Holding Pattern

Project Bella’s future at the American Tin Cannery remains in question

It’s mid-morning on a Tuesday in early August, and a crowd of hungry tourists wait eagerly for their names to be called at First Awakenings restaurant in the American Tin Cannery. Past that crowd, the mall is mostly empty. At the far end, a locked glass door greets visitors at the office of Domaine Hospitality Partners. Inside, an artist’s rendition of the company’s aspirational goal – turning the mall into a luxury hotel – sits on an easel in the corner.

Talk among the mall’s workers used to be about how soon their stores would close to make way for Project Bella, the 160-room LEED-certified resort. But since February, that talk ceased, and nothing’s been said by property management, according to one store manager who asked not to be identified. “Customers say, ‘We thought you’d be gone by now.’”

Had plans progressed for Project Bella, it’s possible they would have been gone. But since a falling-out between Domaine’s partners last year – and the expiration of the company’s development permit with the city of Pacific Grove in February – there’s been little movement, despite repeated assurances from a company spokesman that Domaine fully intends on building Project Bella.

On July 15, Domaine’s lease option with the property owner, Foursome Development, expired. Foursome COO Mike Zimmerman says they’re working with Domaine on extending the lease.

However, there are signs troubles continue for Domaine. Partners Ron Meer and Gen. Wesley Clark attempted this spring to sell equity shares to investors – fractional ownership of the company and voting rights – but only sold $25,500 of $300,200 worth of shares offered, according to a form filed by Meer with the U.S. Securities and Exchange Commission. (Meer did not respond to a request for comment by deadline.)

And on Aug. 1, Meer was ordered to pay $386,500 in an Orange County breach-of-contract case. The court found he was negligent in paying back a consultant who assisted him in the short sale of a Newport Beach home in 2009.

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