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Resolution No. 15-7604-Approving a Purchase and Sale Agreement with Downey Hospitality, LLC
RESOLUTION OF • OF OF ,• APPROVING DOWNEY HOSPITALITY, LLC AND THE CITY OF DOWNEY FOR PROPERTY LOCATED AT 9066 FIRESTONE BOULEVARD WHEREAS, the City has negotiated a purchase and sale agreement with Downey Hospitality, LLC ( "Buyer "), pursuant to which the City would sell the Property, located at 9066 Firestone Boulevard Downey, CA for a sales price of $2,525,000; and, WHEREAS, the City Council has determined that approval of the Agreement and the sale transaction contemplated thereby, is in the best interest of the City and the public health, safety and welfare. I w =1=1 :4 OPEN 0101 • • SECTION 1. The City Council of the City of Downey hereby (i) approves the Agreement, copy of which attached hereto as Exhibit "A ", and is on file with the City Clerk, (ii) if required, authorizes and directs the City Manager to make final changes to the Agreement consistent with the City Council's direction, and (iii) authorizes and directs the City Manager to execute the final Agreement and any other documents and agreements necessary to complete the sale transaction contemplated by the Agreement. SECTION 2. The City Council of the City of Downey hereby determines that the sale of the Property is exempt from the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines, as an existing facility. SECTION 3. The City Clerk shall certify to the adoption of this resolution. I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular meeting held on the 10th day of March, 2015, by the following vote, to wit: This Ptirchase and il ate Agreement, and Escrow instructions ("Agreenzent"') is entered into on ;eZeffl,12f-4' 11 , 2015 ("Effective Date") by THE CITY OF DOWNEY, a California municipal corporation ("Seller"), and DOWNEY HOSPITALITY, LLC, a California limited liability company ("Buyer"). Buyer and Seller are hereinafter individually referred to as a"Party" arid collectively as the "Pai-ties." A. Seller is the owner of real property in the City of Downey ("City"), County of Los Angeles ("County"), State of Czilifornia, located at 9062 and 9066 Firestone Blvd, Downey, CA 90241, alld described and/or depicted in Exhibit 'A"("Property"). THEREFORE, Seller and Buyer agree as follows: L Purchase and Sale; Purchase Price, Ll Purchase and Sale. Seller shall sell the Property to Buyer for development of the Pr(ject. and Buyer shall purchase the Property from Seller for developinent of the Project, subject to the terms and conditions set forth in this Agreement. L2 Purchase Price. The purchase price of the Property including the"Property Rlikylits" (as defined in Section,2.8 below) is TWO MILLION FIVE HUNDRED TWENTY FIVE C11 THOUSA-ND DOLLARS ($2,-525,000) ("Purchase Price"). 2. Escrow. 680/012'25 -0109 90W592, I a I U17/15 Holder with their respective Federal Tax Identification Numbers and such other inforination as is reasonably required by Escrow Holder. 12 Payment of Purchase Price.The Purchase Price for the Property shall be payable as follows: 2.2.1 Intentionally deleted. 2,2.2 Payment at Closing.If Seller has deposited into Escrow all documents and amounts required of Seller to close Escrow, including without limitation, the "Grant Deed" (as defined in Section 2.11.1 below) and complied with all of Seller's other obligations under this Agreement, then on or before the "Closing D ate" (as defined in Section '2 3 below) so as riot to delay the "Close of Escrow" (as defined in Section 2.3 below), Buyer shall deposit into Escrow the following in Acceptable Funds: (a) the balance of the Purchase Price (Purchase Price less the Deposit made in connection with that certain Exclusive Negotiating Agreement dated August 26, 2015 ("ENA"), acid any other credits to Buyer under this Agreement) and (b) Buyer's share of Escrow closing costs pursuant to the preliminary Escrow -closing statement 61niislied by Escrow Holder as provided below. 2.3 Close of Escrag w.Sub ject to Sections 2.3.1 and 2.3.2, Escrow for the sale of the Property shall close onthe date which is thirty (30) days following the expiration of the Feasibility Period. As used in this An reement, "Close Escrow"and"CosiDe"shall mean the date on which the Grant Deed conveying title to the Property to Buyer is recorded. 23.1 Conditions Precedent to Buyer's Obligation to Close.Buyer's obli-ation to close Escrow and. purchase the Property is expressly conditioned on the satisfaction Of the conditions listed in this Section 2.3.1. If any such condition is not satisfied, or waived (with the exception of (6) below which cannot be waived) by Buyer, at or prior to the Close of Escrow, for any reason other than a default by Buyer, Buyer may, in its sole discretion and without limiting anv of Buyer's le-al remedies or remedies under this A reement, terminate this Agreement by 9 Written notice to Seller, (1) Title Policy. Title Company has issued or committed to issue Buyer the "Title Policy" (as defined in Section 2.6below) showing title vested in Buyer subJect only to "Permitted Fxcepfions" (as defined in Section 2.5below). (2) Representations and Warranties, Each of Seller's representations and warranties in this Agreement are materially true and accurate as of the Close of Escrow. (3) Seller Obligations, Seller is not in material default tinder this Agreement and each material obligation of Seller to be perfon-ned prior to the Close of Escrow, ,I has -been perfornied as required, including, without limitation the delivery of all docutilents required of Seller under this Agreement. (4) Possession, Seller is able, at the Close of Escrow, to deliver possession of the Property and Property Rights to Buyer in accordance with this Agreement and does so, 2A Escrow Cancellation. 2.41 Charges. 580/012'225 -0109 9060591 IM 1/ 171 15 -3- (1) Seller's Default. If Escrow fails to close due to Seller's default and this Agreement is terminated, Seller shall pay all Escrow cancellation charges. "Escrow cancellation charges" means all fees, charges and expenses charged or passed on to the Parties by Escrow Holder, including all title expenses. 1 0 (2) Buyer's Default, If Escrow fails to close due to Buyer's default and this Agreement is ternunated, Buyer shall pay all Escrow cancellation charges. (3) No Default. If Escrow fails to close and this Agreement is terminated for any reason other than a default by one of the Parties, each party shall pay one half of the Escrow cancellation charges, and each Party shall be deemed to have released the other Party froni all liability for the failure of Escrow to close. 6801012225-0109 9060592:1 a 111 V7115 -4- 2.5.2 Personal Property.All right, title and interest of Seller, if any, in and to all tangible personal property owned by Seller now existing and placed or installed on or abort the Property and used in connection with the ownership, operation, management, maintenance and /car repair of the Property. 