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From YouTube: San Bruno City Council Meeting February 26, 2013 10a. Hotel Development at the Crossings
Description
San Bruno City Council Meeting February 26, 2013
10a. Hotel Development at the Crossings
A
We
write
into
10
item
number
10,
a
something
we've
been
looking
forward
to
for
a
very,
very
long
time,
select
a
development
team
and
authorize
the
city
manager
to
enter
into
an
exclusive
negotiating
rights
agreement
and
commence
negotiations
of
a
disposition
and
development
agreement
for
the
crossings.
Hotel,
I,
don't
give
it
to
staff.
B
Thank
You
mr.
mayor
members
of
the
City
Council.
It
is
indeed
a
very
great
pleasure
tonight
to
be
in
the
position
to
recommend
to
bring
you
this
report
and
to
recommend
the
next
important
step
in
towards
the
city
in
our
community,
realizing
the
vision
we
have
long
held
for
the
development
of
a
high
quality
hotel
to
complete
the
build
out
of
the
crossing
san
bruno
specific
site
area.
Our
report
tonight
will
cover
a
number
of
important
topics
and
will
include
three
separate
speakers.
Myself.
B
Jason
moody
to
my
right
will
give,
as
with
economic
planning
systems
a
consultant
to
the
city,
who
has
done
extensive
economic
analysis
of
various
many
hotel
proposals
that
we
have
evaluated
over
the
course
of
the
last
couple
of
years.
And
thirdly,
representatives
from
OTO
development
are
in
the
audience
tonight
and
we
would
like
to
give
them
an
opportunity
to
present
to
you
and
to
the
public
themselves
their
firm
and
the
vision
that
they
have
to
proceed
further
with
us
towards
the
development
of
a
hotel,
as
we
will
discuss
in
further
detail
through
the
presentations
tonight.
B
B
This
is
by
far
not
the
last
step
in
this
process,
but
it
is
in
fact
a
very
important
next
step
in
some
respects,
as
a
colleague
of
mine
suggested
earlier
today,
tonight's
action
could
in
fact
be
considered
largely
ceremonial,
in
that
it
marks
the
beginning
of
the
next
phase
in
this
process,
but
by
far
again
does
not
conclude
it.
Where
we
are
now,
we
can
clearly
see
the
end
of
the
process
and
the
reality
of
a
hotel
that
meets
our
community
vision.
That
vision
has
a
number
of
components,
as
I
will
discuss
later.
B
In
my
remarks,
it
includes
general
fund
revenue
that
may
be
derived
from
transient
occupancy
tax
that
could
support
a
variety
of
routine
and
special
municipal
activities.
It
includes
importantly
space
in
a
high
quality
hotel
for
meetings
for
conferences
for
family
events,
a
much-needed
amenity
that
this
community
lacks
in
large
measure,
and
it
includes
the
vision
of
a
high
quality
physical
amenity,
as
I
indicated
before,
to
complete
the
development
of
that
important
area
of
our
city
that
we
call
the
crossing
san
bruno.
B
The
action
is
proposed
tonight
is
specifically
to
authorize
the
initiation
of
negotiations
with
a
preferred
development
team
that
has
been
selected
and
is
being
recommended
to
you
tonight,
based
on
an
extensive
review,
evaluation
and
competitive
proposal,
solicitation
process
that
the
city
staff,
in
conjunction
with
a
so
Committee
of
the
City
Council,
has
engaged
over
the
last
several
months.
I'll
speak
to
some
of
some
of
the
additional
details.
In
a
moment.
This
action
is
only
and
specifically
a
selection
of
the
best
developer
development
team
for
this
project.
B
B
None
of
us
have
enough
information
at
this
time
to
determine
the
detailed
specific
financial
aspects
of
a
deal
at
this
point
in
time.
The
developers
who
participated
have
given
us
their
best
guess
and
preliminary
assessments
of
the
financial
considerations
that
will
need
to
be
reviewed,
evaluated
and
discussed
in
great
detail,
but
again
their
economics
and
their
preliminary
preliminary
proposals
do
not
represent
a
deal
that
deal
comes
next
and
what
we
are
proposing
to
you
tonight
is
you
authorize
us
to
begin
the
process
of
the
negotiations
that
would
result
in
that
deal.
B
That
deal
would
come
back
to
you
and
you
would
have
the
opportunity
will
have
the
opportunity.
Assuming
that
we
proceed,
you
will
have
the
opportunity
to
do
your
own
detailed
evaluation,
consideration
of
the
community's
interests
and
to
make
further
specific
approval
of
of
that
deal,
and
the
deal
points
so
I'm
going
to
take
a
step
backwards
here
for
a
moment
and
do
a
short
review.
B
The
history
of
the
site
in
the
process
that
we
use
to
reach
the
action
that
we're
proposing
to
you
tonight
in
the
late
1990s
the
city
had
what
I
consider
to
be
a
considerable
foresight
to
it
and
identify
an
opportunity
when
the
federal
government
decided
to
surplus
and
auction
the
site.
That
is
now
the
crossing
san
bruno
approximate,
20,
acre
site
was
surplus
and
the
city
recognized
at
that
time
that
this
piece
of
property
had
the
opportunity
to
produce
a
wide
variety
of
a
wide
variety
of
amenities
and
important.
B
Important
amenities
for
the
future
of
the
san
bruno
community,
the
city
prepared
a
specific
plan
to
identify
specifically
what
development
was
of
interest
to
the
community.
How
that
development
should
be
planned,
how
it
should
be
implemented,
how
it
should
be
phased.
That
plan
envisioned
a
full-service
hotel
as
one
of
the
key
amenities
at
the
corner
of
el
camino,
real
adjacent
to
highway
380
in
the
mid
2000s,
as
the
development
of
the
site
had
been
proceeding
rapidly
and
the
hotel
market
conditions
had
continued
to
be
stagnant
in
the
post,
9-11
environment.
B
The
city
identified
that
it
had
yet
another
opportunity
to
avoid
just
simply
sitting
around
waiting
for
the
market
to
improve
adequately
that
we
could
get
to
the
point
where
we
are
tonight
and
in
expediting
that
vision.
