SR-02-16-1971- 900-003-10CITY OF SANTA MONICA 71 -C -16
DATE: February 16, 1971
TO: The Honorable City Council
FROM: City Manager
SUBJECT: Addition to Royal Inns Hotel
The current agreement with Royal Inns requires the firm to construct a total
of 300 rooms for transient guests on the leased site. In the absence of a
mutual agreement to the contrary, the firm will be required to bring the total
rooms for transient occupancy to the level of 300 by the end of the 1971 calen-
dar year.
The company is quite prepared to commence construction in the immediate
future (following plan approval) to add the required 140 rooms. The company,
however, would also be willing to add a total of 240 rooms if the City can make
available additional property. (The addition of 240 rooms would make a total
room count of 400 rooms. )
The Rand Corporation owns the adjacent property and is not interested in a
direct sale for this purpose. However, the Rand Corporation has indicated
that they may be interested in an exchange of property which would meet our
needs and would not adversely affect the Rand Corporation.
The larger addition to the Royal Inns Hotel would be most beneficial in terms
of public accommodations as well as support for a more intensified use of the
Civic Auditorium. Accordingly, it is recommended that the City Council
authorize an extension in the construction completion date to June 30, 1972 in
order to permit an effort to work out a mutually acceptable exchange of prop-
erties beneficial to all the parties.
PS: j
cc: Earl Gagosi.an
tanager