Agenda — Marina City Council, July 1, 2026

AGENDA

Wednesday, July 1, 2026 6:00 P.M. OPEN SESSION

SPECIAL MEETING

CITY COUNCIL

THIS MEETING WILL BE HELD IN PERSON AND VIRTUALLY (HYBRID).

Council Chambers
211 Hillcrest Avenue
Marina, California

AND

Zoom Meeting URL: https://zoom.us/j/730251556
Zoom Meeting Telephone Only Participation: 1-669-900-9128 - Webinar ID: 730 251 556

PARTICIPATION
The agenda for this Special Meeting includes a n in -person site visit. During a site visi t, the City Council may only discuss the item(s) on this Special Meeting site visit agenda. The agenda does not allow any formal votes or motions on any proposed project or other matters. The site visit is an informational meeting where the Council may ask questions from or hear statements from members of the public attending the visit. No comments made during the site visit by the Council are binding or required to be carried through to any public meeting/hearing where actions might be taken.

AGENDA MATERIALS
Agenda materials, staff reports and background information related to regular agenda items are available on the City of Marina’s website www.cityofmarina.org. Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet will be made available on the City of Marina website www.cityofmarina.org subject to City staff’s ability to post the documents before the meeting.

VISION STATEMENT
Marina will grow and mature from a small town bedroom community to a small city which is diversified, vibrant and through positive relationships with regional agencies, self -sufficient. The City will develop in a way that insulates it from the negative impacts of urban sprawl to become a desirable residential and business community in a natural setting. (Resolution No. 2006-112 - May 2, 2006)

MISSION STATEMENT
The City Council will provide the leadership in protecting Marina’s natural sett ing while developing the City in a way that provides a balance of housing, jobs and business opportunities that will result in a community characterized by a desirable quality of life, including recreation and cultural opportunities, a safe environment and an economic viability that supports a high level of municipal services and infrastructure. (Resolution No. 2006-112 - May 2, 2006)

Agenda for Special City Council Meeting of Wednesday, July 1, 2026 Page 2

LAND ACKNOWLEDGEMENT
The City recognizes that it was founded and is built upon the traditional homelands and villages fi rst inhabited by the Indigenous Peoples of this region - the Esselen and their ancestors and allies - and honors these members of the community, both past and present.

1. CALL TO ORDER

2. ROLL CALL & ESTABLISHMENT OF QUORUM: (City Council, Airport Commissioners, Marina Abrams B Non -Profit Corporation, Preston Park Sustainable Communities Nonprofit Corporation, Successor Agency of the Former Redevelopment Agency Members and Marina Groundwater Sustainability Agency) Jennifer McAdams, Brian McCarthy, Kathy Biala, Mayor Pro -Tem/Vice Chair Liesbeth Visscher, Mayor/Chair Bruce C. Delgado

3. MOMENT OF SILENCE & PLEDGE OF ALLEGIANCE (Please stand)

4. OTHER ACTION:
a. Adopting Resolution No. 2026 -, authorizing the City Manager to execute Amendment No. 3 to Agreement No. A-15987 with the County of Monterey for Hitchcock Road Animal Services, extending the agreement through June 30, 2027, subject to review and approval by the City Attorney. b. Adopting Resolution No. 2026 -, receive presentation from the Monterey Bay Hotels LP regarding new proposed upper -upscale luxury resort hotel and provide direction; and provide direction to staff regarding amending the existing Hotel Development Agreement and bring back to City Council; and provide direction to staff regarding an Economic Development Subsidy Report and a proposed transient occupancy tax (TOT) revenue sharing agreement and bring back to City Council.

5. ADJOURNMENT:

CERTIFICATION

I, Anita Sharp, Deputy City Clerk, of the City of Marina, do hereby certify that a copy of the foregoing agenda was posted at City Hall and Council Chambers Bu lletin Board at 211 Hillcrest Avenue, Monterey County Library Marina Branch at 190 Seaside Circle, City Bulletin Board at the corner of Reservation Road and Del Monte Boulevard on or before 6:00 p.m., Friday, June 26, 2026.

___________________________________

ANITA SHARP, DEPUTY CITY CLERK
City Council, Airport Commission and Redevelopment Agency meetings are recorded on tape and available for public review and listening at the Office of the City Clerk and kept for a period of 90 days after the formal approval of MINUTES.

