Costs of downtown Redmond hotel renovation soar

Renovations to the Historic Redmond Hotel in downtown Redmond are going to cost much more than expected. From about $3 million estimated less than a year ago, the cost has risen to nearly $7 million.

The future of the downtown Redmond Hotel built in 1928, rests in the hands of the City Council.

Plans to develop the historic building have stalled after new estimates put the cost at about $6.9 million.

Those plans included 48 hotel rooms, a rooftop bar, a co-working space and a natural foods market.

Originally, the city was told the project would cost about $2.8 million, but after a local construction company was brought in to re-evaluate the project, that estimate increased dramatically.

Steve Buettner, president of Sunwest Builders, said Friday he doesn’t know how the original numbers were calculated, but he believes the renovation is important to the community.

“At the end of the day, this building has been sitting vacant for several years, and I think it’s a real catalyst for the community,” Buettner said. “So I think the community and the city, everyone is supportive of the project. Of course, cost is a concern, and that’s what we’ll talk about on Tuesday — what the community and what the city is getting for the cost.”

Extra costs come from installing a rooftop sprinkler system, extending the elevator to the rooftop and fixing the plumbing and electrical systems, as well as increasing labor costs.

In order to keep the development moving forward, the city will need to approve an additional $3.5 million from the urban renewal fund, which is generated through property taxes in a process called tax-increment financing.

The Redmond City Council will be discussing options at a public hearing next Tuesday.

So now, the urban renewal committee is asking the city to invest about $3.5 million into the project instead of the $670,000 initially promised.

City Manager Keith Witcosky said Redmond could choose to invest less, but they don’t want quality to suffer.

“We want community members and anyone when they walk through that hotel a year from now, when it’s open, to experience a first-class product,” Witcosky said. “And if there are shortcuts taken, let’s say the bathtubs are stained or the windows are shabby, that’s not going to be good. We want to make a good first impression, and we want to make an investment that leads to that.”

Witcosky said the resources are available and no other projects should suffer, but there’s always a give-and-take when funding big projects.

If the city agrees to fund the project, the renovations will continue, and by next summer, the hotel rooftop bar could open. By next winter, the 48 hotel rooms would open.