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HomeMy WebLinkAboutTIC 2017-05-09 Item 2E - Ordinance - Real Property Condemnation for Chinook Wind ProjectPublic 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 VAIFORITATIONAL MEMO Page 2 Staff responded 0D August 18.201O that the City could not pay almost twice the appraised value for the land, but countered with a settlement of $100,000 (subject to City Council approval) in lieu of the anticipated added costs for condemnation. Amalfi rejected thiSCODdidOD8|0K8[ With King County's acquisition of the Chinook Wind site, acquisition of the riverfront property becomes essential to link Duwamish Gardens and Chinook Wind and provide continuous park and habitat access between the two sites. The City had included this property in the Duwamish Gardens construction project based on the 2015 PSA, but was forced to remove it following the termination of the PSA. King County is starting the design process for the Chinook Wind site this year and must know whether this additional property will b8 included. Acquisition Of the additional property and construction 8t8later date would not b8 feasible due tO access issue. The acquisition and restoration of this property is consistent with the WRIA 9 goal of providing RddidOO8| habitat within the DUvv8[niGh T[8DGiUOD Zone LOaid in 8G|DlOO [8COVe[y. It is also CODGiGL8rk with Tukwila's Comprehensive Plan goals, which calls for restoring and enhancing natural environmental resources and providing a network of green spaces that are connected to each other. The acquisition details are shown in the following table with approximate property square footage: Parcel No. ROW Required (SF) 1023049059 'Amalfi Investments LLC 13,125 sf The attached draft Ordinance provides the authority k} acquire the needed hV8rfn3[t property. ASwith previous projects Ul81h8Ve[OqUi[8d8dditiOD8|p[OpertV'Ul8Cib/h8SdUD88vRRthiDgVithiDitSpOvv8r to work cooperatively with the property owners. However, since negotiations with Amalfi have been unsuccessful, condemnation Ofthe property will b8 required if the City wants LO construct 8combined habitat and park site. A letter to the property OVVD8[ has been mailed DObf»iDQ them of this potential condemnation and Council's schedule for ordinance approval. FISCAL IMPACT A final purchase price has not been determined, but budget is available through the Chinook Wind RECOMMENDATION Council is being asked to approve the Ordinance authorizing and providing for the possible condemnation, appropriation, and payment Of just compensation for the [iverfn3[d land that will link DuVv8DliGh Gardens and Chinook Winds and consider this item 81 the May 22.2U17 Committee Ofthe Whole meeting and subsequent June 5.2O17 Regular Meeting. Attachments: Page 1O1.am17C|P Ordinance with Legal Descriptions and Map WAPW Eng\PROJECT&A- DR Projects\Chinook*ind (91441202)\Info Memo Chinook Wind Acquisition Ordinance 05051rwsm.docx 40 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: Chinook Wind Project No. 91441202 DESCRIPTION: Purchase and restore site as a salmon estuary and passive park. The WRIA 9 Salmon Recovery Plan recommends creating 20 -acres of off - channel habitat within the JUSTIFICATION: Duwamish Transition Zone and lists this section of the river as critical habitat for salmon recovery within the Green / Duwamish Watershed. Property purchased and site cleared by King County in 2015 using King Conservation Futures and STATUS: King County Mitigation Bank. Site scheduled to be turned over to Tukwila. MAINT. IMPACT: Passive park will require additional maintenance. Site may be developed by King County. Proposed grant funding for construction is from the KC Mitigation COMMENT: Bank, State Salmon Funding Recovery Board, State ALIA, and King County Flood Control District. FINANCIAL Through Estimated (in $000's) 2015 2016 2017 2018 2019 2020 2021 2022 BEYOND TOTAL EXPENSES Design 6 700 706 Land(R /W) 27 27 Monitoring 15 15 15 10 10 10 10 85 Const. Mgmt. 500 500 Construction 5,000 5,000 TOTAL EXPENSES 1 33 1 0 715 1 15 5,515 1 10 10 1 10 10 1 6,318 FUND SOURCES Awarded Grant 0 Proposed Grant 600 5,450 6,050 Mitigation