Agreeing to push forward with an annexation for a mixed-use development on land now in Orcutt, the Santa Maria City Council also directed staff to talk with Santa Barbara County regarding water, discussions unlikely to resolve the spat regarding Richards Ranch.

The council voted 4-1 Tuesday night on several matters that would send the Richards Ranch proposal to the Santa Barbara Local Agency Formation Commission. That panel will consider whether to move the Santa Maria city limits to include the 44 acres eyed for housing and businesses.

The action occurred although the Santa Barbara County Board of Supervisors sent a letter urging the city to delay any decision for 90 days.

Richards Ranch’s developer has proposed approximately 400 apartments, 100 townhomes and assorted businesses, including a specialty grocery store, a gas station, restaurants and more on land south and north of Union Valley Parkway, east of Highway 135. 

At the root of the dispute is water for the commercial development. Santa Maria’s long-standing policy prohibited selling excess water for commercial development in Orcutt, as the site’s prior longtime landowner, Walmart, discovered.

Lacking water for its superstore development, Walmart sold the land to Richards Ranch, which ultimately applied through the city to secure the needed water so the mixed-use project could get built.

Councilwoman Maribel Aguilera-Hernandez, saying it’s important to continue having talks with the county, asked whether the council could take a hybrid approach, suggesting proceeding with the annexation application while talking to the county in the next 25 days. 

“As Mark Twain said, ‘Whiskey is for drinking, water is for fighting,’ and we need to stop fighting,” Aguilera-Hernandez said.

Mayor Alice Patino said the LAFCO analysis would sort out various issues raised by some council members Tuesday night, adding that she supported the process continuing. 

“I personally don’t think you stop the process on any project if you’re going to be fair to the applicant,” Patino said.

Councilman Mike Cordero said many people have called Richards Ranch a great project.

“This applicant has been waiting for years, and I think we should move ahead with it,” Cordero said. “In fact, I’ll go so far as to say that if someone chooses not to vote for this project, it may be a dereliction of our fiduciary responsibility.”

Councilwoman Gloria Soto said she believed the city and county talks should continue but recognized the frustrations of all those involved.

“I am stuck on this one,” Soto said.

Councilman Carlos Escobedo cast the lone vote against the motion, later saying he didn’t oppose the development but sought a 90-day delay for talks with the county.

“I think that we should explore ways to find some common ground on something that can benefit both of us — the county and the residents of Santa Maria,” Escobedo said, referencing a Noozhawk story that referred to the looming decision as a showdown.

It’s not clear what the delay would resolve for the Richards Ranch development, but it could help mend relationships with the county for future issues related to water for commercial projects. 

Richards Ranch developer Michael Stoltey said he has spent approximately 1,000 days working with the city and underwent a 2½-year environmental review process for a project proposed on land with 27 years of dormancy. 

“We’ve developed a vision for a vibrant community that will benefit both Orcutt and Santa Maria for generations. We respectfully request our approval of annexation (application), General Plan amendment and rezone to bring this vision to life,” Stoltey said. 

Audience members spoke in favor and against the annexation application. 

“This applicant over the last four years has met the requirements put in front of them. I would argue they’ve gone above and beyond investing more than three years and over a million dollars, making sure the project meets not just the minimum standards but really the desires of the community for that area,” said Glenn Morris, a Santa Maria resident and former leader of the Santa Maria Valley Chamber of Commerce. 

“We need to keep Key Site 26 in the county where those of us who are directly impacted by this project have a say in how it develops,” said Cliff Solomon, who added that he lives a half-mile from the site. “We believe that the county is better equipped to address the unique needs and concerns of our community, especially when it comes to issues like infrastructure, traffic management and environmental protections.”

The discussion Tuesday involved lessons on the complex history of water in the Santa Maria Valley. The mayor recalled prior efforts of Santa Maria to acquire more water only to be stymied by the county. 

“When you say you want to sit down and talk to them, lotsa luck. We have done it,” Patino said. 

Months ago, the county board ignored Stoltey’s request and decided not to include the Richards Ranch land in the Housing Element rezoning process amid efforts to hash out a development agreement. However, the pact never materialized.

A critical point in the talks centered on the fact that county planning officials decided that if the land remained in Orcutt, then Richards Ranch would have to restart the environmental review and other parts of the process, which could add a four-year delay. The developer has balked at restarting the process after spending more than $1 million and years.

Stoltey has maintained for months that the infill site on Union Valley Parkway is best suited for housing while also providing businesses for residents, helping reduce traffic and emissions contributing to greenhouse gases.

The landowner’s one other option, likely less palatable to Orcutt, for developing Key Site 26 — approximately 750 apartments. He also submitted an application to the county under Builders Remedy, a state law granting concessions and exemptions to get affordable housing projects created.