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Developers propose nine‑story hotel replacing parking at Bay Esplanade; council asked to allocate 91 hotel units from density reserve
Summary
A proposed development agreement would demolish existing hotel/parking at 10 & 18 Bay Esplanade, preserve the Palm Pavilion restaurant, and build a nine‑story project with 144 units (requesting 91 units from the Beach by Design hotel density reserve); staff sought council direction on density and project elements.
City planning staff presented a development agreement request May 18 for property at 10 and 18 Bay Esplanade. The proposal would preserve the existing Palm Pavilion restaurant but demolish an adjacent hotel/parking structure and replace it with a nine‑story development containing 144 units (136 units per acre) and about 173 parking spaces.
The applicant asked the city to allocate 91 units from the Beach by Design hotel density reserve to reach a proposed total of 144 units and a height of 75 feet above base flood elevation. Staff said the application complies with the community development code and with most Beach by Design standards but requires council direction on the requested allocation from the hotel density reserve.
Planning staff noted the property sits in the tourist district and that the Palm Pavilion would count as an amenity to the development. Questions from council focused on construction impacts and how the proposed allocation affects the remaining pool of reserved hotel units; staff said approval would leave roughly 19 units of the original reserve unallocated.
Why it matters: Allocation of units from the hotel density reserve reduces the pool available to other future projects and is consequential for how the coastal redevelopment area evolves. The council’s direction will determine whether staff proceeds to negotiate a formal development agreement with required terms (parking, access, amenities, and flood elevation compliance).
What’s next: Staff requested direction from the council; if the council supports the allocation, the planning team will proceed with drafting a development agreement and bring it back for formal approvals and any required environmental and permitting reviews.
