Sage Investments LLC is not finished transforming hotels in Centralia.
The Centralia City Council unanimously approved two development agreements with the developer during the council’s Tuesday, Aug. 12, meeting to allow the company to turn Centralia’s former King Oscar Motel and former OYO Hotel into split-usage buildings, with the top floor becoming residential studio apartments while maintaining the bottom floor for commercial use.
This comes six months after the council approved a development agreement with Sage Investments, based out of Kirkland, to do the same conversion with the former Motel 6 property in Centralia, which the developer owns along with King Oscar and OYO. The council approved a zoning district change request made by Sage in May 2024 allowing for apartment-hotel hybrids within the zoning district, according to previous Chronicle reporting.
According to the council’s agenda report, Sage Investments applied for conditional use permits to convert the upper floor of both the former King Oscar Motel, located at 1049 Eckerson Road, and the former OYO Hotel, located at 720 Harrison Ave., into residential apartments. The city’s hearing examiner held a public hearing on Oct. 2, 2024, on the matter and approved the issuance of the permit with conditions, which included the execution of a development agreement between the city and Sage.
Kyle Manley, Centralia attorney, told the council Tuesday that the development agreements went back and forth with Sage “a few times,” as the resolutions were initially slated to be approved during the July 8 meeting but were postponed due to ongoing council questions. Manley said the main difference between the King Oscar Motel and the OYO Hotel development agreements is that the OYO Hotel agreement required a three-foot flood wall to be built, and that has already been installed and completed.
The King Oscar Motel was constructed in 1994 and is still currently operating, while the principal structure on the OYO Hotel property was constructed as a hotel in 1971 and operated as such until February 2023. The first floor will include but not be limited to hotel and motel operations.
According to the development agreement, the King Oscar Motel shall have a combined total of 96 residential and nonresidential units. The first floor shall consist of up to 48 hotel rooms, a one-bedroom manager’s unit, and/or other permitted commercial uses, while the second floor will contain up to 48 dwelling units.
Traffic access to the King Oscar Motel shall be provided from Eckerson Road with emergency vehicle access as reviewed and approved by the city and Riverside Fire Authority. Off-street parking will be a minimum of 100 total stalls, which will include Americans with Disabilities Act-compliant stalls. Dwelling units shall be assigned at least one stall per unit, and hotel units will be assigned one stall per unit. All pre-existing parking spaces will be retained, and the total number of stalls may not be reduced. Leasing operations will be provided by a property management company, as selected by Sage, and a dedicated leasing office space will be located on the property. The property will undergo other renovations, including lighting, screening, landscaping, fencing and painting.
The OYO Hotel will have a combined 94 residential and nonresidential units, including up to 45 hotel rooms and/or other permitted commercial uses on the first floor and up to 49 dwelling units on the second floor.
Traffic access to the OYO Hotel will be provided from Harrison Avenue with emergency vehicle access. Off-street parking will be a minimum of 94 total stalls, with dwelling units and hotel units each assigned one stall per unit. All pre-existing parking spaces will be retained, and the total number of stalls may not be reduced. The property will also receive similar renovations as the King Oscar Motel.
Through these agreements, there is a possibility that the names of the hotels will change. Both agreements are for 10 years and will expire Dec. 31, 2034.
