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City of Mountain View, California Launches Search for a Hotel Developer;
Talks with Google Fizzle for a Planned  Luxury Resort
By Jason Green, Palo Alto Daily News, Calif.McClatchy-Tribune Regional News

July 9, 2008 --Negotiations between Mountain View and Google to build a hotel on the city's east side may have fizzled, but officials are still pushing hard to bring a four-diamond resort to the area.

The city council on Tuesday unanimously approved issuing a request for qualifications and proposals to lease and develop roughly 9.4 acres of the so-called Charleston East site for a hotel.

A resort on the site, located at the corner of Charleston Road and North Shoreline Boulevard, is expected to generate roughly $2 million to $3 million annually from lease and transient occupancy tax payments, according to a report prepared by Community Development Director Ellis Berns.

The city and Google opened talks in September to develop a hotel on 9.4 acres of the 18.6-acre site after the high-tech company won approval to construct a 310,000-square-foot office and research and development building on the other half. But they "were unable to reach agreement on terms and conditions for the site," Berns wrote in his report.

City staff plan to return to the council in November or December with two or three proposals. According to Berns' report, the city wants to build a "high-quality, four-diamond hotel with significant conference capacity."

One of the minimum business terms outlined in Berns' report requires the hotel operator to sign a memorandum of understanding with the Hotel Restaurant Employees Union Local 19. The agreement is intended to set ground rules for any union organizing effort and to avoid picketing or other economic actions against the resort.

E-mail Jason Green at jgreen@dailynewsgroup.com.

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Copyright (c) 2008, Palo Alto Daily News, Calif.

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