THOUSAND OAKS : Builder Wants Out of Hotel Contract

Citing financing problems, a Los Angeles developer has asked Thousand Oaks for permission to renegotiate a contract to build a 232-suite hotel at the former Jungleland site, officials said Tuesday.

Under a pact reached with the city three years ago, Lowe Development Corp. agreed to build the hotel as part of a $65-million, 166,500-square-foot commercial complex.

Construction of the first phase of the development was scheduled to begin this summer and be completed in mid-1993.

Instead, the developer has proposed eliminating the hotel from the first phase, which would then be left with 72,500 square feet of offices, stores and a movie theater, said Ed Johnduff, city administrative services manager.

Lowe’s development is to be built on city-owned land next to Thousand Oaks’ $63.8-million civic arts plaza, now under construction.

Johnduff said the city has been aware of Lowe’s inability to obtain financing since late last year, when Lowe first announced its intention to delay hotel construction.

Lowe Vice President Ted McGonagle said a Japanese investor, Sadane Corp., pulled out of the hotel project and requested the return of $17.7 million it had invested as a financial partner.

The hotel represents about $27 million of the development, McGonagle said.

Councilman Alex Fiore, who served on the council committee that negotiated the agreement with Lowe, said the city should give Lowe more time to obtain financing.

“It’s tough for these people to get financing,” Fiore said in an interview. “When we did this thing a couple of years ago, the economy was great. . . . Since that time, the whole economy has gone to hell in a hand basket.”

If the city agrees to Lowe’s revised project, the developer will submit an application to build the first phase next month, McGonagle said. If it is approved, Lowe can break ground this summer, McGonagle said.