Actual 0 Mitigation Expected 0 City Oper. Revenue 33 0 115 15 65 10 10 10 10 268 TOTAL SOURCES 33 0 715 15 5,515 10 10 10 10 6,318 2017 - 2022 Capital Improvement Program 101 41 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING AND PROVIDING FOR THE ACQUISITION OF INTERESTS IN LAND FOR THE PURPOSE OF COMPLETING THE LINKAGE FOR THE DUWAMISH GARDENS AND CHINOOK WIND PROJECTS; PROVIDING FOR CONDEMNATION, APPROPRIATION, TAKING OF LAND AND PROPERTY RIGHTS NECESSARY THEREFOR; PROVIDING FOR PAYMENT THEREOF AND DIRECTING THE INITIATION OF APPROPRIATE PROCEEDINGS IN THE MANNER PROVIDED BY LAW AND FOR SAID CONDEMNATION; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, wild Chinook salmon runs were listed as "threatened" under the federal Endangered Species Act (ESA) in 1999; and WHEREAS, the Green /Duwamish and Central Puget Sound Watershed Salmon Habitat Plan was developed as a science -based approach to salmon recovery and was approved by 17 local governments, including Tukwila; and WHEREAS, the Habitat Plan outlines actions that should be implemented to help recover Chinook salmon including the construction of habitat projects within the Duwamish Transition Zone; and WHEREAS, the Tukwila Comprehensive Plan Goal 5.9 calls for "Restored, enhanced and protected natural environmental resources along the river, including trees, wildlife habitat, and features with value for long -term public, scientific and educational uses;" and WHEREAS, the Tukwila Comprehensive Plan Goal 6.2 calls for "A Network of Green Spaces — Recreational amenities, historical sites, rivers, wetlands, creeks, and other natural resources that are connected to each other and neighboring networks of lands. This network defines Tukwila as a Northwest City, and includes visually significant bands of vegetation that contrast with the build environment;" and W: Word Processing \Ordinances\Acquisition for Chinook Wind Project 4 -3 -17 RL:bjs Page 1 of 4 42 WHEREAS, the City of Tukwila has completed the construction of the Duwamish Gardens habitat project that included the construction of habitat features consistent with the recommendations of the Habitat Plan, as well as passive park features that included trails, viewpoints, and interpretive elements; and WHEREAS, the City of Tukwila has an approved Capital Improvement Project titled "Chinook Wind" that calls for acquisition and construction of riparian and off channel fish habitat and passive park elements; and WHEREAS, on October 19, 2015, the City Council approved a Purchase and Sale Agreement (PSA) with Amalfi Investments, LLC, which included the City's acquisition of real property necessary to link the Chinook Wind and Duwamish Gardens sites in exchange for the City transferring other real property to Amalfi; and WHEREAS, the PSA outlined the parties' obligations, the appraised value of the property, and settlement costs of the property being exchanged; and WHEREAS, on November 9, 2015, Amalfi Investments and the City executed the PSA; and WHEREAS, the City expended seven months and over $75,000 to fulfill its obligations under the PSA, including conducting environmental and cultural assessments, property survey, and boundary line adjustment legal descriptions-, and WHEREAS, in June 2016, Amalfi Investments notified the City they were no longer interested in exchanging properties with the City but were amenable to selling a portion of their property to the City at a price above the previously agreed upon appraised value-, and WHEREAS, after several months of negotiation, the City and Amalfi Investments were unable to agree on just compensation for the property; and WHEREAS, the City Council has found that the public health, safety, necessity, and convenience demand that the linkage between the Duwamish Gardens and Chinook Wind projects be undertaken at this time, and that in order to carry out the project it is necessary at this time for the City to acquire interests and rights to the property described herein; and WHEREAS, the City Council finds and declares it necessary and in the best interest of the public that interests in the land and property rights hereinafter described