6801012225 -0109 9060592. la 11/ M1 any obligations of Seller under any Contracts nor shall it constitute an assumption ption by Buyer of any obligations, of Seller under any Contract, inc,iaciincy, without limitation, the obligation to pay any fees, costs or charges of my kind there under. '1'9 Taxes, Assessments and r r ties . 690 /0 12Z25-0109 90605911 ai I /; ?!t? -6- 2,15 Termination of Property Contracts. Seller shall, at no additional cost and expense to buyer, ten-ninate miy service contracts or similar agreenient relating to the Property which the Buyer does not elect In writing to assume which termination shall be effective as of the Close of Escrow. 311= 650;012 225 -0109 9060592- 1 a I I It 7,15 6901012225�0109 9060592. 1 a i 1/ 1711 5 Buyer's deposit of same on the Property) including without limitation diniinution in value of the Property, 5 Additional Agreements. 5.2 Warranties, 690/012225-0109 9060'59llal 1/17/15 -10- (7) Assumed Obligations. With the exception of obligations or responsibilities of Seller that are expressly assumed by Buyer in this Ag0 reement, there are no obligations or responsibilities of Seller with respect to the Property or otherwise of any kind that are ass urned by B uyer. (8) Endangered Species. To the best of Seller's knowledge, (a) there are no endangered or threatened species of animals, plants or insects on the Property and (b) there are no environmental or biological characteristics of the Property which under existing L� law will adversely affect Buyer's ability to own, develop and/or market the Property or the cost thereof. (9) Ownership of Property. Seller is the solo and only party that owns or holds any interest in the Property. (11) Other Agreements. To the best of Seller's knowledge, except as set. forth in the property Documents to the extent delivered to Buyer and this Agreement, Seller has not rnade any commitment or representation to or watered into any agreement of an t7� y 690/0 122254 109 906W91 la � 1! 17/15 68070121-25-0109 9060592,lal 1117h5 5.2,4 Exclusions. 68(1/01222-5-0109 9060592- Lai I/MO -14- ie casodoNd Sa,Llfls drsmo wis 0 aped. 'I'TIHONMdS Iw It QdS®d02Id v° w « ,•�••••, K3 ffi / &Ifki tl]'A3NM0® SY3NNPtd QHV SN33Wi'�N3 SL1311H5NY S91I119 Xr SNOWIS 0 axnmG Ox r IIIHO NnJS -j J :NOI1VIi pgnex ratans tri..azWa ell a tlr STN 5�Y 4+.4Rnae9 ts#BawN «€Q w,w�a{ftiN' u::. 5 CIJE O MM ING NN h3H �3 s Au �h tMpC 99 0m) A w"W um'wwamu3 IV OW&n tll wLO Su®Id iaajj dol pue jeawi-R!Nn 6Zl-S-101-10 va3Pm T :3PNN 31H C) NouanUiSNOO dOj loN SONIM 1iOIHHVW a 3M130m) NOIS3® A4 SHIM 111HEMUdS 11Nn SZ SNdld HOOIJ d01 (j NV IVO I dAl fill, a i INS v Igo M pip k i} MU i I 0 u utq{ EE HIN h g Z j � um, p + g y+gB� y�5 pQpQ�� gg m c n gig W * A � A iJ r 0 x f r m a 3 #3 #3 #{ � 1 1 p in am ®® ivy J 1, 0 --1 wooilsong jamoqS OuIN-S-O&4-00 :5AVN 3113 C\j H3MOHS ";r noouisEinpONN loll If la IRE FO IN 0 --1 I_ 3tliduNi tlg734 SP N�Ltltl5 ABU : Y4' by�'.yd?i+*4k tld k'�x:A#$M CMn'Ma�rla t4 i:Ktl9d 31tl0 N9i9M15N #SeW`at PUi N2s<taaS�W, � SSMw 6 @tl�S& .3tVQ 311551 I 's —I M IL � s O: �u nik � r' r � s O: �u Hotel Development Proposal - Kamla Hotels 11 FINANCIAL BACKGROUND INFa , O a.- Kamla Hotels Inc., the proposer, is a holding company for its numerous hotel holdings. Kamla Hotels Inc. is a limited liability corporation consisting of Devang and Sharad Patel. AS such, we have provided personal financial statements for both individuals. be Kamla Hotels Inc. is a limited liability corporation with Devang Patel acting as general partner. c. See attached Exhibit 2, Personal Financial Statements. d. Business References: 1) Aaron Telford Coastal Valley Insurance Services, Inc. 2483 Sunrise Blvd, #B, Gold River, CA 95670 aaron @coastalvalley.com, (800)252 -0422 (p), (916)436 -0422 (f) 2) Niranjan Patel Niranjan D. Patel Law Offices 1800 Studebaker Rd, Suite 700, Cerritos, CA 90703 lawrewards @ndplaw.net, (562)467 =8952 (p), (562)467- 8953 (f) 3) Brendan Watters Boomerang Hotels 100 Bluegrass Commons Blvd, Suite 110, Hendersonville, TN 37075 Financial References: 1) Kimberley Thornberry Vice President, Senior Relationships Manager Banc of California 888 Disneyland Dr., Ste. 500, Anaheim, CA 92804 Kimberley .thornberry @bancofcaI.com, (714)864 -5009 (p), (877)885.4820 (f) 2) Vincent Wong First Vice President First Choice Bank 17785 Center Court Drive, Suite 750, Cerritos CA 90703 (562)345 -9092 (p), (562)926 -8737 (f) e. The financial changes that have occurred over the past two years for Kamla Hotels and its principals have been positive with a steady growth in annual revenue and asset value. f. Kamal Hotels is not in the Dunn and Bradstreet nor the Standard and Poor's Summary. As stated previously, Kamla Hotels is a limited liability corporation that is a holding company for the many hotels owned and managed by Kamla. Request for Proposal Hotel Development Proposal - Kamla Hotels equity to develop this project. d. Vincent Wong Kimberley Thornberry First Vice President VP, Senior Relationship Mgr. First Choice Bank Banc of California 17785 Center Court Drive, Suite 750 888 Disneyland Dr. Ste. 500 Cerritos, CA 90703 Anaheim, CA 92804 (562)345.9092 Tel (714)864.5009 Tel (562)926.8737 Fax (877)885.4820 Fax Kimberley .Thornberry @bancofcal.com e._ Please see the attached letter (Exhibit 6) from Vincent Wong from First Choice Bank. His contact information is provided above. f. Please see the attached Attachment E's. g. Kamla Hotels is not currently in any lawsuits or financial settlements that would impact our ability to undertake and complete this project. h. Kamla Hotels is not involved in any litigation or other disputes that could result in a financial settlement having a material adverse effect on our ability to execute this project. i. Neither Kamla Hotels, Devang Patel nor Sharad Patel have filed for bankruptcy or had projects foreclosed upon. Request for Proposal City of Downey Attn: Aldo Estrella Schindler Director of Community Development 11111 Brookshire Avenue Downey, CA 90241 Dear Mr. Schindler, Mr. Gilmore has the on behalf of the M I S �-- � W e „w 4 ¢p, xi k a. r City of Downey Attn: Aldo Estrella Schindler Director of Community Development 1 1 1 1 I Brookshire Avenue Downey, CA 90241 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verities only the i.dentity of the indiv�dual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. Place Notary Seal Above OPTIONAL Thot�_ gh this sH'Aion is opbonal, alts` information can detet altefation (-.)f rt'edo-ouo entor 1-jud0ent reattachment of tf7js far,,77 tO ar3 Wlilltend ed dncunneot Description of Attached Document -Title- o, Type of Doc�wnent: DOC.Urnenl� i-_)ate 114urr -" ber ,,f Pag-1 &gner'_-,O "Aher T-ha,' Nar;ed Above; Capacfty(ies) Clairned by Signer(s) 3 gner's NaMe: -'3igne, s Naoa e� N rinrtner Geoim,,i- -,'Worney TWSzee -4-ardian or -s _i' errvaLoa TRAOt-C; Other' Other Signer is Represiwjg Signer Is Represa!ilkq (02014 National No,lary Association a WWWAahonallotary arg - I -800-US NOTARY (I_800,_876 0327) hem 45907 Hotel Operation annual gross revenues for the last 5 years (if applicable); Approx $1,500,000.00 since ownership in 2012 annually. (Use