To be or not to be? That’s the burning question surrounding a hotel proposal in downtown Victoria.

Project developer Mary Meuwissen, a real estate professional and former Victoria mayor, and her investment group are seeking approval for a 46-room boutique hotel adjacent to the existing Whisky & Rye restaurant.

Meuwissen has faced headwinds since beginning the planning and development process about two years ago. Due to the building site’s location near the shores of Stieger Lake, the project requires variances from shoreland, storm water management and impervious surface rules.

But now, the final major obstacle to the hotel’s approval appears to be the lack of available parking in downtown Victoria.

At its regular meeting on April 13, the City Council tabled consideration of the project’s preliminary plat, conditional use permits and other official actions that would have moved the hotel closer to construction.

The council directed city staff to continue working with Meuwissen over the next 30 days to resolve the parking concerns. Meuwissen claimed she was initially told there was plenty of nearby parking to accommodate the new business, but the tune has changed.

The council will apparently revisit the Hotel Victoria plan at its May 11 meeting. Meuwissen said she’s not sure how the council will ultimately vote, but if the project is rejected she will simply pull the plug on the idea.

“There are plenty of things we can do with that property,” she said. “We’re allowed to do a condo building. But this hotel is where my heart and soul is. We want Victoria to be successful … so that shops can be successful and the general public can have the quaint, authentic downtown they want. That’s everything we have been working toward.”

Proximity Parking

Anyone headed to downtown Victoria on a busy weekend knows how difficult it can be to find a parking spot. The popular restaurants, retail shops and entertainment venues can attract a crowd.

According to some elected officials, the hotel project would exacerbate the problem with the loss of some existing parking stalls in order to make room for the building. There remains some debate, however, over exactly how many spots might disappear.

At the April 13 council meeting, estimates on the number of “lost” on-street spots along Stieger Lake Lane and Randy’s Way ranged from six to as many as 10.

According to City Planner Brian McCann, the hotel plan calls for 41 underground parking spaces for guests to serve the 46 hotel rooms.

“Our code says that hotels are required to have one space per room … so they’re proposing five less spaces than what is required,” he reported. If the hotel were to reach full capacity, he noted, that would require some guests and employees to park elsewhere in the downtown district.

Council Member Greg Evansky said underground parking would add to the city’s total spaces, but those spots would be available only to guests. He said the project would erase existing parking spots that are close in proximity to other high-traffic businesses, and some guests would ultimately occupy the remaining spaces that serve those same businesses.

“I have consternation about … taking away stalls from a part of town where we have the most contentious use of parking space on busy nights,” he said. “We need assurance that there is a rock-solid way of being able to bring those spaces back, and they’re available upon the opening of this hotel.”

Council Member Chad Roberts agreed that a plan to replace parking spots is necessary before the project can move forward.

“I think we all love the project. We think it’s a beautiful building. We think it is long needed,” Roberts said. “But I share Council Member Evansky’s concerns about the parking issue.”

Council Member Christian Pederson said he was less concerned about hammering out a detailed parking plan before approving the project.

“I think this is a great project for the city,” he said. “I think we need to figure out a way to get it done. We just need to operate in the gray a little bit as we’re going through approving the preliminary plat.”

Evansky agreed that the project would be a positive addition to Victoria, but it was the council’s job to negotiate the specific details.

“I don’t think we’ve been put up here to operate in the gray,” he said. “We’ve been put up here to operate and not create future problems … or even immediate problems. We are here to solve problems.”

Mayor Debra McMillan said she struggled with further delaying action on the downtown hotel.

“I want to figure out a way to get to ‘yes’ on this project,” she said. “We don’t want to overbuild parking, and we don’t want to under-build parking. But it is a delicate balance.”

One of the hotel’s investors, Tom Almquist, noted there are ongoing discussions related to additional parking opportunities in downtown that could address a perceived lack of spots.

But Evansky countered that those discussions are preliminary in nature and aren’t tied to the hotel proposal in question. He also opposed a “shared parking” arrangement — which has been used often for Victoria business proposals — that would allow the hotel to identify current spaces that could be used by patrons at times other businesses are closed or less busy.

Because Meuwissen was unable to attend the April 13 meeting, council members wondered how they could come to an agreement on parking solutions and pave the way for approval that night.

On behalf of the project backers, Almquist agreed to delay a final vote on the hotel for 30 days so negotiations could continue.

“We keep getting to one hurdle, and then there’s another hurdle,” Almquist said. “We just need help from staff or from the city that can help us to get there. It’s pretty tough to get to this point — all the effort and time, two years of our life, back and forth, back and forth, change after change, hurdle after hurdle — and then now another 30 days. But if Brian (McCann) will work with us and come up with a solution, then I will take 30 days.”

Passion for the Project

According to preliminary plans, the 46-unit hotel would include various meeting rooms, a fitness center, a breakfast bar, and the valet parking garage. The five-story building would measure about 48 feet at its highest point, within the city’s 50-foot height restrictions.

In a phone interview, Meuwissen said Victoria’s business community is virtually unanimous in its support of the hotel’s construction.

The downtown has struggled of late with numerous retail operations closing, Meuwissen reported, and the hotel would bring in “fresh wallets” to help revitalize the city’s core.

“Hotels in downtowns are game changers for retailers,” she said. “They are perfectly matched. People are on vacation, and they like to shop and walk the streets.”

Meuwissen said Victoria has a lot to offer visitors who might frequent a boutique hotel. Parks, biking trails, quality golf courses, the University of Minnesota Landscape Arboretum, wineries and lakes are nearby assets that attract people, she suggested.

In addition, Minnesota’s No. 1 wedding venue, Bavaria Downs, is nearby and attracts 800 to 1,000 visitors on busy weekends, Meuwissen noted. Because there is no hotel in Victoria, all those wedding guests end up staying in communities farther away.

“They’re going out and spending their dollars elsewhere,” she said. “We would love to bring them in and have them spend their dollars with our wonderful local shops and restaurants.”

With a hint of mounting frustration, Meuwissen said some of the current council members have different philosophies from hers related to such downtown development.

“They don’t see the big picture,” she explained. “I’m very pro-business. I like to see projects that make things multiply and do well.”