City Council meetings may be viewed live on the meeting night and at 12:30 p.m. and 3:00 p.m. on Cable Channel 25 on the Sunday following the Regular City Council meeting date. In addition, Council meetings can be viewed at 6:30 p.m. every Monday, Tuesday and Wednesday. For more information about viewing the Council Meetings on Channel 25, you may contact Access Monterey Peninsula directly at 831-333-1267.

Agenda for Special City Council Meeting of Wednesday, July 1, 2026 Page 3

Agenda items and staff reports are public record and are available for public review on the City's website (www.ciytofmarina.org), at the Monterey County Marina Library Branch at 190 Seaside Circle and at the Office of the City Clerk at 211 Hillcrest Avenue, Marina between the hours of 10:00 a.m. 5:00 p.m., on the Monday preceding the meeting.

Supplemental materials received after the close of the final agenda and through noon on the day of the scheduled meeting will be available for public review at the City Clerk’s Office during regular offi ce hours and in a ‘Supplemental Binder’ at the meeting.

ALL MEETINGS ARE OPEN TO THE PUBLIC. THE CITY OF MARINA DOES NOT DISCRIMINATE AGAINST PERSONS WITH DISABILITIES. Council Chambers are wheelchair accessible. Meetings are broadcast on cable channel 25 and recordings of meetings can be provided upon request. To request assistive listening devices, sign language interpreters, readers, large print agendas or other accommodations, please call (831) 884 -1278 or e -mail:
[email protected]. Requests must be made at least 48 hours in advance of the meeting.

June 25, 2026 Item No. 4(a)

Honorable Mayor and Members City Council Meeting
of the Marina City Council of July 1, 2026

CITY COUNCIL CONSIDER ADOPTING RESOLUTION NO. 2026 -,
APPROVAL OF AMENDMENT NO. 3 TO THE AGREEMENT WITH THE

COUNTY OF MONTEREY FOR HITCHCOCK ROAD ANIMAL
SERVICES; AND AUTHORIZING THE CITY MANAGER TO EXECUTE

THE AMENDED AGREEMENT SUBJECT TO FINAL REVIEW AND
APPROVAL BY THE CITY ATTORNEY.

RECOMMENDATION: It is requested that the Marina City Council:

1. Adopt a Resolution No. 2026-, authorizing the City Manager to execute Amendment No. 3 to Agreement No. A -15987 with the County of Monterey for Hitchcock Road Animal Services, extending the agreement through June 30, 2027, subject to review and approval by the City Attorney; and

2. Authorizing the Finance Director to make any necessary accounting and budgetary adjustments.

DISCUSSION
The City contracts with Hitchcock Road Animal Services (HRAS), operated by the County of Monterey, to provide animal sheltering and related services supporting the Marina Police Department's animal control responsibilities. Amendment No. 3 extends the exis ting agreement for one additional year, through June 30, 2027. The amendment does not modify the scope of services, fee schedule, or other contractual provisions; all remaining terms continue unchanged.

Approval of the amendment will ensure uninterrupted regional animal shelter services, including animal impoundment, sheltering, reunification, adoption support, bite investigation support, quarantine coordination, and dangerous animal case support while participating agencies continue evaluating the future Joint Powers Agency structure.

FISCAL IMPACT
There is no additional fiscal impact associated with Amendment No. 3. The amendment continues the existing agreement under the current fee structure. Funding is included within the adopted Fiscal Year 2026-27 Police Department budget, and no additional appropriation is required.

ENVIRONMENTAL REVIEW
Pursuant to CEQA Guidelines Section 15378, approval of this amendment is an administrative activity that does not constitute a project under CEQA.

