What Was Bacara’s Dworman Thinking?
Take My Resort, Please
Thursday, February 9, 2012
Resort Just Happened: Whose idea was it to build a luxury resort 12 miles out of town in the middle of nowhere on a less-than-Waikiki beach?
And did the people who bought upscale Bacara Resort & Spa last summer really plan to flip it for $100 million more than they paid six months ago, as rumors would have you believe? My sources say no. The $200-million figure being bandied around is bogus, they say.
They say it’s just that the sale to Ohana Real Estate Investors for a reported $104 million sparked a flurry of investor interest. So sure, it’s available, but at this writing, no firm offers.
Barney Brantingham
Here’s how the Bacara got born: In 1968, a New York real-estate billionaire named Alvin Dworman found himself in possession of more than 70 beach-bluff acres west of Goleta after taking over a failing tire and rubber company that happened to own the beachfront property, not to mention about 1,000 acres across the freeway.
When the Coastal Commission shot down Dworman’s 150-home gated-community plan, he teamed with Hyatt to build a luxury resort. Never mind whether it was the right place.
Dworman’s hunch-style of planning isn’t the way the Mexicans did it at Cancún, when they aimed to locate a dollar-sucking tourist mecca in the Yucatán, hiring experts on climate, water, beach conditions, and the like. The best place, they decided, was a mostly deserted sandbar used by fishermen. Cancún was born.
Dworman, never having been to Santa Barbara, didn’t need any stinking planners, and just plunged in. Opponents surfaced like a school of sharks. Dworman eventually enlisted an army of PR people, and heavyweight supporters like ex-president Gerald Ford and governor George Deukmejian. But he ran into a man who stopped him cold: county supervisor Bill Wallace.
Wallace, according to columnist Nick Welsh, writing in The Santa Barbara Independent in 2000 when the Bacara opened, told one of Dworman’s agents: “I will fight you to the day I die.” To Wallace, it was “leapfrog development,” right on Goleta’s urban-limit line, and it threatened to open up the rest of the coast west of Goleta to development.
A group called Citizens for Goleta Valley joined in the fight and filed a suit that went up to the California Supreme Court and back down again. Then the economy tanked, and Hyatt, unable to get financing, pulled out. Dworman fought on, and so did Wallace and the Citizens. County supervisors eventually okayed the Bacara. A huge mistake, according to Wallace.
Finally, both sides compromised in court, with Hyatt paying Citizens for Goleta Valley
$5 million for environmental protection projects. To give you an idea of how long the battle took, the daughter of Dworman’s lead attorney was 2 years old when he first started working for the developer and 30 when the Bacara opened in 2000.
Some years ago, I met ex-boxer Dworman, a rotund man in a pin-stripe suit, and he looked very happy in those early days. No doubt he’s still very happy to have gotten the resort off his balance sheet. True, it cost him $220 million to build it, who knows how much to keep it afloat, and he unloaded it for a reported $104 million. But then, he’s still hanging onto those thousand or so acres across the freeway.
Today, things are looking brighter for the 360-room Bacara. At first, Dworman, in his dubious wisdom, virtually installed a do-not-enter sign out front to dissuade locals, and his resort could never overcome that cold shoulder. But when the new Ohana owners took over last summer, they changed all that and are reaching out to the community.
Room rates start at $240, but locals can stay during the week for $215 a night, or $260 on weekends. The Bacara welcomed the Santa Barbara International Film Festival last week with a fancy party. I hadn’t been to the Bacara for years, but Sue and I ventured out there last Saturday night when the French cast of the film The Artist was hosted, and we drove 12 miles back for lunch Monday.
It’s a beautiful place to spend your money.
Today, Wallace is philosophical about it all. He’s aware that Bacara’s bed taxes help the city of Goleta. For him, it was all about saving the Gaviota Coast. If the site was virgin land and the project came up now, “I’d probably vote against it.”
Goodbye, Mike: I’ll always remember Mike DeGruy for his big, friendly smile at the Film Festival, where he organized the Reel Nature documentaries. Sadly, Mike died last week in a helicopter crash in Australia. A memorial will be held at Fess Parker’s DoubleTree Resort in the Plaza del Sol at 3 p.m. on Sunday, February 12.
Related Links
Comments
I wonder how much money went to fight the obstructionista in the original project.
JohnLocke (anonymous profile)
February 9, 2012 at 12:31 p.m. (Suggest removal)
I'm not sure offering lower room rates on weekdays and hosting parties for Oscar nominated films from France is necessarily "reaching out to the community". I was hoping that sentence would be followed with one that read "surfers and other beachgoers are no longer being harassed" or something of that nature...
Ken_Volok (anonymous profile)
February 9, 2012 at 6:30 p.m. (Suggest removal)
Public opinion about this is stated on many stickers.
