Dana Point Harbor Redevelopment Halted Over Hotel Workers’ Fate
TL/DR –
The redevelopment plan for the Marina Inn at Dana Point Harbor, California has faced significant delays, largely due to concerns about the fate of the hotel’s workers. The plan, which is expected to generate billions of dollars for the county and the developer consortium as well as millions annually in hotel taxes for the city, was pushed back when County Supervisor Katrina Foley raised concerns about worker retention in June. Foley reversed her stance in August, calling for the plan to be approved “as-is,” a move that led to further delays and additional questions about the proposed lease changes.
Developer-Consortium’s Marina Inn Redevelopment Plan Faces Delays
Two dozens of hotel workers’ fate at Dana Point Harbor’s Marina Inn is affecting a beneficial redevelopment project to revamp the area. The developer consortium is set to earn around $25 billion from this renovation, and the county is expected to make near $2 billion. Additionally, this will direct millions annually in hotel taxes to the City of Dana Point.
[Read: OC Supervisors and Developer at Odds over Dana Point Harbor Remodel]
This agreement is delayed due to several issues. Developers claim such delays have already cost the project the ability to host the 2028 Olympics at nearby events. The agreement is under review by the Orange County Supervisors once again.
Fate of Hotel Workers Triggers Delays in Agreement
Supervisor Katrina Foley’s concerns over hotel worker retention stirred additional concerns, triggering further delays. She later asked other supervisors to approve the deal as-is.
Harbor Redevelopment Raises Concerns Among Residents
The new leases update a 2018 agreement that aimed to speed up the construction of two new hotels in the harbor. However, locals are worried about the commercialization of the harbor area. The harbor is known for free parking, reasonable boat slip rates, and a localized commercial environment.
Harbor Redevelopment Project Faces Challenges Since 1997
The harbor’s revitalization has been debated since 1997 and has been tied up in environmental assessments and regulatory approvals for years. This project has also raised questions about the impacts on local community programs and users.
Supervisor Foley held a community meeting last week to inform residents, who remain uncertain about how developers might alter community access to the harbor.
Harbor Issue Illustrates Foley’s Difficulties Working with Colleagues
The controversy has now become entangled in a re-election campaign for a Fifth District county supervisor seat. Incumbent Democratic Foley is running against challenger, Republican State Assemblywoman Diane Dixon, a former Newport Beach mayor.
Foley gained a narrow victory of 299 votes, or 0.17% lead, over Dixon in the June primary due to independent campaign advertising funded by public sector labor unions.
Although the hotel workers union did not financially support Foley, she publicly defended local hotel workers who may lose their jobs at Marina Inn due to the redevelopment plan.
Campaign finance disclosures show Bob Olson, President of R.D. Olson Development and a leader of Dana Point Harbor Partners, donated to Foley but withdrew most of his donation a week before the leases were discussed.
Foley opposed the deal at June’s meeting, but just two months later, she flipped her position, proposing the initial leases be approved without delay despite union leaders’ surprise.
Earlier in June, Foley had sought written assurances from the developer, guaranteeing jobs for about 20 current workers at the new hotels.
However, once again, Foley couldn’t get her peers to support her motion, losing a 4-1 vote to approve the developer’s leases as proposed with no changes.
Supervisors also overlooked local boat owners’ concerns about increasing rents to park boats under the new partnership with the developer.
[Read: Supervisors Punt Again on Dana Point Harbor Renovation Deal, Leaving Hotels in Limbo]
Hotel union leaders felt betrayed by Foley’s reversal, but Supervisor’s Chairman Doug Chaffee publicly expressed his support for the harbor redevelopment agreement, emphasizing the need for more protection for hotel workers.
Meanwhile, Dixon’s campaign supporters quickly capitalized on Foley’s failure to get her colleagues to back a project in her district, referring to it as a “stunning rebuke”.
This incident is just one of the many challenges Foley has faced in her re-election bid, including criticism from colleagues and activists for her handling of various county issues.
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