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Commission approves Hotel Fusion conversion with findings on social services and in-lieu conversions
Summary
Planning Commission approved conditional-use and variance requests allowing conversion of Hotel Fusion at 140 Ellis and related transfers to 317 Leavenworth, adding findings that the sponsor intends to provide a ground-level service area for the Department of Human Services and will seek conversion of 12 remaining units under Administrative Code Chapter 41, subject to cost limits.
The Planning Commission voted June 5 to approve requested conditional-use and variance actions related to the Hotel Fusion project at 140 Ellis Street and related transfers to 317 Leavenworth. Staff and the project sponsor described a conversion that would change 77 single-room occupancy (SRO) units to tourist rooms at 140 Ellis, transfer or replace 65 units at 317 Leavenworth and address the remaining 12 units under the administrative in-lieu process in Administrative Code Chapter 41.
The project sponsor and counsel sought two specific findings for the record: a commitment to provide a service area for the Department of Human Services at the building’s ground level, with a one-year rent abatement; and a finding that the sponsor will seek conversion of the remaining 12 units under Chapter 41 provided the in-lieu per-unit payment does not exceed $40,000. City Attorney staff advised that those promises are more properly described as findings explaining the project’s likely implementation rather than enforceable conditions that would amend the administrative code.
Tenant advocates and neighborhood speakers questioned outreach and the impacts of moving low-income housing units between neighborhoods. Michael Nulty of the Tenants Association Coalition urged better community outreach and cautioned about moving SRO tenants away from transit and services. Staff said the existing tenants were offered relocation to adjacent sites when rehabilitation occurred and that none of the units are presently occupied.
Commissioners approved the project, accepting the deputy city attorney’s amended language as findings and adding encouragement that sponsors improve community outreach in future projects. The conditional use permits authorize up to 77 tourist rooms while clarifying the administrative-code process that governs conversion or in-lieu payments for the additional units.
What’s next: The approvals are final as of the June 5 vote; the in-lieu conversion of remaining units would require compliance with Administrative Code Chapter 41 when an application to convert is filed.
