The Tacoma City Council voted unanimously Tuesday to end a four-year court battle by selling two parking lots to the owner of Hotel Murano.
The owner of the Murano, KS Tacoma Holdings LLC, had mounted a political and legal battle to stop a competitor from building a 104-room hotel on downtown Tacoma’s Thea Foss Waterway.
Mayor Marilyn Strickland called the settlement a “smart deal.”
“This removes a lot of impediment to progress for our downtown core,” Strickland said. “I think this is a pretty good thing for Tacoma.”
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Tacoma City Councilman David Boe said he supported the deal to get the parking-lot properties back on the tax rolls. Nearly half of the land downtown does not generate tax revenue because it is owned by governments or nonprofits, he said.
“I personally see this as a great move forward,” Boe said.
The two lots, south of the Murano, were appraised at $1.34 million but are valued on the county’s tax rolls at about $3 million. The Murano leases the two lots for $1 per year and has about 30 years remaining on the lease, which drags down the value of the land.
KS Tacoma will buy the two lots for $1.25 million.
The agreement states that the Murano owners will not sue to block the proposed hotel on the Foss, nor another one south of the Tacoma Convention & Trade Center.
Kate Martin: 253-597-8542 email@example.com @KateReports