PORT TOWNSEND—The City Council approved a land swap Monday night, setting the stage for construction of a hotel on the Port Townsend waterfront.
Silver Cloud Inns and Hotels of Bellevue will now proceed with plans to build an 80-room “destination resort” on a waterfront plot on the south end of downtown known as Indian Point.
It’s the first step in construction of the hotel, which most likely would not open before 2014, and it still faces regulatory approval.
“There are no applications for the project and no guarantee that it will be approved,” said Planning Director Rick Sepler.
“The vote tonight only had to do with whether the project would go forward.”
Silver Cloud CEO James Korbein, who attended Monday night’s City Council meeting, said the planning and permitting phase will probably take at least a year, with construction an additional year to 18 months.
Silver Cloud now owns eight parcels that are bisected by a city-owned right of way lining up with Scott Street. That right of way was never opened.
One of those parcels includes an odd-sized lot that Silver Cloud wanted to trade for the right of way.
City staff recommended the trade as “a good deal” as it will relinquish 5,100 square feet and get 5,400 square feet in return.
City staff recommend approving the trade to Hearing Examiner Phil Olbrecht, who granted the city’s request under the condition that public shoreline access will be protected.
It’s not a fair trade, according to Tides Inn Manager Simon Lee, who said the land the city is giving up can be built on, while the land it is getting cannot.
The Tides Inn is next door to the Silver Cloud site at 1807 Water St.
Sepler disagreed with Lee’s assessment, saying that the land the city will receive could be developed and built upon, “although it would require some variances.”
Lee said he is not trying to stop Silver Cloud from building next to The Tides Inn, an older part of which was used as a set in the 1982 blockbuster, “An Officer and a Gentleman.”
“I am not trying to keep them out,” Lee said.
“I am opposed to the swap and feel they should build on the land they own.”
Lee was one of 11 hoteliers who signed a letter to the city opposing the land swap on four counts: that the land has not been properly appraised, the area has contaminated soil, that beach access is guaranteed by law and that the land swap “gives an unfair advantage to an out-of-town company.”
Former City Councilman Joe Finnie, whose Rainshadow Properties owns and operates the Bishop and Swan Hotels, also signed the letter and added his own, saying the proposal is inequitable and will destabilize the local hotel and motel marketplace.
Not all local hoteliers oppose the project.
Clam Cannery owner Kevin Harris told the City Council on Monday night that having Silver Cloud in Port Townsend would have a positive effect on the local lodging market.
“There are not a lot of places we can send people when we are full,” Harris said.
“I think if Silver Cloud is here, it would pool our resources and it would be better for everyone.”
Silver Cloud has hotels in Seattle, Bellevue, Redmond, Mukilteo, Tacoma and Portland, Ore., but cannot be characterized as a “chain,” Sepler said.
The company bought the land after Port Townsend developers Bill Wolcott and Vern Garrison failed on their plans to construct a green-built retail and condo project two years ago.
The former project planned 26 condominiums and 14,000 square feet of commercial space, with condos priced from $400,000 to $1.2 million.
The land swap vote was unanimous, with council members David King, Laurie Medlicott, Kris Nelson, George Randels, Catharine Robinson, and Mark Welch voting yes.
Mayor Michelle Sandoval was not present.
Nelson and Medlicott discussed potential conflicts but said none prevented them from voting.
Nelson owns a downtown bar that works with local hoteliers, and Medlicott said the Silver Cloud development would obstruct the view from her nearby home.
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Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or charlie.bermant@peninsuladailynews.com.
