The California Coastal Commission has taken a pivotal step in determining the fate of the Rosewood Miramar Resort’s expansion by voting against the appeals this week. The decision will pave the way for billionaire developer and Miramar owner Rick Caruso’s proposed project that includes affordable housing aimed at the resort’s staff and additional commercial spaces in Montecito.

The expansion includes 26 affordable housing units for permanent use by the resort’s workforce, eight market-rate apartments, and 17,500 square feet of commercial space anticipated to host boutique shops and a café.

The expansion will repurpose two of the resort’s parking lots: the affordable housing will nestle behind the hotel on its eastern lot, while the market-rate apartments and retail elements are sited on the northwest lot near the All Saints-by-the-Sea Episcopal Church.

The project received endorsement from the Santa Barbara County Supervisors last December, who dismissed appeals ranging from concerns over construction impacts to flood risks heightened by climate change. Caruso and his team maintain that the expansion plan encompasses substantial safety measures, including strategies that align with sea-level rise projections and effective stormwater management systems.

However, the proposal has not been without its critics. UNITE HERE Local 11, a union representing hotel workers, highlighted the perceived inequality in the site’s development layout. They urged Caruso to reconsider the placement of the buildings, advocating that the affordable housing should occupy the higher, safer ground set aside for luxury retail.

“There is no reason to put the housing in the flood zone in this project. For previous projects, Coastal Commissioners expressed concern about putting housing in a flood zone, but hospitality workers desperately need housing. Here there is a simple solution: just switch the locations of the affordable housing and the retail, and let workers live on the safer ground,” said Kurt Petersen, Co-President of UNITE HERE Local 11.

Further appeals were lodged by Heal the Ocean, an environmental nonprofit, which states it supports affordable housing but insists it be placed outside the flood zone for safety. The organization highlighted the current traffic congestion issues around the Northwest Lot, presenting video evidence of fire trucks struggling to navigate the narrow roadways with parked cars on either side.

“The Miramar Hotel is located in a tight area, and already Eucalyptus Lane is often blocked by
cars jockeying to get to the beach and cars that have spilled over from the hotel. The addition of
restaurants and boutiques to attract more people to this area is to invite more congestion, and
with it, concerns for public safety,” Heal the Ocean stated in a letter to the Commission.

Ultimately, the Coastal Commission decided the appeals did not substantiate a “substantial issue,” thus negating the need for further “de novo” hearings with the agency.

This decision by the state agency enables the Miramar Redevelopment to advance without additional conditions targeting coastal issues, marking a significant leap forward for Caruso’s expansion vision.

“We are deeply proud to now move forward with this innovative plan that will allow The Miramar to do even more to serve our dedicated employees, our guests and all of Montecito,” said Caruso in a statement. “We sincerely appreciate the partnership and trust of hundreds of neighbors and community members who helped guide and improve this plan over more than two years, and we will now turn our focus to bringing this important plan to life.”

Caruso also pointed out this project represents the first new affordable housing in Montecito in over three decades, other than the four affordable units currently at the Miramar.

The Miramar’s history dates back to 1876 when a couple purchased the 20-acre ocean front property and eventually built a separate cottage for visiting friends and continued to expand until 1910 when there were 29 structures on the property. The property was sold to Paul Gawzner in 1939 who owned it until 1998, when Ian Schrager purchased it for $31.7 million. The hotel in 2000 to begin renovations and was set to reopen in about 18 months but it sat until 2005 when Ty Warner purchased it. In January 2007, Caruso purchased the Miramar for an undisclosed price and reconstruction began in 2016 with its grand reopening in 2019 as the Rosewood Miramar Beach.

“Since its opening, the Miramar has been a gem of the Central Coast and a powerful economic driver that benefits the entire region,” said County Supervisor Steve Lavagnino, who served as Chairman of the Board of Supervisors when the Miramar was approved in December. “This proposal will only strengthen the Miramar’s role as a responsible employer and a valuable neighbor in Montecito.”

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