Former Red Lion Hotel just cost Renton taxpayers another $600,000

An agenda bill at Monday’s Council Meeting announced that Renton taxpayers will have to pay even more money for having hosted a King County Shelter in our former Red Lion Hotel.

 

Renton’s former Red Lion Hotel and Convention Center, once a vital anchor of our Renton Village Shopping Center before it got destroyed during use as a pandemic-era shelter, continues to cost Renton taxpayers money.  As of this week the hotel will cost Renton taxpayers another $600,000, and will cost Renton’s insurance carrier another $900,000, for a total of $1.5 million.  The money settles a lawsuit that the hotel owners filed against Renton asserting that Renton’s 2020 zoning changes, which restricted the size of homeless shelters, lessened their opportunities and profits on the property.

While I have not been party to the legal negotiations and won’t comment to the validity of any of their specific claims, I will point out that the public record shows they purchased the hotel for about $8.8 million, and sold it to King County less than ten years later for $36.2 million.  This represents more than 400 % return, or about 40% per year on their investment.  They also reportedly rented the property to King County for $330,000 per month for several years, for an additional payoff of somewhere between 6-10 million dollars.

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School District begins tearing down homes, five years before baseball field will replace them

The historic Renton home at 312 South Tobin Street in its final hour

312 South Tobin Street after demoliton

Please see my previous blog entry on this topic, “School District Plans to tear down neighborhood before they get building approval,” for background and links to documents.

In the midst of a statewide housing crisis, Renton School District has begun tearing down homes for a ballfield that won’t open until 2030.  Ten homes on the block are still in legal dispute, but the residents of these homes will soon be surrounded by weeds and broken concrete where they used to have neighbors. Those opposed to the School District’s actions have suggested this is why the School District is moving so fast– to destroy the neighborhood so the remaining owners feel compelled to move, while lowering their property values.  The school district plans to tear down 32 single-family homes along with eight businesses.

No permits for a new school have been issued, and the Renton City Council has never taken a vote on whether to vacate any of the public streets that would be necessary to complete their plan.  So by tearing down the neighborhood, the School Board has chosen to “force the hand” of city government to grant all of their future requests or else forever live with the blight of a demolished block of houses where a vital neighborhood once stood.

The demolition of the houses is also an end-run around the new Houston Eminent Domain Fairness Act  recently unanimously passed by both houses of the state legislature. The act was named after the Houston family in Renton who lost their property to the Renton School District in the 1960s, and then watched it get sold for a profit.  The act requires the School District to sell back property taken by threat of eminent domain to the previous owners for the original purchase amount if it is not used for its proposed public purpose.  By demolishing the homes on the land before any building permits are issued, the School District has ensured that the owners can not get their homes back even if the district is unable to build, defeating the intent of the State Legislature.

 

Other homes on the right of these signs will soon be getting demolished. The elimination of the neighborhood will put Renton High adjacent to the Renton Airport. (The building at the end of the street is an airport building that will remain.)

 

The project schedule shows the new high school, including the new ballfields where this home is being torn down, will not be complete until late in 2030– over five years from now.

 

School District plans to demolish neighborhood before they get building approval

The School District is rushing its application to demolish homes on the newly acquired property near Renton High School.  They’re in such a hurry they have not even formally halted a six-year project that was about to build thirty new apartments on Airport Way in the “Dreamliner” project (where they now plan to move the baseball field).  The project board for the School District’s demolition plan is now posted next to the project board for the Dreamliner.
The Dreamliner Apartment Project has been in the formal approval and permitting process since 2018, and was soon to bring 30 desperately-needed new apartments to Airport Way. But the School District recently purchased this property under threat of eminent domain, and plans to include this property in their relocated baseball field.  They’ve also taken 32 houses and 8 businesses for this purpose.

Renton School District has only a rough concept for their new high school, and they still have to go to court to try to attempt to acquire the final ten properties they want.  They also have not begun any formal building plan process, or conducted an important archeological review, or consulted with the FAA about their planned new sports track in the Runway Protection  Zone, or initiated the public process required for the City of Renton to vacate South Tobin St, South Tillicum, and Shattuck Ave South.

