Crews could break ground soon on a major development that will bring hundreds of apartments along with speculative commercial space to Lake Oswego.

Plans for the Mercantile Village project call for 207 apartment units and approximately 50,000 square feet of commercial space near the intersection of Southwest Boones Ferry Road and Kruse Way – two highly trafficked arterial roads. The 6.3-acre site will have four buildings and an adjoining parking structure.

The project team has applied for building permits, but they have not yet been issued, Lake Oswego Planning Director Scot Siegel stated in an email.

CenterCal Properties and Trammell Crow Co. are developing the project. SERA Architects has designed it, and Deacon Corp. is serving as general contractor.

Trammell Crow Senior Vice President Damin Tarlow declined to comment last week.

Building exteriors will mostly consist of stucco and wood siding, with vinyl windows in residential units and storefront glazing on ground-floor retail areas, according to public bid information. The buildings are subject to a 45-foot height limit.

The project will require crews to remove 43 trees and 51 additional “invasive” trees, according to Lake Oswego documents.

Neighbors who testified during the planning process last year decried reductions to a riparian zone buffer. Members of the Lake Oswego Development Review Commission also voiced concerns that the development would worsen traffic on Kruse Way and Boones Ferry Road. Nevertheless, the commission approved the project with a 4-1 vote on Sept. 12, according to minutes.

Buildings will be constructed at 3975, 4015 and 4095 Mercantile Drive, and a vacant lot at the southwest corner of Mercantile Drive and Hallmark Drive.

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A long-awaited hotel project is continuing to advance, with a public hearing before the Beaverton Planning Commission scheduled for Wednesday.

Commissioners will consider a request for design review for the proposed five-story, 121-room hotel on the Westgate property near Beaverton City Hall, at the southwest corner of the intersection of Southwest Rose Biggi Avenue and Crescent Street. The project’s designer is Arris Studio Architects.

The developer, Canterbury Hotel Group, previously told the city it hopes to ink an agreement with Hyatt to use the Hyatt House brand. The hotel will be managed by InterMountain Management.

The Beaverton City Council in December 2017 approved a with Canterbury. The city, which bought the property in 2005 for $4.9 million, gave it to Canterbury for no charge.

Design and construction are estimated to cost $23.5 million. Deacon Corp. will serve as general contractor.

According to the development agreement, the hotel will be a “five-story, high-quality, upscale lodging facility of approximately 120 rooms.” Amenities will include a “spacious lobby, lobby bar, fitness facility, business center, sundry shop, guest laundry facilities, boardroom, and an outdoor terrace with a swimming pool.”

A 3,000-square-foot restaurant space is planned on the ground floor, but a tenant has not been announced yet.

The city has been trying to develop the Westgate property, formerly home of the Westgate Theatre, for several years now as part of the Creekside District Master Plan. A 2015 development agreement with Rembold Properties to construct a two-building, 230-unit mixed-use development, a new hotel and a possible arts center on the property fizzled when Rembold backed out of the hotel portion in 2016. This forced the city to issue a second RFQ. Rembold, however, went on to develop the mixed-use project, The Rise Central; construction began in summer 2017 and is expected to finish this winter.

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After years of false starts and setbacks, Beaverton may finally get the downtown hotel that city officials have long sought to attract.

The Beaverton City Council has approved a development agreement with Portland developer Canterbury Hotel Group to build a five-story, 120-room hotel on the Westgate property near City Hall.

Beaverton is heavily subsidizing the deal. The city will hand over the property to Canterbury, even though the city paid $4.9 million for it in 2005. Beaverton also agreed to waive $150,000 in development fees.

Tyler Ryerson, Beaverton’s senior development project manager, defended the agreement, saying providing the property for free is necessary to get the hotel built.

“For what we’re requiring for the development, they need assistance,” he said. “There’s a (financial) gap there.”

A residual land value appraisal put the parcel’s worth at $0, Ryerson said.

The council approved the development agreement by a 4-1 vote on Dec. 12.

“The city is really carrying the burden of the financing,” said Councilor Betty Bode, who cast the sole dissenting vote.

The project is part of what Beaverton officials hope will be a wave of development downtown. Rembold Properties‘ The Rise Central – a mixed-use development featuring 230 apartments – is being built on a neighboring parcel.

“One of the processes that we’ve been going through is to figure out how downtown Beaverton is going to go and redevelop,” Ryerson said. “It’s been pretty difficult to get redevelopment to get started and we haven’t really had much before these last couple of years.”