John_Adams (anonymous profile)
February 10, 2012 at 7:24 a.m. (Suggest removal)
and wasn't there a multi-million dollar lawsuit against the contractor for installing moldy lumber in the original building? What became of that suit?
paularganbright (anonymous profile)
February 10, 2012 at 8:21 a.m. (Suggest removal)
I'm with KV. After the long fight the hotel has actively attempted to not honor the agreement for public access.
italiansurg (anonymous profile)
February 10, 2012 at 12:15 p.m. (Suggest removal)
Hahah good article Barney, very informative. this article is awful
to all you locals complaining about limited access to the beach, the parking lot that exists now is just as big if not bigger than the dirt parking lot that was there prior to any development. furthermore, the gravel road that goes out to the beach that all the dirty local beach bums used to hang out on is closed because its a fire lane. who cares if a resort doesn't want to "reach out to the community" you ever hear about the super 8 trying to reach out to the community, dumb locals are just mad because they can't just drive their car out to the very edge of the beach anymore, first world problems.
greenbean (anonymous profile)
February 10, 2012 at 3:12 p.m. (Suggest removal)
green bean obviously not a local like some of us who for
50 years have appreciated the beauty of the Goleta coast.
guess we're just dirty, dumb locals. should have stayed in the
OC, green bean...
yerbaguy (anonymous profile)
February 10, 2012 at 3:58 p.m. (Suggest removal)
Right now Bacara is talking the talk. But will they walk the walk?
We are skeptical. We have already heard of them throwing out local businesses that have been working with Bacara for years. Businesses that do a great job at a great price, without letting them place there local bids against the big corporate Co's..
Small companies can do a great job especially in the service sector against big corporations.
Keep it Local!
Rinconsurf (anonymous profile)
February 10, 2012 at 5:28 p.m. (Suggest removal)
Greenbean obviously has their own agenda that us "dumb locals" are obstructing, let's keep up the good work.
Ken_Volok (anonymous profile)
February 11, 2012 at 10:57 a.m. (Suggest removal)
Since Etna is apparently slumbering:
User profile: greenbean
Joined: Feb. 10, 2012
Comments posted: 1 (view all)
Ken_Volok (anonymous profile)
February 11, 2012 at 10:57 a.m. (Suggest removal)
haha agenda? please. i was simply stating facts that prove the locals complaining about limited access are full of garbage. the access available now is better than it ever was previously. i have been going to haskells since it had a dirt parking lot and frankly the access to the beach is much more safe and easier than before. if you think closing the fire lane to any beach going traffic is limiting access than you should probably take that up with the fire marshal.
greenbean (anonymous profile)
February 11, 2012 at 3:43 p.m. (Suggest removal)
Hyatt tried to establish a five-star resort on a beach that's filled with tar, subject to the stench of the Elwood Processing Facility, shrouded by cold fog most of the summer, and is located within Monarch butterfly groves and on top of a major Chumash village site. Any wonder that they paid a fortune for "obstruction"? This thing was star-crossed from the beginning, and the building quality fiasco is only typical of developers who try to cut costs at every corner.
My Dad was an appliance and fixtures salesman, and his contempt for builders and developers is legendary. He told me more than twice, "They'd see their grandmothers buried in a heap of lumber if it saved them a dime." I have no sympathy here, for the Bacara is a blight on the coastline that should be washed out to sea ASAP.
GregMohr (anonymous profile)
February 11, 2012 at 4:53 p.m. (Suggest removal)
If they were smart they would break the mold of traditional corporate business. Hire local companies and embrace the community.
Ohana seemed to start this way but now it seems they are veering off this track.
If they spend their money locally it stays locally. In return over time the community will start to appreciate them.
Anyone staying their will also be roaming in town. Customers will hear the reaction from the community. If it turns positive they will come back and spread the word.
Smarten up Bacara! The community will make or break you. Remember Ohana means family! not Corporate!
Rinconsurf (anonymous profile)
February 12, 2012 at 10:20 a.m. (Suggest removal)
I still don't understand Greenbean's explicit hostility to us "dumb locals". Is Greenbean not local themselves? And if not why interject on local issues? Only a nonlocal would use that terminology. So if Greenbean is an occasional visitor, be a good guest and butt out.
Nope, I just don't find it credible that Greenbean isn't someone who might be benefitting from the Baccara mess.
Ken_Volok (anonymous profile)
February 12, 2012 at 1:26 p.m. (Suggest removal)
If you locals have lived here for the past "50 years" you would have had the opportunity to voice your displeasure about the direction development was going in to the board of supervisors. The California Environmental Quality Act guides development and allows time for PUBLIC REVIEW so that development is done so in a responsible manner. CEQA is enforced by the PUBLIC through LITIGATION. Sorry but this world is run by those who show up. If you care about development then get involved in the environmental review process, don't whine about things when you could have made a difference.
greenbean (anonymous profile)
February 12, 2012 at 2:56 p.m. (Suggest removal)
Greenbean, if you were local you'd know that many people have shown up, many, sometimes in the hundreds, occasionally the thousands. If you are local you'd know this, if you weren't too busy counting your money.
The Baccara remains as welcome an entity as cancer in a healthy lung.
Ken_Volok (anonymous profile)
February 13, 2012 at 8:18 a.m. (Suggest removal)