Impact on Homeowners Near Village Center

 

Phase 3 moves a hotel to the Village Center and adds bocce courts near residents’ homes. Before Phase 3, the Specific Plan (governing document) specifically prohibited a hotel in the Village Center and sports courts were only at the club. While these changes increase Shea’s profit, Shea reviewed what would be in these locations when they sold homes to new homeowners. People purchased their homes with this understanding. Replacing businesses with a hotel in the Village Center with a rooftop bar and adding bocce courts next to a resident’s homes hurts home values.   

 

Shea’s offer of the $4.2M financial compensation to the HOA is conditional based on community support and approval by the Board of Supervisors. In the August 2021 Town Hall presentation to residents, it was stated that the financial compensation offer is dependent upon community support for all aspects of the Phase 3 Amendment and the offer will be withdrawn if the Board determines the community is not in favor of the amendment and Shea may pursue options without community input.

 

If the hotel was kept at the original site (it’s a short walk to the Village Center), the Village Center hotel location could then be used for the bocce courts and Village Center parking. Home values would not be impacted, congestion at the intersection would be reduced by about 10%, and the developer would be able to meet their Village Center parking needs. At a public meeting the developer acknowledged that, while they need a hotel to appeal to new Village Center businesses, keeping the hotel at the resort site was never reviewed as an option.

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If Shea kept the hotel in the original location, it would decrease their profit. They would lose about 8 of the 122 homes. An independent estimate of their profit (more than one year ago) is that Shea should make $35M on the new homes. This profit is expected to increase once Shea is ready to sell new homes. 

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