Politics & Government

City Council To Consider Hotel Development Deal

The developer is asking for $3.95 million in subsidies including waiving all fees related to the project.

The San Bruno City Council will consider whether to direct the city manager to enter into negotiations with OTO Development, of Spartanburg, South Carolina, to negotiate the details of a development agreement that would bring a new 131-room hotel to the Crossings located at El Camino Real and Interstate 380.

OTO was one of five development companies that responded to the city’s Request for Proposal/Request for Qualifications. 

According to the staff report OTO was chosen primarily because of their extensive track record that includes developing over 500 hotels in the past 15 years.

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The proposal by OTO calls for the city to give the developer the land for the hotel, waive all fees associated with the project and rebate 50 percent of the Transient Occupancy Tax for the first five years the hotel is operating.

The city paid $1.4 million for the 1.5-acre hotel site in July 2012.  The value of the land and the other concessions requested by the developer is estimated to be just under $4 million.  If negotiations move ahead as planned, a timeline provided by the developer shows site grading would begin late in 2014 and construction would be completed in the summer of 2016.

Find out what's happening in San Brunowith free, real-time updates from Patch.

The City Council meeting begins at 7 p.m. in the Senior Center, 1555 Crystal Springs Road.

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