Seattle Hotel Owner Sues City and County Over Damages

A hotel owner in Seattle is taking legal action against the city and King County, alleging that they breached their contract by using her property as a homeless shelter, which left it in a damaged condition.

Nehanarya, who owns the historic Civic Hotel, recounted that King County approached her in April 2020 about repurposing the hotel as a recovery site for individuals experiencing homelessness during the Covid-19 pandemic. She stated that her family felt it was important to support the community during such a challenging time.

Local officials decided to rent the hotel, fearing that traditional shelters could exacerbate the spread of the virus. In 2022, the City of Seattle assumed control of the arrangement under a program called Colled Housing Program. The lawsuit, filed in August, claims that the city and county had agreed to manage the tenants and promised to return the property in its original state.

However, Nariya alleges that her hotel, which underwent a complete renovation in 2019, sustained significant damage by December 2024, particularly due to issues related to fentanyl and methamphetamine. Additionally, a tragic incident involving a deceased newborn was reported on the property.

Her legal team asserts that the extensive damage has led to millions in losses, severely affecting her ability to reopen her business. “If this continues, I’m not sure we can keep holding onto the property,” Nariya told Fox News Digital. She mentioned the recent passing of her father, who was also her business partner, intensifying her struggle to manage the situation. “Right now, I just want to get back to running my business,” she expressed.

The lawsuit claims the city failed to properly address contamination issues as required by their contract. Nariya provided a preliminary damage estimate in January 2025, but it wasn’t till June that she received a response, at which point the city declined to make any payments. Further testing later revealed significant drug contamination, leading to a conclusion that extensive cleaning and renovation were necessary. The complaint also accuses officials of actions perceived as attempts to diminish the property’s value.

“It was chilling and strange, considering the circumstances. They essentially ruined my client’s property,” remarked Mark C. Lamb, Nariya’s attorney. “They stepped up during the pandemic to help those in need.”

Nariya is seeking compensation, which includes damages, legal fees, and additional support. The City of Seattle has not commented on the pending litigation, while King County has not responded to requests for comment.

Non-commercial purposes Dignity. Action. dismissed the lawsuit claims, suggesting it was merely an attempt to extract money through settlements.

Upon vacating the site in December, the nonprofit stated that a walkthrough between the city and the property owner had confirmed the building’s condition. The organization insisted that it had provided adequate staffing during its tenure, but noted that the premises were left unsecured, leading to unauthorized entries.

Regarding the contamination allegations, the PDA claimed it did not have access to the test results and that drug residues might have been present both prior to and following their involvement. They emphasized their protocol to uphold smoking bans. The PDA expressed profound sadness over the infant’s death, explaining that staff discovered the child after the mother had concealed the premature birth but had been receiving outpatient support before this incident.