But none of these important public process elements appear to be slowing down the School District in tearing down the checker-board of homes and businesses they’ve been able to acquire, in an effort that some people feel is intended to make it impossible to save the neighborhood while lowering the value of properties that the District has not purchased yet.

Even worse, the immediate tearing down of the homes before the project is formally approved is an end-run around the recently approved Houston Eminent Domain Fairness Act, which was passed unanimously this year by the legislature to assure that if property taken by a school district is not used for its intended purpose it will be sold back to the original owners.  How can it be sold back if it is destroyed?

By tearing down the homes they acquire under threat of eminent domain they eliminate the possibility of having to sell them back if their plans are not approved.  

Big public projects like a new high school require years of planning and approvals, and any number of steps could cause the project to go sideways.  This is especially true at the end of an airport, in an archeological sensitive area, near a salmon-bearing river, with a shallow water-table.  The School District themselves acknowledge that the building won’t be complete for about five more years, and that’s IF everything goes according to plan.

The current Renton High School is shown outlined in red. It sits at the confluence of the original Cedar River and the extinct Black River, the historic outlet of Lake Washington. Every salmon spawning in Lake Washington or its tributaries, or Cedar River or its tributaries, passed through this area until 1917 when the Ballard Locks were opened.  This site was cherished by indigenous residents for fishing and living for time immemorial. The property now being acquired by the School District includes the historic Cedar River bed and northern shore, and contains significant artifacts that should only be uncovered by trained archeologists. Heavy machinery use will be limited.

Under these circumstances the right thing to have done would have been to leave the neighborhood intact until construction is near, by either buying options on the properties or purchasing them outright and renting them back to the owners.  Purchasing them and tearing them down immediately, before they have an approved plan, unreasonably forces the hands of decision-makers downstream in the process and violates the spirit of proper public planning.

Out to bid; Renton School District is inviting bids to tear down some homes in the neighborhood while others are still contesting the eminent domain taking through the courts

Renton Resident Angie Laulainen spoke at last night’s Renton City Council Meeting on this topic, and she provided me a copy of her speaking notes.  I’ve included then below the cut:

Renton Resident Angie Laulainen speaks to Renton City Council on May 12, 2025

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King County purchases the former Renton Red Lion; future plans remain unclear

In my blog entry of November 30, I provided documents describing King County’s anticipated purchase of the former Renton Red Lion Hotel.  The documents show the County was choosing to purchase the damaged hotel  instead of repairing it to save cost.  Their future plans for the building and the site were not revealed.

That purchase was recently completed, and the questions have not been answered regarding their intended use for the property.

Here is a news story announcing the purchase.

 

https://www.connectcre.com/stories/king-county-buys-former-hotel-in-renton-for-36m/

King County makes plans to buy Red Lion Hotel; former Mayor Denis Law asks County to improve collaboration

Renton’s former Red Lion Hotel remains boarded-up after being used as an emergency shelter during the pandemic

 

Former Mayor Denis Law received news that King County is preparing to buy the Red Lion Hotel, and he has written to two of our County Councilmembers to ask them to help improve inter-agency collaboration. King County’s plans appear to be intended to relieve the County of further ongoing costs, while failing to return a hotel in serviceable condition.  Per King County documents:  This property is being purchased to relieve the County of liabilities associated with the License Agreement. The property previously operated as a hotel at this location, is currently vacant, and there are no known plans for the property to be used at this time.

The news that the hotel will likely be purchased by King County with no specific plan to make the property productive motivated former-Mayor Law to speak out for Renton on this topic.  Here’s his full letter to Council Members Upthegrove and Dunn.

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Dear Dave and Reagan,

As you are well aware, the homelessness crisis in this state continues to be one of the most frustrating issues with the public. Despite spending literally billions of dollars in tax dollars, the numbers continue to grow. There obviously are no easy solutions but one thing is certain: merely dedicating billions of taxpayer dollars has not made any progress to date.

