Bar Harbor Grand

Bar Harbor, Maine

Project Type: Commercial/Industrial

Case No: C034022

Year: 2004

SUMMARY The Bar Harbor Grand Hotel is a 70-room hotel in Bar Harbor, a town on Mount Desert Island off the coast of Maine and a popular destination for thousands of visitors who come each year to nearby Acadia National Park. An infill development close to downtown, the hotel visually complements the surrounding pedestrian-scale commercial area. The property—new construction that is architecturally modeled after one of Bar Harbor’s 19th-century “golden age” —combines historic ambience with modern amenities.

FEATURES

Infill development New construction based on historic design Compatible with local character Bar Harbor Grand Hotel

Bar Harbor, Maine

Project Type: Commercial/Industrial

Subcategory: Hotels

Volume 34 Number 22

October–December 2004

Case Number: C034022

PROJECT TYPE

The Bar Harbor Grand Hotel is a 70-room hotel in Bar Harbor, a resort town on Mount Desert Island off the coast of Maine and a popular destination for thousands of visitors who come each year to nearby Acadia National Park. An infill development close to downtown, the hotel visually complements the surrounding pedestrian-scale commercial area. The property—new construction that is architecturally modeled after one of Bar Harbor’s 19th-century “golden age” hotels—combines historic ambience with modern amenities.

SPECIAL FEATURES

Infill development New construction based on historic design Compatible with local character Resort hotel

PROJECT ADDRESS AND WEB SITE

Bar Harbor Grand Hotel 269 Main Street Bar Harbor, Maine 04609 1-888-766-2529 Fax: 207-288-8548 www.barharborgrand.com

DEVELOPER

David Witham, Sr. Newport Drive, Box 7 Bar Harbor, Maine 04609 207-288-8279 Fax: 207-288-5296

ARCHITECT

David Witham, Jr. 801 Islington South, Suite 32 Portsmouth, New Hampshire 03801 603-436-4933 Fax: 603-436-2315

ENGINEERING

Ambit Engineering 801 Islington Street, Suite 31 Portsmouth, New Hampshire 03801 603-430-9282 Fax: 603-436-2315

CONSTRUCTION MANAGER

Bob Bond 115 Thundermist Road Bar Harbor, Maine 04609 207-288-2843 GENERAL DESCRIPTION

The Witham family has maintained a presence in the hotel industry on Mount Desert Island since 1987, starting with the acquisition, renovation, and expansion of the Bar Harbor . Today, the Witham Family Ltd. Partnership has four hotel properties totaling 362 rooms, all in Bar Harbor, Maine: the Bar Harbor Grand Hotel, the Bar Harbor Inn, the Acadia Inn, and the Maine Street . The price points of these properties range from upscale to middle market. The Bar Harbor Grand Hotel, the smallest of the hotel properties, was built to be able to capitalize on its intown location, on the edge of the village’s downtown and major tourist hub.

There were three main players in the development of the Bar Harbor Grand Hotel: David Witham, Sr., the developer; David Witham, Jr., the architect and community contact in charge of obtaining public approvals; and Bob Bond, the construction manager.

SITE AND DEVELOPMENT PROCESS

Located off the coast of Maine, Bar Harbor is the largest community on Mount Desert Island. Since the mid–19th century, Bar Harbor has been a popular summer resort. With 4,800 year-round residents (and a much larger summer population), the village is home to the Jackson Laboratory, which conducts biological research; the College of the Atlantic; and adjacent Acadia National Park, the third most-visited national park in the country. The village of Bar Harbor exudes a friendly, “downeast” character with a tight-knit, pedestrian-friendly historic commercial area and scenic views of the rocky shoreline. In the summer months, Bar Harbor is packed with visitors who keep the many , shops, outfitters, hotels, and boat cruises busy.

Founded in 1796, Bar Harbor (known as the town of Eden before 1918) became a popular summer resort in the late 19th century, and grand hotels proliferated. By 1875, there were 16 hotels in the village, some with reservations made two years in advance. By 1881, expansions had made the Rodick House—a six-story wood-frame structure with 400 guest rooms and dining facilities for 1,000 that served as the inspiration for the Bar Harbor Grand Hotel—the largest hotel in Maine. However, by the turn of the century, the grand hotels fell out of favor and in 1906, the Rodick House was demolished. Most of the other fabulous hotels and summer cottages of this era were destroyed in the great fire of 1947 that took five days to bring under control.

