A $40 million deal to sell more than 40% of Montecito’s State Water Project rights to a massive North County housing proposal passed a big test Tuesday. In a 5-0 vote, directors of the Montecito Water District approved a non-binding letter of intent in support of the transaction, paving the way for a Spring 2027 purchase agreement with developers of Solomon Hills, 4,000 homes planned between Orcutt and Los Alamos. … The approval came over objections and concerns raised by residents who recalled tight years of water rationing. Some in the room questioned whether relinquishing 1,400 acre feet, or 42.4%, of the district’s annual State Water interests might weaken its ability to deliver. More specifically, they questioned whether the district’s increased reliance on desalinated water from Santa Barbara in recent years might become a big liability.

Related:

• The Montecito Journal (Calif.): MWD considers sale of partial state water contract interests