Mishay Salon Sues Santa Barbara Over Relocation Costs

The business owner is seeking over $1 million in additional funds following a city-led eminent domain seizure.

Updated on Oct. 24, 2026 in Openings & Closings

Mishay Salon Sues Santa Barbara Over Relocation Costs

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Should local governments be required to pay all costs for businesses forced to move for construction?

Mishay Salon filed a lawsuit against the city of Santa Barbara on August 28, 2026, requesting more than $1 million in additional relocation costs. The legal action follows the city's use of eminent domain to seize property for the De La Vina Bridge Replacement Project.

Why it matters

The lawsuit centers on a dispute over mandatory code upgrades, with the salon owner alleging the city violated the Uniform Relocation Act by refusing to finance necessary renovations. The city maintains that it does not fund business expansions or property upgrades during the relocation process.

The city previously provided $900,700 in an eminent domain settlement, including $725,000 for business goodwill and $175,680 for equipment. However, the city administrator reduced subsequent reimbursement claims by 42 percent due to the size increase from the original 4,000-square-foot space to the new 7,500-square-foot facility.

The players

Mishay Salon

A business that operated on De La Vina Street before being displaced by a bridge replacement project.

Santa Barbara Superior Court

The judicial body currently overseeing the legal dispute between the local business and the city.

The details

The owner moved the business from De La Vina Street to a new building on Santa Barbara Street, completing renovations in late 2024. The lawsuit argues that these upgrades were required by law, whereas the city limited reimbursement based on the physical square footage difference between the two properties.

2021: Attorney began representing the salon owner.
2022: Owner began searching for a new salon location.
2023: Owner purchased the Santa Barbara Street building.
Late 2024: Renovations of the new building were finished.
August 28, 2026: The salon filed the lawsuit in Santa Barbara Superior Court.

Market Landscape

This litigation highlights the recurring tension between local infrastructure development and the rights of business owners under the Uniform Relocation Act. As cities modernize aging infrastructure, disputes over what constitutes eligible relocation expenses often force businesses to seek judicial intervention to cover costs beyond basic moving fees.

This case underscores the financial risks for local business owners whose properties are subject to public infrastructure projects. While the city has already provided significant settlements, the outcome of this litigation could clarify the extent to which taxpayers are liable for building improvements required by modern safety codes during forced relocations.

The takeaway

Business owners facing displacement through eminent domain should meticulously document all code-mandated renovation requirements before starting construction. Understanding the specific limits of government reimbursement policies is essential for managing capital expenditures during a relocation.