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HomeMy WebLinkAboutFS 2010-08-17 Item 2C - Surplus - Recommendations for Potential City PropertiesTO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Bob Giberson, Public Works Director DATE: August 11, 2010 SUBJECT: Potential Surplus City Properties ISSUE Review staff recommendations for potential surplus city properties. BACKGROUND At the April 26, 2010 Committee of the Whole, Council directed staff to continue with analysis for the potential sale of the Old Fire Station 53 and West Valley Highway /S 180 Street properties and a continuation of the analysis for the best use of the old City Hall /former library building. Administration was requested to provide a recommendation and analysis on the three projects to the Council. Further, Council consensus existed to not consider the surplusing of the Way Back Inn properties on 42nd Ave S and Macadam Rd S. The Newporter property will be analyzed separately. ANALYSIS A high level appraisal and best use evaluation has been completed for the old City Hall /formerl library building as follows. The appraisals and evaluations of the old Fire Station 53 and West Valley Highway /S 180 properties are ongoing and will be brought back to a future committee >Property No. 4 Old City Hall /former library building This building is actually part of a large parcel that includes Fire Station 52 and Hazelnut Park. The building began as the Tukwila School in 1922 and then became City Hall from 1947 -1978. This building is also listed as an historic building with the National Historic Register, which limits the possibilities for other uses. The overall parcel size is 50,530 square feet and the hypothetical lot size for the old City Hall /former library building is approximately 12,632 square feet. The overall lot is zoned Low Density Residential (LDR), which has conditional uses that include schools, libraries, museums, art galleries and fire stations. In order to surplus the Old City Hall /former library building, the overall parcel would first have to be short platted into three parcels (one lot for each of the three uses fire station, park and Old City Hall). After the short plat has been complete, the one parcel would have to be re -zoned to office or commercial and approved by Council. Based on the above facts, the highest and best use is to retain ownership of the overall parcel and buildings as -is and seek out the best possible use for the community as a whole. 17 INFORMATIONAL MEMO Page 2 RECOMMENDATION Staff recommends that Council authorize staff to: 1. Continue to appraise and evaluate options for the old Fire Station No. 53 and the West Valley Highway /S 180 St properties; and 2. Evaluate and determine the best use for the community of the Old City Hall /former library building. ATTACHMENTS Vicinity Map of Old City Hall -April 26, 2010 Committee of the Whole Council minutes 18 W12010InfoMemos 1surpluscityproperties.docx Old Library/City Hall Parcel 3365901275 N gagioaaa&tosp,&iniMi 104 ft CityGIS Copyright 0 2006 All Rights Reserved The irrformation contained herein is the proprietary property of the contributor supplied under license and may not be approved except as licensed by Digital Map Products 19 20 APN: 3365901275 Address: 14475 59TH AVE S TUKWILA WA, 98168 Owner Name: TUKWILA CITY OF Owner Address: 6200 SOUTHCENTER BLVD TUKWILA WA, 98188 Owner Phone: Building SF: 5604 Acres (Assessor): 1.16 Acres (Calculated): 1.16 Lot Front: Lot Depth: Legal Description: 25 THRU 28 11 HILLMANS SEATTLE GARDEN TRS Land SF (Assessor): 50530.0 Land SF (Calculated): 50530.0 Land Use: PUBLIC: PUBLIC (NEC) Year Built: 1971 Assessed Value: $738,400 TBM Page: Sales Deed Cat: source: TAX_UPDATE 06/01/2005 00:00 21 22 Tukwila City Council Committee of the Whole Minutes April 26, 2010 Page 5 of 11 Vanessa Zaputil, 15171 52 Avenue South, indicated she has reviewed the new proposed noise ordinance She explained that Tukwila has a unique blend of existing residences and businesses co- existing in harmony. She requested the Council consider a modification to address noise in areas that are residential but have been zoned as a commercial district. She explained that in 1979 her husband constructed their triplex in a residentially -zoned area within Tukwila, and a few years later the City re- zoned the area Office /Commercial. She feels "residential district" should be defined as anywhere in the City where there is residential use. Allowing facilify maintenance noise beyond 10 p.m in a residential area, zoned commercial, is an unfair burden to those residents She feels this technicality could be remedied by extending the noise code to all residential uses, not just residential zoning. Ms. Zaputil said she agrees with the proposed notification regulations pertaining to variances, and that notifying citizens of noise issues after 10:00 p.m is a courtesy to the affected residents. Lynn Peterson, 15185 62 Avenue South, indicated