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HomeMy WebLinkAboutTrans 2014-01-27 Item 2E - Discussion - King County Metro Transit Interurban Avenue South Leased Park and Ride LotCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Transportation Committee FROM: Bob Giberson, Public Works Director DATE: January 24, 2014 SUBJECT: Kind County Metro Transit Interurban Ave S Leased Park - and -Ride Lot ISSUE Discuss status of King County Metro Transit leased Park - and -Ride Lot on Interurban Ave S. BACKGROUND King County Metro Transit owns the large Park - and -Ride Lot on Interurban Ave S. For the last twenty years, King County has also leased the small vacant parcel at the southwest corner of 52nd Ave South as an auxiliary parking lot to the adjacent large Park - and -Ride Lot. The lease for the small parking lot will be terminated effective January 31, 2014 and 41 parking spaces will be lost. ANALYSIS King County Metro Transit is attempting to convert the lease on the small parcel to a temporary month -to -month rental until they can find a replacement Park - and -Ride Lot. King County Metro Transit is exploring all options to replace this critical leased accessory lot. RECOMMENDATION For information only. Attachments: January 2, 2014 letter to King County Metro Transit January 16, 2014 letter to Curran Law Firm Aerial Map w:lpw englothertbob gibersonlcorrespondencellnfo memo kcm leased interurban park- and -ride lot gl.docx 33 CURRAt\T LAW FIRM T 253 852 2345 F 253 852 2030 F 253 859 8037 January 2, 2014 Mr. Steve Cahan Leased Park & Ride Lot Program Manager Department of Transportation King County Metro Transit Transit Route Facilities Program 201 South Jackson Street M.S. KSC -TR -0413 Seattle, WA 98104 -3856 Curran Law Firm P.S. 555 West Smith Street Post Office Box 140 Kent, WA 98035 -0140 curraniirm.com Re: Tukwila Park & Ride auxiliary lot at Interurban Avenue S. and 1 -5 interchange; Lot 746.1 (41 spaces) Dear Mr. Cahan: On behalf of Tukwila Interurban Investments, Inc., the owner of the property at 13451 Interurban Avenue South (King County parcel number 0003000004), which King County Metro has leased since 1993, this letter will confirm that Metro's lease for the property has been terminated effective January 31, 2014. As you will recall, the lease was terminated by email from Morgan Llewellyn, the owner's agent, to you on October 3, 2013, which you acknowledged receiving by email on that same day. The owner remains willing to lease the property, but cannot continue to do so at the same rent that has been charged, and paid regularly thank you, since the lease started back in 1993. Although not an absolute indicator of fair market rent for such property, the consumer price index for the Seattle/Tacoma area has increased by 240% since 1993. The assessed value of the property has increased from $92,000 to $252,900; an increase of 275% during that same time. It is unfortunate that you were not willing to accept the earlier offer to extend the lease, which even though it was an increase of 50% was far below the change in market conditions since 1993. As a result of terminating this lease, Metro will lose 41 parking spaces in one of its highest utilized locations. According to your own utilization report for the fourth quarter of 2012, this lot is the third highest in your inventory with utilization of 111%. The adjacent lot is already at 98% utilization, so it doesn't have much capacity to absorb the many vehicles that currently use the auxiliary lot. Those commuters that will no longer be able to find parking at this location will either have to drive to another park and ride lot, possibly stop using Metro altogether, or more likely use nearby surface streets or Theresa M. Ahern Mark W Davis Chad Horner Retired: John M. Casey Greg W Haffner J. David Huhs Charles P. Curran Sam Chalfant David G. Hobson Kevin J. Jussel Melvin L. Kleweno, Jr. Mary E. Coleman David T. Hokit Jane C. Rhodes 34 Page 2 parking areas owned by private individuals and businesses for their customers and employees. The latter decision will irritate property owners who don't like commuters using their property or adding congestion to their neighborhood. Doing anything that discourages people from using mass transit is contrary to the intent of the Commute Trip Reduction Law, passed in 1991 to improve air quality, reduce traffic congestion, and reduce the consumption of petroleum fuels. Should you wish to change your mind and desire to enter into a new lease for the Tukwila auxiliary lot, please let me know. Otherwise, the owner of the property will continue marketing it for lease and /or development. Sincerely, CURRAN LAW FIRM P.S. Grg W - affner ghaffnerP.cu rranfirm.com cc: Louise Strander, Tukwila Interurban Investments, Inc. Jim Haggerton, Mayor, City of Tukwila (6200 Southcenter Blvd., Tukwila, WA 98188 -2544) Derek Speck, Economic Development Administrator, City of Tukwila (6200 Southcenter Blvd., Tukwila, WA 98188 -2544) Kevin Desmond, General Manager, King County Metro Transit (King Street Center, 201 S. Jackson St., Seattle, WA 98104) Larry Phillips, King County Council District 4 Chair of the Transportation, Economy and Environment Committee (516 Third Ave., Rm. 1200, Seattle, WA 98104) Dave Upthegrove, King County Council District 5 (516 Third Ave., Rm. 1200, Seattle, WA 98104) 35 King County Department of Transportation Metro Transit Transit Route Facilities Program 201 South Jackson Street M.S. KSC -TR -0413 Seattle, WA 98104 -3856 January 16, 2014 Greg W. Haffner Curran Law Firm P.S. 555 West Smith Street Kent, WA 98035 -0140 Dear Mr. Haffner: Thank you for your letter of January 2, 2014, also copied to Metro Transit General Manager Kevin Desmond, confirming the termination of Metro's lease of the property located at 13451 Interurban Avenue South, also known as the Tukwila Park - and -Ride auxiliary lot, Lot 746.1, effective January 31, 2014. I would like to thank Tukwila Interurban Investments for the twenty years use of this property as a leased park- and -ride lot for our transit customers near the permanent Tukwila Park - and -Ride. However, it is not economically feasible for Metro to continue to lease at the requested marked increase in rent from $1,000 to $1,500 per month, which we were told was non - negotiable. Metro cannot compete with market rates under this park -and -ride leased lot program and particularly in light of funding issues facing Metro. I understand special circumstances existed in 1993 when the lease was signed with rent payment of $1000 per month or $24.39 per space per month, which at the time was several -fold times that paid for any other park- and -ride space Metro leased. Leasing this parking area at $24.39 per space per month for the 41 spaces still greatly exceeds all other leased surface parking space Metro leases, even before a requested fifty percent (50 %) increase in rent. Again I would propose to negotiate the leased rent, as conveyed in earlier conversations and emails with property agent, Morgan Llewellyn. Your letter refers to "... the owner of the property will continue marketing it for lease and/or development." Would Tukwila Interurban Investments have an interest in continuing to lease to Metro at the current rent on a month -to -month basis until another use is found? If this is not acceptable or we can't reach some mutually negotiated agreement, Metro plans to close this leased park- and -ride on January 31st and notify its customers. Thank you again for your letter. If you have further questions, comments or to discuss, please contact me at 206 - 477 -5780 or via email at steve.cahan @kingcounty.gov. 36 AERIAL PHOTO