SR-906-000 (3)
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JUN 1 ,. 1988
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CM:JJ:LCB:dVIn
City Council Meeting 6/14/88
Santa Monica, California
TO: Mayor and city council
FROM: City Staff
SUBJECT: Recommendation Regarding Developer Selection
for 415 Pacific Coast Highway
INTRODUCTION
This staff report recommends that the City Council select Santa
Monica Beach Development Partnership as the developer for the 415
Pacific Coast Highway parcel; authorize the city Manager to
negotiate and execute an exclusive negotiating agreement with
5MBDPi authorize the City Manager to negotiate a long-term lease
with the recommended developer for Council consideration;
undertake all necessary activities to obtain reviews and
approvals by state and local bodies, and authorize staff to
commence negotiations with Entrada Associates in the event that
negotiations with 5MBDP are unsuccessful.
It is important to note that the approval sought at this time is
a conceptual one based on the development program presented: the
financial viability of the organization; and the developer team.
Over the next nine to twelve months the proposal will be
specifically refined both in the context of lease negotiations
and in compliance with the requirements of necessary reviewing
bodies. Various aspects of the proj ect will be presented at
several more public meetings during this period.
- 1 -
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JUN 1 ~ 19~\\
--BACKGROUND
The 5-acre (215,740 square foot) parcel at 415 Pacific Coast
Highway is owned by the state and administered by the city under
a long-term operating agreement. For several years, the City has
been under considerable pressure from the state to provide a
long-term use for the site to both increase public access to the
site and recognize its revenue generating potential to offset
serious budget shortfalls in the Beach Fund.
Efforts to secure a current long-term lease arrangement for this
site began in 1982 when the city issued an RFP for development of
the site. Five proposals were received and one of these was
recommended by the City to the state for approval. Lengthy
negotiations with the state failed to reach a conclusion.
At that point, the City suggested a trade of other equally-valued
City owned beach front property for the 415 Pacific Coast Highway
site to enable the City to proceed as lead agency with
development of the site. These negotiations were similarly
unsuccessful and the city was notified of the state's lack of
interest in this proposal in the Spring of 1986. At that time,
City staff began the process of working with the state to develop
a new Request for Proposals as well as State-requested background
analysis.
Since 1981, the property has been operated on a month-to-month
agreement by the Sand and Sea Club. Prior to that time, the Club
was in operation under a 20-year lease agreement.
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~REQUEST FOR PROPOSALS
The City issued a Request for Proposals on April 1, 1987. This
document was carefully crafted based on extensive discussions and
public hearings with the state; the city's Recreation and Parks
Commission; the City Council; neighbors; and city staff. It also
reflected conformance with the City's Land Use Plan; zoning
Ordinance; Local Coastal Plan; and the Santa Monica Beach
Resource Management and Development Plan. The principal
objective of the RFP was to seek projects which effectively
balanced increased revenues generated from the site with
increased public access to the site.
Key components of the RFP included:
General Objectives -
1) To provide for increased public access to the site.
2) To provide revenue to the City to be used for beach
improvements and maintenance.
3) To provide for development of coastal/beach dependent
activities.
4) To apply the highest standards of architectural design to
the proposed development, with a mix of uses that are
both architecturally and environmentally sensitive to the
site and adjacent land uses.
Specific Objectives
Allowable Land Uses -
Development of the 8i te is to be in conformance with
applicable local and State regulations. Although
allowable under the existing R-4 zoning, residential uses
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..
"
were not considered due to the public access requirements
of the project. Unique overnight accommodations and
beach related recreation and visitor-serving uses were
allowed. There was also a requirement to maintain the
existing 176 spaces of public beach parking on the site.
A maximum lot coverage of 50% was specified. Height
limits of 35' were included in the RFP at Council
direction.
