Pasadena : Hotel’s Fees in Dispute

A dispute between the city and owners of the Huntington Hotel over $420,000 in development impact fees will be negotiated by the Board of Directors.

The Gemtel Corp., which is remodeling the main building at the 83-year-old hotel, maintains that the company owes only $128,627 in development impact fees, instead of the $548,357 assessed by the city for new construction.

Gemtel officials said the hotel is entitled to an exemption granted under the city’s impact fee ordinance for reconstruction of buildings damaged by natural catastrophes. The main building at the Huntington Hotel was never built to withstand earthquakes and was seriously weakened during the 1987 Whittier Earthquake, Gemtel officials said. Thus the building had to be destroyed for public safety, they argued.

The board directed Gemtel to pay $1.2 million in other fees owed the city and hold the disputed $420,000 in an escrow account until the issue is resolved.