The
city
about
was
able
to
identify
a
developer
and
to
assist
in
the
development
of
the
high
quality
fine-dining
restaurant
that
we
all
now
enjoy.
Jack's
got
the
crossing.
B
Today's
vision
for
a
hotel
was
developed
over
the
past
several
years,
as
I
mentioned
in
the
post
9-11
environment
as
the
hotel
market
continued
stagnant.
The
city
pursued
its
vision
by
working
with
hotel
industry
experts
to
evaluate
the
best
type
of
project
that
we
were
waiting
for.
What
was
it
that
would
best
suit
that
site
and
could
best
be
matched
to
the
city's
vision
for
a
hotel
project,
while
our
specific
plan
had
previously
specified
a
up
to
500
room
hotel
with
a
full
restaurant
and
the
other
amenities
of
a
very
large
full-service
hotel.
B
Our
subsequent
analysis
identified
that
the
best
product
for
that
site
in
the
not
exactly
short
term
but
in
the
reasonable
term,
was
what's
known
in
the
industry
as
they
select
a
select
service
hotel.
That
is
a
hotel
that
we
will
be
talking
about
in
greater
detail
tonight.
So
I
won't
spend
the
time
to
describe
exactly
what
that
hotel
with
the
type
of
amenities
that
it
includes
and
what
it
looks
like
the
city
in
order
to
set
the
stage
and
to
develop
the
groundwork.
B
That
would
be
necessary
to
work
towards
soliciting
developer
interest
in
that
site
and
in
that
type
of
a
project.
The
city
next
moved
in
July
of
2012
to
purchase
the
site.
The
footprint
the
empty
lot
that
had
SAT
vacant
for
approximately
a
dozen
years
as
the
crossing
site
developed,
we
purchase
that
site
for
1.4
million
dollars
in
one
time.
B
Seat
at
least
200
people
in
banquet
style
arrangement
again.
This
was
this
being
a
key
part
of
the
vision
that
the
city
has
long
held
as
a
select
service
product.
This
type
of
hotel
might
or
might
not
include
either
on-site
or
off-site
visitor
services,
including
fitness
or
spa
facilities,
and
it
was
specifically
our
intent
that
with
jack's
restaurant
next
door,
the
nearby
restaurant
would
provide
the
opportunity
of
a
full-service
amenity,
although
not
incorporated
directly
in
a
full-service
type
hotel
product.
B
The
developer
proposals
process
requested
very
specific
information
from
the
development
community
and
our
RFP
RFQ
was
circulated
to
over
two
dozen
potentially
qualified
development
teams
in
and
around
this
market
area.
On
the
slide
that
the
number
of
specific
components
that
we
requested
be
provided
included
the
team's
qualifications
and
experiences
experience
in
developing
similar
types
of
hotels,
financial
capacity,
the
project
concept
that
was
was
of
most
interest
to
the
development
team
and
any
considerations
that
they
might
have
regarding
entering
into
an
exclusive
negotiations
with
the
city
of
San
Bruno.
B
The
city
was
extremely
pleased
and
our
hotel
industry
experts
suggested
to
us
that
we
did
in
fact
receive
a
very
strong
response
to
our
request
for
proposals.
We
received
a
total
of
five
proposals
and
we
know
that
there
were
a
number
of
companies
that
looked
at
this
particular
opportunity
and
who
had
some
conversations
with
us,
but
in
general,
the
five
proposals
that
we
received
all
demonstrated
some
level
of
important
strength.
They
all
attracted
our
specific
attention
and
all
of
them
received
a
very
extensive
review.
B
Again.
These
were
all
companies
who
had
significant
who
have
significant
hotel
development.
Many
of
them
also
hotel
operations.
Experience
and
again,
while
there
were
significant
similarities
among
the
various
proposals
that
we
received
from
the
five
companies.
There
were
also
some
compelling
differences,
and
that
was
the
basis
of
our
evaluation
was
a
careful
review
of
the
details
of
each
of
those
proposals.
B
We
did
it
so
we
did
a
second
round
with
each
of
the
proposers
asked
for
some
more
detailed
information
completed
a
thorough
review
of
all
five
proposals
using
a
variety
of
criteria.
There
was
no
single
one
compelling
feature.
We
did
not
seek
a
variety
of
information
and
then
only
look
at
one
aspect:
financial
considerations.
B
For
example,
we
used
a
broad-based
evaluation
of
criteria
to
determine
which
in
fact
would
be
the
best
available
development
team,
because
we
are
expecting
that
this
will
be
an
important
relationship
between
the
city
and
the
development
team
in
realizing
fulfilling
the
community's
long-held
vision.
We
looked
at
the
developer
experience
in
their
capacity
to
do
another
project
now
quickly
to
take
advantage
of
the
improved
market
conditions
and
environment.
We
looked
at
their
recent
similar
projects.
We
looked
at
the
proposed
hotel
product
and
amenities.
B
That
process
included,
as
I
indicated,
a
broad-based
solicitation
and
careful
evaluation
of
the
proposals,
and
it
also
included
in
the
last
phase
interviews
with
two
of
what
the
paper
screening.
If
you
will
identified
as
the
most
highly
qualified
of
the
five
teams,
we
interviewed
two
teams,
oto
development
and
RT
0
rd
olson
development,
and
I
think
it
was.
B
We
had
two
highly
qualified
teams
who
strongly
demonstrated
their
interest
in
working
with
the
city
of
san
bruno
and
joining
in
partnership
with
us.
At
the
end
of
that
careful
and
thorough
evaluation
we
did
select
and
are
recommending
to
you
tonight
that
we
enter
into
exclusive
negotiations
with
OTO
development.
B
Oto,
as
you
saw
in
the
previous
slide,
met
the
city's
requirements
for
the
important
conference
meeting
and
event
space.
That
is
a
highly
desired
characteristic
of
the
project
that
we
are
seeking
and
I
failed
to
mention
earlier
that
the
conference
space
or
the
meeting
event
space
is
not
a
typical
amenity
that
is
included
in
the
select
service
product.