I strongly feel that a poorly executed plan to decentralize Seattle’s homeless to suburban cities during the beginning of the COVID crisis, including taking over a hotel in Renton, proved to be a total failure that continues to cost taxpayers millions of dollars. This is only one of many such projects and we’re talking about millions of dollars for the Renton location alone.

As you know, the County, operating under a, “declaration of emergency,” took over the Renton Red Lion Hotel in April, 2020, to house up to 200 chronic homeless individuals with a goal to help stop the spread of COVID. This was done with no input from city leaders, which was legal due to the emergency declaration, but totally inappropriate and lacked in any sense of collaboration. To be fair, the COVID crisis was an emergency since everything was shutting down as the pandemic and fear spread like wildfire across the country. However, there was no effective plan of managing and serving this population that was relocated to the hotel and the consequence was considerable. Renton police and fire were overwhelmed with emergency calls for service at the hotel, from arson fires to assaults and other crimes. Local businesses were severIy impacted and in the end, upwards of $18 million dollars in damage was done to the hotel. The county’s contract agreement with hotel owners obligates you to return the hotel to its original condition, which has created another very costly challenge.

The homeless tenants were moved out of the facility within 16 to 18 months, around September of 2021. Fast forward to today, 26 months later, and the hotel remains boarded-up and surrounded by cyclone fencing. This is a major gateway to the city and has remained an eyesore for all this time. To make it worse, the County has continued to pay the owners of the hotel $330,700 per month in lease payments, more than $8.5 million since the buildings were vacated.

I must admit that the numbers I have may not be totally accurate, but they have not been disputed during conversations I have had with a couple county council members. The reason for my angst now, in addition to the hotel remaining an eyesore at the entrance to Renton, is a proposal before the county council to purchase the building. It’s my understanding that this is due to the huge amount of money required to repair the building, and there is no reasonable way the county can justify paying these repair costs and come away with nothing. The purchase price is $36,200,000 and to my knowledge, there has been no public discussion regarding this expenditure. This price is essentially for only the land since it’s likely the buildings would need to be demolished for new development. Here is some of the justification made to the county council for authorizing this purchase:

King County’s “Rationale for transaction:” Under the License Agreement the County is responsible for damages caused by the County’s use. While being used as a quarantine site during the COVID-19 pandemic, guest rooms, and common areas were extensively damaged. Damage ranges from broken furnishings such as mirrors and lighting, to soiled carpeting, to water damage due to demising walls and ceilings from over run toilets and bathtubs. There is also damage from an intentionally set fire in November of 2020. The estimated cost to restore the property to the condition contemplated by the License is $17,920,000. In addition, the County is paying $330,700 per month under the terms of the License. Acquisition of the property will relieve the County of the liabilities of the License.

In the end, taxpayers will pay upwards of $70 million dollars or more for this one initiative to address homelessness in King County. There’s no accounting on how many other similar scenarios exist, and not a surprise that billions of additional tax dollars continue to be budgeted by the state, King County and Seattle to address homelessness. There have been a number of initiatives created by these entities that have been disbanded due to a lack of funding or adequate outcomes. Again, there is no question that this is a very complex crisis, but there seems to be a need for better collaboration between government agencies as well as more public transparency on total costs and results.

I appreciate that you both have taken steps in the past to address the negative impact this effort has had on the Renton community and local businesses. It seems apparent at this point the county has few options remaining other than spending millions more to resolve the Red Lion issue. Finally, I feel it’s totally inaccurate and unfair for housing advocates to label cities as uncaring or unwilling to help vulnerable populations when they challenge the process of addressing homelessness.

I strongly encourage you to work with Renton’s elected officials on future plans for the Red Lion site.

Thank you.

Denis Law

Mixed-messages from Burien leaders regarding Econo Lodge prompt letter from Kennydale Neighborhood

The Kennydale Econo Lodge/Inn at Lake Washington is owned by REBLX Partners, and has been discussed as a possible homeless services site for Burien

 

Two days ago the Kennydale Neighborhood Association sent a letter to Burien leadership requesting that the City of Burien remove the Econo Lodge from consideration for relocation of their residents experiencing homelessness.

