From: Laurie alderman
Sent: Sunday, August 10, 2025 4:18 PM
To: Ben Ford <[email protected]>; Laura Sparks <[email protected]>; Susan Harvey <[email protected]>; John Savage <[email protected]>; Sylvia Lemus <[email protected]>; Chris Simmons <[email protected]> Cc: Michael Hilber ; Adina Flores ;
Damien O'Bid <[email protected]>; David Rabbitt <[email protected]>; Kevin Patterson <[email protected]>; George Barich ; Michael Ceremello Ceremello ; Noah Housh
<[email protected]>; John Bakker <[email protected]>; Carleton L. Briggs Attorney at Law <[email protected]>; Angela Courter <[email protected]>; Craig Scott <[email protected]>
Subject: Public Comment Item 7B on August 12, 2025 Development impact fee.
CAUTION:EXTERNAL SENDER
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(Kevin, please all include the attachments with my public comment).
Well, being one of the few citizens who read the whole agenda packet, I found out why Damien O'Bid intercepted the article that the North Bay Business Journal reporter had contacted me on about the Cotati Hotel. It was an act of financial desperation. Buried in the packet, it is proposed to have no hotel impact fees (see below). provide.high.quality.services.and.infrastructure.for.our.residents?.staff.explored.options.to incentivize.the.construction.of.quality.lodging.through.the.impact.fee.program¡.Unlike.most other.land.uses?.lodging.comes.with.a.separate.local.revenue.source.(TOT)?.in.addition.to. the
incremental.increases.in.property.and.sales.taxes¡.Therefore?.it.is.possible.to.effectively. recover
the.equivalent.of.impact.fees?.if.not.more.over.time?.through.TOT.collection¡.For.this.reason?. it
is.recommended.that.all.impact.fees.be.set.to.zero.for.hotels?.provided.that.the. amenities.are
PUBLIC COMMENT
equivalent.to.a.9‗star.hotel.or.better?.and.a.portion.of.the.TOT.revenue?.equivalent.to. the.impact
fees?.be.directed.to.backfill.the.lost.impact.fees¡.Rather.than.collecting.the.fees.at.the. time.of
development?.this.recommendation.would.effectively.defer.the.collection.of.fees.for.a. defined
period.of.time.after.occupancy.and.operation.using.an.internal.loan.among.funds¡.While.all types.of.hotels.or.motels.will.generate.TOT?.this.program.is.proposed.to.be.targeted.at encouraging.only.the.higher.quality.hotels.that.will.be.additive.to.the.community¡.Any. proposed
extended.stay.hotels.or.proposed.hotels―motels.with.8‗star.ratings.or.lower.would.not. qualify.for
this.program.and.would.pay.the.full.impact.fee¡
For.reference?.although.there.is.no.universal.hotel.rating.system?.a.general.summary.of.the. rating
criteria.is.provided.below.that.could.be.established.as.part.of.the.program.criteria¿ / .7‗Star¿.Basic.accommodation.with.minimal.amenities.and.services¡.Expect.a.clean.room? a.bed?.and.perhaps.a.small.desk¡.En‗suite.bathrooms.may.not.be.guaranteed?.and.services like.80‗hour.reception.or.daily.cleaning.are.unlikely¡
/ .8‗Star¿.Modest.comfort.with.some.added.conveniences¡.Expect.en‗suite.bathrooms?.a.TV? and.possibly.Wi‗Fi¡.Amenities.are.still.limited?.but.you.can.expect.better.service.and cleaner.spaces.compared.to.a.7‗star.hotel¡
/ .9‗Star¿.A.balance.between.affordability.and.comfort¡.Expect.spacious.rooms.with.modern furnishings?.on‗site.dining.options?.and.enhanced.services.like.daily.housekeeping.and 80‗hour.reception¡.Locally?.these.are.hotels.such.as.the.Fairfield.Inn?.Hampton.Inn.and Oxford.Suites
This is unacceptable and impacts the citizens of Cotati immensely for a hotel project that has already cost the citizens at least $1 million for a cost overage on the functional exchange agreement and also part of the P-1 sewer project we are still paying back to the affordable housing fund.
