J. Ritterbeck, who represented the applicant as an agent with True North Land Use Consulting.

“He wants to share the site with everybody, knowing that it’s a complicated, very rich, could potentially be a very rich jewel for the city if developed correctly,” Ritterbeck said.

The current designation — open space-active recreation — allows noncommercial uses, including parks, playgrounds, trails, community centers and food-related concessions. 

“OS-AR gets us close but not quite to the amenities that (the owner) wants to provide,” Ritterbeck said. 

The visitor services designation allows RV parks and resort and hotel-style uses, visitor services and attractions, and retail stores, among others, which is in line with Johnson’s vision for the site. 

The previous owner of the oil and gas facility, Venoco Trust, filed for bankruptcy and stopped operations at its local facilities in 2017. U.S. Bankruptcy Court gave Bell Canyon Recreation LLC ownership in 2024, according to the city staff report.

Questions swirled regarding cleanup of the site, which currently houses oil and gas processing facilities that have been cleaned and “are awaiting direction,” Ritterbeck said.

“Removing the oil infrastructure that is remaining is going to be a major project,” Councilwoman Jennifer Smith said. 

Among the questions surrounding the cleanup effort involve the cost and funding source.

Johnson told the City Council that a coastal development permit is needed to remove the equipment, but the permit requires the site to have a decided end use, which is what brought him before them on Sept. 1.

“We really want to put the last nail in the coffin of the last remnant of oil and gas within the city,” Ritterbeck said.

Depending on the decided end use, not all of the equipment would need to be taken out, he added.

Additionally, not changing the land designation still would see equipment removal but possibly not all of it, according to Ritterbeck.

Additionally, Goleta planning manager Lisa Prasse said site remediation would require multiple agencies and their input to evaluate.

Some community members and council members criticized the project’s proposed plans and claims.

A group of Goleta residents signed a letter in support of keeping the open space designation, claiming there is no community benefit, the site is near a sensitive habitat, bad timing and other proposed uses for the site. 

Resident Liam Young asked what the community actually gets from the proposal. 

“It is a high-end overnight lodging on the last undeveloped east of our coast, (and) we already have that right next door,” he said.  

Perotte also took issue with the project’s claim that it brings a community benefit with public parking for expanded beach access.

“You want parking lots there?” she asked. “I don’t look at that as a community benefit, to be honest with you.”

Councilman James Kyriaco said he would be “willing to be patient” with Goleta’s general plan’s goal for the site to become an open space.

“I can’t tell you that I have a really clear vision in mind of exactly how that’s going to happen and exactly when that’s going to happen, but I think it’s a vision worth waiting for,” he said. 

The City Council’s vote means Bell Canyon Recreation LLC will have to follow the site’s current land use designation for any proposed uses.