County to Review Developers’ Plans For Marina Project
By DANNY KING
Staff Reporter
Paving the way for massive redevelopment on the western end of Marina del Rey, L.A. County officials last week referred three development proposals to the Board of Supervisors.
The proposals, selected from among five submitted to the department, envision more than $100 million in development on three county-owned parcels totaling more than 10 acres in three parcels ringing Marina Beach (more commonly known as Mothers Beach).
The supervisors are expected to vote to enter into exclusive negotiation agreements with each of the teams at their regular weekly meeting on Oct. 21.
Taken together, the developers are proposing two hotels totaling about 200 rooms, nearly 300 apartments, more than 25,000 square feet of retail space and at least three restaurants, including a rebuilt and expanded Cheesecake Factory, according to Roger Moliere, deputy director for the Department of Beaches and Harbors, which made the recommendations.
If the plans are approved, the developers would enter into exclusive negotiations for a ground lease with the county, typically 60 years, and an agreement to share in revenues generated by the projects.
The developers have been chosen, and their projects, are:
> EMC Investment Co., which would develop a $73 million mixed-use development on the four-acre parcel at the northeast corner of Admiralty and Palawan ways. It has proposed 292 apartment units, more than 22,000 square feet of retail and 14,000 square feet of restaurant space. Of the four acres, less than half was part of the request for proposals. Beverly Hills-based EMC has a deal to take over the ground lease from the owner of the adjacent Harbor House restaurant.
> Invest West/Pacifica Hotel Co., which owns the Best Western Jamaica Bay Inn next to Mothers Beach, would build a 147-room Residence Inn by Marriott extended for $27 million on the 2.2-acre parcel at the northeast corner of Admiralty and Via Marina.
> A joint venture of investors Bill Arnold and Chuck McGuire, who control the ground lease of the Via Marina site that includes Cheesecake Factory, and Westside developer Mayer Separzadeh, would redevelop four-acre site at the northwest corner of Admiralty and Panay ways. That project would include a rebuilt Cheesecake Factory, as well as construction of a 45- to 50-room boutique hotel, another restaurant and retail space.
Favorable review
The proposals are expected to receive a huge push from L.A. County Supervisor Don Knabe, who represents the area.
“It was unfortunate to us that these entertainment-retail projects didn’t go through some time ago,” said Sheri Sakamoto, Knabe’s deputy on marina issues. “We don’t want any further delays in these projects.” Knabe was out of state on vacation and could not be reached.
Still, the referral to the supervisors is but the first in a long line of approvals needed before the final development plans are approved. Agencies ranging from the L.A. County Regional Planning Commission to the California Coastal Commission must approve the plans, leaving construction at least 15 months away.
“We’re excited to be chosen,” said Dale Marquis, president at Invest West/Pacifica. “The Residence Inn concept is different than anything else in the Marina, and would be a natural adjunct to our Jamaica Bay Inn.”
The bid marks another attempt by Invest West/Pacifica, already seeking entitlements for the expansion of its Jamaica Bay Inn adjacent to the development site, to expand its presence in the lucrative Marina hotel market.
Marina del Rey is among the local markets best positioned to absorb an increased supply of hotel rooms, according to PKF Consulting, a consulting firm. In July, Marina hotels were more than 84 percent occupied and had average room rates of $108.41, versus countywide averages of 74.4 percent occupancy and $107.24 per night room rates.
“They are still a very strong market,” said Bruce Baltin, a senior vice president in PKF’s Los Angeles office. “They have good upside, especially with Playa Vista going in.”
Still, Baltin said the Marina is in need of smaller, boutique hotels like the ones being proposed. “Smaller hotels work well there,” he said. “It’s more of a boutique destination. The sites are small and it’s a more manageable development if it’s done that way.”
Years-long process
For nearly a decade, the county has been renegotiating land leases in an effort to fix up the Marina and make it a stronger magnet for tourists.
But those plans have hit snags. Lawsuits from local activists and multiple layers of governmental red tape have stalled many of the projects from taking off.
Earlier this year Marriott International Inc. pulled out of developing the Marina Beach Resort because of sluggish tourism and a weak economy, paving the way for the three developers to step in with proposals.
The decision last week marked another in a series of developments have picked the pace of redevelopment efforts.
Golden West Properties, which controls the ground lease for Fisherman’s Village on the marina’s east side, is attempting to secure approvals for both a 340-room Hilton Hotel at the northwest corner of Admiralty and Mindanao ways. It is also proposing a plan for razing most of the existing Village site and building a 48,000-square-foot retail and entertainment complex that could also include a 44-room hotel.
“We’re within 60 days of having that brought to the board for approval,” said Moliere.
The county is still collecting proposals for two other marina projects, including a coastal promenade of restaurants and retail stores and an outdoor mall with movie theaters.
Meanwhile, with Playa Vista coming on line about a mile away, Westside neighborhood groups are expected to raise concerns about congestion along the Lincoln Boulevard corridor. Earlier redevelopment proposals for the marina have been hit with lawsuits, which stalled the proposals for years, from residents concerned about traffic impacts.
Coalition to Save the Marina Inc., a non-profit that has filed numerous lawsuits to block or stall developers from building large residential complexes in the Marina, will seek to stop the Marina Beach Resort project, said Don Klein, its president, who described the project as yet another example of the county trying to “urbanize” the Marina.
While most development projects that go before the Commission ultimately get approved, winning those approvals can often take years and projects sometimes get scaled back in the process.
Staff reporters Andy Fixmer and Howard Fine contributed to this story.
