General development plans for two new hotel projects in Grover Beach were unanimously approved Monday by the Grover Beach City Council.

The approved plans for the Hilton Garden Inn at 950 El Camino Real and Pacific Coast Hotel at 105 W. Grand Ave. show both projects are consistent with the city's General Plan, city officials said.

Site-specific issues like height, density and mass for each project would be considered when specific development plans are considered by the Planning Commission and City Council at a future date, according to city officials.

Hilton Garden Inn

The proposed Hilton Garden Inn is a 74,732-square-foot hotel that will include a “basement section” composed of 134 guest rooms, a dining area open to the public, meeting rooms, an outdoor pool area, surface parking and landscaping to complement the surrounding natural oak woodland and Meadow Creek, according to city officials.

The inn represents a potential private investment of $14 million to $16 million, minus the cost of off-site infrastructure, according to a city staff report.

The hotel, located along Highway 101 frontage, is expected to generate between $350,000 and $500,000 in annual transient occupancy tax revenue after its third year in business with roughly 80 percent occupancy, said George Hansen, community development director.

Advertisement

The overall site contains 4.87 acres of land, with 1.82 acres proposed for development. More than half the total lot is within a protected open space and flood plain adjacent to the Meadow Creek riparian corridor.

The vacant land is the result of mitigation measures required by the California Department of Fish and Game and the California Coastal Commission for a bowling alley that was previously approved but never built because of the “economic climate at the time,” Hansen said.

Mayor Larry Versaw asked city staff if the developer would be willing to help the city construct trails along Meadow Creek between 12th and Fourth streets.

“We are open to suggestions on how we can make the hotel more pedestrian-friendly,” said Gary White, property owner and joint venture participant with American Properties Management Inc.

Pacific Coast Hotel

The Pacific Coast Hotel is a 29,189-square-foot two- and three-story mixed-use commercial and condominium hotel development.

Developers propose building 20 condominium/hotel units, 2,855 square feet of commercial space with visitor-serving retail units, a cafe, an underground drainage system and 37 parking spaces in an underground garage.

The 6.6-acre project site is contiguous with the future Beachfront Lodge & Conference Center proposed for 101 W. Grand Ave. at the northern entrance to Pismo State Beach and Oceano Dunes State Vehicular Recreation Area.

The mixed-use project represents a major private investment and will increase transient occupancy tax revenues, according to a city staff report.

The Grover Beach Improvement Agency would receive an increase in property taxes because it lies within the Grover Beach Improvement Agency redevelopment project boundary, according to a city staff report.

The site was formerly occupied by a gas station.

In addition, Hansen noted, city staff has met with representatives of the State Parks Department on the project and the Coastal Commission has been “very actively involved” with the project.

Mitigated negative declarations will be required for environmental review when the projects' specific development plans are considered, according to city staff.

Jan. 12, 2007