Port of Olympia punts on sale of hotel Housing Authority wants for senior housing
If there was any doubt about where the Port of Olympia stood on a hotel owner’s efforts to sell her property to the Housing Authority of Thurston County, Port Commissioners clarified their stance this week.
Chami Ro, owner of the Oyo Hotel in Tumwater, has been trying to sell her building to the Housing Authority. Ro reached a tentative $3.3 million deal in April that would have allowed the building to be converted into housing for 58 low-income seniors, a fraction of the price of new construction.
But her goal has met resistance from the Port, which owns the land underneath the Oyo — and 13% of Tumwater, making it the city’s largest landowner.
Because the hotel sits on property adjacent to Olympia Regional Airport, it is encumbered by Federal Aviation Administration (FAA) rules that restrict land near airports from being used for “residential” purposes.
The Port received specific instructions from the FAA on June 29 detailing how to seek an exemption that would allow the sale to advance, but despite six months of campaigning by Ro and Housing Authority Director Craig Chance, as well as significant public outcry, the Port hasn’t taken action.
Port leadership confirmed on Monday that they won’t pursue the issue.
“I don’t care to pursue it,” said Commissioner Joe Downing at a port meeting on Nov. 8. “My position is to punt this to the next Port Commission and see what happens, and see if Chami — I don’t know her last name — see if she sells it.”
The topic was not on the agenda for the Port’s four-hour meeting on Monday, but was raised during “other business” by Commissioner E.J. Zita, who supports Ro’s efforts to advance the sale.
A short discussion followed in which Executive Director Sam Gibboney claimed that because Ro is in the process of selling the Oyo, pursuing the FAA waiver would “interfere” with Ro’s business decisions. Commissioner Bill McGregor then suggested that the Port could expose itself to a lawsuit for even discussing the matter during a public meeting.
Ro, who later viewed a recording of the meeting, told The Olympian she was stunned at the misrepresentation of her long-held objective: selling her property to the Housing Authority. She called Gibboney and McGregor’s statements “irresponsible” and a “ridiculous excuse.”
Gibboney also said at the meeting that the FAA exemption would require staff effort and cost “tens of thousands” of dollars, although she did not say for what.
Zita balked at this, calling that amount of money “peanuts” within the Port’s budget.
“If we’re going to let that stop us from considering a possibility of housing indigent seniors with an underutilized, underperforming asset, I would really have to question our priorities,” Zita said.
McGregor then said he was tired and didn’t feel like discussing the matter. “Question them, then, I guess, that’s all I can tell you,” McGregor replied.
Zita and McGregor will be leaving the Port Commission at the end of the year, and will be replaced by Bob Iyall, a Nisqually Tribal Elder and the chief executive officer of Medicine Creek Enterprise Corporation, and commercial real estate broker Amy Evans.
Reached by The Olympian on Friday, Gibboney defended her statements and said Ro had not notified the Port of a “purchase and sale agreement” with the Housing Authority.
“The only thing that we have is that she has her property listed with a broker, which means that there are potentially multiple buyers out there and there has been contact with definitely at least one other buyer,” Gibboney said. “And so it is inappropriate for us to favor one buyer over the other.”
The Housing Authority previously had an “intent to purchase” agreement, which is less formal, but that has since expired.
Chance, the Housing Authority director, is left increasingly bewildered by the Port’s handling of the situation. He’s gone as far as offering to pay for any third-party costs the Port may encounter, such as appraisals. But he suspects that nothing will make a difference.
“I’m beginning to think, is all this fuss about the FAA a ruse, and is there something else we ought to know?” Chance said.
This story was originally published November 14, 2021 at 5:00 AM.
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