Johnson, senior assistant to City Administrator Paul Casey, said the City of Santa Barbara owns the Macy property via the since dismantled Redevelopment Agency, with three retail ground leases for Macy Nordstrom and Paseo Nuevo in place since 1990. Those leases expire in 2065, and there is no annual lease revenue to the city, she said.Earlier this year, Pacific Retail Partners, the managing entity of Paseo Nuevo, acquired the remaining leasehold interest of the former Macy building. In terms of reuse of the building, the lease requires that a minimum of 40,000 square feet of the 135,000 square foot building be operated as retail use.As with any commercial property, the city has a role in a redesign proposal that would significantly modify the exterior of the building, Johnson pointed out..
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