Today, Mount Desert Island has 4,500 guest rooms in facilities ranging from small, family-run lodgings and bed-and-breakfasts (B&Bs) to updated, modern hotel properties. Smaller accommodations predominate, while the larger hotels represent fewer than 1,000 rooms. Bar Harbor hotel rooms have a variety of price points: waterfront properties typically are the highest, with intown units offering more mid-range rates.

The opportunity to develop the Bar Harbor Grand Hotel arose when the lot for a former Ford dealership came on the market in 2001. The property is located directly on lower Main Street, the city’s main shopping corridor, on the south end of downtown and 1.5 miles (2.4 kilometers) from Acadia National Park. Located in a neighborhood known as the “Lower Main Street/Neighborhood Transition Area,” the blocks on either side of the hotel and across the street are commercial in nature, with a residential neighborhood of single-family homes behind it.

The lot upon which the Bar Harbor Grand Hotel was built measures slightly over an acre (0.4 hectare). It is rare for a lot of that size and location to be available for development in downtown Bar Harbor. The Witham family, already well established in the local hotel market, seized the opportunity to purchase the land for the development of a new hotel. The Withams’ local involvement in the hospitality field allowed them to gather market information from their other properties and to estimate the room rate that a hotel in this location would command. As a result, the developer was able to determine the appropriate amenities for the market, draft a budget for the project, and calculate that a minimum of 70 rooms would be needed to realize a return on the investment.

In addition to the acquisition of the car dealership property, the project required the purchase of a smaller adjacent site belonging to McKay Lodging, a B&B. The 1895 Queen Anne–style cottage, however, would have to be moved or demolished to make room for the new hotel. In an effort to save the cottage, the developer offered $10,000 to anyone who would remove it from the property. Furthermore, a grass-roots group organized to oppose the possible demolition of the historic building (as well as, for some, to express objections to the new hotel). In the end, the situation was resolved when a local real estate agent moved the structure less than 50 feet (15.24 meters) from its original location to his agency’s abutting property.

FINANCING

To obtain financing for the project, the Witham Family Ltd. Partnership provided 25 percent equity as owners of the Bar Harbor Inn. The partners in the development are David Witham, Sr., general partner and property manager, representing 70 percent ownership; and limited family partners representing the remaining 30 percent.

The developer predicted a 30 percent return on investment based on experience in the local market. Risk factors included bad weather during winter construction, traffic delays during the summer peak season, and competition from other hotels.

Citizen’s Bank provided the construction financing, with the Bar Harbor Inn pledged as collateral. The interest rate was 2 percent over the 30-day LIBOR. The loan-to-value ratio was 70 percent, with a 1.75 debt coverage ratio. Citizen’s Bank also furnished the permanent long-term financing for the project and the first mortgage on the property. No public financing was used.

DESIGN

Proud of their seaside community, the residents of Bar Harbor vigilantly seek to preserve its traditional, New England character amid demands that may not always reflect that sensitivity. The town of Bar Harbor’s design guidelines for the Lower Main Street Commercial area call for any infill development or redevelopment to be compatible with the historical neighborhood pattern and local architectural tradition. Another design goal for this area is to foster a vibrant, pedestrian-oriented business district that complements the core commercial downtown Main Street District. With these goals in mind, the architect, David Witham, Jr., sought to design a structure that would fit with the visual character of the neighborhood, reflect the town’s rich history, and house the desired number of rooms.

Seeking historic models, the architect researched hotels that were prominent in Bar Harbor during its 19th-century “grand hotel era,” and discovered the Rodick House, an 1875 hotel that had originally been built just three blocks from the new site. The turn-of-the-century-style hotel became the inspiration for the new Bar Harbor Grand Hotel, and one that would meet a variety of demands. First, the historic style would be compatible with Bar Harbor’s distinctive character, and thus would be more likely to gain local acceptance, especially that of the town’s design review board. Second, the ambience of the hotel, with its highly visible location on Main Street, would have strong market appeal.

The developer and architect recognized that the biggest issue at stake in the proposal for the new hotel would be the scale of the project, which would be four stories, while nearby buildings were typically no more than two stories high. The size of the hotel was dictated by both the number of guest rooms needed to make the project viable and the permitted height and lot coverage. However, the design review board—which would be issuing the required Certificate of Appropriateness needed to get a building permit—would be considering the scale of the structure and would likely look critically at the proposed size.

