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Redevelopment Agency gives initial support to six-story hotel proposed for Eastshore Boulevard

The owners of the Best Inn are proposing a second, more upscale six-story hotel adjacent to their existing business and are looking for involvement by the Redevelopment Agency.

Mona and Kanti Patel had earlier approached the city about expanding the Best Inn but are now proposing a separate hotel "in the class category of Hampton Inn and Suits or Comfort Inn and Suites." The 80-room hotel would be on Eastshore Boulevard on the site of Randy's Auto Body and 17,000 square feet of Redevelopment Agency-owned land.

The Patels hope to acquire the Randy's site on their own and are willing to move ahead with soil testing at their own expense. They are asking for some help on the cost of dealing with any contamination that might be discovered, and a contribution of agency-owned land known as the Silver Star site.

The Redevelopment Agency land is valued at $306,000. The Patels would pay $119,500 for the land -- enough money to cover the outstanding debt on it -- so the Redevelopment Agency land contribution would be valued at $186,500. The proposal estimates the agency would contribute another $2,500 toward title and appraisal costs. There would be additional costs to the Redevelopment Agency if the Patels are unable to acquire Randy's without the agency's help. Contamination cleanup costs are unknown at this time.

City staff estimates the project would annually generate $175,000 in hotel room tax revenues for the city, and $50,000 in property taxes for the Redevelopment Agency. In addition, the project could spur other development in the area.

The City Council, sitting as the Redevelopment Agency governing board, took the first step of working with the Patels Nov. 1, authorizing the staff to prepare an exclusive negotiating rights agreement with the Patels.