The developer is “aspiring” to take over Seaside (Calif.) Resort at Monterey Bay and accelerate its construction after the original developer, Seaside Resort Development, LLC, tried for 12 years to complete it. If approved, the new developer plans to open the resort no later than December 31, 2021.
A new developer is waiting in the wings “to take over the golf course resort project and accelerate its construction” after the original developer tried for 12 years to get its Seaside Resort Development project completed, the Monterey (Calif.) Herald reported.
“They quietly let it be known that they were interested in selling their entitlement,” said Michael Lutton, chairman of Tieback Holdings, parent company of the proposed new developer. “We approached them and after several meetings…they elected to sell it to us.”
Monterey Bay Resorts, LLC, a Nevada limited liability company, is “aspiring” to be the new developer of the project, replacing Seaside Resort Development, LLC, of Arizona. A joint special meeting of the Successor Agency and Seaside City Council is scheduled for December 7 in council chambers to consider authorizing actions on the Long Range Property Management Plan for Seaside Resort Development properties, the Herald reported.
“Tieback Holdings (parent company of Monterey Bay Resorts, LLC) is the new developer. They’ll develop a five-star hotel and resort, and they’ll start sooner rather than later,” according to Craig Malin, Seaside city manager, in an email.
The development would include a high-end hotel, Lutton said, and though it would not be a Fairmont Hotel as was previously thought, “we’re looking at international brands right now.”
The plan is also to invest in the golf courses to take them up a notch and make them tournament quality. The clubhouse will be torn down to make way for a bigger facility that includes a spa and matches the architecture of the hotel, the Herald reported.
Construction will begin next October with the hotel, clubhouse/spa and condominiums going up. The clubhouse/spa and the first of the condos would be done before the hotel, Lutton said, which will take a couple of years to complete. The homesites will be built later. Seaside Resort at Monterey Bay would open no later than December 31, 2021, the Herald reported.
But first this week, the council and successor agency will consider the new resort development and disposition agreement which includes a transient occupancy tax (TOT) sharing plan that will provide an estimate $72 million to the developer over 20 years while Seaside receives an estimated $61 million in non-land sale revenue. The $3.7 million in estimated annual revenue to the city goes up to $8.9 million after the TOT subsidy goes away, said Malin.
The new deal also authorizes the developer to purchase the Golf Clubhouse parcel for $650,000 and add it to the Resort Hotel land. In addition, it allows for the use of certificates of compliance to transfer hotel and golf clubhouse phases and requires the developer to purchases with cash, not credits, by February 28, the Herald reported.
The project includes Bayonet/Black Horse Golf Courses and the new golf course lease extends the lease term to 75 years, subject to the opening of the hotel, conforms the lease to 2007 Seaside Basin adjudication, reduces the maximum irrigation use from 540 acre feet per year to 500 afy, and it also authorizes a 2018 4th of July city fireworks display, the Herald reported.
According to Malin’s email, “the city’s also getting 40 acre-feet of water back in the short-term, and maybe more in the long term, and $15,000 a month until they start construction of the hotel. We can give a July 4th community fireworks show a try this next year and see if it goes well to continue it and, after the resort’s open, there will be a $10,000 annual college scholarship for children of employees of the resort.”
The city manager said the project would create more than 300 construction jobs and more than 350 full-time hospitality jobs once the resort opens. In an report earlier this year, city officials said the project would cost around $30 million to construct, not including the infrastructure designed to accommodate the entire project, the Herald reported.
The previous developers and the city of Seaside entered into a DDA in July 2005, paving the way for the former Army land to be transferred for development and construction on the luxury resort was to begin soon after. The planned development was stalled “as a result of changed economic conditions that made financing of the planned hotel on normally acceptable economic terms infeasible” according to city documents.
“The important thing is the city wants to see a hotel built, that’s our commitment and that’s what we plan on doing,” said Lutton.