Hearing Scheduled for Seaside Inn Settlement with Judge

Lillian Boyd, Dana Point Times

Dana Point City Attorney Patrick Muñoz provided an update regarding the status of Seaside Inn in Capistrano Beach.

A settlement agreement was reached by which the current owner agreed to allow the court-appointed receiver to sell the property.

The property along Pacific Coast Highway in Capistrano Beach was constructed around 1930 with some office space and 28 motel rooms. It was regarded as one of the last remaining roadside motels in Dana Point, helping to shape California car culture.

A receiver was court-appointed for the property per the request of the City of Dana Point after significant nuisance complaints and code violations. City staff attempted to work with the property owner over the course of seven months to bring the property into compliance, but after failure to comply with the city’s requests, the city sought the court’s assistance, according to a city press release sent in March.

A receiver acts as a representative in bringing the property into compliance.

Dana Point Times last reported in May that a judge had dismissed the owner of Capistrano Seaside Inn’s bankruptcy claim as a bad-faith claim and that both the City of Dana Point and the motel owner were ordered to have a settlement conference.

The settlement agreement was reached and there will be a hearing on Friday, July 26, with the judge overseeing the receivership to approve a proposed sale.

“At the moment, the parties are disputing which of the two potential sales the court should approve. As part of the settlement, any new buyer will be obligated to complete the renovation work as approved/permitted by the city,” Muñoz said in an email. “Since the permits have already been approved and issued, it is expected that work will commence on the project within a few weeks of any decision by the judge’s to approve a sale of the property.”

He added that as part of the settlement, any new buyer will be made a defendant in the receivership case in order to allow the court to continue to oversee the renovation work and ensure it is completed in a timely manner, consistent with the city’s approved plans.