The Davis City Council voted Tuesday to get the ball rolling on two major projects that could be the final legacy of the city’s redevelopment agency.

A four-star, six-story national hotel franchise — complete with the conference center venue the city has long desired — soon may open where the University Park Inn & Suites now stands on Richards Boulevard at Olive Drive.

Owner Ashok Patel is planning a $15.5 million hotel expansion with a $5 million redevelopment loan from the city to build the conference center and 85 new rooms.

City staff will prepare loan documents at the council’s unanimous direction for approval on April 19.

Mayor Pro Tem Rochelle Swanson noted the city is aware that the popular longtime restaurant Caffé Italia would need to move from its current location adjacent to the hotel.

“We’re all very sensitive to that happening,” Swanson said. The council directed staff to see if the city or University Park Inn can assist in the relocation.

The makeover also would include a new rooftop restaurant and underground garage. Patel has not named the franchise he is buying, but he noted many customers who frequent certain franchises will drive “20 to 30 miles” to stay at their preferred hotels.

A brand-name hotel and conference center in Davis would help the city snag hotel tax revenues that are otherwise captured by surrounding jurisdictions such as Woodland, Sacramento and even UC Davis, which opened the 75-room Hyatt Place on campus last March. Hyatt Place owners reportedly are already considering an expansion.

The conference center also would provide a venue for community events that cannot be accommodated at existing facilities, according to city staff.

In a separate discussion at the meeting, the council agreed to The Wiseman Company’s request for a 120-day exclusive negotiating agreement for the construction of a mixed-use building downtown.

The city’s involvement is its parking lot in the 200 block of G Street where Wiseman wants to build. Also at the site are two privately owned parcels occupied by Davis Ace Hardware, KetMoRee restaurant, G Street Pub and Kathmandu Kitchen.

Additionally, Wiseman probably will ask the city for funding assistance, the amount and terms of which would be discussed during the negotiating period, according to city staff.

With local redevelopment agencies likely to disappear due to state budget cuts, communities including Davis are acting fast to use redevelopment funds. But that doesn’t meant there won’t be disagreements over how to spend the money.

Some council members were skeptical about the Wiseman agreement. It is too soon to know specifics of the project, city staff said, but Wiseman is interested in building a mixed-use center with some parking. Wiseman is in the process of talking to the property owners at the site about the project.

Councilwoman Sue Greenwald said she would rather see city staff put energy into getting a parking garage built — another priority redevelopment project on the city’s to-do list.

Community Development and Sustainability Director Ken Hiatt responded that it is best to move forward with as many projects as possible since there is no telling which ones will become reality.

Greenwald said she could support the negotiating agreement to see what kind of project comes out of it. If Wiseman presents a great project —  if it includes a parking garage, for example — then it would be more likely to win the council’s favor, she said.

Councilman Stephen Souza did not like the idea of closing negotiations off with an exclusivity agreement even if it is only for 120 days, which,  Community Development Administrator Katherine Hess said, is a shorter length of time than normal. Souza said the city should see if it gets any other offers for developing the site.

He said he planned to abstain from the vote because he did not want to appear “hostile” toward the Wiseman project specifically. When it came time to vote, however, the discussion led Souza to “go fishing” with his fellow council members.

The council voted unanimously 4-0 — Swanson recused herself due to a conflict of interest — to enter into the exclusive negotiating agreement and receive a report from staff when the term expires.

— Reach Crystal Lee at [email protected] or (530) 747-8057.

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KetMoRee, Kathmandu Kitchen, Davis Ace and the city-owned parking lot are being eyed for a new redevelopment project. Sue Cockrell/Enterprise photo

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The city-owned parking lot in the 200 block of G Street would be replaced with new parking and a multi-use street-front project by The Wiseman Company, if negotiations bear fruit. Sue Cockrell/Enterprise photo

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The 200 block of G Street could take on a major new look if the city approves a redevelopment project there. Sue Cockrell/Enterprise photo

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