Recommendation to receive supporting documentation into the record, conclude the public hearing regarding an economic subsidy in connection with a Transient Occupancy Tax Sharing Agreement with Breakers Development, LLC, a California limited liability company, for the property at 210 East Ocean Boulevard, Assessor Parcel Number 7278-007-034, pursuant to California Government Code Section 53083; and Authorize City Manager, or designee, to execute any and all documents necessary, Transient Occupancy Tax Sharing Agreement, with Breakers Development, LLC, a California limited liability company, or assignee, for the development of an upscale independent boutique hotel. (District 2)
Thank you. That concludes our presentations. We have two hearings today. We're going to go into our first hearing, which is hearing item number one, and then we'll have our second hearing. So let me turn this over. How can I have a clerk? Please read the hearing, please. Hearing item. Once a report from economic development recommendations received supporting documentation into the record conclude the public hearing regarding an economic subsidy in connection with a transient occupancy tax sharing agreement with breakers development for the property at 210 East Ocean Boulevard and authorize city manager to execute a transient occupancy tax sharing agreement with breakers development for the development of an upscale independent boutique hotel. District two and this item requires north. We go ahead and do the oath, please, Madam Court. You stand and raise your right hand. You and each of you do solemnly state that the testimony you may give in the court now and pending before this body shall be the truth, the whole truth, and nothing but the truth. So help you God. Okay. Thank you very much. So let me go ahead and begin by having our assistant city manager, interim city manager, Tom Modica. Go ahead and do the presentation to me. Thank you, Mr. Mayor. We will have Sergio Ramirez, our deputy director of economic development, give a presentation about this proposal. Thank you, Tom. Good evening, honorable mayor. Council members. The item before you is a transit agency tax sharing agreement for probably one of the most iconic properties on Ocean Boulevard, a property that almost a century ago opened its doors here in Long Beach and as a luxury hotel. But over the years kind of fell on hard times. This item before you tonight is is an opportunity for a new chapter for this property. I have a quick presentation for you. So the subject property is located at 210 East Ocean Boulevard. It's a 14 story building situated on approximately 1.15 acre parcel. So by way of background, the Historic Breakers Hotel opened its doors in 1926 as a luxury oceanfront resort. Over the years, the hotel experienced changes, changes to the name of the property ownership changes, physical changes, and changes to the use. From 1990, up until 2015, the property was operated as a congregate care senior facility. And as I mentioned, the property over the years experienced deferred maintenance and dilapidation. In 2017, Breakers Development LLC, a subsidiary of Pacific Six, a local development company here in Long Beach, purchased the property. The developer would like to reposition the property back to a luxury hotel, the Breakers Hotel and Spa. The proposed development project would include conversion of the existing historic breakers building into a luxury hotel, which would accommodate 185 well-appointed rooms, averaging approximately 400 square feet. The property would be a full service hotel with a spa, dining and entertainment. There would be over 10,000 square feet of meeting and ballroom space over ten that I'm sorry, over 10,000 square feet of meeting and ballroom space over 12,000 square feet of food and beverage would would provide space for a new full service restaurant and bar remodel and reopening of the doors of the famed Sky Room, a new signature rooftop bar and terrace, new ground floor coffee shop along Ocean Boulevard and a brand new destination jazz club venue. The project would also include a new beauty salon spa and a new pool deck would be constructed on the third floor along with a fitness center. As part of the Devon project, the developer will be constructing approximately $1 million in improvements to Victory Park, which will include new landscaping and reconfiguring of vehicle access. The proposed project will create approximately 500 new construction jobs and approximately 240 permanent jobs. Now, I'd like to just quickly take a moment to share with you some of the renderings of the proposed development project. The rendering before you on screen is an image of the new lobby. So this will greet visitors when they come and check into the new hotel. This is a typical guestroom of the new hotel. The image. Here is a picture of the new restaurant in the lobby dining area. This is the picture of the new spa. And this is the pool deck which will be constructed on the third floor overlooking the Terrace Theater and Pacific Ocean. And finally, the new and improved Sky Room, which will reopen upon the completion of this project. And the new feature, of course, the rooftop bar in and Terrace, which will have views of from Pacific Power. I'm sorry, Palos Verdes to Laguna Beach. The developers proposing a total development cost of approximately $135 million. The high cost of development is due to adaptive reuse of the historic building. The city engaged an economic consultant