OCEANSIDE – A proposed $187 million beachfront luxury hotel won the unanimous support of the city's Redevelopment Advisory Committee yesterday.
Commissioners did not balk at an expected $27 million public subsidy. When the City Council chose developer S.D. Malkin in 2004, the subsidy was $10 million. The project's cost then was estimated at $110 million.
No one in the audience spoke on the subject.
This evening, the city Economic Development Commission is expected to approve the proposed agreement with the developer. The meeting is set to start at 5 p.m. in City Hall, 300 N. Coast Highway.
The City Council is scheduled to vote on it tomorrow.
The project covers two city-owned blocks bounded by Pacific and Myers streets, Seagaze Drive and Pier View Way.
City officials have tried to lure a hotel there for decades.
“We hope it meets your expectations,” Jane McVey, city economic development and redevelopment director, told the committee. The redevelopment committee advises the council.
She said part of the reason for the high subsidy is because the community wanted a 500-seat ballroom, which requires a garage. The city is paying $22 million for a 610-space garage.
McVey said the money to pay the subsidy will come from property, sales and room taxes the project generates.
It will take about 12 years to do so.
The city will have to extend the time period for its downtown redevelopment area, due to expire in 2015, so it legally can sell bonds to raise some of the money it needs upfront.
The proposal calls for leasing the property to the developer for 75 years, with an option for an additional 24 years.
Lola Sherman: (760) 476-8241; lola.sherman@uniontrib.com
