Controversial Downtown Hotel Clears Another Hurdle At Livermore City Council

LIVERMORE, CA — The Livermore City Council this week set the terms for the sale of a city-owned property earmarked for the controversial Wine Country Hotel project in downtown Livermore.

The council also voted Monday night on terms for a $1.9 million loan for the hotel developer, known as 2205 Railroad Avenue LLC, to build a parking structure at 2080 Railroad Ave. The loan's annual interest rate will be 3.5 percent, paid in a lump sump after the hotel is built, according to a city report.

The hotel must still clear additional hurdles at the City Council and Planning Commission before it moves forward.

The Wine Country Hotel proposal is slated for the corner of Railroad and South Livermore avenues. The city will sell the property slated for the hotel for $71,500, according to the agreement established Monday.

"As part of wine country, this is something that's needed," said Karl Wente, COO of Wente Vineyards. "But it's not just for the wineries" — foot traffic would also benefit Livermore's downtown, restaurants, music scene and artists, he added.

Plans for the hotel have been in the works since 2016, when the city first entered into an exclusive negotiating rights agreement with the developer, according to a city report. In September 2018 the city approved an amendment to the downtown plan, which allowed for a hotel.

The proposed four-story hotel with up to 130 rooms quickly drew ire from critics, who complained the design was mediocre and that more parking was needed. They advocated for a park in lieu of the hotel.

Opponents succeeded in gathering enough signatures to put the issue on the ballot. But Measure P flopped in November 2020, with two-thirds of voters supporting the project.

The new agreement approved this week included the following additional items for the public benefit.

• The developer must contribute money to Stockmen's Park to the tune of $30,000 after the hotel's first year. That amount would increase by 1 percent each year, plus inflation.
• Build a public road and parking spaces on the hotel property.
• Allow public access to the rooftop.
• Lease the hotel and off-site parking lot for public parking until construction begins.

The agreement dictated that construction must begin no later than May 2024 and that the hotel must open no later than December 2025.

Livermore planning commissioners and City Council members were expected to review the revised site plan in March and the design in April.