MY WRITE
By BILL BAUER (Contact Bill Bauer at)
The good news is that City Council recently approved a plan to build a world-class public beach club at 415 Pacific Coast Highway. The bad news is that some neighbors are acting like the Grinch that stole Christmas The 5.5-acre property was developed by William Randolph Hearst for Marion Davies, a comedic movie star popular in the late 1920s and early 1930s. The “Ocean House,” consisting of a 100-room mansion, lavish pool, tennis courts and a guest house, was the scene of serious Depression-era partying.
The property was sold in the 1940s and operated as a beach club and hotel. The state government purchased the property in 1960. City Hall leased it from the state and it became a seasonal public beach facility. After decades of neglect, it was closed after the 1994 earthquake. In 1999, City Hall began plans to redevelop the site as a year-round, full-amenity, recreational facility. The project gained steam in 2004 when the Annenberg Foundation agreed to provide a $28-million grant to help build the facility.
Mega-millionaire beach neighbors concerned about traffic, security and large noisy events negotiated concessions from City Hall, including a traffic signal on PCH, increased security, and limited food service, capacity and operating hours.
Although city officials acquiesced on their demands, the Palisades Beach Property Owners Association (PBPOA) and Jonathan G. Orenstein recently filed a lawsuit charging failure to address parking, safety and traffic problems. They also allege that the project’s food facility violates Proposition S, a 1989 voter-approved ballot measure that restricts hotel and restaurant development on Santa Monica Beach.
Orenstein is chairman and chief executive of Phoenix-based Mesa Air Group — a regional airline group operating in 173 cities, including Hawaii. He has a controversial past as an investment broker that includes Securities and Exchange Commission fines and sanctions in 1992, according to information posted about him on the Internet.
Among the other plaintiffs are Charles “Chuck” Levy, President of the PBPOA and a real estate attorney. Levy tried to stop the PCH sewer renovation project on behalf of the PBPOA in the late 1990s, according to City Council documents.
George Rosenthal is a local businessman whose firm, Raleigh Enterprises owns the Raleigh Studios in Hollywood; File Keepers (a document storage business that archives files from numerous municipalities including Santa Monica); the Sunset Marquis Hotel and Villas; Hollywood Rentals, and Rosenthal Malibu Estate Winery, among others. Rosenthal raised campaign money for Matteo Dinolfo's failed City Council run in 2004.
According to information posted on the Internet, John C. Law is an investment executive, Democratic party donor and chairman of the board of Cedars-Sinai Medical Center. Law and Rosenthal have extensive Sacramento connections.
The PBPOA’s corporate address is 201 Palisades Beach Rd. — “The Beach Club.” Its manager, Gregg Patterson, is the corporation’s agent, according to the Secretary of State’s Office. Both the members-only Beach Club and the exclusive Jonathan Club lease out facilities for events.
A full-service 415 PCH would directly compete with these private clubs for beach events and parties and impact their beach-front exclusivity.
Attorney, William F. Delvac, who represents the plaintiffs in the lawsuit, claims his clients support renovation of the site but are suing because they say City Hall will not guarantee their negotiated conditions which his clients fear may be subject to change.
Joel Brand, chair of “Friends of 415 PCH” said,“none of the four plaintiffs live next to 415 PCH. The beach residents who live closest to 415 PCH generally are in favor of the project.” “The Santa Monica Police Department has received only 10 noise complaints (Jan. 1, 2002 through April 30, 2006) from the ‘Gold’ coast,” Brand said. “Just two of them were about activity at the two private beach clubs which have none of the curfews, capacity limits or other restrictions the plaintiffs have imposed on 415 PCH.”
So why the fuss? Some of the plaintiffs could benefit financially if the project falls through and the property were to be sold. Its market value is $50 million or more. Although current zoning is for “public recreational use,” developers could request that the state take back the property from City Hall, purchase it, get a zoning change and erect luxury condos, for example.
PBPOA neighbors have played their only card and put all their chips on the table including their veto power. Since they’ve filed their lawsuit, all concessions should now be withdrawn.
When City Hall prevails, as it most likely will, it should go full-bore forward and create a public beach facility second to none. We deserve nothing less.
Originally published in the Santa Monica Daily Press print edition on July 10, 2006. Read the original PDF.