The return of Hotel Marysville?

Aug. 25—Speak with any longtime Marysville resident and they will tell you that one of the biggest eyesores and major disappointments for the city is the historic and underutilized Hotel Marysville along E Street.

Behind the scenes, city officials and leaders have been working with the current owners of the building to bring the much-loved structure back to life for a city that is in desperate need of revitalization.

On Tuesday night, the owners of the property, under the name of Urban Smart Growth, launched hotelmarysville.com, touting what the future could hold for the building — including modern apartments and commercial office or retail spaces.

Along with a planned modernization of the building and its existing units, Lance Robbins, manager of Urban Smart Growth, said Wednesday that keeping that historic nature of Hotel Marysville will remain a priority.

"We're a very community oriented company. We're not just a carpetbagger developer," Robbins said. "We get involved with artistic and mental health initiatives. We look forward to having real community engagement. We welcome community ideas. We're really open minded, especially the bottom area. We haven't decided what the storefronts will be but we are open to suggestions and ideas. If people have historic memorabilia or stories, then we would like to include those. We want it to live. That's been the hallmark of everything we've done."

And what they've done is key. Getting a project completed, such as a full renovation of Hotel Marysville, can seem like a daunting task. If the right pieces aren't in place, then the project can quickly fall apart.

"I've handled every conceivable problem you can imagine. The physical problems are all manageable. The biggest challenge is the cost. We have the expertise to do it," Robbins said. "We need a lot of community support for this. We don't destroy historic buildings. We never have. If the numbers line up and everyone is behind us, this is what we do. This is not a big project for us, this is a medium-size project."

As for the project itself, many of the details are still to be determined.

Marysville Community Development Director Dan Flores said on Wednesday that the city is still waiting for many of the types of documents associated with a huge project such as Hotel Marysville, but was confident that the work would get done and progress would finally be realized. Flores said general contractor Wayne Bartlemay has played a big part in efforts on the property.

"I've been working with a contractor. He's been doing all the exploratory work. The first objective was to put a roof on it to protect against future storms," Flores said. "During this time period, they have been looking at what's necessary for abatement — asbestos or any other materials. They've been looking at the engineering for plumbing and electrical systems. Looking at design for a new loft concept. They're putting these designs together for what the hotel will allow. We don't know exactly what structural repairs will be needed."

Flores said the city will continue to work with Robbins and those involved to make sure all the necessary steps are accomplished in a timely manner.

"We'll continue to support the owner and developer any way we can through the process. We look forward with excitement to see something finally happen with Hotel Marysville," Flores said. "... I've been waiting to obtain design and engineering and then that comes to the city. At this point, he's (Robbins) told us about these concepts, but we want to see the plans and engineering on the whole hotel. He's worked really well with us. He brought his team in to work on the project."

Flores also said the city would assist Robbins and his group with speaking to large employers in the area who have seen an increased need for housing.

"The city is very excited about the possibility of this old hotel being redeveloped into workforce housing that will provide housing to our businesses, including Adventist, the air force base, the county and Caltrans," Flores said. "We'll continue to support the owner and developer any way we can through the process. We look forward with excitement to see something finally happen with Hotel Marysville."

City leadership change

Robbins said having demand is key to the project's ultimate success. Previous attempts at restoration were stalled, Robbins said, because of prior city leaders that he characterized as difficult to work with.

"We had years where a certain city official was difficult, so we walked away," Robbins said. "We were waiting until someone could work with us. That was the situation for a long time. That person departed and we got Dan (Flores) and Chris (Branscum) and we got a council who is supportive of what we need. This is a difficult project. When we got that lined up, demand kept getting bigger — the air force base, hospital — we said we have demand, we have the unique supply."

Robbins praised current city leadership for their efforts.

"The recent administration has been actively and intelligently engaged with us," Robbins said. "They're not only business oriented, but they're smart. You can get things done and they understand how difficult this is. Chris and Dan and the councilmen have been great. There's stuff we still need to straighten out. It's a very complicated project."