Respectfully Submitted

Randy Hopkins
Chief of Police
City of Marina

REVIEWED/CONCUR:

Layne Long
City Manager
City of Marina

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA
AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 TO AGREEMENT NO. A-15987 WITH THE COUNTY OF MONTEREY FOR

HITCHCOCK ROAD ANIMAL SERVICES

WHEREAS, the City contracts with the County of Monterey for Hitchcock Road Animal Services;

WHEREAS, Amendment No. 3 extends the agreement through June 30, 2027;

WHEREAS, the amendment does not change the fee schedule, scope of services, or other material terms;

WHEREAS, funding is included in the adopted FY 2026-27 budget;

WHEREAS, continuation of the agreement serves the public health, safety, and welfare of the City.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Marina that:

1. Authorize the City Manager to execute Amendment No. 3, subject to review and approval by the City Attorney.

2. Authorize the Finance Director to make any necessary accounting and budgetary adjustments.

3. Find that the amendment provides continuity of animal shelter services and does not create any additional fiscal obligation beyond the adopted budget.

PASSED AND ADOPTED by the City Council of the City of Marina at a regular meeting duly held on this 1st day of July 2026 by the following vote:

AYES, COUNCIL MEMBERS:

NOES, COUNCIL MEMBERS:

ABSENT, COUNCIL MEMBERS:

ABSTAIN, COUNCIL MEMBERS:

_________________________
Bruce C. Delgado, Mayor

ATTEST:

___________________________
Anita Sharp, Deputy City Clerk

EXHIBIT A

CITY OF MARINA
Amendment No. 3
Term: 07/01/22 – 06/30/27
AMENDMENT NO. 3

TO AGREEMENT BY AND BETWEEN

COUNTY OF MONTEREY AND

THE CITY OF MARINA
THIS AMENDMENT NO. 3 to AGREEMENT No. A-15987 is made by and between the County of Monterey , a political subdivision of the State of California and the Lead Agency of Hitchcock Road Animal Services (HRAS) , (hereinafter referred to as " COUNTY "), and the City of Marina (hereinafter referred to as " CITY") with respect to the following .

WHEREAS, the COUNTY established the Health Department Animal Services Center, located at 160 Hitchcock Road, Salinas, to shelter animals within the unincorporated areas of the Monterey County; and
WHEREAS, on September 7, 2022 , COUNTY and CITY entered into AGREEMENT NO. A- 15987 for the term July 1, 2022 through June 30, 2024, for the use of the Animal Services Center and the provision of other animal services ; and WHEREAS, on January 1, 2023, Hitchcock Road Animal Services was established with the objective of merging the City of Salinas and the County of Monterey entities, for the betterment of all animals in our communities’ requiring services, as well as the residents and taxpayers of both entities, with the ability to utilize shared equipment, resources, and personnel ; and
WHEREAS, COUNTY serves as the Lead Agency for Hitchcock Road Animal Services, encompassing the contracting parties: County of Monterey and City of Salinas; and WHEREAS, CITY desired to contract with COUNTY for the provision of services at Hitchcock Road Animal Services ; and
WHEREAS, COUNTY and CITY entered into AMENDMENT NO. 1 to replace EXHIBIT A, and extend the AGREEMENT Term by one additional year for a revised AGREEMENT Term of July 1, 2022 – June 30, 202 5, as Agency’s entities work together to find an Agreement to plan for fiscal sustainability and accountability via the newly formed Hitchcock Road Animal Services Joint Powers Agency ; and
WHEREAS, the AGREEMENT expired by its terms on June 30, 2025; and WHEREAS, the COUNTY and CONTRACTOR mutually desired to reinstate the AGREEMENT with effect retroactive to July 1, 2025, and to amend the AGREEMENT as provided below; and WHEREAS, COUNTY and CITY entered into AMENDMENT NO. 2 to AGREEMENT No.

A-15987 to replace EXHIBIT A to apply an eight percent (8%) fee increase and incorporate a provision allowing for the acceptance of emergency animals at Blue Pearl Specialty & Emergency Pet Hospital and to ensure CITY IS invoiced accordingly, and extend the AGREEMENT Term by one additional year for a revised AGREEMENT Term of July 1, 2022 – June 30, 2026, as Agency’s entities work together to find an Agreement to plan for fiscal sustainability and accountability via the newly formed Hitchcock Road Animal Service s Docusign Envelope ID: DC80C46D-5FF8-8D5B-835D-73F5FA3ABDD5

EXHIBIT B

CITY OF MARINA
Amendment No. 3
Term: 07/01/22 – 06/30/27
Joint Powers Agency ; and
WHEREAS, COUNTY and CITY wish to amend AGREEMENT No. A-15987 to extend the AGREEMENT Term by one additional year for a revised AGREEMENT Term of July 1, 2022 – June 30, 2027, as Agency’s entities work together to find an Agreement to plan for fiscal susta inability and accountability via the newly formed Hitchcock Road Animal Services Joint Powers Agency.

