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)
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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.
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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.
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ARCADIA
1'\.\ BEAUTIFUL
COMSN.
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p.'
LEAGUE OF
CAL. CITIES
(Voting
Delegate
Appt'd)
I
SENATOR -./
RUSSELL
(Mtg. with
Council)
CLOSED'
SESSION
ARCH. REVIEW
BOARDS
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ADJOURNMENT
ATTEST:
J Alford,
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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.
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