Just a block from the ocean stands Tri-County Produce, a 50-year-old Santa Barbara institution given a new lease on life by Wendy and Eric Schmidt, the former Google CEO. The couple and their family foundation bought the property when owner Jim Dixon was ready to close the doors in 2025. Now the location of a four-story apartment proposal, the project went before the city’s Architectural Board of Review on May 26 — the fifth and final public hearing for the project per Senate Bill 330 — for a unanimous vote to proceed.
The new project partners stepped into the design phase, said architect Brian Cearnal, with strong feeling about the city’s lack of three-bedroom apartments. The design for 335 South Milpas will now hold 45 units, down from the 53 units proposed in 2024, with 14 of them three-bedroom apartments. Among all the units, three are for very low-income tenants, with one unit for tenants of moderate income. None will be let as vacation rentals, a k a short-term rentals.
The fourth-floor rooftop on the residential lot, to the east of the open-air market, will feature a view down Milpas Street to the ocean, barbecue facilities, tables and chairs, a fireplace, and several trellises for shade. Parking is on the ground floor — 47 spaces.
The market, which is now run by father and son Jaime and Mito Desales, will mark off a total of 45 parking spaces, with the loading doors on the lot and Calle Puerto Vallarta. Construction should begin in 2027, said project partner Austin Herlihy, and will be finished within two years.
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