NOW THEREFORE, COUNTY and CITY hereby agree to amend the AGREEMENT as follows:

1. Section 5.0, “TERM AND TERMINATION”, Section 5.A, shall be amended by removing “This Agreement shall be effective July 1, 2022 and shall terminate on June 30, 2026, unless sooner terminated pursuant to the terms of this Agreement, ” and replacing it with “This Agreement shall be effective July 1, 2022 and shall terminate on June 30, 2027, unless sooner terminated pursuant to the terms of this Agreement. ”

2. Except as provided herein, all remaining terms, conditions, and provisions of the AGREEMENT are unchanged and unaffected by this AMENDMENT NO . 3 and shall continue in full forces and effect as set forth in the AGREEMENT .

3. The recitals to this Amendment No. 3 are hereby incorporated by this reference.

4. A copy of the Amendment No. 3 shall be attached to the original AGREEMENT executed by COUNTY on September 7, 2024.

5. This Amendment No. 3 is effective July 1, 202 6.
**********SIGNATURE PAGE TO FOLLOW**********
Docusign Envelope ID: DC80C46D-5FF8-8D5B-835D-73F5FA3ABDD5

EXHIBIT B

CITY OF MARINA
Amendment No. 3
Term: 07/01/22 – 06/30/27
IN WITNESS WHEREOF, COUNTY and CITY have executed this AMENDMENT NO . 3 as of the day and year written below.

COUNTY OF MONTEREY THE CITY OF MARINA
By:

County Purchasing Agent THE CITY OF MARINA
Date: Business Name*
By: By:

Department Head (if applicable) (Signature of Chair, President, or Vice-President) * Date:

By: Name and Title
Board of Supervisors (if applicable)
Date: Date:

Approved as to Form1
By: By:

County Counsel
Date: (Signature of Secretary, Asst. Secretary, CFO, Treasurer or Assistant Treasurer)*
Approved as to Fiscal Provisions2
Name and Title
By:

Auditor/Controller Date:

Date:

Approved as to Liability Provisions3
By:

Risk Management
Date:
*INSTRUCTIONS: If CITY is a corporation, including limited liability and non-profit corporations, the full legal name of the corporation shall be set forth above together with the signatures of two specified officers. If CITY is a partnership, the name of the partnership shall be set forth above together with the signature of a partner who has authority to execute this AGREEMENT on behalf of the partnership. If CITY is contracting in an individual capacity, the individual shall set forth the name of the business, if any, and shall personally sign the AGREEMENT. 1Approval by County Counsel is required 2Approval by Auditor-Controller is required Docusign Envelope ID: DC80C46D-5FF8-8D5B-835D-73F5FA3ABDD5 Layne Long
Alma Gonzalez

EXHIBIT B
June 25, 2026 Item No. 4(b)

Honorable Mayor and Members City Council Meeting
of the Marina City Council of July 1, 2026

CITY COUNCIL RECEIVE A PRESENTATION FROM MONTEREY B AY

HOTELS LP (FORMER DADWAL MANAGEMENT GROUP ) REGARDING
NEW PROPOSED UPSCALE RESORT HOTEL ON OPPORTUNITY SITE 1A IN

THE DUNES DEVELOPMENT REPLACING THE APPROVED MARRIOTT AC,

MARRIOTT ELEMENT, AND HYATT HOUSE HOTE LS ON OPPORTUNITY SITE 1A ; PROVIDE DIRECTION TO STA FF REGARDING AMENDING EXISTING HOTEL DEVELOPMENT AGREEMENT ; PROVIDE DIRECTION

TO STAFF REGARDING A PROPOSED ECONOMIC DEVELOPMENT

SUBSIDY REPORT AND A TRANSIENT OCCUPANCY TA X REVENUE

SHARING AGREEMENT TO ASSIST WITH THE CONSTRUCTION COSTS

AND SITE DEVELOPMENT OF AN UPPER-UPSCALE LUXURY HOTEL

RECOMMENDATION

1. Receive presentation from the Monterey Bay Hotels LP and provide direction.

2. Provide direction to staff regarding amending the existing Hotel Development Agreement and bring back to City Council.