additional sheets for other locations) The proposer has operated under its current name Since_ 2006 1 for period of 8 years and 9 months, and the Proposer (if applicable, ) formerly operated under the name: Indepedent Ml The Proposer has the Hotel Design, Development and /or Operating experience at the following locations: Project Name and Location: Springhill Suites by Marriott- Hesperia, CA Dates: April -2005 To: Present Project Name and Location: Red Roof Inn Onatrio International Airport (Use additional sheets for other locations) The proposer has operated under its current name since =2006 for a period of s years and 9 months, and the Proposer (if applicable, ) formerly operated under the name: Independent ATTACHMENT "B" Qualifications Statement Project Name and Location: American Inn- Downey, CA Dates: - April 1997 TO: Present Contact's Name: Dev Patel Phone number: 562 -712 -3211 E -mail address: Dpatel @kamlahotels.com (Use additional sheets for other locations) The proposer has operated under its current name since 2006 for a period of 8 years and _ 9 months, and the Proposer (if applicable,_)" formerly operated under the name: ATTACHMENT "B" w i (Use additional sheets for other locations) The proposer has operated under its current name since 2006 for a period of 8 years and 9 months, and the Proposer (if applicable, ) formerly operated under the name: Indepedent ATTACHMENT "B» W • The Proposer has the Hotel Design, Development and /or Operating experience at the following locations: Project Name and Location: Guesthouse Inn & Suites Pico Rivera, CA Dates: October, 2001 To: Present $550,000.00 annually Project Name and Location. Howard Johnson Inn & Suites- Pico Rivera, CA Dates: April, 2007 To: Present E -mail address: dpatel @kamlahotels.com Hotel Operation annual gross revenues for the last 5 years (if applicable): $750,000.00 annually (Use additional sheets for other locations) The proposer has operated under its current name since 2006 for a period of a years and 9 months, and the Proposer (if applicable, ) formerly operated under the name: Independent ATTACHMENT "B" AT The Proposer has the Hotel Design, Development and /or Operating experience at the following locations: E-mail address: dpatel@kamlahotels.com Hotel Operation annual gross revenues for the last 5 years (if applicable); $950,000.00 annually (Use additional sheets for other locations) The proposer has operated under its current name since 2006 for period of 8 years and 9 months, and the Proposer (if applicable, ) formerly operated under the name: Independent ATTACHMENT ACHMENT 66C" �r • • Fill in the following information exactly as it is to appear on the Agreement; if operating under a fictitious name, so indicate. Name of Firm: Kamla Hotels Inc and /or affiliate Business Purpose Develop SpringHill Suites By Marriott of 9066 Firestone Blvd. of Proposer: Principal Office Address: 12644 S. Lakewood Blvd. Suite 100 Downey, CA 90242 Telephone No 562- 712 -3211 Facsimile No 562- 231 -5988 E -mail Address: dpatel @kamiahotels.com Please check the box that describes your business entity and complete the applicable form below. Individual _Partnership Corporation - Joint Venture X Other (Explain) LLC to be formed for this venture. Limited Liability Business Association ATTACHMENT "C" Business Organization (continued) -M If your business is operating as a partnership, please provide the following information, Date of Organization: Please Read Below Type of Partnership: General ME -me Business Purpose of Partnership: Acquire Land and Develop a Hotel at 9066 Firestone Blvd, Downey, CA If so, when? 1990-Present under various entities and holding companies ***A new "special purpose entity" will be formed to acquire the land and carry the development forward for the proposed SpringHill Suites by Marriott should the RFP bid be accepted for our group. Attachment D SpringHill Suites Downey Projected Financials Addre5s- 17458 Colima Road, Rowland Heights, CA 91748 EZZMEM-1 As part of the screening process, the OtV may need to contact you about our banking with the understanding that the information provided will be kept confidential to the extent an M " i ! M PRELIMINARY COST BREAKDOWN PROJECT SPRINGHILL SUITES BY MARRIOTT LOCATION 9066 FIRESTONE BLVD DOWNEY, CA BUILDING AREA 89,000 SQFT SITE AREA 2.57 ACRES TOTAL SUITES 122 MARRIOTT SUITES TM First in Speed Service Solutions RE: Credit Reference for Mr. Devang Patel of Kamla Hotel Group and RFP Springhills Suites Hotel Development in Downey, CA. • Mr. Patel has been in discussion with FCB in regards to providing financing for the proposed Springhills Suites Hotel in Downey. This is the type of the property /transaction FCB would be interested in providing financing for. Given Mr. Patel's extensive experience in hospitality industry and his outstanding track record with FCB, and provided that all terms and conditions fall within FCB's`lending perimeters, FCB would offer serious consideration in providing financing the said project. Headquarters - 17785 Center Court Drive, Suite 750, Cerritos, CA 90703 - Tel: (562) 345 -9092 + Fax: (562)926 -8737 Cerritos Branch 12845 Towne Center Drive, Cerritos, CA 90703 - Tel: (844) 392 -2842 - Fax: (562) 381 -7I11 Alharnbra Branch ® 407 W. Valley Blvd., Unit 1, Alhambra, CA 91803 - Tel: (626) 300 -8987 -'Fax: (626)300 -8507 Rowland Heights ranch - 17458 E. Colima Road, Rowland heights, CA 91748 - Tel: (626)964- 3400® Fax: (626) 964- 8750 0 Anaheim Branch - 2401 E. Katella Avenue. Suite 125, Anaheim, CA 92806 Tel (714) 634-5119 - Fax: (714) 456 -9813 PERSONAL FINANCIAL STATEMENT Devang Patel & Family 1/31/2015 Assets Cash - checking accounts Cash - savings accounts Certificates of deposit Securities - stocks / bonds mutual funds Notes & contracts –receivable Life insurance (cash surrender value) Personal property (autos, jewelry, etc.) — -- - -------- Retirement Funds (eg. IRAs, 401k) Real estate (market value) Other assets (specify) Other assets (specify) Total Assets f Amount in Dollars $2,000,000 52,050,000 1 Liabilities Amount in Dollars Current Debt (Credit cards, Accounts) Notes payable (describe below) Taxes payable Real estate mortgages (describe) 25,110,000 Other liabilities (specify) Other liabilities (specify) Total Liabilities 25,110,000 Net Worth 28,940,000 Signature: Date: 01/31/2015 Financial Statement Sharad Patel & Family 2/1/2015 Assets Amount in Dollars Kash - checking accounts $ 750,000 Cash - savings accounts Certificates of deposit ,Securities - stocks / bonds mutual funds 50,000 ,Notes & contracts receivable 50,000 life insurance_-(d,ash surrender value) 60,000 Personal property (autos, - jewelry, em) 95,000 Retirement Funds (ag. IRAs, 401k) 160,000 Rea[ estate (market value) 32,300,000 Other assets ( specify) Other assets (specify) Total Assets 33,415,000 Liabilities Amount in Dollars Current Debt (Credit cards, Accounts) 15,000 Notes payable (describe below) �Taxes payable Real estate mortgages (describe) 5,130,000 Other liabilities (specify) y) CARLOANS 50,000 ,Other liabilities (speciry) Total