Council approves Hotel Lucille covenant under hotel incentive program after owner documents $402,000 in improvements

The City Council approved a hotel‑operations covenant for the Hotel Lucille (doing business as Andalusian Court), a nine‑key property at 458 West Arenas Road, after city staff confirmed the owner documented more than the program’s $5,000‑per‑key minimum investment.

Staff said the property documented $402,000 in improvements (about $44,705 per key). Under the hotel incentive program, staff presented the baseline transitory occupancy tax (TOT) figure and explained the incentive: any increment above the base TOT calculation of $65,716 will be split 50/50 between the city and the owner for up to 10 years or until the owner is reimbursed for total costs, whichever comes first. Staff said the owner has upgraded the pool, exteriors and interior rooms and confirmed the property’s historical touches and past notable guests.

Staff asked the council to authorize the covenant, confirm the owner’s documented expenditures, and allow the property to participate in the committable‑room program for conventions if rooms are available. Council approved the covenant by motion; councilmembers praised the investment and asked staff to include documentation in future staff reports where possible. Councilmember Reddy asked what proof staff requires; staff replied they accept invoices, receipts and bank documents and do not accept informal owner spreadsheets without supporting invoices.

The covenant was approved by the council and staff will execute the agreement and monitor the TOT increment and reimbursement schedule under the program terms.