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HomeMy WebLinkAboutCAP 2016-11-14 Item 2F - Discussion - Developer Selection for Motel SiteCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Affairs and Parks Committee FROM: Derek Speck, Economic Development Administrator CC: Mayor Ekberg DATE: November 9, 2016 SUBJECT: Developer Selection Process for Motel Site ISSUE City staff is seeking Council approval of a process to select a developer for the four parcels of land the City owns at 14420, 14440, 14442, and 14452 Tukwila International Boulevard. BACKGROUND In 2014 and 2015 the City purchased the Great Bear Motel, Boulevard Motel, Spruce Motel, and Sam Smoke Shop properties located at 14420, 14440, 14442, and 14452 Tukwila International Boulevard to reduce crime and revitalize the neighborhood. In 2016 the buildings were demolished and the land is now vacant. At the time of the acquisition the City had planned to sell the properties and currently has budgeted the sale to occur in 2018. Recently the City received letters from two organizations, El Centro de la Raza and HealthPoint, expressing interest in purchasing the properties. The letters are attached and provide a description of the organizations' proposed development of the site. Both organizations have expressed a desire to seek funding for their proposed development from Washington State in the 2017 -18 biennium, which starts this January. HealthPoint anticipates the State funding could be as much as $3 million. They believe that an organization would need to have been selected by the City to begin negotiations in order to be competitive for State funding. DISCUSSION This staff report is not requesting a Council decision on whether to select either of the two organizations. The key questions at this time are whether to start a developer selection process and on what schedule. If the Council approves a developer selection process then staff would invite statements of interest from all organizations, evaluate them, and bring them back to the Council for a decision on whether to select one. Even if the City starts a selection process, the Council is not required to select any of the applicants. Further, even if the Council selects an application for negotiations, the City is not required to enter into an agreement with the applicant. Of course, we do not want to conduct a selection process and enter into negotiations if the Council is not willing to consider selling the property. In terms of whether to start a developer selection process, one key consideration is whether the City wants to use the property for a new Justice Center to house the police department and municipal court. We should note that this site is 1.7 acres and the facilities plan estimated the Justice Center would need 5 acres. The City has not yet conducted a study of possible sites for the Justice Center. If the Public Safety bond passes, it may take a few months to make a site location decision which could risk the state funding opportunity. 121 INFORMATIONAL MEMO Page 2 If the City wants to complete the selection process in time for the selected organization to compete for State funding, we would need to proceed on the following schedule: 11/8/16 11/8/16 11/14/16 11/14/16 11/17/16 11/21/16 11/24/16 12/1/16 12/5/16 12/9/16 12/12/16 12/12/16 12/19/16 Finance and Safety Committee discussion (completed) Briefing to Tukwila International Boulevard Action Committee (completed) Community Affairs and Parks Committee discussion Council COW discussion of process First publication inviting statements of interest and qualifications Council Regular meeting with vote approving process Second publication Third publication Statements of interest and qualifications due by 12:00 PM Staff analysis and Council agenda published for public review Council COW discussion of statements, staff analysis and options Council Special Meeting authorizing Mayor to enter into negotiations Council Regular meeting (if a decision is not made on 12/12) The opportunities for formal public input would be at the Council meetings on 11/17, 11/21, and 12/9, plus community members can always provide informal input through direct communication with Council and staff. It is important to note that if a developer is selected, there will be additional opportunities for public input as negotiations proceed and the City makes decisions on what requirements to include as part of the land sale. This schedule is very fast compared to the typical developer selection schedule. This is reasonable because the City already has a wealth of public input in terms of the community vision for the TIB neighborhood since the public has provided significant input through the Tukwila International Boulevard Revitalization Plan, Tukwila Village, the Tukwila International Boulevard Element of the Comprehensive Plan, and other community conversations. Staff believes that both organizations are well respected, experienced, and have positive visions for the community and the site and we don't want to miss an opportunity for a high quality project to receive state funding. We recommend the Council approve a selection process as outlined above. FINANCIAL IMPACT This item would have no financial or budget impact at this time. At