SAN CLEMENTE : City Denies Mansion Developer Extension

A developer who has exclusive rights to renovate the historic Casa Romantica mansion has failed to win an extension of a city deadline for submitting a proposal for the redevelopment project.

The City Council decided last week to call for bids from other developers unless Maureen Capiello Gates, who currently leases Casa Romantica, acts before Feb. 15.

In October, the council granted Gates exclusive rights to submit a proposal for renovating the historic mansion and gave her 120 days to turn in a specific plan.

“I think we’ve gone the extra mile to give (Gates) the first shot” at developing Casa Romantica, Mayor Scott Diehl said.

The city purchased the mansion, built on a scenic bluff overlooking the ocean by city founder Ole Hanson, for $2.5 million in 1989. Gates has been working with the San Clemente Historical Society to purchase Casa Romantica and turn it into a vacation resort, featuring about 80 time-share units and a restaurant.

A representative for Gates said that the developer has run into problems trying to market the complex to prospective investors. Time-share groups want to know the selling price of the site, which the city hasn’t yet negotiated with Gates.

Gates was also asking for extra time because a major hotel chain has recently shown interest in the property, said Harry Root, executive director of the Casa Romantica Historic Resort.

City planning officials said there are ways of compensating for land costs and suggested that Gates turn in as complete a proposal as possible by Feb. 15.

If she misses the deadline, Gates can still submit plans during the next four-month period when proposals would be accepted from other developers, city officials said.

“There’s nothing that precludes (Gates’) proposal to come back in and compete with the other” developers’ proposals, Diehl said.