But the past seven years were not kind to the Miramar, which has had three owners since Paul Gawzner, who bought the place in 1939 and sold it to Ian Schrager of Studio 54 fame for more than $30 million in 1998.
The hotel closed in 2000 -- and has not opened since.
Schrager faced financial problems, and sold to Beanie Baby tycoon Ty Warner for a reported sum of more than $40 million. Warner faced political planning battles, and sold the property to Caruso for an undisclosed sum in a deal announced Jan. 26.

Developer Rick Caruso takes questions. Photo by Tom Schultz / SBN
"If we do our job right along with you," Caruso told Tuesday's crowd at El Montecito Presbyterian Church, "we're going to build something you'll be very proud of.
"We want the public to be able to come onto the property," he said. "We want to welcome you."
One key strategy involves designing the project within parameters of approvals obtained by Schrager. This would include a total of no more than 213 rooms. Closely aligning the size of restaurants and bars, lobby space, spa facilities and other amenities to existing approvals would help too, Caruso said.
Another strategy is to pay homage to longtime aesthetic sensibilities of the Miramar, which expanded from one guest house to 29 structures between 1889 and 1910 and hosted large parties for decades.
Wood siding, verandas and a general "plantation" feel would make the place comfortable for wearing a bathing suit or a sports coat, Caruso said, adding he envisions low-slung buildings, bungalows and cottages.
Asphalt would give way to green open space and underground parking. A road bisecting the Miramar, located off Highway 101 along South Jameson Lane, would shift to the edge of its southern property line.

Empty Structures dot the Miramar Hotel Property in Montecito. Photo by Tom Schultz / SBN
The project would include fine and casual dining, a restored boardwalk and beach bar and large group facilities that could hold up to 600 people. Visitors and guests would still cross the traintracks on foot at ground level to get to the beach.
Former beach and tennis club members could return and get the first year back free, and then have an option to stay longer, Caruso said, adding club membership could range from 140 to a maximum 300 people. "I have no idea what the charges would be."
As he woos support, Caruso is soliciting anecdotes and artifacts for inclusion in a possible "Memories of the Miramar" collection.
Schrager and Warner tried to incorporate existing buildings into plans, Caruso said. "You can never get a decent room rate when you've got a bathroom the size of a closet."
Moreover, he said, the bungalows and other structures dotting the Miramar are ridden with extensive mold.
Caruso Affiliated would not diclose any current project cost estimates, said Matt Middlebrook, the company's vice president for government relations.
Tuesday's public unveiling was sponsored by the Montecito Association, which has not yet taken an official position on the project. It followed a similar Feb. 16 event and nearly two dozen smaller meetings between Caruso and residents, Santa Barbara County officials and community organizations.
Near the end of Tuesday's two-hour town hall meeting, Caruso sought a show of hands representing who in the audience supported the concept. Arms shot into the air.

An artist's rendition of the plan. Image Courtesy of Caruso Affiliated
The next question was "Who opposes?" From the back of the room, not one raised arm could be seen.
"I love them," Maria Herold said of the plans as she departed, praising their "rural feel." A resident of Montecito since 1959, her children learned to swim at the Miramar.
"It's a great showing of community support," Santa Barbara County Supervisor Salud Carbajal, who represents Montecito, said after the meeting.
"Obviously, there's always the details," Carbajal said.

Plans project against the parish hall wall. Photo by Tom Schultz / SBN
Judging by questions from the audience, some of those details could include freeway noise, parking, roadway safety and alignments, room rates — Caruso gave no dollar figures — and the overall size, bulk and scale of the new hotel.
And as for those blue roofs, Caruso said they would go.
But the old neon sign is safe in storage and awaiting a comeback, he assured one woman curious about its fate.
In general, the affable Caruso appeared eager to listen to suggestions and accomodate the community. It's an attitude that has served developers well along the South Coast, an area hyper-sensitive to planning issues.
Should Tuesday's honeymoon last through public hearings and potential consideration by the state Coastal Commission, construction could start in less than a year.
Caruso said he hopes to break ground next January.
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