The vision

Robbins, who said Urban Smart Growth has owned the building for about 12 years, said even though there are many details left to be figured out, he still had a general vision for what he expects out of the property.

"The overall vision at the moment, and there's a lot of work to do on this project, is somewhere between 75-80 apartments with full kitchens," Robbins said. "The idea is to convert to one bedroom or studio apartments from the mezzanine up to the fifth floor. Downstairs we want to bring back the ballroom. We may have restaurants or a bar. The space is spectacular physically. Will be doing the event space for sure."

Robbins said rental units inside Hotel Marysville could probably run about $1,600 a month for a one-bedroom apartment, but those specifics are still largely unknown. He said each unit is expected to have exposed brick walls, highlighting the historic nature of the building, while at the same time having new kitchens, bathrooms and windows.

"It's going to have new everything, but we're still going to keep the historical charm. It will comply with historic requirements," Robbins said.

He said if the demand is there, then Hotel Marysville could offer two-bedroom apartment options or possible condominium sales.

The impact of such a project, should it be completed, is not lost on Robbins. He said his team has a well-known track record of bringing historic older buildings back to life in many communities. For Marysville, doing so would be a huge change in the economic development direction for an often maligned city.

"If you look at what we did in Columbus, Ohio — 400 West Rich — it changed the entire neighborhood," Robbins said. "There was a half a billion in construction (done in the area) after we showed up. We changed the entire perception of the neighborhood. This would be the fourth town I've done this in. This isn't new to us. We just needed the right partners and timing."

The obstacles

Of course, timing is the key question. Robbins said due to current construction prices and other economic factors, he wasn't sure when actual renovations would fully begin.

"We need some softening up with financial costs," Robbins said. "We usually are building all over the county all the time, but we took some time off because of COVID. That's why we've been sitting on our hands for the last three years. Now we can see support and demand. ... We've got three or four major systems we've got to price — elevators, plumbings, etc. We've got to go through each one and price each one out and match those up with achievable rents."

Robbins said once all those factors are lined up and all the proper paperwork is completed, then actual construction and renovations could be completed in two years or less.

"I will be highly disappointed in my construction crews if the two-year time isn't met," Robbins said. "I've had more difficult projects. That's the problem in this market — how much available labor there is. Two years is conservative. In my mind, I'm scheduling 12 months of construction. It all depends on the availability of construction labor and materials."

Beyond all the complexities of doing renovation, another big obstacle for developers to overcome is how parking will be handled. Robbins and Flores both pointed to potential locations such as Habitat for Humanity and Robbins' other property at 420 E St. as possible solutions.

"We own the lot on E Street that has about 20 plus or minus spots," Robbins said. "I think we'll be able to work out a parking arrangement with Habitat. I'd rather have more parking closer. Parking is the hardest part of success."

Flores also admitted the difficulty with parking.

"Parking is definitely a challenge because it's downtown," he said.

When asked what motivated Robbins to finally take action, he stressed that it all came down to timing and cooperation with city officials.

"It was a big vacant historic building that had just gone through a tax sale. It obviously wasn't going anywhere until we bought it," Robbins said. "It's obviously in the path of growth, an unutilized asset. It's time will come. I've been monitoring what's going on for about 12 years. We would come back every couple of years to see if it's ready and now it is. This is what we do. We buy big vacant assets around the country and when the time is right we develop them."

City responds

Marysville Mayor Chris Branscum said one of the major factors that has spurred a lot of the current momentum behind Hotel Marysville is the arrival of Chris Champlin, Adventist Health/Rideout hospital's new president who took over in November 2021. He said after a meeting with Champlin, it became clear that more housing within Marysville and specifically Hotel Marysville would make a big impact on those working at the hospital — with a good number of employees that commute from outside of the city rather than living in it.

"He (Champlin) said, 'We're driving around' — he and his wife, just getting acquainted with the area. She pointed at the Marysville Hotel and said, 'There's your solution for the traveling nurses, the residential problem," Branscum said. "... So, I called Lance (Robbins) and I said, 'Lance, here's a flag. Here's a catalyst to some activity."