he is concerned about the language relating to the definition of "plainly audible sound" and the use of a tape measure rather than a decibel meter. He feels it would be in the best interest of the City to utilize a decibel meter Aaron Hundtofte, 3723 South 126` Street, indicated he has reviewed the proposed noise code amendments and the proposed changes would be beneficial to the City and the residents 8:50 p.m. Council President Robertson closed the public hearing. SPECIAL ISSUES a. Budget Revenue Options: Surplus City Property, Property Tax Levy Lid Lift, EMS Levy, Planning Fees, TBD Sales Tax, Utility Tax on City -owned utilities, Increase business license fees; Revenue generating regulatory license. Surplus Prooert r��. Mr Hunstock explained there are City -owned properties that have the potential to be surplussed, and other properties that are underutilized that could be sold or put to a different use Selling the surplus property could be accomplished with little cost and effort by City staff He stated there are two major decision points to this proposal' 1) whether to sell each particular property; 2a) if the decision is to sell, when should the sale take place, and 2b) if the decision is not to sell, is there a better use for the property than its current use. Derek Speck, Economic Development Administrator, explained the City does not have an expressed policy relating to the disposal of City property Upon review of the property that staff has identified as surplus, the Council could move forward with possibly selling the property Staff would coordinate an appraisal process and provide those values to the Council at a later date The property value information provided in the agenda packet was received from the King County Assessor's Office. Council President Robertson explained the purpose of the discussion of these items is to provide direction to staff and the administration. Property No. 1 Old Fire Station 53. located at 12026 42 Avenue South: The building is vacant and the garage currently is used for Police evidence storage Lease and sale of the existing land and buildings are constrained by the existing non- conforming use in a residential zoned area It would be possible that a short plat of three lots could be sold for $150,000 each. Council President Robertson explained he would be in favor of selling the property if it were developed as residential. He indicated he would like to review an analysis of the value of the property in its current state and the value of the property if the buildings were demolished. Councilmember Hernandez explained that since the building is not usable, it would be better served as three lots for residential development. Councilmember Quinn indicated he supports selling the property. However, the issue of the Police evidence storage is a very big part of the final decision. 24 Tukwila City Council Committee of the Whole Minutes April 26, 2010 Page 6 of 11 After Council discussion, there was consensus to have staff complete an analysis for the recommendation of selling the land with the caveat that it be developed into a residential use. Property No. 2 South 180 and West Valley Highway: Currently, NC Machinery is utilizing this space as generator storage with a month -to -month agreement without compensation to the City After Council discussion, it was determined the property has no other uses, and the Council requested an analysis for the recommendation of selling the property. Property No. 3 -Old Newporter Site located at 149xx and Tukwila International Boulevard: Derek Speck, Economic Development Administrator, explained the property was intended as a relocation site for Northfield Carwash, and it is currently vacant. Adjoining property owners have contacted the City about potential uses for the parcel, and staff is performing an analysis on the value of selling the property alone and the value of the property if it were to be sold in conjunction with adjacent properties Councilmember Hernandez explained that selling this property would raise the most funds and would decrease the amount of tax increases. She would like to see an analysis of the potential of the property including the appraised value of the property Councilmember Quinn explained he would like more information about potential uses of the parcel and the possible development. The location of the parcel is on Tukwila International Boulevard and a great development could continue to revitalize the area, maintaining the City's vision for that part of the City. Council President Robertson indicated the location of the parcel is within walking distance of the light rail station He would like to have staff provide detailed information relating to the possible sale of the parcel There was Council consensus to have staff continue with an analysis on a the sale of the parcel Property No. 4 Old Tukwila City Hall former library buildlna: Councilmember Quinn indicated the Council heard three possible