outside party Kaiser Morton Associates, to conduct an independent analysis of the construction costs and projected operating income. Kaiser Marson had determined there was an economic feasibility gap of approximately $37.7 million. The developer has requested a share of the projected transit occupancy tax or what the city would receive. The project is completed. Projected totals to the city because of the construction of the project is expected to be approximately 42 million in 20 years and 73.5 million in three years. Under the proposed TOT sharing agreement, the developer has asked to receive approximately 13 million over nine years. That would translate to approximately 34% of the feasibility gap. During that period, the city would the developer would save 80% of the total and the city would receive approximately 20%. During the nine year period and the assistance would be capped at $13 million. The developer would be required to make a minimum investment of $7.7 million and operate a four diamond rated triple triple A for diamond rated hotel for a period of 20 years. And certify annually under eight and have to operate a preferred hotel flag or better hotel. And the subsidy is similar to the same deal that we did for American Life Hotels back in 2017. Staff recommends that city approve the transit occupancy tax sharing agreement received the supporting documentation into the record. Conclude the public hearing regarding the economic subsidy in connection with transit occupancy. Tech Sharing Agreement with Breakers Development LLC, a California limited liability company for the property at 210 East Ocean Boulevard. Assessor Parcel Number 7278007034 pursuant to California Government Code Section 53083 and authorizes the city manager or designee to execute any and all documents necessary to approve transit occupancy tax sharing agreement with Breakers Development LLC, a California limited liability company or city for the development of an upscale, independent boutique hotel that concludes staff's presentation. Would you be happy to answer any questions? Thank you. We're going to do public comment next as part of the hearing order. And so if I call you or your name, please come forward. The first speakers are Jose Soto. Can you stamp's Anna Evans, Goldstein and Jeremy Arnold? Those speakers could please come forward as a sotto can you stamps Anna Evans Goldstein and Jeremy Arnold, please come forward. Please. Thank you. The City Council. Hello. My name is Jose Soda. I work at Hyatt Centric here in downtown Long Beach. I'm here to encourage you to vote for the 13 million for the Breakfast Hotel Project. However, I have a question about why they have not received a similar amount to the American Life Project. I'm happy to learn about the project the developer has worked on to make sure that the hotel will include benefits to the environment and community. I am happy about the proposed parking plan that the developer has made and effort to increase. Also parks space in the city. The new Tanaka Park and the work being put into the Victory Park will be a great place for my family and me to visit and spend time. The efforts being made to preserve this historic building are good and will be a benefit to our city. We need more projects to include community benefits such as these and hope you will accept the 13 million. Thank you. Thank you. Next speaker, please. Good evening, Mayor Garcia and city council members. My name is Kenya Stamps and I am the associate vice president of sales at the Long Beach Convention and Visitors Bureau. And I'm here along with my senior vice president of sales, Joseph Genesee, on behalf of Steve Goodling. He would like to be here tonight, but he had a previous engagement and could not be here. And we wanted to express our support of this project as it as it relates to the city being able to I'm sorry, the convention and visitors bureau being able to acquire more groups, especially citywide. We have run into situations where because we don't have an upscale boutique project like this, we are not able to speak with certain groups. And so this is a super important project for us. It will open doors for us that we initially couldn't get into and it's a great project for the city. And honestly, we couldn't find a better group of owners that are in full support of the city as well as as their own project. So again, we're just here to express support for this Breakers project. Thank you. Thank you so much. Next speaker, please. Hello. My name is Anna Evans Goldstein and I am here on behalf of Unite Here Local 11. I'm here to voice support for the 13 million total in total for the Breakers Hotel. Pacific six has made strong commitments to a variety of environmental protections and community serving uses, including mitigating greenhouse gas and noise impacts related to both operation and construction. Their commitment to the community has already been realized through partial funding for a newly permanent public park in a park deprived area of the city. The project also includes renovations to Victory Park and as an excellent. Example of. An adaptive reuse of an historically preserved building. However, I want to raise a concern over the process. The proposal for the Breakers Hotel does not seem in line with previous top agreements the city has negotiated mystifying the process by which the amount before you is reached. The American Life Project received an agreement in 2017 of 28. Million to close a. Feasibility