The Tacoma (WA) City Council has approved an amended agreement with Yareton Investment and Management (Washington) L.L.C., as well as property conveyance for a hotel project for the Greater Tacoma Convention Center. Conducted without public subsidy, the development represents one of the first major foreign direct investments in a commercial project on publicly-owned land in Tacoma. It is also the largest privately funded development downtown in the city’s history.
The project, estimated to cost approximately $150 million, will be completed in two phases.
The first phase, projected to cost at least $85 million, will involve the construction of a 4-star, 300-room hotel with a 10,000 square foot grand ballroom, retail and other function rooms. The hotel operator is Interstate Hotels & Resorts in Alexandria, VA, the leading U.S.-based global hotel management company, operating branded full- and select-service hotels and resorts, convention centers and independent hotels worldwide. The brand is Marriott International in Bethesda, MD, which encompasses a portfolio of more than 6,100 properties in 30 leading hotel brands spanning 124 countries and territories.
The second phase, estimated to cost approximately $65 million, will involve the construction of approximately 200 apartments/condominiums based on market demand, with retail, after the hotel is operational.
The development is projected to boost utilization of the Greater Tacoma Convention Center, and generate substantial revenue through property, sales, B&O, utility and hotel-motel taxes. It is also projected to create approximately 1,000 construction jobs and 200 full-time hotel-related jobs.
The development is scheduled to break ground on August 8, 2017.