City to consider Waterfront expansion funding
Eron Ben-Yehuda
HUNTINGTON BEACH -- Despite charges of a “sweetheart deal,” the City
Council is expected to approve next month the final part of a $16-million
financial package to help the Waterfront Hilton expansion project, a city
official said.
The project’s developer has already begun clearing 15 acres along Pacific
Coast Highway west of Beach Boulevard to make way for a 500-room hotel
with a 100,000-square-foot conference center and a 17,000-square-foot
retail plaza. With an opening expected in the summer of 2001, the Hilton
Grand Coast Resort “will represent the most complete and luxurious
meeting destination on the California coast,” according to the
developer’s glossy brochure.
But if the project is such a winner, the city shouldn’t fork over any
money, said resident Bill Bernard, a commissioner for the Orange County
Housing Authority.
“This is corporate welfare,” he said.
Based on an agreement with the developer, Robert Mayer Corp., the city is
obligated to contribute $16 million to the project, said David Biggs, the
city’s director of economic development.
To cover the cost, city staff will ask the council to authorize a request
Feb. 22 for up to $16 million in low-interest loans, he said. The full
amount probably will not be needed because the city already received a
$2-million federal grant and a $6-million federal loan meant for the
project, he said.
The city qualified for the federal money because the hotel will create
jobs for low- to moderate-income families. Those jobs will include
positions such as bus boys, groundskeepers and maids, officials said.
If the city wants to help these needy families, the money would be better
spent building affordable housing, Bernard said.
“I don’t know where they are going to live,” he said.
Part of the money the city provides will more directly benefit the public
by funding the construction of streets around the project and a
pedestrian bridge, which will cross over Pacific Coast Highway, providing
guests with easy access to the beach, Biggs said.
Other local developers, such as PLC Land Co., which builds in the Holly
Seacliff area, do not enjoy the same financial support from the city.
But the Waterfront expansion deserves special treatment, City Councilman
Dave Sullivan said.
“This is looked upon as a real key piece of our tourism puzzle --
probably our most important one,” he said.
In addition to the Grand Coast, the developer plans to build another
hotel and a residential community on adjacent land.
The loans will be repaid over 20 years, Biggs said. With interest, the
total pay out for the city will be about $26 million. But Biggs predicts
a healthy return on the city’s investment with the Grand Coast expected
to generate $3 million in annual tax revenue, he said.Bernard isn’t so
sure.
“These are all iffy things,” he said.
QUESTION
Do you think the city should seek $16 million in low-interest loans to
help the Waterfront Hilton expansion or wait to see how much is really
needed? Leave your thoughts on our Readers Hotline at 965-7175, send a
fax to 965-7174 or e-mail to hbindy@latimes.com. Please spell your name
and include your hometown and phone number for verification only.
All the latest on Orange County from Orange County.
Get our free TimesOC newsletter.
You may occasionally receive promotional content from the Daily Pilot.