State levies record fine against owner of upscale Santa Monica hotel

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State levies record fine against owner of upscale Santa Monica hotel
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The Coastal Commission fined a developer that promised to build a budget hotel in Santa Monica but instead put up a luxury property.

The Shore Hotel in Santa Monica was built in 2011 and has room rates ranging from $300 to $800 a night.

Sunshine then demolished the motels and built the pricey Shore Hotel in 2011 without proper permits in violation of the state Coastal Act, whose mandate includes protecting “lower cost visitor-serving facilities along the coast,” the agency’s staff said in its recommendations to the commission. The fees are aimed at making up for the loss of lower-cost lodging in the area by helping develop affordable properties elsewhere in the coastal area, such as motel rooms, campsites and hostel facilities.

So the commission postponed granting the operating permit and asked its staff to work with Sunshine on finding another solution. Prior to Thursday’s vote, Sunshine said it “fully supports the conditions required by the Coastal Commission staff, including payment of mitigation and enforcement fees” in order to reach a “full resolution of this matter.”

Under the initial proposed consent decree, Sunshine was to pay its penalty with a first payment of $5.6 million and annual payments of $1 million over the next 10 years.

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