Setback for expansion of Hotel E, new Perry’s in downtown Santa Rosa

The second phase of a prominent hotel project on Old Courthouse Square in Santa Rosa may require demolition of a two-story building envisioned as the site of a Perry’s restaurant, coffee shop and 31 new guest rooms next to the historic Empire Building.

A decision will be made in the coming days about whether to knock down the “eyesore” of a building at 19 Old Courthouse Square, said Santa Rosa developer Hugh Futrell.

His namesake development company and a group of partners continue to slog through redevelopment of the two-story structure adjacent to Hotel E, the boutique hotel that opened last year in the heavily remodeled Empire Building.

The combined project aims to be a top draw for tourists and business travelers, offering a downtown base for stays in Wine Country.

With or without demolition, the next-door building won’t be complete for occupation until early to mid 2021, Futrell said.

Full-scale demolition would begin immediately if he and his partners decided to knock down the building.

“The existing structure has serious structural issues that only became clear once initial demolition was completed,” Futrell said Monday in an email. “For that reason, we are evaluating demolishing the entire structure and building from the ground up with a new foundation. We believe this will actually expedite our timeline, as well as save costs and avoid further unanticipated conditions.”

The design of the building will remain the same regardless of demolition, Futrell said. The smaller second phase of the Hotel E project calls for a Perry’s restaurant on the group floor, a Starbucks coffee shop, a rooftop terrace and bar, 29 rooms and two suites.

The first phase in the old Empire Building, which opened last summer, features 39 guest rooms, 1,000 square feet of meeting space for business retreats, and a wine bar in the lobby.

Rooms for mid-March, booked today with about two months notice, range from $203 to $279 before taxes and fees, according to the hotel’s website.

The initial stage of development was plagued by structural issues, including a flawed elevator core, weak interior walls, and columns with dimensions that didn’t match original building plans, Futrell said in December 2018.

He also said then he envisioned the second phase - the part now being discussed for demolition and reconstruction - would be completed by late 2019.

You can reach Staff Writer Will Schmitt at 707-521-5207 or will.schmitt@pressdemocrat.com.