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Citing public pressure, Port Commission says it will look into Oyo Hotel sale for housing

Port of Olympia Commissioner Joe Downing had a change of heart this week.

After saying on Nov. 8 that he was content to “punt” on a Tumwater hotel owner’s request for approval to sell her building to the Housing Authority of Thurston County (HATC), Downing now says he wants the Port to act.

At a work session on Monday, Nov. 15, he acknowledged “public outcry” sparked by The Olympian’s previous reporting made the issue too big to ignore.

“Did we ever have a Port issue — I’m sure not since the military cargo have we had two pages in The Olympian above the fold on the front page about the same Port topic,” Downing said.

The Port became aware in April of a tentative $3.3 million deal struck between HATC and Oyo Hotel owner Chami Ro to convert the building into housing for 58 low-income seniors. That is a fraction of the price of new construction for such housing.

But because the hotel sits on property owned by the Port and 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 Chance, as well as significant public comment sent to the Port following an Oct. 25 article in The Olympian, the port has not taken action.

Another Olympian story published on Sunday, Nov. 14, about Ro’s frustration prompted Downing’s comments.

While he doesn’t have high hopes that the FAA will approve the request, Downing told the Port Commission he spent the past week talking with Tumwater Mayor Pete Kmet and Housing Authority Director Craig Chance, and he now wants the Port to “do the legwork” to find out.

“I don’t know if we can do it or not, but it’s one of the few places that the Port has even come close to interfacing with a community issue,” Downing said. “I think we owe that to the community.”

Commissioner Bill McGregor said he had questions on “some of the terminology” but would support putting the item on a future agenda.

“I don’t know if I dare get my hopes up,” said Commissioner E.J. Zita, who had been the only Port Commissioner to show interest in supporting Ro’s efforts.

Downing asked Executive Director Sam Gibboney to return to the Commission Monday, Nov. 22 with a timeline and an estimate of cost and staff time required to respond to the instructions provided by the FAA.

Oyo Hotel in Tumwater,Wa.
Oyo Hotel in Tumwater,Wa. Steve Bloom sbloom@theolympian.com

This story was originally published November 18, 2021 at 10:50 AM.

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Brandon Block
The Olympian
Brandon Block is The Olympian’s Housing and Homelessness Reporter. He is a Corps Member with Report For America, a national service program that places journalists into local newsrooms.
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