Mayor Denny Doyle described the hotel project as a “dynamite shot in the arm” for downtown Beaverton.

“It’s just overwhelmingly cool to see this actually, most likely, almost positively going to happen,” he said.

Design and construction of the hotel are estimated to cost $23.5 million. Once operational, the hotel is projected to generate annual property tax revenues of $275,000, and $300,000 in lodgers’ tax, according to city estimates.

The hotel will be managed by InterMountain Management. Deacon Corp. will serve as general contractor. Construction is projected to begin in October 2018.

Canterbury is pursuing an agreement with Hyatt House to use the brand, city officials said.

Canterbury will also seek a $500,000 transit-oriented development grant from Metro, Ryerson said. The hotel parcel is close to MAX light-rail service.

Led by CEO Arvind Patel, Canterbury has at least nine hotels in Oregon, including five near Portland International Airport. The company did not respond to a message seeking comment.

Beaverton officials are eager to attract a local chef to open a high-end restaurant in the hotel. Bode criticized the deal because a restaurant tenant is not in place.

“If this is going to be such a hot deal, we should have a restaurateur who wants to participate,” she said.

Restaurant tenants often don’t want to commit until a building is closer to completion, Ryerson said.

The development agreement caps a long journey for Beaverton. City officials have sought to attract a hotel since a study found a need for more hotel rooms. In 2016, the city entered into negotiations with O’Reilly Hospitality Management of Springfield, Missouri, to develop a hotel on the parcel at The Round. O’Reilly opted not to move forward with the project after a six-month study period, prompting the city of Beaverton to again issue a request for qualifications.

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A new mixed-use development in the Hollywood neighborhood is going up on a long-vacant lot at Northeast Halsey Street and 43^rd Avenue. ��The six-story Laurel 42, designed by LRS Architects, will have a total of 100 residential units on five floors over ground-floor retail and parking space.

Deacon Development is developing the project for ownership consortium Hollywood Station LLC, which includes Deacon Corp. CEO Steve Deacon. The owners acquired the half-acre parcel in 2009 along with two adjacent buildings – a three-story commercial building anchored by a 24 Hour Fitness gym, and a four-story parking garage. Office and medical office buildings were considered by the developers, but they ultimately settled on mixed-use residential due in part to the site’s proximity to a MAX station and a Trader Joe’s store across the street.

Deacon will serve as the contractor on the project, which consists of one floor of slab-on-grade concrete and five floors of wood framing. Residential units will include studio, one- and two-bedroom floor plans. A club room on the building’s sixth floor will have indoor and outdoor space with a fire pit, barbecue, and kitchen. The building’s cladding will consist of brick and undulating metal panels. A total of 51 parking spaces for residents will be provided using a car lift system manufactured by Harding Steel of Warrenton, Virginia. Around 130 bicycle parking spaces will be provided, as will parking for the building’s commercial spaces.

Construction crews installed geopiers last week and are preparing to begin foundation work. The building is expected to open in October 2018.

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Renovation projects are often full of surprises. The full renovation of Hotel Eastlund, a 4-star, 168-room boutique hotel in the heart of the Portland’s Lloyd District, was no exception.

Originally built in the 1960s, the hotel’s floors and load-bearing walls were laced with tensioning cables. Deconstruction was painfully slow at times as ground-penetrating radar and x-ray machines were on-site through most of the project to insure those cables were not damaged and that structural integrity of the building was maintained.

What had originally been planned as a selective demolition turned into a full gutting of the building’s interior. All plumbing and electrical features were replaced and new low-voltage communication lines were installed.

Electric controls were consolidated into a 22-foot vault that originally was intended to be placed outside. However, restrictions due to the nearby light-rail tracks and other problems caused it to be engineered to go underground, pushed back into the building. Seismic upgrades were made in the basement and the hotel’s restaurant and cafe were moved to the rooftop.

The $22 million project was further pressured by a very tight time line. Grand Ventures Hotel, the owner, wanted the project finished in time for the beginning of the busy season that starts with Portland’s Rose parade in late spring. From the start of demolition, Deacon Corp. often had crews working double shifts and extra attention paid to tracking material orders to bring them in on time.�� The result was a completion date of May 2015, just nine months from start to finish.

Project Team + Stats

Location: Portland, Oregon

Cost: $22 million

Start date: September 2014

Completion date: May 2015

Owner/developer: Grand Ventures Hotel LLC

Architect: Holst Architecture

Engineer: MKE Consulting Engineers

General contractor: Deacon Corp.

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