City shuts down proposed Tri-Cities hilltop hotel — but doesn’t close the door

A Kennewick developer’s plan to build a hotel with a high-end restaurant on a Tri-Cities landmark hilltop, plus nearby upscale condos, has been shot down.

The Kennewick City Council voted 5-1 on Tuesday night against a comprehensive plan amendment that would have led to rezoning the top of Thompson Hill in south Kennewick.

The hotel and restaurant could be an attraction that would benefit all of the Tri-Cities, drawing out-of-town visitors to dine at the restaurant before a sweeping view of the night lights of the area, said Councilman Bill McKay, the only councilman to favor the change.

“We need to figure out a way to make this happen,” he said.

But other councilmen were concerned that the city would not be able to bind developer Jose Chavallo to his current proposal for the land.

“This is not only good for Kennewick, but good for the whole Tri-Cities,” Chavallo told the Herald on Wednesday. “Once the opportunity is gone, it’s gone.”

He wants the 40 acres he owns rezoned from low density to high density residential to allow a hotel with a restaurant, spa and high-end meeting spaces, he has told city officials.

He told the Herald that under his current zoning he already can have a free-standing restaurant by filing additional documents, but he is seeking the high-density because he says it is the only zoning that will allow the boutique hotel.

“This is one of the nicest locations in Tr-Cities,” he said. “And (the hotel) is a good opportunity that can go away.”

He also hoped to build 350 high-end condos on the 40-acres the south side, a project that would cater to retirees looking to downsize.

Could plans change?

But once the land use is changed to high density residential by the city, Chavallo or anyone else who might later own the property is not tied to the current vision for the property, said Mayor Don Britain.

“Visions are like a puff of smoke,” Britain said. “Blow a little bit of wind at it and that smoke goes away and things change.”

Despite the shortage of housing in Kennewick, he cannot support the land use change, he said.

Neighbors, most on the north side of the hill, oppose the project, arguing the change of land use could allow as many as 1,100 apartment or other housing units to be built on the hill.

“Last night the people of the Southridge area won over the financial interests to allow unfettered and widespread high density development of Thompson Hill. The people of Kennewick know what’s in their best interests,” said Bill Dixon in an email to the Herald on behalf of Panoramic Heights Homeowners Association.

“Public involvement in city decision-making worked,” he added.

Mayor Pro Tem Steve Lee said he had received more communication from city residents about Chavallo’s proposed project and the land use change than any other issue during his time on the council.

But many who contacted him also said there could be a compromise reached that could allow the project to move forward with tighter restrictions, he said.

His vote against the land use change was not a vote against the project, which possibly could move forward with some mitigation in place, he said.

“Any smart person would look at the lay of the land and see that 1,100 (units) are impossible,” Chavallo said. “The bottom line is that Panoramic Heights wants nothing to happen on the hill. I’ve said if they want to keep it that way, they should buy it.”

When asked what alternative option would accommodate his hotel, Chavallo said he doesn’t make the zoning laws and referred those questions to the city council and planning staff to answer.

The project could bring millions of dollars into the Tri-Cities economy as people enjoy salmon, a glass of wine and a beautiful view from the top of Thompson Hill, Councilman Chuck Torelli said at the meeting.

“I believe in development but I also believe that unfettered growth can be a disaster,” he said.

And there also is nothing that keeps the land from being sold to someone who builds a high density apartment complex and storage units, as would be allowed under the proposed comprehensive plan amendment, he said.

Councilman Brad Beauchamp joined those voting no, saying he had listened to concerns of neighbors and that there currently is no measure in place that would limit density.

Councilman Jim Millbauer also opposed the change of land use. Councilman John Trumbo was traveling and unavailable for the vote.

The Kennewick Planning Commission earlier this month voted unanimously against amending the city’s comprehensive land use plan to allow Chavallo’s project and city staff also had recommended against it.

Neighbors oppose project

Chavallo now lives on top of the hill with his wife, Tammy, in a four-bedroom house that has previously been used as a bed-and-breakfast and a winery.

He first tried to get Kennewick City Council approval in 2009 for the hotel, but it was rejected. In 2010, the decision was deferred. And a year later the proposal was turned down again.

The public comment on his most recent proposal was heard at a Kennewick Planning Commission meeting rather than at the council meeting.

Forty people at the hearing, plus hundreds of pages of letters and emails to the city, discussed worries over increased traffic, high-density housing next to single-family homes and the loss of neighborhood atmosphere.

“We believe that the proposed change of density would dramatically affect the nature and character of our community. We all purchased these homes with the understanding and expectation that the neighborhood would maintain its character,” wrote Panoramic Heights residents Janice and Bruce Boyum in an email to the city.

“Thompson Hill is a landmark that can be seen for many miles. A large apartment complex at the top of the hill will be an eyesore for a 100 years to come,” wrote Dave and Marla Brown.

This story was originally published May 19, 2021 at 10:20 AM.