Council OKs Switch at Radisson

The Manhattan Beach City Council has unanimously approved a plan that will allow a new company to take over management of the Radisson Plaza Hotel & Golf Course.

The council’s vote Tuesday, which was necessary because the city holds the ground lease on the hotel property, clears the way for Kentucky Hospitality Employer Inc. to sublease the business from Horst Osterkamp and his company, US Hotel Properties.

In October, Osterkamp was ordered by a judge to pay restitution of $175,000 after pleading no contest to charges that he deducted thousands of dollars in taxes from employees’ paychecks but failed to pass the money on to the state. He has made partial restitution and has until April 23, 1990, to pay the remainder. Earlier, Osterkamp pleaded no contest to a misdemeanor charge that he failed to pay an 8 1/2% bed tax to the city.

Shearson California Radisson Plaza Partners, which is headed by the investment firm Shearson Lehman Hutton, had sought city permission for the management change. Shearson bought the hotel from US Hotel Properties in 1987, and then leased it to Osterkamp to manage.