Public Access -
It was emphasized that the city desired a range of uses
on the site available to individuals of varying economic
means. These would include beach-related recreational
uses available and affordable to the general public;
overnight accommodations and restaurants when consistent
with other policy objectives; cultural and entertainment
facilities consistent with the overall uses of the
project and harmonious relation with neighbors.
Revenue Generation -
Due to the unique development opportunity offered by the
site, the state encouraged a maximization of revenue to
the extent allowed by other policy objectives. This is
particularly important in light of the precarious
position of the Beach Fund which has been in a
near-deficit for several years. The Santa Monica Beach
is the most heavily used beach in the state of California
and having the resources to maintain and improve its
facilities is becoming increasingly difficult. Currently
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~
the site generates $120,OOO/yr. to the City while the
appraised value has been cited as high as $20 million.
The RFP at the request of the state, stipulated a minimum
guaranteed annual rental of $500,000 with periodic CPI
increases plus a percentage of gross from room rentals,
food, beverage and miscellaneous concessions. Holding
rent was also required prior to completion of
construction.
Lease Term
Proposers were asked to specify a desired lease term.
Legislation is currently proposed to extend the allowable
lease term for the site to sixty years to allow
amortization of the considerable investment needed to
provide the various program components desired.
Environmental/Architectural Quality
The proximity of the site to residential uses and
beach front location necessitate the highest quality of
architecture and environmental sensitivity. Height, view
corridors and circulation patterns were all mentioned in
the RFP.
Marion Davies House
The RFP encouraged retention and re-use of the Marion
Davies House on the site.
other Requirements
The RFP spelled out several other minimum requirements
such as payment of prevailing wages and women and
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minority business participation which proposers were
requested to acknowledge.
RESPONSES TO RFP
Availability of the RFP was noticed in several statewide
publications. Nearly 200 potential developers requested and
received copies of the RFP. Eleven proposals were received by
the deadline of July 1, 1987.
On the whole, the proposals were marked by careful thought in
preparation. The city wishes to acknowledge the strength and
quality of the development teams who were interested in
participating in the project.
City staff members from the City Manager's Office, Community and
Economic Development Department and Recreation and Parks
Department were assisted by the consulting firm of Keyser Marsten
Associates, Inc. in the review and analysis of the proposals.
The state Department of Parks and Recreation was also kept
advised during the review process.
All eleven proposals were reviewed in detail. The principals
were invited to interviews as well as being asked for written
responses to outstanding questions and issues on occasion during
the evaluation process.
As highlighted earlier, the parameters for this project are quite
unique. The project needs to provide a sensitive balancing of
financial return, increased public access and
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~ environmentaljarchitectural features. A summary of each proposal
accompanies this report as an appendix.
While a number of the proposals presented very viable development
projects, Staff felt that four of the proposals most clearly
addressed the public access component of the RFP.
These four
proposals in alphabetical order are:
The Dunes at Santa Monica - Raleigh Enterprises
The Entrada - Greenwood DevelopersjDoubletree
Sand & Sea - BadtjKimpton Associates
Santa Monica Beach Hotel & Community Center -
Michael McCarty/Dominion Properties
A summary of the public access components follows.
It is
important to note that each of the four proposers indicated a
willingness to discuss the various aspects of their public access
programming and sought direction from the city in developing
programs and activities.
The Dunes at Santa Monica
A unique aspect of this proposal is the recreation of a dune
estuarine habitat with a marine biology preserve subsidized by
the Raleigh Foundation. The main building contains banquet and
meeting rooms; and two restaurants.
An art and cultural
conference center is proposed for the Marion Davies House. An
outdoor amphitheater; public kiosks containing snack bars and
beach equipment rentals; nature trail; parcours; site - specific
art work; picnic areas; public restrooms and changing facilities
comprise the remaining project public access features. The 176
spaces for public parking are retained on the site.
