CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
11/24/2025
1 SUBJECT:
Guiding Framework of Parameters and Principles for the 2212 Beach Boulevard Site Request for Qualifications/Proposals (RFQ/P)
RECOMMENDED ACTION:
Receive a presentation on guiding framework and key principles for potential development of the 2212 Beach Boulevard site, provide direction to the City Manager on the preferred parameters and expectations to be incorporated into the forthcoming RFQ/P, consider forming a Council Ad Hoc Subcommittee to engage at key milestones in the solicitation process and, if Council elects to do so, appoint its members; and authorize staff to prepare and issue an RFQ/P to solicit development proposals for the site.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 738-7402
[email protected]
INTRODUCTION:
The 2212 Beach Boulevard site (“Site”) is a key City-owned oceanfront property identified in the City’s Strategic Plan and Economic Opportunities Study as a priority redevelopment opportunity.
With the Site now eligible to be marketed for private development after completing the Surplus Lands Act process, the City Manager is seeking Council direction on a guiding framework and key principles to shape a Request for Qualifications/Proposals (RFQ/P) for the Site. The City has contracted with Kosmont Companies for assistance throughout this process.
Based on previous and continuing City Council direction, the City Manager recommends moving forward with a hotel-focused solicitation that aligns with the Site’s waterfront setting, supports downtown development, and advances long-term strategic priorities and fiscal objectives. The proposed framework outlines the intended solicitation approach and evaluation criteria and will guide preparation of the RFQ/P and subsequent developer outreach.
BACKGROUND:
The City has been pursuing redevelopment of the 3.5-acre City-owned site parcels at 2212 Beach Boulevard (“Site”) for decades, after the City relocated the former wastewater treatment plant in 2000. The property underwent significant preparation following the plant’s closure, including soils and groundwater investigations, removal of underground tanks, environmental review, and concept planning for future development. These activities positioned the site for marketing. As with all development solicitations, the past site activities and any necessary new site activities will be addressed during the due diligence phase of property negotiations. 2016-2018 RFQ/RFP Efforts
In 2016, the City issued a two-step RFQ/RFP for a mixed-use development comprising a hotel, Pacifica City Council 2
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restaurant/retail, housing, and a public library. Several developers submitted qualifications, and one development team was selected for negotiations in 2017.
During this period, progress on the project became tied to the possibility of locating a new City library on a portion of the site. The November 2017 library funding measure received majority support but did not achieve the required two-thirds voter approval. As a result, the City revisited potential library location options while simultaneously attempting to negotiate project terms.
Ultimately, the combination of unresolved library siting decisions, coupled with the complexities of designing a shared hotel, library development footprint and the parties’ inability to reach agreement on key deal terms, led the City and the developer to mutually discontinue ENA negotiations.
In early 2018, after determining that the library would no longer be included on the Site, the City reconsidered the development strategy. Staff recommended, and the Council approved, a refreshed RFQ/RFP focused on a whole-site (while retaining the existing pump station in place), waterfront hotel concept to maximize competitiveness, visitor-serving activities, and secure long-term fiscal benefits such as transient occupancy tax (TOT), property tax revenue, and Palmetto downtown corridor revitalization. Despite progress on the revised strategy, the City received only one proposal, which was ultimately determined to be infeasible. As a result, the parties did not enter into an ENA, and the process concluded without moving forward to the entitlement or disposition phases.
Project Pause Following 2018 Effort and COVID-19
Following an unsuccessful solicitation in 2018 that resulted in only one proposal that was deemed unviable, the City planned to conduct a hotel market study and reinitiate the RFQ/RFP process; however, the COVID-19 pandemic halted this plan. Market volatility, severe uncertainty in the hospitality sector, and constraints on staffing and resources made it impossible to continue active solicitation for a developer partner. As a result, the Beach Boulevard project was placed on hold during the COVID period.
In addition, the City was engaged in numerous major projects that would ultimately help the future marketing of the site, including a comprehensive General Plan Update, a comprehensive Local Coastal Land Use Plan, the Sharp Park Specific Plan, and wastewater pump station improvements.
Post-COVID Reconsideration of the Site
After the pandemic, the City restarted comprehensive economic development planning efforts.
The 2212 Beach Boulevard site was re-evaluated as part of:
• 2023 Economic Opportunities Study (EOS):
The EOS, conducted by Kosmont Companies, identified the Site as Pacifica’s most significant near-term economic development opportunity. Key findings emphasized the Site’s rare oceanfront location, hotel market viability, ability to anchor the Palmetto Avenue commercial corridor, and strong revenue-generating potential. The Study reaffirmed a hotelfocused implementation strategy and recommended advancing the project once Surplus Land Act compliance was complete.