3. Provide direction to staff regarding an Economic Development Subsidy Report and a proposed transient occupancy tax (TOT) revenue sharing agreement and bring back to City Council.

BACKGROUND
On December 22, 2020, Marina Community Partners (Dunes) gave the City notice that it would not be able to enter into an agreement with a hotel developer as called for in the Operating Agreement and acknowledged the City’s option to acquire the Hotel Site . The Operating Agreement granted the City an option to acquire the approximately 9.5-acre Hotel Site located on Opportunity Site 1A, parcel A and parcel B (EXHIBIT A) with the backbone infrastructure and utility improvements to the Hotel Site installed if Marina Community Partners was unable to enter into an agreement with the hotel developer by December 2020 . The Operating Agreement also allowed for the City to assign its Option. Pursuant to the Operating Agreement, the City’s option grants the City the right to acquire the Hotel Site for a purchase price of $3,600,000. The City had one year from the date of the MCP's notice to exercise the option.

On August 17,2021, the City Council heard presentations from four hotel developers interested in the Hotel Site . Based on direction from the City Council, staff negotiated the t erms of a Hotel Development Agreement with the Dadwal Management Group . The Development Agreement required the developer to develop the Hotel Site in two phases. The first phase would consist of a dual hotel comprised of a ninety-room Marriott Element hotel and a 110-room Marriott AC hotel.

Phase Two would consist of an additional one hundred-room hotel at the level of a Hyatt House.

Pursuant to the terms of the Hotel Development Agreement, the City gave MCP the required Option Exercise Notice and subsequently assigned its right to acquire the Hotel Site to the Dadwal Management Group subject to certain conditions being met . These conditions were met and the Dadwal Management Group acquired the Hotel Site for $3.6 million dollars (EXHIBIT B).

Due to PG&E utility infrastructure delays, and then consequently MCP delays for installing roads and other infrastructure, the Dadwal Management Group was unable to move forward with developing the property according to the terms of the Schedule of Performance included in the Hotel Development Agreement. The Dadwal Management Group at the same time was trying to purchase a 2.73-acre parcel adjacent to Site A which would give them more flexibility and the ability to make parking and site improvements in developing Site A. This process took over a year, and money is now in escrow for the Dadwal Management Group to acquire the adjacent property.

Section 9.13 of the Development Agreement provides: “Notwithstanding anything set forth in this Agreement, the City Manager may authorize extensions of any of the Developer’s deadlines in the Schedule of Performance or set forth herein in his or her sole discreti on at the request of the Developer." Initially the City Manager was working with the Developer to establish extensions to the Schedule of Performance now that the road and utility infrastructure w ere completed and the development could start. During these discussions, the Developer conducted a new Market Demand & Economic Feasibility Study by CBRE Hotels Advisory Group that recommended that an upper-upscale luxury hotel would be a superior hotel in Marina . Based on the results of the Study, the Developer requested amending the Development Agreement to switch the approved hotel brands in the Development Agreement from the Marriot AC and Element brand to an upper- upscale luxury hotel brand. This type of amendment to the agreement requires the approval of the City Council.

ANALYSIS
The CBRE Hotel Study compared the midscale or upper -midscale motels like the newly opened Marriott Courtyard and Residence Inn in Sand City and the Monterey Beach Hotel , a Marriott Tribute Hotel in Monterey which was recently renovated from the Monterey Tides to the upper- midscale hotel. The Study determined that the upper -upscale luxury hotel would be the superior product. The Study took into consideration the performance levels of competitive hotels, and the proposed additions anticipated to enter the market over the near term . The Study determined that there is sufficient market demand to support the development of an upper -upscale luxury hotel at Site A.

The report concluded, “Given the market trends into 2026, constructing an upper -upscale luxury resort hotel is likely the superior strategy for the Monterey area, despite higher construction costs.

Monterey County is experiencing strong Average Daily Rate growth driven by affluent leisure travelers, while the upper -upscale luxury market shows high resilience compared to midscale segments.” The report broke down the following factors to consider.

