Welcome to the Bailout Resort

A $480 million resort built in a dramatic setting on a Southern California ocean bluff is opening in the midst of the recession with the help of local government loan valued at more than $8 million.

The first guests were scheduled to check in Friday at the 582-room Terranea Resort on the Palos Verdes Peninsula.

After 10 years of planning, developer Lowe Enterprises was running short of money and this month received the loan from the Rancho Palos Verdes City Council to fund the resort's launch.

It's not the only Southern California luxury resort with financial hardship. Down the coast, the St. Regis Monarch Beach in Dana Point is reportedly facing a foreclosure auction because its owners are in default on a $70 million loan.

Copyright AP - Associated Press
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