Resort will suck up local control, clientele... - Los Angeles Times
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Resort will suck up local control, clientele...

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Resort will suck up local control, clientele

As the former owner and operator of four hotels within a one-mile

radius of the Marinapark proposed hotel site, it is my duty to inform

all good citizens of Newport Beach to vote solidly and united against

the proposal as it is put forth in Measure L.

This measure takes away the control that the residents currently

have and gives it to others who cannot assure the success of their

project either now or in the future. This will create havoc among the

residents on both sides of Balboa Boulevard as the construction will

be overwhelming and prolonged, not to mention the parking,

underground or not.

My experience has been that over a 20-year period and through many

types of economies, the hotels currently on the peninsula have not

been able to penetrate 78% occupancy rate per annum, and have been

able to survive only through discounted fall and winter rates, as

well as discounted corporate rates during the week. This being the

case, what chance does a 100-room-plus have right smack in the middle

of an area that is barely surviving with the five small hotels --

Bayshores Inn, Dorymans Inn, Little Inn, Portifino Inn and Balboa Inn

-- currently operating?

The effects of the Sept. 11 attacks have had a major impact on the

occupancies on the peninsula. They have just started recovering in

the last 18 months and have paid their dues with lost earnings and

employees directly after the horror of the attacks. This hotel is not

going to give them business, but rather take it away. We all remember

the spot on Coast Highway where the Holiday Inn Express now sits. It

had failed as a hotel through three owners before becoming a national

chain this year, yet it sits right next to the Balboa Bay Club. Let’s

learn from experience.

The improvements promised by the passing of the measure are

laughable, when you consider the extreme wealth and wisdom Newport

residents bring to the table. One community fundraiser would raise

enough money to refurbish all the areas promised if we all thought it

needed to be done. We don’t need a financial group luring us away

from our community land grant by promising popsicles and lollipops.

Let’s keep our dignity, keep our land and, most importantly, keep

100% control within our city to do what we all see fit for the

benefit of our community and children.

I have had 20 years of hotel experience within blocks of the 18th

Street site and am opposed to this measure for our children’s and

grandchildren’s sakes. As an alternative, the developers should

propose to refurbish the existing homes with a cabin-style exterior

and sign a management contract with the city to try to rent them out

as they are. This would allow the city and the citizens to retain

100% control of the property and can also provide room for a

beautiful community park for us all to enjoy for years to come, not

to mention the possibility of occupancy revenues and taxes until a

better idea is proposed.

MICHAEL PALITZ

Corona del Mar

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