{"id":17785,"date":"2026-06-25T16:03:28","date_gmt":"2026-06-25T16:03:28","guid":{"rendered":"https:\/\/siliconvalleymovingpost.com\/?p=17785"},"modified":"2026-06-25T16:03:28","modified_gmt":"2026-06-25T16:03:28","slug":"dana-point-harbor-developer-said-project-for-new-hotel-surf-lodge-is-dead-after-approval-delay","status":"publish","type":"post","link":"https:\/\/siliconvalleymovingpost.com\/?p=17785","title":{"rendered":"Dana Point Harbor developer said project for new hotel, surf lodge is \u2018dead\u2019 after approval delay"},"content":{"rendered":"
\n

The developer of two hotels planned at the Dana Point Harbor said Wednesday the project will not move forward after the O.C. Board of Supervisors this week pushed the vote on a new 66-year ground lease until next month at the earliest.<\/p>\n

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The county tapped Dana Point Harbor Partners in 2018 for a massive overhaul of the county-owned harbor, now costing the developers about $600 million, that promises a new marina, which is 70% complete, a new commercial area, which is under construction, and hotel space. The two proposed hotels have been approved by the city of Dana Point and the California Coastal Commission.<\/p>\n

On Tuesday, the developers went to the county to get new ground leases approved, which they said are key to getting the financing for the hotels and their construction underway in time to open for the 2028 Olympics, with the surfing competition planned in nearby Lower Trestles.<\/p>\n

The request also spun off a separate ground lease for the hotels and added 10 years to both leases.<\/p>\n

Fifth District Supervisor Katrina Foley asked her colleagues at Tuesday\u2019s meeting to add requirements related to the workers at the Marina Inn who would be out of work when it is replaced by the new hotels and controls on future rate increases for the marina slips. Some of the supervisors were receptive, but said they needed more time to consider the implications and the decision on the requested ground leases was put off to the next meeting.<\/p>\n

\u201cAs it stands today, the hotels will not get built,\u201d Bob Olson, the partner who has been designing and planning the luxury hotel and the surf lodge, said Wednesday. \u201cThe demands that were brought to the board kill any hope of going forward. We have stopped all work: architects, engineers and designers.\u201d<\/p>\n

The separate ground lease for the hotels would provide the necessary structure for Olson to secure financing, enabling the hotels to recover from pandemic- and permitting-related delays,\u00a0 and advance the county\u2019s long-planned renovation of the popular South Orange County harbor, O.C. Chief Real Estate Officer Thomas\u00a0 Miller said in a supplemental agenda report that was released late Friday, June 19, explaining what the supervisors would be considering on Tuesday.<\/p>\n

Key to the requests from Olson and his partners was a plan to have the renovation project completed in time for the Los Angeles Olympics. Approval by the board would also allow the partners to \u201cpreserve the agreements\u201d with Pacific Life, their current lender and \u201cmove forward with the hotels,\u201d said Joe Ueberroth, who is spearheading the marina portion.<\/p>\n

\n<\/div>\n

Olson said the delay in the supervisors\u2019 approval is preventing him from obtaining a loan for the hotels because the current financing for the harbor project does not include them.<\/p>\n

He said he was surprised by Foley\u2019s requests.<\/p>\n

\u201cFrom my perspective,\u201d Foley said Wednesday, \u201cit\u2019s to make sure the deal that gets done is in the best interest for the next 66 years for the community benefit. That is our role.\u201d<\/p>\n

Foley suggested that county staff work with the current hotelier to support employees affected by the pending closure of the Marina Inn and develop a transition and education plan.<\/p>\n

\n<\/div>\n

Her proposed changes also included a requirement for a labor peace agreement for future hotel operators at the harbor. The agreement between a hotel operator and a labor organization protects hotel operators from labor disruptions by prohibiting strikes, picketing, and boycotts. It does not require a hotel to be unionized, she said.<\/p>\n

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\u201cThere is no lender that would touch the hotels with these kinds of restrictions,\u201d Olson said, adding that he is already facing headwinds to finance the affordable surf lodge.<\/p>\n

The requirement for the labor peace agreement would be essentially agreeing to a union-run hotel, he said. And, he said retraining the current Marina Inn employees is \u201cridiculous\u201d because there are \u201cso many hospitality jobs in the area that our people will be hired immediately.\u201d<\/p>\n

But, Foley said, that Olson is being \u201coverly dramatic,\u201d that he has a \u201ccontractual obligation\u201d to build the two hotels.<\/p>\n

She also said that Olson and his team can continue to negotiate with county staff to get things dialed in before the supervisors meet and make their decision.<\/p>\n

\u201cHe can\u2019t just walk away,\u201d she said.<\/p>\n

It was not only her recommendations that fueled the board\u2019s decision to take longer to study the agreements, her colleagues also had their own considerations, Foley said.<\/p>\n

\u201cI didn\u2019t ask for anything from the dais that would cause any cost to the hotel,\u201d she said. \u201cMy request was because we didn\u2019t really have a plan in place for the people who were going to lose their jobs at the Marina Inn. The request was to direct our staff to work with the hotelier to ensure we connected people to transition for employment through our workforce development services. And, to make sure people weren\u2019t one day showing up to a job with no livelihood.\u201d<\/p>\n

Olson said the developers would be \u201cforced to remodel the Marina Inn so that we are in compliance with our lease.\u201d<\/p>\n

Foley argued efforts were made to get Olson to close the deal with the county\u2019s real estate division and put it on the agenda two weeks before the meeting, knowing how loaded the meeting agendas are. That way, she said, her colleagues \u201cwho aren\u2019t knee-deep on the topic\u201d could take time to consider such a significant item.<\/p>\n

Instead, she said she got a 600-page lease agreement that was filed on Friday because \u201cthey were haggling on terms.\u201d And more changes came the night before the supervisors\u2019 meeting, which she and her colleagues on the dais didn\u2019t have time to review thoroughly ahead of an already packed agenda.<\/p>\n

\u201cIt\u2019s not just me; there were three, even four people who expressed some concerns,\u201d she said. \u201cIt\u2019s not the end of the world. We have time over the summer. Let\u2019s get together and work it out. Let\u2019s make sure the deal is to the benefit of the community. They\u2019re getting all the terms they requested.\u201d<\/p>\n

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The OC Board of Supervisors pushed the vote on the new ground lease for the hotels to its next meeting. <\/p>\n","protected":false},"author":1,"featured_media":17784,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43,2],"tags":[],"class_list":["post-17785","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-based-on-facts-either-observed-and-verified-directly-by-the-reporter-or-reported-and-verified-from-knowledgeable-sources","category-news"],"yoast_head":"\nDana Point Harbor developer said project for new hotel, surf lodge is \u2018dead\u2019 after approval delay - Silicon Valley Moving Post<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/siliconvalleymovingpost.com\/?p=17785\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dana Point Harbor developer said project for new hotel, surf lodge is \u2018dead\u2019 after approval delay - 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