The long-stalled development of the Orcutt Plaza shopping center took a step forward Tuesday.

In separate meetings, the Santa Barbara County Board of Supervisors and the Santa Maria City Council approved a property tax exchange agreement for about 60 acres of property near the corner of Santa Maria Way and Bradley Road.

According to the exchange terms, the city would receive 12.1 percent of the overall property tax generated on the land. Last year, the undeveloped property had an assessed value of $3.5 million and generated $367,487 in property taxes.

The exchange is the last procedure needed before an annexation application can be heard by the Local Agency Formation Commission, a state-created agency responsible for boundaries of governments within the county.

Santa Barbara County approved the shopping center years ago, but the developers ended up with no source of water. Santa Maria was willing to provide water only if the property was annexed to the city.

Adopting a tax-exchange resolution is usually routine, but this one prompted extended discussion by the Board of Supervisors - and strong objections from county Supervisor Janet Wolf of Goleta - before finally passing on a 3-1 vote with 3rd District Supervisor Brooks Firestone absent.

“I feel strongly this (annexation) is a mistake,” remarked Wolf, the lone dissenter. “In my opinion, this is something that does not positively impact the county,” noting the loss of sales tax potential and perhaps affordable housing credits needed for meeting state mandates.

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While voting for the resolution, Supervisor Joni Gray also voiced concerns.

“I'm starting to think this is land-use by sales tax,” she remarked, apparently referring to the city's willingness to annex the site in exchange for sales tax revenues that would be generated once a shopping center was built.

“There are just a lot of problems surrounding this issue,” Gray said, calling for assurances that traffic impacts would be adequately addressed under city control.

Supervisor Joe Centeno of Santa Maria responded, in a frustrated tone: “This item has been discussed, and discussed, and discussed. I don't see this as a big, cumbersome thing for us.

“The county will reap benefits from increased (property tax) assessments for that property,” he added.

The property in question includes a vacant five-acre lot along South College Drive on the city border, the Quail Meadows West development, the Quail Meadows Condominiums, a gas station and a 22-acre vacant lot at the corner of College Drive and Santa Maria Way. The 22-acre site has been eyed for a 225,000-square-foot retail center.

At the City Council meeting, four people spoke in opposition of the annexation, citing traffic concerns and the potential harm that a new suburban shopping center might do to the city's proposed downtown revitalization plan.

The council reminded people who oppose the annexation that their next opportunity to speak against the move is at the Local Agency Formation Commission meeting on Sept. 6.

Malia Spencer can be reached at 739-2219 or mspencer@santa

mariatimes.com. Chuck Schultz can be reached at

925-2691, Ext. 2241, or cschultz

@santamariatimes.com.

July 18, 2007