Rosario Resort, the famous Orcas Island resort that has been struggling since it changed ownership this spring, saw some early holiday happiness this week.
In order to help him reopen the resort’s historic Moran mansion this spring and eventually construct new five-star guest rooms, Chris Robison, a 39-year-old real estate investor who paid $6.65 million for the majority of the resort in April, has enlisted the assistance of an experienced hospitality management company.
Robison of the Utah-based Hartland Hotel Group, whose founders have renovated and reopened hundreds of hotel projects and properties and assisted in operating Rosario itself in the early 2000s, said, “I’m really excited to have them on board.”
Along with covering overdue bills and repaying $4.6 million in loans that went into default last month, putting the resort on track for a trustee’s auction in February, Robison is adamant that he close on a new loan that would allow him to purchase the remaining portion of the resort, which comprises the majority of the present guest rooms.
Oh, and the resort’s electricity has been restored after being momentarily cut off last month due to alleged nonpayment.
To be sure, there is still a great deal of ambiguity. This covers the time of the additional funding as well as the Barto family’s readiness to give up the remaining portion of the resort after selling Robison the majority of it in April.
The island’s tourism sector, which plagues businesses with limited labor, unpredictable ferry service, and a brutally short summer season, is a larger conundrum that Robison and his new partners must solve.
However, if everything goes according to plan, it would be a type of resurgence for Robison and his resort, a 115-year-old establishment that was only partially operational this summer and garnered terrible reviews from visitors due to its poor amenities and inconsistent service.
Theoretically, Hartland will smooth out some of those rough edges, making up for Robison’s own inexperience in the hospitality industry.
Mark and Jack vanHartesvelt, the founders of Hartland, have a wealth of expertise managing and growing hospitality companies. These include historic establishments like the Hotel Figueroa in Los Angeles, the Liberty Hotel in Boston, and Rosario, which Mark assisted in managing.
Jack vanHartesvelt, 69, stated in an interview on Tuesday that the resort estate, a graceful Arts and Crafts-style structure finished in 1909 as the retirement residence for former Seattle mayor and shipbuilder Robert Moran, is scheduled to reopen in May. (The resort first opened on the land in 1960.)
According to vanHartesvelt, whose company is an ownership partner in the project, the estate would function as a museum and potential offices rather than housing guests because it would be too expensive to bring the ancient edifice up to code.
According to him, Rosario will make an effort to push the busy season into the spring and fall by, for instance, extensively marketing the venue as a wedding location.
By maintaining the restaurant and other facilities available all year round, the firm also hopes to entice back local clients.
The resort intends to restore the about 20 units of employee housing up the hill from the mansion, where guests can stay year-round at a reasonable price, in response to the local labor crisis, according to vanHartesvelt.
According to a master plan for the property approved by the county, the resort might also construct an extra 60 units of employee housing, he said.
By no means is any of anything set in stone.
Robison’s financial troubles persist; after making a strong case to investors, he was only able to finance a portion of the resort earlier this year and found it difficult to secure funding for the remaining property. According to county records as of Tuesday, the resort has not paid its second half taxes, which are due on October 31.
Robison claims that a new finance agreement that will address all of those problems is on the horizon, but he was unable to provide an estimated time of availability. He was hoping for December.
Robison’s $4.6 million debts legally defaulted in July, but creditors say they haven’t heard anything new about when he plans to pay them back.
In a call on Tuesday, John Pugh, a Mercer Island merchant and one of three partners who provided Robison with the short-term hard money loans, stated, “We have not had anything presented to us, our attorneys, or anyone regarding repayment.”
Pugh and his partners had granted Robison multiple extensions to pay back the loans, but regrettably, we are now going through the foreclosure process, he stated in a statement last month, just after the notices of trustee’s sale were filed with San Juan County on November 12.
A agreement for the remaining portion of the resort is still elusive, even with funding.
The two sides are negotiating, according to Robison and vanHartesvelt. According to a Barto spokesman, the family is open to any offer and plans to relist the unsold rooms—which can be used as condos without Rosario’s assistance—in the near future.
Given that Robison is permitted to add 80 guest units to the land he already owns, Robison and vanHartesvelt assert that Rosario can operate without those extra units.
However, they stated that new applications are necessary because several of the resort’s land-use permits have expired. According to vanHartesvelt, the partners will also require more funding for construction and will have to pay back the new loan, which has a very short payback period of a few years. Given all of that, it is difficult to see them achieving their objective of starting construction by the end of 2025.
Furthermore, Robison will have to calm some islanders’ emotions.
Many people are still unhappy. According to vanHartesvelt, Robison only employed a small number of the resort’s former employees and is still unsure of how many he would eventually hire. They are also disappointed that Robison hasn’t disclosed many specifics on his resort plans.
However, Robison and vanHartesvelt both admit that they have been hesitant to promise how soon they will be able to turn around a property this intricate.
Considering his and his brother’s extensive backgrounds in the hospitality industry, vanHartesvelt stated, “This is a winner, and… we think we can help Chris get it done.”
And we’re optimistic despite being deeply involved in the process. However, I’ve discovered that you should avoid BS.
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