Sale ends on 3.3 acres of former Paul’s Resort

With the sale closing last week on the back lot of the former Paul’s Resort property, the 5.9-acre site on Verano Avenue is one step closer to realizing plans for a three-star hotel. floors and an affordable housing complex in Springs.

Still, with the necessary design and financing hurdles to clear, kicking off construction could take nearly two years, project developers said this week.

The Sonoma County Board of Supervisors last September approved the site for a 120-room hotel and 72-unit affordable housing project just west of Highway 12 at 135, 155, and 175 W. Verano Ave.

Now that hotel project candidate Springs Investor Group has sold 3.3 acres of the property to affordable housing developer MidPen Housing, the hotel and housing proposals are now separate projects and will run independently, although the affordable housing project must start before the hotel can be built, according to Permit Sonoma, the county permitting agency.

The three-story hotel is proposed for 92,411 square feet and includes a swimming pool, gym, meeting rooms, rooftop terrace and 138 parking spaces. Springs Investors Group is a limited partnership led by local hotelier Norman Krug, owner of the Best Western-affiliated Sonoma Valley Inn on Second Street West in Sonoma and the Dry Creek Inn in Healdsburg.

The purchase price on the 3.3 acres was $4.2 million, according to Ali Gaylord, the North Bay housing development manager for MidPen, which in recent years has developed other affordable housing projects in Springs, including the Fetters Apartments and Celestina Garden Apartments on Dorene. Way.

MidPen’s new development will be called Summer Oaks and will be “family oriented”, Gaylord said.

“The next steps for Summer Oaks will be to gather funding for the project by soliciting targeted local and state funding sources for affordable housing,” Gaylord said.

Although the hotel and housing development are separate projects, they will share some infrastructure, such as sidewalks and utilities, said Bill Blum, vice president of development and operations for Krug Development Corporation, which will lead the hotel project. The next step is to apply for a permit for “common offsite works,” Blum said.

If the permitting process goes as planned, work on the shared infrastructure could begin by the end of the year, Gaylord added.

And, based on the current timeline, Blum estimates his company is “probably looking at about three years for the hotel to open.”

The development site had long been home to the former Paul’s Resort and a much-used Little League field, nicknamed Paul’s Field. The resort had been a popular dance hall, restaurant and vacation destination for decades past, and was last used as Moose Lodge, which closed in the 1980s. was destroyed by fire in 2013.

The property was purchased in 2014 by the Sonoma Valley Recreation Association, aka Sonoma Splash, a nonprofit group that dreams of building and operating a community pool on the site. But Project Splash struggled to find a developer for the swim center and sold the property to the Krug Partnership in 2018. Since then, Sonoma Splash has partnered with the Sonoma Valley Unified School District, which opened a new center aquatic in Sonoma Valley. High school scheduled to open this summer.

Email Jason Walsh at [email protected]

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