Orange County Supervisors again deadlocked on leases for the Dana Point Harbor on Tuesday, failing to approve a deal to advance the development of two new hotels. The proposed hotels would replace the existing Dana Point Marina Inn. Following the vote, Bob Olson, a lead developer with Dana Point Harbor Partners, stated they would likely move forward by remodeling the existing Marina Inn instead of constructing new hotels. This marks the third time the Board has not approved the leases.
The Board's discussions regarding the leases were largely conducted outside public view. On Tuesday morning, county counsel Leon Page asked the Board to shift into a closed session to discuss new revelations on the contract. This discussion was not agendized previously. County spokesperson Molly Nichelson stated last Thursday that negotiations and related documents were exempt from public discussion, citing attorney-client privilege and the deliberative process. Supervisor Katrina Foley indicated the closed session focused on the legalities of the process, noting that such a discussion was not suitable for the dais.
Supervisor Janet Nguyen raised concerns about the scope of closed-door discussions, noting that state law primarily permits such sessions for price and terms of payment regarding real estate. David Loy, legal director of the First Amendment Coalition, said he had “never heard” of a public agency pulling an item from open to closed session without prior agendizing, which creates a risk of public misunderstanding. Loy also emphasized that transparency is crucial for building public trust. Developer Bob Olson confirmed in a Wednesday statement that there have been no discussions about changing the original 2018 pricing or payment terms for the leases.
After returning from the closed session, the Supervisors again deadlocked on a deal that did not include explicit protections for current workers of the Dana Point Marina Inn. Supervisor Foley, who had previously sought worker protections, expressed the need to approve the lease for developers to secure financing, suggesting other matters could be addressed separately. Supervisor Vicente Sarmiento, the sole supporter with Foley, voted for the lease despite being nervous about the lack of worker protections. Supervisors Doug Chaffee and Don Wagner voted against the deal, and Supervisor Janet Nguyen abstained. Concerns raised by residents about increased boat slip pricing were not mentioned by supervisors during their public discussion.
With the lease failing to gain approval, Olson expressed disappointment and indicated the decision would likely prompt a remodeling of the existing Marina Inn rather than new hotel construction. It remains unclear when or if the matter will return before the Board in the near future.
