Riverwalk Inn may finally get new operator

Published 5:43 am Wednesday, August 19, 2015

The Port of Astoria is negotiating with Mark Hollander, a hotelier with relationships with the Marriott and other prominent brands, on a short-term lease to operate the Astoria Riverwalk Inn.

Hollander, the president of Hollander Hospitality of Bellingham, Wash., has said he wants to bring a Marriott to Astoria and potentially redevelop about 6 acres of Port property in Uniontown.

After a contentious meeting Tuesday, Port commissioners unanimously passed a motion to keep negotiations going with Hollander for a short-term lease, with no time limit, while having Port staff create a request for proposals for the hotel’s long-term operation.

Details of the Port Commission’s consensus that Hollander would be the new operator for the Riverwalk Inn — reached at a closed executive session in late July — spilled out at Tuesday’s meeting.

Commissioner Bill Hunsinger, who said he had received a backlash from the public over a perceived lack of transparency regarding the hotel, brought forth letters and business proposals from Astoria native and Seattle businessman William Orr and another new interested party Tuesday.

Hunsinger accused Port staff of not being transparent about the purpose of presentations made to the Port Commission July 28, which the Port advertised as being for proposals on the Riverwalk Inn. He said Orr, one of three presenters that day, did not get a fair shot to present on his short- and long-term vision for the former Red Lion Inn. He asked that Orr get another chance to present Monday, and that the Port, which he said has gathered several suitors for the hotel, look at a new proposal it just received and perhaps make an open request for proposals to see what people will do for the hotel.

“At the last meeting, there was consensus to enter into negotiations with Hollander (Hospitality) as fast as possible to take over this hotel,” said Jim Knight, the Port’s executive director, visibly frustrated at Hunsinger’s accusations of secrecy and his attempts to open the Riverwalk Inn to other potential suitors in the eleventh hour.

Knight was referencing a closed executive session July 28, directly after three suitors for the Riverwalk Inn presented at a special session about their plans. Hollander had indicated a willingness to pay Smithart’s debts and enter into a short-term operations agreement. Knight said Hunsinger was part of the consensus on Hollander, who is now creating a short-term plan, which should be done within the week.

Knight said there are now seven suitors for the hotel, and potentially tens of other companies who could do a good job. But the Port is on an emergency timeline, he said, and a request for proposals could quickly expand the list of suitors and would take at least a month.

“All the while, the Riverwalk Inn is being managed by a person who has stolen from the Port,” he said.

The Port has been trying for months to replace or evict operator Hospitality Masters and its owner Brad Smithart, who the Port says has fallen behind upward of $400,000 on rent, revenue-sharing and lodging taxes to the agency and the city of Astoria. The Port and Smithart were headed to court. But shortly before a trial, the Port’s lawyer canceled the court date, announcing Smithart and the Port had reached an agreement and would be entering a stipulated judgment of eviction. Smithart is still in the hotel.

Knight recommended the Port move forward on the short-term operation agreement with Hollander. The Port’s attorney said the agreement will be done within the week, and Knight said it will come before the Port Commission for approval or rejection.

Hunsinger recommended limiting Hollander’s short-term agreement to 90 days, which Knight warned could scare off Hollander altogether.

Conversations got testy multiple times. As Knight tried to add comments to the Port Commission’s discussion on the hotel, Hunsinger told him he was not part of the deliberations. At one point, Knight asked Hunsinger if he had ever received legal assistance from Orr, which Hunsinger denied.

Hunsinger was questioned about his relationship with Orr, who he said he has known most of his life but has only talked to once about the hotel, outside the commission meeting.

Vying for the Riverwalk

Three suitors for the hotel had pitched their vision during the July special session.

Ganesh Sonpatki, a Portland budget hotel operator, first approached the Port in October with a pitch to operate the hotel and pay off Smithart’s debts. The Port Commission voted to transfer him the lease in June, but the deal was never finalized, and the Port terminated Smithart’s lease. Sonpatki maintains he has had an enforceable contract with Smithart that dates to last year.

Orr, an Astoria native and president of Signature Seafoods in Seattle, presented with Chester Trabucco, the former developer of the Hotel Elliott and owner of Nos. 1 and 10 Sixth St., the waterfront business block that burned down several years ago. They offered to pay off Smithart’s debts, invest $2 million in the hotel and help redevelop the property into a marina village.

Hollander, whose company operates Crowne Plaza hotels in Portland and Seattle and a Courtyard by Marriott in Tacoma, Wash., said he could invest $1.5 million to $6 million in the Riverwalk Inn property and bring a Marriott hotel to Astoria.

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