• 2023-2030 Citywide Strategic Plan:
The Plan includes redevelopment of 2212 Beach Blvd as a core initiative under “Economic Pacifica City Council 3
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Vitality” and “City Revenue Sustainability.” It calls for completing the SLA process, preparing development solicitation materials, and re-engaging the market through a structured RFQ/P process based on clear guiding principles and community goals.
Completion of the Surplus Land Act (SLA) Process
Earlier this year, staff conducted and completed the State-mandated Surplus Land Act (SLA) process, which is required before a local agency may sell or lease publicly owned land for private development. The SLA compliance included:
• Formally declaring the Site “surplus property.”
• Issuing the Notice of Availability (NOA) to required affordable housing entities. • Allowing the required 60-day window for interested developers to express interest. • Conducting good-faith negotiations, if applicable.
• Obtaining final clearance from the California Department of Housing and Community Development (HCD).
No affordable housing proposal advanced through the SLA negotiation phase. With HCD’s clearance now in hand, the City is legally authorized to market the Site, issue an RFQ/P, and advance toward disposition and development of the Site. With the Site identified in the City’s adopted Strategic Plan as a key economic development strategy, the City is now ready to reinitiate a competitive developer solicitation process.
To ensure clarity, market viability, and alignment with the City’s strategic objectives and community values, the City Manager recommends the Council establish a guiding framework and principles for the forthcoming RFQ/P. These parameters will form the basis of the solicitation document, ensure transparency, and provide consistent expectations for potential developers as the City moves forward to market the site and solicit qualified developer interest for the 2212 Beach Boulevard project.
DISCUSSION:
To support the City in advancing the redevelopment of the 2212 Beach Boulevard site, staff retained Kosmont Companies, a firm specializing in municipal real estate advisory services, hotel market analysis, public-private transactions, developer solicitation, and negotiation support.
Under this engagement, Kosmont is assisting the City with:
• market positioning of the Site, including hotel market analysis; • preparation of the RFQ/P tailored to current industry conditions; • strategic outreach to qualified hotel developers, operators, and brands; • evaluation of developer submittals; and
• supporting ENA negotiation and fiscal analysis.
Once the Council provides the direction to proceed, City staff and Kosmont will finalize the RFQ/P package, prepare a targeted distribution list of qualified hotel developers and brands, and release the solicitation for a recommended 30-45 day posting period. During the posting window, staff and Kosmont will maintain a single point of contact for all inquiries, post addenda as needed, and track interest from prospective respondents.
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Upon receipt of responses, all submissions will be thoroughly reviewed and evaluated against the established qualifications and RFQ/P criteria. Staff and Kosmont will establish a shortlist of the most qualified development teams, conduct interviews and site tours, and request refined proposals / term sheets from finalists for Council’s consideration of a preferred developer.
Upon Council selection of a preferred development team, staff, working closely with Kosmont and the City Attorney, will initiate negotiations for an Exclusive Negotiating Agreement (ENA) to establish roles, responsibilities, performance milestones, financial terms, due diligence requirements, and the path toward a future Disposition and Development Agreement (DDA).
Consistent with lessons from 2018 solicitation process and current market conditions and Council priorities, City Manager recommends that the RFQ/P emphasize a whole-site, hotelfocused uses and avoid any encumbrances that would reduce the hotel footprint or add substantial entitlement complexity, while allowing proposers to describe any complementary visitor-serving elements if they strengthen the overall project and hotel business case.
Request for Qualifications (RFQ)
The RFQ phase is intended to identify development teams with the experience, financial capacity, and technical capability to successfully execute a high-quality, coastal hotel project on a complex, high-visibility site. Screening criteria for qualified developers may include the following:
• Demonstrated financial capacity and prior hotel development experience, including equity/debt structures, successful delivery of comparable projects, and experience with public-partner transactions and ENA and DDA negotiations with public agencies in California.
• Track record of developing coastal or destination/main-street hotels with reputable brands/operators and high-quality architecture, design, and engineering teams. • Experience navigating multi-jurisdictional entitlements, including City land-use review, Local Coastal Program policies, and California Coastal Commission requirements, as well as experience managing complex permitting, compliance, and enforcement environments.
• History of long-term hotel ownership and operations, robust community engagement, and constructive partnerships in other jurisdictions.
• Clear statement of vision for the Site, including how the proposed team views the Site’s potential and its role in downtown Pacifica’s economy and visitor-service industry.
