Four-Star Hotel
Four-Star Hotel
A hotel developer with over 30 years of experience has explored the feasibility of a Four-Star Hotel in Livermore's Downtown Center. The only site the developer thinks is feasible is located on the east side of L Street between Veterans Way and Railroad Avenue, and importantly, contiguous to the L Street Garage and a large Veterans Park. If built, a Four-Star Hotel would be the highest quality hotel in the Tri-Valley, with approximately 130 rooms in a two- and three-story building.
After having recently conducted a financial assessment of the project, the hotel developer determined that due to increased construction costs and unstable room occupancy in the hotel industry, any hotel would show a financial loss in the near future. Thus, in order for Livermore to secure a quality hotel, it is critical that any funding gap be addressed for an appropriate number of years. The goal is to present to the City of Livermore and Livermore Area Recreation and Park District (LARPD) a funding structure that would address the hotel's cash shortages, and those of projects near or related to the hotel, without negatively impacting the finances of the City and LARPD. This could be done with the establishment of an Enhanced Infrastructure Financing District (EIFD), the details of which are presented in an attachment to this Executive Summary.
In 2016, the City entered into an exclusive negotiation agreement with Presidio Hotels to build a hotel on City-owned property off Livermore Avenue west of the Bankhead Theater. Several years later, Presidio (2205 Railroad Avenue LLC) acquired the City-owned property at a deeply discounted price of $71,521 and obtained a $1,923,750 loan from the City to purchase a separate parcel north of Railroad Avenue off K Street for valet parking. Despite these financial incentives, we understand that a Presidio representative has made clear to the City and others that Presidio no longer plans to move forward with its hotel project in Livermore.
Our wineries very much need a top-level hotel at a time when the wine industry is struggling. A number of local wineries have gone out of business. We value our wineries because they attract visitors, who then shop at local stores. Wineries and their surrounding open space are part of Livermore's identity. In addition, a hotel near the Bankhead Theater is helpful, as the theater would benefit from nearby accommodations for its performers and its audience. We believe the City and LARPD realize the importance of supporting a Four-Star Hotel in the Downtown Center, and there is a financial path to do so.