The Orange County Board of Supervisors on Tuesday again delayed a proposed lease deal with Dana Point Harbor Partners, the developer of the Dana Point Harbor renovation project. The Board indicated that the proposed deal did not adequately protect existing workers or provide sufficient benefit to the county.
This delay leaves significant portions of the project, including plans for two new hotels, in limbo. Supervisor Katrina Foley, who initially raised concerns about worker protections, advocated for immediate approval of the deal on Tuesday, stating, "The responsible path now is to move the hotels forward." Despite her appeal and willingness to set aside previous demands for written labor protections, her motion to approve failed. Supervisors Doug Chaffee and Vicente Sarmiento highlighted the need for stronger written commitments to guarantee new jobs for approximately 20 workers at the Dana Point Marina Inn, which is slated for demolition to make way for the new hotels. Maria Hernandez, a spokesperson for the Unite Here Local 11 union, praised the Board's decision to seek written assurances for workers.
Boaters at the harbor have also voiced concerns regarding slip rental rates. Anne Eubanks, president of the Dana Point Boaters Association, noted in a June letter that a 30-foot slip increased from approximately $546 per month in June 2021 to about $936 per month, a 58% increase. A 60-foot slip saw an even steeper hike, from $1,374 a month to around $3,500 a month. Bob Olson, president of Dana Point Harbor Partners, disputed these claims, stating that market studies show current slip rates are “significantly below the market” average.
Supervisor Don Wagner raised an objection to a condition that required the developer to provide free meeting rooms to the county a few times a year, describing it as a form of "extortion." Supervisors Foley and Sarmiento countered that this was a reasonable negotiation for a public asset. Olson confirmed this was a specific request from Supervisor Foley and a difficult point in negotiations.
Olson stated that the overall harbor renovation project is about 70% complete. However, he noted that the new hotel leases are crucial for securing financing for the planned hotel developments. Without lease approval, the developer would be limited to remodeling the existing Inn, which Olson claims could result in a significant loss of annual revenue for Dana Point.
