Strand and Pier Hotel project developer Bolour and Associates has pulled the plug, at least for now, on its 155,000 square-foot development in downtown Hermosa Beach that has raised concerns from residents due to the scope of the project.
Mark Bolour, CEO of Bolour and Associates, wrote in a letter to Hermosa Beach Community Development Director Ken Robertson, earlier this month, that the company was placing on hold until further notice the application for the hotel project on The Strand between 13th Street and Pier Plaza.
The three-story mixed use development was to feature 100 hotel rooms, two-level subterranean parking with 178 parking spaces, as well as nearly 22,500 square feet of retail, restaurant and public spaces.
Balour wrote the developer needed time to reevaluate the project to see if there was a way forward, citing rising construction costs, excessive parking requirements from the city and the lengthy EIR process as reasons the project was no longer financially viable.
“Furthermore, the delays this project has suffered, has further resulted in severe deal fatigue from our investors forcing us to reevaluate our goals for this property,” said Balour in the letter.
At Tuesday's Hermosa Beach City Council meeting, City manager Suja Lowenthal said a lengthy EIR process is not unusual for a complex project in such a prominent location.
“We share our disappointment that the project is on hold," said Lowenthal at the meeting, adding she hoped the delay would give Balour time to respond to parking and other requirements.
"As a city we periodically reevaluate our requirements for existing and proposed projects to ensure that they are inline with the community's current and future needs,” said Lowenthal.
Discussion on what was going to replace the iconic Mermaid restaurant and bar dates back to June 2013.
Bolour Associates, Inc. and Provenance Hotels purchased the land in May of 2013 for $19.5 million under the name of Strand and Pier Holding Company, LLC, according to Diana Albergate, who sold the property through the real estate firm CBRE.
According to CBRE, the site includes four parcels totaling 25,392 square feet, which along with the Mermaid, included the Poop Deck and Good Stuff facing the beach, and at the time, Cantina Real, Pier Surf and Tiki Mon Creamery and Cafe on the Pier Plaza side.
Residents have voiced concern over the size of the project and its parking implications since the Strand and Pier project was announced.
After the draft EIR was released in August of 2018, the first public hearing was held in special Planning Commission meeting last October, where truck traffic, noise and parking during a potential 19 month construction were some key issues discussed.