OCEANSIDE – City Council members voted unanimously last night to give the developer of a beach-front hotel an extra 90 days before it must present its latest plans and financial data for the resort.
Jane McVey, the city economic development and redevelopment director, told the council the project is crucial to Oceanside. But she also said the seven-story project is complex, and San Diego developer S.D. Malkin needs more time.
McVey, in a staff report, blamed rising construction costs for changes that must be made in the project. She didn't provide a new cost figure.
“I'm anxiously awaiting the opening of the hotel,” Councilwoman Esther Sanchez said. “It's something that is going to bring us economic success.”
McVey did not indicate whether the 90-day postponement will affect the scheduled opening of the hotel on New Year's Eve 2009.
Construction costs have risen 37 percent since the project was proposed, according to the report to the council.
The report didn't mention how much more in city subsidy might be needed.
When S.D. Malkin was awarded an exclusive negotiating contract in September, it was estimated the city might have to close a $10 million gap between the cost of the project and the amount the developer could pay.
McVey said the developer is going to have to revise its plans in order to create more “revenue-producing rooms.”
The project currently consists of 289 rooms in the main Westin Hotel, 47 additional rooms in a boutique hotel and a 48-unit time-share.
McVey said before the council meeting that the area of the buildings has increased by 11 percent.
The hotel is to be built on a site bounded by Pacific and Myers streets, Seagaze Drive and Pier View Way.
Lola Sherman: (760) 476-8241; lola.sherman@uniontrib.com
