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Bob Naito is preparing to bring a completely new look to the Grove Hotel at the corner of Northwest Fourth Avenue and Burnside Street 鈥� and the neighborhood itself 鈥� in a couple of years.

At present, the former hotel, built in 1907, is derelict. Homeless people sleep in the doorways 鈥� overflow from the Right 2 Dream Too homeless camp across the street.

Naito said he is hopeful the city will find a new location for R2DToo in time for his company, Naito Development, to start construction around October on the property at 401-499 W. Burnside Street.

The city last year pledged money to help the homeless camp relocate. In April, City Commissioner Amanda Fritz announced that the city is working on a plan to buy from the Oregon Department of Transportation a half-acre plot to house the homeless camp. The land, about 9,000 square feet, is in the Central Eastside Industrial District near the new Tilikum Crossing.

Naito said he hasn’t closely followed developments between the city and R2DToo, but he’s keeping a positive attitude.

鈥淲e’re not going to open for 18 months, so I have to assume that relocation will be completed by then,鈥� he said.

If the camp moves, the lot could be used as a staging area for construction, Naito said. He said his company asked the city for the right of first refusal for future purchase of the privately-owned R2DToo lot, but was refused by the Portland Development Commission. But Naito said he’ll be first in line if and when bidding on the lot begins.

鈥淚 would love to be able to stage there,鈥� he said. 鈥淥therwise, it’s closing both sidewalks and on-street parking (during construction), which is kind of a challenge.鈥�

Negotiations to secure the land for the homeless camp are continuing, said Josh Alpert, Mayor Charlie Hales‘ director of strategic initiatives. He said a few more weeks of work remain on the second phase of an environmental review of the proposed site. In the meantime, the city is talking with potential neighbors of the site as well as meeting with R2DToo representatives. If all goes well, he said, a purchase agreement for the property could come before the City Council in about a month.

Alpert said he couldn’t speak for R2DToo, but noted that its representatives have been in constant communication with the city.

鈥淭hey’ve seen the site many times, and I think there’s a good chance they’ll be agreeable,鈥� he said.

Shawn Uhlman, spokesman for the PDC, which is headquartered in Old Town Chinatown, said the rejuvenated hotel will be a welcome addition to the neighborhood that is experiencing a revival.

鈥淭hat location, by old Chinatown gate, is truly the gateway to our neighborhood,鈥� he said. 鈥淓verything this project represents and how they’ve gone about it is really exciting.鈥�

The Grove Hotel has languished since the PDC bought it in 2010 for $3.7 million. Previously, developers backed out of a bid to revitalize the building because they lost financing and failed to lure commercial tenants to the gritty neighborhood.

Following a competition held by the PDC in May 2014, Naito Development and two project partners 鈥� New York-based Eagle Point Hotel Partners and San Francisco-based Filament Hospitality 鈥� were chosen to redevelop the property. The group agreed to purchase the building for $630,000.

Naito and his company are planning to invest about $30 million in the project, which calls for refurbishing the existing building and adding a nine-story boutique hotel. No public money will be used to revitalize the property, he noted.

Plans now call for the new hotel being incorporated with the existing building. Retail shops, restaurants and bars will occupy the ground floor.

Naito said the Grove will be competitive with other high-end boutique hotels in the city.

鈥淚t will be pretty sophisticated for Portland,鈥� he said. 鈥淚t will feel like an international hotel, and we’re shooting for a 3.5-star rating.鈥�

Staying at the Grove won’t be like staying at big-box hotels, he said.

鈥淲e’re geared toward people who prefer not to stay in those hotels but want a Portland experience,鈥� he said. 鈥淭he big chains are cranking out their own versions of boutique hotels, but I don’t know how authentic they can make them.鈥�

Preserving authenticity is very important to Naito, and he’s currently waiting for final design approval from the city’s Historic Landmarks Commission.

鈥淲e got our design advice request and are now working on the application based on the landmarks commission comments,鈥� he said. 鈥淭here’s a myriad of details we need to get into the actual application, and we’re trying to get it in at the end of July or August.鈥�

Naito said he’s not worried about attracting retail to the location and said Ingrid Summerfield of Filament Hospitality has years of experience in boutique hotels. She has opened other refurbished hotels that have turned neighborhoods around, and Naito believes the Grove will transform the entrance to Chinatown 鈥� the neighborhood where he grew up.

鈥淭he hotel will have a 24-hour caf茅 on the corner of Fourth and Burnside, with a specialty restaurant open in the evening adjacent to the caf茅, all on the first floor,鈥� he said. 鈥淥n the ninth level, we’ll have an outdoor deck and bar and I hope in the summertime we can open up the doors and have spectacular views.鈥