some point the City will need to decide whether to sell the property. If the City does not sell the property, it will need to remove the revenue projection from the budget. If the City sells the property, it would receive revenue. RECOMMENDATION The Council is being asked to pass a motion approving the developer selection process as outlined in this memo and consider this item at the November 14, 2016 Committee of the Whole meeting and subsequent November 21, 2016 Regular Meeting. ATTACHMENTS Map of properties Letter from HealthPoint dated October 24, 2016 Letter from El Centro de la Raza dated November 7, 2016 122 Developer Selection Discussion vt. %a -tiff Parcels Under Consideration A: Great Bear Motel, 14420 TIB B: Boulevard Motel, 14440 TIB C: Spruce Motel, 14442 TIB D: Sam Smoke Shop, 14452 TIB Note: Parcel E, Travelers Choice Motel is not included in the developer selection discussion. Inv i i �i Printed: 11/9/16 f') HealthPoint www.health pointchc.org October 24, 2016 Mayor Allan Ekberg City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Dear Mayor Ekberg, ADMINISTRATION 955 Powell Avenue SW Renton, WA 98057 !flail) (425) 277 -1311 fax (425) 277 -1566 I am writing this letter to express HealthPoint's firm interest in purchasing the "motel" properties on International Boulevard between S. 144th and S. 146`h streets. We would like to purchase these properties in order to build a comprehensive health and wellness center. HealthPoint's Tukwila Health and Wellness Resource Center is envisioned as a centrally located and well integrated facility that would include comprehensive primary medical and dental care as well as a host of other programs, services and resources that help the community get well and stay well. HealthPoint would expand upon its work to develop an innovative model that extends the traditional health center — a model that takes an active role in addressing community factors and the social conditions that impact the health of individuals and the community. HealthPoint has grown rapidly to meet increasing demand for affordable and accessible primary care, but has also realized the need for a more comprehensive approach that addresses the many needs of a community through collaborative partnerships and shared space. The Tukwila Health and Wellness Resource Center would engage and co- locate other partners working on important issues such as mental health and substance abuse, economic development, housing, education and job training. We envision a center with partners who work creatively and collaboratively to address the health needs of the Tukwila community and promote wellness. Early conversations have included leaders from the following organizations: Valley Cities Counseling, Navos, RAYS, LifeLong, Global to Local, SHAG, Providence, Salal Credit Union, the YMCA, and Bellwether Housing, and we continue to consider and evaluate other potential partnerships. We recognize the pressures of affordable housing in today's economy and are committed to exploring affordable housing as part of the development. HealthPoint has been providing affordable quality health care to South King County residents for 45 years. Early clinic locations in Renton and SeaTac provided care to Tukwila residents, and in December, 2011 we opened our first location in Tukwila in partnership with Highline Hospital (at the old Riverton Hospital ER) to provide better access to primary care for area residents. Today, at HealthPoint Tukwila on Military Road we are a health care home to almost 2,000 Tukwila residents. This fall we opened our adjacent dental clinic to provide better access to dental care for the community. While we are pleased to provide services at this location (Cascade Medical Building) the space is limited and the location continues to be a challenge. With a relatively short lease (4.5 years) we are ready to begin planning for a greater presence and new development. CLINIC LOCATIONS: Auburn • Auburn North • Bothell • Federal Way • Kent • Midway • Redmond • Renton • SeaTac • Tukwila • Evergreen Campus • Tyee Campus 125 We've been planning for the Tukwila Health and Wellness Resource Center for many years. Our original planning for this started in 2012 when we were hoping to be a part of the Tukwila Village development. As our plans grew it became apparent that we would not be able to fit within that site. The properties adjacent to Tukwila Village would be a perfect location for this center, as our services would fit well with this new senior housing development. We are submitting this request now because there is an opportunity to approach the State Legislature in January, 2017 to ask for funding during the 2017 -2018 biennium. We believe we have the opportunity to receive as much as $3,000,000 to purchase the property and get the planning underway. In addition, there will likely be funding for projects like this during the 2019 -2020 biennium, so we would go back to the Legislature with a second ask for help in construction of the center. We would like to best position ourselves for these next two cycles of State funding that may be available to us, as the funding is critical to executing a project like this. We have been advised that in order to be selected for State funding we need