Hotel occupancy in Pierce County fell 18.4 percent in June, compared to a year before, while statewide the occupancy rate fell 8.6 percent.

Only one region in Washington saw hotel occupancy increase. In the Tri-Cities and Central Washington, the rate rose 2.3 percent.

In June, 64.6 percent of rooms were occupied in Pierce County, according to Bellevue hospitality consultant Wolfgang Rood. Statewide, 72.9 percent of rooms were taken during the month.

The average daily room rate in Pierce County, $83.14, was up 0.2 percent from $83.01 recorded in June, 2008. Pierce County was the only region of the state to see an increase in the average daily rate, and the average statewide rate of $124.17 was down 9.2 percent from the year before.

Bellevue and the Eastside saw the greatest decline in occupancy in June, Rood said, down 26.5 percent. Bellevue likewise marked the greatest decline in the average room rate, down 18.4 percent to $128.26.

Downtown Settle recorded the state’s highest average room cost, at $168.18, which was down 7.4 percent from June, 2008. The Emerald City also recorded the state’s highest occupancy rate, with 85.2 percent of rooms taken – down 2.4 percent from 2008.

Tacoma-based Columbia Banking System, parent of Columbia Bank, announced this afternoon that it has raised $120 million through a previously announced public offering.

The company has issued 9,775,000 shares of common stock, including 1,275,000 shares of the underwriters' over-allotment option, at a price of $12.25 per share.

The net proceeds after deducting underwriting discounts and commissions and estimated offering expenses are expected to be approximately $113.8 million, the bank said in a release.

“We are extremely pleased with the results of our public offering, which validates the strength of our franchise,” said Melanie Dressel, President and Chief Executive Officer. “This additional capital, when added to our already strong capital levels, gives us the flexibility to respond quickly and effectively to business opportunities as they arise.”

Keefe, Bruyette & Woods, Inc. acted as lead book-running manager of the offering, with D.A. Davidson & Co. as a co-manager.

Columbia stock closed down 15 cents to $15 in Tuesday trading.

A new would-be rescuer emerged Tuesday for downtown Tacoma's historic but structurally crumbling Luzon Building.

Tacoma contractor and developer Igor Kunista told the City Council Tuesday he wants to begin shoring up the leaning brick walls of the six-story building this week if can buy it from its present owner.

But in the meantime, the city's public works department Tuesday afternoon closed down South 13th Street and one southbound lane of Pacific Avenue adjacent to the building to protect the public.

The city fears the building, inundated by rains for decades, could collapse. The building's north wall is already leaning some five inches toward South 13th Street.

If Kunitsa's plan falls through or if building owner, The Gintz Group, can't find new financing to rehabilitate the building itself, the city may step in to install reinforcements to keep the building intact.

News of Kunitsa's interest came as both Gintz and the city were searching desperately for financially feasible ways to save the building, designed by famed Chicago architects Daniel Burnham and John Root.

Economic development project manager Ellen Walkowiak told the council that the city has been working with Kunitsa to remove potential roadblocks to the rehab project.

Several plans to find a productive reuse of the 118-year-old former bank building have been proposed over the last few years, but none proved doable. Those plans called for converting the building to corporate apartments, to condominiums or to offices and retail spaces.

Kunitsa's plan calls for him to invest $2.35 million in cash in the historic building. The remainder of the $6 million in construction cost would be paid with a $2 million loan from Wells Fargo Bank and a $1.65 million low-interest loan from the City of Tacoma.

The city had offered that same loan to the Gintz Group, but the Tacoma developer has been unable to find tenants to rent the offices in the rehabilitated structure.

Gintz' banker wants signed leases for most of the building before agreeing to provide financing. Robert Hailey, a consultant to Kunitsa, claims several tenants have shown strong interest in signing up for office space if Kunitsa rehabs the structure.

Kunitsa, owner of Serpanok Construction Inc., said after the council study session that he believes he can rehabilitate the Luzon more economically than Gintz because he would be both the building's developer and its general contractor. Gintz would have to hire an outside general contractor.

Kunitsa, an immigrant from the Ukraine, has lived in Tacoma for 18 years. He says he has investment properties in South Carolina as well as his Tacoma-based construction company.

That construction company has worked on several local high schools, on the rehabilitation of Fort Nisqually and on the overhaul of the Metropolitan Development Council Building downtown.

Gintz executive Ron Gintz said Kunitsa and Hailey came to The Gintz Group last year expressing interest in buying the building, but didn't follow through with an offer.

Gintz said he doesn't want to throw cold water on a deal that could save the historic structure, but he has reservations that Kinitsa could acquire the building, get permits and make the necessary financial arrangements within the next few days or weeks.

Any deal hinges on Kunitsa and The Gintz Group reaching a deal on the building's purchase price. The Gintz Group bought the structure for $83,000, but Gintz claims it has invested hundreds of thousands more in design, structural engineering and historic research on the structure. The Gintz Group's asking price for the building is now $500,000.