Why Upper-Upscale is Superior
• Strong revenue per available room (RevPAR) Growth : Monterey County is ex pected to exceed 2019 RevPAR levels by 26% in 2026, driven by higher ADR, as travelers to this area are less price sensitive.
• High-Value Demand: The area is successfully attracting high -value travelers who prefer unique, experiential, and luxurious accommodation (e.g., the new 99 -room Kimpton Mirador in Pacific Grove).
• Defying National Slowdown : While the US market is seeing a slowdown in lower -tier segments, high-end travel remains robust in the Monterey area, fueled by, for instance, a 10-day 85% occupancy rate during Car Week in early August. • Brand Alignment: Monterey’s strategy is to increase presence in the luxury segment and move away from volume towards premium, high-value visitors. • “Experience-First” Tourism: There is high demand for resorts that offer unique, immersive, and sustainable experiences, such as spa, wellness, and local culinary, rather than just accommodation.
• Supply Scarcity: Despite the upcoming additions, overall hotel supply growth is limited, allowing existing and new luxury assets to maintain high average daily rates. • Regional Economic Drivers: The market is bolstered by high-value drive-to tourism from the San Francisco Bay Area, major events, and the full reopening of State Highway 1 in Big Sur, which boosts access.

The Study determined that midscale hotels brands would continue to be successful at the site, however, it determined there would be more competition in that market now with more planned in the near future . Given Site A’s tourist destination, large site size, and ocean view potential, a premium product would likely be more financially feasible for the site compared to midscale hotels. Additionally, the upscale luxury segment enjoys better profitability and low volatility, as high-net worth guests are less affected by economic downturns.

Development Challenges and Constraints
• High Barriers to Entry: Development is challenged by high construction costs, rising interest rates, and the coastal nature of the region, which requires navigating strict environmental regulations.
• Cannibalization Risks: Experts have noted that if not effectively managed , the rapid addition of new rooms could “cannibalize” existing, older properties, though demand currently remains strong.

In reviewing hotel brands, there are three hotels in the upper upscale category : Autograph Collection by Marriot, Curio Collection by Hilton, and the Unbound Collection by Hyatt . The Hilton Curio Collection is under -represented in the market compared to Marriott in terms of number of existing rooms. The Hyatt’s Unbound Collection currently has the largest hotel in the market in the 560 -room Hyatt Regency Monterey Hotel & Spa and the proposed Hyatt Grand Seaside Resort with 330 rooms . The Autograph leans toward a more polished or “hip” aesthetic, whereas the Hilton Curio brand tends to focus on local character istics [?]. The Hilton brand may be willing to offer capital incentives and tends to have more flexible brand standards. Based on this, the Curio brand seems to be the best fit for Marina.

Overall Proposed Upper-Upscale Luxury Hotel Design
The proposed hotel resort will offer a total of 150 rooms, combining 125 traditional guestrooms along with twenty-five private, stand-alone villas . Typical to full -service upper-upscale luxury hotels, in addition to the guestrooms the improvements will also offer a restaurant, bar/lounge, spa, fitness center, pool and hot tub, indoor and outdoor event facilities, and on -site activities with a focus on wellness, culinary arts, and curated entertainment . Common activities could include curated wine tastings, chef-led cooking classes, mixology seminars, live music events, yoga, and unique experiences like tours of local attractions. (EXHIBIT C)

The 125 standard rooms will offer a blend of modern luxury and comfort, featuring curated, high- end amenities such as plush bedding, premium bath products, and in-room technology. Rooms will be designed to offer scenic views of the ocean.

The resort restaurant will serve as a culinary destination, offering farm -to-table cuisine, locally sourced ingredients, and a curated wine list. Guests will enjoy diverse dining options, ranging from intimate, elegant meals to vibrant, social settings, complemented by a scenic terrace for alfresco dining.

A cornerstone of the resort experience is the extensive wellness offerings, anchored by a full - service spa. The spa will feature several treatment rooms, a smaller pool and hot tub separate from the rest of the facility, and a menu of rejuvenating services . Nearby, the state -of-the art fitness center would offer wellness classes, including outdoor morning yoga and personal training sessions.

