10/08/1973 Meeting - Laserfiche WebLink

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_.... - - --- .-- --- -- ,--- .-. ..'- -.'- .-- David Hoffman, Planning Commission member, inquired about the hotel parking provided under this proposal. Mr. Hunt estimated 178 spaces in the hotel parking space which -~ would provide room for a high degree of landscaping. He added that there is poten- . tial of structure parking there with other development in the future, although it is not planned at this time. ) : Councilman McDonald said it was his understanding the Agency was offered $1.00 per square foot for the hotel block contingent upon construction of the parking facility. Mr. Hunt said the land was never offered at any price; no price was set. He de- tailed the method of selecting the developer of the hotel site, Harold pollin of Portland. Considerable time was taken to develop the scheme presented because 'Mr. pollin was adamant about not locating on the half-block area and a great deal of discussion took place trying to solve the transit and parking problems and to assure : him that something would go on that half block. Mr. Hunt said the block east of Willamette was considered for offices because it was felt that was about the last . space adjacent to the mall area available for office use, and Mr. pollin wanted 'assurance the office block would be developed or option to develop it himself. He also wanted solid development of the half-block with retail space as the activity center. Parking need for the hotel would be fulfilled by the space provided on the hotel block, but additional parking was considered necessary for other tenants in I the area. All in all, it was considered important not to isolate the hotel develop- ment from the center. Vernon Hicks, 640 Willamette, and Archie Weinstein, 666 Willamette, inquired about ,} e land prices of the area under discussion. Mr. Hunt said Mr. pollin's offer for the hotel site was $150,000. He added that he would have to consult the records with regard to price for the block between 7th and 8th, willamette and Olive, since purchase included land, buildings, fixtures, etc. ~. -- . - .-. ;Mr. Weinstein asked if his letter addressed to the Mayor had been made available , to Council members. Mayor Anderson said it was not pertinent to this discussion ,since this was one of concept, not negotiation. For the Council's information, 'however, he said Mr. Weinstein had made a tentative offer of $250,000 for the property between 6th and 7th, Willamette and Olive. Mr. Weinstein said he also J offered to develop that block for retail sales. Mr. Hunt said he had previously . responded to Mr. Weinstein's offer that the renewal plan provided for retail services , in that block incidental to other permitted uses, not as a primary use. He said this , was discussed wi th Mr. Weinstein as well as several other reasons why his offer ~could not be aaoepted. Under procedures established for considering the purchase of property, the pending pollin proposal must be accepted or rejected before any other offer can be made for the property. He said two appraisals were obtained but it I must be kept in mind that there have been no new hotels built in the downtown area for a good many years because of land prices. They have been built on expressway locations which carry farmland prices. The decision to be made is whether the e Agency and the Council desire a hotel in the proposed location and whether it is considered important to the downtown and long-range impact on moving ahead with the total redevelopment of that area. He thought the increased interest cost should also be kept in mind; it is expected to go to 6%, and when considering a $9.5 million loan, moving ahead on the project is important when it is recognized that completion of the project even one month sooner will result in a saving of more than $50,000. He said the total impact on the project should be considered, not, just the price of the land itself. James Bernhard, Planning Commission member, asked whether the parking area south of 8th was permanent. Mr. Hunt answered that 'it was because sales of adjacent properties ,were made with that commitment. It would be left as a lot until the impact of transit ;on parking needs is determined. I Councilman Murray expressed his pleasure and said he was impressed with the plan for !a major hotel development downtown rather than along an expressway. ,planning commlssicm'Meiribei'AlanMaxwell asked wh'ether expansion of the County " . parking facility was considered. Mr. Hunt said it was but its construction would :not permit additional floors. The cost to make addition of floors possible would ;be prohibitive. It would also be very difficult to arrange access to upper decks. . Maurie Jacobs asked if there were any estimates of the total cost of the hotel :development. Mr. Hunt replied that the architect's preliminary estimate was $3.5 million. That is for the one hotel block and does not include the office plock east of Willamette. If the Agency should decide to give an option for de- :velopment of the office block, then negotiations would be necessary to determine a development time schedule, land price, and specific plans. l ~O4 10/8/73 - 10