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Yahoo!“Okay, let’s go have a cocktail.”
That’s what a frustrated Rick Caruso exclaimed after talking to media and supporters —some of whom were in tears — following another marathon session for his Miramar project in front of the Montecito Planning Commission (MPC). His words echoed the sentiment of most who spent 12 hours in the stuffy and hot County Planning Commission board room Wednesday. But Caruso probably needs that drink more than most, as his project was essentially shut down by the commission.
And rather than go back to the drawing board to initiate all the changes requested and recommended by the board, Caruso indicated he will more than likely sell the land he bought just 19 months ago — a move that would mean three owners in 10 years have been unable to revive the historic Miramar Hotel. Caruso said that after the night’s events, there was only a “very small chance” he was going to stick around to develop the project. “You’ve got me stuck,” he told the MPC boardmembers after they decided a denial of the project would be inappropriate and that they would continue the project to a future date. “I have my own financial concerns. Let someone else figure something else out for the property.”
Paul Wellman
Montecito Planning Commission
While there is evidence suggesting county staff has been pressed to expedite this project, no one can accuse the MPC of hustling with it. Their July 16 meeting lasted ten-and-a-half hours, and today’s meeting lasted from 9 a.m. to 9 p.m., including a 45-minute lunch break. This meeting lacked the glitz and glam and promotional movies, buttons, breakfast, and lunch that Caruso brought with him last time, but the drama from behind the dais this time provided the entertainment.
After coming up with a list of roughly a dozen changes the board agreed Caruso implement into his plan before he could go forward with his vision of the Miramar, the commission moved on to CEQA (California Environmental Quality Act) issues—the meat of the opposition to the project. While discussion centered on whether an addendum should be made in the areas of traffic and parking, the biggest issue for the board was water supply. They indicated — in a 4-1 vote with chair Bob Bierig dissenting — they’d like to see a SEIR (Supplemental Environmental Impact Report) done on the issue, which Caruso argued had already been solved by the Montecito Water District (MWD) earlier in the day. In fact, MWD director Tom Mosby had told the commission that Caruso’s project would receive 45 acre-feet per year, and anything used above that number would be charged at a higher rate. County Counsel Mike Ghizzoni suggested an SEIR would give the county better legal standing should the county be sued.
There also was discussion about whether the current infrastructure could handle the Fire District’s needs should there be a fire on the property. But there are five existing fire hydrants in and around the property, pointed out project manager Matt Middlebrook, who also said, along with Mosby, that testing had been done to ensure there was enough water pressure for firefighting. While 1,500 gallons per minute are needed to fight a fire, the hydrants tested produced between 1,500 and 3,000 gallons of water every minute, far more than enough, Middlebrook said.
“This project is more Monticello than Montecito. I think it needs to look smaller somehow. I’d like to see something else.” — Commissioner Michael Phillips
Paul Wellman
Developer Rick Caruso (left) and his team lined the front row at Wednesday's Montecito Planning Commission, only to be told their project wasn't going to cut it
Caruso, who made several changes between the two MPC hearing dates, was planning a 204-room hotel with restaurants fit for 258 seats and a beach and tennis club with 300 members. Among the changes was the elimination of the second floor of the spa room. Caruso indicated the height of the building will be reduced by 11 feet, reducing the mass of the building as seen from South Jameson Lane. But, at the end of the day, his changes weren’t enough. “I feel pretty strongly about this,” Commissioner Michael Phillips said. “This project is more Monticello than Montecito. I think it needs to look smaller somehow. I’d like to see something else.”
Despite indicating at the previous meeting public comment would be closed, Bierig turned on the microphone so the public could be heard, and they gave an earful. While the first meeting saw large support for Caruso’s plan, this time around the tide was tilted in favor of those opposed to Caruso’s project.
Paul Wellman
Montecito Water District Director Tom Mosby assured the Montecito Planning Commission his district would be able to service the Miramar project, but the commission decided further review should be done.
