Miramar Hotel Neighbors Drop Caruso Suit

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Los Angeles developer Rick Caruso said Tuesday that he and neighbors of the historic Miramar Hotel in Montecito have reached a settlement that should clear the way for redevelopment of the property into a modern upscale resort.

Caruso, chief executive of Caruso Affiliated, wants to build 192 luxury rooms, three restaurants, a spa, a beach club and a boardwalk at the site of the old seaside resort.

In a joint statement with Montecito residents Jean and Stan Harfenist, Caruso said both parties would work cooperatively to improve drainage problems, one of the remaining issues dogging the project. In return the Harfenists, who represent a group of neighbors, will drop their state environmental lawsuit and an appeal to the California Coastal Commission.

“I am pleased that we have put this chapter behind us and we can proceed with real planning for the hotel,” said Caruso in a statement.

Caruso, who acquired the property in 2007, has had to overcome a variety of procedural delays by residents, environmentalists and historic preservationists. Last fall he even threatened to throw in the towel and sell the property if Santa Barbara County officials didn’t take action one way or another on his proposal.

The county Board of Supervisors in December upheld the Montecito Planning Commission’s approval the project.

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