> ## Content Index > Fetch the complete content index at: https://www.smdp.com/llms.txt > Use this file to discover other available public pages before exploring further. # Council digging Davies - URL: https://www.smdp.com/council-digging-davies/ - Published: 2007-01-23T16:00:00.000Z - Updated: 2026-10-23T23:53:17.000Z - Author: Kevin Herrera - Tags: Government & Politics, Santa Monica, #archive-import *Lawsuit threatened beach house dreams* CITY HALL After laying dormant for more than a decade, the old Marion Davies estate is about to see some life. The City Council tonight is expected to approve a construction contract with Pankow Special Projects for the complete renovation and adaptive reuse of the estate, transforming the relic of the “Gold Coast” era into a premier public beach club complete with volleyball courts, a kiddie pool, snack bar and lounge. “This is the Big Kahuna contract,” said Craig Perkins, City Hall’s director of Environmental and Public Works Management. “This is the big action and, basically, we don’t have to come back to the council before we start construction, except perhaps for a few minor changes that may be made.” The contract with Pankow is valued at just over $28 million, the majority of which — $21 million — will be paid for by a grant from The Annenberg Foundation. To reflect that gift, the beach club will be named the Annenberg Community Beach Club at 415 PCH (Pacific Coast Highway). The intersection at PCH leading into the club will be named Marion Davies Way, according to a Construction crews are expected to break ground by the end of Spring, and finish by November 2008, according to Barbara Stinchfield, City Hall’s director of Community and Cultural Services. “This is indeed a cause for celebration,” Stinchfield said. The 5.5-acre estate was built by William Randolph Hearst in the late 1920s for actress and mistress Marion Davies. It was designed by architect Julia Morgan, who also created Hearst Castle in San Simeon. The Santa Monica estate consisted of 100 rooms, guesthouses, tennis courts, an elaborately decorated swimming pool and dog kennel. The property was sold in the 1940s to a private party and converted to a hotel and beach club. The state purchased the property in 1960\. Under an agreement with the state, City Hall leased it to a private beach club, the Sand & Sea Club, and later operated it as a seasonal public beach facility. Damaged in the 1994 Northridge earthquake, all structures except the beach cafe were subsequently “red-tagged,” or designated as unsafe to occupy. Following an extensive community plan-ning process, in 1999 the council approved a re-use plan that determined the site’s potential as an important public resource, leading to the current development proposal. The beach club design would preserve and restore the original swimming pool, which is constructed of Italian marble tiles with inlaid designs. The north house would also be rehabilitated along with the interior design, including hand-painted bathroom tile, the marble fireplace, cabinets and a crystal chandelier. New facilities include an entry pavilion, an event house and pool house (for more information, go to 415pch.smgov.net). The dream of a public beach club almost died a year ago when members of the Palisades Beach Property Owners Association and multi-millionaire Jonathan Ornstein filed a lawsuit asking a judge to stop the project because City Hall allegedly violated conditions of the California Environmental Quality Act, as well as a local law prohibiting the creation of food-serving facilities along the beach. The plaintiffs also said the beach club would create dangerous driving conditions on an already deadly stretch of PCH, and therefore, a stop light needed to be installed. City officials made several attempts to appease the residents, including scaling back portions of the facility, as well as the hours of operation. Additional security was also included, and city staff entered into negotiations with the California Department of Transportation to have a traffic signal installed. A settlement was ultimately reached in September 2006\. In exchange for dropping the lawsuit and ensuring the project went ahead as scheduled, City Hall has agreed to operate the beach club according to conditions approved by the association and provide around-the-clock security for at least seven years, with certain conditions in effect for a decade. The City Council will also adopt a resolution specifying the terms and conditions for operation and that the terms be included in the facility’s permit with the California Coastal Commission. The council also agreed to use its best efforts to have CalTrans place a traffic signal at the property, located at 415 PCH. CalTrans has been “receptive,” according to a city staff report. The operating conditions are expected to be approved by the council at their meeting tonight, along with an additional $6,488,000 from the Annenberg Foundation that will help ensure the agreement is kept. Charles Levy, president of the association, said residents were never against the project, nor its mission. They were concerned that if the project proved to be unsuccessful and a drain on City Hall’s coffers, elected officials would cut back and create an eyesore that would eventually attract squatters. In a statement shortly after the settlement was reached, Levy said homeowners were “very pleased” and were “confident that it will now be possible for a pattern of operation... that will ensure maximum enjoyment of the beach club,” while maintaining the quality of life for those living nearby. Joel Brand, chair of Friends of 415 PCH, a collaborative comprised of residents and former elected officials who organized in support of the beach club amid the lawsuit, said the council’s decision to greenlight the project tonight will signal a “major step forward” in the fight to create greater access to public beaches along PCH, once known as the “Gold Coast” because of the seaside mansions that dotted the landscape and the opulent lives of those who lived in them. Davies oftentimes held elaborate costume parties that drew the likes of Clark Gable, Carole Lombard, Cary Grant, Gloria Swanson and Howard Hughes “It was only last summer that some of us were worried that we would never get to this day,” Brand said,“and to have it finally arrive after the community spoke with such a loud and concerted voice is a tribute to the foundation’s vision, the city’s professionalism and the residents’ determination.” ![](https://storage.ghost.io/c/55/9f/559f9abc-8372-4a2e-8c2d-27386da4e363/content/images/2026/10/012307-02_01.jpg) ![](https://storage.ghost.io/c/55/9f/559f9abc-8372-4a2e-8c2d-27386da4e363/content/images/2026/10/012307-02_02.jpg) *Originally published in the Santa Monica Daily Press print edition on January 23, 2007.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/012307.pdf?ref=smdp.com)