Airport Seeks Approval for Five-Story Hotel

THE NATOMAS BUZZ | @natomasbuzz

The Sacramento County Board of Supervisors will decide Tuesday whether to approve an agreement that will allow a five-story hotel to be built at the Sacramento International Airport.

The Sacramento County Department of Airports will go before the board on Jan. 27 to request approval of an agreement with a developer to build a long-sought onsite hotel at the airport. The Sacramento County Department of Airports is responsible for planning, developing, operating and maintaining the county’s four airports: Sacramento International Airport, Executive Airport, Mather Airport and Franklin Field.

Sonnenblick Development LLC has proposed building five-story, 135-room Hyatt Place hotel with an indoor pool and spa, fitness room, dining area and 3,500 square feet of meeting space.

The Los Angeles-based developer plans to lease a 1.4-acre site adjacent to the parking garage for construction of the hotel, as well as 164 spaces on the ground level of the garage. The hotel would be accessible to passengers of both terminals.

Construction could begin as early as June 2015, when federal building restrictions on the Natomas Basin are expected to be lifted. In that scenario, the hotel would open in 2017 or 2018.

Sonnenblick has agreed to invest at least $23 million to build the facility. The Department of Airports will receive a one-time payment of $2.46 million for the use of the parking garage spaces. Rent for the hotel site will be fixed for the first four years for an amount totaling $900,000. In subsequent years, rent will be paid as a percentage of gross revenue.

An in-terminal hotel was in the works for the new Terminal B but was removed from plans due to the economic downturn. Airport staff performed a site analysis and in 2011 issued a Request for Proposals for hotel development. Sonnenblick responded to the RFP with a proposal to develop two hotels. If the Hyatt Place is successful, a second hotel is a possibility.

The onsite Host Hotel was demolished in 2008 to make room for Terminal B construction. Under the agreement going to county supervisors this week, Sonnenblick LLC would pay for construction and assume the financial risk associated with owning and operating the hotel.

The item is number 51 on the agenda and is scheduled for 10:45 a.m. Tuesday. Click here for more information.