The Long Beach Redevelopment Agency board this morning unanimously approved the $2.8 million purchase of the Promenade property once slated for a four-star, 165-room boutique hotel project called Hotel Esterel.
The deal, which includes a 15 percent contingency amount for closing costs and other related expenses, brings to an end D'Orsay International Partners, LLC's 27-year pursuit of developing a project on 139 E. Broadway and 201-239 The Promenade North.
In 1982, the developer Alain Sarfatti and a financial partner paid $2.25 million for a 30,000-square-foot parcel that included an 8-story building that once housed the former Barker Brothers furniture store. (The building has since been demolished and what sits there today is a parking lot.)
Over the years, several concepts had been planned for the property, including:
* A mixed-use office and retail project called Promenade Plaza, which fell after investors hoping to reap big from the DisneySea project pulled out after Disney quit its plans;
* A residential high-rise prothat called for a 10-floor building with 140 condominiums above ground-floor retail; and
* An 11-story, 230-room hotel with ground-floor retail space called Hotel D'Orsay, which ran into financial snags following the Sept. 11, 2001, attacks.
Rising costs prompted developers to scale down the hotel project, resulting in its latest incarnation, Hotel Esterel.
"He proceeded with full plans and was ready to pull a building permit, and of course the market collapsed," said Redevelopment Bureau Manager Amy Bodek.
Last spring, the agency began talks to acquire the property from the developer, who has been unable to finance his project. Sarfatti could not be reached for comment Monday.
"We've wanted to see development occur there for so long it's almost been palatable," Bodek said. "This is the remaining gap on the Promenade and we can't afford to let it sit there and be a parking lot for the next 10, 15 years. This was an opportunity for us to get control of the site."
Bodek said the agency will issue a Request for Proposal from developers in the coming months, exploring another hotel or residential concept.
The deal, which includes a 15 percent contingency amount for closing costs and other related expenses, brings to an end D'Orsay International Partners, LLC's 27-year pursuit of developing a project on 139 E. Broadway and 201-239 The Promenade North.
In 1982, the developer Alain Sarfatti and a financial partner paid $2.25 million for a 30,000-square-foot parcel that included an 8-story building that once housed the former Barker Brothers furniture store. (The building has since been demolished and what sits there today is a parking lot.)
Over the years, several concepts had been planned for the property, including:
* A mixed-use office and retail project called Promenade Plaza, which fell after investors hoping to reap big from the DisneySea project pulled out after Disney quit its plans;
* A residential high-rise prothat called for a 10-floor building with 140 condominiums above ground-floor retail; and
* An 11-story, 230-room hotel with ground-floor retail space called Hotel D'Orsay, which ran into financial snags following the Sept. 11, 2001, attacks.
Rising costs prompted developers to scale down the hotel project, resulting in its latest incarnation, Hotel Esterel.
"He proceeded with full plans and was ready to pull a building permit, and of course the market collapsed," said Redevelopment Bureau Manager Amy Bodek.
Last spring, the agency began talks to acquire the property from the developer, who has been unable to finance his project. Sarfatti could not be reached for comment Monday.
"We've wanted to see development occur there for so long it's almost been palatable," Bodek said. "This is the remaining gap on the Promenade and we can't afford to let it sit there and be a parking lot for the next 10, 15 years. This was an opportunity for us to get control of the site."
Bodek said the agency will issue a Request for Proposal from developers in the coming months, exploring another hotel or residential concept.
Paul Eakins reports on Long Beach City Hall, and local and regional
politics. A newcomer to the Press-
Kris Hanson reports on the Ports of Long Beach and Los Angeles,
covering environmental issues, economic triumphs and
pitfalls and trade trends of America’s largest port.
He also writes a weekly column “On The Waterfront”,
appearing Tuesdays, and also produces an occassional video
and column titled “On The Job,” which follows the hard-working
men and women who keep Southern California’s economy humming.
Karen Robes Meeks came to work for the Press-
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