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, The Entrada
Nearly one quarter of the site is occupied by a central courtyard
that allows foot traffic into, across and through the
development. Landscaping, an amphitheater, snack bar, beach
rental equipment stands and restroomsjdressing rooms are the only
construction elements proposed west of the 1921 mean high tide
line. Three restaurants of varying price ranges are proposed. A
150-seat indoor theater and meeting and banquet facilities are
proposed. Renovation of the Marion Davies House is proposed with
subsidized use by the Friends of Entrada Foundation to sponsor
cultural and educational programming. 176 public parking spaces
are retained on the site.
Sand & Sea
The project includes a public exercise and aerobics facility,
swimming pool, sculpture garden, beach equipment rental station,
showers and 1,000 lockers, paddle tennis and volleyball courts,
small amphitheater and beach food service. A nominal charge is
proposed for use of the facilities. There is a public center
consisting of a 250 seat moderately priced restaurant, snack bar
and meeting rooms. The Marion Davies House would be converted
into a community center with programming funded by a subsidy from
general project revenues. Junior athletics programs would also
be sponsored. A 90 seat specialty restaurant and day care center
for employee I s children are also included. 200 public parking
spaces are provided. Shuttle services are proposed for both
employees and user groups.
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, Santa Monica Beach Hotel & Community Center
The community Center is proposed as a 16,000 square foot facility
encompassing the Marion Davies House. It would include a public
day-use beach facility with 500 lockers, showers, restrooms and
spa facilities available to the public at no or nominal charge.
A moderate priced beach cafe and beach rental stands are also
proposed. Available public parking on the site would be
increased by 100 spaces to a total of 276. The Marion Davies
House would house an Art and Environment center subsidized by
general proj ect revenues to provide educational and cultural
programming as well as pUblic meeting rooms. The Wests ide Arts
Center would operate the arts component of the Center. The
project will also contribute to a shuttle system.
RECOMMENDATION OF DEVELOPER
Achievement of Public Goals - Non-Financial
All four of the developers cited above proposed varied and
interesting public access project components which were well
integrated into the design of the projects. All proposed
operating subsidies to various non-profit administrators of
portions of the public access program.
However, the Santa Monica Beach Hotel and Community Center
presents the most extensive underwriting of such activities. The
annual subsidy is estimated at $600,000 to $850,000. These
include:
a) the addition of lOO public parking spaces to the existing
176.
b) the willingness of the proposer to operate the day-use
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beach facilities at no or nominal charge to the public.
c) the designation of an existing non-profit organization to
administer much of the Community Center program with
guaranteed scholarship support for up to 50% of the
participants; and payment of all capital renovation costs
as well as operating support for extensive cultural and
educational programming.
d) the provision of a $2 million art collection on site.
Achievement of Public Goals-Financial
Again, all four proposals met the minimum RFP requirements and in
fact projected similar annual rental revenue to the Beach Fund of
$1.1 to $1.2 million. The projections were all viewed as
reasonable by the city's economic consultant. Financing
commitments were also strong in all cases. The ranking on this
point, was therefore based on the guaranteed rental of each
proposal.
The Santa Monica Beach Hotel and Community Center have proposed a
guaranteed minimum rent of $1 million against the percentages of
gross set forth in the RFP. Entrada Associates proposed a
$700,000 guaranteed minimum against percentages. The Dunes and
Sand and Sea proposed $544,000 annual minimums against
percentages.
Developer Qualifications
It is felt that all four development teams are highly qualified
and capable of delivering the projects proposed. Reference
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checks regarding prior development performance were uniformly
excellent.
The recommended development team has an outstanding track record
in several areas:
Michael McCarty, owner of the successful Michael's Restaurant in
Santa Monica and the Rattlesnake Club in Denver is an
internationally acclaimed restauranteur.
The Dominion Property Company has completed nearly $600 million
in development since its founding in 1977. Dominion has
specialized in residential development (including Sea Colony I,
II and III in Santa Monica) primarily in the coastal zone in Los
Angeles County.