So
this
was
a
kind
of
a
unique
feature
that
each
of
the
proposers
had
to
really
think
about.
How
do
we
provide
that?
How
do
we
finance
that?
B
B
We
have
a
high
level
of
confidence
at
this
point
where
we're
recommending
the
establishment
of
the
negotiations
that,
in
fact,
we
will
incur
minimum
risk
in
moving
this
project
forward
in
a
timely
manner,
specifically
to
the
negotiating
rights
agreement,
which
is
the
subject
and
the
only
subject
of
your
action
tonight.
The
next
steps
in
the
in
the
process,
if
you
will
include
three
specific
components,
so
the
exclusive
negotiating
period
would
with
your
direction
tonight
commence.
B
The
project
due
diligence
period
would
commence,
and
during
that
time,
both
the
city,
as
well
as
the
development
team,
will
really
get
down
into
the
details
of
the
design
development,
the
financial
aspects
of
the
project
and
all
and
any
other
necessary
details
that
go
into
the
creation
of
a
development
agreement.
There's
great
deal
of
work.
That
needs
to
be
done
here
and
the
development
team
will
incur
a
significant
expense.
B
That
expense
has
been
estimated
to
me
at
into
the
hundreds
of
thousands
of
dollars,
and
this
is
one
of
the
main
reasons
why
we
and
why
cities
in
our
situation
typically
use
this
process
in
order
to
give
the
developer
I've
mentioned
the
type
of
certainty
we're
looking
for
it's
also.
Negotiations
is
always
a
a
two-way
street
or
to
two
parties
involved,
at
least
the
development
team.
In
order
to
take
the
risk,
if
you
will
of
expending
funds,
doing
the
due
diligence.
B
Creating
the
details
and
engaging
with
us
in
an
extended
negotiations
needs
to
have
a
relative
level
of
confidence
that
we're
not
out
talking
to
others
or
soliciting
other
proposal
proposals,
while
we're
simultaneously
negotiating
and
then.
Lastly,
as
the
third
phase
of
the
exclusive
negotiating
period,
the
city
and
the
development
team
will
get
down
to
detailed
level
negotiations
that,
as
I
mentioned,
is
expected
to
result
in
the
creation
of
a
mutually
agreeable
development
and
disposition
agreement.
That
agreement
will
come
back
to
you
at
a
later
time.
Again.
B
We
anticipate
that
would
be
in
the
summer
of
this
year
and
that
development
agreement
will
include
all
of
the
necessary
deal
points.
In
summary,
the
negotiating
agreement
establishes
a
time
frame
for
negotiations
and
it
provides
for
the
allocation
of
the
resources
both
that
the
city,
as
well
as
the
development
team,
will
need
to
expend
in
order
to
bring
you
back
a
sound,
solid
and
suitable
deal.
B
The
development
agreement
itself
as
I
indicated,
secures
not
only
the
details
of
the
projects
that
is
proposed,
but
it
also
expresses
the
terms
and
conditions
of
the
city's
any
city
financial
assistance
and
of
the
project
entitlements
that
will
be
necessary
in
order
to
allow
the
project
to
move
forward,
so
the
at
the
risk
of
being
somewhat
redundant.
The
next
steps
include
the
due
diligence
period,
the
negotiation
of
the
agreement,
at
which
time
we
will
be
able
to
tell
you
and
ask
for
your
consideration
of
any
financial
participation
pation
that
may
be
envisioned
for
this
project.
B
Again.
That's
not
tonight,
city,
council,
review
and
approval
of
that
agreement,
and
then,
finally,
and
lastly,
and
with
a
great
deal
of
what
I
hope
will
be
pride,
we
hope
to
see
an
approximate
18
month
period
of
construction
and
the
eventual
and
final
realization
of
this
community's
long-held
and
highly
anticipated
vision.
So
with
that,
I
would
ask
your
permission
to
allow
Jason
moody
to
speak
for
a
moment
and
then,
once
our
presentations
are
finished,
we
be
happy
to
answer
questions
unless
you'd
like
to
ask
questions
now.
C
Thank
You
Connie,
once
again,
my
name
is
Jason
moody
I'm,
with
the
firm
called
economic
and
planning
systems,
and
we
were
retained
by
the
city
to
review
all
the
proposals
that
were
submitted,
focusing
primarily
on
the
the
financial
aspects
of
the
proposal,
and
in
that
area
we
really
focus
on
two
areas,
primarily
the
financial
capacity
of
the
developer,
to
execute
according
to
their
proposal,
and
then
we
also
looked
at
the
they're
requested
subsidy.
We
gave
less
importance
to
that
component
because
that
was
just
a
concept.
Really
it's
not
it's
not
a
commitment
from
them.
C
It's
a
committed
from
us.
It's
just
their
kind
of
general
sense
of
the
the
kind
of
how
much
they
would
need
if
anything,
to
do
the
project.
So
we
put
most
of
the
attention
on
that
portion
of
the
evaluation
on
the
financial
resources
and
capacity
of
the
developers
all
of
the
proposals,
all
four
that
were
submitted,
I'm
submitted
information
in
this
regard
and
the
two
finalists
clearly
were
had
the
most
resources
at
their
disposal.
C
They
had
more
project
experience
and
to
demonstrate
that
they
could
do
this
between
the
two
that
the
two
finalists
we
gave
a
slight
nod:
2
20
t
0
on
this,
primarily
because
they
have
art
larger
portfolio
of
projects.
They
have
committed
equity,
a
to
project
of
this
nature.
They
identified
their
equity,
they
provided
more
financial
information
about
their
available
equity
and
they
have
much
bigger
or
portfolio
again
rd
olson.
Also.
C
We
believe
we
could
successfully
implement
a
project
like
this,
but
they
had
a
few
things
on
that
component
that
were
less
desirable,
primarily
that
well
primarily
had
they
didn't
identify
their
equity
partners
and
their
primary
equity
would
be
provided
by
mr.
Olsen
himself,
so
he'd
be
fully
guaranteeing
loan,
which
would
be
a
full
recourse
loan.
