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City to Study Hotel Taxes, but Make No Promises

By Eric Richardson
Published: Thursday, April 27, 2006, at 12:33PM

With the Grand Avenue Project design unveiling on Monday, the LA Times and the Daily News decided to run different directions in the next days paper. The Times ran on the retail angle, while the Daily News went with saying that the developers now want a hotel subsidy (and follow-up where Antonio says no deal is in place). Lost at least for me in this was that Jan Perry had filed a Council motion a few days prior asking for a study on whether the breaks in bed tax would be warranted.

An important element of this project is a proposal to include a hotel among the various elements envisioned along Grand Avenue. A high quality hotel wil create additional opportunties for tourists to experience local landmarks. An essential understanding, though, is that this hotel must supplement and enhance the downtown hotel industry, not draw business away from existing hotel properties.


The study will determine whether a shortfall exists and whether the proposed new hotel wil simply move existing business from existing hotels or create net new hotel business for the City. PKF has agreed to conduct the study for an amount not to exceed $35,000, and the developers, Related Companies, have agreed to fund the cost of the study.

It should be noted that the City is making no commitments at this time. This study, funded by the developer but overseen entirely by the City, will simply provide the necessary information for the City to determine what its participation wil be. The results of the study and appropriate recommendations will be brought back to the Council for consideration.

You can find a PDF of the motion on the Council File Index. The motion passed in Council on Tuesday.


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