DUNDEE, Ore. — The $72 million Terrain Hotel developers are planning design changes as the project moves closer to construction, with site work slated to begin this fall.
Under the proposed changes, more of the hotel’s back-of-house operations would move onto the property, including laundry, housekeeping, maintenance, and administrative and management functions; the change would primarily involve moving the hotel’s laundry operations onto the site, according to Dundee City Administrator Courtney Patterson.
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The design changes are expected to increase the floor area by less than 25%, meaning the city can likely review them through a simpler Type I process. The changes would make the front portion of the building wider but not taller, according to Dundee city staff.
The developers are expected to submit revised plans to the city within the next three to four weeks, Patterson said. City staff will then determine the appropriate review process.
The Terrain Hotel project, approved in December 2024, is a planned 80-room hotel being developed by SVS Development LLC. The 85,000-square-foot hotel would sit on a 3.9-acre site west of Highway 99W between SW 8th and SW 9th streets in Dundee, according to documents provided by the developers. It is part of a larger development planned to include a full-service steakhouse; a second restaurant offering pizza, Italian food, breakfast sandwiches, and coffee; a spa and wellness area; and a wine-tasting room.
The hotel would also include a lobby with a bar and café, along with a public courtyard.
City staff has also asked the developers to provide an analysis showing whether the design changes would affect the traffic improvements previously recommended for the project. The project’s traffic engineer will compare the revised plans with recommendations previously made by DKS Associates, the traffic engineering firm that reviewed the project.
Patterson said she does not expect the proposed design changes to trigger additional traffic improvements, but the city wants the issue documented as part of its review.
Building SW 8th Street
One remaining issue involves Oregon Department of Transportation approval related to SW 8th Street.
The city’s land-use decision requires Terrain to construct SW 8th Street from Highway 99W to SW Linden Lane, including associated water, wastewater, and stormwater improvements. The decision also requires city and ODOT permit approvals before construction of the street.
The street will eventually become a city-owned public street.
Because the street will connect to Highway 99W, ODOT standards apply. Patterson said the city, ODOT, and Terrain are working through the remaining issue before ODOT issues the permit needed to construct the street. She said the city has completed its permitting and approval process for the hotel.
The Final Steps
Will von Schlegell, a representative of SVS Development, said financing for the project is in the final closing process with Northwest Bank.
The developers remain on track to begin substantive physical site work this fall, von Schlegell said. Initial work will include moving dirt, leveling the site, removing vegetation, and placing gravel to create a stable base for construction.
“All permits and approvals are ready to be picked up. We are just waiting on the closing process with the bank to run its course,” von Schlegell said.
The project remains on track for a spring 2028 opening, von Schlegell said. The developers are also hoping to hold a groundbreaking ceremony in October.
