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Home My WebLink AboutCOW 2007-08-13 Item 4D - Update - Tukwila Village w COUNCIL AGENDA SYNOPSIS 11.e. 21I� Initial ITEMNO. 0 1 Meeting Date Prepared by Mayor's review Council review 1 I 4 wa DCS oc..c r sos I 7/23/07 DCS 1 1 8/13/07 DCS Ot,� F ,A,42-. ,A,42-. `C1i' 4oF' \l.E(� cf. ITEM INFORMATION CAS NUMBER: 0 0 I ORIGLNAL AGENDA DATE: June 4, 2007 AGENDA ITEM TITLE Tukwila Village: Update CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 8/13/07 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PW SPONSOR'S This meeting is an opportunity for Council to discuss the information that staff presented SUMMARY at the Council meeting on June 23, 2007. No decision is requested for this meeting. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DA 1'E: RECOMMENDATIONS: SPONSOR /ADMIN. No action requested; for discussion only COM III 005_ T- i VI' PCT-:IF_UND-SOU ROE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 $0 Fund Source: Comments: __LREGOROVF=-COUNCIL ACTIOI 6/4/07 Update and presentation 1 6/11/07 Update and presentation 1 7/16/07 Update and presentation 1 7/23/07 Update and presentation 1 NITG DATE ATTACHMENTS 6/4/07 Informational memorandum dated 5/28/07 List of steps to reach agreement on development concept /Tukwila Village process Metrovation's Tukwila Village recommendations (draft report) 6/11 &7/16/07 No attachments (handouts presented at the meeting) 7/23/07 Gardner Market Analysis Summary of Findings Options Comparison Table 8/13/07 Powerpoint presentation from 7/23/07 Council meeting Tukwi a Vi age City Council Meeting July 23, 2007 Development Process 1. Agree on a vision and direction 2. Select a developer 3. Negotiate a development agreement 4. Design, entitle, get tenants, finance Transfer land ownership 5. Construct 1 Does the Original Vision Still Apply? I "The City strongly desires a project that will result in a c\ city center...Through the installation of a public plaza or �J similar feature, it is the City's intent to create a sense that you have arrived at a special place. This community Mme. space must be fronted with retail shop space...to create a community gathering place...The City both supports and encourages proposals that integrate housing throughout the project." Excerpt from 2001 RFP We will ask Council to confirm a vision in August. Tonight's Purpose Understand the basic options and their feasibility No decisions tonight i rl e _iii 3 3 2 P sue. Tonight's Agenda 1. Current real estate market 2. Market value for Tukwila Village land if sold "as is" 3. Status of other property along Tukwila International Boulevard. 4. Basic options Current Real Estate Market Per Gardner Johnson 2/2007 Retail Up to 50,000 SF of neighborhood service through 2011 Current rates: $17.50 to $25.00 /SF /year NNN Office Up to 50,000 SF through 2011 1,000 to 15,000 SF floor plates $19.00 to $21 /SF /year for professional space Attached Housing 45 60 units Flats between $160,000 and $250,000 Townhouses between $185,000 and $300,000 Rental Housing Up to 150 units (but current rents are low) 3 Market Value "As Is" Draft opinion of value for the Tukwila Village land: $14 $18 per square foot Other Properties if 45 X .cam r c-" =r r E- 1 it d i, a._ s .es z C e ham- n 1 c >s -s..?‘' _l.W! "Bartell's Shopping Center 4 Other Properties :=-4 3, -k,-, ''4"-••...v----f:`,--...--r,t,;t:'..-C-f-liTk-, i-alt..!,-7.11e..z.-, -773- 11:-T F 'L:E-!1 0 •...11:1 "1 4 ,3, ...7 I. -C"-**--.. 1,. t';-••': d•raFW-.c," i- 2+ -,-1:. -"-*Z "1 -1= -i .z-- 'T I- 4t, Fli_ajr_Avi r. '41 •.f, -lc._ 10:,-.vrr 47:7_.-.- st ff...-4._-...r.:7-'---t.t.>_--,4.,„'-fea,i, u -1. w...... 4 Z. Z. _t_ 1-1 zr. 'AN, `5,.'-.- 1 rS: 1 '7 '2 ,'41 •41,..ri -4. 4 -ti i0 .1 1,- 1 1 4 71b,-,`-'' 4 I Al f 4 150 V- '-'1V-,J 7i- 14 ri ti --7-' -11 ii .--7--.. 7 _,Z _,-27_---:_= 1 4. ;-11,_ th .0 t,....:-.- _-23 st_ Tr; 2-;-4: 0.....j.:1 to ..----,„„At,5,... ...,:rre s ....4-_ 4 Chips Casino and Southgate Mobile Home Park Other Properties 141 .1"2 --,0:7_,.::1,257-,74--` 4 it,- i :t.:`a 1.' -.-1-z 1: 7 7 i t 1 9 1 If ---:---7. i" 4-: `;',"tj,` 4 -1 Z -.7 Z ,..1 0. f 1.1 .,-.7.-.L.,•= '..:=1,?-:', 71-' --:--_;',4::-_-_ r..-,g t.---.," ;:zr p.var.. fillifSibitxmiZirmo 41.,_--$.-- w,- 11.1-- t- ..-......,---,---4. .4_ r-r- ig-r 7, --e_ -=*--,:,,,,--_-.2,' ----4k-----,:-„ T ‘7. '1,, r---:- k,;' .29.-;-,.7:.;- 11-_Z-4114 ...'r i t f -----1M- 4W ":4' 4L"- '2,_ ..-Z. s7t 1 .fi ....,"i ".--.4...--... -4,.., 41 ",--f; k -...