Luxury Resort in TD met with praise; Urban Renewal seeks additional Info
Nathasha Martin answers questions about a proposal to construct an 80-room luxury resort at The Sunshine Mill at the Urban Renewal Board in The Dalles on Tuesday, March 18.
By Tom Peterson
The Dalles, Ore., March 19, 2025 — Plans for an 80-room luxury resort at the Sunshine Mill were embraced by The Dalles Urban Renewal Agency on Monday night, however, Board Members want to see additional information before they make any decisions on funding the project.
The Martin Family is proposing a large-scale hotel development and resort at Sunshine Mill at the east entrance to the historic The Dalles. The proposed project would include 80 rooms within the iconic silos, offering 4-star accommodations to attract affluent travelers and corporate retreats.
Here is an artist’s rendering of what the luxury resort might look like upon completion. Additional engineering and architectural work is needed to pin down costs on the overall project.
Urban Renewal Agency in The Dalles, Oregon, primarily funds its projects through Tax Increment Financing (TIF), which redirects a portion of local property tax revenue generated within the urban renewal district to fund projects that enhance the community, and increase the downtown tax base.
The Martins - James, Molli and Natasha - are asking Urban Renewal for $250,000 for completing engineering and architectural studies to get a true cost on the project.
So far, James Martin roughly estimates the project is somewhere between $32 million to $34 million.
Martin’s plan also calls for extensive event and meeting space, utilizing 24,000 square feet in the Wasco Warehouse and an additional 55,000 square feet for artisan workshops and expanded winery production. Martin highlighted the potential of the Mill's rooftop as an observation deck, restaurant and bar, offering sweeping views of the river and transportation hubs including the river and airport.
Urban Renewal Board Member Tim McGlothlin said he liked the idea because it would create a conference center and gathering location in The Dalles.
McGlothlin pointed out that Oregon Rotary Clubs hold annual meetings around the state but never come to The Dalles because of the lack of facilities.
Natasha Martin voiced optimism about the project’s economic impact and attracting experienced people in the hospitality industry.
“Doing something like this that pays a living wage and offers benefits could attract people here and support the local economy,” she said.
However, financing remains a hurdle.
Project leaders anticipate the need for federal tax credits and local government support to help bridge the funding gap. James Martin said they have already spent $170,000 on the project development. Urban Renewal Chair Darcy Long was not convinced to approve an initial $250,000 funding request for architectural and engineering plans.
The Martins point to other converted silos such as Quaker Square in Akron, Ohio.
While Long was also optimistic about the project, she also said that the Martins needed to finance the architectural and engineering costs.
“Urban renewal should not take the risk on the engineering to see if it is going to work,” she said. “You don’t ask for that upfront. Do the work and see if the plan is solid and then come and ask for gap funding. We need to know the project is going work.”
She directed the Martins to work with City of The Dalles Community Development Director Joshua Chandler and the City’s Economic Development Director in regard to a financial request.
While some questioned the risk of moving forward without certainty, James assured stakeholders that market research supports the concept’s viability.
“We’re not asking for anything unusual,” he said. “Investors want to see commitment from all parties involved.”
Consultant Chris Krause with Saddle Peak Hotel Advisors who is working with the Martins said the data shows a strong regional demand for a luxury resort of this size in the Mid-Columbia from May through Ocotober.
People are already traveling to the Columbia River gorge for various reasons, ranging from business to events, wine tasting and weddings, he said.
“There is a real opportunity to deliver a luxury hotel in (the Sunshine Mill) location,” he said.
Tom Peters
Tom Peters who has a winery in The Dalles area said that financing existed for the Sunshine Mill Winery Hotel and Retreat Center.
Peters has 40-plus years of experience in the mortgage banking business.
“Far as financing goes, it it will not be a problem,” he told the board.
He called the Gorge and opportunity zone and he expected the Trump Administration to bring in more money for investing and job opportunities… “You got to figure out what it is going to cost.”
McGlothlin reiterated the long-standing desire for a conference center.
“The city has wanted this for years,” he said. “A space to host training events and conventions would bring significant value.”
Community input will continue to shape the project’s development, with further financial planning and detailed design work expected over the next year.
