A proposed development that has raised the ire of Orcutt residents continues to push forward on paths deemed less desirable but likely leading toward the finish line.

Michael Stoltey of MD3 Investments proposed Richards Ranch for a nearly-44-acre property filled with eucalyptus trees along Union Valley Parkway east of Highway 135. Under the Orcutt Community Plan adopted in 1997 to spell out future growth, the land is known as Key Site 26.

Santa Barbara County Fourth District Supervisor Bob Nelson recently met with constituents about the project referring to multiple paths forward, adding that he hopes to negotiate a development agreement and keep the project in the county.

That would be a third path for the project. The developer has applied for the site to be annexed into the city of Santa Maria and has submitted a builder’s remedy application, which would allow bypassing local regulations. Richards Ranch hasn’t submitted an application to the county.

“Is the county offering any incentives to the developer to go with the county as opposed to the other two options?” a woman asked. “In other words, why would the developer want to pursue the county as opposed to going in the city or builder’s remedy?”

“To be honest, they’re going down three paths at the same time,” Nelson replied, “and whatever one gets them there first, they’re probably going to go with.”

A representative for Stoltey said the developer remains dedicated to delivering the best project for the community.

“Currently, annexation into Santa Maria offers the clearest path forward. We remain engaged in productive discussions with the county, though challenges regarding project timeline, water solutions and maintaining the project’s core vision still need to be addressed,” the representative said. “Whichever path proves viable, the Richards Ranch team is excited to offer a beautiful mixed-use project providing a much-needed neighborhood center and housing options.”

Meanwhile, the city set a Santa Maria Planning Commission study session for 1:30 p.m. Thursday to review the annexation proposal and other matters for the Richards Ranch development.

The study session is set to be held in Shepard Hall in the library, 421 S. McClelland St., but planning commissioners won’t take action and instead will provide feedback.

Nelson Seeks Development Agreement

Approximately 50 people attended Nelson’s meeting June 24 at the Luis OASIS Senior Center in Old Town Orcutt. A representative for the developer attended the meeting but didn’t speak.

However, while Nelson refers to the project moving forward on three paths, an application for the Richards Ranch mixed-use project hasn’t formally been submitted to the county.

Nelson said he wanted input from the community before sitting down with the developer to hash out terms of an agreement that would spell out amenities and other aspects to make it more acceptable to the community.

Any development agreement would need approval of the Santa Barbara County Planning Commission and the Board of Supervisors, providing the public a chance to comment at both meetings, Nelson said. 

“That’s just for an agreement on how we proceed on this project,” Nelson said. “It’s not a rezone yet. It’s not all the other things. It’s just these are the steps that we’re going through. 

“But I want to make sure when I’m sitting down and start to negotiate that on a high level that I’ve heard some of the things you have said today, so I make sure I’ve got that in mind as I have that conversation.”

Residents raised various concerns, including traffic impacts, recreation, bike lanes, Union Valley Parkway widening, and the effects on nearby neighborhoods.

Lengthy Route to Richards Ranch

Walmart once owned Key Site 26 after acquiring the land from the Richards family in the early 2000s, but sold it after failing to secure water.

Various versions of Richards Ranch propose building apartments and townhomes. A couple include a commercial area with a special grocery store, a day care facility, a gas station, drive-through restaurants and a mini-storage facility. 

The final version will depend on the ending of what’s become a political battle centered on water. 

To get the water needed, the developer submitted an application to the City of Santa Maria that would require annexation of the land.

The developer has a letter stating that Santa Maria will provide water, but the proposal to include the site in the city limits has drawn strong opposition from Orcutt residents.

The proposal submitted to the city envisions 100 townhomes, 400 apartments, 106,800 square feet for commercial uses, and a mini-storage encompassing 39,500 square feet.

In the spring, Stoltey pressed hard for the land to be included in the county’s rezoning process for the Housing Element update, contending that the infill site best met the housing goal. 

However, Nelson said he stopped Key Site 26 from being included in the process, choosing instead to pursue a development agreement that would involve negotiating with the applicant to get what the county supervisor believes would be the best project for Orcutt.

The tug of war has left one other less palatable option. The applicant also submitted a builder’s remedy project to Santa Barbara County, proposing 750 units and taking advantage of a state law that removes many of the local reviews and approvals.

Along with limiting local say, the builder’s remedy process grants developers concessions such as increased density, taller buildings or fewer parking spaces for including affordable housing.

The Road Ahead

Nelson said he doesn’t believe the development agreement would mean restarting the process, adding that he hopes to expedite it.

Annexing the site into the city means the unincorporated community would lose control, Nelson said.

“This is the part that bothers me as someone who’s kind of a government nerd. The people around it would have no say,” he said, adding that it could disenfranchise neighbors.

At the June meeting, one man urged his neighbors to work with the developer so they still have a say in the project that moves forward. 

“I think it’s very important everybody here let the City of Santa Maria know that they’re very against them annexing our property,” the man said.

Any commercial development would add to sales tax proceeds for either the city or county, providing a financial incentive for whichever government agency serves the final project.

During the meeting, City Councilman Mike Cordero said he supported the development, whether it ends up in the city or county.

“I think it’s a great project and should be materialized as soon as possible,” Cordero said. “It’s been on the books for years.

“I think the biggest problem for you folks out here is where are you going to get the water?”

Nelson said, “The question is, is the city ready to give us water?”

Cordero said it would be a hard sell about handing over water since Santa Maria residents have paid for the State Water Project coastal branch for three decades while the county opted out years ago.

Nelson said one of the owners claimed that keeping the project in the county remained “our No. 1 pathway.” He did not identify who made the statement. 

“As soon as we get a development agreement in place, he has offered to pause the annexation request and the builder’s remedy project,” Nelson said. “That would be part of the agreement, and they would be nonstarters without that.”