Downtown Hotel Gets Council OK
BY CONNIE LEWIS
Staff Writer
The possibility of infusing more tax dollars into a tight city budget, adding 450 hotel rooms to a lagging inventory, offset any negatives the San Diego City Council had last week when it approved construction of a luxury hotel at Horton Plaza.
In a 7-2 vote approving variances, including a 25-foot setback to accommodate the hotel’s lobby, council members paved the way for construction of a $2.4 million, 4.5-star Inter-Continental Hotel to begin in 2004.
“We’re delighted with the council’s action because the need for additional hotel room inventory downtown has been demonstrated in view of the convention center’s recent expansion,” said Sal Giametta, vice president of community for the San Diego Convention & Visitors Bureau. “We’re also happy to see the final piece of the Horton Plaza retail and entertainment complex being put in place. This is a project that began nearly 20 years ago.”
It is expected to take about two years to complete the 30-story, approximately 400,000-square-foot building on G Street between Second and Third avenues.
The property is owned by Westfield America Inc., which owns Horton Plaza.
With room rates averaging $220 per night, the hotel will generate an annual revenue of $2.4 million in transient occupancy taxes. Another $850,000 is expected to come annually from property tax, according to estimates by the Centre City Development Corp.
Six Continents Hotels, the parent company of Inter-Continental, will finance the project, according to regional vice president Gordon Watkins of Phoenix.
Councilwomen Donna Frye and Toni Atkins cast the only dissenting votes after voicing concerns that hotel workers would be paid low wages.
Hotel Employees & Restaurant Employees Union of San Diego Local 30, reportedly had sought a neutrality agreement from Six Continents, meaning the hotelier would offer no resistance to a union attempt to organize its employees.
Union representatives did not speak during the council meeting. Repeated calls seeking comment were made to HERE Local 30 in Mission Valley, but officials did not respond.