City of Yakima No Longer Helping Fund Downtown Hotel Project - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

City of Yakima No Longer Helping Fund Downtown Hotel Project

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YAKIMA, Wash.-- The City of Yakima is no longer using some of its federal grant money to help build a new hotel in downtown.

The developer decided to get his funding from a more traditional source.

It was a somewhat controversial move when the city decided to get involved in this project with local businessman Joe Moyer.

The city council voted to help Moyer's company get over a million dollars in federal Housing and Urban Development grants that are dedicated to Yakima.

The money was going to be used to renovate a downtown building into a new hotel.

But now, city officials say Moyer doesn't want the federal money because it would require him to pay prevailing wages to work crews.

"It's a very labor intensive remodel to convert all the floors into rooms and so the prevailing wages that are required by the federal funds pushed up the cost over $400,000," said Economic Development Manager, Sean Hawkins.

Hawkins says the hotel is still going to be built though. Moyer will be using a more traditional small business loan for the project, which will free up the city's million dollar HUD loan for another project.

Hawkins says they're in the process of figuring out what else they can do with that money.