Supporters of the project were ready to have the site cleaned up and eager to visit a five-star resort fit with a ballroom to host 600-person parties, a beachside restaurant, and 204 hotel rooms. “Get it going or get on with it,” said Montecito resident Vern Langdon. Caruso expanded the size of the bedrooms to bring them up to current day plush standards, leading to a larger square footage, but not a higher intensity of use. In fact, he argued, the number of rooms in his plans is actually fewer than that in Ian Schrager’s, the boutique hotelier from whom Caruso bought the property. One proponent told the commission the county could expect more than $3 million in real estate tax each year, along with a couple hundred thousand in sales tax and more than $1 million in hotel bed taxes if it was built. “It’s a beautiful project and an economic benefit to all of us,” said Montecito resident Richard Eiler.
Critics have likened the size of the main building, which had a height of 49 feet — 11 feet above the maximum allowed by the Montecito Community Plan — to that of the Goleta Home Depot store. But supporters said opponents were nit-picky and didn’t want anything built on the property. “They don’t know their mass from a hole in the ground,” said Miramar supporter Bob Hazard. Afterward, many were saying the commission was unfair to Caruso.
Here are some of the issues the Commission wanted to see resolved, which Caruso said made his project impossible:
1. Forego including the railroad parcel running through the property in the property’s floor area ratio, a computation used to keep project sizes down. “I’m trying to get the mass, bulk, and scale down,” Commissioner Claire Gottsdanker explained in her motion. Not including that parcel would’ve taken the plan out of compliance with the Montecito Community Plan, which dictates building procedure in the residential village.
2. Eliminate all two-story buildings sited in the setbacks along South Jameson. “I cannot find justification for them being in the setbacks,” Commissioner Jack Overall said.
3. Reduce the height of the main building — set at 49 feet — so it fit with the Montecito Community Plan, which has a height limit of 38 feet.
4. Build a sidewalk in between proposed diagonal parking and the Miramar wall along Jameson, to increase safety of pedestrians. Caruso had earlier agreed to this.
5. Eliminate the use of lights at the tennis courts. Caruso had earlier agreed to shut them off an hour earlier, at 9 p.m., apparently not sufficient for the commission majority.
Observers anticipated that whatever decision was made by the MPC Wednesday, it would be appealed by the losing side. But because the commission didn’t approve or deny the project and instead chose to continue the project to August 28, an appeal of the commission's decision to the Board of Supervisor by Caruso isn’t even possible. Both sides were anticipating an inevitable lawsuit contesting whatever decision the supervisors would have made. Opponents have plenty of money to pay lawyer’s fees and nobody can question that Caruso has deep pockets.
Caruso — a heavy hitter in conservative California politics who in recent weeks held a birthday fundraiser for Gov. Arnold Schwarzenegger and who last year held a fundraiser that netted $1 million for former presidential candidate Mitt Romney — is said to be seriously considering a run at mayor of Los Angeles. Some of Caruso’s grandest projects fall within, or not far from, L.A. city limits, including the Grove in L.A. and the Americana at Brand in Glendale.
Two projects of his, however, have run into similar problems to those opponents are complaining about here in Santa Barbara. In September 2007 a state appeals court ordered that construction be halted on the second and final phase of a large development project, saying the project’s EIR was flawed. The second phase — estimated cost $1.1 billion — would build a town center with 195,000 square feet of retail and 175 new apartments on 11 acres within a new zip code. The project, known as the Village at Playa Vista, is just south of Marina Del Rey in L.A. A board of judges found the review was “deficient in its analysis of land-use impacts, mitigation of historical archaeological resources and wastewater impacts.”
More recently, media reports indicate Caruso’s plan for a big shopping mall next to the Santa Anita racetrack has been held up by a Los Angeles judge who said the project’s EIR must be revised, finding 11 deficiencies in it. Caruso’s plans for Santa Anita appear similar to The Grove and Americana at Brand, both of which feature upscale shops and outdoor restaurants.
Montecito welcomed Caruso with open arms after failed attempts by Studio 54 founder and hotelier Ian Schrager and then Montecito resort owner Ty Warner to build the Miramar. Caruso — who bought the approved Schrager plan for the various Miramar parcels in January 2007 for more than $52 million — hugged the community right back, holding dozens of meetings, collecting historic artifacts, and promising to create a beautiful resort reminiscent of the hotel that once was. But as he progressed through the county process with Schrager’s approved project from 2000 in hand, he decided in the fall to alter the plans. Back at the starting line this time with a new project — not new enough for an EIR, he claimed — he ran into opposition from some in the community.