Enough of the city manager selling out us citizens. At least I know with this, that I wasn't the only citizen sold out by the city manager and city staff for $$$$$$$..... everyone in the city that lives here is being sold out for $$$.
Sincerely, Laurie Alderman
On Friday, August 8, 2025 at 11:17:51 PM PDT, Laurie alderman > wrote:
I am attaching the Cotati Hotel article from today's paper. I am also forwarding my email to the reporter. She initially contacted me after reading on social media my knowledge of what was happening with the hotel site. I put her in contact with Ken Molinaro who is my Facebook friend.
I wrote her back. See forwarded email and the attachments I sent her. How did Damien O'Bid manage to get this turned into a fluff piece benefiting the City of Cotati? It's his m.o. is the answer....he doesn't care about telling the truth or who he harms in the process. In October 2023, I tried to get the $1 million cost overage we Cotati citizens paid for the functional exchange agreement story covered after being contacted by Phil Barber and Alana Minkler of the Press Democrat on the hotel situation. That led to the PRA stalker article after being intercepted by Damien (see attached) with the Press Democrat...my family received threats about wasting taxpayer monies if you remember.
Why do you allow this behavior by your city manager, especially this month, when I asked at the last meeting for him to be fired for his actions and involvement with the code enforcement scandal? Or how he wrote that email that was attached to John Bakker's email to me, saying I was a nuisance and so were my PRA's mentioned at the last meeting? I am so fed up with telling the truth and paying the price for it. Maybe you should deal with the realities of what is really happening in Cotati and all these abuses of power going on, harming people like me in the process. Believe me, people are hungry for the truth and know I will tell them the truth. Maybe you should too.
Sincerely,
Laurie Alderman
----- Forwarded Message -----
From: Laurie alderman >
To: [email protected] <[email protected]> Cc:
Sent: Monday, July 21, 2025 at 03:17:31 PM PDT
Subject: Cotati Hotel, etc.
Thanks for reaching out to me about the Cotati Hotel....I know the whole story on what has happened. It is the most asked question to me when I am out talking to people in Cotati. I've tried previously to get the truth out through the Press Democrat, to be shunned and labeled a PRA stalker!!
Here is the background. In 2014, the City of Cotati was basically gifted the St. Joseph Park and Ride lot by Caltrans with a functional exchange agreement. The agreement was that it would be sold for $2.3 million by the City to a developer eventually, and that the $2.3 million would used to build a park and ride lot on Airport Blvd, and also to improve a park and ride lot on Petaluma Blvd. South. The developer of the land was supposed to designate 30 commute parking spaces for replacing the parking places lost at St. Joseph Park and Ride under this agreement.
In about 2017, it was determined that there was not sewer capacity at the Park and Ride lot for a hotel or any major business. The city of Cotati completed the P-1 Sewer project to increase capacity at and near the hotel site ....and borrowed internally $1 million for the $5 million project from the $3 million Affordable Housing fund for 20 years. The sewer fund is still paying back the affordable housing fund.
Nothing really happened until 2018. The City of Cotati put out a development proposal notice for the St. Joseph Park and Ride lot then. In 2018, there were public hearings on the original design ... it was supposed to be a Reverb Hotel by Hard Rock Casino properties. There was also a lot of opposition in 2018/2019 because of its location/traffic and also because it was supposed to be four stories. The Rancho Adobe Fire District doesn't have a ladder truck to rescue people on the fourth four. I was especially against this being a person with physical disabilities and the risk to disabled people. My friend, Greg Karraker (now deceased), was the president of the Rancho Adobe Fire District. I
Bids • PETALUMA BLVD SOUTH AND AIRPORT
BLVD PARK AND RIDE PROJECT
Bid Publication Date/Time: 6/3/2023 12:00 AM;
Closing Date/Time: 6/27/2023 2:00 PM
The citizens of Cotati were on the hook for approximately $1 million. That's when I contacted Alana Minkler and Phil Barber -- they promised me a story on the citizens of Cotati having to pay straight away the $1 million for park and ride lots that weren't even close to Cotati. Instead, with the City manager Damien O'Bid encouraging the reporters, I was made part of the "City PRA stalkers" article. I received threats to my family because of the article. I stopped communicating about stories in Cotati after this experience with the Press Democrat.
