City of Tacoma Enters Into Negotiations With McMenamins to Develop Old City Hall

Tacoma, Wash. – Over the next several weeks, the City of Tacoma expects to negotiate development and lease/purchase agreements with McMenamins of Portland, Ore. to develop a 60-room boutique hotel; four small, signature bars showcasing the jailhouse, clock tower and rooftop greenhouse; a rooftop restaurant; soaking pools; community/private meeting and event spaces; and a gift shop at Old City Hall (625 South Commerce St.) in downtown Tacoma.

"We look forward to breathing new life into our iconic Old City Hall," said Mayor Marilyn Strickland. "McMenamins’ proposed development is compelling for several reasons. It advances the City's vision, will generate substantial revenue and create jobs, and will serve as a regional destination that will raise the Tacoma's profile."

“We fell in love with Old City Hall while going through the process of purchasing and planning for the Elks Lodge,” said Chief Executive Officer Michael McMenamin. “It was challenging to fit in everything we wanted to provide to the community within the Elks building. The Old City Hall building will allow us to do just that. It is a natural complement to the Elks Lodge, and needless to say a great building.”

While driving new investment into our downtown core, job creation and revenue generation, any agreements that result from these negotiations will align with the City Council's priorities of strengthening and maintaining a strong fiscal management position; strengthening and supporting public safety, human services, public education, and diverse higher learning opportunities in Tacoma; fostering neighborhood, community, and economic development vitality and sustainability; and encouraging and promoting an open, effective, results-oriented organization.

"McMenamins has indicated to the City that they would consider a purchase of Old City Hall within three years of the initial lease which would potentially begin in 2016,” said City Manager T.C. Broadnax. “In 2016-2017, they plan to finish renovating the Elks Building, and subsequently complete renovating Old City Hall by the fall of 2019. Their financing plan included developer equity and it enables the City to recoup its investment."

On June 19, 2015, the City purchased Old City Hall in downtown Tacoma for $4 million to enable its revitalization. On Sept. 8, 2015, the City issued a Request for Interest (RFI) from developers to buy, lease/purchase or master lease Old City Hall.

The City intends for the new owner/lessee of Old City Hall to retrofit the iconic structure into a high quality development that contributes to the vitality of the Old City Hall Historic District, which is on the Tacoma, State of Washington and national registers of historic places. The district includes some of Tacoma’s most architecturally important buildings — namely, the Northern Pacific Headquarters, the Beaux Arts Elks Temple and the Winthrop Hotel.

More information is available from Elly Walkowiak in the City’s Community and Economic Development Department at ewalkowiak@cityoftacoma.org or (253) 591-5209.