Liabilities Net Worth 28,220,000 Signature. Date: 2 //j LL First in Speed I Service I Solutions RE: Credit Reference for Mr. Devang Patel ofKam|aHotel Group and SpringhiUs Suites Hotel Development in Downey, CA. Mr. Patel has been in discussion with FCB in regards to providing financing for the propmoedSpdnghUls Suites Hotel in Downey, This is the type of the property/transaction FCB would be interested in providing financing for. Given Mr. Pate|'s extensive experience in hospitality industry and his outstanding track record with FCB, and provided that all terms and conditions fall within FCB's lending perimeters, F[8 would offer serious consideration inproviding financing the said project. [] Headquarters `°]77O5 Center Court Drive, Suite 75O,Cerritos, CA QA7n3~ Tel: (562)q45-g0g? 50Z) U Cerritos Branch ° 13845 Towne Center Drive, Cerritos, CA QO7O3- Tel: (844)39Z'2042°Fa=�(5d2)38l~Tlll 0 Alhambra Branch °4O7W- Valley B\vd,Unit |, Alhambra, CA9}#03° Tel: (d%6)30O-0A87°Fax- (635)3U8^0507 O Rowland Heights Braocb° |7458B. Colima Road, Rowland Heights, CAgl748~ Tel: (62b)9h4-]4O0°Fmue(020)964~B75O 0 Anaheim Branch ~ 2401 E. f(o/cJ\a Avenue. Suite 125. Auabmiro. C/\ 93BO0°Tel: (714) 034-5ll9° Fax: (7l4)456^A8l3 TM First Choice Bank First in Speed I Service I Solutions Oil 00001 00 ACCOUNT: DOCUMENTS- EPIC DEED SERVICE, INC. ITF KABIR ONE LLC 315 S SAN GABRIEL BLVD # SAN GABRIEL CA 91776 1 PAGE: 1 1602366 01/30/2015 0 m 0 0 51-001-BUSINESS MONEY MARKET ACCOUNT 1602366 --------------------------------- ; ---------------------------- -------- MINIMUM BALANCE 1,500,622.61 LAST STATEMENT 12/31/14 1,500,622.61 AVG AVAILABLE BALANCE 1,500,622.61 1 CREDITS 740.03 AVERAGE BALANCE 1,500,622.61 DEBITS .00 THIS STATEMENT 01/30115 1,501,362.64 - - - - - - - - OTHER CREDITS - - - - - - - - - DESCRIPTION DATE AMOUNT INTEREST 01130 740.03 - - - - - - - - - - I N T E R E S T - - - - - - - - - - AVERAGE LEDGER BALANCE: 1,500,622.61 INTEREST EARNED: 740.03 INTEREST PAID THIS PERIOD: 740.03 DAYS IN PERIOD: 30 INTEREST PAID 2015: 740.03 ANNUAL PERCENTAGE YIELD EARNED: .60% INTEREST PAID 2014: 1,636.68 C 0 N T I N U E D Oil 00001 ot ACCOUNT: DOCUMENTS: 51-001-BUSINESS MONEY MARKET ACCOUNT 1602366 -- ----------------- ---------- - - - - - - - - - - - PAGE: 2 1602366 01/30/2015 0 - - - - - - - - DAILY BALANCE - - - - - - - - DATE ..........BALANCE DATE ........... BALANCE DATE. .... BALANCE 01/30 1,501,362.64 • -71 WA estm ns, lnsurance,'-- t - . . I 'Mu fly 4 IV MI'm" 1201 Elm Street, 4 3500, Dallas, Texas 75270. 214-959-9785 Member. FTNRA/ SlPC. From the Deak • FiARY LA4W-N05 OFP9 tFA Mr. and d family have requested a of their acroUnts and ie assem 'Veld atSWS Financial Service.5, Inc,, as of the cis f 01/09/2015. 55MEMEESEM $2145,02 7/ Accounts Xvx930Z,xxx7014, x-sx6-153, =A230 & =K389S $219,105 ,_r ' 31) ,or .11 Ur �Wag Should you need additional information or inquiries. pjease coaact their Financial Consuitallf, 11 Emm Sincerely, Rkry Lansing, CFP, CFA I �+ ©« \ \ �Mmmmm� Will I Ma ziott International, Inc. 1301 Dove Street, Suite 500 r r i of 1, Hotel Development Newport Beach, CA 92660 Scatt McAllister Nice President 450- 962 -1809 480- 907- 1191Fax December 15, 2014 Mr. Dev Patel Kamla Hotels 12644 S. Lakewood Blvd Suite 100 Downey, CA- 90242 Dear Mr. Patel, It was a great pleasure speaking with you 'about your interest in developing 'a Marriott branded hotel in Downey, CA. This letter is to express our interest in developing a SpringHill Suites in the Downey, CA market. As we discussed, Marriott International does not have any hotel representation in Downey and have been interested in developing a hotel on the site on Firestone Blvd. Marriott is interested in Kamla Hotels developing a SpringHill Suites in Downey should Kamla Hotels be successful at acquiring the site through the RFP process. Based on my knowledge of the Downey market and my meetings with several of the Downey City Officials, I would suggest developing a SpringHill Suites that would have somewhere between 115 -135 rooms based on site layout and other factors. As you know, the SpringHill Suites is doing very well as a brand. With a newly designed lobby experience, fitness facility, complimentary breakfast all make for great amenities at an all -suite hotel that would benefit both the business traveler as well as the leisure traveler. While the SpringHill Suites brand does not have a full service restaurant, it wouldn't be necessary based on the number of restaurants nearby, but you developing a bar would be another nice amenity for hotel guests. Please feel free to reach out with any questions or when you are ready to discuss the next steps. Kind regards, IfmF � E�� Scott McAllister Area Vice President Marriott Lodging Development cu CL o i cn i i f J l i 1 i l i i First in Speed I Service I Solutions To: To whom it may concern, RE: Credit Reference for Mr. Devang Patel ofKam|a Hotel Group 'and RF9Sphn'hUb Suites Hotel Development in Downey, CA. Tz whom b may concern, Mr. Patel has been in discussion with FCB in regards to providing financing for the proposed Springhills Suites Hotel in Downey, This is the type of the property/transaction FCB would be interested in providing financing for, Given W Patel's extensive experience in hospitality industry and his outstanding track record with FCB, and provided that all terms and conditions fall within FCB's lending perimeters, FCB would offer serious consideration in providing financing the said project. [] Headquarters " 17795 Center Court Drive, Suite 75O,/ Cerritos, CA 9O7O]~ Tel: (5b2) 345-gOg2" Fax: (562)928-Q737 O Cerritos Branch ° 12845 Towne Center Drivo, Ceodtoa, C/& 907O3~ Tel: (D44)392-2842~ Fax: (562)38l-7lll El AJbarubra Branch -4O7W. Valley Blvd`Unit l- Alhambra, CADl8O3" Tel: (62O)3O0-0D87~ Fax: (626)3O0'G5O7 [] Rowland Heights Branch ~l7458 E. Colima Road, Rowland Heights, C&Ql740~ Tel: (620)D64-34OO" Fax: (6%O)964-875O O Anaheim Branch "24OlB.KzunUa Avenue. Suite |%5. Anaheim, C/\92806" Tel: (7!4)834-5ll9° Fax: (7l4)450-PO|3 SPRINGHILL SUITES@ GFIN 4,5- Proto-Moded Design L, j,,l r-,l I I Building Length 298 feet Building Depth 65 feet Land 2.18 acres Parking 128 spaces Front Elevation r V t C a^^°m rn^^"^^ y —« .