Santa Monica : Ban on Beach Hotels Sought

State Sen. Herschel Rosenthal (D-Los Angeles) is proposing legislation that would ban construction of hotels on state-owned beaches, including the spot on Pacific Coast Highway in Santa Monica where restaurateur Michael McCarty is trying to build a luxury hotel.

“This law will make it crystal clear that state oceanfront property is not for sale or lease to the highest bidder,” Rosenthal said in a written statement. “State beaches are owned by the taxpayers, and they exist for the enjoyment of the public.”

McCarty was selected by the Santa Monica City Council as the developer for the property at 415 Pacific Coast Highway based on his proposal for a hotel and community center on the beach site. The plan encountered bitter opposition from the city’s slow-growth movement, however, and in November, 1990, voters soundly rejected it in a referendum. Santa Monica operates the local beaches under a long-term lease with the state.

A bid by McCarty to gain state approval for his hotel plan passed the state Legislature last year as a last-minute amendment to a parks appropriation bill, but the entire bill was then vetoed by Gov. Pete Wilson.

Taking another tack, McCarty has sued Santa Monica for breach of contract, claiming that he has a valid development agreement because local voters did not have a legal voice in what should be built on state property.