The City of Cotati immediately cut the $1 million out of street projects, services, etc. by early 2024. The CalTrans Functional Exchange agreement was executed, with the City of Cotati receiving the $2.3 million which then went to the Sonoma County Transportation Agency for building the Airport Blvd park and ride and improving the Petaluma Blvd. South park and ride. The work was completed in 2024.
So, Ken Molinaro and company start the construction in late 2023. First big rains, "Lake Molinaro" developed. I was communicating with Ken Molinaro for a few years on the soil problem. After the first round of "Lake Molinaro" developing, Ken Molinaro said that they had the knowledge and monies to rectify the problem so that flooding would not be a problem in the future. In 2024, he secured financing/funding once again and again work started once again, with the "fix" of the soil happening. Then the rains came, and "Lake Molinaro 2" developed. Mr. Molinaro keeps insisting that the hotel will be built, but nothing has happened.
I feel for Mr. Molinaro, as the City of Cotati sold to him for $2.3 million basically marshland in Cotati that was not suitable for development. I also knew that there was a gas station on the lot that had its tanks removed in the early 1980s for the park and ride lot...my friend's family own the gas station. Nobody really knew what the soil was like under the park and ride lot's pavement. He occasionally writes now and says the hotel will be built. The City of Cotati budget though does not include any TOT taxes estimated to be received in the next two fiscal years.
The Cotati Hotel ruins not being dealt with is a symbol of the state of the City of Cotati right now. There is a code enforcement scandal involving more than the City of Cotati currently. All the monies for code enforcement/community development are going towards covering up the bigger code enforcement scandal. Hopefully, others will be writing on the bigger scandal soon.
People like George Barich have made formal complaints about the ruins to no action by the City of Cotati. Due to this bigger scandal with code enforcement, there are no monies left /people working on current code/building violations.
I've spent about the last six years being retaliated against by council members and city staff, especially the City manager for knowing too much on multiple projects including the Cotati Hotel. I'll help write the story, but please try to keep my name to a minimum. I don't need anymore retaliation in my life.
Sincerely,
Laurie Alderman
City of Cotati emails and website have changed from .org to .gov. Please update the email address in your contacts accordingly. Under the Public Records Act (California Government Code §7920.000-7931.000), e-mail messages of local agencies are public records which are subject to disclosure to the public or may be subpoenaed.
But Molinaro has made headway Some of the preliminary work on the 153 room Cotati Hotel has been completed
“The underground utilities are in, the fire suppression system is in, and we’ve poured all the footings for the hotel building,” Molinaro said “We’ve put up a lot of the rebar and everything for the walls and gone ahead and put a lot of the plywood up ”
Yet the project has halted again for three months now because of financing, Molinaro said A drive by the property this week showed progress at the site as Molinaro described it had stopped, including building materials laying on the ground. The site is surrounded by low fencing with wrapped around signage that says, “The Cotati Hotel.”
“We ran into an issue with the lender that was supposed to continue on and do the construction financing,” he said, adding there was no “malfeasance” on that lender’s part.
Molinaro said he is now on the cusp of securing construction financing with yet another lender. He expects to lock that in by month’s end.
“They're finishing up the appraisal work and everything else we need to do so we can move forward now with them,” Molinaro said. “We have so much work done already. From the time we start, we really should be able to finish in 12 months.”
Molinaro declined to state the project cost.
