PACIFIC GROVE, Calif. -- Pacific Grove voters struck down Measure F that would have allowed the Holman Hotel project to move forward.
Fifty-nine percent voted against it, while only 41 percent voted in favor of it.
"That's been a long-term dream of the community is to have a very upscale, boutique hotel," said Tom Frutchey, city manager for Pacific Grove.
But when Measure F finally got on the ballot to build the hotel just behind the Holman Building in the downtown area, voters struck it down.
"Not because I don't want a hotel or any other kind of development, but this plan was too large for the scale of the community, in my opinion," said Sarah McCandliss of Pacific Grove.
Frutchey said the city not only wouldn't have to pay a dime, but the project could bring in about $1.5 million and a year in revenue, money the city needs.
Based on last year's fiscal forecast, the city could be looking at a $300,000 deficit if it doesn't act fast.
Frutchey said while the project could have helped the deficit, it needs to be the right project in order for the city to move forward.
"It needs to be a project that's not only of benefit to the community in terms of providing services, but fits in with the community," he said.
For now, Frutchey said there aren't yet discussions to move forward with building the hotel.
"It's important for us to go back and really think through those concerns, what we've learned, and see if there's something else for that site, which has been zoned for a hotel," he said.
Developer Drake Leddy"couldn't be reached for comment, but posted this message on Facebook: "In watching the early returns for Measure F, it appears that the measure is headed for defeat. I do sincerely want to take this opportunity to thank the many residents who came forward to learn about Measure F and our proposal to build a special hotel in your city. It has been a long and interesting road that brings us to this juncture. While it appears that I most likely have misread the needs and aspirations of the Pacific Grove community, my visits to the Peninsula have opened up many encouraging possibilities for future ventures. I have nothing but the highest regard for the City of Pacific Grove and particularly the City Staff who have been most kind and generous with their time."