Fifth District Supervisor Katrina Foley said she wants the surrounding community, those who rent boat slips, business operators and visitors to the Dana Point Harbor to feel confident the remodel inked in a lease agreement by the county in 2018 is moving forward in a transparent way and that the massive overhaul will be completed by 2026.
To help, she hosted a town hall this week with the three developers who make up the Dana Point Harbor Partners that was attended by at least 250 people – most of whom are boaters. Matt Miller, the county’s chief real estate officer, was also there.
During the event, Foley discussed renovation phases, obstacles and the increased slip rates. She also talked about an oversight committee that is being formed.
“I’ve gotten emails and calls from people who are feeling like they’re not heard and want to know what’s going on in the harbor,” Foley said, adding that she is intent on making the process transparent to the public, including posting documents, approvals and other information related to the harbor’s progress on her website. “It will take a bit of time because people feel like the county and Dana Point Harbor Partners have not been transparent and haven’t been open about financing and phasing.”
Joe Ueberroth, of Bellwether Financial Group, is handling the marina part of the project; Bryon Ward, president of Burnham Ward Properties, is heading up the development of the harbor’s commercial core; and Bob Olson, of R.D. Olson, is expected to build two hotels once entitlements from the California Coastal Commission come through. At a July meeting, the commission is expected to look at the proposed affordable surf lodge and boutique-style hotel.
Under the public-private partnership, the developers are expected to design, fund and build the improvements, then operate those portions of the harbor through the life of the 60-year lease before returning the property to the county. The Orange County Sheriff’s Department’s Harbor Patrol building and docks are not part of the partners’ lease.
Boaters moved into the first new docks recently completed and the demolition on the next phase of docks is expected to start in May.
Foley said Ward assured her the planned three-level parking structure that is needed for the much more retail space that will be created as well as boater and visitor parking will break ground in January. The structure was first expected to break ground in January 2022, then in June 2022, then in January 2023.
The delay has been in getting the correct permits from the water district, not an issue of financing as some have speculated, Foley said.
“They have to show proof of financing before each phase of development,” she said. “We’ve got to keep the project moving forward. We’ve been on the phone with the water district and we’ve been outreaching to Dana Point and the Coastal Commission to make sure the project stays on track; otherwise, the cost will keep growing.”
When the renovation was first discussed in 2018, the projected cost was estimated at $350 million; recently, Ueberroth said the number has grown to closer to $500 million, in part due to the change in the economy and higher interest rates.
During the town hall, many boaters repeated their frustrations over slip increases announced in 2021 before renovations in the marina began.
A group has filed a lawsuit in court, arguing the higher costs are not in compliance with the Tidelands Act because they allege they would limit public access. Uebberroth has called the argument baseless and said there is no violation, adding that the rate continues to be below the market for the region.
Foley called the slip increase “too high” and said she’s requested details from the Tidelands fund to better understand the flow of revenue.
“If I had been supervisor then, I’d have advocated for a stepped-up process,” she said. “You can’t catch up overnight. We should have had a phasing so people would be comfortable with the pricing.”
She said the new oversight committee that will be assembled with probably seven people by mid-May will address the slip rates and look at options for grants as well as ask U.S. Representative Mike Levin for funding.
“If we can get offset funding to reduce the overall cost of the project, we can get some fees reduced,” Foley said, adding that keeping the harbor accessible is important.
“When (Foley) came to the first meeting, people peppered her with questions about the boat slips and progress; then, at this meeting, you could see she did her homework,” Bob Mardian, who operates Wind & Sea Restaurant and Harpoon Henry’s in the harbor. “I have confidence in her drive for transparency.”
Mardian said he remains a bit leery of promises the developers have made, while also recognizing some of the real challenges they face with the project. For example he said a rising water table is likely complicating planning for the parking structure.
In the meantime, Mardian said both his restaurants have been doing well during this limbo time. Like other harbor tenants, he’s now on month-to-month leases for both spots. He’s been told with the renovation, he said, the entire Mariners Village will come down, and Harpoon Henry won’t be rebuilt, but Wind & Sea will continue in the new harbor.
Anne Eubanks, who is president of the Dana Point Boaters Association, said she is skeptical the harbor overhaul can finish in the timeframe being discussed – by 2026 – given the time it has taken so far and the need to fund such a large project.
“I will believe it when I see it,” she said.
Foley said she remains committed to the new harbor and moving it forward.
“The phasing has been amended and the completion deadline is 2026,” she said. “If they don’t complete it, then there will be fines.”
