SAN PEDRO — Construction of a long-awaited 232-room hotel in the heart of the business district should begin in December, City Councilwoman Joan Milke Flores told a meeting of harbor-area merchants last week.
The $20-million hotel, to be built in the Beacon Street Redevelopment Project area at Palos Verdes and Sixth streets, was approved last summer by the Community Redevelopment Agency and the City Council. Construction has been delayed while the city and the developer renegotiated the project's design and awaited an updated study of the demand for hotel rooms in the area.
The new agreement should be approved by the agency and the City Council in September, Flores said.
The eight-story hotel will be built by Beacon Street Associates, a company composed of Goldrich & Kest Industries and Lazben Hotel Investment Co. Flores said that the developers have chosen the Sheraton Corp. to operate the hotel.
Local business leaders applauded the announcement and predicted the hotel would spur retail development in San Pedro's central business district.
"The community is in ecstasy," said LeRon Gubler, executive director of the San Pedro Peninsula Chamber of Commerce. "The merchants feel it will give the final spark for revitalization in San Pedro."