DATE: October 10, 2017
SUBJECT:
Title
RESOLUTION AMENDING SECTION 4 OF RESOLUTION NO. 2016-139 TO MODIFY THE SCOPE OF SUNROAD ENTERPRISES' PROPOSED DEVELOPMENT ON THE ELBOW SITE FROM A 325-ROOM HOTEL THAT DOES NOT REQUIRE A PORT MASTER PLAN AMENDMENT TO AN APPROXIMATELY 500-ROOM HOTEL OR UP TO TWO ADDITIONAL HOTELS WITH 325 ROOMS, WITH CONDITIONS
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EXECUTIVE SUMMARY:
At the July 14, 2015 Board of Port Commissioners ("Board") meeting, the Board directed staff to issue a request for Statements of Interest, Qualifications and Vision ("SOIQV") for the redevelopment of approximately 48 acres within the East Basin Industrial Subarea of Planning District 2 ("East Basin Industrial Subarea Site"). The Board subsequently directed staff to also include an adjacent parcel of land within the East Harbor Island Subarea, known as the "Elbow Parcel" at its October 6, 2015 meeting ("Elbow Site") (Attachment A). The East Basin Industrial Subarea Site and the Elbow Site are collectively referred to as the "Site". At the September 8, 2016 meeting, the Board bifurcated the Site and selected Sunroad Enterprises ("Sunroad") to develop the Elbow Site and OliverMcMillan, Inc. ("OM") to develop the East Basin Industrial Subarea Site and directed staff to enter into an Exclusive Negotiating Agreement ("ENA") with each developer for their respective sites. In addition, for the Elbow Site, the Board directed staff to enter into an ENA with Sunroad for a 325-room hotel that does not require a Port Master Plan Amendment ("PMPA"). Following the parameters of Resolution 2016-139 (Attachment B), staff successfully negotiated an ENA with Sunroad HIE Hotel Partners, L.P., a California limited partnership ("Sunroad Partnership"), the entity designated by Sunroad for development of the Elbow Site, for a proposed development with a 325-room hotel that doesn't require a PMPA ("Sunroad ENA")1.
The District has been in ongoing litigation with the California Coastal Commission ("CCC") regar...
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