Hey guys I'm back from my trip to Swan's Island and back to searching for news of Portland development (or lack thereof)! Anyway, here's something from the Press Herald about the Westin. They will be going ahead with the project but its going to be smaller than originally planned because of financial pressures (interest rates, cooling condo market). I just hope economic problems such as these will not completely bring building in Portland to a screeching halt like it did in the early 90's...
Plans for hotel, condos scaled back
By MATT WICKENHEISER, Portland Press Herald Writer
Plans for a $110 million Westin hotel/condominium complex on the site of the shuttered Jordan's Meats plant in Portland are being scaled back, according to the Rhode Island firm that is leading the development.
The plan had included a 230-room hotel, 92 luxury condominiums, an estimated 20,000 square feet of retail space and hundreds of underground parking spaces.
The Procaccianti Group is now looking at a "significantly" smaller number of condo units, Tom Niles, executive vice president of development, said Wednesday. The number of hotel rooms will also be reduced, but Niles wouldn't give specific numbers for the condo or hotel side of the development.
The reduction is due largely to the softening condo market, said Niles, as well as rising global interest rates and the perception of overbuilding.
"We try to be light on our feet," he said, "and respond to market conditions."
Niles said that, because sales of the luxury condos would help underwrite the hotel construction, scaling back on one end results in corresponding cuts to the other. "They have to work in unison." Ground-floor retail is still part of the plan, and office space may be included in the project as well.
Niles said the cost of the project would drop from $110 million, but he didn't have a firm figure. The initial development of the hotel and condos may be the first of a two-part construction process. Once the initial development is done, the developer will look to see how to get the best value from the rest of the land, he said.
Portland City Manager Joseph Gray Jr. said city planning officials met with Niles two weeks ago and were told about plans to scale back the project. Depending on how much the initial plans are changed, the developer may have to get new approvals from the Planning Board and City Council, Gray said.
"We've got people working double-time here. We want to be back in front of (city) planning staff late summer, early fall," said Niles. "We'd love to be through the process by year-end and proceed on the project."
Niles said that Procaccianti has a clear idea of what the city needs and wants from the project in terms of setbacks, heights and other factors, and that new plans will be within those parameters.
"I know the peninsula needs these projects to move forward," he said. "We need to move forward. We can't afford to have an idle piece of land."
Procaccianti's local partner in the project is the Liberty Group of South Portland. Liberty spokesman Dennis Bailey said company Chairman Michael Liberty still backs the project.
"These are just factors that had to be addressed," said Bailey. "There had to be some changes made."
Niles said Procaccianti has projects in other markets across the country and those under construction are moving ahead as planned. The developer is reviewing projects that are in the preliminary stages, he said.
The Portland project is planned for the former Jordan's Meats property, a site bounded by Franklin, Fore, India and Middle streets.
The Westin project is a key part of the redevelopment of Portland's eastern waterfront, and is expected to complement the city's Ocean Gateway terminal for cruise and ferry ships.
Two other privately funded projects could also add hotel rooms, condos, parking and office space to the neighborhood.