C
And
if
you
have
more
questions
about
that,
I'd
be
happy
to
answer,
but
essentially
what
that
meant
was
that,
if,
for
any
reason-
and
we
didn't
think
this
would
be
a
case,
but
all
the
other
projects
that
he
has
kind
of
went
south
or
there
was
a
lawsuit
or
something
where
there
was
some
financial
issues,
there's
a
potential
that
that
could
affect
his
ability
to
implement
this
project.
So
that
was
that
was
of
some
concern.
But
again
we
felt
both
developers
were
we're
very
strong.
C
In
this
regard,
we
also
looked
at
their
commitment
for
their
stated
project
financials.
If
you
will
how
much
they
thought
they
would
cost
to
build
the
project,
what
the
room
rates
would
be
and
how
much
they
might
need
from
the
city
again,
we
consider
that
with
less
importance,
because
and
I've
been
doing
this,
for
my
whole
career
and
I
have
never
participated
in
the
project
in
which
the
submitted
terms
that
they
do
prior
to
an
actual
DNA
is
the
actual
terms
that
they
end
up
committing
to.
C
In
most
cases,
they
are
really
neither
they're
not
really
prepared
to
make
a
commitment,
because
they
haven't
done
the
due
diligence.
They
need
to
really
tell
you
how
much
they'll
need
and
how
much
they're
not
so
it
usually
gives
you
a
kind
of
a
it's.
It's
really
kind
of
window
dressing
we
like
to
know
if
they
think
they're
going
to
need
a
subsidy
or
not.
But
beyond
that
we
don't
put
too
much
too
much
emphasis
on
the
actual
differences,
because
the
very
purpose
of
an
ene
is
to
work
that
out.
C
A
D
Thank
You
Connie
good
evening
mr.
mayor
and
members
of
the
City
Council
I'm
Todd
Turner
I'm,
a
founding
partner
of
OTO
development
based
in
Spartanburg
South
Carolina
I'm
here
with
two
colleague
Steve
Peters
who's,
the
head
of
real
estate
for
this
region
and
Mike
gallon
who's,
a
director
of
development
for
the
west
coast.
We're
happy
to
be
here,
and
we
appreciate
the
confidence
that
your
subcommittee
has
exhibited
toward
us
among
a
pool
of
very
qualified
applicants.
D
Over
the
last
nine
months,
we've
been
building
a
relationship
with
your
planners
and
city
executives
regarding
this
project
and
our
interest
in
bringing
a
hotel
to
the
site,
we're
delighted
to
get
a
call
from
County
two
weekends
ago
saying
that
we
were
the
ones
who
are
selected
to
proceed
out
of
the
interview
process.
We
look
forward
to
working
with
you
on
this
not
met
each
of
you
individually.
D
So
if,
if
you'd
like
I'm
going
to
spend
some
time
talking
about
our
company
and
our
project
in
our
proposal
on
this
site,
first,
a
little
bit
about
oto
development,
we're
a
south
carolina-based
hotel,
the
development
and
operating
company,
the
national
exposure,
local
experience.
In
a
long
track
record
of
success,
OTA
was
formed
in
2004
since
then,
we've
developed,
49
hotels
that
are
marriott
hilton,
hyatt,
select-service
upscale
branded
hotels,
including
16
in
California.
D
Today
we
own
and
operate
37
hotels
in
10
states
were
under
construction
on
for
hotels,
tour
in
midtown,
Manhattan
and
tour
in
downtown
DC
and
we're
less
with
30
days
away
from
starting
construction
on
a
new
hotel
in
Palo
Alto
we've
been
working
on
for
a
couple
years,
so
that's
a
local
experience
very
present.
We're
working
on
entitlements
on
five
sites
in
California,
three
of
which
are
in
the
bay
area,
including
Palo
Alto,
so
I
carry
when
going
the
next.
D
D
We
think
sponsorship
is
important
and
we
think
track
record
is
important.
Ota
was
formed
from
the
same
investors
and
managers
who
created
Blockbuster,
Video
and
extended
stay
america
upon
selling
extended
stay
america.
We
kept
the
same
management
and
financial
partners
and
formed
oto
development.
The
next
day.
D
This
map
shows
you
just
graphically
our
experience.
We've
built
526
hotels
across
the
u.s.,
that's
more
than
anybody
in
the
industry,
and
we
are
actively
seeking
projects
like
this
in
high
performing
high
barrier
markets,
where
we
can
deliver
a
great
product
in
a
great
community
going
to
give
you
a
couple
of
examples
of
things
were
working
on.
This
is
the
hilton
garden
in
palo,
alto,
california,
we're
going
to
start
construction
on
next
month
when
you
stroll
through
couple
these
this.
This
is
our
hotel
at
madison
square
garden.
D
Penn
station
in
midtown,
Manhattan
is
going
to
open
in
april.
So,
if
you're
looking
for
a
place
to
stay
next
time,
you
go
to
a
Knicks
game
there.
It
is.
This
project
is
under
construction
in
downtown
DC
and
the
West
End.
It's
the
hilton
garden.
We,
but
right
now
it's
a
hole
in
the
ground,
we're
starting
to
come
up
with
our
foundations.
This
won't
take
another
18
months.
D
This
is
a
project
has
been
open
since
April
of
11
s
in
another
hotel
in
downtown
DC
as
part
of
a
billion
dollar
mixed-use
project
that
had
three
levels
of
underground
parking,
900,000
square
feet
of
high-end
class,
a
office,
a
grocery
store,
extremely
complicated
work,
demonstrating
our
ability
to
work
in
an
environment.
That's
is
difficult.
This
is
a
recent
project
were
working
on
in
San,
Diego
mission
valley,
a
new
springhill
suites.
This
is
gives
you
an
idea
of
the
design
we're
doing
down
there
for
the
brand
new
springhill
suites.
D
So
we're
recognized
among
the
brands
as
premier
franchise
partner,
marriott
hilton
in
height.
That's
where
we
do
all
our
work.
We
received
numerous
awards
and
knowledge
in
our
development
and
operational
achievements.
