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<br />CITY OF SAN LEANDRO <br /> <br />CITY COUNCIL BUSINESS DEVELOPMENT COMMITTEE <br /> <br />October 12, 2006 <br />4:00 p.m. - 5:30 p.m. <br /> <br />San Leandro City Hall <br />835 East 14th Street <br />San Leandro, California <br />Sister Cities Gallery Room <br /> <br />HIGHLIGHTS <br /> <br />Committee Members: Mayor Young, Councilmember Badger, Councilmember Stephens <br />(Chair) <br /> <br />City staff present: <br /> <br />John Jermanis, Steve Hollister, Hanson Horn, Tom Liao, Debbie Pollart, <br />Luke Sims, Stephanie Stuart, Sally Barros, Ryan Evans and Tim Ricard <br /> <br />Public present: <br /> <br />Gary Mortara, Jim Lee, Joel Ware and Dan Gregg <br /> <br />The meeting was called to order at 4:05 p.m. <br /> <br />1. Amendment to OPA with Amin Concord LLC for the Hilton Garden Inn at 524 <br />Lewelling Blvd. <br /> <br />Business Development Manager Luke Sims gave an overview of the proposed amendment to <br />the Owner Participation Agreement between the Redevelopment Agency and Amin Concord, <br />LLC, the developer ofthe Hilton Garden Inn, highlighting the business terms. The amendment <br />has been under discussion over the past year to allow more flexibility in the OP A so that the <br />developer can better compete for long-term contracts with airlines to accommodate flight crews <br />operating out of Oakland International Airport. <br /> <br />Tn an effort to maintain the quality of the hotel, two key requirements were placed on the <br />developer in the original agreement: (I) that the property maintain an Auto Club three diamond <br />rating; and (2) that the operator of the hotel be prohibited from offering long-term contract <br />accommodations. This was in response to the situation at The Islander Motel where a portion <br />of the motel converted into what was essentially an apartment building. Sims explained that <br />the experience with the Hilton Garden Inn is not comparable and the because of the restrictions <br />on long-tenn contracts the hotel was unable to compete with the other hotels in the airport <br />market for airline contracts. The proposed amendment will allow long-term contracts as long <br />as the property maintains the three-diamond rating. A summary of the background and <br />proposed amendment is attached, (Attachment No.1). <br /> <br />Mayor Young asked whether there is a downside to the amendment. Sims replied that the <br />airline contracts actually require services beyond the standards of the Automobile Club, such as <br />having three hot meals per day and the result during a recent pilot period had been very <br />successful. In response to a question from Councilmember Stephens, he noted that the long- <br />term contracts are exempt from paying the transient occupancy tax but that arguably the <br />