Orange County Supervisors recently rejected proposed revisions to development leases for the Dana Point Harbor redevelopment, with a 4-1 vote that stalled a significant public-private partnership. The Board declined to approve new leases intended to enable financing for two new hotels, after discussions primarily centered on protections for approximately two dozen hotel workers at the existing Marina Inn. The current leases had been discussed twice previously and returned for edits by the Supervisors.
The proposed lease revisions are an update to a 2018 agreement that granted a 66-year lease of the public harbor to a consortium of developers, Dana Point Harbor Partners. Developers assert these revisions are critical for financing, stating the original deal is "dead in the water" without them, and delays have already cost the project the ability to host events for the 2028 Olympics. Officials estimate the overall redevelopment could generate $25 billion for the developer consortium, $2 billion for the county, and tens of millions annually in hotel taxes for the City of Dana Point.
The most recent delays were triggered in June when Supervisor Katrina Foley raised concerns regarding worker retention at the Marina Inn, advocating for written assurances from the developer. Campaign finance disclosures show Bob Olson, president of R.D. Olson Development, a leader of Dana Point Harbor Partners, donated $2,700 to Foley last November, but then took back $2,200 of that donation on June 16, a week before supervisors considered the leases publicly. However, after further consideration, Supervisor Foley reversed her position in August, proposing that the leases be approved without written worker protections, arguing that verbal assurances would suffice. Her motion at a recent meeting to adopt the agreement without such assurances was defeated by a 4-1 vote, with her colleagues declining to support the proposal.
Chairman Doug Chaffee, while supporting the overall redevelopment deal, publicly stated at the last public meeting he also needed to see more protections for hotel workers. Following the Board's vote, Unite Here 11 Spokeswoman Maria Hernandez thanked the Orange County Board of Supervisors for "standing with Dana Point Marina Inn workers," stating that workers deserve written protections beyond verbal assurances. The hotel workers union did not spend campaign money on Foley, but she had publicly sided with the local hotel union in June. Chaffee, a Democrat, has publicly endorsed Foley’s Republican opponent, Diane Dixon, in the developing mid-term November election for a Fifth District county supervisor seat.
The Dana Point Harbor revitalization has been debated since 1997, with a public-private partnership crafted in 2016 under then-Supervisor Lisa Bartlett and approved during former Supervisor Andrew Do’s chairmanship. Despite the existing approvals, community concerns persist among locals regarding commercialization, free parking, boat slip fees, and general community access to the harbor. Supervisor Foley also recently held a community meeting to update residents on how developers may change community access. The Board’s recent vote means the proposed lease revisions will likely undergo further modifications or remain in limbo, further delaying the planned construction of the new hotels.
