McMinnville Urban Renewal Committee recommends loan for boutique hotel project

A significant development project is on the horizon for McMinnville, as the City Council considers a proposal for a new boutique hotel in the Northeast Gateway area. The project, which aims to transform a vacant lot into a 17-room hotel, represents a $5.5 million investment and is poised to enhance the local economy and tax base.

During the Urban Renewal Agency meeting on April 22, 2025, city officials discussed the details of the proposal, which includes a request for $400,000 in funding through the city’s property assistance program. This funding would cover 1.8% of the total construction costs and is part of a broader strategy to leverage public funds for private investment. The project is expected to generate significant economic benefits, including job creation and increased assessed property values.

The hotel, located at 1066 Northeast Alpine Avenue, is backed by Alpine Hospitality LLC and has already received necessary land use and building permits. The funding request is being reviewed by a subcommittee of the McMinnville Urban Renewal Advisory Committee (MURAC), which has recommended approval based on the project's alignment with urban renewal goals, including economic development and the revitalization of vacant properties.

The proposed financial structure includes a five-year forgivable loan, which would be forgiven incrementally based on the project's performance metrics. If the hotel does not meet its development milestones, the loan would need to be repaid with interest. This approach mirrors the successful funding model used for the Atticus Hotel, which has similarly benefited the community.

City officials are optimistic about the project's potential impact and are working to ensure that the necessary agreements are in place to facilitate its success. The resolution to authorize the city manager to finalize the funding agreement is expected to be voted on soon, marking a pivotal step toward bringing this exciting development to fruition.