On January 18, 2019, the City issued Request for Proposals (RFP) No. 2019-100-KB for development of a mixed-use project with a cultural component. The City received two proposals in response.

On July 18, 2019, the Evaluation Committee ranked Pacific Star Capital, LLC as the top ranked proposer, and Menin Hospitality and KGTC, LLC as the second ranked proposer.

On October 19, 2019, Resolution No. 2019-30149 authorized simultaneous negotiations with the two proposers, provided that final award recommendation and contract material terms be subject to Commission approval.

On January 6, 2020, the Administration, aided by the City’s real estate consultant, CBRE, Inc., met with the two teams to discuss their proposals, including timeline, proformas, and community and public benefits.

The City’s RFP proposed redevelopment of the Byron Carlyle Theater and abutting surface lot P85 (31,500 sf combined), with an option to include surface lot P80 (12,625 sf).

Pacific Star proposed an 11-story building with 160 hotel rooms, 11,430 sf retail, and 23,220 sf theater/cultural component, with a 2-story restaurant/retail building on P80. The developer proposed a 99-year lease of the main site at a price of $8.8 million to the City, and purchase outright of lot P80 for $3 million.

Menin Hospitality proposed a 7-story building with 114 residential units, 9,460 sf retail, and 10,410 sf cultural component, with a 5-story office/retail building on P80. The proposal sought conveyance of title by the City for both the Byron theater site and P80. In exchange, the developer would deed the cultural facility back to the City.

Following the January 6 meeting with the developers, CBRE provided an initial report of discussion items and follow up questions (Attachment A). Since then, development projects have largely been paused while the Administration focused efforts on the City’s pandemic response. Both developers have since confirmed to the City that they remain interested in the project. The Administration, with the assistance of CBRE, will now resume negotiations with Pacific Star and Menin Hospitality. Staff hopes to return to the Committee in the next few months with negotiated term sheets for discussion.