gap of 47 million, making their rebate roughly 57% of the gap. The Breakers Agreement is proposing a cap of 13 million for a 37 million feasibility gap, which is only 34% of what is needed to close the gap significantly less than the American Life Project. These two projects are one block away from each other and both slated to be upper scale hotels. If the Breakers Hotel rebate were calculated similarly to American life, the full rebate would be capped at 21 million. So we ask that you approve the 13 million total for this project today, but we urge that this matter is brought back before the Council with a more in-depth analysis for the amount being recommended and to award the missing 7 million. The process must be more transparent. Thank you very much. Thank you. Next speaker and then creative, carelessly. And tonight can be also. Please come up carelessly and to me. Can you please come up? Good evening. My name is Jeremy Arnold. I live in District one. I want to say I'm in favor of the $30 million total t0t for breakers. However, like Mr. Soto, Ms.. Evans. Goldstein, I am curious as to why they are not being offered a similar amount to the American Life Project. There's no explanation in the staff report of how the decision was made to determine the cap of $30 million. There are no indications that breakers should be receiving or sorry. There are indications on that staff report that Breakers should be receiving more in 2017. Long Beach Engage BRT Urban Economics to prepare a hotel incentive program. Study notes in its survey of California hotel development subsidies that, quote, subsidies for four diamond hotels are typically much higher than for three diamond hotels. These subsidies range from 15% to 40% of the total development costs. If we are to take the lowest percentages of this range at 15% of the total development costs of the Breakers Hotel, which is $135 million, the total subsidy would equal 20 and a quarter million dollars in order to be on par with the standard for the state. I'm a huge proponent of environmental protections for our city when it comes to development, and I'm happy to see the numerous mitigations. Pacific says six has put in place the on demand energy management system to reduce energy and greenhouse gas impacts. The additional employee parking spaces and on site information about transit and ride sharing services to reduce traffic and greenhouse gas emissions and the construction related measures to reduce air quality and noise impacts during the construction phase are strong commitments. I urge you to approve. The $13 million. In total now, but leave you with my question about why they're not being offered a similar amount of totty that was offered to the American. Life Project slated. To be built only one block away. Thank you. Thank you very much. Next speaker, please. So. I carelessly here. I love this project. That building is wonderful. And I'm delighted to see that we're going to invest in that hotel. The economic development subsidy does seem like it's a lot. 80% of the transient occupancy tax. I don't object to a businessman wanting to make a reasonable return on investment. I always compare this to my own era in business, and I can tell you that if Boeing couldn't find 10% on their money, it was a no bid. So this particular business is looking for 8%, which doesn't seem unreasonable to me. But what I would ask is if the numbers are not as anticipated and if they make more than the assessed calculations that we just went through, can we somewhere in the deal have the ability to recalculate and bring money back to the city? So I'd hate to give them a giant windfall profit at our expense. Thank you. Thank you. Your last speaker, please. So I can face success for president. There's a developing trend across the country with. The matter of. Boutique hotels. Uh, I actually, uh, work at one in downtown L.A. and I have to say. But there is an interesting trend in which. The rise. Of boutique hotels, you know, young hip millennials and maybe older generations that want proximity to millennials, you know, so this is the boutique hotel. Thing. And I think it's great. The issue is, is when they don't work, because what often happens is a partnership with entities like Airbnb, where they convert hotel rooms into apartment hotels. This is happening currently in, uh, in southern. San Diego County as well as Sacramento, Oakland and San. Francisco. This isn't a by chance or a coincidence. This is a clearly a, uh, a business tactic used by a lot. Of major. Developers when the hotels don't work. They do this? Personally, I'm indifferent towards this project as a whole. I think 80% is inappropriate. But for me, if, let's say. Karma, I read. The report that they had and you know, there's certain stipulations which I think, uh, it goes without saying, the diamond, uh, the rating is that's imperative. But for me, if we going to invest public funds. Coming out of Missouri. Uh, which was supposedly supposed to be used to maintain a certain number of firefighters and police officers, if we're going to dedicate that money and to. Making sure this development occurs. I think that there should be some kind of, uh, agreement with, uh, Pacific six that. Uh, they can't turn any of these hotel. Rooms that they can't fill into Airbnbs. Or if there is the case. That they are going to uh. Designate a certain percentage of the rooms into Airbnbs. That they should also pay an annual. Permit per room like any, any other. Provider