Hope St Lot 4 Economic Development Subsidy Report

On March 24, 2026, the City Council will hold a public hearing to consider an Economic Development Subsidy Report for the development of a hotel on City-owned property called Lot 4 located on the west side of Hope Street between West Evelyn Avenue and Villa Street.  At this hearing, Council will also consider amendments to the Disposition and Development Agreement (DDA) and ground leases between the City and the Robert Green Company for developing the hotel on Lot 4 and an office building on City-owned property called Lot 8 located on the east side of Hope Street between West Evelyn Avenue and Villa Street.  Any Council actions related to these items on March 24, 2026, are in the City Council’s role as property owner, not as the land use authority.  If the City Council approves the recommended amendments, the Council will consider the entitlements of the hotel and office building in its regulatory capacity at a later date.

The recommended DDA and Lot 4 ground lease amendments include an economic development subsidy for the hotel in the form of rent reductions and Transient Occupancy Tax (TOT) rebates in order to make the hotel financially feasible.   No economic development subsidy is proposed for the office building on Lot 8.  Pursuant to Government Code Section 53083, the City Council must hold a noticed public hearing on the Lot 4 hotel economic development subsidy and provide certain information in written form in advance of the public hearing.  The Lot 4 Hotel Economic Development Subsidy Report above provides this information in compliance with Government Code Section 53083.