Loading...
HomeMy WebLinkAboutSEPTEMBER 5,1989 CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK 3l:0179 I ROLL CALL SUMMERFIELD SUITES HOTEL (Htg. Dr., Fifth Ave. & Santa Clara) 4~ ~ ~q1' fl~ I M I NUT E S ARCADIA CITY COUNCIL and the ARCADIA REDEVELOPMENT AGENCY ADJOURNED REGULAR MEETING SEPTEMBER 5, 1989 The City Council and the Arcadia Redevelopment Agency met in an Adjourned Regular Meeting at 6:30 p. m., September 5, 1989 in the Conference Room of the Council Chambers. PRESENT: ABSENT: Councilmembers Gilb, Harbicht, Lojeski, Young and Chandler None PRESENTATION Rob Mossberg, President of Summerfield Suites Hotel (formerly Neighborhood Suites), explained the purpose of the informal oral and visual presentation of their proposed project as a means of presenting the City with a possible opportunity; and to receive Council's reaction to their hotel concept for the site; the presenta- tion will be an overview of the proposed project. Summerfield Suites, he explained, is headed by the same group of persons that originally founded the Residence Inn hotel concept in the late '70s. The system grew to approximately 100 hotels until one and one-half years ago when the Marriott Corporation purchased all of the assets of the company. Summerfield Suites, he noted, is a new upscale concept of the Residence Inns. At this time, they have three facilities which are about ready to open; Chatsworth, Sunnyvale and Atlanta, Georgia; also a facility under construction in Torrance. Overall) he commented) they could be considered to be a ten hotel per year type of company. They are proposing a 94 extended-stay all suite hotel for the Arcadia site with a high percentage of 2-bedroom suites; the proposal to be the 2 and 3 story design. This type of project is low impact/high quality in nature ... not generating a lot of traffic. The cost of the proposed project is estimated at $13 to $14 million; or $140,000 per suite cost. The construction schedule is comparably short on this type of a facility... probably from 9 months to a year, or shortly thereafter. Mr. Mossberg displayed outlines and charts and explained their market research strategy related to the Arcadia site as a viable location for Summerfield Suites. Personal interviews were conducted with-near- by users such as: World Vision, JPL, Parsons, Avon, Aver~ GTE and others. Extensive research included the supply side also; eight hotels in the area considered to be primarily competitive with their project representing a total of 1535 rooms. Also factored in were the proposed 360 room Doubletree and the 385 Ritz Carlton hotels in Pasadena: Other market research data was presented which contributes to the potential success of this type of a hotel, according to Mr. Mossberg. Growth in the San Gabriel Valley is predicted ... there is now about ll~ million square feet of office space with absorption at half a million to three-quarters of a million a year. He spoke of segmenta- tion in their hotel concept ... they feel they are breaking down physical and psychological barriers to the concept of the shared hotel suite. Summerfield Suites will focus on the two separate bed- room suites, with a living room in between and a full kitchen. These suites could be shared by travelers at $120-$130 per night or $60-$65 per person ... and costs would be saved. With this concept they expect to pick up a larger extended-stay market and create the 2-bedroom traveler. Also, for this concept they have designed separate wake-up calls, separate billing and separate folios. 9/5/89 ~l- :', 31:0l80 In summary, Mr. Mossberg, stated, in part, that this would be a high quality project; they are experienced people ... developmentally and operationally; the project is low impact that will meet Arcadia redevelopment goals; fiscally responsible; the hotel will serve a specific market, which may be better understood at a later time. Further, the Summerfield Suites group would like to locate in Arcadia. The market is attractive enough that they believe they ought to locate here; Arcadia is probably the best location for a hotel of this nature. They would like the Council to give them an indication of their approval of the project so that they may proceed or not with staff. In response to a question from Council, Mr. Mossberg explained that the group is not looking for any assistance from the City on this project at this point. They would like an indication as to whether I the community would view this project positively. It is important to "them that the site be developed with community support. They are in the process of aspemblying the property at this time but are not aski the City