Washington state's plans to finance a new Thurston County homeless shelter have started to come into focus after local officials raised concerns about their involvement.
In meetings last week, County Manager Ramiro Chavez said the state Department of Commerce plans to directly contract with a provider to buy a hotel, rather than work through the county. This yet-undisclosed hotel would house people displaced by camp sweeps along the freeway.
"The result of having a direct contract with the provider and having the jurisdictions outside, it doesn't give us the leverage to address the wider context," Chavez said last week. "And that raises concerns."
The state's direction represents a departure from the proposal regional officials submitted in response to Gov. Jay Inslee's rights-of-way initiative. In response, Chavez and other local officials met with Commerce officials on Monday to clarify how the hotel would be acquired and managed.
On Tuesday, Chavez said the state still plans to partner with Thurston County and Lacey to define how the hotel will be operated. The three parties intend to draft a memorandum of understanding on the topic soon, Chavez told the Board of County Commissioners.
"It was very encouraging for me," Chavez said. "They opened up the door to have the MoU signed ... and that will also open up an opportunity to include some language in the contract they may have at the time they purchase the hotel with their provider."
Chavez said the state chose to bypass working through the county to buy the hotel because of a funding source policy. He said this policy requires them to contract directly with a provider.
Penny Thomas, a Commerce spokesperson, said the acquisition plans are still in flux but confirmed the department "fundamentally" contracts housing funds in this way.
County officials have been careful not to publicly disclose which hotel will be acquired given the ongoing negotiations. However, Chavez has indicated Lacey officials are involved and Thomas said the state believes the property is in Lacey.
How Will This Work?
Though the state will finance the hotel acquisition, Chavez said the county will still have a role. He said the money to operate the hotel will go to the county and the county will then contract with a provider.
The Department of Commerce previously agreed to the county's proposal to purchase the hotel. This preliminary agreement included $15 million to buy the hotel, $5 million to rehabilitate the hotel and $2 million annually for two years of operating costs, The Olympian previously reported.
Commerce's Thomas confirmed Commerce still intends to spend those sums of money, regardless of whether the county is directly involved in the hotel acquisition. However, Thomas stressed these plans have yet to be finalized.
The regional proposal included plans to eventually convert the hotel into permanent housing around 2025. However, the state's recent direction caused some officials to worry it may affect the county's plans to use it as a long-term resource for the region.
County Commissioner Carolina Mejia asked Chavez what would stop the new owner of the hotel from making agreements with other counties once the rights-of-way initiative ends.
Chavez said he believes the planned agreements will be a "strong instrument" to ensure the facility serves Thurston County residents in the long-term rather than the wider region. He said the contracts will include language speaking to that intent.
Tom Webster, manager of the Thurston County Office of Housing and Homeless Prevention, said he expects there to be restrictive covenants on the property, to ensure the provider follows the county's intent.
Local Officials Weigh In
Local officials weighed in on the state's changing plans during a Regional Housing Council meeting last week.
Webster indicated the state may contract with Low Income Housing Institute (LIHI), a non-profit developer.
LIHI has worked on shelter projects in Thurston County before, including partnering with Interfaith Works to create Unity Commons at 2828 Martin Way.
However, Chavez told The Olympian the situation remains in flux and the state may choose a different provider at its own discretion.
During the RHC meeting, Chavez emphasized he views this property as an asset to Thurston County in the long-term.
"The intent, or at least has been from our understanding, is that we will be able to access that capacity and that particular hotel not just for the individuals within the states rights-of-way but within the county region," Chavez said.
Tumwater City Council member Michael Althauser said he hopes local jurisdictions can still work with the state on the hotel project. He said he thinks it would be easier to sell the idea to the public if there was widespread cooperation.
"I think it's a more powerful message when there is sort of this structural legal partnership between the cities, county and the state," Althauser said. "I think it shows unity that we are all on the same page."
Lacey City Council member Carolyn Cox echoed Althauser's point, saying it would be easier to respond to constituent concerns if there was some level of local control.
"There are bound to be issues that come up once this thing is up and running," Cox said. "It would be much more difficult to explain to the public, 'Well, yeah, it's here but we're not running it and there's not much we can do about it.' I think that puts us in a really awkward position."
Mejia said she felt frustrated when she first heard of the state's new direction, given all the work that went into a regional proposal.
"I'm very proud of the work that staff was able to do in such a short turnaround, and in an effort to put this proposal together at their request," Mejia said. "We're just wanting to be good partners and wanting them to be good partners as well."
