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A hotel proposed for Stanford Shopping Center would have 120 rooms — smaller than most nearby hotels — according to a staff report for the Palo Alto City Council’s Dec. 11 study session on the expansion of the center.
Shopping center owner Simon Property Group, Inc. has proposed the hotel and 240,000 additional square feet of retail.
The hotel will offer conference and meeting-room facilities and would serve the university, Stanford Medical Center and the shopping center, according to a city staff report released late Thursday afternoon.
The expansion addresses the 2005 Mayor’s Retail Attraction Committee recommendation for adding $3 million in annual revenues to address infrastructure improvements.
The staff report calculates that adding 17 percent more square feet of retail to the 50-year-old mall would bring in close to $2 million per year in sales-tax revenues “as retail space matures.” Initially, it is expected to produce about $1.5 million per year.
Staff also estimated that the hotel, which will have about one-third the rooms of the Sheraton and 40 fewer rooms than the Stanford Park Hotel, could bring in up to $800,000 through the city’s transient-occupancy tax.
Palo Alto hotels charge an average of $131 per night, according to the staff report, with higher-end hotels charging substantially more.
Additionally, the project could generate $7 million in one-time fees to the city and a possible $2.2 million more if the council approves a traffic-impact fee ordinance in early 2007.
Stanford Shopping Center last expanded in 1997, by 80,000 square feet. The addition of 240,000 square feet of retail and a hotel would require changing a development agreement between Simon and the city.
On Monday night, the council will hear a presentation from Simon on the expansion proposal during a 6 p.m. study session at City Hall, 250 Hamilton Ave.
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