City property sale to assist construction of Marriott hotel

LANCASTER — The City will sell up to 2,000 square-feet of City-owned property in the heart of downtown Lancaster to Midas Lancaster LP to facilitate the construction of a 105-room Marriott Residence Inn.

The parcel on Kildare Street west of Gadsden Avenue is immediately west of the project site for the future hotel. Midas Lancaster needs the property to obtain the necessary fire clearance for the project, according to a staff report by Assistant to the City Manager Chenin Dow.

Midas Lancaster will pay the full appraised value of the property, which is $13.23 per square foot. The exact square footage and corresponding price will be finalized based on final conditions from the Los Angeles County Fire Department.

The City Council voted 4-0 Tuesday night — with Councilwoman Angela Underwood-Jacobs absent — to authorize City Manager Jason Caudle to finalize and execute the purchase and sale agreement.

Midas Lancaster is a

partnership between InSite Development, also known as BLVD Renual, and Midas Hospitality, a hotel development, management and investment firm.

Midas Lancaster expects to break ground on the project by the end of this year. The projected opening date in the first quarter of 2021.

In a related action as part of the consent calendar, the City Council approved the assignment of a Operating Covenant Agreement with BLVD Renual, approved in May 2018, and a Reimbursement Agreement with BLVD Renual LP, first approved in May 2018 and amended in August of this year, to Midas Lancaster LP.

The City Council’s action will allow Midas Lancaster LP to continue the development process for the hotel.