The Old Lumber Yard in Solvang could be turned into a four-star hotel, something its developer says is lacking in the city’s hospitality offerings. But some residents believe the property should be transformed into housing.
Jarret Gorin, the developer’s partner, said the difference between a two-star and a four-star hotel is a Day’s Inn and a Four Seasons, respectively.
“The inventory that you have in Solvang right now, there isn’t anything quite like the idea that we would have that would go on this site. … I think it’s in a different category because the four-star concept has things like a wellness center and a really high-end restaurant. It just has amenities that a lot of smaller hotels in Solvang don’t have right now,” Gorin said.
The developer originally submitted a housing project application for the site located on 1873 Mission Drive in December 2020. In February, developer and owner Edward St. George submitted a “term sheet,” which City Manager Xenia Bradford described as a preliminary concept for the project.
St. George withdrew his initial term sheet and submitted a new one requesting that the city consider rezoning the property from high-density residential to commercial. Rezoning would allow him to pursue a hotel development.
Currently the city is processing the initial housing application.
During public comment at the May 24 Solvang City Council meeting, resident Alice Ola said she understands the council’s fiscal obligations and their support for a hotel because of the revenue it would generate for the city in tourism occupancy tax.
“I can also tell you your residents don’t have anything to rent and [houses] to buy are very high. I think the housing project serves the city better. It might not be fiscally wonderful but it serves your community better,” Ola said.
Mayor Charlie Uhrig said if the council were to approve the site for rezoning, the city would work with St. George and Gorin on finding another property for a possible housing project.
Councilmember Robert Clarke said the two biggest issues the city has are a wastewater treatment plant and unfunded liabilities, and the city would not be able to fund those with a residential development in one location.
“I would like to see Mr. St. George build this development as a high-end luxury resort. I would also like, and I ran on this, promoting midweek tourism. Having somewhere we could have people come here during the week because we cram all of our TOT into the weekend, pretty much except for the summer,” Clarke said. “And by doing something that can draw some people from within 300 miles for weekly meetings, it just spreads everything out. And it brings more money, so I’m all for the development of a hotel there.”
The council directed staff to review the developer’s proposal for a hotel project at the Old Lumber Yard as an alternative to the previously submitted housing development application under Senate Bill 330, the Housing Crisis Act of 2019, which limits local laws over housing developments.
This article appears in May 27 – Jun 3, 2021.