the City to select us to begin negotiations to purchase the property. We are ready now to begin those negotiations to purchase the properties at market rates. For many years HealthPoint has partnered with the City of Tukwila to better understand the unique needs of this community and to bring services to the community. We have always planned to bring more comprehensive services to better address the needs and improve the health of individuals and community. We believe we can do this with the development of HealthPoint's Tukwila Health and Wellness Resource Center. We are grateful for your consideration of this request and we look forward to hearing back from you soon. In the meantime, please let us know if there is any additional information we can provide to you with this request. Since ely, Thomas Trompeter President and CEO 126 ELCENTR Programs & Services With over 26, o0o volunteer hours, El Centro de la Raza serves 16,072 idividuals and 9,989 families through the following programs and services: Basic Healthcare Enrollment Bebes! Infant Mortality Prevention Cafe con El Centro Cesar Chavez Demonstration Garden College Readiness Comadres Community Meeting Space Community Service Crisis Advocacy Cultural / Political / Social Events DSHS People Point WA Connection Economic Development ECR Transitional Housing El Patio Apartments Employment Assistance ESL Classes / Spanish Classes Families & Education Levy Case Management Financial Empowerment Food Bank Foreclosure Counseling Growing & Learning Together Homeless Assistance Healthy Cooking Classes / Nuestras Comidas Hope for Youth Poetry & Civil Rights History Classes HUD Housing Counseling Immigrant / Human / Civil Rights Social Justice Advocacy Jose Marti Child Development Center Latino Hot Meal Program Legal Clinic Site Local, State, National & International Coalition Building Luis Alfonso Velasquez Flores After School Program Parent -Child Home Program Plaza Roberto Maestas Santos Rodriguez Memorial Park Senior Nutrition & Wellness Senior Home Delivered Meals Smoking Cessation Tax Prep Site Transit Oriented Parking Veteran's Services Youth Case Management & Cultural Enrichment Youth Employment Youth Technology Training Youth Violence Prevention dc November 7, 2016 Mayor Allan Ekberg City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Estimado Mayor Ekberg, The Center for People of All Races A voice and a hub for the Latino community as we advocate on behalf of our people and work to achieve social justice. The intent of this letter is to inform the City of Tukwila of the interest of El Centro de la Raza in the development of the properties at: 14420, 14440, 14442, and potentially 14452 Tukwila International Boulevard, Tukwila WA 98168. In addition, El Centro is interested in the potential development of property in the Tukwila Transit Overlay Zone and other areas along Tukwila International Blvd. As an organization grounded in the Latino community, it is El Centro de la Raza's mission to build unity across all racial and economic sectors; to organize, empower and defend our most vulnerable and marginalized populations; and to bring justice, dignity, equality, and freedom to all the peoples of the world. El Centro de la Raza was founded in 1972, when a group of diverse community members led a peaceful three -month occupation of the abandoned Beacon Hill School to protest cuts in English as a Second Language classes. Today, as a hub of the Latino community in Seattle and King County, El Centro de la Raza provides 49 comprehensive programs and services that empower members of the Latino community and other diverse and historically underserved populations as fully participating members of society. El Centro de la Raza responds to the broad range of community needs with culturally and linguistically competent programs in areas of human and emergency services, children and youth, asset - building and education, and housing and economic development. Of the 16,072 individuals and 9,989 households served in 2015, 55% of participants were Latino, 91% were people of color, and 93% were low - income. Our vision for development would include a community inspired, mixed use transit oriented development along Tukwila International Blvd., to include affordable housing, retail space, and offices to support educational, asset building, economic development, child care and human services programs. In addition, our development would include a multicultural- community center space, a commissary kitchen and public open space that would support the development of small businesses and the establishment of an international style market. Community Action Agency • United Way Agency • Affiliate of National Council of La Raza 2524 16th Avenue South, Seattle, WA 98144 • (206) 957 -4634 tel • (206) 329 -0786 fax 27 www.elcentrodelaraza.org • 5o1(c)3 Nonprofit Tax ID: 91- 0899927 El Centro hopes to expand its existing skills training and small business development services to the Tukwila area. Finally, the model we have in mind would develop retail business space and community and office space on the ground level and, affordable apartments in the upper floors. El Centro is open to partnerships with other organizations to provide additional services from the site, such