San Clemente’s idyllic coastline is about to get more crowded after city council members approved a hotel development while nearby residents protested the proposal.
Some council members say it’s a necessary step to help the city generate much-needed revenue through hotel bed taxes.
Officials approved a height exception for a hotel development at the Outlets shopping center, featuring a rooftop bar and restaurant space that nearby residents say will cause noise and lighting issues — as well as blocking some residents’ ocean views.
The hotel, expected to feature up to 130 rooms, was approved back in 2004, but the developer submitted a request for an extra fifth floor this year to accommodate the rooftop bar, restaurant, outdoor dining area and elevator towers.
The updated application also required a height exception since the proposal went beyond the city’s maximum height limit for new developments.
The city’s maximum height for new buildings is 45 feet to the highest point.
During Tuesday night’s meeting, council members approved a height exception on a first reading and updated project plans to allow the hotel to extend up to 62 feet at the highest point.
That’s in line with a nearby movie theater that council members also previously approved a similar height exception for.
Councilmember Mark Enmeier said the new hotel will help the city generate additional hotel bed tax revenue — a lodging tax generated specifically from hotels and Airbnbs.
He said San Clemente makes much less revenue in these taxes when compared to their neighboring city of Dana Point, although both set their bed tax rate at 10%.
For the current fiscal year, Dana Point has estimated to generate over $16 million in revenue from bed tax. That’s 34% of the city’s general fund revenue from bed taxes alone, according to the city’s budget.
“[Dana Point] can do a lot of things with that to help the entire community,” Enmeier said.
San Clemente officials estimate the city will get about $3.5 million in bed taxes this fiscal year.
“We have champagne taste on a beer budget, and we need to generate revenue to pay for our beaches, sand, soccer fields, youth programs, public safety,” Enmeier said.
“Overall, this hotel will be a great asset to our city,” he said.
Residents Protest Hotel Noise, Lighting, View Blockage
Residents who live near the Outlets, specifically at the Marblehead neighborhood on the other side of the 5 Freeway from the shopping center, said the rooftop bar will create excess noise and light pollution in addition to blocking their views of the ocean and Catalina Island.
Some residents also voiced concerns that many of the approvals for this development, including parts of the environmental review, were originally done in the ‘90s and early 2000s.
“I’m a resident of Marblehead estates, and the additional height of the hotel building will obstruct the views from my home for Catalina Island and Dana Point headlands,” one speaker told councilmembers during the meeting. “In addition, the noise from the rooftop bar will be extremely invasive. The [environmental impact report] that was done for the property is out of date and irrelevant.”
Staff members confirmed that the hotel is not allowed to produce any amplified sound and is also not permitted to serve alcohol past 10 p.m.
But speakers at the meeting still maintained concerns about the noise levels from music or loud conversations on the roof that might travel to their homes.
“I think it’s naive to assume that you can mitigate that noise level, even if you don’t serve alcohol past 10 p.m.,” another resident, who lives near the Outlets, said at the meeting. “I can hear the ocean from my house at night sometimes. Noise will travel incredibly fast.”
Council members said they don’t think noise or light should pose any issues due to the city’s municipal code and restrictions already in place for the hotel.
“The light issue will be addressed and has been addressed, the noise issue is clearly not amplified,” Mayor Steven Knoblock said at the meeting. “I think the benefit for the city and community would be, in my opinion, substantial.”
Council members agreed that the city needs an upscale hotel, especially ahead of the Olympics in 2028, when the city is expected to host the surfing competitions.
“If sound becomes this issue from the rooftop bar we can address that, and we can look at that as it comes,” Enmeier said. “Right now though, we have the Olympics coming up, we have other events coming up, and we don’t have a hotel in this city that really shows off what our city is about.”
Tim Fleming, a representative from the developer, also assured residents that noise and lightning issues are governed by local city rules.
“This is a five-star hotel now, and this rooftop lounge is a public lounge,” he said. “This would be a great asset in the community in terms of a place to go.”
“I can’t promise this of course, but the way it’s envisioned now, with the conditions that would come with this action, it would be restricted and a reasonable occupancy of this type of space,” Fleming continued, “something that can complement San Clemente.”
Councilmember Rick Loeffler agreed that the city needs a nice hotel for visitors to enjoy.
“There’s a lot of pluses to it,” he said at the meeting. “I will commit to doing everything to make sure that it’s not a music venue or wedding venue.”
Angelina Hicks is the Voice of OC Collegiate News Service Editor. Contact her at ahicks@voiceofoc.org or on Twitter @angelinahicks13.