Civic Center Project “Paused”!

Pasadena City Hall (Photo – Pasadena Police Department).

Impassioned pleas against the KHP Hotel project in the Civic Center filled the chamber at the Pasadena City Council meeting Monday night, as residents protested the City Managers’ proposal to give a public subsidy to a private developer in order to encourage the developer to build a 6-story hotel that one resident called “a behemoth”.

By John Prosper

As part of its original submittal in 2013, KHP proposed to pay to the City a required lease payment of at least $300,000 per year, in order to build a hotel on city property.

Since then, KHP has requested two economic subsidies; no lease payments for the land and the YWCA building, and no charge for parking (Pasadena to dedicate 136 parking spaces out of its existing garages, for free.) If the hotel is more profitable than anticipated, then the city may share in some of the profits.

Mayor Tornek came out in strong support of providing a Public Subsidy, and Councilmember John Kennedy indicated support (he later withdrew it), but the tide turned when Councilmember Margaret McAustin stated that the finances and design of this project have always been very marginal…“it’s like buying a house in an ‘up’ market in which the buyer gradually and continually compromises to accept a house they really don’t like at all but can just barely afford. There are too many details about the KHP project that were previously just barely acceptable and they add up finally to something I can’t support.”

The nail-biting suspense came to an end when Councilmember Victor Gordo’s substitute motion passed 5-2 to not approve a subsidy, but to take a “pause” in order to explore other options (including a Municipal use), and perhaps understand the KHP deal (including local hire issues) better to see if there’s a way to rescue it without a subsidy. Gordo joined with Councilmembers Tyron Hampton, John Kennedy, Andy Wilson, and Margaret McAustin voted “Yes” to pause, while Mayor Terry Tornek and Vice Mayor Gene Masuda voted “No” to approve the subsidy as-is. The motion passed and the “Kimpton” hotel’s progress seemed to face a significant roadblock.

Councilmember Andy Wilson commented on social media by saying:

I think the subsidy was the straw that broke the camel’s back. Not sure Kimpton will stay in the conversation; if not, then perhaps a signal to how committed they really were. Most importantly thanks to so many credible speakers who spoke tonight and contacted me in the last few months…your opinions and thoughtful perspective carry a lot of weight.

Bryan Witt, former District 7 candidate, also commented:

This was a win for the people and our priceless Civic Center.

The KHP deal and the public subsidy could be resurrected in the future, but for tonight it seems like the public outcry that has been increasing over the last 3 years, may have finally proved effective.