TIC 2017-05-09 Item 2E - Ordinance - Real Property Condemnation for Chinook Wind Project

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Public Works Department -Dnh Giberson, Director TO: Transportation and Infrast Committee FROM: Bob Giberson, Public Works Director - /, ,, BY: Ryan Larson, Senior Program Manager CC: Mayor Ekberg DATE: May 5, 2017 SUBJECT: Chinook Wind Project No. 91441202 Ordinance for Condemnation of Real Property ISSUE Approve Ordinance to acquire property through condemnation for the Chinook Wind Project. BACKGROUND The City completed the construction of the Duwamish Gardens habitat site in January 2017. The DUvv8OliSh Gardens site totals 2.10 acres and was developed 8G8 fish habitat site with minor passive park features. Habitat features iDC|Vd8 8 backwater channel that will a||OVV jUV8Di|8 G8|DlODidS an area to rest and feed off the main river channel and native vegetation. [)Uvv8n0ish Gardens also features trails, interpretive signs, and viewing and sitting areas. King County acquired the 5.83 acres Chinook Wind site in August 2015 for future development into a habitat mitigation site with minor park elements similar to Duwamish Gardens. The completed Chinook Wind site is anticipated to eventually be transferred to Tukwila t0own and maintain. The Chinook Wind site is approximately 25Q feet dOwDriverOfDUw80ish Gardens. The undeveloped [k/edPOOi property between the two sites iS owned bv Amalfi Investments A\Dl8lfi\8G part Of8larger developed p8rCB| that currently operates as 8 freight transfer facility. Staff has VVO[k8d with Amalfi to try to acquire this undeveloped portion of the property with the intent of linking the two sites and provide a continuous habitat area and passive park along the 0UVVaDliGh River between East Marginal Way South and Tukwila International Blvd. A Purchase and Sale Agreement /PSA\ was executed between the City and Amalfi iD November 2015. The PSA called for the City to acquire the undeveloped portion of the Amalfi property in exchange for a portion of the Duwamish Gardens site along with $7,200.00 to make up for the appraised value difference between the properties to be 8XCh8OgBd. In June Of 2016, ADl8Ki notified the City that they were no longer interested in purchasing the portion of the City's Duwamish Gardens property specified in the PSA. but were GLi|| iO[H[8St8d in selling 8 portion of their [iV8rfFOnt property tOthe [|iiy' but at 8 price significantly higher than the appraised value. ANALYSIS The City has been working with Amalfi since 2013tO acquire additional property between OUvvGDliSh Gardens and Chinook Wind. The undeveloped [iverfn3rt property owned hv Amalfi was appraised 81 $07.UOO. which was determined using 8D appraiser hired bv the City and approved by Amalfi. This was the price agreed upon iD the executed 2O15 PSA.|O8 letter dated July 15.2O1O. Amalfi offered tOsell the property tO the City for $125'308. This revised price was not based upon 8 formal appraisal, but rather 0D the property owner's subjective assessment reached after comparing sale prices for other non-similarly situated properties. WAPW Eng\PROJECTS\A- DR ProjectsZhinookwind (91441202)\InwMemo Chinook Wind Acquisition Ordinance 050517 gl sm.docx W