15 Sep 2014
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Consulting Firm to Help City Find Hotel Developer

The city has plans to develop a hotel at the Crossing, but a suitable company that can fulfill the city's vision must be found first. The City Council thinks the services of a consultant are needed to make that happen.

Consulting Firm to Help City Find Hotel Developer

The city is looking to hire a consulting firm to attract a new developer that could build a hotel at the Crossing.

Initially, the city was —Destination Properties and Martin Regis Group, which currently owns the land on which the hotel will be built—that were interested in building a boutique hotel on the 1.5-acre vacant site near El Camino Real and Interstate Highway 380.

But both developers asked for public subsidies that were beyond the city's financial capacity.

"Although both entities have expressed a willingness to negotiate, improving market conditions in the regional hotel sector, combined with the excellent location of the Crossing site, suggest that the property may attract the interest of other hotel developers/operators," a staff report said.

The City Council will be voting whether to authorize the services of Economic & Planning Systems Inc. to help the city find a suitable hotel developer. The cost is expected to be $28,000.

The city has already decided to move forward with purchasing the hotel site from Martin Regis Group, and the deal is supposed to be completed Wednesday for $1.4 million.

With that leverage, the city is hoping to fulfill its vision of having a new hotel built at the Crossing that will be big enough to accommodate larger meetings and weddings—something the city has never had.

EPS would be used to reach out to top real estate investors, developers and builders throughout the country and narrow down potential companies that can meet the city's objectives.

In other discussion, the council will be receiving a report about a project the city is pursuing to encourage homeowners in the Pacific Heights area to replace their sewer laterals.

The nearby Sharp Park Sewer Pump station was the site of two large sanitary sewer overflows several years ago that . That issue has resulted in the city having to pay millions of dollars to upgrade its sewer and water infrastructure system.

Residents can voluntarily participate in the program, but the city has set aside funds to cover some of the cost.

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