Grover Beach may help developer fund hotel project

October 7, 2016
Matthew Bronson

Matthew Bronson


As a reward for potentially generating millions of dollars in tax revenue for the city, Grover Beach may financially assist a developer that plans to build a hotel on a site with no water and sewer connections. The developer is requesting a few forms of financial assistance which total more than $2 million.

Los Angeles-based development firm Urban Commons is planning a 132-room hotel at 950 El Camino Real, which is located near Highway 101. Urban Commons has secured financing for the project and plans to begin construction this month, according to a Grover Beach staff report.

However, the developer is requesting financial assistance from the city in order to afford the costs of installing water and sewer mains. The water main is expected to cost at least $1.38 million, and the sewer main is expected to cost $754,000.

In a letter to Grover Beach City Manager Matthew Bronson, Urban Commons requested the city consider paying half the water main costs, or $690,000, and 60 percent of the sewer main costs, or $452,000.

Additionally, Urban Commons requested that Grover Beach waive most of the transient occupancy tax (TOT) that the developer would pay over the first five years of operating the hotel. Urban Commons offered to pay just $778,000 of the projected tax bill of more than $2 million.

In all, the financial assistance would total about $2.4 million.

Bronson stated in the staff report the planned hotel is an important economic development project that will broaden the city’s tax base. He suggested the city council consider providing financial aid to Urban Commons, which could come in the form of upfront reimbursement for infrastructure costs, reimbursement overtime and/or deferred payments of development fees and/or TOT.

Grover Beach’s general fund reserves are only about $350,000 above the mandatory 20 percent minimum. Financially assisting Urban Commons may involve the city borrowing money from its wastewater fund, according to the staff report.

On Monday, the issue was on the agenda at a council meeting. The council opted to take no action and continue the hearing in the near future.



  1. CCCentrist says:

    OK, 950 El Camino Real is in that tree filled zone along the frontage road north of AJ Spurs and ManRock Brewing Co and just south of 4th Street, Oxford Suites and Motel 6. I understand that hotels can bring in some tax revenue (after waiting 5 years, in this case!), but why do we have to continue destroying some of the last remaining natural habitat in our area to mostly benefit the few? The entire Central Coast, especially there, has had the natural rain drainage and creeks destroyed by the last century of development.

    There are numerous developed spaces already for lease that could be used for this purpose, some just across the freeway on Oak Park Blvd. have been vacant for years.

    And letting the city borrow/creatively-move money around to GIVE non-local investors $2.4 million so they can further urbanize our coastal corridor? No!

    And, yes, as many here have pointed out: where is this new water use going to come from? It’s ironic that the city is considering gifting the developers with the water main, to use more of one of our most precious commodities, while CA dries up.

    So yeah, let’s fight this, and future projects that inefficiently destroy our natural resources! And follow the money, as others here have proposed.

    (7) 7 Total Votes - 7 up - 0 down
  2. citygirl says:

    of course, John Shoals has his mitts in this, that is what John does, after all he was mentored by Adam Hill.

    (6) 6 Total Votes - 6 up - 0 down
  3. AmericaBeautiful says:

    Yeah, let’s change the Central Coast so it looks exactly like Irvine or Las Vegas and make sure we have lots more traffic and problems.
    This will be a horrendous mistake…but lots of you retirees won’t be around to see your sad legacy.

    (10) 10 Total Votes - 10 up - 0 down
  4. CentralcoastRN says:

    How about The City of Grover Beach fix our roads WITHOUT taxing its citizens? How about Grover Beach straighten out the seedy hotels ALREADY in Grover?

    Water rates have gone up because of their mismanagement.

    I don’t trust the City Council to make good business or money decisions.

    (27) 29 Total Votes - 28 up - 1 down

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