Airbnbs do for the city in addition to the taxes that they're going to pay as a hotel provider. Outside of that, you know, you could do more with the. Community benefits, but we'll take what we can. Get. Thank you. Thank you. I don't have Ms.. Control signed up, but I will please come forward and speak. And we just need a please sign up for the council, so please go ahead. Thank you. I'm. Curious as to why. This is being done that the developer claims he needs money for historical restoration of this hotel when they're adding a swimming pool, which was never there before. A rooftop bar and a large circular driveway which is taking part of Victory Park. True and true they are. Putting. A new park in another part of town. But the. Coastal Act requires that if you take park land from the coastal zone, it has to serve the people that are in that zone. So any restoration of Victory Park should have been in downtown. My biggest concern about this is when the nine years is going to start. If it starts next year, 2020. We are having the Olympics here in 2028. That's eight years. So I'm assuming we're expecting a lot of people to come and stay in our hotels during the Olympics, will be losing all of that hotel tax or at least 80% of it. During the Olympics and you're shaking your head. Council member Mungo. I hope you'll explain how this doesn't affect the Olympics. I feel that we bend over backwards to help John Molino. Restore the breakers. We've already. Signed a contract with him, and now he wants more. He got part of Victory Park. We are subsidizing him to. For seismic. Repairs for community hospital, which he will profit from. I am against taxpayers subsidizing this project. Thank you. Thank you. With that, we will conclude public comment and I will move on now to a deliberation from the council council member Pearce. Thank you. I want to thank staff a great deal for their work on this. I know that this has been a topic since the company decided to to purchase this building for, I believe, $40 million. Correct. $40 million. And so I want to thank staff. I know that they've done a lot of hard work. I want to thank Pacific Six for really being a community partner. And I want to address some of the community concerns and really talk about why this project is a historic moment for this council. My work before I got on council was around community benefits. It was around responsible development. The organization I worked for put out a report about subsidies to hotels in particular. We subsidize the Hyatt on city land for $76 million with no strings attached, with no community benefits, with no worker standards, with none of that. In about 20 years, the city gave away nearly $1,000,000,000 to developers that weren't based in the city of Long Beach. What we have here is a project that is a cornerstone of our downtown. We have here a project that is a historic building that is gorgeous, that everybody that drives by it wants to go inside. They want to experience it. They want to go to the rooftop nest that's been up there. Now we have a developer that not only wants to really invest in it and really protect it and make it shine, but those developers are Long Beach based that we're keeping Capital Local, that we're saying for every dollar we invest in our local community, we're going to get a return on that investment for every good job we create that has a living wage. We know we get $3 back in our community for every dollar of that living wage. So what I see here is a project that is invested in parks, that's invested in historic preservation, that's invested in its workers, to say we have 200 workers that are going to have standards and a seat at the table. And those workers will likely come from Long Beach community. We know about 90% of Long Beach hotel workers live in Long Beach. And so for me, the idea of a community benefit is exactly that. And it is having a partner that is based here that's willing to give back. This isn't a giveaway, though, because this building for many years wasn't a hotel. We didn't get any tax dollars returned on that. We didn't get a total return returned on that. So by year 13, we are going to have a return on our investment is not the right number. I know that we've got. Yes. By year 13, we will have received back our 13 million that we gave up in the beginning. And so that again is a return back on our investment. I support this project. I do have a couple of questions. I know that we have struggled as a city to try to figure out how we wanted to do a total plan, how we wanted to address this, because we know that in other cities they don't just do a T or T share deal. They give away the whole house, they give away everything just to try to bring people in without community benefits. So understanding the difference between the American life deal, which I believe was 57% of the gap versus the 34% of the gap. Can you explain on that, please, John? Or Sergio. Certainly a council member. Yeah. So so the deals are essentially the same from a percentage basis, 80% of TOTY over the first nine years of of the 20 year deal. But when we look at a project like American Life, which estimates to cost a total of 262 million, versus a project that is estimated to cost a total of 135 million. The percentages what you put in leads to a different outcome. So ultimately, between these two projects, it's a matter of scale. And so 80% of a much larger number is going to yield a much larger number. And in this case, the