A plan to build a new hotel development at the Pike in downtown Long Beach was approved yesterday by the California Coastal Commission, although the commission decided to lay an in-lieu fee of $985,000 on developers because it was deemed that the proposed Sierra Suites hotel would not be very affordable. The extra fee would be used to create affordable accommodations nearby, according to this article from The District Weekly.
Not so fast, though, because the Press-Telegram this morning reported that the in-lieu fee has caused project developer Chris Gebert to say the deal is off. Citing tough economic times, Gebert tells the P-T that an additional fee of nearly $1 million makes the project unfeasible.
Gebert is a senior vice president with Lodgeworks, the company that would build the Sierra Suites hotel directly across the street from an already existing AVIA hotel – also built by Lodgeworks – should the plan move forward.
So is it off or on?
Suja Lowenthal tells the P-T that she is undeterred and believes the project will still get done. Lowenthal is an alternate member of the Coastal Commission but was recently passed over for an open seat in favor of Santa Monica councilmember Richard Bloom. Despite her alternate status, Lowenthal appeared to be a longshot for the seat when an environmental group endorsed Bloom, Long Beach 5th District Councilmember Gerrie Schipske and one other contender instead of Lowenthal.
In her P-T article, Karen Robes Meeks reports that the Sierra Suites hotel would presumably create $600,000-700,000 in annual revenue to the city, as well as 25 permanent jobs and many more temporary construction jobs.