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Council approves 90‑day extension for Grand Hyatt construction loan, developer to pay monthly fee if delayed
Summary
Seaside extended the schedule of performance for the Grand Hyatt resort hotel construction loan to July 31, 2025, approving a negotiated monthly fee intended to compensate the city if closing is delayed.
The Seaside City Council voted to extend the schedule of performance for the Grand Hyatt resort project on May 15, approving a negotiated 90‑day extension to secure a construction loan. The extension conditions require the developer to pay the city $40,000 per month for any months past the current deadline; if the developer secures a construction loan by July 31, the city will not collect the initial $120,000 that accrues during the extension.
Background and terms
The Grand Hyatt resort project has proceeded in phases for several years: the residential portion being built by Shea Homes; a time‑share and hotel parcel pending construction. The current owner group (Seaside Peninsula Acquisition Group / SKDG) requested an extension to obtain a construction loan. In negotiation, city attorneys and staff arranged a structure under which the developer would: (a) obtain the necessary appraisal and construction loan by July 31, 2025; (b) if they do not meet that date, the developer would owe a previously agreed $120,000 (the first three monthly payments) due August 1, 2025, and continue $40,000 monthly payments thereafter while the delay continues (the staff report sets a payable period up to 36 months as a negotiating cushion).
Council remarks and context
Council members asked whether the appraisal and loan process could take longer than the set date; staff and the city attorney said appraisal timelines are controlled by lenders and independent appraisers and therefore not guaranteed. Staff reported the developer has added an investment partner and the appraisal process is underway; councilmembers said the monthly fee helps make the city whole if TOT or other benefits are delayed because the hotel has not begun operations.
Vote and implementation
Council approved the extension and the related agreement by voice vote at the meeting. Staff will monitor compliance with the new schedule and report back to council as required.
Ending
Council emphasized both support for the development goals and the need for accountability and a financial cushion for the city if closing slips. The extension allows the developer more time to secure financing while compensating the city during the additional delay.
