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File #: MC 2024-165    Version: 1 Name:
Type: motion Status: Passed
File created: 9/23/2024 In control: City Council Meeting
On agenda: 10/16/2024 Final action: 10/16/2024
Title: Begin Negotiating Terms of the Hotel Del Sol Development Agreement

 

 

STRATEGIC OUTCOMES

ACTION

Department:

Safe & Prosperous

Motion

Finance

Active & Appealing

Resolution

 

Respected & Responsible

Ordinance - Introduction

Division:

Connected & Engaged

Ordinance - Adoption

Procurement

Unique & Creative

Public Hearing

 

TITLE: t

 

Begin Negotiating Terms of the Hotel Del Sol Development Agreement

 

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SUMMARY RECOMMENDATION: Summary Recommendation

Authorize the City Administrator and City staff to begin negotiating the terms of a development agreement with Kalthia Group Hotels from San Diego, California, for the redevelopment of the Hotel del Sol and former Alsco properties. (Engineering RFQ-24-200) (David Wostenberg/Robin R. Wilson).

 

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STRATEGIC OUTCOME:

The development of the Hotel Del Sol and adjacent properties directly supports multiple City Council strategic outcomes, including Safe & Prosperous and Active & Appealing. By revitalizing the southeast portion of Historic Downtown Yuma, this project will foster economic growth, increase downtown visibility, and enhance public safety through improved infrastructure and amenities. The redevelopment will also contribute to a more appealing downtown environment by introducing new businesses, enhancing public spaces, and attracting both residents and visitors to the area.

 

REPORT:

In 2021 the City received a RAISE Grant from the US Department of Transportation for the development of a regional multi-modal transportation center at the former Hotel del Sol site.  Earlier this year, the City issued a Request for Qualifications/Request for Proposal, seeking a private investor and/or developer to assist in the redevelopment of the remainder of the property.

After this two-step process, the Hotel Del Sol Evaluation Committee selected Kalthia Group Hotels (Kalthia) as the winning proposal. Kalthia currently operates the Pivot Point Hotel and Conference Center and Home2 Suites in Downtown Yuma.

Kalthia’s vision for the site is a multi-use redevelopment project featuring a welcoming lobby area, specialty bistro, upscale restaurant, as well as meeting and event spaces. Kalthia also proposes to develop a four-story 124-room Marriott hotel at the former Alsco site, which would be designed for long-term stays, with amenities such as a pool, gym, and landscaped grounds. The transit center is incorporated into the lobby design.

At this time, City staff seeks authorization to begin negotiating the terms of a development agreement with Kalthia as the successful responder. Once a draft agreement has been developed, the proposed agreement will be brought to City Council for review and approval.

 

 

 

FISCAL REQUIREMENTS:

CITY FUNDS:

$ 0.00

BUDGETED:

$ 0.00

STATE FUNDS:

$ 0.00

AVAILABLE TO TRANSFER:

$ 0.00

FEDERAL FUNDS:

$ 0.00

IN CONTINGENCY:

$ 0.00

OTHER SOURCES:

$ 0.00

FUNDING: ACCOUNT/FUND #/CIP

TOTAL                     $ 0.00

 

 

To total; right click number & choose “Update Field”

 

 

FISCAL IMPACT STATEMENT:

The development agreement negotiation process with Kalthia Group Hotels does not have a direct impact on the City’s budget.

 

ADDITIONAL INFORMATION:

SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:

 

NONE

 

IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?

 

Department

City Clerk’s Office

Document to be recorded

Document to be codified

 

Acting City Administrator:

Date:

John D. Simonton

10/08/2024

Reviewed by City Attorney:

Date:

Richard W. Files

10/07/2024