A controversial hotel project in downtown Petaluma is shrinking in size, even as a dispute over a massive city bill grows.
Per the Press Democrat, developer EKN Development has signaled it is moving away from its original six-story hotel plan, calling it “unviable” due to an upcoming 2026 ballot measure aimed at blocking larger downtown buildings. In its place, the developer has submitted a smaller, four-story proposal for the corner of Petaluma Boulevard and B Street.
However, the project is currently at a standstill. The city of Petaluma says the developer owes over $765,000 for past analysis and staff work—a bill EKN is now disputing. City officials say they will not begin reviewing the new, smaller plan until a payment agreement is reached.
The revised plan features a 56-room boutique hotel with a rooftop restaurant and a basement speakeasy.
