Vast Project Planned At Salish Lodge

SNOQUALMIE - The Salish Lodge at Snoqualmie Falls is being sold to a developer who plans to build a major convention center and a residential community across the highway from the landmark attraction.

In addition, the new owners will resume planning for Falls Crossing, a residential/commercial development proposed east of the falls.

Dick Causey, president of Puget Western, announced today that the lodge and several hundred acres of land around Snoqualmie Falls will be sold to Lowe Enterprises Investment Management Inc. on behalf of a major public pension fund.

Lowe Enterprises developed Klahanie, a large residential community on the East Sammamish Plateau.

The sale is expected to be final by the end of the month, Causey said. Neither he nor Lowe Enterprises would comment on the sales price.

The Salish Lodge is a 91-room luxury hotel and restaurant with a rich history and tradition. Puget Western, the real-estate arm of Puget Sound Power & Light Co., remodeled and upgraded the former Snoqualmie Falls Lodge, built in 1916, and restaurant about 11 years ago. The lodge employs 230 full-time workers. Since then, the lodge has been managed by Salishan Management Inc.

It gained international exposure as a set for the television series "Twin Peaks."

The 268-foot Snoqualmie Falls has long been one of the most popular tourist attractions in the area, drawing an estimated 1.5 million visitors a year. The falls and surrounding area are considered sacred to the Snoqualmie Indians, and generations of Snoqualmies are buried near the falls.

Ron Silva, executive vice president of Lowe Enterprises, said a 40,000- to 60,000-square foot convention/hotel complex will be built on part of a 55-acre parcel just north of state Highway 202. It will include about 200 rooms, built in several "pods" surrounding large meeting rooms.

In addition, 50 to 60 residential quarter- and half-acre lots will be developed on the north end of the site, offering spectacular views of Mount Si to the east, Silva said.

Across the Snoqualmie River above the falls, Lowe Enterprises will revive Falls Crossing, a 240-acre project proposed by Puget Western that was rejected by the city of Snoqualmie earlier this year. It was to have included 590 homes and commercial space.

Silva said he could not disclose what pension fund was investing in the purchase until the deal was concluded.

City officials had expressed concern that too much of the property would be clear-cut, wanted the number of homes reduced to 550, wanted more rental units and did not want affordable housing consolidated into one area.

Silva said the Falls Crossing project would be redesigned to meet city requirements.

Snoqualmie Mayor Jeanne Hansen referred to the change in ownership as "an era gone by."

"Changes are always good, they tell me," Hansen said, "so I'm confident this change will enrich the city."

Hansen expects to see no change in the operation of the lodge. The new development, including residential construction, had been provided for in the city's Comprehensive Plan, she said. Puget Western had earlier proposed similar projects.

A Puget Power spokeswoman said the sale of the lodge and other properties would have no effect on the company's license renewal to produce electricity at the falls power plant. The Federal Energy Regulatory Commission is now reviewing the relicensing application and is aware of the impending sale.

Causey said Puget Western will be working closely with Lowe Enterprises and its hospitality subsidiary, Destination Hotels & Resorts in Denver, to refine plans for the entire project.

Destination Hotels & Resorts operates Sun River Resort in Oregon, among 22 hotels, resorts, condominiums, golf courses and conference facilities.

Lowe, a national firm with offices in Seattle, Los Angeles and San Francisco and other cities, is an investment adviser, representing a list of institutional investors and currently manages more than $1 billion in real-estate assets.