We've
won
multiple
developer
of
the
Year
awards
and
recently
we
received
marriott's
highest
honor,
which
is
the
partnership
circle
award
that
goes
to
very
few
individuals.
Also,
we've
built
more
springhill
suites
than
anyone
in
the
country.
D
We
operate
our
own
hotels
and
are
recognized
by
the
brands
for
excellence
in
that
field.
To
our
CEO
quarry
oaks
is
the
president
of
the
springhill
suites
franchise,
Advisory
Council
within
the
Marriott
corporation,
so
tell
you
about
our
hotel
proposal.
S
Connie
mentioned
were
initially
proposed.
131
room,
five-story,
springhill,
suites
springhill
is,
is
marriott's
upscale
lifestyle
brand
that
addresses
the
demands
of
both
the
business
and
the
leisure
traveler.
It's
it's
their
entry
into
this
lifestyle
segments
with
design
and
amenities
that
are
going
to
cater
perfectly
to
this
market.
D
Where
you
have
corporate
people
during
the
week
and
a
strong
leisure
component
on
the
weekends,
we
think
it's
the
perfect
fit
and-
and
we
hope
you
do
too-
our
project
is
going
to
have
a
combination
of
ad
grade
and
below
grade
parking
still
to
be
worked
out
on
a
fully
engineering,
but
it
might
be
one
or
two
levels
below
grade
on
the
parking.
We're
gonna
have
3,000
square
feet
of
contiguous
conference
facility
space.
D
We're
gonna
have
amenities
that
you
see
listed
up
here,
we're
gonna
have
a
swimming
pool
and
a
and
a
hot
tub
of
free,
hot
breakfast
and
the
thing
about
springhill
suites.
There
is
a
separate
sort
of
living
room
in
each
suite
where
you
can
sit
and
there's
a
microwave
and
a
fridge
and
a
wet
bar
there,
so
I
think
is
going
to
be
great
for
that
medium
to
long
term.
Stay
guests
here
in
this
area.
D
This
is
the
site
plan
that
we
initially
have
proposed
shows
the
layout
and
you
know,
demonstrates
how
tight
the
site
is.
Typically,
when
we're
developing
a
springhill
suites,
we
would
look
for
a
two
and
a
half
acre
site
that
we
could
lay
out
all
the
parking
on
the
surface
around
the
hotel.
It's
just
the
most
efficient
way
to
do
it.
We
know
there
are
site
constraints
here,
but
we
we've
worked
on
a
project
where
this
this
is
going
to
work
functionally,
and
you
Jason
talked
about
the
expense
of
doing
this.
D
Connie
talked
about
this,
but
it's
gonna
be
a
great
project.
When
we're
done,
we've
got
a
long
way
to
go.
This
is
all
very
preliminary.
We
know
that
the
development
process
is
collaborative
everywhere.
We
build
a
hotel,
it
starts
with,
are
coming
in
with
an
idea
to
the
folks
at
the
city,
though
the
Architectural
Review
Board
the
city
planners,
and
just
want
to
give
you
some
an
example
of
collaboration
in
action.
D
This
is
a
rendering
of
our
early
designs
for
two
hotels,
we're
proposing
in
santa
monica
california,
a
courtyard
on
the
left
in
the
hampton
and
suites
on
the
right.
This
is
what
we
came
in
with
a
beautiful
hotel.
We
love
the
way
it
looked,
but
through
a
very
long
iterative
process.
That's
still
in
the
works
much
too
mike
gallon
chagrin,
then
the
next
slide
shows
you
where
we
are
today
on
design
that
and
how
it
has
evolved
through
a
lot
of
input
from
various
people.
I
like
the
first
one,
better
myself.
D
A
E
So
we
were
told
that
the
estimate
of
the
city's
contribution
was
that
it
was
just
an
estimate
at
this
point
based
on
whatever
information
you
have
it
being
that
you've
developed
over
500
of
these
properties
and
probably
had
to
go
through
this
process
several
times.
I.
Imagine
you're,
probably
pretty
good
at
making
those
estimates
and
I'm
just
wondering
a
what's
your
track
record.
So
far,
how
close
have
you
come
in
on
the
other
estimates,
and
can
we
expect
to
be
pretty
close
to
what
you've
proposed
I'd.
D
Say
in
this
case,
we
what
we
were
asked
to
present
as
far
as
our
application
was
our
best
guess
on
what
we
knew
today,
which
is
not
much
as
Connie
mentioned,
that
once
you
get
into
the
due
diligence
process
and
starts
spending
tens
of
thousands
of
dollars
to
really
understand
the
engineering,
the
soils
conditions,
what
type
of
structure
are
going
to
have
under
the
building.
You,
you
don't
know
a
lot.
We
will
know
more
in
60
days.
We're
gonna
know
a
lot
more
in
120
days,
but
it
is
an
estimate
based
on
our
experience.
D
You
know
locally
with
Palo
Alto.
We
just
got
bids
back
on
that
hotel,
so
we
know
what
it
costs
us
to
build
that
on
a
per-square-foot
basis.
We
know
what
it
costs
to
build
a
subterranean
parking
stall,
/
stall,
because
we
did
two
levels
underground
in
Palo
Alto
also.
So
we
have
very
local,
very
current
data
on
this
one.
D
It's
an
estimate,
yes,
but
we're
being
conservative.
Also,
we
took
the
approach
of
being
conservative
and
putting
probably
more
up
front
today,
hoping
that
we,
as
we
learn
in
the
months
to
come,
that
we
can
bring
our
our
development
costs
down
there
for
bring
the
amount
of
participation
from
the
city
down
with
it.
E
D
It's
most
likely
going
to
be
the
per
square
foot,
construction
cost
of
the
building
and
the
first
all
costs
of
the
subterranean
parking.
We
understand
that
part
of
our
proposal
and
we're
prepared
to
do
this
is
the
prevailing
wage
of
the
construction
project
itself,
which
is
an
inflator
over
what
our
prices
were
in
Palo
Alto.
So
we
applied
roughly
a
thirty-five
to
forty
percent
premium
over
our
development
costs
down
there
to
come
up
with
our
estimate
for
this
project,
and
we
think
that's
high.
