COSTA MESA : City Council OKs Low-Income Hotel

Costa Mesa Village, the county’s first single-room-occupancy hotel for the working poor, has been approved by the City Council.

In a 4-0 vote, with Councilman Peter F. Buffa absent, the council Monday night approved the proposal to convert the Travelodge Hotel at 2450 Newport Blvd. into a low-income apartment building. The council also agreed to help finance a portion of the hotel by lending the developers $500,000.

“It is important that we start looking at low-income housing needs in the community,” said Councilman Jay Humphrey.

The vote is one of the final steps developer Butler-O’Bryon & Associates has to take before the hotel can be purchased and converted. The firm has been working for about a year with the city, county and other groups to finance the project.

Under the plan approved by the council, 96 furnished units will be rented starting at $456 a month. Each room will have a bathroom, linen, a television set and a kitchenette and will be available for people who make less than $18,450 per year.

The $4.4-million project is a combined public-private venture, with about 35% of the financing coming from public agencies.

Advocates for the poor lauded the decision as a step in the right direction.

“I think it is wonderful and will fulfill a need,” said Jean Forbath, founder of the Share Our Selves charity. However, she added that the rents still would be out of reach for those who make minimum wage, and she urged the council to allow single mothers with children as tenants.

Under the conditions of approval, the city restricted renting units to only one person. At least eight of the units could accommodate mothers with one child, so the council agreed to make this exception.

Forbath’s recommendation and other public comments prompted a discussion on occupancy limits and the council’s ability to impose restrictions in light of recent court cases in other cities. The issue became a major sticking point Monday night and almost led to the collapse of the entire project.

At the urging of Councilwoman Sandra L. Genis, the council considered placing a provision in the loan documents that would prohibit more than two people from occupying each unit.

However, developer Merrill Butler told the council that it would further delay, and therefore jeopardize, the project. At one point during the discussions the developers threatened to drop the plans.

“I am upset to have this come down at the last minute. It is not right,” Butler said. “If we change any loan documents, it is going to put us back.”

After a heated exchange the council, including Genis, accepted the documents as written. “We would like to be assured we have loan documents that call this an SRO . . . but I am not willing to jeopardize this project,” said Mayor Mary Hornbuckle.

The developer still must go before the county to finalize the plan. Work is slated to begin immediately after county approval, with completion in the spring.