In designing the new hotel, the architect incorporated two replicas of the original hotel, attached via an upper-level connector. There are four turrets across the front of the building that create architectural interest and help to reduce the mass of the structure. The main entrance to the hotel is between the two buildings, providing a visual element when the property is approached from the street. Because of the downtown location, it was important to bring the building as close to the street as possible and place the parking lot behind the structure. The developer was also able to reduce the total parking requirement: by conserving open space in the first 20 feet (6.1 meters) of the property’s front setback, he could take advantage of town zoning that provided a parking credit for every 200 square feet (18.6 square meters) of green space. Although the site is largely developed, the process of development allowed for the preservation of some mature trees and landscaping along the public sidewalk.

PLANNING

The project needed the approval of the town’s strict planning board and the design review board to move ahead. The planning board examined the proposed project for its compliance with local zoning, particularly building height, setbacks, and lot coverage. At the same time, previous landowners had established certain precedents on the site, so that questions about what land uses could be grandfathered in had to be resolved.

The Bar Harbor Design Review Board was responsible for evaluating the project’s compatibility with local character and making sure that it was in compliance with space and bulk regulations. At the introductory meetings, the design review board reviewed professional renderings of the proposed project. Then, the architect built a three-dimensional model of the proposed hotel in a scale model of the streetscape to help board members visualize what the building would look like in its surrounding context. He also brought a scale model of Bar Harbor’s existing town hall—similar in size to the hotel—that occupies a similar space in otherwise low-rise surroundings. To persuade the board that the hotel’s scale was appropriate, the architect removed the hotel model and placed the familiar building of the town hall in its place in the replica streetscape. This demonstration was the clincher, and the hotel earned the approval of the design review board.

CONSTRUCTION

Translating the historic structure of the Rodick House into modern construction posed some challenges for the architect. Using two photos from the local historical society, David Witham, Jr., scrutinized the details of the historic structure through a magnifying glass. The 21st-century steel-framed building was planned to be fire resistant—with no wood in the construction—so the plans had to be adapted accordingly. As such, the architect worked with the engineer to replicate all the profiles and reproduce architectural details out of modern synthetic materials such as the sheet-metal crown molding, fiber cement clapboard, and PVC trim. The layout of the rooms is fairly consistent with that of a modern mid-priced tourist hotel, and most of the rooms’ floor plans are similar. However, the developer chose interior finishes such as wood furnishings, elegant light fixtures, and subdued fabric patterns that would convey a turn-of-the-century character. Outside, the parking lot lights match the historic character of the other downtown streetlights. The hotel offers the ambience of a historic property with modern conveniences such as a heated pool and Jacuzzi, Internet access, and guest laundry, as well as in-room amenities including refrigerators, DVD players, and voice mail.

The tight space on the site did pose some constraints; for example, a few first-floor rooms abut the parking lot, a drawback that is mitigated by landscaping.

MARKETING, MANAGEMENT, AND PERFORMANCE

Tourists represent 95 percent of the hotel’s clientele. To reach this market, promotions for the property include local outlets, such as a listing in the Chamber of Commerce Visitor’s Guide; the Withams’ Web site for their properties and other tourism Web sites; AAA; state tourism printed materials and online advertising; and the nationally distributed and Leisure magazine.

The Bar Harbor Grand Hotel has met expectations for performance. Its historic ambience offers a strong curb appeal. Located near a main entrance to the village, it shows well in comparison with other properties available in the vicinity and has more amenities than other hotels in its price range.