-41gy-,.., ,1-4.0..-- I i --w i -.5 ji__ _4____ ---yr...,,,,_,_ 1 1-:;=.- 0.5 4 i -7,31" 0 1 ".L. b i 7 .-•-7;1 :•="--:Lq1.- 7311 12•11:,:ir 12,_;" d•••& ,:..;,,tr:SZ".:S:T=:-,t.. j p 7 4 44 1'7 li ft.71*--3, --.:W.751,-':"ITL'---:_%-- 1-1-1- tt 4 ----id. 1 i "f zz-,.---. ii 7,-- L- 3 ,,,v v.., 4. IX4, f -..s. 2 i 1 t: 1,-.. -in_ "••31 -'_,.,1...•• i Z k 4---,--- 4 ii Lk •N Tukwila International Boulevard and South 146th 5 The Next Three Years Economy Light rail opens 2009: Promises a boost (but doesn't guarantee) Sabey/Associated Grocer's parcel: Great potential The Basic Options 1. No action 2. Sell property "as is" 3. Develop a mixed-use, gathering place 4. Explore other alternatives City building City park 41 1_7; rri Dedicated senior housing IV 0 I I 6 Pros and Cons of Basic Options Land sale revenue Annual revenue and cost City tax revenue Revitalization stimulus Future option AI. Staff time Active gatherings Develop a mixed-use, gathering place Izzlitti _za ---z: _.-A %T.Z 2. ..1 r,i 7Zir.,..i 4. ............iffe. c -A re...:114 f ..p- '44 W 1 54._' 4 4 0 Mir 41 01 "21 ItIli ':*a., 1 4 -714.60±..i t .1,-.141 Ts- 4.: r,ia ----.4.10. ----t...„. 4 1..6.1„- ...-p_ .s._--„,..,____ -t:: k 7 Develop a mixed -use gathering place r F .fl 3, i.4." tai _fir �i.�� sm .w tv f •mil. 1. -1 1 i .v et V F Land Sale r\ Reve No action /hold land $0 Sell land "as is" $2.5 $3.2 million Develop mixed -use, gathering place Townhouse concept $2.2 $4.4 million Metrovation concept $2.2 $3.2 million Explore other options City park/building $0 Dedicated senior housing $2.2 $4.4 million Revenues shown are one time. Assumptions listed on separate chart 'Tukwila Village: Comparison of Basic Options' 7/2007.Estimates have not been wnfinned by the Finance Department. 8 Financial. Annual Revenue (Cost No action /hold land $0 Sell land "as is" $135,000 Develop mixed -use, gathering place Townhouse concept $78,000 Metrovation concept $2,000 Explore other options City park/building Dedicated senior housing Estimate of annual impact to city budget. Assumptions listed on separate chart 'Tukwila Village: Comparison of Basic Opfions' 712007 Estimates have not been confirmed by the Finance Department Does not include taxes from redevelopment of surrounding properties_ Tax Effect Example If the Southgate Mobile Home Park constructs 85 townhouses that sell for $300,000 each, the total value would be over $25 million. This would equate to $75,000 of additional property tax to the City each year. 9 Revitalization Stimulus No action /hold land None Sell land "as is" Maybe Develop mixed -use, gathering place Townhouse concept More Metrovation concept Most Explore other options City park/building Some Dedicated senior housing Some Assumptions listed on separate chart 'Tukwila Vllage: Comparison of Basic Options' 712C07. Future Option No action /hold land Yes Sell land "as is" 1 No Develop mixed -use, gathering place 1 Townhouse concept No Metrovation concept 1 No Explore other options City park/building No Dedicated senior housing No Assumptions listed on separate chart 'Tukwila Village: Comparison cf Basic Options' 72007. 10 Staff Time No action /hold and Minimal Sell land "as is" Minimal Develop mixed -use, gathering place 1 Townhouse concept 1 Some Metrovation concept 1 Significant Explore other options City park/building 1 Significant Dedicated senior housing 1 Significant Assumptions listed on separate chart 'Tukwila Village: Comparison of Basic Options' 7!2007. "Active" Gathering y .a No action /hold land 1 None Sell land "as is" 1 Unknown Develop mixed -use, gathering place 1 Townhouse concept 1 Some Metrovation concept 1 Most Explore other options City park/building 1 Some Dedicated senior housing 1 Unknown Assumptions listed on separate chart `Tukwila Village: Comparison of Basic Options' 7/2007. 11 Next Steps Council meeting on 8/13 Q &A basic options 1. No action 2. Sell property "as is" 3. Develop a mixed -use gathering place 4. Explore other alternatives Confirm project vision Choose a basic option Next Steps ti If Council chooses to develop a mixed -use gathering place, then: Consensus on project details (8/13, 8/20 8/27) Consensus on developer selection process (8/27) Council selects a developer (2007 Council approves development agreement (2008) 12 For more information If y ou would like to be included on the notification list, please contact Derek Speck in the Mayor's Office at 206 433 -1832 or dspeck @ci.tukwila.wa.us. 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