RENOVATION. The city of Tacoma and developers will decide the future of the Winthrop. Affordable housing or a world class hotel are in the offerings. (Photo BY HARALD HOHENDORF)
The Winthrop Apartments building is drawing new interests from developers who want to purchase it and convert it back to its original use as a hotel.
Oakland developer A.F. Evans had an agreement with the building’s owner to purchase it. It received approval from the state for a loan that was a key part of a financing package in June, but its purchase option expired at the end of July.
Delays occurred in the approval of the funding, including opposition from some city council members and a restructuring of the Evans partnership that led to additional approval for the loan. During that time construction costs escalated, and the Oakland developer was not able to assemble all of its financing in time to purchase the Winthrop.
City Manager Eric Anderson said several developers have expressed interest in buying the Winthrop and converting it to a hotel. For such interest to be considered serious, a developer would need a purchase agreement before the city would consider any requests for public financing.
“It would not be appropriate to take a project forward when they do not have control of the property,” Anderson said, noting he has been discussing inquiries about the Winthrop with city council members.
Evans planned to renovate the building, keeping most of the units reserved for low-income individuals and adding some market rate apartments.
Developers seeking government funds for a hotel would tap into a different funding stream than for affordable housing, Anderson said. A likely candidate would be federal Urban Development Action Grants, which have been used to finance the Tacoma Sheraton Hotel.
The developer generating the most interest at city hall is Tim Quigg of Aberdeen-based Quigg Brothers, Inc.
Quigg is talking about spending as much as $40 million to renovate the building, plus another $30 million for a parking garage and to relocate current residents.
Anderson noted that finding replacement housing for tenants is an important part of any hotel proposal.
Quigg lives in Gig Harbor and has closely followed news about the Winthrop. He envisions bringing it back to its glory days as the city’s finest hotel. “I want to bring the structure back to its designed intent. I want to do what the original guys did, have this as a four-star hotel,” he commented.
He thinks retail space on the ground floor would be ideal for a spa, flower shop and jewelry store, things one would fine on a cruise ship.
“You have to look at it like a top-quality cruise liner, but without the seasickness,” he said.
Quigg is involved in a current effort to restore the old Morck Hotel in Aberdeen.
Quigg doesn’t feel the building is appropriate for low-income housing. Late last year, city inspectors found numerous fire and safety violations in the building. One reason the city didn’t close the building was because there are many poor senior citizens living at the Winthrop with nowhere else to live.
“This is not the best use of the building,” Quigg said. “The best thing for these residents would be to relocate them. This is not a humane living condition. We can do better than this when it comes to housing the poor.
“The character of a city is defined by its finest hotel,” he added.
With a proper renovation, Quigg feels the Winthrop would have a nicer lobby than the famed Waldorf-Astoria in New York City.
He has been to the penthouse on top, which has its own elevator. “It is amazing,” he remarked.
Quigg said many upscale business travelers simply don’t stay in Tacoma hotels, opting to stay in Seattle instead. He feels this hurts Tacoma’s ability to attract companies.
“You have to have a four-star hotel,” he commented. “The Winthrop was built to be the place to do the deals.”
A restored Winthrop Hotel would employ between 200 and 300 people, Quigg estimated.
Quigg is meeting with attorneys and assembling a team of people to help him determine whether to pursue the project. They are putting together a purchase offer and hope to reserve the right to buy it for 120 days. He gathers his associates for early morning meetings at the Tully’s across the street so they can see the building while they converse.
“This is quite a complex opportunity,” Quigg remarked. “This would be a very sophisticated transaction.”
Quigg wants to use Tacoma-area architects, bankers and other professionals on the project, rather than bring in people from Seattle.
“There has to be enough talent here to do this,” he commented.
