Developer Ed St. George has filed a lawsuit after being issued a stop work order for his whimsical hotel project in downtown Solvang.

The civil case alleges the city owes him $1 million in damages for halting construction after staff alleged he veered from the approved plans.

The dispute centers on the property at 1704 Mission Dr., a nine-unit hotel with separate one-bedroom small cottages, some with thatched roofs. Another 400-square-foot structure will act as a meeting room but has been designed to reflect a Danish chapel. 

City staff issued the stop work order in August citing violations of “federal, state and local laws.”

Attorney Robert B. Forouzandeh of Riviera Law Group filed the lawsuit in Santa Barbara County Superior Court on Nov. 10 on behalf of St. George and named the city, Community Development Director Rafael Castillo and unnamed individuals as defendants.

The lawsuit contended the stop work order created “a Catch-22 situation.

“By ordering petitioner to stop work on the project, before the work was even completed, on the faulty basis that the uncompleted work was incomplete and did not comply with the plans, there is no way for petitioner to make the project comply with the plans because additional work is required to do so,” the lawsuit said.  

St. George also claimed his project had been persecuted due to his political opinions.

“Such opposition also purportedly stemmed from the claim that Petitioner, a well-known developer from Santa Barbara, was trying to take over Solvang and change its character and history — a false claim,” the complaint said. “Additionally, members of the City Council do not agree with petitioner’s political positions and beliefs and are opposed to petitioner’s involvement in development projects in Solvang as a result of such.”

The lawsuit contended the city claimed the project lacked disability access, didn’t follow approved building, electrical or landscaping plans, eliminated the stormwater management plan and changed materials. 

“Instead of allowing petitioner to complete the project in a manner consistent with the plans, respondents instead ordered petitioner to ‘revise’ the existing plans.”

Construction delays have meant St. George “has incurred and continues to incur significant monetary damage, which is anticipated to exceed $1,000,000, which shall be sought as damages from the city either in this action or in a separately brought case after conclusion of this matter,” the civil complaint said.

St. George appealed the stop work order to the Solvang Planning Commission and the City Council in October but lost.

In addition to asking the court to rescind the stop work order, as he claimed the city had no legal or factual basis to halt construction, St. George sought declaratory and injunctive relief.

A civil complaint includes only one side of the case and the city is expected to file its response in the coming weeks. 

During public meetings appealing the city staff decision, St. George claimed the project was an experiment — “That’s why you see the modifications,” he said.

St. George’s project planner called it a simple disagreement regarding the project’s vision.

The stop work order remains in place, City Manager Randy Murphy said Friday, adding that Solvang recently had allowed workers to access the project site to complete “minor repair work to improve weather protection in a few of the structures.”

Otherwise, Murphy declined to comment on the lawsuit, citing ongoing litigation.

The City Council’s agenda for Monday night’s meeting includes a closed session discussion on the lawsuit.