The resort will offer versatile, high-end wedding and event facilities, including an indoor ballroom alongside various outdoor venues. With specialized wedding planning services, the property will be designed to host a wide range of occasions from small ceremonies to large receptions.

Beyond the on-site amenities, the resort provides access to curated regional experiences through strategic local partnerships . Guests can participate in g uided tours of premier local attractions, explore nearby vineyards and tasting rooms in Monterey County’s wine country, or utilize convenient connections to Marina’s local business centers and restaurants.

The twenty-five stand-alone villas or casita-style units, also known as cottage or bungalow -style units, have gained in popularity, primarily due to the propagation of short -term residential rental competition in the market over the recent past . The construction of the villa -style guest rooms in new hotel developments is increasingly focused on creating a “home -away-from-home” experience, prioritizing privacy, space, and a seamless indoor -outdoor lifestyle . These units maximize natural surroundings and provide exclusive amenities like private plunge pools, outdoor showers, terraces and often feature lofty ceilings, floor-to ceiling windows, and locally inspired design elements that blend with the surrounding landscape.

The restaurant has a space for two hundred guests, banquet and reception space for six hundred seats, and an 8,000 square feet meeting space . It also has a 7,000 square foot greenhouse . Total hotel size is 165,601 square feet.

Hotel Feasibility
The City has contracted with Keyser Marston (Debbie Kern)1 to provide a Pro Forma Package to the City of the Hotel including the following services:

• Review Development Program - including site plan and conceptual renderings, breakdown of square footage uses.
• Schedule for Development
• Development of Cost Pro Forma including:
o Direct development costs
o Indirect development costs
o 10-year annual operating projections
o Reversion analysis to include a developer profit margin. o Sources and uses of funds – amount and sources of debt and equity and terms for debt and equity
• Need for City TOT Sharing Assistance

Keyser Marston has preliminarily determined that the hotel construction and operations are feasible, however, it will require an estimated $25 million TOT revenue sharing agreement anticipated to be structure 50:50. Development cost models are still being refined as well as operating models, debt service models, and cash flow analysis.

CBRE Projected Market Performance
• Year 2030 total TOT Revenue - $2,897,000
• Year 2031 total TOT Revenue - $3,702,000
• Year 2032 total TOT Revenue - $3,986,000

Hotel Development Agreement
The Hotel Development Agreement called for the development of three hotels in two phases and established a Schedule of Performance for the completion of the development. As noted above,

1 The City entered into a reimbursement agreement on or about March 2026with the hotel developer to cover the cost of Keyser Marston’s services.

the Developer was unable to meet the Schedule of Performance due to factors outside the Developer's control, including delays in the installation of the infrastructure needed to access the Site. Under the terms of the Hotel Development Agreement, the City could determine the Developer to be in default and exercise its remedies under the Agreement, which include the right to purchase Opportunity Site A from the Developer for the $3.6 million that the Developer paid for the Site. If the City were to exercis e its Option to purchase the site, it would then have to comply with the Surplus Land Act before disposing of the site. The Surplus Land Act requires that the City first offer the site to affordable housing developers, or entities that will use the site for open space. The Surplus Land Act process could take up to a year to complete if the City receives interest in the site from affordable housing developers . Only after the Surplus Land Act process is complete and if the City cannot reach agreement on terms of disposition of the property for affordable housing with a developer after conducting good faith negotiations can the City consider conducting a process for selection a new hotel developer for the property.

If the City Council were to consider the proposal for the development of the upper upscale hotel to replace the two phase, three hotel development current contemplated, the Hotel Development Agreement would need to be amended to reflect the new parameters of the development project including an updated schedule of performance. The schedule of performance proposed by the CBRE report would have construction of the new hotel completed in 2030.

ENVIRONMENTAL DETERMINATION
The recommended actions are administrative and informational in nature and do not approve, authorize, fund, or commit the City to any definite course of action that could result in a direct or reasonably foreseeable indirect physical change in the environm ent. As such, the recommended actions do not constitute a "project" as defined by CEQA Guidelines Section 15378. The certified and approved EIR adopted in May of 2005 for the University Villages Specific Plan has served as the environmental documentation for the approval of the Hotel Development Agreement . The Hotel Development Agreement contemplates the a hotel/conference center as originally proposed and studied for the EIR. However, before the City grants final regulatory approval of the development proposed in a new or amended Hotel Development Agreement, the City will once again evaluate the development proposed to determine if it is consistent with the EIR and whether additional environmental analysis is required.

