TITLE
Recommendation to authorize City Manager to execute a transient occupancy tax sharing agreement with LBH Land Holding Company, LLC, in connection with the development of a Residence Inn Hotel at 600 Queensway Drive for an amount not to exceed $1.5 million. (District 2)
DISCUSSION
The City Council approved a long-term lease with LBH Land Holding Company, LLC (developer) for property at 600 Queensway Drive (formerly Naga Restaurant) on October 4, 2005, with the understanding the site would be developed into a Residence Inn by Marriott. The design and layout for an eleven-story 178-room hotel (Exhibit A) is complete and was approved by Planning Commission on February 1, 2007. During the soil testing for the site it was determined that significant improvement is needed to prepare the site for development, estimated at $1.5 million. The developer is asking for City assistance to address the soil improvements.
Significant revitalization has occurred in the City's downtown area with the expansion of the Convention Center, the opening of the Aquarium of the Pacific, and Pike at Rainbow Harbor. These developments have helped to create Long Beach as a destination for conventions and visitors alike. While these developments are noteworthy, continued development is needed to fully integrate the downtown with the south waterfront area to support the Carnival Cruise Line terminal and the Queen Mary. The proposed hotel project is a great opportunity to begin revitalization of the south waterfront area. For this reason the Redevelopment Agency is looking to invest approximately $1 million in offsite improvements to streets, medians, and landscaping to progress further development in the area.
The hotel project is estimated to generate $17 million in transient occupancy tax (TOT) during the first 15 years of operation (Exhibit B). The revenue is distributed 50 percent to the General Fund to support City services and 50 percent to the Special Advertising and Promotions ...
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