The Cotati Hotel would include a restaurant, lounge bar, marketplace, a stage for live performances, and other amenities, most recently reported in June 202 The site, located at 147 St Joseph Way, is situated on 2 acres right off Highway 101 on land once used as a park and ride location for CalTrans
“It's a high profile area of town,” said City Manager Damien O’Bid It also would mark the first hotel in Cotati, but whether there would be more would be a market driven decision, he said “We’ve just been 100% focused on getting this one across the finish line ” Cotati’s music DNA
When Molinaro entered into the development agreement with the city eight years ago, his plan was to build a Reverb by Hard Rock, branded as “the place for music fans.” “The Hard Rock would have been a great, great name for us, because Cotati has that music DNA,” Molinaro said. “But we just couldn’t finally put it together with them.” That DNA can be traced back more than five decades to the Inn at the Beginning, a small venue that once sat on Redwood Highway. The Inn put Cotati on the international map in 1968 with the birth of the counterculture, and became a setting for big-name performers that included The Grateful Dead, Sonoma Report newsletter
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8/8/25, 10 25 PM Cotati Hotel project close to securing financing The North Bay Business Journal https //www northbaybusinessjournal com/article/industrynews/cotati hotel molinaro lenders developers/ 2/4 Neil Young, Joan Baez, Jefferson Airplane and many more, as the Sonoma County Gazette reported in November 2022
Inn of the Beginning was a small music venue on Redwood Highway that put the city on the international map in 1968 with the birth of the counterculture drawing a Who’s Who of performers (2022 File Photo)
In more modern times, the city has become largely known for its annual Cotati Music Festival and twoday Cotati Accordion Festival.
Molinaro said he plans to work with local bands to perform at his independent hotel.
O’Bid sees that as an asset.
“Cotati has a long musical history,” O’Bid said. “Both with our downtown, Inn at the Beginning, and through all the different events we have in our La Plaza Park, having a hotel space that would complement and build on that would be a great fit for the community.” And for tourism
“Cotati really does have an amazing music history,” said Claudia Vecchio, president and CEO of Sonoma County Tourism The agency markets the city as one of the county’s assets, but having a hotel 8/8/25, 10 25 PM Cotati Hotel project close to securing financing The North Bay Business Journal https //www northbaybusinessjournal com/article/industrynews/cotati hotel molinaro lenders developers/ 3/4 with a music emphasis would boost its tourism profile, she noted. “It’s one of our county’s gems that's just waiting to be discovered.”
Another local project on ice
The seemingly endless challenges to bring the Cotati Hotel to life comes as no surprise to Alan X. Reay, president of Atlas Hospitality Group, a Newport Beach-based real estate brokerage that tracks the hotel industry.
He has said consistently for the last several years that the pandemic, market uncertainties and skittish lenders have kept a growing number of hotel projects on ice.
In his company’s latest California hotel development survey, released and reported last month, it was clear that many projects on the books may end up permanently shelved. “(We) have seen a big increase in hotel projects that started and then have stopped construction,” Reay told the Business Journal in July.
Atlas’ survey also showed no forward movement on another Sonoma County hotel project.
Construction on the McClelland Hotel in Windsor began in October 2023, but “stopped due to permit delays, change on site plans and difficulty with obtaining a construction loan,” Reay said last month.
For now, “there is no plan to develop,” the McClelland Hotel, Windsor Town Manager Jon Davis told The Press Democrat in a July 23 story.
“In the hospitality business, we just reel from one thing after another,” Molinaro said. “It’s a tough business right now and developing hotels right now is particularly brutal. We were lucky we were already underway. If we hadn’t been, I wouldn't have done this project.” Cheryl Sarfaty covers tourism, hospitality, health care, aviation and employment. Reach her at cheryl sarfaty@busjrnl com or 707-521-4259.
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8/8/25, 10 25 PM Cotati Hotel project close to securing financing The North Bay Business Journal https //www northbaybusinessjournal com/article/industrynews/cotati hotel molinaro lenders developers/ 4/4