Coastal Town Gives Developer A Major Challenge

An 87-acre former quarry in the coastal town of tract homes and homes about 10 miles south of San Francisco was purchased by Peebles Corp. last year as the proposed site for a 350-room hotel, 355 housing units, and a shopping center at the Quarry.

A 1983 ballot measure, though, requires a vote of the people before any housing is allowed on the property, which is zoned for commercial use. Undaunted, Peebles hired DPZ and spent millions of dollars to try and win local support for the project. Ultimately, residents rejected the proposed due to traffic and environmental concerns.

"Officials from the firm will now go back to the drawing board and come up with a plan that conforms to the local zoning code: 'We'll be shaping a project to include a major hotel and a retail use, which could be an outlet store or big-box retail. We're interviewing consultants and joint-venture partners.' "

Some opponents of the original plan now say "Peebles had threatened to put a Wal-Mart in the Quarry if his plans for a hotel and residential development were defeated."