A lot has changed since Hotel Tieton was first built in Yakima in 1910. Located at the corner of 1st Street and East Chestnut Avenue in Downtown Yakima, the three-story structure has been known by many names over the years.
The building has been the home to restaurants and night clubs, but in recent years it has sat empty and its fate remained uncertain. However, that changed last year when the building was purchased by One Chestnut, LLC for $762,500.
The development company is planning to invest $2 million to transform the 107-year-old structure into modern housing, retail and restaurant space.
The former night club building next to the old hotel will be converted into 7,000 square feet of modern office space that can handle up to four new businesses.
The ground floor of the old hotel building is being developed into space for a new restaurant, and the entire project is located just one block from the proposed Yakima Central Plaza.
Construction and demolition work began last fall at the site.
“This is exactly the kind of development we need downtown,” said City of Yakima Economic Development Manager Sean Hawkins. “This is an absolutely amazing project.”
Plans call for converting the upper two floors of the brick building into 16 residential units. There will be four two-bedroom units and twelve one-bedroom units for housing individuals and small families.
The developer is participating in the City of Yakima’s Downtown Redevelopment Tax Incentive Program, which would provide a property tax exemption on the housing improvements for up to 8 years.
This last time the tax incentive program was used in Downtown Yakima was in 2009, when the former Bon Marche building on North 3rd Street was turned into condominium units known as “The Lofts”.
“Downtown housing is a great redevelopment too,” said Hawkins. “Hopefully this project will spur others to look at doing the same thing.”
*Article has been taken from the February 2017 City of Yakima Issues Brief