__ 50-Y�4. &" X 0. es }atrY ¢drov.a Hr (• y} +F i+ rsa &>K fl + Y• rPo n tn.n e� .Ro m x z F Site Plan J-c 14'- 6' min- dr. Q CJ E King with Shower CV r 11 Queen/Queen with 4'6"Tub 14'- 6" min. dr. `~vgniU Suites Criteria Facilities program Program (Prototype) King Shower 63% m 369 29,88 King Accessible 396 4 496 1.984 Queen/Queen5hower 14% 18 436 7,848 0ueem0oeen with 4'-G^Tub 1196 14 436 6.104 Queen/Queen with s'-o''Tub 6% o 496 3.968 Queen/QveenAccesdb|e 2% 3 496 1.488 Total Units lVO% 128 4'027 [orridor/BevatorLobby 7,551 7,551 rmio 2 zaz l'oss Elevators z 131 524 Elevator Machine Room ' 84 84 Linen 1 326 szo � Vending & Ice (Upper Floors) x sos 306 Guest Laundry 87 87 Total Guest Room Support/Circulation 10,734 Lobby/Lounge 2,058 The Market n1 Vending Area O Business Library 112 Meeting Room 356 Fitness Room wg Vestibule (Front & Rear) 132 Cart Storage 40 Circulation 673 Public Toilets 254 Indoor Pool 1'10 Total Public Space 5,344 SpringHill Suites by Marriott Registration Desk 229 Work Area 297 General Manager Office 171 Sales Manager Office zss Luggage Storage Room 61 Associate Break Room 190 AssocimeRestmom 47 Housekeeping Laundry 557 Food & Beverage Preparation Room zsO sngineehng/MaintenanceRoom 214 Mechanica|/8ectrica|xoom ^` 822 Janitor's Closet 28 Telephone Equipment/Video Room 213 Poo|equipmembStorage loe The Market Storage 71 Corridor & Roof Access 522 Total Back ofHouse 4'027 _ _� Total Guest Rooms 51,281 Total Guest Room 10J34 Total Public Space 5,344 Total Back nfHouse 4,027 Total Gross Building Area 71'386 Total Square Foot Per Room sse Data based an a 128-room prototype _ _� �i__ M Brand Posit�oninq: STYLE, SPACE, "LUE Gen 4.5 Prototype and Inspire DWcor The design of the lobby and guest suite has been enhanced, continuing to deliver the uQner-moderate tier. The Gen 4.5 N 'e and InsQire decor gresents an QPAU to ease new-build costs, increase operational efficiency and offer a design with a broad appeal across multiple markets. Key highlights • the prototype: MARRIOTT Marriott aspires to be the global hospitality leader that demonstrates how responsible hospitality management can be a positive foirce for the environment PRESPERVE and create economic opportunities around the world, Marriott International, Inc. - 10400 Fernwood Road, Bethesda, MID 20817 , MarriottDevelopment corn March 2012 02012 Marriott International, Inc GDP5 120143 (1901012 25 -0 109 906059_,1a Ill i7/lS RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER Sly TTLEMENTWITHTHE DEBTOR."Tlie provisions of this Section shall Survive the Close of Escrow, 680/012 1712�-0109 �- 2A" MUIW 1 1 �5 6 90605 SELLER'S INITIALS BUYER'S INITIALS 6801012225 -0109 9060791! a 11117,11 C SELLER'S INITIALS BUYER'S INITIALS 6801012225-0109 9060592, 1 a 11.1 P115 680/012225-OW 906059Z- I a I Ut7/15 Grant Deed in the Office of the Official Records of Los Angeles County, California, and delivering the recorded Property Grwit Deed to Seller, and causing the Seller Tille Policy to be issued to Seller. & Default by Buyer. 680/01 2225 -0109 9060.* 9 2. I a 1 II 7/[:5 -20- SELLER: The City of Downey 1 1 1 1 1 Brookshire Avenue Downey, CA 90241 Attn: City Manager Phone No.: (562) 904-7284 With Copy to Rutan& Tucker, LLP th 611 Anton Boulevard, 14 Floor Costa Mesa, CA 92626 Attn: Jeffrey T. Melching Phone No.: (714) 641- 5100 Roshni Lalu, Esq. 4 Park Plaza, Suite 530 Irvine, CA 92614 Escrow Holder: Security Land Escrow 10805 Paramount Blvd,. Suite A 680/0 12225)-0 M 9060:)92. 1 a If! M15 -21- Downey, CA 90241 Attil: Susan Robison Phone No- (5621) 862-2129 & Miscellaneous. &I No Modcations. No addition to or modification of any term or provision of this Agreement is effective unless in writing and signed by the Parties, C" 8.2 Construction of Agreenient.The provisions of this Agreement shall not be construed in favor of or against either Patty, but shall be construed as if both Pat-ties prepared this Agreement. 83 Readings.The Section headings of this Agreement are only for convenience and shall not be deetned to limit the subject of such Sections or to be considered in their construction. 8A Governing Law.The laws of the State of California shall govern this 690io 22-25,0109 9060592, la U17N 5 :II Survival.All covenants, agreements, representations, warranties and indemnities contained in this A-0 reernent shall survive the execution and delivery of this Agreement and the Close of Escrow and the delivery and recordation of all documents or instruments in connection therewith. 680/012225-0109 9060592. lai I i W15 -213- Saturday, Sunday or federal holiday, The timeto.s.- performance on any Performance Date shall be no later than 5:00 p.m., unless otherwise provided in this Agreement. 83 Incorporation of Exhibits.Except as intentionally omitted, all exhibits attached hereto and referred to herein are incorporated into the Agreement as though fully set forth herein. 8.14 en .In. the event of any legal action to enforce or interpret this Agreement, th.e sole and exclusive venue shall be the Superior Court of the County and the Parties hereby agree to and do hereby submit to the jurisdiction of such court. 8.15 Counterparts.This Agreenient may be executed in-counterparts, each of which shall be deemed an original, but all of which together shall be construed as one instrument, 8.16 Assignment,Except as provided below, Buyer may not assign its rights or I - obligations under this Agreement without the prior written consent of Seller, which consent may be withheld in the sole discretion of Seller. 680/0 12225-0109 9060:592. la ® I P 17/15 -24- NOVEMBER IIIIIIIIIII I Rutan& Tucker, LLP 6901012225 -0109 9060592, t a 11/17/ i 5 -25- DOWNEY HOSPITALITY, LLC, a California limited liability company I�y* ItS� Sbarad R Pod'Managing Mcniber By: Name: Its: PAGE TO SALEA J "Seller" Im r set City of Downey 7/1 6801012225 -0109 4060592.1 a 11117!15 -25- By: Its: By: Name: Its: "Buyer" EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY 68010127:25 -0! 09 9060M, � al U17 /t5 THAT PORTION OF BLOCK "Q"OF THE RANCHO SANTA GERTRUDES, IN THE CITY OF DOWNEY, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP OF HOFFMAN'S SURVEY THEREOF, RECORDED IN BOOK I PAGE 502 OF MISCELLANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. DESCRIBED AS FOLLOWS: 680/012225 M09 9060591— ia I ' ' 71Q 5 PROLONGATION OF THE SOUTHEASTERI.,,Y LINE OF THE LAND DESCRIBED IN SAID 210 OF OFFICIAL RECORDS OF SAID DEED RECORDED IN BOOK D-3650 PAGE COUNTY; THENCE ALONG SAID PROLONGATION AND LINE NORTH29 DEGREES 54 MINUTES 26 SECONDS EAST 46&82 MET TO THE POINT OF BEGINNING, EXCEPTING THEREFROM THE NORTHEASTERLY 215.00 FEET MEASURED ALONG THE NORTHWESTERLY LINE OF SAID LAND. Nt� THAT PORTION OF BLOCK OF THE RANCHO SANTA GERTRUDES, IN THE CITY OFDOWNEY, INTHE COUNTY OF LOS ANGELES, STATE, OF'CALIFORNIA, AS PER MAP OF HOFFMAN'S SURVEY THEREOF, RECORDED IN BOOK I PAGE 502 OF MISCELI,ANEOUS RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: 680/0122-25,0109 9060592 la . IQ7/15 IMLIIII [See following pages] L� 690,T)12_25 0J 09 9060592. ],a ( 1/17' 15 • 0 • Comrlhunity Development Department Attention: Director • Community Development RIFIRE=M Prepared By: Rob Gilmore Version: Original Date: February 20, 2015 City of Downey Community Development Department Attention: Aldo Schindler Director of Community Development 1111 Brookshire Avenue Downey, CA 90241 Re: Hotel Development Proposal 9066 Firestone Blvd., Downey, CA Dear Mr. Schindler, On behalf of Kamla Hotels, I am honored to provide our hotel development proposal for the site located at 9066 Firestone Blvd. in the City of Downey. It is not every day that residents have the opportunity to propose to develop and operate a hotel in the city in which they call home. Devang and Sharad Patel, of Kamla Hotels, embrace that opportunity with the hope of being selected the developer of choice. We propose to bring one of Marriott International's most exciting brands, SpringHill