RSSDevelopers raise a glass for The Vineyards Resort
An 18-hole golf course, 230 homes -- up to 582 when complete -- The Vineyards Resort breaks groundYakima Herald-Republic
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ZILLAH -- Al DeAtley was among the first to take a seat in the audience at Tuesday's groundbreaking for The Vineyards Resort, a $500 million wine-themed destination golf resort in the Rattlesnake Hills, northwest of here.
DeAtley, former owner of Superior Asphalt of Yakima, was promptly moved to the front row as a founding member and purchaser of a home site at the 500-acre resort he described as a tipping point for the future of the wine industry. Founding members are those who have committed money for a home site in the development.
DeAtley, chairman of the board for the nonprofit Washington Wine Country, and other founders each paid $250,000 in commitments for home sites that provided the basis for financing to launch the $70 million first phase of construction.
"The world has accepted the great wine made here," DeAtley said. "I think this will move quickly."
Washington Wine Country was created to bolster the experience of Washington wines, an industry that has exploded over the past 25 years.
Currently, the state has more than 500 wineries and more than 31,000 acres of wine grapes. The industry, including both wine and juice grapes, contributed $3 billion to the state's economy and employed 19,000 people, according to a study commissioned by growers and the state's wine commission.
The vast majority of the state's wine grapes are grown in Eastern Washington.
The state contributed just 3 percent of total U.S. production of wine in 2006 -- well short of that of California -- but accounted for 1.7 million so-called wine tourists to the region.
Hoping to build on the growth, developers of The Vineyards Resort, a joint venture called SBC, began the first phase of construction that will include the 18-hole golf course, clubhouse and pro shop, the roads and utility lines and preparing the first 230 home sites.
The grading of land is expected to begin in about two weeks.
The total number of homes is expected to reach 582 by the time the project is complete.
Pat Loomis also attended the ceremony.
Loomis, managing partner for Teammates LLC, a local group that is building several adult residential developments and is working with United Builders to develop the nearby Zillah Lakes development, said the Vineyards Resort will be a major benefit to the Yakima Valley.
Loomis and Steve Strosahl, president of United Builders and the 800-lot Zillah Lakes developer, both said cooperative marketing between the two developments has been discussed.
"A lot more people will come if we have four or five different communities to visit," Loomis said.
He said the two developments will complement one another, with each seeking a different segment of the market.
"People who come here will become part of the community. They will buy cars here. They will shop here," Loomis said. "This will be a big boon to the economies of the merchants."
Strosahl called himself a huge supporter of the Vineyard project.
"This will be completely harmonious with what we are trying to do," he said.
Rich Barnes, co-managing partner for the Vineyards project along with Gary Scott of Ellensburg, called the project a platform for a vision of the Valley's future. Longtime Yakima developer Craig Schultz is also a partner.
"We are putting together the enthusiasm and the passion of the wine industry," Barnes said. "This is the only world-class golf experience in Central Washington and a platform for the wine experience."
Barnes said while the rest of the country is struggling with a declining home market, the Northwest continues to be a bright spot.
"The Pacific Northwest is still very exciting to everyone in the rest of the United States," he said. "Yakima has the same situation. All the dynamics that make this a quality resort community are still here."
The Vineyards will be the second destination resort in this area after the much larger Suncadia near Cle Elum, a 6,400-acre mountain development that plans 3,000 housing units, three golf courses, a massive lodge and conference center and other features.
The 380,000 square-foot lodge opened last year. Two of the golf courses are open for public play.
The groundbreaking for The Vineyards occurred on a knoll that will be the site of a Tuscan-themed retail center. A 100-room condominium hotel is also part of the project. Barnes said the partners are still seeking a hotel developer.
Barnes said the Vineyards will be a place people can take advantage of their desire for activities, including golf, hiking and mountain-biking, along with their enthusiasm for wine and food.
"This social spot will let that manifest itself," he added.
Developers are pointing their marketing efforts primarily in the Puget Sound area, seeking to attract those wanting to get away from the traffic gridlock and the rain.
Selland Construction of Wenatchee has been hired to install the infrastructure for the development. The golf course is being designed by golf course architectural firm Hurdzan Fry of Columbus, Ohio.
Barnes said the golf course will be completed by the early summer of 2010. Developers anticipate employment once the golf course, hotel and other features are complete could easily exceed 150.
How the project develops beyond the first 230 individual home sites will be driven by market demand. That demand could see construction of townhomes or patio homes.
Barnes estimated the cost of the total project will be about $100 million. The $500 million figure is an estimate of the value of the property, the homes, the course and other features of the development.
Sales of home sites for founding members like DeAtley, Yakima auto dealer Bob Hall, insurance agent Neal Springer and others will close Oct. 1. A public real estate sales effort will begin later this year.
Barnes said the price of home sites will increase once the public lot sales begin. Some lots could attract prices up to $1 million, he said.
The Vineyards Resort was approved by Yakima County in early 2006 as a master planned resort, which allows developers to modify the plan as it goes along.
The state statute that authorizes master planned resorts requires that a percentage of the units be available for rental.
Springer, who has been with Northwestern Mutual Life Insurance Co. for 24 years, said he became a founding member because this is the right time for the Yakima Valley to have a project like The Vineyards. He said people who live outside the Yakima Valley are aware of the area's potential.
"Yakima has a lot of good stuff," he said.
* David Lester can be reached at 577-7674 or dlester@yakimaherald.com.
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