Slick Rick Dodging the Miramar

Barney's ignorance of things financial is showing here. The availability of money for a venture has to do with its profit potential, not with whether money is available for some other venture. The market for luxury hotels has changed dramatically in recent years. Perhaps if the self-appointed protectors of the community had been less obstructive to Caruso the project would be done already. But typical of some locals to cause the problem then blame the victim.

Completely agree with "JohnLocke" here. It somehow doesn't occur to Barney that in addition to the macro-economic factors, the ROI is further aggravated by events that Barney writes about inside his own question! Seemingly endless regulatory and permitting processes compounded by overzealous politicians and abusive activists. This is all in addition to the necessary basic regulations, process and public involvement. The result: A shambled tear down and no employment for workers to build or operate the property, no taxable income for the city and no extended economic impact for other local businesses in the area (dining, etc.) Just keep voting Liberal Democrat so you can FEEL good about yourself (Down with Rick/Capitalists/Private Property Rights) without actually DOING actual good for people (Now Hiring at a Beautiful Resort).

As previously stated, these SB megaprojects just don't pencil out right now. This might just be a good thang! It's really nobody's fault. Be careful what you wish for, Miramar really is a nice beach right now, very quiet and private. Developers love to sling mud at planners blaming them for the micro/macro economic realities... it's in their nature. Where is Jacques when we need him? He would say "Stay off my beach!" And...if you don't know who Jacques is...

The ROI for the Miramar has never penciled out, even in the days of Schrager who bought the property without ever seeing it or understanding what the nightly rental could really be.
Ty spent tons of money on the Biltmore and San Ysdrio without a reasonable RIO -- he just loves great properties. He dumped the Miramar because it was painful working with the local bureaucrats.
Probably the only way the Miramar could have worked would have to pay a much lower price -- maybe $20M and leveraged the existing buildings and keeping the funky Miramar charm. Maybe Caruso will do us a favor and go bankrupt so someone can buy the Miramar for 20 cents on the dollar.

Make it a homeless shelter.

Highly unlikely that Caruso would go bankrupt or that the Miramar would go for 20 cents on the dollar. Dramatic reduction in obstructionism would be more helpful, but probably no more likely. After all, we have a whole class of people here who make their living off the planning (non)process. Bureaucrats, lawyers, engineers, various and sundry "experts" (many self-appointed), various non-profits who may themselve be nonprofit orgs but nontheless pay their staffs. Caruso's wealth is no match for the self-righteous protectors of our beautiful, but failing, state.

The attempts to shroud Caruso in a golden cloak of rational economic behavior are laughable, and sickening. It was Schrager and then Caruso, with a brief intermissive dalliance by Warner, who plowed through the notoriously rigorous county permitting process, not once (Schrager), but thrice (twice for Ricky C.), with promises of grand community benefits not merely trickling, but gushing, from their then- and still moribund development schemes. Playing with other peoples' money is fun for those who can, as long as the fun lasts; just ask Bill Levy, The Donald, Fess (r.i.p.), and a host of others.

When they get community approvals and endorsements for their sandbox schemes, and then get bored and distracted by other shinier toys and walk away, it's time for the rest of us to say "Enough!, and No More!"

Well yes, but it seems to take such outrageous promises to get through the process. By which time the market for financing such projects has collapsed. By which time the Boccara has sold for a price approximately 1/3 per room what it would cost Caruso to build. Thus by which time the project is no longer financially feasible. Here's a comparison on a more personally understandable level - you get a drivers license and agree to buy a car, then lose your job.

Caruso et al have had great successes outside of Montecito - think there may be a connection? Back to school, Greg Mohr.

"Boccara"? Back to school yourself.

So Caruso can make more money buying part of the Dodgers than by following through on his boastful commitments and permits-in-hand? So why did he not so long ago apply for, and get, modifications to his previously approved development plan? In my parochial school, and at home, I was taught that such behavior is just plain greedy and shameful. I guess that's why econ is known as "the dismal science."