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A controversial proposal for a 23-story mixed-use building won tentative approval from the Portland Design Commission on Thursday despite opposition from Pearl District neighbors.

Commissioners voted 6-0 (Chairwoman Julie Livingston recused herself) to approve the design by Otak Inc. They will hold a final vote on Jan. 16 to adopt findings on the project.

The Hyatt Place and Allison Residences project would bring 160 hotel rooms and 113 residential units to a quarter-block site at Northwest 12th Avenue and Flanders Street. The building would replace a surface parking lot.

The 197,118-square-foot project is a joint venture of Seattle multifamily developer聽Vibrant Cities聽and hotelier聽The Sunray Companies聽of Madison, Mississippi. The project was valued at $66 million by the city’s聽Bureau of Development Services.

Plans were scrutinized by the Design Commission in two previous advice meetings and two review hearings, most recently in November.

Pearl District residents have objected to the project for months, lodging concerns about the planned height, mass and density for the small footprint. At 250 feet, it would be by far the tallest building in the south Pearl District under higher limits established by the Central City 2035 Plan.

Commissioners, city staffers and residents have also expressed concerns that traffic from the hotel and residential development would conflict with plans for the 鈥� a future path between the waterfront and Northwest Portland that would pass next to the building.

Commissioners did not directly address the largest issues. They said the building’s height and mass were within the zoning rules, giving the design panel little leeway, and potential traffic conflicts were an issue for the Portland Bureau of Transportation to resolve.

鈥淭he context issues 鈥� height and massing 鈥� are not something we can deal with anyway,鈥� Commissioner Don Vallaster said.

The design has improved over time, Commissioner Zari Santner said.

鈥淭hey have really done a great job of making the building far more coherent than it first was when it came to us,鈥� she said.

Most recently, Otak incorporated warmer colors into the exterior palette and raised water fountains at the entrance. After objections from neighbors, the valet zone was moved from Flanders Street to 12th Avenue.

The Pearl District Neighborhood Association registered opposition to the project, as did the Pearl Neighbors for Integrity in Design 鈥� a private group that is distinct from the city-sanctioned association.

The neighborhood association, in a letter, objected to design elements such as metal cladding and the 鈥渘ear-blank wall鈥� appearance of the east facade.

Bateman Seidel’s Carrie Richter, a land-use attorney for PNID, attempted to speak to the commission on Thursday. Commissioners declined to hear her testimony, saying the record was closed.

Patricia Cliff, president of PNID, said the building would bring intense use to the intersection, with valet parking and two loading docks competing with traffic from two neighboring residential buildings and the planned bikeway.

鈥淚t is not a user-friendly building, and it could be potentially dangerous for pedestrians, drivers and bicyclists,鈥� she said.

Also on Thursday:

No vote yet on hotel project’s design

The Design Commission tackled review for the Proper Hotel, another Pearl District project at Northwest 12th Avenue and Irving Street.

Commissioners identified some issues with a vertical column, and a lack of a water feature. However, they were largely complimentary of the design for a nine-story building with approximately 170,000 square feet.

Past projects have met design guidelines for a water feature reflecting Tanner Creek with everything from poetry to sound. Commissioner Jessica Molinar said future projects should include water features that incorporate actual water.

鈥淚t’s not a deal-breaker this time, but it will be a deal-breaker for me in the future,鈥� she said. 鈥淧lease do not come back with another project that does not include an actual water feature.鈥�

The project is being designed by ZGF Architects for Proper Hospitality, a Santa Monica, California-based company with hotels in California and Texas.

Commissioners did not vote whether to approve the project; the hearing is set to continue on Jan. 23.