Article and Photo by Todd Matthews

Two developers aiming to turn an 80-year-old, 12-story building into a four-star hotel drew several dozen people today to an early-morning meeting to discuss the status of their project. Architects, engineers, affordable housing advocates, city staff, Tacoma residents, and even a documentary filmmaker arrived at 6:30 a.m. for the developers' weekly, early-morning meeting -- a forum started with just four people three months ago and now growing with Tacomans interested in seeing the building restored to a historic hotel.

Developer Chester Trabucco announced he and fellow developer Tim Quigg formed a development group -- Citizens Hotel LLC -- and deposited $250,000 into an escrow account Friday in the hopes of raising enough money to purchase the building for $6.1 million before a purchase agreement with another developer expires Oct. 19.

Developers Chester Trabucco and Tim Quigg outside the Winthrop Hotel in downtown Tacoma. The pair hopes to raise enough money to purchase the 80-year-old building and turn it into a four-star hotel.

Trabucco also revealed that two local businesses -- general contractor Absher Construction and commercial realtor Neil Walter -- have stepped forward to partner with the group. The two businesses join Coast Hotels as another firm currently working with Trabucco and Quigg.

"I think now we have some real muscle behind us," said Trabucco. "We have new partners, we can identify them now, and we're really coming together."

Currently, two developers are pursuing separate options for the 194-unit Winthrop building that currently serves low-income, affordable housing residents downtown.

Developer AF Evans, which has a purchase agreement with the building's owner, Al Hanson, wants to convert the building into a blended mix of market-rate condominiums and low-income, affordable housing. Citizens Hotel wants to turn the building into a four-star hotel, and create 250 units of affordable housing elsewhere for current Winthrop residents who stand to be displaced.

On Sept. 19, the two developers agreed to a letter of intent giving Citizens Hotel 30 days to assemble investors and purchase the building. The deal was contingent upon Tacoma City Council passing a resolution that evening directing the city manager to negotiate a $1 million Urban Development Action Grant loan with AF Evans should hotel development plans fail. A sharply divided Tacoma City Council voted 5-4 in favor of the resolution.

According to Trabucco, the $250,000 deposit becomes non-refundable Oct. 19. At that point, the group has another 30 days to deposit an additional $750,000. "That should be the point in which we are obviously fully committed to management of the building," added Trabucco. "We're still putting all of that together."

The development deal has brought together a number of groups with seemingly different interests. Long-time Tacomans, as well as local history buffs, want to see the Winthrop restored to its so-called former glory. Meanwhile, advocates for low-income and affordable housing in Tacoma are drawn to the project by its promise to create 250 new affordable housing units in Tacoma. Similarly, many merchants around the Winthrop hope that a change of purpose for the building will lead to less crime and more shoppers to an area they complain is rife with drug-dealing, prostitution, and other public safety issues because the building is poorly managed.

During today's meeting, Jeff Robinson, chair of the Tacoma/Pierce County Affordable Housing Consortium steering committee, read a letter expressing the group's support for the Citizens Hotel plan.

"We believe downtown has a win-win-win situation for the residents, for the city and economic development objectives, and for this community," said Robinson. "We commend the leadership of the Quigg/Trabucco team in realizing that for this project to be truly successful, there must be a meaningful solution to the permanent housing of the current residents. The team is committed not only to the replacement of the current management of the Winthtrop, [but also to a] goal to do even more -- find a way to create 250 units of affordable housing throughout the community. The personal and corporate values this represents cannot be understated."

Though the meeting was largely optimistic and hopeful, Trabucco was quick to remind attendees that focus right now is on finding investors who will pitch in to help purchase the building.

"I'm really focusing for the next three weeks on the pragmatics," said Trabucco. "Right now, we have to deal with securing the building. We do not own the building. We have an option on the building, and we have 24 days left now of due diligence in that time period. Once we secure the building, then the planning becomes a lot more fun when we're actually sitting here as owner of the building as opposed to someone putting these things together in the hopes that will happen."

This article originally appeared in the 25 September 2006 edition of the Tacoma Daily Index