for any help to assemble the parcels. Councilmember Lojeski commented, in part, that this project is an interesting concept ... it is a very difficult site. The current motel on the property is not generating any more than property tax to the City. He would not want to acquire the property in question as an Agency and try to work with it. Councilmember Harbicht expressed concern as to what effect this hotel would have on the Residence Inn. As to what Summerfield Suites might need from Council, the staff is available to assist them as to pro- cedure, just as they do for any other project. He noted that this is a difficult site ... the proposed project looks just fine. In response to a query from Councilmember Lojeski, staff responded that the zoning on the site is CPD-l and a Conditional Use Permit is needed for the hotel. Councilmember Young commented, in reference to the rendering of the hotel, that it is quite attractive. Also that since the hotel has no restaurant facilities, would a continental breakfast be offered? Mr. Mossberg explained they would offer more than a continental break- fast, but less than a cooked order breakfast. They will provide a complimentary breakfast to the guests as well as evening cocktails with hors d'oeuvres ... served in what they refer to as their "guest house". This area also serves as the check-in and as a health club. Also a "pantry" will be available for items to be cooked or microwaved by the guests in their suites. Councilmember Gilb stated, in part, that the Summerfield group is doing well and he believes the hotel at this site will do well. Mayor, Chandler expressed concern of the competition. Also commented that the presentation was nice and it looks like a very good product~ In response to a question from the audience concerning the non-compe- I tition clause that exists between Devore and Marriott, Mr. Mossberg explained that, "when Marriott '. bought their company they instituted a non-competitive agreement, essentially... and this is what it says. It says for a period of five (5) years ... and two (2) are expired right now, we ,can not operate a facility that attains an average room rate below $72.50, tied to the CPl. Now, that has an effect in Birmingham, Alabama, because we ..." As to the legality... he replied, "It could be illegal, except that non-competitive agree- ments are out there now and in order for them to be close to being legal, they have to be defined. So they define it in some manner. And that's how they chose to do so. What it does is prevent us, really, from going to the less served markets". Mayor Chandler then thanked Mr. Mossberg for the presentation and called a five minute recess. 9/5/89 -2- ARCADIA 1'\.\ BEAUTIFUL COMSN. .~~ p.' LEAGUE OF CAL. CITIES (Voting Delegate Appt'd) I SENATOR -./ RUSSELL (Mtg. with Council) CLOSED' SESSION ARCH. REVIEW BOARDS f\." ~ 0 1\ ADJOURNMENT ATTEST: J Alford, I 31:018l Correspondence had been received from Commissioner Gloria Alfrey in- forming Council of her resignation from the Commission. Councilmember Gilb MOVED to accept the resignation of Gloria Alfrey from the Arcadia Beautiful Commission with regrets, seconded by Councilmember Young and CARRIED. In reference to the League Annual Meeting in San Francisco, October 22 - 25, the need to formally select a voting delegate and an alternate to attend the business session was presented. Councilmember Gilb then MOVED to appoint Mayor Chandler as the delegate and Councilmember Young as the alternate, seconded by Councilmember Harbicht and CARRIED. Senator Newton Russell has indicated his interest in meeting with " ' Council for an informal discussion in October ... the 16th or 17th. "There will be no specific agenda. Council determined that 7:30 a. m.. Monday, October lp, 1989, would be a convenient time for all. The City Manager requested a CLOSED SESSION before the Council's Regular Meeting this evening. Council briefly discussed the ,composition of members of the various Architectural Review Boards. Frequently the board members do not have the expertise to read blueprints. This presents problems for the Planning Department and the Planning Commission. It was felt that the Homeowner Associations should take the time to try and place persons on the ARB's that have the ability to read blueprints ... such as architects or builders. It was noted that it is difficult to find people willing to serve on these boards. Council recognized that this is a problem that should be looked at ... no course of action was determined at this time. At 7:16 p. m., Council entered a CLOSED SESSION, RECONVENED and ADJOURNED sine die at 7:30 p.m. ~ 9/5/89 ;".\. -3-