Paul Wellman
Montecito Planning Commissioner Claire Gottsdanker was critical of the size, bulk and scale of the Miramar project Wednesday.
But he also received a lot of support from neighborhood groups throughout Montecito, including the Montecito Association, which has come under firefrom some of its members for not thoroughly dissecting Caruso’s plans, as the association has with other large projects in the past. Multiple commissioners hinted at the complacency of the association in their comments. “I feel you’ve been badly served by some of the community,” Bierig said. “You found a conclusion that they could accept things we could not accept.”
Caruso had indicated in the past that he wouldn’t hold onto the project should an EIR be required. In fact, with investors waiting anxiously in the wings to see their $400 million or so — Caruso hasn’t said how much the project will cost — be used, he won’t wait. And the county, expected to make more than $1 million per year in hotel tax on the site, knew it. From the get-go, county staff has been pushing the envelope with the plans. Project managers have complained of the proposed timeline being “aggressive and unrealistic” and putting “so much pressure on staff.” One county staffer, Michelle Gibbs, after asking to be taken off the project, eventually resigned.
While some residents are scared to see another developer come and go, and fear there may never be another buyer willing to come in and see the site through to completion given the stringent regulations, rumor has it that might not be the case. Big time developers Steve Wynn and Bill Marriott are both said to be interested in the property should Caruso eventually take a pass: “I was certainly enamored with this project, but if it’s not in the cards, it’s not in the cards.”
Paul Wellman
Proponents of the Miramar project have pointed to the eyesore the site has become, and are ready for the site to be turned into a five-star resort.
And so it remains to be seen what will come of the site peeking over fencing next to Highway 101 at 1555 South Jameson Lane, currently home to tall grass, rats, and who knows what else, all surrounding fading blue-roofed, dilapidated buildings with broken windows and peeling white paint. There’s no question in anyone’s mind the site is an eyesore, but what, or who, will relieve the pain is still yet to be revealed.
Related Links
- Miramar’s Extra Architectural Review Nixed
- Shootout at Miramar Corral
- Miramar Opponents Claim Montecito Association Failing Its Mandate
- Miramar Hotel Emails Raise Questions
Double-clicking on any word or phrase in this story will open a reference window with definitions and links to other reference material.
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Thank the Santa Barbara gods and goddesses that once again, reason and integrity have prevailed. A railroading effort--which is what this was--can only go so far here. You would think County executives and supervisors would have figured this out before trying to fit this round peg into a square hole. But their hubris and entitlement colored their pragmatism. Thankfully the MPC did what they are charged with doing (and what staff SHOULD have done---oh that's right two of them did do this but were shall we say disappeared from the project....) and that is to apply the existing standards and CEQA requirements to the proposed project--and how could they have reached any other conclusion than the one they did. I am so sick of Palladini, Caruso, Carbajal and the other big man babies who have been deluded by false visions of their own grandeur.
sbsleuth99 (anonymous profile)
August 7, 2008 at 7:22 a.m. (Suggest removal)
It is truly upsetting that Mr Caruso is not going to be able to re-develop the Miramar. For the neighbors, and I'm one, it's a rat-infested mess, and for the County, a much-needed source of tax revenue is in abeyance.
The responsibility for that, however, lies entirely with Mr. Caruso. His plan was egregiously large, wildly out of scale with the Montecito Community Plan, and riddled with errors of omission and commission in order to squeeze a huge development into a relatively small lot.
The dreams of private equity are not a public problem. If a centi-mililonaire overpays overpays a billionaire for the Miramar, that's his responsibility. If the only way to make it pencil out is to devastate the Montecito Community Plan, that's not a solution worth having.
Mr. Caruso knew that there was a fierce resistance to over-development here. He bought approved plans. That he chose to discard them so he could scrape tthe lot clean was his choice.
