A long-time goal of a hotel on Thea Foss Waterway is getting close to become reality, but one hurdle remains.
Foss Waterway Development Authority (FWDA) has tried for years to get a developer to build a hotel. The first one selected by the FWDA Board was unable to move forward and withdrew.
Next came Bob Thurston, who has been successful with his boutique hotel at Pike Place Market in Seattle. After several years of changing his designs and getting extensions from the board, Thurston decided not to pursue his project, which included some condominiums.
His plans fell victim to the economic downturn, as financing from banks for condominiums has largely dried up. Thurston had good intentions, but unfortunately he lacks the financial resources to move forward.
He still owns the land, but is eager to transfer the title to Hollander Investments, which has more money of its own to put into its plan, which calls for both a Marriott and Hilton on this site. But it will need some bank financing. That is not likely to happen unless Tacoma City Council approves a hazardous substances indemnification agreement. While this and other parcels on the Foss have undergone considerable environmental remediation, such an agreement is still needed for legal reasons. The council was scheduled to vote on this on Sept. 15 but decided to delay the decision. We hope it comes up again soon, preferably on Sept. 22.
Hollander and Thurston have deadlines looming on their negotiations. Hollander plans to utilize a shoreline permit currently held by Thurston, which requires construction to begin by next March.
There was some talk among council members about needing to be better informed on the proposal. The FWDA is a creation of the council, and the council appoints members of its board. That board has spent considerable time with Bob Thurston and Mark Hollander, and approved their deal after careful deliberation. The council’s role in developments on the Foss is limited, as intended.
We hope politics does not jeopardize this project. Members of Unite HERE, a union representing hotel workers, testified at city hall this week and requested the delay. Hollander operates a Marriott downtown and proposes another on the waterway. At the national level, the union and the Marriott chain have a long-running feud.
Certainly politicians in Tacoma are hesitant to alienate the union vote, but this project is too important to fall victim to local politics. Hollander is the only player who has stepped up to the plate with a feasible plan. Months ago it pledged to move forward, regardless of whether Russell Investments moved. If the council does not approve the environmental agreement, blame it for the parcel that will sit empty for years to come on our crown jewel of an urban waterfront.