uses for this building at the April 19, 2010 Regular Council Meeting. He explained he would like more information on other potential uses and funding for the facility. Councilmember Hougardy explained she would like staff to research other uses that include leasing the facility. Councilmember Hernandez explained this building is the only building that is on the National Historical Register, and she would like to review other potential uses for the facility After Council discussion, there was consensus for staff to continue analyzing potential uses for the site with lease options, and to remove the facility from the surplus property list. Property No. 5 located at 15421 42 Avenue South This single family residence is leased to the Way Back Inn as a transitional housing facility. One family is currently utilizing the residence. Council President Robertson asked how the Way Back Inn is able to utilize the residence Evelyn Boykan, Human Services Manager, indicated the City has a lease with the Way Back Inn for three transitional housing sites within the City Volunteers from the Way Back Inn maintain each of the facilities The City is responsible for the utilities and those costs are funded through the Human Services budget. Currently, approximately $15,000.00 is budgeted for these types of expenses Property No. 6 located at 14688 Macadam Road South This duplex currently has one family in each unit. Families are allowed up to 90 days in the transitional housing through the Way Back Inn program Tukwila City Council Committee of the Whole Minutes April 26, 2010 Page 7 of 11 After Council discussion, there was consensus to remove both of the properties from the surplus list and continue the transitional housing program with the Way Back Inn Council President Robertson summarized that there is Council consensus for staff to continue with analysis for the potential sale of properties no.'s 1 -3 The Council would like properties no 's 5 -6 removed from the surplus property list; and continuation of the analysis for the best use of property 4, which is the old Tukwila City Hall /former library building. He requested the administration provide a recommendation and analysis on the four projects to the Council no later than July 2010. Steve Lancaster, City Administrator, explained the administration could provide a recommendation and analysis on the potential sale of properties number 1 -3 However, at the direction of the Council, it was determined that suggested uses for the old Tukwila City Hall/former library building would follow the Council process and be reviewed at the Finance and Safety Committee meetings Mr Lancaster explained that staff would try to meet the July 2010 deadline for a recommendation of potential uses for that facility Property tax levy lid lift: Mr Hunstock explained the proposal would be to increase property tax assessments through an increase in the City's property tax levy rate The City's current levy rate is $2.67 per $1,000 of assessed value The City's maximum allowable levy rate is $3 10, and an increase of $0 43 that would generate $2 1 million in additional revenue. Councilmember Ekberg asked if the Council would be required to set the duration for the levy lid lift. Mr. Hunstock answered in the affirmative Council President Robertson explained this item could increase revenue by $2 1 million, and he is in favor of considering a property tax increase. Councilmember Hernandez explained the voters would decide on this property tax increase, and she would be willing to explore this option Councilmember Duffie concurred with Ms. Hernandez. Councilmember Quinn explained he does not approve of this option that at this time. He would like this option returned after the Council has reviewed the possible service reductions. Councilmember Hougardy explained the Council would need to be able to explain why the increase is necessary. She suggested postponing the discussion on this item until there is a good answer to that question Council President Robertson stated the Council would need to provide direction to staff about how much of an increase they recommend and the duration of the lid lift. After Council discussion, it was determined staff would provide information on a $0.20 increase or $2.87 per $1,000.00 of valuation for discussion in January or February 2011. Council President Robertson explained there is Council consensus to keep this item on the list of potential revenue options for a future discussion Emeraencv Medical Service (EMS) Levy: RCW 84.52.069 allows for an additional regular property tax levy for emergency medical services of up to $0.50 per $1,000 of assessed value. King County currently has a county -wide levy for EMS purposes. The City could assess $0.20 per $1,000 of assessed value that would generate approximately $1 million in revenue Council President Robertson asked whether the City could consider this option if the City participated in a Fire District. 25 26