Downtown Livermore Hotel Likely Canceled

The expectation of eventually building the “Wine Country Hotel at the Bankhead” seems to have come unraveled. The Independent published a story about it, and we investigated. The phone numbers for Presidio are disconnected, no responses to email, behind in their state filings, and the agent for service process resigned (no one to contact for legal matters). Their representative Rikesh Patel, who oversaw the development negotiations and was the face of the project, hasn’t worked there since 2019 and no replacement has been identified. All of this considered, the company does not appear to functionally exist in California anymore.

The unfortunate breakdown was ultimately hard to avoid. We believe the location was the main problem, since it was never going to be able to accommodate adequate parking for the guests, as well as several other challenges. Ultimately, it was as infeasible as we suspected it would be since it was conceived in 2016.

There is a group of concerned residents that is proposing a new location they believe can allow a downtown hotel to be a success. Their website at livermorecommunitycoalitionspeaks.com explains their example in more detail. You can reach out to Safia Hasan Livermore.community.coalition@gmail.com with questions.

We hope City officials can be inspired to fulfill one of the major priorities expressed by the residents during the original outreach.

History of the Downtown Livermore Hotel Planning

In 2016, Lennar Multifamily Communities (now Quarterra) originally was poised to develop a massive 260 unit apartment complex. The residents pushed back, and elected a new Council that year with candidates who pledged to do something different. The new Council focused on a smaller housing plan and other aspects including the Presidio hotel planning.

DateEventSignificance
July 2016City signs exclusive negotiating rights agreement with PresidioFormal beginning of current Presidio project
2017Downtown public planning process. Community surveyed.Rankings: 1 parking, 2 community character, 3 open space, 5 hotel, 7 hotel location, 10 (last) housing. 80% favor west side of S. Livermore hotel placement
Jan. 2018Council approves plan against the advice of residents and CBGHotel placed on the east side of S. Livermore despite the challenges
Feb. 2018Hotel Term Sheet approvedFormal deal with Presidio advances
Sept. 2018DDA + design approvalEast side hotel formally entitled – continued opposition to location
2019Referendum campaignProject becomes subject to voter challenge
Mar. 3, 2020Measure P passesVoters affirm downtown development agreement, 3 story hotel – parking on site
October 26, 2020Council increases height to 4 storiesFirst override of Measure P approved project
2020–21COVID/delaysProject economics deteriorate
Jan. 2022City loans $2MM for purchase of offsite parking around the corner and down the street.New shell company created, buys Railroad Ave property for guest parking.
May–June 2022Revised designLarger 133-room version
June 13 2022Council eliminates underground parkingSecond override of Measure P approved project
2022City projects May 2024 constructionFirst major post-restructuring schedule
2024No constructionSchedule missed
Spring 2025Another projected construction dateAlso missed
2026City now projects 2027 start; company Web page is empty, no way to contact companyStill technically approved; completion date unknown

Entitlement changes over the years

The chart below focuses on a few relevant milestones that have taken place as the project and land ownership changed hands.

DateEventSignificance
July 27, 2016Exclusive Negotiating Rights Agreement (ENRA)City entered into an agreement with PresidioCo Holdings LLC
January 23, 2017ENRA extensionCouncil extended the negotiating agreement.
May 22, 2017ENRA extensionCouncil extended the negotiating agreement.
November 13, 2017ENRA extension until 2/28/2018Council extended the negotiating agreement.
February 26, 2018Hotel Term SheetTerm sheet established with PresidioCo Holdings LLC, Disposition and Development Agreement (DDA).
September 5, 2018Formation of project LLC2205 Railroad Avenue LLC created, subsidiary of PresidioCo
September 10, 2018DDA and design approvalDDA with 2205 Railroad Avenue LLC, sale of City-owned parcels
December 1, 2018Assignment of agreement rightsPresidioCo Holdings LLC assigned its rights, title, and interest in the DDA to PresidioCo Bay Area LLC.
January 10, 2022Parking site loan granted$1,923,750 loan by City to 2205 Railroad Avenue LLC
January 24, 20222080 Railroad Avenue LLC createdShell company to acquire/hold parking site separately
October 21, 2022Hotel site changes handsHotel site now owned by 2205 Railroad Avenue LLC under PresidioCo Bay Area LLC
before 2026Property rights changeHotel site now owned by 2205 Railroad Avenue LLC
before 2026Property rights changeParking site now owned by 2080 Railroad Avenue LLC
June 30, 2026Late property tax2205 LLC 7 months late paying tax on hotel site. Reason unknown.
October 2026Property tax delinquent$144,494.27 is owed for parking site to date. 2080 LLC paid little if any tax since acquiring.