Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Claremont approves operating covenant and TOT rebate for 120‑room Residence Inn by Marriott
Summary
Council approved an operating covenant with Sushil Capital LLC to support a 120‑room Residence Inn by Marriott in southern Claremont, authorizing TOT rebates equal to 50% of generated TOT for up to 10 years capped at $4.5 million and requiring a minimum of $250,000 TOT revenue in year one; the measure passed unanimously.
Claremont — The City Council unanimously approved an operating covenant on March 10 with Sushil Capital LLC to support the long‑term operation of a 120‑room Residence Inn by Marriott on the site of the former Knights Inn at 721 S. Indian Hill Boulevard.
Staff explained that the agreement would rebated 50% of transient occupancy tax (TOT) generated by the Residence Inn for a 10‑year term, subject to a $4.5 million cumulative cap. The covenant requires that the property operate under a branded Residence Inn (or similar quality brand) for the full term and includes a guarantee of at least $250,000 in TOT revenues in the first year, with that minimum adjusted annually by a cost‑of‑living factor.
City staff said the Residence Inn is expected to create roughly 20–25 full‑time equivalent positions and provide a high‑quality local lodging option for visitors to the colleges and local attractions. Ashok Patel of Sushil Capital LLC answered council questions about how many positions would be full time versus part time, saying hotel operations typically average about 12–15 full‑time equivalents with additional part‑time staff.
After a brief public comment period and council discussion, the council moved, seconded and approved the staff recommendation to authorize the City Manager to execute the agreement, subject to minor non‑substantive modifications. The vote was unanimous.
