Beverly Hills City Council voted 4-1 Tuesday to approve a lucrative development deal with luxury hotel-condo project One Beverly Hills. Owned by Dalian Wanda Group, the project will feature residences, a 134-room “luxury boutique hotel,” rooftop pool, and restaurant.
Under the development agreement, the Wanda Group is required to pay Beverly Hills $60 million in upfront payments, 5 percent of the gross room revenue on top of the standard 14 percent hotel bed tax, and higher environmental mitigation fees. City officials say the deal will bring in $820 million for Beverly Hills over the next 30 years.
Many municipalities offer tax breaks and rebates to entice developers to build in the area, not the other way around.
"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. Now that the development deal has been approved, the project is cleared to move into the construction phase.
UPDATE: This article has been updated from its original version to reflect the city council vote and to correct terms of the deal.
Legal reporter Hayley Fox can be reached at email@example.com. Follow Follow her on Twitter at @EPFox.
For reprint and licensing requests for this article, CLICK HERE.