Request for Proposals (RFP)
Shortlisted teams will be invited to submit detailed proposals, including purchase terms and conditions. RFP evaluation will focus on the quality, feasibility, and alignment of proposals with the City’s strategic goals for placemaking, economic development, and long-term fiscal resilience.
Evaluation Criteria may include the following:
• Program & Placemaking: Evidence the hotel is designed as a destination property that leverages the oceanfront, pier / promenade, Coastal Trail, Sharp Park Golf Course, and Palmetto commercial corridor. Strong proposals will incorporate activated food and beverage spaces, visible public-realm edges, and right-sized meeting and social space. • Design & Site Plan: Preliminary site and floor plans, massing/elevations, room count, amenities, restaurant, meeting space and potential retail along Palmetto Ave (if applicable), quality of furnishings / fixtures, and a parking plan that may include the treatment or replacement of existing public spaces and supports downtown operations.
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• Brand/Operator & Quality: Identification of the intended hotel brand or operator tier, the list of potential hotel brands/operators that will be solicited, and the anticipated quality, service level and price positioning suitable for a waterfront setting. • Resilience & Coastal Interface: Demonstrated understanding of sea-level rise, coastal hazards, shoreline dynamics, and feasible design strategies that are consistent with City policies, the Local Coastal Program, and Coastal Commission requirements. • Financials & Schedule: Realistic hotel development pro forma (land economics, construction costs), and hotel operating pro forma (market assumptions, rate of returns), proposed land purchase price or ground lease terms, and a realistic proposed development schedule with key milestones.
• City Cost Recovery: Provision of an ENA deposit sufficient to cover City’s legal and consultant costs, associated with ENA preparation and negotiation, with reconciliation at ENA execution and augmentation if needed
Council Ad Hoc Subcommittee Role
If the Council chooses to establish an Ad Hoc Subcommittee, its purpose would be to provide focused, high-level input at a few critical milestones in the RFQ/P process while staff and Kosmont continue to lead all technical evaluations and negotiations over the next 6-8 months.
The subcommittee would serve in an advisory capacity only, ensuring alignment with Council priorities prior to items returning for full Council consideration.
If formed, the subcommittee’s involvement would be limited to these key touchpoints:
• Prospective Developer Interviews:
Following consultant and staff completion of its technical evaluation of RFQ responses and development of a shortlist of top respondents, the subcommittee would participate in interviews with those developers to gain early insight into qualifications and concepts before proposals advance to the next phase.
• Discussion of RFP Results and Term Sheets:
As the leading shortlisted developers submit proposals and preliminary term sheets, the subcommittee would be briefed on the technical evaluation and engaged in a high-level discussion of project feasibility, alignment with City strategic objectives, to provide input on key issues requiring Council direction.
• Preferred Developer Recommendation:
Prior to bringing forward a preferred developer for full Council consideration, the subcommittee would work with the consultant and staff to review the evaluation outcome, assess alignment with Council-established parameters, and help shape the recommendation by identifying the developer team best positioned to advance to Exclusive Negotiating Agreement (ENA) negotiations.
Staff could convene the subcommittee as needed at these specific milestones or related intermediate steps, and the group would not be expected to meet on a standing or recurring schedule.
ALTERNATIVE ACTION:
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The City Council may choose to delay consideration of the guiding framework and RFQ/P parameters. Deferring action would postpone issuance of the RFQ/P and delay the City’s ability to actively market the Site to qualified developers.
Alternatively, the Council may provide additional direction to modify, expand, or refine components of the guiding framework, RFQ/P criteria, or development strategy.
Council may also elect not to move forward with an RFQ/P at this time; however, this would halt progress on marketing the Site, delay potential economic development and revenue opportunities, and be inconsistent with adopted Strategic Plan priorities.
RELATION TO CITY GOALS AND WORK PLAN:
Redevelopment of the 2212 Beach Boulevard site directly advances the City’s adopted Strategic Plan and Economic Opportunities Study recommendations, both of which identify the Site as a priority economic development opportunity. Issuing an RFQ/P supports goals related to economic vitality, fiscal sustainability, downtown revitalization, and strategic use of City-owned property.
FISCAL IMPACT:
There is no immediate fiscal impact, as the consulting work has been included in the FY 2025- 26 Budget. Preparation and issuance of the RFQ/P will require staff time and limited consultant and legal support, which can be accommodated within existing Economic Development resources and budget allocation. The shortlisted respondents will be required to provide an ENA cost-recovery deposit, and the selected developer will be expected to reimburse the City’s legal and consultant costs associated with ENA and DDA negotiations. The long-term financial impact is to be determined at a later stage on this process.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST: