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City approves extended timeline for HopeSource Pathways Place; project expands motel conversion into 78 affordable units

2364718 · February 21, 2025
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Summary

Council authorized a second amendment to the City’s agreement with HopeSource, extending completion deadlines and allowing HopeSource to combine motel renovation with new construction to create 78 affordable homes at the Knights Inn site.

The Ellensburg City Council authorized the city manager to sign a second amendment to the Pathways Place affordable housing agreement with nonprofit HopeSource on Tuesday, extending the project completion timeline and permitting a revised development that increases units on the Knights Inn site.

The amendment changes the target completion date to the end of 2026, with an outside completion date of June 2027, to allow HopeSource to combine the motel renovation with concurrent new construction on the broader 4.9-acre parcel at 1200 South Ruby Street.

City staff and HopeSource said the revision comes after the developer secured a full “funding stack” enabling a faster and larger build than originally proposed. HopeSource’s presentation to the council said the revised plan converts the motel portion into 32 studio units (up from 16) and adds new construction of approximately 46 additional units for a combined total of 78 apartments. HopeSource said…

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