Branscum said about a month ago there was a meeting in which all the major players took part, including city staff and leaders, to discuss the potential of Hotel Marysville. He cited the meeting and the unveiling of the Hotel Marysville website as signs that Robbins was taking the renovation of the building seriously.

"I'm encouraged about what Lance has been doing. ... What I've seen, particularly lately, has been positive," Branscum said.

Hotel Marysville has been a priority for the city because of not only its historic nature, but also because its visual presence affects the mindset of not only residents, but those who pass through.

"This is perhaps the highest priority in the city right now, just because of the prominence," Branscum said. "It's prominent in downtown. It's prominent on E Street. It is prominent at the eastern anchor of that 5th Street corridor. ... It sends a negative message about downtown. And so, it helps downtown, it helps the overall image. And Lance and his team know we will move with great haste to get anything done to help him advance his project."

Branscum said by itself, the revival of Hotel Marysville can help change feelings about the city. He pointed to some within the city that have just given up on what Marysville is or could be.

"People's feelings and outlook matter," Branscum said. "... We gotta change that. And the Marysville Hotel improvement will put a brighter spin on whatever's being said because it will be a real achievement."

Marysville City Manager Jim Schaad said there are many reasons why the sudden interest in developing Hotel Marysville happened.

"I think several things happened, but in a nutshell it was city staff and city policymakers reaching out to the stakeholders that could make it happen — Lance, the hospital, people that might occupy space — and just push them to come up with a deal. We don't have direct control, it's been pushing people to keep the project moving," Schaad said. "I think one of the key things we have here is we have councilmembers that understand this business and are actively involved."

Schaad also pointed to his hiring of Flores, who has been aggressive in bringing more economic development to Marysville. Another factor is the city's focus on blighted and vacant properties and getting property owners to take action.

"We have interjected ourselves into some of these vacant properties. It's been a carrot and a stick. If you're going to leave your property vacant, you're going to have to clean it up," Schaad said. "... What that has done is inspired these people to come to us and then ask for our assistance, whatever we can give to them, to either develop a property themselves or sell it to someone that will."

Schaad said the development of Hotel Marysville will lead to more services and restaurants coming into the city.

"That will be to me the trigger that helps move Marysville forward. ... The intention is to draw people into that hotel that have disposable income and that will be the nexus for that downtown area to grow," Schaad said. "And those people with expendable income will need services. Those services will come. The other thing it will drive is more development. We've already seen more interest. And if that hotel moves forward, you're gonna see other developers. ... We have their interest right now. We have their interest because they see things happening."

The city's B Street property

Coinciding with the city's efforts to bring in more development and its Hotel Marysville focus, the city council on Wednesday approved action that will allow the city to negotiate for its B Street property located between 12th and 14th streets.

Flores said the action that was approved will allow the city to enter into a right to negotiate on the city property for a proposed hotel, grocery store, event center and "some type of restaurant."

Previous city councils did not "entertain" the option, Flores said. Branscum highlighted how decisions from the past, such as the purchase of the B Street property, have affected the city over time and where it's going.

"We're not going to make big mistakes," Branscum said. "Right now we're dealing with the results of big mistakes made in the past. And sometimes mistakes are a mistake of failing to act. In this case there was a failure to act."

Branscum said the city initially paid too much for the B Street lot.

"I think that froze them in place. ... But that's water under the bridge," Branscum said. "We just have to live with the past, but we can control the future from the present, so we're going to do something about it. We're not hung up about past mistakes. They're made and I'm certain people thought they were doing the right thing and it didn't work out."

Branscum said the city sees the B Street property as a priority and part of the city's overall vision for what's ahead. He said along with the B Street location, Ellis Lake, Hotel Marysville and traffic also play a big part in that vision.

"Those are key and all of those drive downtown development," Branscum said. "And blight's an issue. We've been putting a lot of pressure on The State Theatre."

Branscum and Flores said The State Theatre was recently put up for sale.

Branscum was hopeful that once the proposed hotel is built at the B Street site, that economic development around the location will increase — including the collection of taxes the city can benefit from.

"This is a really great moment for Marysville," Flores said.