Chuck Slothower//July 26, 2016//
Beaverton is going back to square one for plans to build a business-class hotel on its Westgate property.
Earlier this year, city officials were in negotiation with O’Reilly Hospitality Management of Springfield, Missouri, on a development agreement for what was to be a five-story hotel with 147 rooms. After a six-month memorandum of understanding and study period, O’Reilly is no longer involved with the project.
O’Reilly and the city parted on good terms, said Cheryl Twete, Beaverton’s community development director.
“O’Reilly Hospitality Management was a really good developer to work with,” she said.
The Missouri-based hotel developer did not return messages seeking comment.
The study period enabled city officials to learn more about the hotel market and how a hotel would be best situated on the property, Twete said. Beaverton is still keen to move forward with a hotel, she added.
“I’m more convinced now than before that a hotel is the right use for this site to serve the community and provide a business-class hotel in the heart of Beaverton,” Twete said.
Now, the city of Beaverton has issued a renewed request for qualifications for the hotel project. The application deadline is 2 p.m. on Aug. 26.
The RFQ calls for developing an approximately 150-room business-class hotel and “destination” restaurant on the southwest side of Rose Biggi Avenue. The development would be part of The Round, an area highlighted by restaurant and residential developments, city offices, a parking garage and easy access to the MAX blue light-rail line.
A selection committee will review hotel proposals, with interviews likely to follow in early September. Then the committee will recommend a development team to the City Council.
An exclusive negotiation agreement (ENA) with a developer could be in place by October, said Tyler Ryerson, senior development project manager for Beaverton.
“We expect that ENA to be a six-month (agreement), with potential for extending it if necessary,” Ryerson said. “But we want to work our way forward to a disposition and development agreement.”
The long-desired hotel is a key piece of the plan for The Round, which city officials hope will attract visitors.
The vision calls for a mixed-use project from Rembold Properties, a performing arts center and a separate business meeting and events center on the ground floor of an existing parking garage.
Rembold and the city have executed a development agreement for construction of a two-building, 32,000-square-foot complex at The Round. The complex will hold 230 apartments, including 15 affordable units and three live-work units.
The east building will be six stories and feature a rooftop deck, while the west building will be five stories.
The project also involves 1,500 square feet of office space on Cedar Hills Boulevard frontage and 7,000 square feet of retail space along Rose Biggi Avenue.
Kali Bader, a Rembold vice president, said the project will succeed because of its central location, proximity to the MAX stop, inclusion in an established and burgeoning neighborhood and the need for additional rental housing in Beaverton.
Rembold has selected LCG Pence Construction to serve as the project’s general contractor.
The middle of the site will involve an extension of Crescent Street. It will be built as narrowly as possible to preserve a streetscape feel, while still maintaining fire and utilities access.
“They’ve really spent a lot of time studying areas in the Pearl (District) to get that right feel,” Ryerson said.