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Caruso Plan to Bring Back Miramar Receives Unanimous Conditional Approval from Montecito Planning Commission

MONTECITO, Calif.-(Business Wire)-August 29, 2008 - Eighteen months after he purchased the storied Miramar Hotel property in Montecito, California, Rick Caruso's plan for a new hotel at the site received conditional approval from the Montecito Planning Commission.

"The unanimous vote by the Planning Commission to conditionally approve our plan, though non-binding, was a decisive step forward for this project," said Rick Caruso, CEO of Caruso Affiliated. "We are grateful to the Planning Commissioners for their input. We tried to do everything they asked, and we're pleased that they responded positively to our plan. We look forward to being back in front of them soon to finalize the plan. Montecito has waited a long time for the Miramar to come back, and we want to deliver it."

The vote followed a 7-hour meeting - Caruso's third appearance before the Montecito Planning Commission since July - in which Caruso unveiled significant revisions to the project in response to comments made by the Commissioners and the community.

"We heard you loud and clear at our last meeting," Caruso told the Commissioners, before he launched into a description of his proposed changes. Caruso's proposed changes included:

— Moving the guestroom and ballroom buildings along South Jameson Lane further back from the road;

— Lowering the height of the Main Building an additional four feet;

— Reducing the overall room count by 12 rooms by removing two-story 24-room guest building and replacing it with two one-story six-room cottages;

— Moving the guest rooms further away from the western property line;

— Reducing the overall floor area of the hotel by the elimination of rooms;

— And, removing lighting from the tennis courts.

"Our goal from the very beginning has been to build a great hotel that the community can embrace," Caruso said. "This latest round of changes continues that process, and we're pleased that the Commissioners responded positively. We have responded to all of their requests, and we are hopeful that on October 8th we will receive final approval for our project," added Caruso.

The plan was unveiled in front of a full house of community members, the strong majority being in support of the plan.

Caruso also provided updated traffic analysis to the County that showed with the reduction in rooms the project will generate even less traffic than the previous plan for the site. The Planning Commission also made two additional key decisions regarding the project. The Commission voted to reverse its previous decision on requiring an environmental impact report on the project's water supply, unanimously stating that information received both from Caruso and the Montecito Water District satisfied their questions and concerns. Additionally, the Commission voted to confirm Caruso's ability to use the hotel's beach parcel and easement along the railroad tracks in its calculation of overall lot size.

Caruso's plan has received the endorsement of all of the local homeowners associations, including the Montecito Association, and has overwhelming support throughout the community. Caruso purchased the nearly 16-acre site in February 2007 and released his first detailed plans for the project in June 2007. Since that time, Caruso has revised the plan a number of times in response to community input.

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