Hotel proposal draws wait-and-see reaction

Noaki Schwartz

BALBOA PENINSULA -- Those who would be most affected by a proposal to

turn a mobile home park and an American Legion post into a luxury hotel

said Wednesday they aren’t jumping to conclusions until the project

further unfolds.

“We’re going to watch very carefully and do whatever is necessary,” said

Stewart Berkshire, president of the Marina Park Homeowner’s Assn.

Members of American Legion Post 291 also are maintaining a wait-and-see

attitude about the City Council’s Oct. 25 study session, where city

leaders will hear the proposal submitted by Sutherland Tala Hospitality.

“The City Council has chosen to let [the developer] Steve Sutherland

present his plan to the study session, so we’ll see what he says there,”

said Donald Donaldson, a 42-year member of the American Legion.

Nearly a month ago, Sutherland visited the respective communities and

presented his proposal for a 156-room resort. The proposal estimates the

hotel would produce $2.8 million annually in city revenue.

Sutherland could not be reached for comment.

Though they agreed the drawings were attractive, legion members felt the

hotel could be built somewhere other than the site they have occupied

since the 1930s, Donaldson said.

“We listened to Sutherland and told him we were only interested in

renewing our lease,” he said.

Both leases for the 58-home Marina Park and 1,500-member American Legion

building will expire in March.

Donaldson was unmoved by the developer’s proposal to give the legion

$500,000 to help it relocate. He said the veterans’ organization has

already relocated once and has substantially invested in its existing

building and docks.

“We thought, ‘this is very nice’ but it’s not something that’s real,”

Berkshire said of Sutherland’s presentation. “The city hasn’t received

any alternative proposal -- that is a serious proposal with a

commitment.”

The council will review the history and status of both properties, as

well as the hotel proposal, said Councilman Tod Ridgeway.

“I think as a city, we have a financial evaluation to make and we affect

a lot of people,” he said.

Clear the way?

What do you think about the proposal to build a beachfront hotel where

the Marina Park mobile homes and American Legion Post 291 now stand at

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