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<br />City of San Leandro Marina Lodging Development <br /> <br />Page 4 <br /> <br />Marina and would operate at a competitive disadvantage. The primary reason for <br />this is as a result of the number of new such properties that have opened or are <br />being developed elsewhere in San Leandro or along the nearby Interstate 880 <br />corridor proximate to the Oakland International Airport. <br /> <br />At the same time, within the Bay Area, the conference-center lodging market is <br />under-served, as has been noted in a number of various demand surveys conducted <br />by PKF Consulting both in the San Leandro area and elsewhere in the Bay Area. No <br />new, conference-center properties are proposed or are currently under construction, <br />except for one such project proposed to be located in Novato, in Marin County, on <br />the former Hamilton Army Airfield. A new conference-oriented facility at the San <br />Leandro Marina would be noteworthy due to its unique market orientation, new <br />construction, desirable marina location, proximity to two golf courses, and <br />accessibility to both the Oakland International and San Francisco International <br />airports. The accessibility to the two airports will be a key selling factor in the <br />attraction of conference-oriented demand to the conference center hotel. <br /> <br />Our analysis indicates that of all lodging product types, a conference-oriented facility <br />has the lodging components that would best fit the Marina location. We have <br />concluded that a 200-room, full-service, conference-style, destination hotel with food <br />and beverage service is market-justified at the Marina both in the near-term and in <br />the foreseeable future. This facility would be heavily oriented to the corporate, group, <br />and meeting markets. The selection of services and' amenities at the conference <br />center hotel would include those typically found at an upscale, destination <br />conference-center hotel. We have estimated a potential opening date of January 1, <br />2006 for the new conference center hotel at the Marina. <br /> <br />As can be noted, while the described facilities are intended to primarily cater to <br />meeting and conference attendees, the scope of amenities and flexibility of operation <br />of the recommended conference center hotel, particularly with regard to restaurant <br />and meeting areas, would serve local residents as well. This dual-purpose <br />applicability meets the criteria of the San Leandro General Plan. A facilities program <br />for the recommended conference center hotel is indicated as follows: <br /> <br />· 200 guestrooms; <br /> <br />· Main restaurant seating for approximately 200 persons designed with <br />partitioned group meeting areas and offering buffet-style service; <br /> <br />· Separate water view-oriented restaurant and bar for 75 persons; <br /> <br />· Approximately 17,500 net square feet of conference and meeting space <br />with a 5,000 to 6,000 square foot main ballroom; <br /> <br />· Fitness center, indoor swimming pool and whirlpool; and, <br />