Kennewick to move ahead with controversial Thompson Hill hotel and condos plan

The Kennewick City Council, in a split vote, took a step Tuesday night toward allowing a hotel and restaurant on the top of Thompson Hill and higher-density housing on the slopes below it.

Both Kennewick city staff and the Kennewick Planning Commission recommended against changing the comprehensive plan that has been requested by developer Jose Chavallo.

But the council voted 5-2 to bring the discussion about altering Kennewick’s comprehensive plan to an Oct. 25 workshop to develop new findings and conclusions to support the change.

Chavallo has applied for a comprehensive plan amendment to switch about 4 acres from low-density residential housing to high-density housing, which would allow for a hotel and restaurant.

In addition, he is applying to change 34 acres from low-density residential, or single-family housing, to medium density. That would allow housing such as apartments and multi-unit condominiums.

Chavallo’s latest request is a change from a 2020 amendment a previous Kennewick council rejected that would have changed almost 41 acres to high-density residential.

Chavallo also failed to persuade councils in 2009, 2010 and 2011 to change land use to allow a hotel to be built on Thompson Hill.

Neighbors, including the 159 households in Panoramic Heights, have strongly and vocally opposed the change to higher density housing.

The proposed project would be south of the Creekstone subdivision and just west of Panoramic Heights.

City staff is concerned that the latest proposal for medium-density housing would increase traffic, which, as proposed now, would only enter and leave the development using Sherman Street.

They also said there could be issues, such as erosion, related to the steep slopes of the hill. And they questioned whether the development would be compatible with the neighboring single-family homes.

On the plus side, however, would be providing additional housing in the city and offering a proposed hotel and restaurant with sweeping views of the city, according to staff.

Proposed hotel, housing

Chavallo has proposed most recently to the council that he build 360 housing units, up from about 200 allowed for low-density housing, and up to 88 hotel units on Thompson Hill, according to council members.

But he would not be legally bound to adhere to that plan, at least under the comprehensive land amendment, City Attorney Lisa Beaton explained.

The high-density designation does not restrict the size of a hotel and the medium-density designation would allow hundreds more homes, apartments and condos than the estimate put forth previously, said senior planner Steve Donovan at a September public hearing on the proposed comprehensive plan change.

Because of the earlier public hearing at a Planning Commission meeting, no public comment was allowed at Tuesday’s city council meeting.

The next step for the council is discussing findings to support the change in the comprehensive plan and then holding another vote to amend the comprehensive plan.

Chavallo would then have to apply to the council for zoning changes on his land.

The council has some discretion on a decision on whether to change the comprehensive plan, but zoning decisions after the plan is amended could more easily be challenged legally, according to city staff.

Council members who supported the hotel and housing development said proceeding with the process would allow Chavallo to see if he could fix issues with his plan, including traffic and possible storm water issues.

There also was discussion of imposing conditions if the matter proceeds to a zoning change and Chavallo presents a formal plan for his property to the council.

Council split on development

After about two hours of questions to staff and discussion Tuesday night, Councilmen Chuck Torelli and Jim Millbauer opposed moving forward toward a change in the comprehensive plan.

Mayor Bill McKay, Mayor Pro Tem Gretl Crawford and Councilmen Brad Beauchamp, John Trumbo and Loren Anderson voted in favor.

Crawford, a custom-home builder, said she applauded Chavallo’s vision for the property, but also raised concerns, including that there could be problems in the development and then the property sold to anyone who might have a different plan for the land.

Anderson said it appears that there may be some significant issues that Chavallo will have to work out, but that the developer has a reputation for quality work.

There is “a bit of a risk” in changing the comprehensive plan, but it is “a fair risk,” Anderson said.

Beauchamp, a developer, said that while he respected the planning commission and staff, based on his professional experience, they came to the wrong conclusion.

This story was originally published October 5, 2022 at 10:19 AM.