EXPERIENCE GAINED

Be prepared to deal with seasonal variables in construction. Construction started in the fall of 2002, enduring through a severe winter to get a majority of the property built. Winters in Maine can be brutal and last several months—often with heavy snowfalls through early spring. Even minor delays can have a disastrous impact on a short operating season: a two-week delay caused by an incomplete steel shipment in December 2002 snowballed into a four- to six-week setback, ultimately postponing the planned June 1 opening date to July 2003. However, the alternative would have been to start in the spring and build through the summer during the peak tourist season—a move that would have set the hotel’s opening date back by nearly a year and possibly caused delays in the delivery of materials due to heavy summer traffic. Do the interiors in house. Keeping the interior design in house streamlined expenses and allowed for more control over the process. For this project, the Withams ordered furnishings from China for the first time, previously having always purchased them from the southern United States. While this realized some savings, freight was expensive, shipping took longer, and shipments sometimes got caught in customs. Have a vision for the project. The architect’s demonstration of the development as not just another resort hotel, but as a property that would be an asset to the community was persuasive and helped to win the approval of the planning and design review boards. Pay close attention to detail. Closely scrutinized by the local press and at public hearings, this project was under the public microscope for the better part of a year. Providing all the requested information, working closely with the review boards, and responding carefully to concerns were all valuable investments in goodwill for the project. Be prepared to improvise. The hotel basement was originally planned as two separate foundations separated by 40 feet (12.2 meters). However, after the foundation footings were poured, it became apparent that there would in fact be several advantages to connecting the basements. The architect and contractor quickly put together a plan to connect the two basements with a tunnel, using five eight-foot (2.4-meter) lengths of a concrete culvert pipe that was nine feet (2.7 meters) in diameter. Do not underestimate the design review board. Without the approval of the design review board, the project could not have been built. However, in the end, making the hotel meet the high standards set for it made it a better product for the developer and the community. PROJECT DATA LAND USE INFORMATION Site area (acres/hectares): 1.31/0.52 Gross building area, excluding basement (square feet/square meters): 39,550/12,214 Building site coverage: 20 percent Parking lot site coverage: 58 percent Floor/area ratio: 0.69 Floors above grade: 4

BUILDING USE INFORMATION Use Net Area (Square Feet/Square Meters) Lobby/reception area 500/155 100/31 Guest rooms 30,000/9,300 Restaurants/lounges 1,400/434 Administrative offices 150/46.5 Back-of-house (services) 2,000/620 Circulation 4,000/1,240 Public areas (covered porch) 700/217 Other (manager’s apartment) 700/217 Total 39,550/12,260.5

GUEST ROOM INFORMATION Number of rooms: 70 Standard room size (square feet/square meters): 400/124 Luxury room size (square feet/square meters): 500/155 Executive/hospitality suite (square feet/square meters): 600/186 Range of room sizes (square feet/square meters): 400–600/124–186 Occupancy rate: 70 percent (open May–October) Average room rate per night: $140

DEVELOPMENT COST INFORMATION Construction costs: $4,250,000 Furniture, furnishings, and equipment: about $8,000–$10,000 per unit Total development cost: $4,550,000

DEVELOPMENT SCHEDULE Site purchased: May 2001 Construction started: June 2002 Project completed: August 2003

DIRECTIONS

From Bangor International Airport: Take I-395 heading east from Bangor to exit 6A, and drive east on Route 1A to Ellsworth, then take Route 3 to Bar Harbor.

Driving time: 60 minutes in nonpeak traffic.

Deborah Myerson, report author Jason Scully, editor, Development Case Studies David James Rose, copy editor Joanne Nanez, online production manager

This Development Case Study is intended as a resource for subscribers in improving the quality of future projects. Data contained herein were made available by the project's development team and constitute a report on, not an endorsement of, the project by ULI–the Urban Land Institute.

Copyright © 2004 by ULI–the Urban Land Institute 1025 Thomas Jefferson Street, N.W., Suite 500 West, Washington D.C. 20007-5201 Located in Bar Harbor, Maine, on Mount Desert Island, the Bar Harbor Grand Hotel contains 70 rooms and is modeled after the Rodick House, a 19th-century "golden age" resort hotel. Although the hotel?s exterior evokes a bygone era, the interior offers guests many modern conveniences such as Internet access, DVD players, and voice mail. The architectural style of this four-story hotel is intended to blend in with the historic buildings and pedestrian-oriented streets of downtown Bar Harbor. A summer destination, the town of Bar Harbor offers tourists scenic views of the rocky shoreline, many restaurants, shops, outfitters, and boat cruises. Bar Harbor Grand Hotel guests are within a short walking distance of these amenities and are within 1.5 miles (2.4 kilometers) of Acadia National park. The hotel?s 39,400-square-foot (12,214-square-meter) common areas include a dining room, heated pool, and guest laundry. Site plan for the Bar Harbor Grand Hotel.