By The Los Altos City Council's decision last week to go with a boutique hotel obviously was a decision that did not suit everyone. But just plain old common sense says it was the most appropriate action.

Naturally, those interested in a theater-condominium mix for the city-owned property at Main and First streets went home disappointed. We have maintained all along that while we support a theater somewhere downtown, the 3-story condo/theater project proposed for this small site was too large, too dense with too much traffic. There was nothing reassuring about a preliminary consultant report that traffic would not be a problem. For a theater to succeed, there was only one scenario ahead for the intersection of Main and First streets: gridlock from 5-8 p.m. every night.

One could argue the city was premature in approving any development since the city has leases on the property with the consignment store and dry cleaners running through 2006. Others pointed out the city was putting the cart before the horse by requesting development proposals without first querying residents on what kind of development would best fit the site.

At last week’s meeting, after lengthy presentations from the public and minimal discussion by the council, Mayor King Lear surprised everyone with a motion to proceed with the proposal by Roxy Rapp for a hotel. Councilman Lou Becker amended the motion to limit the hotel to two stories and to provide 75 spaces of parking for the public. The revised motion then passed 3-2, to the amazement of most in the audience.

To proceed, the city still has the matter of the current leases on the property. We believe the hotel developer should purchase the land outright and as part of the package accept dealing with leases, saving the city money and potential headaches. The smaller profile building proposed does not require major variances of existing city code.

The benefits are multiple. The hotel with its transient occupancy tax revenue promises a continuous source of funds for the city to provide more services to its residents, services residents wanted but did not fund two years ago under Measure I.

The two new hotels being built along the El Camino Corridor do promise additional revenues to Los Altos. The developer of the approved downtown hotel, Roxy Rapp, and his hotel management partner, Norm Rosenblat, who owns the Garden Court Hotel in downtown Palo Alto, envision plenty of business as the only hotel in downtown Los Altos - even at $275 a night - providing even more revenue.

The downtown merchants benefit because hotel customers are coming and going throughout the day, not all at once as expected in the theater proposal.

These customers also are inclined to stroll downtown streets, frequenting restaurants and buying from shops. This is something the El Camino hotels just can’t offer.

From a business, traffic mitigation and tax revenue standpoint, the boutique hotel makes the most sense at First and Main. We’re glad the council saw it that way.

At the same time, we also endorse the council’s plan to establish a task force to oversee a long-term general plan for all of downtown, including finding a suitable location for a movie theater. The momentum of support for a theater should not be allowed to fade away.