Gerald J. Inzerillo is presently the Chief Operating Officer for
Rubell-Schrager, Inc. which develops, owns and operates several
hotels and night clubs valued at $200 million in the United
States. Prior to this, he was the General-Manager of two Four
Season Hotels in Texas responsible for supervising pre-opening
activities of the properties. He also worked for Hilton Hotels
for eight years. Numberous references praised his operational
and organizational abilities to undertake a project of this
nature.
Physical Planning/Architectural Appropriateness
Of the four key decision criteria, proj ect design will remain
subject to the most refinement and analysis prior to final
approval of the project plans. More specific working drawings,
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traffic and circulation studies, environmental analysis and the
like will be prepared for public review and required city and
state approval processes in the months to come.
Each of the four proposals are very different but all were most
sensitive to the site and neighboring environs in terms of
height, density and lot coverage. In comparing the four
proposals, preliminary estimates of FAR's are .78 or less; lot
coverage of 32% or less; and maximum heights of 35J or less.
Next steps
Upon Council approval of the recommendation, staff will proceed
with preparing an exclusive negotiating agreement with the Santa
Monica Beach Development partnership and then prepare a timetable
and checklist of the necessary approval processes prior to lease
finalization. The project will be required to follow all local
and state procedural requirements. In addition, staff wishes to
discuss in more detail some components of the project proposal to
seek clarification and possible amendment. Some areas of
possible refinement include refinancing options, holding rent,
shortening of the lease term to meet state limitations and the
site plan. It is also understood that there will be a number of
off-site improvements required of the developer which will be
necessary to delineate. It is anticipated that this review and
approval gathering stage will take 9 to 12 months. Construction
could begin after that time.
FISCAL IMPACT
There is no immediate fiscal impact resulting from this Staff
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report. Timing of future revenue flows contained in the proposal
remain to be negotiated.
RECOMMENDATION
It is recommended that the city Council authorize the city
Manager to:
1) negotiate and execute an exclusive negotiating agreement
with Santa Monica Beach Development Partnership for the
development of the 5-acre parcel at 415 Pacific Coast
Highway;
2) proceed with negotiation of a long-term lease with Santa
Monica
Beach
Development
Partnership
for
Council
consideration;
3) apply for and assist in obtaining all necessary reviews
and approvals for the proj ect at the State and local
level, including public hearings at various stages, and
4) undertake negotiations with Entrada Associates should
negotiations
with
Santa
Monica
Beach
Development
Partnership prove unsuccessful.
Prepared By: John Jalili, City Manager
Lynne C. Barrette, Assistant city Manager
Attachment
(ssreport)
- 13 -
APPENDIX
AMERICAN REALCORP
Development Team
American Realcorp - Robert Cohen
Gin Wong Associates - Architects
project Description
The project consists of a 154 room all suite hotel with
conference facilities; a 9,500 square foot health spa; a 400
member beach club; 150 seat restaurant: subterranean garage;
tennis and paddle courts; beach facilities and extensive water
elements.
Building Height
Lot Coverage
Parking Spaces
Marion Davies House
Total buildings
35'
48%
611
- restored to a lounge to be made
available for social and civic affairs.
156,660 square feet
Lease Term Proposed
49 years with one 20 year option
Holding Rent
To be negotiated
Construction Rent
$120,000jyr
Base Rent
$594,000jyr with CPI adjustment every 5 years
percentage Rent
As specified in RFP except 15% for parking
City Participation at Sale/Refinancing
10% to lessor after cumulative preferred return to owner and
return to lender
Annual City Financial Return - Beach Fund (3rd yr.)
$1,036,000
Development Costs
$30.4m
Hotel Operator - not specified
Average Room Rate (3rd yr.)