The Montecito Planning Commission did their job, despite a lot of public pressure to rubber-stamp the fast-tracked plans. They deserve our thanks.
chubbco (anonymous profile)
August 7, 2008 at 7:40 a.m. (Suggest removal)
Of course, any project applicant simply can WITHDRAW his project application and need not go through the high drama and game of seeking an outright denial as a way to save face and elevate the property selling price.
The legal Process seems to have prevailed here, and the meanly slammed line-staff planners Michelle Gibbs and Julie Harris were right all along for following the law and upholding their professional ethics, a true way to Love America.
David_Pritchett (David Pritchett)
August 7, 2008 at 8:16 a.m. (Suggest removal)
Here's Reality ....
Caruso takes his money and runs, leaving a cluttered dump of empty beer bottles, cockroaches, rats and other vermin. At least the homeless, drug users and vandals can return to the place they call home.
Warner stripped the property of trees. Shrager let the buildings crumble and become termite infested.
BTW, anyone who wants a nostalgic, termite and dry-rot infested, blue roofed cottage for free - I'm sure Caruso will give you one.
Have fun with that Montecito.
FYI - Wynn won't do any project that does not involve a casino. He makes too much money in Macau & Vegas to go through that assinine process with your city.
Marriott - doesn't build those kinds of boutique properties. Go view on of their resorts and let me know what you think of the "size and scale"
jb (anonymous profile)
August 7, 2008 at 8:47 a.m. (Suggest removal)
Caruso wants a simple yes or no decision so he can continue the process by appealling the MPC decision to the BoS. Not an unreasonable request after two public MPC hearings with no decision. As I've said many times, the problem with the process is that it can go on indefinitely. Just as one might reasonably expect an applicant to go through certain hoops, one might reasonably expect the county, the MBAR, the MPC, etc. to provide definitive answers.
RCMeltzer (anonymous profile)
August 7, 2008 at 9:28 a.m. (Suggest removal)
I guess the residents near the Miramar would rather live next to a dump/homeless emcampment rather than comprimise on this project. Those of you that were opposed to this project, should all be forced to live on or next door to the property see how everyone else feels about it, or perhaps help clean it up.
Funinthesun (anonymous profile)
August 7, 2008 at 9:45 a.m. (Suggest removal)
and the sand crabs rejoice! time for a local big time billionaire to step up and show some class like Alice Keck Park , Ms Childs , Ellings and the Douglas family.
lordleadbetter (anonymous profile)
August 7, 2008 at 10:45 a.m. (Suggest removal)
How 'bout Julia and Brad?
RCMeltzer (anonymous profile)
August 7, 2008 at 11:14 a.m. (Suggest removal)
As I have said here before Caruso made a huge blunder by not retaining local representatives to help him through the process. The Montecito Assoc. should have helped him early on. I am actually surprised that the MPC stood up to the pressure. Claire Godstanker is one tough cookie and a seasoned warrior on Montecito land use. I expect the Montecito Water Dist. is not going to be happy about the scrutiny of a County managed EIR looking at where they are today. I am all for a new Miramar but whoever gets it done is going to have to follow the Montecito Community Plan scrupulously or they will be wasting their time and ours.
sbreader (anonymous profile)
August 7, 2008 at 11:21 a.m. (Suggest removal)
It's to bad the County didn't do it's job in the first place with an up front EIR instead of passing the buck. With the Miramar being in Supervisor Carbajal's district, he blew it on this one.
Thank god the Montecito Planning Commission did its job and didn't cave to the pressure.
Georgy (anonymous profile)
August 7, 2008 at 11:41 a.m. (Suggest removal)
"The George Hall Preserve"
lordleadbetter (anonymous profile)
August 7, 2008 at 11:49 a.m. (Suggest removal)
Doesn't the owner of any property have the obligation of cleaning it up and removing healthy/safety hazards like rats and whatever else is there? Why is it, that the property is a mess, an argument for Caruso to sweep by Montecito's planning requirements? Maybe he should show some good faith and less contempt for the community and clean up the mess he bought and continued.
1066etal (anonymous profile)
August 7, 2008 at 12:22 p.m. (Suggest removal)
Way to go MPC!! You've run off Mr. Number 3! Now your neighbors will have to endure years more of looking at a major eyesore.
