El Monte : Hotel Negotiations Begin

The city Redevelopment Agency on Tuesday entered exclusive negotiations with the parent company of the Days Inn motel chain for a $15-million, 200-room hotel.

Under the agreement, California Days Inc. has two months to formulate its proposal for a seven-story hotel, including conceptual architectural plans and an analysis of possible financing. At the end of that time, the agency and the company may enter into a final development agreement, pending financial or other project modifications.

The proposed hotel, which would be near the intersection of Santa Anita Avenue and the San Bernardino Freeway on about 3.5 acres, would include meeting and banquet facilities. A restaurant is also under consideration.

The agency has completed the land acquisition, which will involve relocating the First Lutheran Church to an undetermined site in the northern part of the city, City Administrator Gregory D. Korduner said.

This is the second overture the city has made for a major hotel. Last year, negotiations for a luxury hotel fell through amid financing problems linked to federal funding reductions, Korduner said.