Apartments could replace Costa Mesa Motor Inn; some fear loss of affordable housing

A proposal to demolish the Costa Mesa Motor Inn and replace the aging complex with apartments will go before the city Planning Commission on Monday.

The project’s Newport Beach developer, Don Lamm of Diamond Star Associates, wants to demolish the 236-room motel at 2277 Harbor Blvd. and build 224 new apartments on the 4.15-acre site.

The Motor Inn is owned by Los Angeles-based Century Quality Management and is the company’s only motel. It was built in the early 1970s as the Ambassador Inn.

The project includes units ranging from about 730 square feet to 1,200 square feet. Most are one-bedrooms, though the largest have two bedrooms and a den.

City staff described the architecture as modern. Designs include square and rectangular building forms, metal finish balcony rails, stucco and limestone finishes.

Amenities include a pool, spa, gym, lounge, library, dog park, yoga deck, community garden, Internet cafe and outdoor barbecues.

The complex is designed with a five-story parking structure and 503 parking spaces, which meet city requirements.

The developer is not seeking any variances, but city staff noted a technicality with the parking structure. Areas south of the 405 Freeway are only allowed to be four stories tall, though exceptions have been made.

The parking structure is considered five stories — the fifth level is needed to comply with city parking requirements — but is actually four stories tall, or about 50 feet.

Lamm said the motel’s long-term tenants will receive at least 60 days’ notice before demolition begins and “generous” financial assistance packages.

“They’ll have time to plan and find another location,” Lamm said.

City staff said about 50 of the Motor Inn’s rooms are used for long-term occupancy.

Should the Planning Commission recommend the project, it will go before the City Council. If the council approves the project the motel will likely cease operations in summer 2016.

Lamm, a former Costa Mesa development official, initially presented the development to the council in May 2014 as a 236-unit project, in line with number of motel rooms. The council, with the exception of Councilwoman Sandy Genis, signed off on the initial screening.

Genis and others have expressed concern about the loss of affordable housing. Families and others rely on motels as a last-resort housing, they have said.

The council majority has called the Motor Inn’s potential demolition and subsequent redevelopment a win for the city. The motel is a blight, they argue, and attracts criminals who are particularly disruptive to nearby Harbor Boulevard businesses.

Last year, the Planning Commission declared the Motor Inn to be “operating as a public nuisance.” A code enforcement raid in 2013 claimed 490 health and safety violations found with most rooms on the property. The city issued more than $40,000 in fines.

Monday’s commission meeting begins at 6 p.m. in City Hall, 77 Fair Drive.