The family that brought the Courtyard by Marriott hotel to downtown Tacoma is interested in building a hotel on Thea Foss Waterway. Mark Hollander of Hollander Properties discussed the issue during the June 16 Foss Waterway Development Authority (FWDA) Board meeting.
Hollander is the third developer to attempt a hotel on the Foss. The first dropped out soon after being awarded the right to develop. Next came Seattle hotelier Robert Thurston. He spent four years on different designs that combined hotel rooms, condominiums and retail space.
The real estate market crash impacted Thurston, who ultimately was unable to move ahead. He put the property up for sale earlier this year. FWDA Executive Director Don Meyer said Hollander was the first of about six developers to contact Thurston.
The FWDA board will hold a special meeting June 30 to consider relinquishing its option to re-purchase the land and re-assign the development agreement to Hollander.
Hollander Properties is based in Bellingham. It owns several hotels in the region, including a Best Western in Puyallup.
Hollander discussed several potential hotel chains, including Marriott, Residence Inn, Hampton Inn and Hilton Garden Inn.
A Foss hotel likely would not support a restaurant. “You need to have a lot of volume in the food and beverage business to make it work,” he said.
Hollander said he needs to hammer out more detailed financial data on the proposal and noted he does not have a lender lined up. He expressed confidence a bank would lend some of the money, and noted his company and other investors could contribute the rest. Construction costs and ongoing uncertainty in the real estate market are concerns, he admitted. “Certainly there will be some obstacles to overcome.”
Meyer noted the shoreline permit for the parcel is another complicating factor.
Thurston was at the meeting and encouraged the board to let Hollander move ahead. “The buyers want to get this done,” he remarked.
Current FWDA regulations call for buildings to have retail on their first floors. Hollander would like an exemption. Meyer said Hollander’s proposal would have their hotel guests and workers in office spaces patronize restaurants and shops in nearby buildings.
Meyer seemed to favor an exemption, as a considerable amount of retail space along the waterway has sat vacant.
A hotel has long been a priority for FWDA. Meyer is optimistic that Hollander can make it happen. He is impressed that Hollander said his company would pursue the project regardless of whether Russell Investments stays in Tacoma or moves to Seattle.
“Hollander is credible enough to move forward with this,” Meyer said. “We are interested in someone who can pull the trigger. Hollander is on the path to making this a reality.”
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