D
D
F
Dude,
chair
Rico,
to
go
on
some
of
the
same
comments
from
Council
member
Salazar,
so
one
of
his
questions
were
out
of
all
the
projects
that
you've
done.
How
on
target?
Have
you
been
with
your
projections
and
I
heard
a
lot
of
detail
a
lot
of
information,
but
I
don't
know
if
I
really
heard
okay,
a
specific
answer
to
that
question:
okay,
Mike.
F
Good
evening
I
would
say
you
know
historically
I
think
we've
done
a
good
job
budgeting
all
of
our
projects.
I
think
we
typically
come
in.
You
know
a
door
under
budget
on
the
vast
majority
of
everything
I
can
recall
on
palo
alto.
I
think
because
of
the
cycle
that
we're
in
right
now
we
did
see
a
little
bit
of
a
spike
in
the
bay
area.
I
think
the
bay
area
is
accelerating
much
more.
D
Our
experience
in
developing
in
the
regions
where
we're
building
Southern
California
or
the
California,
the
Northeast
we've
got
relationships
with
enough
general
contractors
who
have
built
these
hotels
for
us
who
can
give
us
price
checks
along
the
way
to
where
we
keep
our
pencil
sharp
and
we
don't
like
surprises.
Our
investors.
Do
not
like
those
those
over
budget
surprises,
but
we
we've
become
very
good
over
the
years
and
estimating
this
initially
in
that
number
falling
through
to
the
end.
And
then
one.
F
Thing
that
anyone
I
mean
Idol
is
it
on
the
subcommittee
and
again
I'm,
not
in
your
profession,
but
residents
or
folks
might
say.
Well.
Why
do
we
need
to
give
them
concessions
at
all?
There's
a
number
that's
here
which
I've
heard
from
you
and
the
report
from
staff.
Is
that
that's
not
to
say
that's
what
it
is
going
to
be.
This
is
a
understanding
of
entering
into
an
agreement
which
then
that
is
discussed
and
evaluated.
F
D
I
talked
about
a
couple
factors
that
are
in
the
equation:
one
of
them
is
how
the
hotel
market
performs
and
how
we
think
this
hotel
is
going
to
perform.
We
do
that
research
there's
a
company
called
Smith
travel
research
out
of
Nash
who
collects
hotel
performance
data
on
all
the
hotels
in
the
country
pretty
much
every
day,
so
we
use
that
data
for
a
Smith
travel
to
see.
How
is
the
market
doing
that's
the
most
important
fundamental
driver,
how
you're
going
to
do
in
this
market?
D
We
studied
I
think
it
was
9
hotels
in
san
bruno
and
up
an
oyster
point.
Looked
at
their
performance
history,
going
back
to
the
year
2000
and
put
together
some
trends
in
analysis
of
how
this
market
has
performed
historically
as
its
compared
to
San
Francisco
as
compared
to
the
peninsula
and
as
compared
to
the
u.s.,
and
have
a
very
good
sense
of
how
this
market
is
doing
today.
D
At
the
end
of
2012,
that
comp
set
of
hotels
was
eighty-two
percent
occupied
at
141
dollars,
an
average
daily
rate
average
daily
rate
is
called
a
dr
that's
in
the
business,
so
you've
got
a
stretch
of
hotels
there.
I
think
nine
hotels
that
average
$141
and
rated
eighty-two
percent
very
strong
performance.
D
We
look
at
this
performance
of
cop
set
hotels
and
say
if
we
were
open
and
stabilized
today
being
a
new
hotel
when
the
newest
hotel
that
were
competing
against
his
12
years
old
being
a
new
hotel
in
this
very
good
location.
How
would
we
stack
up
in
that
in
that
spread
in
that
spectrum
of
competitors,
so
average
is
141?
The
range
is
probably
160
some
dollars
227
dollars.
D
We
we
estimated
that
today,
if
we
were
open
and
stabilized
with
our
spring
else,
which
we'd
be
running
about
80%
and
150
$53,
essentially
from
that
we
look
at
forecasting
the
future,
which
is
tough
to
do,
but
we
rely
on
a
lot
of
experts
like
PKF,
who
provides
a
this
study,
called
hotel
horizons
that
looks
at
this
MSA
and
many
others
in
the
country
and
says
over
the
next
five
years.
What
do
they
see
the
changes
coming
in
the
region
for
changes
in
occupants,
in
average
daily
rate?
D
Their
estimate
is
that
from
year,
in
2012
to
year,
in
2016
average
daily
races
going
to
go
fifty-eight
percent
in
this
region.
That
includes
San
Francisco
down
to
San
Mateo
heavily
weighted
by
San
Francisco.
But
we
we
look
at
those
factors
that
all
that
all
the
indicators
are
very
positive,
that
this
market
is
going
to
continue
to
rise
as
the
tide
rises
in
this
region.
So
our
hotel,
we
start
at
153
dollars-
is
going
to
rise
with
the
market.
D
So
that's
how
we
determine
where
we're
going
to
be
performing
when
this
thing
stabilizes
in
2017,
so
that
we
also
having
operated
so
many
hotels.
We
know
the
kind
of
net
operating
income
percentages
that
flow
to
the
bottom
line,
which
is
our
profitability.
So
from
that,
we
okay,
we've
pegged
the
top
line,
how
we're
going
to
do
with
our
pro
forma.
We
know
we've
got
a
hurdle
investment
return.
D
We
are
trying
to
hit
on
all
the
projects
we
do
around
the
country
for
something
to
be
enticing
for
our
investors
and
for
us
to
want
to
recommend
to
our
investors
that
they
proceed
with
the
risk
of
doing
these
type
of
projects.
They
have
to
hit
this
hurdle
return
to
compare
with
other
things
we're
looking
at
around
the
country,
so
the
hurdle
the
denominator
is:
how
much
does
it
cost
to
build,
in
this
case,
the
requirement
of
being
underground
parking?
D
The
requirement
for
prevailing
wage
construction
are
very
expensive
things
to
do
as
opposed
to
doing
a
surface
parking
lot
and
if
I
may
make
a
comparison
to
Palo
Alto.
