In January 2021, the Laguna Beach Independent reported that real estate developer Mo Honarkar was facing foreclosure on a $195,000,000 loan backed by 19 properties, including the Hive complex, the Royal Hawaiian restaurant, and the Holiday Inn across the street from Ralph’s market. Additionally, the Indy revealed that Mr. Honarkar’s lease for the Hotel Laguna, which he acquired in 2018, had a past due of $7,000,000. Despite the gravity of these contentions, it now appears that Mr. Honarkar has descended further into the murky morass.
Last year, between June and August, the City issued three separate stop-work orders for failure to secure building permits for exterior and interior work at the historic Hotel Laguna. Notwithstanding being warned by the City in August that any future stop-work orders would result in more severe penalties, Mr. Honarkar continued to proceed with unpermitted construction at the Hotel Laguna. Last week, the City issued its fourth stop-work order to Mr. Honarkar, and it is now implementing daily visits to the project site to ensure no work is occurring. The City will also report this matter to the Contractors State License Board.
Bottom line: there has not, nor has there ever been, a permitted comprehensive plan for the Hotel Laguna project and yet construction, albeit illegal, has been allowed to go on for over a year. I dare say that anyone who has undertaken a construction project in Laguna Beach, whether commercial or residential and, in good faith, has followed the proper approval process, can only conclude that this pattern of conduct is less than honorable.
The Hotel Laguna is Laguna Beach’s jewel in the crown, and its historic preservation demands it be treated like the gem it is. Its old bones cry out for love and kindness. Enough of the shenanigans. The magnitude and importance of this project requires visionary oversight, prudent and ethical stewardship, earnest public review, and credible financial support. Clearly these elements are missing. Until these things happen, this nightmare needs to be shut down for good. It’s time to transition to new ownership.
Randy Lewis
Laguna Beach
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Mr. Lewis, very well stated. In addition to shutting this project down due to this potential permit abuse, along with Mr. Honarker/LBC and his contractor, city management staff overseeing this historic renovation project should be held accountable. And if what Mr. Paul Freeman said in his earlier Indy column that City Council members were made aware and did nothing, we have a very serious government collapse and system failure on our hands. We should not accept such irresponsible performance from our city employees or our public officials. If we cannot trust that they will do their jobs and perform them honestly, efficiently and effectively, we will pay dearly in the long run. I understood that our City Manager John Pietig (retiring) and current ACM Shohreh Dupuis (soon to be our next city manager earning more than our surrounding larger cities city managers) were meeting with Mr. Honarker regularly on all of his projects. Seems most have ended up in some type of controversy and/or legal issues and collectively they must be costing us handsomely with the need for such dedicated and extensive staff time. Why do they get accolades and rewards from our city council with performance track records like this? It’s baffling.
Laguna Sees ANY Development As Big Dark Money Taking Over The City! . . Anyone with the banking capital and vision to try is the enemy. FYI he’s local and trying . . If you want assurance of a total make over for any deal you’re concerned with then let the big players in . Marriot, Rexford, Hyatt, Hilton and I’ll GET done. But NOOOOO, you idiots don’t want that either. You’re GD lucky the Montage was able to cow-tow to put up with the park, art and parking you extorionists forced them into. Laguna will always be a podunk wanna be to Santa Barbara, La Jolla, or Carmel, because of the drugs locals took and the lack of their education in their formative years.