Average Occupancy 72%
$171
- 1 -
THE DUNES AT SANTA MONICA
Development Team
Raleigh Enterprises/Executive Life Ins. Co. - George Rosenthal
Gensler & Associates - Architects
Project Description
The Dunes consists of a 162 unit hotel (12 bungalows); conference
center; restaurant; large estuarine pond; boardwalks; sand dune
restoration area; subterranean garage; public beach facilities
community/cultural center in North House.
Building Height Less than 35'
Lot Coverage 22%
Parking Spaces 444 plus 60 off-site
Marion Davies House - Retained as conference/arts center
Total buildings 118,820 square feet
Lease Term Proposed
75 year lease
Holding Rent
$10,OOO/mo.
construction Rent
$20,OOO/mo.
Base Rent
$544,000 yr. with CPI adjustment every 5 years
Percentage Rent
As specified in RFP plus 5% of all revenues above threshold
once investment fully amortized.
City Participation at sale/Refinancing
10% of net proceeds up to $10 million for first refinancing
Annual city Financial Return - Beach Fund (3rd year)
$1,116,000
Annual City Financial Return - General Fund (3rd year)
$1,073,475
Development Costs
$28.6 million
Hotel Operator - Raleigh
Average Room Rate (3rd year)
Average Occupancy
$219
72%
- 2 -
ENTRADA
Development Team
Entrada Associates -
Greenwood Development
Doubletree, Inc.
Hare Brewer and Kelley, Inc.
Howard Needles Tammen & Bergendoff - Architects
project Description
The Entrada is comprised of a 198 room inn; meeting, ballroom,
and banquet facilities; 150 seat theatre; amphitheater; three
restaurants; North House communi ty center: central court and
sculpture garden; public beach facilities; and a two level
subterranean garage.
Building Height
Lot Coverage
Parking Spaces
Marion Davies House
Total Buildings
35'
30%
606 spaces
- Retained as cUltural/exhibition center
with $100,000 $120,000 annual
subsidy to non-profit operating
foundation.
164,930 square feet
Lease Term Proposed
55 year lease plus 2 20 year options
Holding Rent
$8,700 mo./$200,OOO total
Construction Rent
$10,000 mo/$120,OOO total
Base Rent
$700,OOO/yr with CPI adjustment every 5 years
Percentage Rent
As specified in RFP
City Participation at sale/Refinancing
10% over developer's total investment
Annual City Financial Return - Beach Fund (3rd yr)
$1,266,000
Annual City Financial Return - General Fund (3rd yr.)
$1,155,956
Development Costs
$22.7 million
Hotel operator - Doubletree
Average Room Rate (3rd yr.)
Average Occupancy
$202
75%
- 3 -
FOUR FIFTEEN DEVELOPMENT PARTNERSHIP
Development Team
Norman J. Ackerberg
John Daniels
Arnold Cader
Richard Meier - Architect
project Description
The proposed project consists of a 216 room hotel with banquet
and meeting facilities; hotel commercial shopping area; two
restaurants; coffee shop; North House relocation (possible
restaurant); 10 ,000 square foot spa and health club; sculpture
garden; parking structure; beach recreation facilities and
concessions.
Building Height
Lot Coverage
Parking Spaces
Marion Davies House
Total Buildings
35'
38%
687 spaces
- Relocation on site
210,999 square feet
Lease Term Proposed
55 year lease plus 2
20 year options
Holdin9 Rent
not specified
Construction Rent
$180,000 total over 2 years
Base Rent
$500,000 with CPI adjustment every 5 years
Percentage Rent
As specified in RFP
City Participation at sale/Refinancing
15% of net sale or refinance proceeds
Annual City Financial Return - Beach Fund (3rd year)
$922,000
Development Costs
$43.5 million
Hotel operator - continental
Average Room Rate (3rd year) $231
Average Occupancy 72%
- 4 -
GEORGINA BEACH HOTEL
Development Team
Westgroup, Inc. - Patrick R. Colee
FCB Partnership
The Landau Partnership - Architect
Project Description
The project consists of a 175 room hotel with meeting and banquet
facilities; a restaurant and bar; hotel commercial and retail;
meeting space; North House restaurant; public beach facilities
and parking structure.