Suites, to this site. This upper - moderate, all- suites hotel delivers the space, and stylish, inspiring design that enriches the guests' travels at a great value. With over 300 SpringHill Suites hotels throughout the United States and Canada, over 58% of guests make reservations by taking full advantage of the globally recognized and honored Marriott Rewards reservation system. This proposed all -suite hotel will feature a 7,000 square foot roof top lounge offering 360 degree views of the City, a business center, over 3,000 square feet of meeting space, fitness center, indoor pool and spa and, complimentary hot breakfast. All these amenities, along with the architectural fenestrations unique to Downey, will provide a sense of place reflective of the City's vision in revitalizing Firestone Blvd. While targeting the "stylish, suite seeker", this hotel will be "green" built, meeting and exceeding industry standards for environmental sensitivity. "Local hiring" is a Patel policy which will excite up to 50 new employees. This is the way Devang and Sharad Patel approach all of the over 1,000 rooms under their award winning management. With over 25 years of experience in owning and operating hotels of the type proposed, they have the experience and financial capability to provide the City of Downey the kind of hotel of which it will be proud to be associated. We look forward to working through the process and collaborating with the City. Truly, Robert Gilmore Gilmore55919 @sbcgloba[.net Request for Proposal Hotel Development Proposal HOTELS KAIVILA HISTORY Locally owned and operated, Kamla Hotels has strictly been a hotel developer and operator for over 25 years. Currently owning and managing three hotels in the City of Downey, Kamla Hotels is the 2nd highest transient occupancy tax payer in the City. Our award winning management team lives and works in the City of Downey. We understand the needs of the City and the regional hospitality market, and are committed to meeting the needs of the residents, businesses and visitors. Currently we own and manage the American Inn, the Studio Inn & Suites, and the Regency Inn & Suites in Downey. In addition, we are an existing Marriott International franchisee with a SpringHill Suites Hotel in Hesperia. Currently our affiliate is constructing a Residence Inn and Courtyard by Marriott in Riverside County. We have a proven track record of exceptional leadership in the hospitality industry representing the top tier hotel brands in guest satisfaction and product quality: We have over 1,000 rooms under management and care in the Southern California region. Rest assured, Kamla Hotels meets and exceeds the minimum requirements of the Request for Proposal for the Development and Operation of a Hotel, and has the desire and ability to carry out all of the required elements of the proposed Hotel Project throughout the entire term of the Agreement. KEY FEATURES OF THE PROPOSAL SpringHill Suites Hotel by Marriott Upper Moderate /Select Service hotel 0 :Targeting the frequent business and leisure traveler utilizing the internationally acclaimed Marriott Rewards System 6; Four (4) story, 122-131 room all - suites hotel (pending final design) Unique Downey architectural and design features inside and out 7,000 square foot, roof -top lounge with 360 degree City -views • Over 3,000 square feet of meeting rooms and business center Fitness Center • Indoor pool and spa Request for Proposal Hotel Development Proposal - Kamla Hotels • Complimentary hot breakfast and high speed Internet access • Newly designed lobby, lounge, communal circle and, great room and buffet areas • Lobby Market • Estimated 20 month schedule from close of escrow to Grand Opening • Proposed Land Purchase Price: $2,000,000.00 • Locally owned and operated by the award winning Kamla Hotels management team • Kamla Hotels "Green" Built Program of sustainable strategies and methods to preserve water and energy, and to minimize the hotels carbon foot print, including: use of solar panels, biofiltration, SMART irrigation, in room energy management systems, LED lighting, low flow toilets, water saving shower heads and other features • Projected $16 million project cost • Budgeted $5, 000.00 per unit refurbishment cost in 5 -7 years • TOT revenue generation in the range of $370,000.00 - $450,000.00 annually • Local hiring policies for the estimated 50 new employees • Approximately $700,000.00 annually in employee salaries COMPETITIVE HIGHLIGHTS OF SPRINGHILL SUITES HOTELS All Suites Hotel • Typically 67% King Suites and 33% Queen /Queen Suites • Average suite is 400 square feet • Marriott Rewards Paid Room Nights: 58% • 312 SpringHill Suites throughout US and Canada • Integrated marketing campaign Marriott Rewards Direct Mail Promotion • In- flight and In- airport advertising to over 60 million travelers • Marriott digital and social media advertising, promotions and events • All -suite hotel benefits both the business and leisure traveler • Estimated Average Daily Rate (ADR) of $125.00 • Average length of stay of 2.3 days infusing additional shopping days and restaurant use • Target guest: male, mid -40's, college educated, $129,000.00 average income Request for Proposal Hotel Development Proposal Hotels ADDENDA 1 i FORM Please reference Attachment Y. for a signed original Addenda Acknowledgement Form. Request for Proposal Hotel Development Proposal - Kamla Hotels PROPOSER'S QUALIFICATIONS STATEMENT Kamla Hotels has been in operation for over 25 years. With over 1,000 rooms under management, Kamla has the experience, financial wherewithal and desire to execute its game plan to develop the proposed all- suites, SpringHill Suites Hotel by Marriott in Downey. An existing Marriott franchisee, we have attached a list of twelve (12) hotel properties, including the SpringHill Suites in Hesperia, which Kamla owns and operates. (See Attachment B.) Together these properties generate annual gross revenue of over $14 million. Kamla currently has two large projects under development with Marriott in Riverside County;a Residence Inn and a Courtyard. These projects are being delivered on time and under budget. Kamla Hotels is known for its delivery of projects on -time, whether a ground -up development project or an "acquire- and - remodel" project. All of our ground -up development projects have followed a development timeline as follows:_ a) 60 days to deliver conceptual drawings to the City b) 60 days from date of approval of the conceptual drawings by the City for delivery of construction documents c) Construction begins immediately upon issuance of building permits d) Approximately 90 days for on and off -site improvements, including utilities e) 12 months for shell and core, and interior construction completion Kamla is a top notch hospitality developer that has a proven track record of developing not only privately -held hotel projects, but has collaborated with city Redevelopment Agencies in the communities of Lynwood, South Gate, Pico Rivera and Hesperia. We have successfully turned a number of