$ 1 million settlement in expensive California Beach hotel dispute

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The owners of a beachfront hotel in Santa Monica built without proper permits have agreed to pay Los Angeles County $ 1 million in penalties and restitution, prosecutors said on Wednesday.

As part of the final judgment, the Shore Hotel agreed to provide a number of rooms at discounted rates, the LA County District Attorney’s Office said.

The civil lawsuit alleged that developer Sunshine Enterprises violated state law by falsely telling the California Coastal Commission that the hotel would provide affordable accommodation to replace two older, cheaper motels on the site.

Instead of waiting for its license to be approved, Sunshine demolished the old motels and built the new property, which the company’s website described as a luxury boutique hotel.

Up to $ 500,000 in restitution will be used to provide discounted room rates to first responders and other essential workers in the COVID-19 pandemic, prosecutors said.

The Shore Hotel said in a statement Friday that its owners believed the settlement would “benefit hardworking members of the community while putting their employees first.”

Sunshine Enterprises previously imposed penalties of $ 15.6 million on the state’s coastal commission.

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