as health care providers who have experience providing services to diverse communities and also led by communities of color. This project would support several elements of the City of Tukwila Comprehensive Plan, particularly in the Housing, TIB and Economic Development areas. To support economic development, El Centro would provide programs to improve and support the opportunities for education, skills training and job acquisition for Tukwila residents. By expanding our existing business opportunity center that supports entrepreneurs to develop their own small businesses, we would encourage and support aspiring local entrepreneurs, local startups and businesses to establish in Tukwila. An emphasis would be placed on businesses owned by people of color, women and veterans. With the inclusion of a commissary kitchen in the facility, the development will support food- related workforce development and entrepreneurship training, creating small businesses and new jobs for residents. A principal element of the development would be the creation of a significant number of high quality, affordable housing apartments. The mixed use development would feature ground level commercial and office space, and residences in the floors above street level. With a variety of educational and human services on site, families would be supported to permanently improve their economic well- being. El Centro de la Raza has a successful track record of working with affordable housing development consultants and funders to successfully finance the type of mixed use development we are proposing in the form of tax credits, fund development and other creative financing strategies. In relation to the Tukwila Village, this development would constitute an expansion of mixed use development, and an increase of local consumers living in the immediate area which will have a significant positive impact for local merchants. The development would support the community's expressed desire for attractive, walkable, locally- oriented activities that build on the Tukwila Village Project. The project would orient businesses along Tukwila International Blvd. to support a more vibrant, walkable business district. The project will provide public and private community gathering spaces for temporary events including food, art, music, pop -ups and activities that leverage nearby assets, such as schools and the library, and would reflect the international, multicultural character of the TIB area. Space and infrastructure will be provided to support permitted food vendors, pop -ups, and a farmer's market where residents and visitors will gather and sample multicultural flavor of the TIB area. For over four decades El Centro de la Raza has provided services and opportunities to immigrant, refugee, English Language Learners, low income, communities of color and other historically under - represented communities. In relation to affordable housing, El Centro's experience includes the development and management of affordable housing over the last 20 years. Our largest and most recent development is Plaza Roberto Maestas, 128 Community Action Agency • United Way Agency • Affiliate of National Council of La Raza 2524 16th Avenue South, Seattle, WA 98144 • (206) 957 -4634 tel • (206) 329 -0786 fax www.elcentrodelaraza.org • 501(03 Nonprofit Tax ID: 91- 0899927 which is a new development at El Centro de la Raza, adjacent to the Beacon Hill Light Rail Station. This $45 million development, which was completed in the summer of 2016, has a total of 110 units of affordable housing available to individuals and families who earn between 30 % -60% of Area Median Income. This project was completed on time and under budget and also includes a new 9,200 square foot child development center. 3,200 square feet of Retail Restaurant space, a 570 square foot commercial kitchen, 4,500 square feet of office space and a beautiful 12,000 square foot public plaza. This development is a five over one design with the ground floor consisting of retail office and classroom space, and the top five floors consisting of affordable housing on the ground floor, and one, two and three bedroom apartments on the top five floors. El Centro de la Raza is interested in a partnership with the City of Tukwila that will support the creation of the development described above that will serve the residents of Tukwila for decades to come. We would look to negotiate a fair purchase price for the property, that makes this development affordable and mutually beneficial. In summary, with quality affordable housing, economic and retail development, job creation and educational and human services, this development will directly impact the quality of life for residents, help alleviate and eliminate poverty and offer amenities that support the social and economic health and vitality of the City of Tukwila and its residents. We appreciate your consideration and look forward to hearing back from you. Mil Gracias, Estela Ortega Executive Director El Centro de la Raza Community Action Agency • United Way Agency • Affiliate of National Council of La Raza 2524 16th Avenue South, Seattle, WA 98144 • (206) 957 -4634 tel • (206) 329 -0786 fax 29 www.elcentrodelaraza.org • 501(c)3 Nonprofit Tax ID: 91- 0899927