DANA POINT : Time-Share Resort Moratorium Voted

The City Council this week declared a 45-day moratorium on the construction of time-share resorts, an action that some business owners said could derail resorts now planned for the city.

The council voted 4 to 1 to establish the moratorium to allow city officials time to study the impacts of the controversial resorts. Mayor Judy Curreri cast the dissenting vote.

Councilwoman Karen Lloreda, long an outspoken foe of time shares, said the city needs 45 days to study a variety of issues including the collection of bed taxes, traffic, building standards and the conversion of existing hotels, motels and apartment units into time shares. She said the current proliferation of potential time-share projects necessitated immediate council action.

“This is not a ban on time shares in Dana Point,” said Lloreda, who lives in the Capistrano Beach neighborhood where the two existing time shares are located. “This just gives us an opportunity to study the various issues.”

City Atty. Jerry Patterson said a report on a proposed ordinance regulating time shares would be presented to the council at least 10 days before the moratorium expires. At that time the council could conduct a public hearing and either adopt the ordinance or extend the moratorium.

Because time shares create traffic and parking problems but do not generate bed taxes, many city officials claim they foster severe impacts on the city without offering revenues in return. Motels and hotels, on the other hand, must pay a 10% tax to the city from room rentals, considered vital revenue for the city’s general fund.

Before the council vote, businessman Git Patel told the council he was in the midst of discussions on converting his motel to a time share and urged the council to abandon the moratorium idea.

“You are delaying business decisions that are being made right now,” Patel said, adding that he was speaking for owners of three properties in Dana Point and Capistrano Beach.

Patel is one of several property owners along “Time Share Row,” a section of Pacific Coast Highway at the southern end of the city where the two current time share resorts are located, who hope to build new time shares, city officials said. An apartment owner in Monarch Beach has also discussed a conversion project with the city.

Although the Dana Point General Plan contains language that specifically discourages time shares, the old City Council--before the June election-- appeared to be open to new time-share proposals.

But new council members Harold R. Kaufman and Toni Gallagher both voted for the moratorium.

“Karen (Lloreda) and I have always been against time shares,” said Councilman William L. Ossenmacher. “It looks like we picked up some support.”