TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
SUBJECT:Title
Options for Development of City-Owned Property on Parkview Avenue, Including Hotel, Apartments or Office; Citywide Hotel Study Report (Finance Director Moe).
RECEIVE REPORT; PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council: a) receive reports on potential locations for hotels in Manhattan Beach, including City-owned property on Parkview Avenue, and financial pro forma for hotel and other potential uses of the Parkview property; b) discuss and provide direction on the Parkview Avenue property, including determining preferred use; and c) instruct staff to prepare a two-step competitive process for identification of qualified developers and selection of a development partner for the option selected.
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EXECUTIVE SUMMARY:
The PKF Consulting hotel study, with regard to the Parkview Avenue property, concludes that:
* Opportunity exists at that location for the development of a high-quality life-style 150 room hotel
* The hotel should offer on-site dining with bar/lounge open to the public
* Meeting space to accommodate social and corporate groups (approximately 7,500 square feet) is practical and desirable
* The location and nearby amenities will allow a hotel to capture existing leisure demand in the area, but also have the potential to generate additional commercial demand
* The hotel would be positioned to capture group and corporate demand not currently satisfied by existing hotels
* Stabilized occupancy rates will average 80% with an average room rate of $220/night
The PKF Consulting study of other potential Manhattan Beach hotel sites concluded that the capacity exists for five other potential hotel additions/expansion locations identified in the study. The additional rooms will reduce o...
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