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Avenue of the Arts hotel wins OK for 15-story, 150-room expansion

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A high-rise expansion is coming to the Avenue of the Arts hotel in South Coast Metro following a unanimous vote from the Costa Mesa Planning Commission.

The expansion plans approved Monday night entail construction of a 15-story, 150-room tower to add to the hotel’s current 238 rooms, which occupy a six-story building. The new tower also will include a restaurant/lounge and banquet facilities, according to planning documents.

A six-story parking structure will replace the existing three-story one on the hotel site at 3350 Avenue of the Arts.

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The expansion will build on a years-long overhaul of the property, according to hotel General Manager Paul Sanford.

Sanford said there have been about $18 million worth of upgrades, renovations and additions since Rosanna Inc. purchased it in 2009.

The efforts have earned Avenue of the Arts recognition as Costa Mesa’s only AAA “four diamond” hotel.

Four-diamond hotels are “ stylish with upscale physical attributes” and “extensive amenities and a high degree of hospitality, service and attention to detail,” according to AAA’s rating system, which goes up to five diamonds.

“I just think it’s phenomenal that Costa Mesa is ready for a four-diamond hotel,” Sanford said.

A construction timeline and budget for the expansion are being finalized, he said Tuesday.

The proposal approved Monday is the third different project pitched for the property in recent years.

In 2007, the city approved a plan for a 23-story, 120-unit residential tower and new retail and other commercial space while reducing the number of hotel rooms to 200.

That project was revised last year to reduce the number of proposed condominiums to 100, remove the business space and maintain the current 238 hotel rooms.

After studying local development and economic trends, it became clear that expanding the hotel was a better long-term bet than adding residential units to the property, Sanford said.

“It made sense financially. It made sense for the community. It made sense to grow the north Costa Mesa area,” he said.

“We’re here for the long haul, and our decision is based on what’s best for the long haul.”

Planning commissioners said the demand for upscale accommodations is a strong indicator of the city’s economic climate.

“I love this project,” Commissioner Colin McCarthy said. “I think it’s fantastic.”

Hotel guests, he said, likely will spend money at local restaurants, shops or arts venues, multiplying the financial benefit for the city.

Commission Chairman Robert Dickson said he, too, “wholeheartedly and enthusiastically” supported the expansion proposal.

“It bodes well for the community that we have this incredibly desirable property,” he said, “and this is going to be such a great improvement to that.”

No members of the public spoke about the proposal during Monday’s meeting.

luke.money@latimes.com

Twitter: @LukeMMoney

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