April 15–The Grove Hotel is officially back in the city’s cross hairs, and five developers are ready to move forward with projects to redevelop the long-vacant hotel.
And according to a public records request, unlikely previous development attempts, the developers largely aren’t asking the Portland Development Commission to chip in on the project.
The PDC, which bought the vacant hotel in 2010 for $3.7 million from Home Forward, solicited project proposals on February 6. The urban renewal agency received 11 formal proposals during five-week bidding window, and is considering five suitors to buy and redevelop The Grove Hotel.
The Oregonian obtained the names and specific project proposals of the five finalists through a public records request this week.
PDC received renewed interest in The Grove project about a year after developer David Gold and his investors withdrew plans for an Asian-themed hostel.
The vacant three-story city-owned hotel faces West Burnside Street between Northwest Fourth and Fifth Avenues. Right 2 Dream Too, the homeless community at the base of the Chinatown Gate, sits just across Northwest Fourth Avenue from the hotel. Gold said the homeless group contributed to the demise of his project.
But now the interest is strong, PDC spokesman Shawn Uhlman said. Eleven proposals indicate that The Grove is “a tremendous opportunity site.”
“This is a property that for a number of years has been viewed as a catalytic opportunity,” Uhlman said. “It’s seen as something that is absolutely essential to any redevelopment that happens in Old Town Chinatown.”
Here’s a look at the five finalists (in no particular order).
1. The Icelandic Hostel option
The Concept: An Icelandic-inspired hostel with 188 beds, and Nordic restaurant/beer hall, multiple ground-floor retail options
The Backers: KEX (an Icelandic hostel backed by a former professional soccer player, a restauranteur and a developer who lost his fortune in Iceland’s financial crisis), A&R Development (the Ace Hotel in Portland), ChefStable (the same restaurant group behind Lardo, Ox and Roe).
Target Customer: Young modern travelers who “want nice beds and great linen and a dynamic environment where they can hang out and talk.”
Money: The group is “open to whatever financial terms which minimize dependence on PDC. Offered to purchase the building outright or work through financing plan.
Thoughts on neighborhood: It’s gritty, and they like “the challenge of going into a difficult part of town and helping to revitalize it by giving it a heart.”
(Read the proposal: Some information redacted for proprietary reasons)
2. The Seattle Hostel option
The Concept: A hostel featuring Portland-based art, with ground-floor retail including a coffee shop, laundromat, bike rental, etc.
The Backers: Lee Kindell and Gibraltar Seattle Investments (known for City Hostel Seattle)
Target Customer: Similar crowd, wants to make The Grove “one of the premiere international travelers hostels in the USA.”
Money: Requesting a $2.5 million PDC loan, but can also close using all cash.
Thoughts on neighborhood: A challenge, especially “with monitoring the interaction with homeless and potential conflict with public and paying guests.” But the group welcomes “the challenge of a united neighborhood.”
(Read the proposal: Some information redacted for proprietary reasons)
3. The hostel with an “authentic Portland experience”
The Concept: A hostel, based on Basecamp Hotels, a boutique in Lake Tahoe with four small ground-floor retail spaces, one full restaurant and a “speakeasy.” Total 190 beds.
The Backers: Naito Development (a Portland company), and Eagle Point Hotel Partners (a New York-based hotel developer)
Target Customer: The boutique hotel would lure “lifestyle” travelers and locals alike. Project also includes a proposed “a rooftop lounge.”
Money: $630,000 purchase price for land, “all cash.”
Thoughts on neighborhood: Burnside frontage has “amazing potential.” But, cites Right 2 Dream Too as “an illegal semi-permanent homeless encampment, that the developers “assume” will be relocated prior to completion.
(Read the proposal: Some information redacted for proprietary reasons)
4. The “creative workspace” option
The Concept: Several ground-floor retail spaces, but upper floors will be leasable space for smaller businesses. Goal is to make the site a “creative office gateway” to Chinatown.
The Backers: Urban Development Partners NW, Beam Development, Works Partnership Architecture (all local)
Target Customer: The young creatives looking for a small space to start, emphasis on “high growth” businesses. Beam, which has creative space at nearby Burnside Bridge, could connect the two, arguing The Grove “complements development across the river.”
Money: $630,000 purchase price for land, “all cash.”
Thoughts on neighborhood: Biggest challenge is “concentration of homelessness and social service operators” making it tough for retail to succeed. Big positives are the historic buildings and access to transit.
(Read the proposal: Some information redacted for proprietary reasons)
5. The market-rate apartments option
The Concept: Ground-floor micro-retail stores (11 of them). Eighteen, 400-square-foot market rate apartments, two 550-square-foot apartments.
The Backers: Aaron Jones and Don Mutal (both Portland developers)
Target Customer: Young people who want to live in the neighborhood, “traditionally under-served, younger smaller” local businesses for retail.
Money: No PDC funds are requested, but asking price is $450,000 for land
Thoughts on neighborhood: Don’t really touch on the neighborhood much. Said they want to pursue LEED Gold status, and to create “a vibrant sustainable and inspiring mixed use building.”
(Read the proposal: Some information redacted for proprietary reasons)
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So when will all of this actually happen?
Most of the options include an expected completion of spring 2016.
Uhlman said the evaluation committee looking at the five finalists looking at the five finalists will likely make a decision by the end of April on which project to recommend. The committee includes PDC staff, local architects and neighborhood stakeholders.
Their recommended project would likely go to PDC’s executive director Patrick Quinton, before going before the PDC board for formal approval.
— Andrew Theen
