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Council OKs conditional sale agreement for Times Litho property

Forest Grove city councilors have approved a conditional sale agreement for Sycan B Corp. to buy the 2.4-acre Times Litho property on the 1800 block of Pacific Avenue. The city would retain the .3-acre parking lot on the northeast corner of 21st Avenue and A Street.

If all goes well, the Springfield-based developer will pay $925,000 for the site. Councilors voted 4-3 to buy the property — which at that time included the parking lot — in December 2012 and the city paid $825,000 for it, including $800,000 for the property and $25,000 in prorated taxes and closing costs.

Sycan B is considering building a hotel on the site. The developer has previously constructed hotels for Marriott, Holiday Inn and Comfort Suites, among others.

The sale will be contingent on the results of a $10,000 feasibility study that will begin after the agreement is signed and will evaluate the market for a higher-end hotel in Forest Grove, where the most upscale current options are McMenamins Grand Lodge and Best Western University Inn & Suites, both at the opposite end of Pacific Avenue. Less expensive options include Travel Lodge, Budget Inn and Holiday motels.

According to Forest Grove Finance Director Paul Downey, the study should take six to eight weeks and the city will split the cost with Sycan B. If the study shows that won’t work, Sycan B can walk away from the deal.

The sale is also contingent on whether Sycan B can get its design for the project approved within 36 weeks from the signing of the sale agreement, or roughly by the middle of July.

In that time, the developer needs to complete the feasibility study, prepare and deliver a design to the city and gain approval.


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