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