WATSONVILLE — A Watsonville development company will break ground in August on a project that will add a hotel, a restaurant and two small shops to Watsonville.

Elite Development President Jagjit “Juggy” Tut estimated that the project will be completed sometime in fall 2018.

The company purchased the 7.3-acre parcel on West Beach Street in 2015. The property once held the Indalex aluminum plant.

Workers on Thursday were crushing the plant’s old concrete foundation, which will be used for the project’s new foundation.

Tut said the company will choose a contractor for the project next week. It is unclear which businesses will occupy the eventual restaurant, gas station and hotel.

Meanwhile, the company’s 48-unit townhouse project at 35 Harkins Slough Road will wrap up in about a year, Tut said.

The Watsonville City Council approved that project in June 2015.

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