Seaside Resort, the real estate project first envisioned in the late 1990s with the closing of Fort Ord, has been officially revived once more. On June 11, Seaside City Council approved a new development agreement, paving the way for a land sale that will net local government entities about $14 million.
Residential and timeshare units and a hotel with at least 200 rooms will be erected on a 70-acre lot located adjacent to the Bayonet and Black Horse golf courses, according to the agreement between the city and a team of Arizona-based developers, who are organized under a new corporate entity called Cypress Seaside, LLC.
Seaside City Manager Craig Malin says negotiations led to a more viable project and improved the city’s position.
“The land sale moves the project closer to fruition than it has been for years,” he writes via email. “Having the property sold both supplies $14 million to regional public entities and stops the de facto public land-banking that has been occurring.”
Hotel occupancy tax from the resort is expected to bring Seaside at least $1.5 million a year in revenue. Malin notes that the new deal eliminates a previous concession that would have seen the city share the tax revenue with the developers.
The deal was also fortified with a repurchase clause for the hotel site (but not the entire lot.) The developers are buying the site for $5.5 million and if they don’t move forward on schedule, the city would have the option of buying it back for $800,000.
Now, the stakeholders can proceed with the hope that another recession won’t come around and derail the project repeating what happened a decade ago.