Council Approves Shade Hotel Lease Amendment

The Redondo Beach City Council approved Tuesday night a third amendment to its lease with Michael Zislis for the parcel on Harbor Drive where Zislis plans to build his second Shade Hotel.

The previously amended lease states that demolition must have begun by Feb. 1, proof of financing provided by March 1, and construction started by April 1. Zislis could postpone the deadlines for up to 3 months at a cost of $10,000 per moth.

Because of issues relating to the project's architecture and financing, Zislis requested a 120-day extension for the proof of financing and start of construction deadlines to Oct. 1 and Nov. 1, respectively, according to the city staff report. The extension fee is still $10,000 per month.

The council approved this 120-day extension.

The deadline for the hotel's completion is Nov. 18, 2014.

"I'm paying rent right now out of my own pocket … so I have every incentive to get it open by Nov. 18 of 2014," Zislis told the council at its May 21 meeting. "I wouldn't be putting all of this at risk if I didn't feel it was going to get done."