If the group doesn't sell the building, it potentially could be liable for the costs of any engineering work and construction the city might do to make the structure safe.

The Gintz Group is working with a non-profit agency to lease part of the building. If that lease goes through, the group might be able to obtain construction financing for the structure.

Council members at the session expressed strong interest in Kinitsa's proposal. Deputy mayor Julie Anderson said special recognition should also go to The Gintz Group for its efforts that have kept the building alive during a critical period in its existance.

The House of Representatives' decision to add $330 million to the defense budget to buy four new executive jets for the Air Force could be good news for workers at Boeing's Renton plant, but bad news for the deficit.

The Senate now is raising objections to the House's plan to acquire the four jets, two Boeing 737 executive aircraft and two Gulfstream G-Vs.

House members sponsoring the extra appropriation say the move will cut expenses because the modern jets will save operating costs because of their fuel efficiency.

But the Pentagon didn't request the new planes, and watchdog groups are saying the expenditure is based more on Congress' desire to fly in comfort than on any real need.

Boeing is officially mum on the controversy. The 737s are built at the company's Renton plant.

Maybe it was just too much wishful thinking when we speculated a couple of weeks ago that Tacoma gas prices had hit their summertime peak and were beginning a gradual downturn.

While we weren't looking, gas prices in the Tacoma area headed upward again. Average prices for unleaded regular today are $2.865. That's 15 cents more than last week at this time and 18.3 cents more than a month ago.

Of course, these prices still seem a bargain for anyone who experienced 2008's rapid price escalations. A year ago, according to TacomaGasPrices.com, gas was selling for $3.956 in the Tacoma area.

The trend is true across the state and nation. In Seattle, average unleaded gas prices jumped more than 7 cents week to week.

Washington's average prices for regular rose to the fourth highest in the nation this week at $2.854. The state was behind only California, Alaska and Hawaii, all of which have average prices over $3 a gallon.

The nation's cheapest gas is in South Carolina where average prices are $2.407 a gallon.

Nationwide, average prices have increased 19 cents a gallon in the last three weeks. Analysts expect present prices are near the summer peak.

A bad hurricane season on the Gulf Coast or crude oil price increases caused by international developments or speculation could pump those prices up further.

Kathleen Cooper sent this in this morning:

Tacoma and Pierce County political and business leaders raised a glass Monday night to celebrate DaVita's decision to keep its business offices in Tacoma.

In a cocktail gathering at the Pacific Grill Events Center, DaVita Vice President Jim Hilger accepted on behalf of the company the thanks of Tacoma's mayor – as well as a proclamation declaring Aug. 10, 2009, "DaVita Day" in Tacoma.

Mayor Bill Baarsma presented the framed proclamation, then surprised Hilger with a key to the city – a gift Baarsma asked Hilger to deliver to corporate headquarters in Denver.

DaVita, which operates a network of 1,400 kidney treatment centers nationwide, announced in May that it would sign a new lease on the former Schoenfeld Furniture Store at South 15th Street and Pacific Avenue, and lease three floors of the nearby Columbia Bank Building to house its accounting and billing staff.

The company now employs some 900 workers in Tacoma, and it expects to add more over the next decade. Its decision to stay in the city has been widely celebrated in downtown circles and almost always is mentioned in the same breath as the forthcoming headquarters decision for Russell Investments.

The gathering Monday was put on by the Economic Development Board for Tacoma-Pierce County, the Tacoma-Pierce County Chamber of Commerce, and the Executive Council for a Greater Tacoma. Among those attending were U.S. Rep. Norm Dicks, who Hilger has said called him on his cellphone while DaVita was making a decision.

When asked if he had Russell CEO Andrew Doman's cellphone number handy, Dicks said with a smile, "I'm sure I have it in my files."

The Boeing Co. has settled a whistleblower lawsuit that claims it overbilled the Air Force for maintenance work on KC-135 tankers.

The company, while maintaining it did nothing wrong, agreed to pay the Justice Department $2 million, the San Antonio Express-News reports.

The suit was filed three years ago by former Boeing employee Edward Quintana. Quintana, who claims Boeing fired him to retaliate for his allegations, alleged Boeing billed the Air Force for several people working on jobs when he alone was doing the work.

Under federal law, the Quintana could receive from 15 to 25 percent of the $2 million settlement, his lawyers said.

Boeing said it cooperated fully with the government in investigating the claims. The company denied making false claims, but said it had taken action to correct internal charging issues.

Alaska Airlines' more than 650 aircraft technicians have ratified a new contract that will give them 3 percent raises over the next two years.

The mechanics, members of Aircraft Mechanics Fraternal Association, approved the contract extension with a 77 percent majority.

The new deal gives mechanics raises of 1.5 percent on Oct. 17, 2009 and 2010.

"The voting results now show the majority of our members believe this extension and three letters of agreement over the next two years," the union's negotiating committee said in a written statement.