Two items were pulled from Monday’s City Council agenda.
The Council pulled items 13 and 18, an authorization to enter a contract with Ensemble Real Estate Investments for parking spaces in the Paseo Colorado subterranean garage and a discussion of the process and principles for use of the Annex buildings within Hahamongna Watershed Park respectively.
According to City Clerk Mark Jomsky, the items were pulled to allow more work and consideration prior to it coming to Council.
The items went to the Finance Committee before the City Council.
Members of the committee called for more context on the annex buildings as it relates to the Hahamongna Watershed Park Master Plan.
The Annex buildings were re-acquired as part of $1.2 million, 30-acre property purchase from the Metropolitan Water District under the California Surplus Lands Act.
“As part of the purchase, City Council approved and adopted a resolution to use the property as a park or recreation space in accordance with the Surplus Land Statue,” according to City documents. “Today, this area referred to as the Hahamongna Annex, includes four tenants and one vacant area. The vacant area was previously used by the U.S Forestry Services and contains the eight buildings.”
Cost estimates ranged from $450,000 to $950,000 ($325 to $425 per square foot) to rehabilitate each of the six residential units and about $30,000 to improve each of the two warehouse units, for a total cost of approximately $4 million for all of the buildings.
The cost does not include interior tenant improvements and utility services that may be required, which sets a more all-encompassing price at $6 million.
Committee members also said they did not like the lease on the parking contract would provide up to 140 parking spaces at the rates for parking for the Hyatt Hotel in the Paseo Colorado Garage for a term of 55 years.
When the hotel opened, in December of 2018, Ensemble Real Estate Investments (Ensemble) agreed to pay the validated daily rate of $6 per vehicle to the City for use of a maximum of 99 spaces in the Paseo Colorado subterranean garage.
Payments were made to the City on a monthly basis, and were based on occupancy of the spaces on a per night basis.
As hotel operations continued, hotel management realized they needed to be able to utilize additional spaces during meetings and events and were interested in having more stability in parking expenses.