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Shiloh Inn closure and hotel inspections: Ocean Shores pursues enforcement and worker wage recovery
Summary
City staff said inspections of the Shiloh Inn found unsafe conditions and unpaid utilities; employees were reportedly let go and equipment removed; the city has contacted L&I about unpaid wages and faces limited collection options as owners seek bankruptcy or sale.
During audience Q&A, residents asked for an update on the Shiloh Inn, a property adjacent to the convention center that previously served as a primary hotel for events.
Sarah (finance) and other staff described inspection findings that led to closures of rooms and public-health issues, and reported that employees had been let go after extended nonpayment. She said the city and county are owed substantial utility and tax debts and that property owners have signaled bankruptcy or sale activity. "They have made bankruptcy a sport," Sarah said, noting the municipal collection options are limited in that circumstance.
City staff said they contacted the Washington State Department of Labor & Industries (L&I) to pursue unpaid wages for hotel employees and that code enforcement had flagged permitting and safety concerns. Officials warned that multiple Shiloh-owned properties across the coast are in similar financial distress, which has interrupted hotel capacity for convention bookings.
Officials did not announce formal litigation or specific liens being foreclosed at the meeting, but confirmed continuing enforcement actions, public-record tracking of property issues and coordination with state agencies.
