The Long Beach City Council unanimously approved a deal that will enter it into a transient occupancy tax agreement with American Life Inc. for the purchase and development of the parcel of land that previously held the Jergins Trust Building.
The vote makes way for the proposed 25-story, 427-room hotel development by American that seeks to activate a corner of one of the city’s busiest strips of commerce that has lain dormant for nearly three decades. The location, situated at the southeast corner of the intersection of Pine Avenue and Ocean Boulevard, currently holds “The Loop” attraction, but City Manager Pat West said the location has the potential for much more value.
After taxation and disbursement throughout the county, the $7 million dollar sale is expected to net the city about $1.2 million, which is expected to be reflected in the 2018 fiscal year budget, of which 75 percent will go toward the downtown project area and remainder used for citywide projects.
“This is perhaps one of the more prime pieces of property in the entire city of Long Beach at Pine and Ocean,” West said. “It’s really a critical piece and we have the opportunity to see a great development there.”
The property has been vacant since the Jergins Trust Building was demolished in 1988 and the city has made many attempts, like the Loop, to keep it activated, as it is part of the hub of Downtown Long Beach. It was listed for a request for proposal in July 2015 and the proposal by American was one of three received by the city in November of last year.
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