American life deal will return up to 28 million over that nine year period. The minimum level of construction or investment is 230 million. And as a comparison in this deal, the total over the nine years is 13 million because the minimum level of investment is 70 million. So these are vastly different projects in terms of scale, and as a result, they're going to return a different number in terms of subsidy. And so in looking at that difference in between the gap, did you guys consider that? Did you have conversations about that, that it wasn't as much as American life? I'm just definitely so one of the things originally the developer had requested 80% of total for a 20 year period. And so I think what we had said, because we didn't have doesn't have a policy regarding due to subsidies. We looked at the most recent deal the American be that being the American life and and structured RDL based on that framework. Okay. As I mentioned, I support this project. I know John and I, we don't always see eye to eye on everything on this project. I wear eye to eye and I really respect the level of community engagement you've brought to it. I do want to hear from my colleagues if there's an interest in exploring that next piece of the conversation. But I would encourage my colleagues to vote yes on this tonight. It's a great project and it's a historic moment for the residents, as well as the city of Long Beach. Thank you. Thank you. Next up is Romney. If you could take a few if you'd like. Did you want to make some comments or three questions? Okay. Let me go to Councilwoman Price. Thank you. I, too, am supportive of this item. I do have a few questions. The first is, did I read it correctly that there's a 20 year minimum operating period that's required pursuant to this agreement? That is correct, Councilwoman. I'm sorry. I may have missed that during my comments during the presentation. That is correct. There is a requirement for the an operating period, a minimum 20 years. Typically, the life of hotels is about 25 to 30 years. But essentially what we've done is required a 20 year requirement period for operation to ensure that we're able to recoup our investment, but plus the latter years, which is where we really see kind of the return on investment. Okay. And the $70.7 million investment that is part of this agreement on behalf of the developer, is that is there a timeline for that when that investment has to happen? Does it happen before the the occupancy permit does, or is it through the life of the contract? No, that that's a great question. And yes, that happens before the occupancy. Once the project construction period is completed, those numbers are certified by an independent third party to ensure that that level of investment has occurred. Okay. What happens then at year 15 on in terms of a requirement for ongoing maintenance by the operators to ensure that at that time, when the city is receiving the full top contribution, the hotel is at optimum condition to be able to attract customers. Great question. Again. Again, part of the requirements that will be built into the agreement is a requirement for an annual certification of Tripoli's for Diamond certification, Triple A. The Automobile Club has a kind of rates, hotels and whether it's year one or year 30, there's a minimum standard that requires kind of certain level of detail from everything from guest experience, service, food and condition of the physical, physical condition of the hotel. If something is off in see, for example, the towels aren't soft enough or you know, the, you know, for maintenance they don't receive that rating of like for diamond. And so that is going to be built into our requirement of our hotel, of our of our agreement to ensure that from day 1 to 30. I'm sorry, you're 30. The condition of the hotel is of that of for for for Diamond. And and I don't know this because I'm not in the hotel industry, but do they have like an annual audit of the correct regulatory agency? But I guess the the certifying agencies to determine whether they're at that. So so Tripoli actually sends out certification. There's a certification that Tripoli conducts. The folks from Tripoli come out and the experience, the hotel, walk through it and experience it and provide that certification and that know whenever you go to a hotel, you'll see kind of at the entrance or lobby it's presented and it's in a prominent location . And that certification is what we will require to make sure that we are able to then provide our reimbursement of the total. Okay. That's great. And I think that the I wanted to some assurance on that because I do know that there are folks who are interested in this high end type of hotel will be will look to resources that will list the hotels in the different parts of the region that are part of a particular hotel group. So it's important for me, if we're going to invest in this, that at the time the city is going to take over the full totti, that the hotel continues to be in the condition where people would want to stay in it. I'm very excited about this project. I think the fact that it's a historical preservation but yet an update and improvement project is huge for the city. This is definitely an area where we're lacking in the city in terms of services that we offer to visitors. And I think we've made so much progress in the city in terms of development and businesses that we're trying to attract to the city that we really need this this type of a