So
today
this
this
market
is
running
141
dollars
and
rate.
The
Palo
Alto
mark
is
running
191
dollars
and
rate,
so
the
impact
of
that
additional,
fifty
dollars
and
rate
every
night
by
every
room
is
enormous
in
your
ability
to
absorb
additional
development
costs
so
we're
this
market
running
at
191
dollars
as
opposed
to
141
dollars.
We
would
not
be
asking
for
any
subsidy
short
answer.
D
F
E
E
Appreciate
all
the
work
that
has
gone
has
been
done
by
both
you
and
the
art
rd
olson
development.
I
can
see
why
the
subcommittee
hat
and
the
staff
had
difficulty
choosing
between
you,
but
your
experience
is
overwhelming.
Have
you
ever
had
a
time
where
you
totally
failed
and
what
lessons
you
came
back
with.
G
D
Declines
in
ref
are
just
indicating
the
risk
involved
with
development.
No
one
saw
that
coming.
Rather,
people
should
have
seen
it,
but
we
didn't
no
one
did
we
had
to
let
a
few
projects
go
because
they
were
in
a
stage
where
we
had
to
decide
to
commit
hundreds
of
thousands
of
more
dollars
to
proceed
with
the
project
without
any
any
vision
of
any
financing
being
available.
For
who
knows
how
long
it
was.
D
You
know
the
financial
markets
were
in
ruin
and
who
was
going
to
support
a
new
development
of
anything.
So
we
let
a
few
projects
go
that
we
wish
we
hadn't.
Let
go.
We've
learned
a
lot
from
that,
and
today
we
wish
we
had
found
a
way
to
hold
on
to
those
closed
on
the
deals,
and
we
would
now
be
open
with
these.
A
couple
of
great
hotels
and
in
certain
markets
that
would
be
proud
to
own
would
be
performing
very
well.
D
D
That's
probably
the
only
existing
development
thing
that
I
would
say
is
a
failure,
because
we
were
so
far
over
budget
because
of
what
we
weren't
able
to
discover
upfront
because
of
the
ownership
of
the
building.
Wouldn't
let
us
send
adequately
with
its
own
that
I
think
our
investors
have
been
very
happy
with
what
we've
done.
Okay,.
A
C
Yeah
I
think
that
if
you
really
look
at
the
totality,
this
is
a
moneymaker
for
the
city,
not
a
money.
Loser.
The
city
will
make
money
on
transient
occupancy
tax,
that's
the
primary
source
of
revenue
and
property
tax,
so
those
things
that
we
calculate
preliminary
based
on
a
ten-year
period
and
that's
about
it.
That's
about
a
six
million
return
to
the
city,
that's
assuming
the
the
the
subsidy
that
they're
requesting.
If
you
take
away
their
subsidy,
that
would
be
about
eight
or
nine
nine.
C
So
this
is
in
the
end,
going
to
make
money
for
the
city,
so
you
certainly
want
to
have
that
big
picture
when
considering
a
project.
The
most
important
thing
is
to
make
sure
you
can
execute,
execute
the
project
and
make
sure
you
pick
a
developer
who's,
capable
you're,
confident
of
doing
that,
because
that
will
allow
you
to
get
the
the
actual
money.
That's
going
to
be
a
major
boon
to
the
general
fund
of
the
city,
much
it'll
dwarf
the
subsidy.
Basically,
in
the
long
run.
Thank
you.
Ken.
H
Jonas,
as
a
member
of
the
subcommittee
and
I
was
just
tickled
to
be
in
that
meeting
to
be
in
that
room
and
to
listen
and
to
one
first
be
able
to
review
five
very
good
proposals
and
then
narrow
it
down
to
two
very
experienced
and
in
between
it
was
very
difficult
to
make
the
decision.
But
one
of
the
things
that
really
struck
me
and
I
felt
very
good
about
was
when
I
asked
a
question
from
an
experience
from
your
experience,
and
you
have
a
lot
of
experience.
What
attracted
you
to
San
Bruno?
D
Let's
see
when
the
whole
country
went
down
to
fifty
two
percent
occupancy,
so
that
in
itself
shows
the
resiliency
of
this
market,
the
rate
dropped
a
good
bit
but
occupancy
state
high
so
that
that's
a
big
quality
we're
looking
for,
and
we
find
markets
like
this
through
studying
data
and
through
Steve's
knowledge
of
the
market
from
the
ground.
It's
that
it's
high
barriers
to
entry.
That
means
it
is
difficult
to
get
something
built
in
this
area.
The
last
hotel
that
opened
in
this
submarket
opened
in
2001
I
believe
maybe
as
a
year
2000
but
I.
D
Think
12
years
is
the
newest
hotel
in
the
area,
which
again
is
the
best
indicator
of
how
hard
it
is
to
do
something.
We
love
the
peninsula,
the
Bay
Area,
but
particularly
Peninsula.
In
this
space,
from
SFO
down
to
San
Jose,
there
have
only
been
I
think
to
branded
hotels
to
open
since
2005,
so
this
entire
region
has
that
characteristic
about
it.
This
market,
we
like
it
it's
very
close
to
some
major
demand-
generators,
both
corporate
ones
right
across
380.
D
The
airport
is
a
massive
driver
over
40
million
people
in
and
out
of
that
every
year,
and
we
are
one
of
the
closest
sub
markets
and
easiest
to
get
to
downtown
San
Francisco,
where
people
have
an
easy,
easy
time,
selecting
a
brand
new
marriott
branded
hotel.
That
will
be
a
significant
discount
to
downtown.
We
hope
not
a
huge
discount,
because
we
bigger
rates
are
better
than
smaller
rates,
but
it
is
a
great
alternative
for
folks
visiting
the
city
for
for
leisure.
A
G
G
Our
proposal
included
149
guest
rooms,
which
is
a
significant
increase
to
what
the
recommended
team
is
proposing
that
will
down
the
road,
translate
to
significant
enhancement
in
the
t,
OT
tax
revenue
that
would
flow
to
the
city
really
in
all
other
aspects,
I
think
it's
been
said
tonight
that
it
was
a
very
difficult
decision
that
it
was
very
close
to
both
teams
were
experienced,
could
deliver
on
the
city's
vision.
