For a decade, Monaco billionaire Patrice Pastor has acquired more than $100 million in properties across Carmel. But his long relationship with the town has seemingly come to an acrimonious end this week in the wake of a city council decision that resulted in further delays on one of his major construction projects.
Pastor, in a written statement sent to SFGATE on Friday, pulled no punches. “Following this latest City Council meeting it’s clear that I need to reconsider my investment in Carmel,” the statement said. “We are not treated the same as everyone else, I suppose we are now at the point where we need to accept we are not wanted and draw the necessary conclusions.”
“It’s time to leave this strange community,” he continued, “if you can call it a community.”
When SFGATE asked Friday what immediate future plans Pastor has or specifics about a pending exit, Claire Totten, Pastor’s spokesperson, wrote in an email, “I don’t have anything further to share beyond those comments.”
Pastor’s company, Esperanza Carmel, has bought, managed and, in some cases, rehabilitated many marquee properties in the oceanfront town, with varying degrees of success. Among the more notable properties currently in his portfolio are the L’Auberge Carmel hotel, the Carmel Beach Hotel, the Eastwood Building, the Hog’s Breath Building, the La Rambla Building and the Forge in the Forest.
Other structures of note in the area that Pastor owns include the Frank Lloyd Wright-designed home in Carmel, which is known as the Mrs. Clinton Walker House, and the Rocky Point restaurant, coupled with a recent expansion into Big Sur following the acquisition of the Village Big Sur in May.
But it seems, at least for now, that Pastor is done with Carmel and his projects in the area. His comments were sparked by the delay of a planned development on Dolores Street, south of Seventh Avenue, a 30,000-square-foot retail and residential space known as the JB Pastor Project.
That proposed project is close to another one of Pastor's other unfinished developments on the same street, a gaping midtown hole — which stretches half a city block and has come to be referred to as “The Pit." Its official name is Ulrika Plaza, a proposed retail and residential development covering over 38,000 square feet. In August 2023, the Carmel Planning Commission approved that project unanimously after three years of back and forth, but no work has materialized on the project.
Dee Borsella, who owns a boutique called Ruffle Me to Sleep across from “The Pit,” told SFGATE during a visit in late July that she has been waiting to see “action, any action” at the hole across the street for years.
At the same time, prior to the Aug. 4 meeting, she speculated that further delay could also put the project in jeopardy wholesale. “When he got his approval from the Planning Commission in August of ’23, I was told he had two years to do something with it,” Borsello told SFGATE. She said that Pastor himself came to visit her last year and assured her that construction was going to start in September 2024.
“Well, August ’25 is right around the corner, and nothing’s been done,” she noted.
On Monday, the city council held a special meeting to consider the appeal of the JB Pastor Project, which Carmel attorney Krista Ostoich filed on behalf of 11 residents.
They wanted the city council to review the project again, based on what they felt were missteps from the planning commission in its approval. Those missteps, according to the appellants, included the project’s exemption from having to undergo an environmental impact report, as well as its noncompliance with the zoning laws, among other considerations.
The project, along with Pastor’s involvement, has divided the town. “This has just been an embarrassment for the city, an incredible embarrassment,” Karyl Hall, a former member of the Historic Resources Board, told the city council on Monday. “Some of the appealers are my friends, and I know there are various different reasons they have appealed, but I obviously don’t agree with them. … He does quality work. He’s done excellent work. He’s saved our historic structures. We are lucky to have him, and if he does anything that is not in the character of Carmel, I’ll be here complaining.”
Planning Commissioner Mel Ahlborn also defended the commission’s decision to allow the project to go forward and suggested other factors may be getting in the way. “This seems to be a rather emotional case,” she told the city council on Monday. “I wanted to weigh in. When the Planning Commission made its decision on this project, they based their decision on its conformity with the general plan, with the municipal code and with the local coastal program.”
Others said there is still work that needs to be done in terms of vetting the historical value of the project’s neighbors and seeing how it would fit into the neighborhood wholesale. “A proper assessment of how the new project relates to its historic neighbors will help our boards and commissions guide development that respects the character of this area,” Kristi Reimers, a local resident and the owner of Eco Carmel, told the city council.
The hearing involved more than six hours of testimony and discussion, with Mayor Dale Byrne and Councilmember Bob Delves recusing themselves based on potential personal conflicts. In the end, the remaining three council members decided to push a decision on the development until their September meeting. At that time, they agreed they would take the matter up again and vote whether to accept the appeal and send the project back to the planning commissoin.
Chris Mitchell, the managing director of Esperanza Carmel, Pastor’s development company, remained skeptical in the wake of the council’s inaction. In a statement obtained by SFGATE on Friday, he wrote, “This process has made a mockery of the city’s own rules. Our project was reviewed for six years, redesigned five times, and approved by the Planning Commission and City staff. Then, on Monday, we were undercut again but this time by last-minute political manoeuvring to further stall.” He continued: “Carmel needs more housing, and we were one of the few businesses willing to invest in doing it right. We have been doing this for over a decade in Carmel. But the message from City Council is clear: it doesn’t matter how much you follow the rules, if your business is not wanted here, you won’t be treated fairly.”
The need for a vote on the project in September now seems to hinge on whether Pastor himself wants to continue this process or keep doing business in Carmel at all. Given his statement on Friday, an exit from the wealthy oceanfront town appears imminent.
“The grotesque situation at Ulrika Plaza, where everything is wanted so as not to let us begin work for reasons that are akin to a schoolyard, confirms that it’s time for us to bring our expertise and motivation to other projects, elsewhere, where we will be better received and in a more professional and serious political environment,” Pastor’s statement concluded.
Editor's note: The story was corrected at 10:20 a.m., Aug. 10, to reflect that the Carmel City Council's decision was to delay work on the JB Pastor Project last week.