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Dadwal Group Selected to Develop New Marina Hotel Site – Monterey Herald

MARINA – The Marina City Council has entered into a development agreement with a well-known entity based on a proven track record in building and operating Fort Ord’s only hotel, which has proven to be a very successful for the city.

The council voted unanimously to authorize the agreement with Dadwal Management Group for the development of hotels on a 9.5 acre site as part of the Dunes On Monterey Bay development project in Marina. The site is located at the end of Second Avenue, just off Imjin Drive and east of Highway 1, on land recently cleared of derelict structures left over from when the military base occupied the area.

“He’s the only developer who’s been able to crack the nut…to build and open a hotel in Fort Ord,” Marina Mayor Bruce Delgado said at the Jan. 11 council meeting. “Other developers have come and gone but this hotel group is the only one to have managed to open a hotel and it has been extremely successful by Marriott standards, by city standards and I think by city standards. hotel owner.”

The city has engaged in discussions with other hotel developers on the site and after reviewing proposals from others determined that Dadwal Management Group has the expertise and experience to develop the site with up to three hotels. for a total of 300 hotel rooms plus additional amenities and parking.

City Manager Layne Long said research shows there is ample capacity in this area for more hotel rooms and Marriott International’s analysis agrees with that assessment.

The city believes that the development of a quality hotel or hotels on the site is of vital concern to the city and that the development will bring significant benefits to the city, including an additional transient occupancy tax, attraction additional community visitors and event facilities. not currently available in the city.

The SpringHill Suites by Marriott, the Dunes On Monterey Bay hotel at the corner of Second Avenue and 10th Street in Marina, was built and operated by the same developer – the Dadwal Group – which plans to build the hotels on the plots across Imjin Parkway from Dunes On Monterey Bay Mall.

The Dadwal Group opened the 106-room SpringHill Suites in 2017, which brought $3.2 million in transient occupancy tax revenue to the city’s general fund, exceeding projections and providing funding for city services, including parks, streets, public safety and recreation programs.

At the time, the new hotel opened its doors three months late due to construction delays regarding the elevators. The developer missed a $1 million incentive to open on time, which would have seen the city pay an impact fee for the new development instead of the developer. The result was a fight between the city and the developer. In the end, the city honored the contract, and the developer paid the fees according to an installment payment plan with interest for the city. The fees have been paid in full.

“The fact that he was three months late to open doesn’t make a difference to anyone today,” Delgado said.

Delgado said he hopes the next hotel project will be just as successful and maybe more because it’s much bigger and is expected to bring in $2.2 million a year.

Phase 1, with an estimated development cost of approximately $74 million, would consist of two hotels currently offered as a 90-room Element Hotel and a 110-room AC Hotel, both Marriott products.

Phase 2 would consist of an additional 100-room hotel.

According to Karen Tiedemann, Special Advisor to the City of Marina, the development agreement is set up to provide for the development in stages with conditions to be met by the Dadwal Group which include a financing plan, an operating agreement with a hotel operator and an agreement under the terms of an operating covenant. Once these conditions are met, the Dadwal Group would acquire the property for $3.6 million.

Dadwal Management Group chairman Harvey Dadwal said the board chose his group because of its track record of building and operating successful hotels, particularly the SpringHill Suites hotel.

“This hotel has been a resounding success in the four years it has been in operation, even during the difficult COVID-19 pandemic,” Dadwal said.

The current Marina Marriott is renowned for its co-ed local design and construction, as well as its community service, including housing the California National Guard during the pandemic.

“I am a local resident who has lived in the area for 27 years and have operated various businesses to meet the needs of the community,” Dadwal said. “The City Council has also been a champion in promoting minority-owned businesses and my group and I are an example of this forward-thinking.”

Dadwal thinks the board also recognizes that the Dadwal Group is focused on serving the community.

A sea side artist rendering project of the proposed hotel design for the Dadwal Management Group by Saballos Architects of Costa Rica. (Dadwal Group)

“The City Council-approved twin resort will increase this community contribution by leaps and bounds while creating an iconic business serving the local community,” Dadwal said. “I have already had discussions with the Dean and leaders of the unique Sustainable Hospitality Management Program at CSU Monterey Bay that the new resort will become the training site for their students to learn sustainable hospitality management during its opening in 2025. This will create and harness local talent from the university’s mostly minority and underserved student body.

Dadwal said he was committed to building a one-of-a-kind iconic hotel with a rooftop bar and banquet hall. He works with Adrian Saballos and his team at Saballos Architects in Costa Rica. Dadwal said Costa Rica has some of the most environmentally sustainable hotels and he expects to develop a hotel that incorporates many of these characteristics.

The Dadwal Group is working with the Founding Dean Emeritus of CSUMB’s College of Business, Shyam Kamath, to provide the vision and support in developing the environmental base of the dual resort.

The agreement between the city and the Dadwal Group includes language that the hotel must be leadership in energy and environmental design, or LEED equivalent, as part of the requirements.