Developer Rick Caruso, left, and Miramar representative Bryce Ross.
Developer Rick Caruso, left, and Miramar representative Bryce Ross were criticized Tuesday for their development project at the Rosewood Miramar. Credit: Joshua Molina / Noozhawk photo

The Rosewood Miramar Beach hotel has reached a deal with the All Saints by-the-Sea church over its new housing and retail project in Montecito.

The Miramar has reduced the size of the housing on the corner of Eucalyptus Lane and Jameson Lane to primarily one story, with a second story set back from the church, preserving the views of the mountains.

The single- and two-story buildings will be separated with landscaping.

“We are grateful for the time and effort of the (Rick) Caruso team to listen to our interests and work continuously to find a mutually acceptable accommodation that meets our needs as well as theirs,” said Rev. Channing Smith, the All Saints Rector in a joint statement. “A positive relationship built on trust and mutually understanding is critical for both of us.”

Caruso added: “I appreciate the work of Rev. Smith and the parish leadership in reaching this solution. It is important to me personally and the entire Caruso team that we build on the constructive and positive relationship developed over the past two decades.”

The compromise includes the Caruso team building new stained-glass windows for the church with mountain views. Once the project is built, the current columbarium windows will look out at the two-story project.

Caruso wants to build 26 affordable-housing units and eight market-rate units at the five-star luxury hotel at 1555 S. Jameson Lane in Montecito. He also wants to add about 17,500 square feet of high-end boutique retail shops, where a pair of jeans might sell for $1,000 and a handbag for $2,500.

The project has sparked much controversy in the neighborhood. Several residents still oppose the project.

Neighborhood critics say the housing units are a public relations effort to mask the benefits of the new luxury retail shops. They worry the shops will bring new traffic from outside of the area.

The Santa Barbara County Planning Commission will review the project on Friday. The meeting starts at 9 a.m. at the Engineering Building, Room 17, at 123 East Anapamu St. in Santa Barbara.

The Montecito Planning Commission reviewed the project two weeks ago and was unable to take action. It did not have a quorum of members, following a last-minute recusal.

The Planning Commission previously reviewed the project at an Oct. 9 meeting.

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