distressed hotels into successful and profitable hotels in those communities. All those projects were "time-of-the-essences" projects, and Kamla delivered as promised. Kamla Hotels is not only an existing Marriott franchisee, but has franchise relationships with national and international brands such as Intercontinental Hotel Group, Choice Hotels, Wyndham International, Red Roof Inns, C6 Hospitality and Hilton Worldwide. Kamla Hotels spoke with many of the brands listed above to determine what the best brand would be for the City's site. Our analysis was specific and pointed to pick just the right fit for the community's needs. In our professional opinion, the SpringHill Suites by Marriott is the best alternative on the market for quality, amenities and value to drive the highest occupancy rate, estimated daily rate and thus, the annual projected Transient Oriented Tax to the City of Downey. The attached letter from Scott McAllister, Area Vice President of Marriott Lodging Development, expresses Marriott's level of interest and their recommendation for a SpringHill Suites Hotel based on their expertise and a thorough analysis of the Downey hospitality market. Request for Proposal Hotel Development Proposal = Kamla Hotels Request for Proposal Hotel Development Pr••osal - Kamla Hote HOTEL i PLAN/FINANCING Kamla Hotels' development team for this project will be led by Devang and Sharad Patel. They have led the ground -up development of seven hotels, at this time. Preliminary drawings were provided by David G. Simons Jr. Architects of Temecula, CA. This group has worked for Kamla Hotels for many years in designing, programing and site planning many of its hotel projects. First Choice Bank located in Cerritos, CA has discussed and analyzed this proposed project and has expressed a serious interest in financing it. Currently, Kamla Hotels has five credit facilities with First Choice Bank with loan commitments in excess of $16 million. A majority of these loans were to provide financing for hospitality properties in which Devang Patel and his partners hold a significant amount of ownership interests. The remaining development team will be chosen through a deliberate bidding process selecting contractors, engineers and consultants with the depth of experience and expertise in executing a development plan of the magnitude and quality of the proposed SpringHill Suites Hotel Kamla Hotels worked closely with Marriott Lodging Development in analyzing the best brand for the community and considering a variety of site factors. 613 DEVELOPMENT SCHEDULE Preliminary Timeline and Schedule: Opening to close of Escrow 60 days Architecture, Engineering, Permitting & Financing 120 days Construction of on and off site improvement & hotel 420 days Set -up & Pre - opening (Marriott Implementation) 30 days Soft & Grand Opening 10 days Total Project Time 640 days Notable events within the development schedule will include'. Request for Proposal Hotel Development Proposal - Kamla Hotels 1. Ground Breaking Event with City Council and other local dignitaries 2. Model Guest room suites made available for viewing 3. Soft Opening 4. Grand Opening 6C PROPOSED II TY BUILD- Attached is preliminary cost breakdown of the proposed SpringHill Suites by Marriott to be built by Kamla Hotels. (Exhibit 1) The estimated total project cost is $15,034,270.00 The estimated cost per suite for this all -suite hotel is $123,000.00. We have budgeted $5,000.00 per suite for refurbishing in a 5 -7 year time frame. This hotel will prominently feature architectural features and designs, inside and out, representing Downey's proud heritage from the Apollo Space Program to the world's oldest McDonald's. We intend to feature the areas' artists by exhibiting their art throughout the hotel common areas. This will be "Downey's" hotel. Each financial statement reflects extensive ownership of hotels throughout Southern California. Sharad Patel, for instance, among the eight properties listed on his financial statement, has listed a Travelodge Hotel in Lynwood valued at $5 million that is secured by $950,000.00 note. The eight hotel properties listed for Sharad have a combined value of $32,300,000.00 with combined mortgages of $5,130,000.00. Devang Patel has provided a list of eight hotel properties with a combined value of $52,050,000.00 with mortgages of $25,110,000.00. The Eden Roc Anaheim Disney Resort listed on his financial statement has a market value of $12,500,000.00, with a mortgage of $4,725,000.00. Devang Patel and family's personal financial statement provided states total assets of $54,050,000.00; total liabilities of $25,110,000.00; and, a net worth of $28,940,000.00. Sharad Patel and family have provided a financial statement stating total assets of $33,415,000.00; total liabilities of $5,195,000.00; and, a net worth of $28,220,000.00; Request for Proposal Hotel Development Proposal- Kamla Hotels First Choice Bank has provided Kamla Hotels with a letter of interest to finance this project. Vincent Wong, First Vice President of First Choice Bank states he has been in discussions with Kamla and "would offer serious consideration in providing financing for said project." (Exhibit 2) We anticipate engaging our financing institution of choice immediately after being selected as the successful bidder. We anticipate a due diligence period of approximately 60 days and close of escrow contingent upon obtaining appraisals of the fair market value and purchase price. We will purchase the property by cash, and continue to provide personal funding as we proceed through the architectural, engineering, design and permitting phases, and into the construction phase of the project. The financing process will run in the range of 90 -120 days parallel with the entitlement and permitting process. Request for Proposal Hotel Development Proposal - Kamla Hotels 7 FACILITY DESIGN AND QUALITY OF IMPROVEMENTS We are providing an extensive architectural package along with this proposal. The full color photos provide a color palate based on a typical SpringHill Suites hotel. We have engaged our architect to provide a site specific design and layout. The attachments we have included are as follows (Exhibit 3): 1) The overall design of the hotel facility from a street front view, an aerial view of the site layout, a proposed first floor including the lobby layout and meeting space. Also included is a conceptual for the proposed roof top lounge. What these renderings do not reflect is the uniquely distinct Downey historical and "heritage" architectural features that we will include in the final design inside and out. 2) We have attached an extensive design package fora prototypical SpringHill Suites. Extracted from that package for this tab is a page reflecting the look and layout of the typical King room and shower, and the Queen /Queen optional layouts. These nicely exemplify the advantage of an all -suite hotel in amenity, size and comfort. These rooms are 420 square feet in size. 3) Throughout the prototypical hotel presentation attached, you will see a