Building Height
Lot Coverage
Parking Spaces
Marion Davies House
Total Buildings
35'
50%
380 spaces
- Retained as restaurant
221,000 square feet
Lease Term Proposed
66 year lease
Holding Rent
$10,000 moj$240,OOO total
construction Rent
Included in above
Base Rent
$700,000jyr with annual CPI adjustment not to exceed 7%
percentage Rent
As specified in RFP
city participation at sale/Refinancing
Not specified
Annual City Financial Return - Beach Fund (3rd yr)
$918,000
Development Costs
$36.4 million
Hotel Operator - Westgroup, Inc.
Average Room Rate (3rd yr) $204
Average Occupancy 80%
- 5 -
HOTEL AT THE BEACH
Development Team
Christopher Wojciechowski
Caravel Hotel Management - Peter Bally, Bernard siloman
Wojciechowski, Rowlett & Naskar - Architects
project Description
The project consists of a 250 room hotel with conference
facilities~ hotel commercial~ restaurant; health and fitness spa;
daily-use beach club and related facilities; and a three level
subterranean garage.
Building Height
Lot Coverage
Parking Spaces
Marion Davies House
Total Buildings
35'
45.5%
1,042 spaces
- Offer to relocate off-site
403,124 square feet
Lease Term Proposed
99 year lease
Holding Rent
No
Construction Rent
Included in base rent with right to terminate after 2 years
Base Rent
$550,000 for 1st 2 yrs, $l.lm for next 12 years, 1.7 m for
next 12 years
percentage Rent
Only if actual project revenues exceed projection, then 5% of
difference after amortization of costs.
City Participation at sale/Refinancing
Not specified
Annual city Financial Return - Beach Fund (3rd yr.)
$550,000
oevelopment Cost
$54.5 m
Hotel operator - Caravel Hotel Management
Average Room Rate (3rd yr.) $134
Average Occupancy 75%
- 6 -
OCEANHOUSE PARK ASSOCIATES
Development Team
Bryant L. Morris
Robert J. Morris
project Description
This project consists of a 16,000 square foot restaurant with
rooftop observation deck; public beach recreation area; renovated
public restrooms and beach food concession; North House meeting
hall and museum; and on grade and subterranean parking.
Building Height
Lot Coverage
Parking Spaces
Marion Davies House
Total buildings
Less than 20'
11. B%
508 spaces
- Retained as multi-use
20,000 square feet
facility
Lease Term proposed
20 year lease
Holding Rent
None (continue with current operator)
Construction Rent
To be negotiated - $150,000 total
Base Rent
$500,000 year with CPI adjustment every 5 years
percentage Rent
As specified in RFP
City Participation at Sale/Refinancing
Not specified
Annual City Financial Return - Beach Fund (3rd yr)
$532,000
Development Costs
$5.1 million
- 7 -
SAND AND SEA
Development Team
BadtjKimpton Associates -
Douglas Badt
Herbert P. McLaughlin
William D. Kimpton
KaplanjMcLaughlinjDiaz - Architects
Project Description
This project consists of a 131 room inn with a pUblic center
including restaurant, bar and conference facilities; an exercise
facility and public swimming pool; a landscaped sculpture garden;
North House COlDlD.uni ty center; tennis and paddle courts; publ ic
beach facilities and access platforms; a subterranean garage;
small amphitheater and employee day care center.
Building Height 35'
Lot Coverage 23.6%
Parking Spaces 625 spaces
Marion Davies House - Retained as communi ty center wi th
$89,000 annual subsidy to non-profit
operating foundation.