All you uppity Montecitoans should put together a fund to buy the property from who ever and donate it as a park in your short sighted honor.
What a bunch of losers!!!
osotoh (anonymous profile)
August 7, 2008 at 1:13 p.m. (Suggest removal)
If they won't let Warner do it and they won't let Caruso do it with class and sensitivity unique to it's tradition, nobody will - I guess we just shell it out to another Hilton-Mariott type developer or bulldoze it. So much for another great Santa Barbara landmark. Nothing is good enough for you people is it?
AShaw (anonymous profile)
August 7, 2008 at 5:46 p.m. (Suggest removal)
Gosh, ya know, maybe the Montecito Community Plan, for all its wonderfulness, is now outdated enough that it won't allow a new Miramar that would actually make money for its owner. Some folks seem to think they can spend Caruso's (or whoever's money) without a care in the world. Ain't so. Now, if some local rich folks would like to build a Miramar that conforms and operates at a loss, that's another thing. Any takers?
RCMeltzer (anonymous profile)
August 7, 2008 at 8:29 p.m. (Suggest removal)
Pretend that your neighbor bought a dumpy house on a lot zoned for single-family. Then they applied to turn it into a fourplex, with two parking spaces. Would you object?
Too often, we expect the government to jump in and enforce the laws. But sometimes the property owner knows how to work the system, planting innuendo and propaganda until otherwise intelligent, well-meaning folks believe that the propaganda is equal to the rules.
Now the owner says, well, this house is an eyesore. If you don't allow me some modifications, I can't make enough money to justify cleaning it up.
Sound familiar? Offenders often take the offense in order to defend their mis-judgements. Just blame everyone else.
Mr. Caruso is a very intelligent man. He knew that he was making a gamble and must have felt that the return was worth the risk.
Fortunately, the "canaries in the coal mine" sounded an alarm and presented facts instead of "enough is enough, we want a cocktail, now!"
The Montecito Planning Commission showed deliberate judgement in upholding the thrust of the Montecito Plan. There are plenty of places where development is easier but the environment is crappier.
Take your pick. I love Santa Barbara and Montecito.
sbbulldog (anonymous profile)
August 7, 2008 at 9:57 p.m. (Suggest removal)
"socialist tool"?
Dude, it's 2008. It was in the 1980s that Reagan made kissy face with Gorbachev. About 22 years ago.
May I provide you with a personal make-over to update your liberal epithets and leave the Cold War fashion-sense in the last century.
Try out "cheese-eating surrender monkey," or "dumb-o-crat," or "Fiberal" or "Idiotarian" or "Limousine Liberal."
binky (anonymous profile)
August 7, 2008 at 11:23 p.m. (Suggest removal)
Like all astute businessmen, Caruso has certainly read "The Art of War," which is how to win business deals and overcome your enemy. One important way to do it is to divide and conquer. Differences of opinion are fine - that makes life interesting. But look at the division this man has created in the community. Look at the vitriol, the hate! Look at neighbors slamming neighbors! Caruso did NOT have our community at heart. He is an out-of-town developer who wants what he wants when he wants it. He came in, and in the guise of schmoozing, started pitting one side of the community against the other, fueling hate, rudeness, rage - division. Please examine your own rages that you did NOT have before this man came to town. Thank you, Mr. Caruso, for blessing our community the way you have.
HiAll (anonymous profile)
August 8, 2008 at 10:47 a.m. (Suggest removal)
Crocodile tears from Mr. Caruso. The new Miramar would be open today, if he had just used the approved Schrager plan. What a waste of time and money! The time is now to float a bond to purchase the property and turn it into a park.
Herschel_Greenspan (anonymous profile)
August 8, 2008 at 11:20 a.m. (Suggest removal)
Ditto HG!
lordleadbetter (anonymous profile)
August 8, 2008 at 9:50 p.m. (Suggest removal)
So Binky, socialism was only a phenomenon that happened in Russia in the cold war? With the fall of the Russian empire, it no longer exists and is no longer possible? That can't be what you are saying, I must have misunderstood. Just wait until this country "changes" to socialism with Obama.
