Port of Everett wants hotels built as part of waterfront redevelopment

EVERETT — The Port of Everett is looking for a developer to build a mid-market hotel as it moves ahead with its ambitious plan to redevelop a large swath of waterfront.

The project, Waterfront Place Central, would turn mostly vacant industrial land into a mix of public parks, boutique shops, and upscale apartments and condos. The port plans to partner with several private developers to spread risk and cost. The port plans to spend about $33 million on roads, utilities and other public services. It expects private investors to put in about $340 million.

Port officials say the project will reinvigorate the waterfront and make it a destination with a lively mix of fun activities, good food and open space. Visitors will need a place to stay, so the plan’s first phase includes a mid-priced hotel with 100 to 120 rooms. The last phase includes a second hotel, envisioned as a smaller boutique operation.

“We are working hard to promote the waterfront as a destination,” said Terrie Battuello, business development director for the tax-supported agency.

Port officials have contacted about 100 hotel developers. The port also asked any interested company to submit qualifications for the work by early April. Based on the response, staff members will come up with a short list of finalists before picking one.

Battuello said the site is ideal for a hotel brand such as Hilton Garden Inn, Aloft or SpringHill Suites by Marriott.

Work likely will not start on the hotel until late 2017 or early 2018, Battuello said.

A market analyst’s study found that the port’s new hotel will not dilute the market, Battuello said. To some degree, “it will compete for business travelers” with existing hotels, but it’s main draw will be destination travelers.

“Every hotel relies on business travelers to keep up their mid-week occupancy rates,” she said.

The hotel will come into a market that recently has expanded. Four hotels opened in Snohomish County in 2014, and two more — one in downtown Everett and in Lynnwood — are expected to open this year.

Occupancy rates were basically flat last year, and many local hotels expect slightly less demand this year, said Amy Spain, head of the Snohomish County Tourism Bureau.

Demand for rooms likely will come back after that, though, she said.

The port’s planned hotel will benefit from being near things to do and places to eat, she said. “There aren’t a lot of hotels in the county that have really walkable locations,” where visitors can get to a restaurant on foot.

Waterfront Place Central’s first phase is the part closest to West Marine Drive, an area port officials have dubbed Fisherman’s Harbor. The plans include 204 residential units, several restaurants and shops, a splash park and other open spaces. It will be alongside the moorage for Everett’s commercial fishing fleet.

Port officials have been in talks for several months with potential housing developers for Fisherman’s Harbor. Work could start by the end of the year, with buildings going up in 2017.

They had hoped to start work as soon as late last year, but “there were a couple things that we felt we didn’t have the best information on,” Battuello said.

So, the port paused to further study the cost of building on a site created by landfill and develop a parking strategy. With that work finished, they have resumed talks with developers, she said.

On the other side of Everett, the port has reached a tentative sales agreement for another big part of its Riverside Business Park. The Port Commission approved selling nearly 16 acres for $4.7 million to KW Projects, a partnership between Kiernan Companies, a developer based in Coronado, Colorado, and West Partners, a San Diego-based investment group. The two companies have worked together since 2010 developing single-tenant properties as long-term investments.

KW Projects told the port that it plans to build distribution center supporting about 100 jobs on the site, Battuello said.

Kiernan Companies declined to comment until after the sale is closed and permits are filed with the city. The sale could close as early as July, according to the port.

Earlier this year, the port agreed to sell nearly 10 acres of the Riverside site to Panattoni Development for $2.85 million.

That leaves about 11 acres of the former mill site up for sale.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Talk to us

More in Herald Business Journal

Bill McSherry, vice president of government operations for Boeing Commercial Airplanes, walks back to his seat, Tuesday, Feb. 25, 2020, after testifying before the House Finance Committee at the Capitol in Olympia, Wash. The committee was hearing testimony on a bill introduced at Boeing's request to suspend the aerospace giant's preferential business and occupation tax rate in Washington state unless the United States and European Union reach an agreement on their long-running international trade dispute that would allow the lower tax rate. Last year, the World Trade Organization body ruled that Boeing received an illegal U.S. tax break from Washington state that damaged sales by European archrival Airbus. (AP Photo/Ted S. Warren)
A Boeing executive delivers good and bad news for Everett

The commercial headquarters could indeed come to Paine Field. But demand for big jets will not rebound quickly.