Total Buildings - 136,000 square feet
Lease Term Proposed
42 year lease plus 2 10 year options
Holding Rent
$120,000 year
construction Rent
$10,000 mo.j$240,000 total
Base Rent
$544,000/yr. with CPI adjustment every 5 years
Percentage Rent
As specified in RFP
city Participation at Sale/Refinancing
10% after debt, equity and 10% preferred return to investors.
Option for $1 million in-lieu at outset of lease.
Annual City Financial Return - Beach Fund (3rd yr)
$1,225,000
Annual City Finaneial Return - General Fund (3 yr.)
$694,262
Development Costs
$27.2 million
Hotel operator - Kimco Hotel Management
Average Room Rate (3rd yr.) $152
Average Occupancy 85%
- 8 -
SANTA MONICA BEACH HOTEL AND COMMUNITY CENTER
Development Team
Santa Monica Beach Development Partnership
Michael McCarty
Dominion Property company
Gerald Inzerillo
Richard Keating of Skidmore, Owings & Merrill - Architect
Project Description
This project consists of a 148 room hotel with meeting and
banquet facilities; two restaurants; re-use of the North House as
a community center; a public day-use beach facility;subterranean
garage and expanded public parking.
Building Height 35'
Lot Coverage 32%
Parking Spaces 500 spaces
Marion Davies House - Retained as communi ty center. Annual
subsidy of operating costs for
educational & cultural programming.
Total Buildings 162,600 square feet
Lease Term proposed
55 year lease plus 2 20 year options
Holding Rent
$250,000 letter of credit
construction Rent
$650,000 - $950,000 total
Base Rent
$1 million/year with cap on increases of prior 10 year
average CPI
Percentage Rent
As specified in RFP.
City Participation at sale/Refinancing
5% of net from refinance and 7% of sale.
Annual City Financial Return - Beach Fund (3rd yr.)
$1,228,000
Annual City Financial Return - General Fund (3 yr.)
$1,311,122
Development Costs
$42.2 million
Hotel operator - Gerald Inzerillo, Managing Partner
Average Room Rate (3rd yr.) $304
Average occupancy 70%
- 9 -
SANTA MONICA BEACH PRESERVATION ASSOCIATION
Development Team
Theodore Rhodes
Mary Kinzelberg
Richard Gold
project Description
The proposed project is to continue the existing use on the site
wi th an expansion of public access programming; meeting space
availability and availability of additional use permits. Future
capital improvements to be determined.
Lease Term Proposed
19 year lease
Holding Rent
No
Construction Rent
None - continue with existing operations
Base Rent
$5ll,600/yr. with annual CPI adjustments of 4%
Pereentage Rent
As specified in RFP but would request reallocation to public
programs.
~ity participation at Sale/Refinancing
na
Annual City Financial Return - Beaeh Fund
$622,440
Development Costs
na
- 10 -
.
t
SANTA MONICA INTER-CONTINENTAL HOTEL & BEACH RESORT
Development Team
415 PCH Group -
Fred Johnson Investment, Inc.
San Dieguito Group - Salvatore P. Osio
Albert P. Martin of Archisystems International - Architects
project Description
The proposal consists of a 250 room hotel with meeting and
banquet facilities~ a gourmet restaurant~ 1000 member health
club, pavilion and waterfront promenade~ public beach facilities~
the relocation and restoration of North House as a cultural
center~ and a two level subterranean garage.
Building Height
Lot Coverage
Parking Spaces
Marion Davies House
Total Buildings
Some over 35' offset by view corridors
47.3%
680 spaces
- Restored as historical/cultural center
252,000 square feet
Lease Term Proposed
50 year lease
Holding Rent
$60,000 total
construction Rent
$180,000 total
Base Rent
$500,000jyr.
percentage Rent
As specified in RFP.
Annual city Participation at Sale/Refinancing
$980,000
Development Costs
$32.6 million
Hotel operator - Inter-Continental
Average Room Rate (3rd yr.) $146
Average Occupancy 75%
(recomss1)
- 1l -
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