AShaw (anonymous profile)
August 9, 2008 at 9:52 a.m. (Suggest removal)
Wait maybe it already has "changed" to socialism - we have people like Herschel who want to "float a bond" (meaning steal from the taxpayers) so he can have a "people's park".
AShaw (anonymous profile)
August 9, 2008 at 10:01 a.m. (Suggest removal)
If not an affordable house project for the servants of the wealthy who drive from Ventura/Oxnard, then a Channel Islands National Park Viewing area, complete with Latte’s and SUV parking.
http://i119.photobucket.com/albums/o156/...
http://i119.photobucket.com/albums/o156/...
http://i119.photobucket.com/albums/o156/...
easternpacific (anonymous profile)
August 10, 2008 at 9:19 a.m. (Suggest removal)
The solution is simple. Caruso was the last fool who overpaid for the property. He needs to take his loss and allow Matt Osgood to buy it at whatever the price has to be for him to build 72 houses on the property as the TDR that the county wants. That way we save Gaviota and Montecito gets their just deserts...
sa1 (anonymous profile)
August 10, 2008 at 9:36 a.m. (Suggest removal)
A lot of good comments and some very reactive ones. The first 2 commenters plus HiAll said it best. Robbing-us-Caruso knew what he was getting into and he was counting on the reaction he got from the people who are tired of looking at the neglected property.
Follow the rules or PLEASE take your ball and go play somewhere else.
1wahine (anonymous profile)
August 10, 2008 at 10:24 a.m. (Suggest removal)
HiAll: Mature individuals take responsibility for their own behavior. If you act with hate, rudeness, and rage then blaming it on Caruso or anyone but yourself is just plain wrong. But it has become clear, especially in the blogs, that hate, rudeness, rage, incivility, and other less than delightful traits are in no short supply while civility, reasoned fact-based debate, balanced thinking, and respect for the individual are sadly lacking.
RCMeltzer (anonymous profile)
August 10, 2008 at 11:24 a.m. (Suggest removal)
I think HiAll and SA1 got it right. Regarding comment right above: Where was the civility when the county employee’s got railroaded out of their job because they were trying to do it correctly? I think many in Montecito had the same problem as a 13-year-old boy seeing his first playboy with regards to the project. Let's just say the blood was not in their brains. The art of war exactly what is up. Also, there is the art of negotiation where you set the baseline with some ABSOLUTE BS benchmark and then work your way backwards to something that is still at your advantage. This seems to be the standard business model for development these days. Why these developers think they will get further along by assuming everyone is a moron and that a few jelly filled doughnuts and some nice suits will get them what they want. I think there is some saying about vinegar and sugar? Anyway, I just got done watching the public hearing/comment on channel 20. Too me this whole thing is really frustrating. This was a slam-dunk if Caruso would have just quelled the ego a little and negotiated in good faith. I think he can have his cake and eat it too. There is the issue of the public safety with the flood plane. 1 point for the locals. If Caruso wants to make some money and have a pretty good sized setup, 1 point for RC. It is his property. Tennis court lights? Duh. Put them on timers, DONE. Interesting on the historical building cottages thing: I will bet that if he fixed up 5 of them, they would be sold out constantly. Make them vintage. I think the whole project should be LEED platinum!
So put the ego back in the closet and negotiate in good faith and it can work out. The EIR? Well it was YOUR choice (Caruso) to redo the project, not the county's or anyone else’s. You got to play by the rules dude. Doughnuts, suits, threats, all that crap will still not get you by the Pottsdankers of the world. The Mr. slick thing is so last Tuesday’s news
The area is way too precious to just let you skate on thru. Hey how about putting La Entrada, the Bacarra, and the Naples properties all on that site, wouldn't that be just grand.
bimboteskie (anonymous profile)
August 10, 2008 at 3:40 p.m. (Suggest removal)
I agree that Mr. Caruso would have benefited from dancing lessons. Montecito is a delicate mistress but she doesn't take to being man-handled. All in good time. Start with the fox-trot.
Georgy (anonymous profile)
August 10, 2008 at 9:33 p.m. (Suggest removal)
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