One development project moves forward, another gets a reset, in San Juan Capistrano’s hotel race

SAN JUAN CAPISTRANO — Developers behind the Inn at the Mission San Juan Capistrano project are ahead in the city’s contentious hotel race, at least for now.

San Juan Capistrano has two proposals for hotels in its downtown historic district – Inn at the Mission San Juan Capistrano (formerly Plaza Banderas) and Hotel Capistrano by Kimpton.

Both proposals are mired in lawsuits, but the developers for Inn at the Mission San Juan Capistrano are moving forward with their construction, while the Hotel Capistrano lot has been sold to one of the most prominent developers in the area.

Bill Griffith’s Mission Commercial Properties has started construction on Inn at the Mission San Juan Capistrano, located next to the historic site. The project will include a 124-room hotel and two smaller buildings for mixed-use purposes.

The construction will be completed by the end of 2019, principal at Mission Commercial Properties Dan Friess said. It will be the second hotel in Orange County under Marriott’s boutique brand Autograph Collection. Lido House in Newport Beach, which opened in April, was the first.

However, Save Our Mission, a group of city residents, has filed a lawsuit against the city to block the hotel’s construction.

One of the main contentions is that Mission Commercial Properties has substantially changed the project since it was approved by the City Council in 2011, said Charles Krolikowski, attorney for Save Our Mission. Those changes – such as shifting the retail space to banquet rooms – require another environmental review, he said.

Friess, however, said the City Council determined those changes to be consistent with the plan passed in 2011, which already allows for banquet rooms.

Krolikowski said he expects a decision on his lawsuit by mid-2019. “They are undertaking that project at their own risk,” he said.

Meanwhile, Rancho Mission Viejo in October bought the Hotel Capistrano by Kimpton lot, less than a half-mile south of Griffith’s project.

O Properties, the previous developers for Hotel Capistrano, had sought to build a 102-room hotel. But Griffith in 2016 filed a lawsuit seeking to overturn the city’s approval of the project. A judge ruled in Griffith’s favor this past April, saying that parts of the project are inconsistent with the city’s general plan. 

The city and O Properties have appealed the ruling, San Juan Capistrano Assistant City Manager Jacob Green said in an e-mail on Tuesday, Dec. 4. It’s unclear what will happen if the city and O Properties prevail in the appeal.

Michael Balsamo, Rancho Mission Viejo’s senior vice president of governmental relations, said the company is exploring all options for developing the lot.

“We think it’s a great investment,” he said.