hotel. To give folks yet another option for visiting the city. I'm very excited about it. I think, you know, historical preservation is important, but also updating the services, the look and what people and meeting the needs of what consumers want is critical for success. So at some point you have to merge historical preservation with reality. And I think this this project is going to do that. So I'm grateful for the partnership and I thank staff for your thorough job. And I know several of us reached out today for additional information on this item. So I want to thank you for all the work that you did behind the scenes to get us briefed for tonight. Thank you. Thank you, Councilman Mongo. I will echo Councilwoman Price's comments related to preparation. I appreciate city staff providing the report that was detailed with all the addendums. I think that it's important for us to recognize that investments such as these are also a risk. And so we appreciate Mr. Molina taking a risk on Long Beach. He has a track record of being successful here. We appreciate that as well. I really appreciate the detail that we went into related to knowing and understanding the 80% sharing. I know I've shared my thoughts with staff, but in the future, as we look towards these opportunities, when you go year by year through the investment to MBS controls question the um, the number could be reached earlier than nine years and the project could cap off because the $13 Million cap could mean that it is achieved in five years. It just depends on the success of the hotel. And so with that, we would still be sharing in those revenues. Once that cap is reached, they would all come to the city, and that's a benefit. The other benefit is the property is getting significant improvements and those significant improvements show up on our property tax rolls . And while we do not get the lion's share of property tax, the County of Los Angeles does. And those are still programs that are are universal to the region. And then a percentage of that, a small percentage of that does come to the city of Long Beach, and we will benefit from that. And so if not, but for Mr. Molina's investment, we would be receiving zero. We would just be receiving the old property tax value, which is less than the current property tax value, significantly less should that property not have been purchased. So we are already in a better position today than we were under the previous operators and now we have a new revenue source that was not available when it was a senior care facility. And this is just a turning of the time, but with a elegant look back at our history. And for that I am thankful and just once again, I appreciate my colleagues and the amount of work that went into this. I know that it is not easy to bring together all these moving parts in a successful way and to do it and to do it in a way that is meaningful for workers. The community and history is is really remarkable. Thank you. Thank you, councilwoman. Councilman, super now. Thank you. Vice Mayor De Andrews could not be here tonight, so he asked me to read a couple of comments on his behalf. So this is from D. Andrews. I support the request of the Breakers Development LLC to be granted a subsidy in the form of a TOT sharing agreement. The revitalization and renewal of the Breakers into a luxury boutique, hotel and spa will transform a property that has lagged behind the rest of downtown Long Beach development. This new development will be generating millions of dollars of new TOTTY and creating hundreds of new jobs. These are new revenues and jobs the city would not get if the breakers were not redeveloped. I believe that we I believe that we are if we are asked by the developer for assistance in financing and revenues of this project, it is incumbent on the City Council to respond favorably to that request, for it will still guarantee US revenue that we would not ordinarily get if this project was not built. And he concludes by saying, I ask for my colleagues support. I'd just like to say that community hospital or Miss Maryland is an investment community hospital was mentioned that got my attention that's in the fourth council district. But I'd like to remind everyone that community hospital was built in 1924 and the Breakers was built in 1926. So I'd like to commend Mr. Molina for investing in one of our newer properties. Thank you. Thank you, Councilman Richardson. Thank you, Mr. Mayor. And I'll be quick. I love this building. I love this project ever since I first heard about this project. I think with our beautiful downtown, we do not have enough rooftop lounges and rooftop venues. And this from these renderings, it looks amazing. The pool looks fantastic. But my favorite part is going to the jazz club, and I'm surprised it hasn't come up as much. We love live music. We will be active patrons of this jazz club. Separately from that, I like. There's a lot to like about the project and I think we should lift up some of those things. So I know that there's a lot of focus on TLT and Council among them interest in property taxes also. There's also sales tax. There's a lot of good things about this. So, Mr. Chrysler, so quickly, could we summarize what is the full picture of new revenue for this that the city will realize on this project? Council member, if I may have me answer for Mr. Kessler in your one kind of new revenue, even with the share of total subsidy to the developer, the city is going to be receiving just under 