By Lilly Riddle
In San Diego’s Little Italy neighborhood, a new development is taking shape. Consortium Holdings Projects, the hospitality group known for revitalizing the Lafayette Hotel, has envisioned a new boutique hotel and wellness center named Dreamboat. This project is meant to be their first ground-up creation, according to a report from the San Diego Union-Tribune.
The hotel, with its wellness center, rooftop garden and two restaurants, is also meant to be the new corporate headquarters for CH Projects, solidifying their presence in Little Italy. A second vote was needed for the project to pass, and permits had to be secured.
CH Projects has faced challenges in getting the project off the ground, however. The San Diego County Regional Airport Authority, concerned about the project’s proximity to the airport’s flight path, deemed the proposed density too risky in the event of an accident, according to the report.CH Projects then turned to the San Diego City Council, the only body with the power to overturn the airport’s decision. After a period of deliberation, the council, acknowledging the project’s potential and the circumstances surrounding it, voted in favor of Dreamboat.
Councilmember Marni von Wilpert, who also served on the Airport Authority board, explained to the Union-Tribune that while the airport’s concerns were valid, the surrounding area was already densely developed. Councilmember Joe La Cava, although initially hesitant, ultimately supported the project, echoing von Wilpert’s sentiments. He stated that while the risk was real, the project’s potential benefits outweighed the concerns, according to the report.
Per the report, Marcela Escobar — CH Projects’ land use consultant — also said Dreamboat would be surrounded by more intense land uses, making it less of an outlier.
For Arsalun Tafazoli, CH Projects’ co-founder, the council’s decision was a victory. His company has already invested heavily in the project, acquiring six properties in the area for a total of $13 million. This wasn’t their first deal with the Airport Authority; the company faced similar opposition when developing Born & Raised, one of their restaurants, according to the report.
Alongside the Dreamboat project, Consortium Holdings is expanding its portfolio with several other ventures. At The Lafayette Hotel, they have recently introduced Lou Lou’s Jungle Room, a live music venue and supper club, and they are developing both a spa inspired by Russian, Roman and Turkish bathhouses and a restaurant called Le Horse Continental Room, according to a report from SanDiegoVille.
Consortium Holdings is also revitalizing Starlite bar and restaurant in Middletown, constructing Leila, a large-scale Persian bar and restaurant in North Park, and planning a new bar and restaurant in Coronado. Founder Arsalun Tafazoli also possesses a shopping plaza in Normal Heights, according to SanDiegoVille, that is located near Blind Lady AleHouse and one of the company’s establishments, Polite Provisions.
