Beverly Hills Negotiates Big Development Bucks from Chinese Firm Wanda

BEVERLY HILLS, CA -- Chinese development firm Wanda will be paying the city a hefty fee for the rights to build a luxury condo-hotel complex, One Beverly Hills.

In the tentative deal, announced Friday, Beverly Hills is poised to rake in $60 millions upfront from Wanda Group, according to a statement from the city. Wanda will also pay an extra tax on top of the transient occupancy tax for its hotel rooms and a percentage of sales on its condos.

Wanda will pay a "surcharge" of the gross room revenue on top of the 14 percent TOT. In addition, the company will also pay an increased "Environmental Mitigation and Sustainability" fee, meaning Wanda will pay 1.25 percent of the first sale of any part of the property and 2 percent on any following sales.

City officials estimate the deal will net the city $820 million over the next 30 years.

“Without any doubt this is by far the best development agreement ever negotiated for Beverly Hills, and possibly the richest development agreement per square foot negotiated anywhere by a municipality,” Mayor John Mirisch said. “If approved, the revenue will help fund infrastructure improvements, public safety and cultural programs that will ensure that Beverly Hills remains an ideal city for residents, businesses and visitors.”

The deal is contingent on the City Council's approval, which will take up the issue at its next meeting on Nov. 7.

-- Photo courtesy of Wanda Group