There
was
talk
about
the
quality
of
the
asset
that
will
be
produced.
G
I
think
that
that
shined
in
the
interview
it
was
it
was
a
pleasure
to
be
a
part
of
that
process.
Myself.
Speaking
personally,
and
I
think
you
all
came
away
with
a
good
idea
of
what
our
deal
sins
capabilities
are
the
meeting
space.
We
made
a
commitment
to
provide
the
ballroom
that
would
equal
the
200-seat
capacity
for
for
banquet
style
event,
so
really
across
the
board.
G
When
you
check
the
boxes,
we
were
right
there
and-
and
it
came
as
a
huge
disappointment
to
learn
that
we
weren't
staffs
recommended
team,
but
what
I
would
offer
you
is.
Is
this
simple
fact,
even
though
the
deal
hasn't
been
negotiated
yet
and
there's
terms
that
will
need
to
be
worked
out,
I
submit
to
you
that
you're,
starting
as
a
city
in
a
two
and
a
half
million
dollar
hole
in
this
negotiation,
because
my
client
was
only
asking
a
contribution
of
the
land,
the
1.4
million
dollars?
G
Two
and
a
half
million
dollars
is
a
lot
to
give
away
at
the
beginning
of
a
negotiation,
and
so
if
all
else
is
equal
or
if
all
else
is
really
close
to
being
equal,
because
rd
olson
has
a
terrific
track
record.
I
would
just
simply
ask
you:
why
give
away
two
and
a
half
million
dollars
of
the
city's
money
appreciate
your
consideration
in
your
time.
Thank.
E
Name
is
Maria
rose
and
I
live
in
some
room
for
35
years.
I'm
a
member
of
low
co2
I'll,
because
I
work
for
AT&T,
Park
and
candlestick
for
24
years.
My
life
story
is
the
importance
of
heaven
Union
during
the
baseball
season.
I
have
health
insurance,
but
the
offseason
I
work,
a
clearinghouse
out
of
the
Union
and
I
can't
afford
to
pay
health
insurance
I
be
hundred
fifty
for
my
medication
and
I
can't
afford
to
go
to
the
doctor.
E
A
E
E
E
A
E
Have
no
rights,
no
respect
on
the
job.
A
non-union
jobs
in
a
hotels
is
terrible.
The
workers
were
not
treated
well.
I've
been
working
for
a
nine
minute
hotel
in
Palo
Alto,
in
a
crown
plaza
the
hyatt
on
stanford
park
hotel
and
they
had
no
union
so
on
anyway,
with
no
union
workers
do
not
have
health
care
or
pensions
or
pay
time
of,
for
example,
on
pto
personal
time
off,
because
we
have
the
union
workers
at
my
hotel
are
treated
with
respect.
We
are
able
to
raise
our
families
with
helped
coverage
health
care
insurance.
E
I
Good
evening,
good
evening,
mr.
mayor
members
of
the
City
Council,
thank
you
very
much
for
this
opportunity.
My
name
is
lemoyne
were
line
hanging,
I
work
with
unite
here,
local
to
the
hotel
food
service
and
gaming
industry
union,
the
other
hat
I,
where
is
as
president
to
the
San
Mateo
County
Labor
Council,
where
I've
had
occasion
to
meet
some
of
you
through
that
work
in
that
capacity.
I
But
tonight
I'm
here
to
speak
on
behalf
of
my
Union
unite
here
local
to,
and
we
just
want
to
very
briefly
add
a
little
bit
to
what
our
members
have
already
spoken
to
in
terms
of
their
hopes
and
desires
that
this
hotel
will
become
a
union
hotel.
And
we
just
want
a
very
briefly,
acknowledge
and
applaud
the
fact
that
this
will
be
built
with
union
labor
in
the
construction
phase.
But
as
a
union.
I
Our
concern
is
is
for
the
workers
after
the
folks
who
will
be
there
when
the
hotel
opens
and
staff
that
hotel
and
the
only
thing
that
I
I
guess
that
I
wanted
to
emphasize
here
is
that
it's
our
firm
conviction
that
it
is
the
Union
that
will
be
the
difference
between
whether
or
not
these
jobs
have
affordable
health
insurance
that
covers
families,
whether
or
not
these
jobs
will
have
pensions
and
retirement
security.
Whether
or
not
these
jobs
will
have
Union
protection.
In
terms
of
you
know,
employment,
rights
and
so
forth.
I
I
It
really
is
the
union
that
is
going
to
be
the
difference
between
jobs
that
provide
affordable
health
insurance
and
family
coverage,
a
job
that
has
a
pension
fund,
an
actual
pension
and
an
insecurity
and
retirement,
and
one
that
has
basic
protections
where
all
the
workers
are
not
just
at
will
and
subject
to
a
potential
termination
at
any
moment.
So,
thank
you
very
much
for
this
time
and
we
just
wanted
to
make
sure.
I
E
You
and
evening
my
name
is
Maya.
Singh
I
live
in
central
node
36
years
and
I
oak
Union
in
the
hyatt
for
20
years,
and
it
is
very
good.
We
have
a
union,
we
have
a
benefit
everything
I
work,
part-time,
other
hotels,
nothing,
we
don't
have
nothing,
they
don't
tresa
right
and
we
work
in
the
hyatt.
We
start
we
work
20
years.
We
work
first
year
they
pay
same
amount
and
we
treat
equal
right.
Another
hotel,
non-union,
I,
woke
also
part
type.
E
B
E
H
H
B
A
On
the
question,
I
would
like
to
just
add,
echoed
Ken
set
of
work
on
this
council
since
95,
when
we
had
a
Navy
base
over
there
bear
piece
of
land,
no
tax
revenue
in
the
city,
and
now
it's
it's
worth,
300
million
dollars
and
it's
a
huge
step.
We
took
a
lot
of
chances.
We
had
redevelopment
when
it
was
around.
It
really
helped
us
it's
not
around.