According to the B-Town blog, a Burien-based blog which provides in-depth city hall coverage, this letter was met with some confusion by at least one Burien council member:

“Why is it you think we are considering sending them to Renton?” Councilmember Stephanie Mora said to the KNA via email. “As far as I know there is only one property we are considering using that’s here in the city of Burien. Please help me understand what I might be missing.”

It’s commendable Councilmember Mora spoke up and asked this important question.  The answer to Councilmember Mora’s question is that the City of Burien website displays an August 1st news release which (as of today) says:

False information is circulating throughout the community that accuses the Burien City Council of rejecting an offer of $1 million from King County for the purpose of establishing a site for temporary housing.

The Burien City Council did not reject the offer presented by King County; the offer is not contingent upon a vote of acceptance by the Burien City Council and remains available through the King County Regional Homelessness Authority (KCRHA). The Burien City Council remains committed to exploring fully the issue of temporary housing for the unhoused community and directed the City Manager to investigate potential partnerships and sites in and outside the city of Burien.

City personnel have identified several potential sites, including a facility operated by REBLX, a partner agency of KCRHA.  All sites remain under consideration until an exhaustive review has been completed by City personnel and shared with the City Council.

[Emphasis added; the REBLX site is the Kennydale Econo Lodge/Inn at Lake Washington]

The only subsequent news releases (as of today) on Burien’s website are concerning Planning Commission applications and Burien’s Welcoming Week.

Hence, anyone reading the news from Burien’s administration can reasonably assume that the REBLX/Econo Lodge site is still under consideration, and that information to the contrary is false Information (in the words of Burien’s City Manager’s Office.)

Kennydale residents will be relieved to hear that at least one Burien Council member is not considering the Renton Econo Lodge a viable solution, and Kennydale residents would be even more relieved if the Burien Administration superseded their August 1st statement with a new press release saying that the REBLX site is off the table.

While some Burien leaders may feel they have already clarified this, a KOMO news story last week implies Burien has not completed the “exhaustive review” to find shelter space that they called for in their news release.

Per KOMO on September 26: “What are the shelter options that we have? I think that’s the very crucial next step,” Mora explained.

 

Current screenshot from Burien’s official “News and Announcements” page

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[For additional background on this story, click here]

I’ve included the letter from KNA below:

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King County Regional Homelessness Authority, in time of turbulence, presents to Renton City Council

The City of Renton has been a regional leader in affordable housing for decades, and I’ve covered the topic many times (here is the latest entry).  KCRHA is a county-wide organization that is intended to oversee the County’s homelessness response.

The King County Regional Homelessness Authority (KCRHA) gave a presentation to Renton City Council last week, after a turbulent month that saw their CEO resign and a call by King County Council Member Reagan Dunn that their organization be disbanded.  This was a few months after they published a draft 5-year plan with a staggering price tag of $25 billion over five years for temporary housing, with still more tens-of-billions of dollars needed for permanent housing.  While they later walked this plan back, confidence in the organization was widely shaken.

Their 30-pages of written materials are available here, and video of their 42-minute presentation to Renton Council can be viewed here.

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Almost a fourth of Renton’s hotel rooms no longer available for travelers, compared to just 4% countywide

Renton is building hundreds of affordable units as part of this Solera project in the Highlands
Renton Housing Authority is building Sunset Gardens,  76 units for homeless veterans, seniors, and other people in need.  (This picture and the one above both taken today)

 

Renton has worked hard for decades to reduce homelessness and has delivered results that can’t be beat by any other city.  Yet too many Seattle-based policy makers have falsely accused Renton of not doing a fair share. Lately, these policy makers have been trying to divert money from Renton Housing Authority, and they’re taking more of Renton’s hotels to house Seattle residents instead of using Seattle hotels. They’ve now taken almost 1/4 of Renton’s hotel rooms out of commission, hurting Renton’s commerce, reducing options for visitors, reducing options for Renton’s own unsheltered residents, and reducing lodging tax which Renton needs for marketing. On average other King County cities have given just 1/25 of their hotel rooms.

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