400 $400,000. And then, of course, it escalates in the when once the subsidy burns off, the city will jump to the subsidy . I'm sorry, the revenue to the city will jump to $2.2 million. Overall, total kind of revenue to the city will be approximately $66.8 million from this property. Even with the subsidy. And aside from your staff time to negotiate. This was the city's investment that that. It was a number $66 million over three. I'm sorry. It was the city's investment. Aside from your staff. I think it's just staff time, a consultant staff time to review this and to make sure. And, of course, legal legal costs to review this. So aside from soft costs of staff, this this is a strategic investment. It makes a lot of sense over the long term for the city. And is projects like this that we are able to balance our budget, advance more city services, police officers, firefighters, parks, libraries. It's because of projects like this. I commend you also commend the developer and everyone who has been involved in this. I also want to say it's great to see that, you know, a lot you know, Councilman Pierce mentioned it. This wasn't the way the development took place in the past. You've got business and labor together. The community is happy endorsing a solid project. It makes the choice very, very easy for me. Was that you're going to say no? Councilmember One thing I want to mention is that one thing I would just want to clarify that this isn't money that we're actually kind of paying the developer. This is new revenue that is generated from this development. It exists clear on that. We've all it cost us nothing, relatively nothing. And this is almost $77 million in revenue over three. Thank you. Thank you, Councilman Ringa. Thank you, Mayor. Just one quick question. Is there any part of this project that touches the coastal the coastal line, the coastline? It was mentioned before. Well. I don't believe this requires a course of development permit. It's just on the outside of the course of development permit area. Exactly. Well, thank you. But I you know, I have to agree with everybody who's spoken so far, because this meets a lot of criteria. It's a remodel, rebuild. It's bringing in revenue will eventually. It creates jobs. And it has a community benefit. What else could we want? Plus, no expense to the city. So I think that when it comes to this project, it's it has a lot more pluses and minuses and I'm told, in support of this project. Thank you, Councilmember Pearce. Yes, Rex, Councilmember Richardson reminded me you guys have a great music program. Was that in the presentation? I missed it. Did you talk about it? We talked a little bit about the jazz club and of course, the venues, but maybe the developer would like to maybe talk touch upon the. He's like, I don't want to. I don't want to. I'll just be a having having a Long Beach based company come in and do this means that we're going to have local musicians come in, not only in the jazz venue. Right. But throughout. And that we're going to have a connection with our schools. They're going to bring in the high school music guys and come in and they're going to jam for us. I mean, there is a great synergy that we don't have anywhere else in downtown. I just want to make sure that that's lifted up so that the press can come and bug you about it later on. It's great to hear my council colleagues thoughts. I'd like to to move forward with the motion. Could you also come back with just a deeper dove on the total? So we have an understanding. You can do that. Awesome. Great. That's right. Thank you. That concludes council comments. I just want to just add that just more broadly speaking, I've I've obviously been I've encouraged us to think about our TOTTY as a way of attracting and ensuring that big projects and projects of significance could get built within our downtown. And I'm really glad that over the last few years, the city has begun using that as a as a mechanism for attracting quality projects. There are cities, some that are just a few miles from here that will provide 100% of Totti to build projects. And essentially that's that's not uncommon. And so I think and in some cases not get much out of that for the community or for labor standards. And so I think that to have a project of this significance that would not be happening if it wasn't for the commitment of the team involved. And I just want to thank the team for working with us, working with the team to ensure that we not only end up with what is really going to be a spectacular regional draw, but also one that provides support for our environmental goals and certainly our goals as it relate to worker standards and representation for those that are working there. So I think those are all things that are very important and I do want to thank the team for for doing that. And the last thing I'll say is there are there are hotel projects in L.A. in the broader state that literally that the hotel just alone, that one project brings in folks from across the state and the region because of the quality of the project. That's, for example, it's like the Ace Inn in downtown L.A. And this this project has the potential of being a a a hotel destination, where I think people are going to come in from across the state to visit this this location and enjoy the amenities and all the of the experiences that people can have in this space. So congratulations to the team and with that, members will go ahead and Castro votes. Motion carries.