The Los Angeles Harbor Department is seeking City Council approval to renew and expand the operating permit (Permit No. 942) for the DoubleTree by Hilton Hotel at 2800 Via Cabrillo Marina in San Pedro.

What Is Being Proposed?

The Los Angeles Harbor Department is seeking City Council approval to renew and expand the operating permit (Permit No. 942) for the DoubleTree by Hilton Hotel at 2800 Via Cabrillo Marina in San Pedro. The new 50-year successor permit would replace the existing agreement between the Harbor Department and LA Sky Harbor, LLC.

Key Changes and Financial Impact

The renewal significantly increases the city's revenue from the hotel operation. The fixed minimum annual rent would jump by $145,031.67—from $284,556.33 to $429,588 per year. Additionally, the permit expands the hotel's footprint by 42,350 square feet (from 7.13 to 8.1 acres) and restructures how percentage rent is calculated, moving from revenue-based percentages to fixed percentages across different revenue streams (5% for rooms and food/beverage, 3% for retail, 20% for parking, and 10% for vessel sales). All revenues will be deposited in the Harbor Revenue Fund with no impact on the city's General Fund.

Committee Recommendation

The Trade, Travel and Tourism Committee unanimously voted to approve all three recommendations: concurring with the categorical exemption from environmental review, approving the Harbor Department resolution authorizing the successor permit, and authorizing the Executive Director to execute the final agreement. The document indicates this matter is now ready for full City Council consideration.

What is Being Proposed?

The Port of Los Angeles is seeking City Council approval to grant a successor operating permit (Permit No. 942) to LA Sky Harbor, LLC, doing business as the Doubletree by Hilton Hotel. This permit authorizes the company to continue operating a hotel at 2800 Via Cabrillo Marina in San Pedro.

Key Details

The resolution is being submitted to City Council District 15 for approval under Sections 606 and 607 of the City Charter. The Board of Harbor Commissioners has already determined that this action is exempt from environmental review requirements under the California Environmental Quality Act (CEQA). There is no financial impact to the City's General Fund.

Recommendations

The City Council is being asked to take two actions: (1) adopt the Board of Harbor Commissioners' determination that this permit is categorically exempt from CEQA requirements, and (2) approve the successor permit agreement with LA Sky Harbor, LLC to allow continued hotel operations at the marina location.

Impact

This action ensures continued hotel operations in San Pedro's marina district, maintaining business activity and tax revenue for the Port. The permit transfer allows the Doubletree by Hilton to legally operate under new ownership or management while maintaining compliance with City Charter requirements.