A museum or a boutique hotel? Olympia considers future of building at State and Capitol

Olympia officials have received two proposals for what the future of its building at 108 State Ave. NW should be. The former City Hall and Fire building was built in 1912 and is the oldest building in the city’s portfolio.

The site was most recently home to the nonprofit Family Support Center. Next, it could become a boutique hotel, or a museum.

Olympia Finance Committee chair Lisa Parshley said Olympia is the only U.S. capital city without a history museum. Many states’ capitals are home to a State History Museum; Washington’s is in Tacoma. There’s the Olympia Historical Society/Bigelow House Museum, but it’s small and focused, and not in the downtown core.

The museum proposal

The Olympia Arts and Heritage Alliance (AHA) submitted a proposal to the city to turn the 112-year-old building into an arts, culture and history museum. The city’s Finance Committee reviewed the proposal July 2, and the city council is expected to make a final decision in the fall.

The AHA’s proposal states the museum would be a place for learning about, reflecting on, and becoming inspired by Olympia’s rich arts, cultures and history. The space would be used to collect and preserve cultural resources important to Olympia and its legacy.

The nonprofit wants to build out space for artist studios, classrooms and workshops, a retail shop and more. There would be in-person and online access to exhibits and historical documents, and rooms for community group meetings.

As a nonprofit, the AHA is requesting a subsidized lease of $1 per year for 25 years, with an additional 25-year extension.

“We expect a city commitment to renovate and improve the building shell and building systems, meet ADA requirements and address seismic, sea-level rise, security, and internet needs,” the AHA says in the proposal. “City maintains the building shell in good condition and repair.”

The proposal includes the city maintaining HVAC and electrical, including an emergency generator, internet, safety and security systems, elevators, water, sewer, doors, grounds and more.

The city would have to give the AHA a yearly monetary allocation for repairs and maintenance they took on. The city would pay for utilities, staffing at the welcome center, and insurance, while having no say in museum programming.

Last year the city’s Economic Development Director Mike Reid said the city can’t take on the necessary upgrades alone.

The property and lease valuation in 2019 was $2.2 million, and it has grown to $4.3 million since then. On top of that, the building needs a good amount of updates. It was estimated in 2019 there’s $1.5 million in maintenance needed, including to the HVAC system, plumbing, interior and exterior finishes, as well as the possibility of switching from natural gas to all-electric power. Reid said he imagines that the price tag for maintenance has gone up since 2019.

According to the proposal, AHA will begin a Capital Campaign for building improvements if chosen. It will also pursue state funding through “Building for the Arts” and “Heritage Capital Projects” grants, and through trusts and foundations.

The nonprofit has fundraised $100,000 to date and has more than $70,000 in reserve, according to the release.

The boutique hotel proposal

The second proposal the city received was to turn the 112-year-old building into an independent historic hotel called The Ladderhouse.

The Ladderhouse is a private business enterprise proposing to buy the building and turn it into a boutique hotel with 28 to 32 rooms. The hotel would include a walled-in outdoor heated soaking pool, an event space, a covered outdoor patio, a cafe, a bar and a covered rooftop deck.

According to the proposal, the business enterprise is composed of Essence Hotel Group, a development firm and a general contractor, as well as local architecture firm Artisans Group Architecture and Planning. The firm is 100% woman owned and a Certified Women Business Enterprise.

Artisans Group’s previous projects include 222 Market Building, Olympia Coffee Roasters, and the Boulevard Habitat for Humanity project.

The Ladderhouse wants to buy the property for $500,000, which is well below the assessed value. The offer is due to the extensive nature of the improvements needed, which would be paid for by the development team, according to the proposal.