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A suspect is in custody for the Friday morning incident in the La Cumbre Plaza area.
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Prosecutors called the crime 'senseless' and 'tragic'.
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The 42nd edition of the festival will take place from February 3 to 23, 2027.
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The property owners claim the freeze is unconstitutional. The Santa Barbara City Council approved the temporary freeze to help struggling renters.
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There are no signs of foul play, but an autopsy is pending.
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The motive behind the attack is still unknown.
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No arrests reported in connection with the early morning attack.
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One person reported they had been pepper-sprayed by ICE agents. ICE left the scene as police tried to de-escalate the confrontation.
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The Santa Barbara MTD contract with Teamsters expires at midnight on Thursday.
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A street festival is set for Saturday, and a memorial service is planned for Sunday