European Waterpark, Wellness Resort Seeking D.C Sites For Huge First U.S. Location
A European company that builds massive, wellness-focused resorts is looking for sites in D.C. in a move that could have major economic implications for the city.
Therme Group, which operates four locations in Romania and Germany and has plans for five more locations across Asia, Europe and Canada, is searching for its first location in the U.S.
It signed a one-year agreement to work with D.C. officials to identify locations in the city, during which time it won’t search in the Maryland and Virginia suburbs, Mayor Muriel Bowser and the company announced Thursday.
The resort operator offers pay-as-you-go retreats with waterpark features, saunas, dining, exercise facilities, and arts and culture programming. For its D.C. location, Therme is looking for a large site where it could build a 450K SF to 600K SF resort, The Washington Post reported.
Bowser’s office estimates the facility would bring 5,000 construction jobs over a two-year period, 700 to 800 permanent jobs and some $1.1B in nominal tax revenue over 25 years.
“We know that people are the key to our city’s comeback, and people want experiences that are fun, that support health and wellness, and that are different than what we already have in the region,” Bowser said in a release.
“In addition to creating a new experience, this will also create more jobs for DC residents and more support for local businesses. All of that is critical to our comeback.”
The company is also looking for sites in other parts of the U.S., but it has made D.C. a priority in its expansion into the country, the Washington Business Journal reported. Therme Chief Development Officer Omar Toro-Vaca said in a written statement to Bisnow that it is also looking at Los Angeles and Dallas.
“The cultural wealth and diversity of the nation’s capital makes it the perfect place to introduce the United States to our holistic model of urban recreation and rejuvenation,” Toro-Vaca said in a release. “We look forward to collaborating with the community and District leaders to develop a civic asset that connects Washingtonians and visitors alike with a new approach to health, nature, and community.”
The company’s plans in Canada have received backlash over public funding associated with the project, and some D.C. community members have already begun to express skepticism on Twitter about the agreement.
The District government hasn’t committed to offer any economic incentives in its agreement with Therme, spokesperson Richard Livingstone told Bisnow.
“Rather, our agreement calls for the District and Therme to work cooperatively to find a location and the District will support by facilitating meetings and making appropriate introductions as Therme proceeds through their stakeholder engagement work,” Livingstone wrote in an email.
Therme’s first North American location is planned for Toronto’s Ontario Park, a 115-acre waterfront public park and entertainment site. The project is expected to cost $259M.
That plan has received criticism about the use of public land for a private facility as well as the cost to the taxpayer – up to roughly $148M in infrastructure spending to get the site ready for the Therme project and other developments. The government could also possibly foot the bill for the 2,100-car parking garage.
In response, Therme is putting up the funding itself for nearly 12 acres of open space as part of a 60-acre park that the city is creating next to the resort as part of this effort.
“Ontario is taking this opportunity to rebuild, create much better flood resilience on the waterfront and is creating aspects of the infrastructure that will both support the public park components but also the private partnerships,” Diamond Schmitt principal Gary McCluskie, an architect who is designing the Toronto facility, told Bisnow in an interview Thursday.
“They’re just creating a great infrastructure for this piece of the waterfront for the next several hundred years. So I think the timing is really logical to me.”
McCluskie expects Toronto's review process for the 750K SF facility to wrap up by the end of the year and construction to start in early 2024. Preparation of the land is underway. He told Bisnow the design is “inspired by the natural environment that we’re located in.”
Therme has already put together a U.S. team, according to its website, led by former HR&A Advisors Chairman John Alschuler.
In addition to the U.S. and Canada, Therme has locations planned in Frankfurt, Germany, Glasgow, Scotland, Manchester, UK, and Incheon, South Korea.
