Hospitality Development – Economic Development

AT THE HEART OF LOS ANGELES'S TOURISM BOOM

Gardena is at the heart of Los Angeles’s tourism boom. As the Los Angeles Rams make their glorious return to Los Angeles, Inglewood’s Los Angeles Stadium at Hollywood Park complex is going to draw visitors from all over country, if not the world. We’re ready to support this boom and have sought innovative ways to support the upcoming demand the tourism industry is going to require throughout the South Bay and Los Angeles by instituting programs and hotel friendly code amendments to support new development.

We understand that Hotel development can create additional tax revenues, create jobs, and can stimulate the local economy through the development and construction of other new buildings and businesses by attracting new visitors who may frequent local restaurants and retail stores.

Over the last few years the hotel development market has changed dramatically. Construction, real estate, and labor costs have all increased and have made development unfeasible in areas throughout Los Angeles without the assistance of incentives. Therefore, in an effort to spur hotel development, or re-development into existing hotels and motels throughout the City, we have instituted a hotel incentive program.

Here’s How the Program Works:

A feasibility study would need to be conducted by the developer, owner, or investor to determine a feasibility gap. Once a feasibility gap is determined and verified, the City will reimburse the developer up to 100% of the funding / feasibility gap through a TOT development agreement.

Mechanism for Funding & Limits:

The program is funded by new TOT generated by hotel, or additional TOT created over the base for existing hotels/motels.
The City will reimburse up to 100% of the funding gap for a 3-5-star hotel per year, over 20 years, or up until the funding gap is repaid.

Eligibility & Program Criteria:

Hotel projects must meet at least a three star or higher rating.
Hotel project must have 60 or more rooms.
Hotel projects located in certain areas of the City are also eligible for City permitting and fee waivers.
Existing hotels seeking funds for redevelopment must measurable and demonstrably improve the level of quality of the hotel through either increased capacity or ability to charge higher room rates.

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