Owner of Santa Barbara News-Press filed for bankruptcy. What will happen to properties?

When Santa Barbara News-Press parent company Ampersand Publishing LLC filed for bankruptcy and eliminated all jobs at the newspaper, the iconic downtown building and other associated properties were not listed as assets.

Ampersand Publishing LLC sold the Santa Barbara News-Press building, the parking lot across the street and its Goleta printing plant in 2014 to newly created limited liability companies formed by News-Press owner Wendy McCaw, according to public records.

The building and parking lots were sold to 715 Anacapa LLC, and the Goleta property was sold to 725 Kellogg LLC.

Ampersand Publishing LLC bankruptcy filings claim assets of less than $50,000, which left most of Santa Barbara wondering: What about the building?

McCaw purchased the 715 Anacapa St. property, next to Santa Barbara City Hall, the parking lot across the street at 718 Anacapa St. and the 725 S. Kellogg Ave. Goleta properties on Oct. 19, 2000, from The New York Times Co., the previous owner of the Santa Barbara News-Press.

Santa Barbara County Assessor’s Office records show that the Anacapa Street building has a 2023 assessed value of $15.2 million. Treasurer-Tax Collector records show the owner paid property taxes of $158,645.19 for the most recent tax year, with payments in December and April.

The parking lot property has a 2023 assessed net value of $3.17 million. The Goleta property at 725 S. Kellogg Ave. is assessed at $11.59 million.

According to public records, Ampersand Publishing LLC sold all three properties in 2014 to the newly created LLCs formed by McCaw.

California Secretary of State records show that the two LLCs created in 2014 have a principal address of 1301 Santa Barbara St., and filing documents list McCaw as manager, president or CEO. They have the same principal address as McCaw’s Ampersand Publishing LLC, 1998 Ampersand Holdings LLC and the Wendy P. McCaw private foundation.

Yolanda Apodaca, a longtime Santa Barbara News-Press employee and current director of operations, is listed as the agent on Ampersand Publishing LLC documents filed in 2022.

With the bankruptcy filing and end of newspaper operations, it is unclear what happens to the properties now. There has been no indication that they are for sale.

As of Tuesday, the parking lots at both Anacapa Street properties were being used as pay-to-park locations.

How could downtown Santa Barbara building be used?

Santa Barbara Mayor Randy Rowse told Noozhawk on Tuesday that an empty building of that magnitude downtown is a “travesty.”

“It is just a civic tragedy to have that 72,000-square-foot building going vacant,” Rowse said.

He said he would love for the property to be integral in helping to bring more vibrancy downtown.

“If we could somehow, we the city, could leverage that asset and do something there, and make it a civic center, it would be fabulous,” Rowse said. “What you would like to have there is something active, with people living and spending money downtown.”

He said if that building became available, the city should jump on the opportunity.

“It is a great old building,” Rowse said. “What a great location.”

Noozhawk spoke with a commercial real estate professional on Tuesday who said there are many possibilities for the building.

The building could be valued at between $40 million and $50 million, they said.

A team, including architects, would need to get inside to assess the building and see how much work needs to be done, and evaluate possibilities.

“It is hard to put a number on it,” the real estate professional said. “It is a tough animal.”

The source said that location could be a great site for a hotel, which would bring people downtown.

“I want something good to happen here,” they said. “If that turns into a hotel, that is a great thing for our downtown.”

News-Press newspaper stops publishing

In October, the Santa Barbara News-Press stopped home delivery of the newspaper and moved to same-day mail six days a week.

The Santa Barbara News-Press building at 715 Anacapa St. was vacated on May 1 when management moved the remaining employees to its Goleta printing press site.

On June 21, managing editor Dave Mason informed readers — via website virtual edition — that there were “power issues” with the printing press and the paper was temporarily digital only. Other outlets using that press, such as the Ojai Valley News, had to find other printers in a hurry.

The newspress.com website’s large message in red font recently changed to say the move to online-only was permanent. Then, on July 21, the company declared bankruptcy and stopped publishing.

Noozhawk staff writer Joshua Molina can be reached at jmolina@noozhawk.com . Noozhawk managing editor Giana Magnoli can be reached at gmagnoli@noozhawk.com .