The Portland Development Commission is poised to authorize the sale of the empty Grove Hotel in Old Town/Chinatown to a development team led by Bob Naito.
Grove Hotel Partners LLC has agreed to buy the former single-room-occupancy hotel on West Burnside for $630,000. The PDCs board is expected to authorize the sale at its meeting next Wednesday.
The buyers, a collaboration between Eagle Pointe Hotel Partners and Naito Development, expect to renovate the property between Fourth and Fifth avenues and build a 52-room lifestyle hotel there, along with a restaurant and other ground-floor retail.
PDC has invested some $3.8 million into the site.
Though PDC is selling the site for far less than it paid initially, the city urban renewal agency will not be providing any financial assistance for the development of the property.
If the buyers dont begin construction within two years, the PDC retains a right to buy it back for the purchase price.
The deal comes just after the Portland City Council approved the Old Town/Chinatown Action Plan to spur redevelopment in the area, and a hotel bringing 24/7 activity is considered a boon to that plan. The Grove Hotel, now a bit of an eyesore, is a gateway to the district.