Caruso gets permit extensions for Miramar

Wolf confronts developer about intentions

By COLBY FRAZIER — March 17, 2010

During what was expected to be a routine request yesterday for an extension on the building permits for the Miramar Hotel, developer Rick Caruso was taken to task by 2nd District county Supervisor Janet Wolf, who questioned the sincerity of the billionaire’s request to put the brakes on project he once insisted he was eager to build.

Caruso requested, and was granted, a one-year extension on his coastal development permit, which envelops the bulk of his 192-room hotel. He also received a five-year extension on several conditional-use permits, which were issued for smaller, individual projects around the Montecito property.

In a statement he read to the Board of Supervisors, Caruso cited the deflated luxury hotel market as the reason for his request. He also noted a string of efforts his company has made to ensure the dilapidated seaside resort doesn’t become overrun with graffiti and other illegal activities.

Nevertheless, Wolf, the Board’s chair, who is up for re-election this year and was the only Board member to vote against approving Caruso’s project in 2008, came at the developer in a blunt fashion rarely seen at a Board meeting.

Armed with old newspaper stories that quoted Caruso’s ambitious will to rebuild the classic, blue tile roof resort, Wolf wondered what changed his mind.

Caruso rehashed the economic recession and the toll it’s taken on the hotel industry he’s venturing into. He was careful to note, however, that his fortunes weathered the storm.

He said it’s not so much his pocket book that’s aching for a buck, but rather the wallets of those who would patronize his luxury hotel.

Still, Wolf cited a newspaper story from as recent as April 2009, in which Caruso still seemed to be chomping at the bit to build.

Wolf also read from a recent story in the Los Angeles Times that notes Caruso’s interest in venturing into the airport restaurant and retail sectors.

“I don’t understand how it is that you can begin a new project, a new proposal, and then say in a paragraph that [because of] financial restraints, you can’t move forward with this project,” she said, adding later, “Do you really have the commitment to build this hotel when you have commitments elsewhere?”

Caruso answered sharply, saying he’s never been anything but committed to building the Miramar, and that no one is more frustrated than he is about the delay, and the dollars he’s spending maintaining a vacant lot. To date, he said he’s spent more than $20 million just on planning and maintenance.

“I don’t think we’ve broken any promises,” he said. “This isn’t about my financial capabilities. Our company is very sound. This is a function of the economy not supporting a luxury hotel.”

The permit delay is the latest twist in a decade worth of odd story lines surrounding the property at 1555 S. Jameson Lane. They read like a hopscotch game of who’s who in high-roller development projects, which began with New York hotelier Ian Schrager, who sold the property to Beanie Babies billionaire Ty Warner, who out of frustration with the county sold it to Caruso. Countless hours, attorneys and dollars spent at public meetings have filled the void in between owners.

Community members have long been concerned about vandals at the site, and Caruso said he’s taken several measures, including graffiti abatement, quarterly brush clearance and weekly walks along the fence line, to ensure that things are in order.

However, 1st District Supervisor Salud Carbajal, whose district includes the Miramar property, implored Caruso to pay a security guard to conduct a daily patrol. Without any discussion, Caruso agreed.

Carbajal said he toyed with asking Caruso to demolish the existing structures on the lot and clean up the area. However, he said county legal counsel said it would be difficult to compel Caruso to do anything. And if demolition occurred, it would likely trigger the permit, which once started, could be difficult to roll back.

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but yet they think wireless antennaes are blight? : 3/17/2010

as wolf also pointed out, just moments before the board denied an appeal by a cell antennae distribution system developer to install 27" wires with 36" boxes on EXISTING utility poles, just yards away from this dilapidated eyesore formerly known as the Miramar. WTF? Many of us in Montecito knew the moment he set foot in our village that Caruso never intended to actually BUILD the MIramar. Why would he? His business is "americana" shopping malls, and now airport malls. Anyone who thinks this entire debacle was not just a business scheme by Caruso to ultimately flip this property, complete with 5-yr extensions on permits [thanks, Salud et al] is naive.

tired of blight in our back yard

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flip? : 3/17/2010

Does anyone really think that the Miramar can be flipped for the amount spent on it?
Certainly the 5 year extension gives it more value but it will be at least a decade (probably more) before it would sell for the price he paid for it.
He would have been better off not going for the extension until after negotiating a short-sale with the mortgage holder.

citizen

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Miramar : 3/21/2010

Funny.. Wolfe does everything she can to make it difficult to build, then asks why it's not finished yet? He probably can't get financing for a hotel in todays lending environment and if he could , it probably wouldn't make sense because of the economy.

Master B

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They should put a park there instead : 3/22/2010

They should put a park there instead, it currently looks like a ghetto slum.

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