be condemned, appropriated, and taken for public use, subject to the making or paying of just compensation to the owners thereof in the manner provided by law; and WHEREAS, the City is authorized by RCW 35A.64.200 and Chapter 8.12 RCW to initiate eminent domain proceedings for the condemnation of the property; W: Word Processing\Ordinances\Acquisition for Chinook Wind Project 4-3-17 RL:bjs Page 2 of 4 43 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The portion of land and property rights within the City of Tukwila, King County, Washington, commonly known as 11231 East Marginal Way, Tukwila, Washington 98168, and further described in the attached Exhibit A and Exhibit B, are necessary for construction of the Chinook Wind Project ("the Project") described above, subject to making or paying just compensation to the owners thereof in the manner provided by law. Section 2. The City of Tukwila specifically finds construction of the Project to be a public use, specifically the construction of additional riparian habitat along the Duwamish River and the physical connection of the Chinook Wind and Duwamish Gardens sites and providing for non-motorized pedestrian connection. The City Council specifically finds construction of the Project to be necessary, and in the best interests of the citizens. Section 3. The cost and expense of acquiring said property rights shall be paid from the general funds of the City of Tukwila and from other monies applicable thereto that the City may have available or may obtain. The Director of the Public Works Department or his designee is hereby authorized to negotiate with and make offers to the owners of said land or property for the purposes of making or paying just compensation, and to approve the payment of just compensation as negotiated with said owners or as ordered by the Court. Section 4. In the absence of negotiated purchases with the affected property owners, the City Attorney is hereby authorized and directed to undertake proceedings provided by law to condemn, appropriate, and take the property necessary to carry out the provisions of this ordinance. The City Attorney is further authorized to approve and enter into any and all such agreements, stipulations, and orders necessary to carry out the provisions of this ordinance, including for the payment of just compensation as agreed to with the property owners, or as ordered by the Court. Section 5. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. W: Word Processing\Ordinances\Acquisition for Chinook Wind Project 4-3-17 RL:bjs Page 3 of 4 44 Section 7. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 12017. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Attachments: Exhibit A — Legal Description Exhibit B — Map Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing\OrdinancesWcquisition for Chinook Wind Project 4-3-17 RL:bjs Page 4 of 4 45 Exhibit A — Legal Description THAT PORTION OF GOVERNMENT LOT 1, SECTION 10, TOWNSHIP 23 NORTH, RANGE 4 EAST, W. M. IN KING COUNTY, WASHINGTON, LYING WESTERLY OF EAST MARGINAL WAY SOUTH, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID GOVERNMENT LOT 1, SECTION 10, TOWNSHIP 23 NORTH, RANGE 4 EAST; THENCE SOUTH 01 044'33" WEST ALONG THE WEST LINE OF SAID GOVERNMENT LOT 1 A DISTANCE OF 740.69 FEET TO THE POINT OF BEGINNING; THENCE NORTH 810 27'27" EAST A DISTANCE OF 235.31 FEET; THENCE NORTH 18 059'50" WEST A DISTANCE OF 55.88 FEET; THENCE NORTH 84 020'10" WEST A DISTANCE OF 24.07 FEET; THENCE SOUTH 78 003'34" WEST A DISTANCE OF 52.98 FEET; THENCE SOUTH 82 043'36" WEST A DISTANCE OF 82.77 FEET; THENCE SOUTH 72 034'44" WEST A DISTANCE OF 41.39 FEET; THENCE SOUTH 74 010'39" WEST A DISTANCE OF 57.64 FEET TO THE WEST LINE OF SAID GOVERNMENT LOT 1; THENCE NORTH 01 044'33" EAST ALONG THE WEST LINE OF SAID GOVERNMENT LOT 1 A DISTANCE OF 65.09 FEET TO THE POINT OF BEGGINNING; CONTAINING AN AREA OF 13,125 SQUARE FEET (0.30 ACRES), MORE OR LESS SUBJECT TO AND TOGETHER WITH EXISTING EASEMENTS; EN 1pd .Aw LOLddO \(Z060E906 Exhibit B FqProposed Acquisition Area _ _ _ S. 112th St. \ Parcel number: 1023049059 Address: 11231 E MARGINAL WAY S Gok6e\ '0\\1\les Duwamish River