ff=
F A X Hotel Association of Los Angeles 4O4 S Figueroa St. #604 Los Angeles, CA 90071 Tel: 213-239-5607
To: Tracy Dudman UCLA Capital Programs Fax number: 310-206-1510 From: Bob Amano, HALA Fax number: 213-239-5617
! Date: 12/8/2011 | Regarding: Luskin Hotel and Conference Center Proposal 1 Phone number for follow-up: I 626-840-9690
Comments: Ms. Dudman: Attached is our concerns and opposition to the proposal. If you have any questions, please do not hesitate to contact me at anytime. Regards,
Hotel Association
of Los Angeles December 8, 2011
Tracy Dudman Senior Planner, Campus & Environmental Planning UCLA Capital Programs 1060 Veteran Avenue Los Angeles, CA 90095 Re: Proposed Hotel & Conference Center Dear Ms. Dudman: It is with utmost urgency we submit our comments in review of the recently held scoping meeting on the hotel & conference center proposal. While you have heard from numerous stakeholders in opposition, the Hotel Association of Los Angeles (HALA) would like to cite our concerns against the proposed project. Let us point out the major issues being proposed in the project: 1) The 250 room hotel property is being exempt from transient occupancy tax (TOT), parking tax and property tax. This exemption would create a major "unfair" competitive environment for the lodging facilities in Westwood and vicinity currently servicing the housing needs of the university; in addition to the severe economic impact to the City of Los Angeles' tax revenue losses. The current lodging facilities (though smaller) on campus do not pay TOT either.....!/ the boutique, independent and smaller hotels in Westwood have to pay TOT, should not the UCLA hotels? 2) There has not been any information or release of a formal business or marketing plan. Why has there not been any plans released for review by the public and impacted stakeholders? Should not there be transparency, especially for such vital project information? Previous studies cited utilization of 40% of current Westwood business, how will this impact the hotels and merchants in the Village? 3) Initial research by UCLA retained consultants reported the hotel can sustain its operations with average daily rates (ADR) in the mid $200.00 range, then later revised its projections reflecting a lower ADR in the $185.00 range. The rate and occupancy projections were compared against the current accommodations in the area. If the university's purpose is to provide the rooms and facilities to UC classified eligible business, how can these projections be valid, if based on non-campus hotels? 4) Further on the eligibility of business exempt from the aforementioned taxes, without a business marketing plan, without established sales strategies, who is the end-user of these facilities? How will the hotel guests be verified eligible for exemptions? UC statutes define eligibility for exemptions.....alumni visiting, going to a game at Pauley, should not be exempt.
Tel: 213-239-5607 • Fax: 213-239-5617 • www.hotelassociationla.com
PROPOSED HOTEL AND CONFERENCE CENTER CONTINUED
5) "Economic blight", "uban decay", adverse impacts to city services costing resources already scarce and consequences to City of Los Angeles budgets. What happens to the facility ififs not "profitable? In hotel industry standards, the number of rooms compared to the build costs, just does not make sense. No sensible hotelier would build or consider this project. Who will make up the losses? State of California? With the UC already in financial distress, student tuition is rising again, who will carry the burden?
While the scoping meeting conducted last month disclosed some of the general objectives of this hotel proposal, we urge you and your committee members to consider our deep concerns for the misconception of a costly facility which has not been given ample analysis nor sufficient feasibility research to determine sustainability. We feel there is a sufficient inventory of rooms currently in the vicinity to provide the needs of UCLA's overnight visitors. The proposed lodging facilities would create a negative impact on the local economy. Thank you in advance for your considerations and proper understanding of our concerns. Sincerely,
Robert Afnano Executive Director
Cc: City of Los Angeles, Council Member Koretz