An Israeli Air Force Boeing AH-64 Apache attack helicopter from the 113th Squadron, also known as the Hornet Squadron, lands during a display for the foreign press in Ramon air force base near the Israeli town of Mitzpe Ramon, in the Negev desert, southern Israel, Monday, Oct. 21, 2013.(AP Photo/Ariel Schalit)
Boeing’s Arizona chopper plant under scrutiny by Army team

The company reported quality problems it says were caused by a derelict technician.

FILE - An American Airlines Boeing 737-823 lands at Miami International Airport, Monday, July 27, 2020, in Miami.American Airlines said Tuesday, Aug. 25 that it will furlough or lay off 19,000 employees in October as it struggles with a sharp downturn in travel because of the pandemic. Flight attendants will bear the heaviest cuts, with 8,100 losing their jobs.  (AP Photo/Wilfredo Lee, File)
American plans flights with Boeing 737 Max by year-end

Customers can see on American’s website the type of plane for any flight if they know where to click.

Patrick Ky, executive director of the European Aviation Safety Agency, in Amsterdam on Nov. 27, 2018. MUST CREDIT: Bloomberg photo by Yuriko Nakao.
Boeing Max judged safe to fly by Europe’s aviation regulator

A synthetic sensor to aid pilots when the mechanical angle-of-attack sensors fail is still two years out.

The Boeing factory at Paine Field in Everett. (Boeing Co.)
Could Everett become Boeing’s next jetliner headquarters?

The company is considering selling the Commercial Airplanes division offices at Longacres in Renton.

Cop turned pinup model in Gold Bar charged with $67K fraud

Brenda Cavoretto was injured when a dead body fell on her in 2012. She’s accused of overselling its lasting impact.

Washington unemployment rate drops to 7.8%

Most job growth occurred in leisure and hospitality, construction and other services.

Premera Blue Cross will eliminate hundreds of jobs as it seeks to cut costs sparked by the current economic downturn. (Submitted photo)
Mountlake Terrace-based health insurer Premera cuts 285 jobs

The layoff at Premera Blue Cross, prompted by the economic downturn, represents about 8.3% of its workforce.

FILE - In this Feb. 8, 2018, file photo, the logo for Twitter is displayed above a trading post on the floor of the New York Stock Exchange.  Twitter is imposing new rules, Friday, Oct. 9, 2020,  ahead of the U.S. presidential election, prohibiting people,  including candidates, from claiming an election win before it is called by either state election officials or two authoritative, national news outlets. (AP Photo/Richard Drew, File)
Twitter to pay $100,000 over Washington campaign violations

The company failed to maintain records related to ads that ran from 2012 through 2019.

FILE  - In this Sept. 30, 2020, file photo, a Boeing 737 MAX jet, piloted by Federal Aviation Administration (FAA) chief Steve Dickson, prepares to land at Boeing Field following a test flight in Seattle. Boeing says the pandemic will reduce demand for new planes for the next decade, long after experts expect a vaccine for COVID-19. The company updated its forecast of the airplane market on Tuesday, Oct. 6, 2020. It remains upbeat about long-term prospects driven by increasing air travel in Asia. Boeing, which along with Europe’s Airbus dominates the aircraft-building industry, has seen orders and deliveries of new planes crumble this year. (AP Photo/Elaine Thompson, File)
Boeing’s struggles continue: No jetliner sales in September

The company has suffered 448 cancellations for the Max and dropped another 602 orders from its backlog.

Valdis Dombrovskis, Vice-President of the EU Commission, speaks at a press conference in Berlin, Germany, following the informal talks of the EU Trade Ministers on Monday, Sept. 21, 2020.  (Bernd von Jutrczenka/Pool via AP)
Rule: EU can impose $4 billion in tariffs over Boeing support

Tax breaks for Boeing from Washington state were deemed to have unfairly harmed certain Airbus jets.

Kellie Shanahan loads Jacob McGovern's vehicle with his class tool bag at Meadowdale High School in Lynnwood on October 1, 2020.  (Kevin Clark / The Herald)
How do you teach auto shop remotely? Edmonds class finds out

For some local high school students, auto shop is the thing that keeps them from dropping out.