Albany City Commission considers $315,000 request for Gordon Hotel project

ALBANY – A hotel development company working on a project encompassing two historic downtown buildings is asking the city of Albany for a contract amendment to an earlier agreement totaling $315,000.

The Albany City Commission approved a $600,000 loan to the Bethesda, Md.-based firm earlier this year  Under the agreement Woodmont, which is seeking to carry the project through to fruition, will develop architectural plans and establish a guaranteed maximum price for the project to transform the former Albany Water, Gas & Light structure into The Gordon as a Marriott Tribute brand, a mid-market boutique designation. The project for 205-207 Pine Ave. envisions an 80-room facility.

Plans call for the second building, located across Washington Street, to be renamed the Herald House with larger rooms and kitchenettes geared toward travelers staying a week or more. 

If Woodmont ultimately is the project developer, the $600,000 will be counted toward the $9 million the city has pledged to dedicate to the project. If not, the city will retain plans for use by a different company in the future.

On Tuesday, Woodmont founder and Principal Elliott Estes told commissioners that roof repairs and the removal of debris from the WG&L structure are needed to move the work forward. The removal of debris, wiring and framing is needed both to evaluate the building’s condition and for safety reasons, Estes said.

Responding to a question from Commissioner Chad Warbington, who asked what the emergency is to perform roof work at this stage, Estes said that water is leaking throughout the building and into the basement and is endangering the electrical system.

“The observation is we’ve got to protect this asset,” he said. “What you saw, the $10,000, is not (about) the importance. It’s about protecting the asset that you’ve got.

“Water will find a way. At the moment, the water is finding a way from your roof down to the basement.”

The debris needs to be removed for both safety reasons and to allow for proper assessment of the condition of the building, the developer said.

Woodmont is the third development company to take a shot at the hotel project, which has been on the city’s wish list for several years. The proposed amendment to the existing memorandum of understanding would expand the scope to include demolition, construction or reconstruction necessary to stabilize the structure as well as ensure worker safety and prevent further deterioration.

“My contention is it’s been six years,” Warbington said of the roof. “I think this should be staff-led. If staff thinks it’s important, they can put a proposal out.”

The proposed work will be necessary to preserve the building, whether or not Woodmont ultimately ends up completing the project, Estes said.

“Every dollar spent is a dollar the city or the next developer won’t have to spend,” he said. “This property has been neglected. Of course, this is your project. You can wait three or four months or three or four weeks.”

The city had previously shored up the roof and preservation work at the Rosenberg Brothers building, he said.

The commission could vote on the proposed change order at its Tuesday meeting.