CONCLUSION
This staff report, resolution, and associated exhibits are submitted for City Council consideration.

Respectfully submitted,

Karen Tiedemann

REVIEW/CONCUR

Layne Long
City Manager
City of Marina

ATTACHMENTS
Exhibit A- Site Plan
Exhibit B- Hotel Development Agreement
Exhibit C- Proposed luxury hotel rendering

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA RECEIVING A PRESENTATION

FROM MONTEREY BAY HOTELS LP (FORMER DADWAL MANAGEMENT GROUP) REGARDING NEW PROPOSED UPSCALE RESORT HOTEL ON OPPORTUNITY SITE 1A IN THE DUNES DEVELOPMENT

REPLACING THE APPROVED MARRIOTT AC, MARRIOTT ELEMENT, AND HYATT HOUSE HOTELS ON OPPORTUNITY SITE 1A; PROVIDE DIRECTION TO STAFF REGARDING AMENDING EXISTING HOTEL DEVELOPMENT AGREEMENT; PROVIDE DIRECTION TO STAFF REGARDING A PROPOSED

ECONOMIC DEVELOPMENT SUBSIDY REPORT AND A TRANSIENT OCCUPANCY TAX REVENUE

SHARING AGREEMENT TO ASSIST WITH THE CONSTRUCTION COSTS AND SITE DEV ELOPMENT

OF AN UPPER-UPSCALE LUXURY HOTEL

WHEREAS, on December 22, 2020, Marina Community Partners (Dunes) gave the City notice that it would not be able to enter into an agreement with a hotel developer as called for in the Operating Agreement and acknowledged the City’s option to acquire the Hotel Site; and

WHEREAS, the Operating Agreement granted the City an option to acquire the approximately 9.5-acre Hotel Site located on Opportunity Site 1A (Exhibit A; and

WHEREAS, the City gave MCP the required Option Exercise Notice and subsequently assigned its right to acquire the Hotel Site to the Dadwal Management Group subject to certain conditions being met . These conditions were met and the Dadwal Management Group acquired the Hotel Site for $3.6 million dollars (Exhibit B); and

WHEREAS, on A ugust 17, 202 1 the City Council approved negotiating a Hotel Development Agreement with Dadwal Management Group to construct on phase one a ninety-room Marriott Element hotel and a one hundred ten-rooms Marriott AC Hotel, and in phase two a one hundred-room Hyatt hotel; and

WHEREAS, the proposed hotel resort will offer a total of 150 rooms, combining 125 traditional guestrooms along with twenty-five private, stand-alone villas. Typical to full-service upper-upscale luxury hotels, in addition to the guestrooms the improvements will also offer a restaurant, bar/lounge, spa, fitness center, pool and hot tub, indoor and outdoor event facilities, and on-site activities with a focus on wellness, culinary arts, and curated entertainment. (Exhibit C); and

WHEREAS, the Dadwal Management Group, now the Monterey Bay Hotel LP, is requesting to modify the Hotel Development Agreement and build a upper-upscale luxury resort hotel.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Marina does hereby:

1. Receive presentation from the Monterey Bay Hotels LP and provide direction.

2. Provide direction to staff regarding amending the existing Hotel Development Agreement and bring back to City Council

3. Provide direction to staff regarding an Economic Development Subsidy Report and a proposed transient occupancy tax (TOT) revenue sharing agreement and bring back to City Council

PASSED AND ADOPTED by the City Council of the City of Marina at special meeting duly held on the 1st day of July by the following vote:

AYES, COUNCIL MEMBERS:

NOES, COUNCIL MEMBERS:

ABSENT, COUNCIL MEMBERS:

ABSTAIN, COUNCIL MEMBERS:

Bruce C. Delgado, Mayor
ATTEST:

Anita Sharp, Deputy City Clerk

EXHIBIT A

EXHIBIT B

EXHIBIT C

Marina City CouncilJuly 1, 2026

Marina City Council
July 1, 2026