number of photographic representations of the lobby area. As stated above, we have provided an architectural drawing of the first floor reflecting the lobby, or "great room ", as guest enter the hotel which includes the lounge, communal circle, the buffet area and network zone. We have also singled out pages for this tab reflecting the look and feel of the prototypical lobby area. 4) For the meeting areas, please refer to the first floor layout which represents over 3,000 square feet of meeting space and business center. The main meeting room has the flexibility to be split into smaller rooms, as needed. There is a private Board Room across the hall from the proposed larger meeting room, as well. 5) Please refer to the attached prototypical SpringHill Suites hotel package for the detail of the items requested in the sub section. This hotel provides a uniquely stylish aesthetic and spacious suites at an affordable price. SpringHill Suites have become a dominant player in the upper- moderate all suites hotel market because of its design features and space. 6) As provided in the aerial site plan, this hotel will completely integrate the Dunkin Donuts as a hotel amenity. Also, provided is the integration of the existing surface parking lots and future parking structures with a fluid circulation plan. Request for Proposal • - - •• sr• HOTEL OPERATING a. Kamla Hotels owns, operates and manages all of its hotels. The proposed SpringHill Suites is no different. In fact, the Kamla advantage is that the management team is homegrown and Downey based. No out of town management team that will take days to respond to issues and problems. Kamla commits to provide the same award winning management it currently provides to its other Downey hotels. Marriott Lodging Development, through Scott McAllister, Area Vice President, has provided us with a Letter of Interest expressing their interest in developing a SpringHill Suites hotel at the Firestone location should Kamla Hotels be the successful bidder. (Exhibit 4) b Kamla Hotels Inc. and /or an affiliate intends to develop, operate and manage this subject hotel Kamla reserves the right to assign this hotel to new special purpose entity or LLC for this venture. In any event, Devang and Sharad Patel will act as general partners and will operate and manage this hotel. We understand that assignment of the Agreement to another entity following the date of the Certificate of Occupancy is subject to the approval by the City of Downey, and will be strictly reviewed and may not be approved by the City. We would like to reiterate that Kamla Hotels has every intention of retaining ownership and management of this hotel. Any assignment will be an "internal" assignment and "in- name" only. Attached is an "Anticipated Associate Chart-Post Opening" depicting the management and personnel structure of the proposed hotel. (Exhibit 5) There will be a general manager and an assistant general manager located on site. This hotel will employ in the range of 40 -50 employees as indicated on the Associate Chart. This is the personnel level demanded to provide the quality of service promised by Kamla Hotels and SpringHill Suites by Marriott. From its front desk staff to the servers for the complimentary hot breakfast to the servers at the Roof Top Lounge, service will be the trademark of this all - suites hotel. Wages will be of a significant, livable level at this hotel. Kamla Hotels has a history of attracting talented people and providing them the opportunity to grow with the organization. The SpringHill Suites Hotel will continue that tradition. Front desk, housekeeping, breakfast attendants and waiters will receive in the range of $10:00- 14.00 per hour. Engineering and night auditors will receive in the range of$14.00- $18.00 per hour. The front desk manager, housekeeping and engineering manager will have a salary range of $28,000.00- $32,000.00 annually. Our sales manager and, food and beverage manager will have salaries starting in the $25,000.00 - $40,000.00 range, not including commissions. Our Assistant Manager will have a salary in the $35,000.00 $40,000.000 range, and our General Manager will have a salary in the $50,000.00 - $70,000.000, not including commissions. Request for Proposal Hotel Development Proposal- Kamla Hotels In total, Kamla Hotels' employees will be receiving in the range of $700,000.00 annually in wages. This will be another $700,000.00 going into the local economy as we have a local hiring policy. c. As stated previously, Kamla Hotels has been strictly in the business of developing and operating hotels for over 25 years. It has over 1,000 hotel rooms under its award winning management. It currently operates three hotels in the City of Downey, and is the 2nd highest transient occupancy tax payer in the City, second to the Embassy Suites. Every one of Kamla Hotels' properties is located on busy commercial thoroughfares. From its hotel near Disneyland to its hotel in the wine country of Solvang, Kamla has built its reputation on serving the business traveler as well as the leisure traveler. Its hotels, as listed on the personal financial statements, include the romantic Wine Valley Inn & Cottages inSolvang and strategically located Eden Roc Anaheim Disney Resort, as well as the Residence Inn and Courtyard by Marriott under development in Riverside by its affiliate. All are either the size and /or quality of the proposed SpringHill Suites. Request for Proposal Hotel Development Proposal - Kamla Hotels ENTERPRISE 9 DISADVANTAGED BUSINESS Hotels Kamla i certified DBE, is does not wish to receive information on being certified as such. Request for Proposal Hotel Development Proposal Karnla Hotels We are providing Projected Financials for the proposed SpringHill Suites Hotel as Attachment D. This includes our projected revenue and expenses for the first five (5) years of the hotel operation. As an existing Marriott franchisee and an operator of hotels for the past 25 years, we are comfortable in presenting this pro - forma. In summary, we estimate the average daily room rate to start at $125 in year 1 and will grow to an estimated $137 per room by years. We conservatively estimate occupancy to begin at 75% in year 1 and grow to 82% by year 5. We estimate to generate $375,722 in transient oriented tax in year 1, up to $450,225 in year 5. This hotel will generate additional tax sources to the City. The effect of the additional tax generation will be significant in the City's ability maintain and expand its level of services. With an estimated average length of stay at a SpringHill Suites Hotel of 2.3 days, there will be a significant multiplier effect through the additional shopping, restaurant and recreational use of its guests. This will be amplified by the SpringHill Suites target guest of a male in his mid- 40's, college- educated, taking 26 business trips a year with an average income of $129,000.00 per year. Remember, 58% of SpringHill Suites guests come through the Marriott Rewards program, -a clear Marriott advantage. Request for Proposal