In what is poised to be one of the most lucrative deals for any city in the country, Beverly Hills City Council will vote Tuesday on a development agreement with One Beverly Hills, a condo-hotel project by the Chinese conglomerate, Dalian Wanda Group.
Unlike many municipalities that offer tax breaks and rebates to entice developers to build in the area, the proposed contract with One Beverly Hills dictates that Wanda Beverly Hills Properties LLC pay the city $60 million in upfront fees, a percentage of gross room revenue from the hotel, as well as a “municipal surcharge.”
The initial project was approved in 2008 and featured a mixed-use, residential, and retail development to be located on Wilshire Boulevard in Beverly Hills. Updated plans replace One Beverly Hills’ retail component with a 134-room “luxury boutique hotel.” The development is also slated to include two towers of condos, public gardens, and a rooftop pool and restaurant.
If the project is approved, it’s expected to bring in an estimated $820 million in total revenue for Beverly Hills over the next 30 years, according to a statement from the city.
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“Without any doubt this is by far the best development agreement ever negotiated for Beverly Hills, and possibly the richest development agreement per square foot negotiated anywhere by a municipality,” said Beverly Hills Mayor John Mirisch in an October statement. “If approved, the revenue will help fund infrastructure improvements, public safety and cultural programs that will ensure that Beverly Hills remains an ideal city for residents, businesses and visitors.”
The Beverly Hills City Council approved the One Beverly Hills project earlier this month and will vote on the development deal on Tuesday. If approved, the project will have cleared its final city planning hurdle and will be permitted to move forward into the next phase of development.
Legal reporter Hayley Fox can be reached at [email protected]. Follow Follow her on Twitter at @EPFox.
