Hotelier, Japanese Partner to Renovate Historic El Cortez
Backed by Japanese financiers, San Diego hotelier Grosvenor Industries announced Thursday that it plans to renovate the historic El Cortez Hotel and use it as a centerpiece for a $250-million residential and commercial project.
Once one of the best-known hotels on the West Coast, the 63-year-old El Cortez has been in a state of disrepair for more than 10 years, a decaying building atop a hill at Ash Street and 7th Avenue.
But Grosvenor said it intends to make the vacant, 16-story El Cortez a world-class hotel again and surround the landmark with four mixed-use towers on the 4-block, 4.8-acre parcel anchored by the hotel.
By teaming with the Minami Group--a Tokyo conglomerate and a worldwide hotelier that purchased 75% of the targeted parcel from Grosvenor for an undisclosed amount--Grosvenor plans to build a project that will feature 362 residential units, about 500 hotel rooms and 600,000 square feet of office and retail space, restaurants and entertainment facilities.
The Minami Group will provide 75% of project’s financing, and the balance will be covered by Grosvenor Industries, J. Mark Grosvenor, the company’s chief executive officer, the said. Grosvenor will also be responsible for developing the entire site, which is bounded by 7th and 9th avenues and Ash and Cedar streets.
“We intend to restore the El Cortez to its 1930s grandeur,” said Grosvenor, alluding to a time when the hotel’s famous 14th-floor Starlight Room offered patrons dining and dancing, and breathtaking views of San Diego Bay.
“In order to make this dream a reality, we brought in Minami Group, a worldwide hotel owner,” Grosvenor said. “The El Cortez Hotel has tremendous significance in this city. Its restoration will be great for San Diego, Grosvenor Industries and the Minami Group.”
Councilman Bob Filner, who represents the downtown area, said: “In general, I welcome this kind of broad development for the Cortez Hill area. It’s great when somebody comes forward and is not asking for public subsidies and tries to complement our (redevelopment) efforts.
“But, having said that, I need to see how this fits into our downtown development plans. I look forward to reviewing the details, and I think we all welcome the chance to restore the grandeur of the El Cortez.”
The project’s developers have already applied for building permits to begin renovation on the hotel and expect to receive such documents in six to eight weeks, said Jim Tanner of Tanner Leddy Maytum Stacy Architects, the San Francisco-based firm hired by Grosvenor to oversee exterior restoration.
The developers are trying to get the El Cortez placed on the National Register of Historic Places. By rehabilitating the hotel according to restoration standards set by the secretary of the interior, the developers can get a 20% investment tax credit.
According to Tanner, restoration of the El Cortez could begin in March and be completed in mid-1991.
The renovated hotel would offer rooms at $135 a night and would be equipped with an advanced “high-rise life-safety system” that would include a seismic system--concrete reinforcement for earthquake protection--sprinklers and smoke alarms.
The rest of the ambitious mixed-use project is expected to start in about a year and take 6 to 10 years to complete.
In November, the City Council adopted an emergency ordinance that allows the council to review new development projects in the downtown area. The ordinance, which has been extended until Nov. 1, 1990, was passed on request from the Centre City Planning Committee, a panel charged by the City Council with developing a master plan for the downtown area.
To Ensure Adherence
The ordinance was adopted to ensure that projects adhere to the goals and development strategies being developed by the Centre City planners, said Marianne Munsell, a senior city planner responsible for reviewing downtown development projects.
“Getting residential is the highest priority in the future development of downtown,” said Mark Wardlaw, a senior city planner. “We’re taking a more aggressive approach and want 54,000 people living in downtown within the next 20 years.”
City planners intend to draw such residential projects by establishing “a mixed use/residential emphasis area,” Wardlaw said.
Projects targeted for such an area, from 6th to 9th avenues and from Beech to Date streets, must be “at least 80% residential . . . the other 20% can be used for commercial purposes,” Wardlaw said.
Douglas H. Austin, president of the Austin Hansen Group, a San Diego-based design firm that is creating the master plan for the Cortez Hill project, said the developers plan to follow the city’s 80-20 guidelines.
Favorable Review
City planners favorably viewed Grosvenor’s plans to build residential units but declined to comment on the entire project because they had not yet seen detailed plans.
Austin said the developers’ plans will also meet Federal Aviation Administration height guidelines.
Such concerns come into play, Austin said, because the project, which is near the descent path of aircraft landing at Lindbergh Field, will feature a new 26-story hotel next to the El Cortez that will have an outdoor pool, cafe, conference and retail facilities, and underground parking.
The Cortez Hill master plan calls for 362 residential units to be built in a combination of two 24-story condominium towers, two 9-story condominium complexes and the top nine floors of another 24-story mixed-used tower, Austin said.
The parcel also includes the El Cortez Convention Center, which is being considered by the county as one of two potential downtown sites for court expansion. If selected, the center, used occasionally for professional boxing, will be refurbished to accommodate nine civil courtrooms, the developers said. If the courts go elsewhere, the site will be used for commercial purposes.
Founded in 1976, Grosvenor Industries has built three hotels, including the Grosvenor Inn and shopping center complex on Sports Arena Boulevard.
The Minami group was established in 1948 as the Minami Radio Co. After developing into one of the leading consumer electronics and appliances company in Japan, Minami diversified its operations, which now include 11 hotels, a real estate division, and sports and recreational facilities, with assets estimated at $1 billion.
