OC supervisors have yet to reach an agreement on land leases for new hotels at Dana Point Harbor.
The future of a boutique-style hotel and surf lodge within the ambitious 0 million rejuvenation project at Dana Point Harbor hangs in the balance as the Orange County Board of Supervisors remains deadlocked over essential lease agreements. The proposed development, intended to serve as a central piece of the harbor’s revitalization efforts, requires the approval of two new 66-year land leases to help secure necessary financing from developers.
The ongoing frustrations were palpable during the most recent board meeting, where stakeholders expressed disappointment over the lack of consensus among supervisors. Bob Olson, a principal in Dana Point Harbor Partners and head of R.D. Olson, voiced concern, stating that the inability to separate the ground leases from his partners could force a re-evaluation of the project. This proposal aligns with similar efforts made by Joe Ueberroth of Bellwether Financial Group and Bryon Ward of Burnham-Ward Properties, who are advancing related components of the redevelopment.
Olson conveyed his dismay at the board’s refusal to endorse what he described as a significant investment opportunity for both Dana Point Harbor and Orange County at large. He highlighted that without the bifurcation of the leases, plans to modernize the aging Marina Inn may become the only viable route forward.
Efforts to advance the project faced resistance, primarily from a minority of supervisors, with Fifth District Supervisor Katrina Foley advocating for lease bifurcation. Foley emphasized that opting for a renovation of the existing inn could jeopardize the prospects of introducing the new hotels to the harbor. Despite her appeal, the vote was narrowly split, with only Foley and Second District Supervisor Vicente Sarmiento supporting the new lease agreements. Other supervisors raised questions about the protections for displaced workers and a need for enhanced social justice programs.
As the board deliberated, past discussions regarding the new leases revealed a pressing need for clarity surrounding the proposed adjustments in light of mounting dissatisfaction amongst supervisors. In 2018, the county entered into a public-private partnership with Dana Point Harbor Partners under a 60-year lease for the harbor’s overhaul. The absence of the new land leases impedes Olson’s ability to obtain financing, leaving the potential for a renovated Marina Inn as the only fallback.
Olson’s proposals include creating approximately 200 new jobs and generating considerable revenue for the county, totaling million in ground rent during the first decade and exceeding million over the lease’s lifetime. He added that these projections highlight the enhanced economic benefits of the hotels compared to merely renovating the existing establishment.
While the current stalemate continues, Olson plans to consult with Mat Miller, the county’s chief real estate officer, to determine the best steps forward. The board’s reluctance to approve the leases not only risks delaying construction but also threatens to sideline the possibility of unveiling the new hotels ahead of the LA 2028 Olympics, which are expected to attract significant international attention given the surfing events to be held at nearby Lower Trestles. As the situation develops, stakeholders remain hopeful for a resolution that balances community interests with the economic potential this project represents for Dana Point and Orange County as a whole.
