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HomeMy WebLinkAboutCOW 2017-05-22 Item 4B - Ordinance - Condemnation of Land for Duwamish Gardens / Chinook Wind Projects- - ___y._ - - - 101iliedi, lm .No. CAS SFAFFSPONSOR: BOB GIBERSON 05/22/17 'V Ordinance for Condemnation of Real Property Cx1,1",(;()1n, z 1,)Istwssion M Alolion F-1 J�esolulion Z Ordinance Fj Bid XJY"(ff'l n Public I kafiqa [] 01ber ,V gl,-)(weO5122117 Al g V)ate .14� Date A 1 g Dale 06109117 A[/?, Dale� ARA Date lm .No. CAS SFAFFSPONSOR: BOB GIBERSON 05/22/17 AGENDA 1TVNITITIT' Chinook Wind Ordinance for Condemnation of Real Property Cx1,1",(;()1n, z 1,)Istwssion M Alolion F-1 J�esolulion Z Ordinance Fj Bid XJY"(ff'l n Public I kafiqa [] 01ber ,V gl,-)(weO5122117 Al g V)ate .14� Date A 1 g Dale 06109117 A[/?, Dale� ARA Date JV�g Date -e -e S1)()NS(W ElCouncil E111161)w- E]HR Ell)(D Ell"inallee E]Vh, E] IT E] I I&R 0 Polie, Z I'll' SlIONSOWS Council is being asked to approve the Ordinance that will allow for possible condemnation, appropriation, and payment in just compensation for the riverfront land that will link Duwamish Gardens and Chinook Wind. A 2015 Purchase and Sale Agreement, with the owner Amalfi, was unsuccessful after considerable negotiations. An Ordinance is necessary in order to construct a combined habitat and park site with Duwamish Gardens before the Chinook Wind design begins. cow Nit-g. EJ CA&P Cinte El F&S Cnite Z'Fransportation CITIte t.11tilitics C'rnte F] Arts Comm. ❑ Parks Comm. Planning C'0111111, D I"i 05/09/17 commin'Et'. CHA m: KATE KRULLER RECOMMENDATIONS: SPONSM/Ai).\HN. Public Works ("()MM"J"T"' Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE FMIFNIA Ri,,(,)i AmOUN,r BUDGETED APPROPRINTION REQUMED $0.00 ►0.00 $0.00 Fund Source: 412 SURFACE WATER (PAGE 101, 2017 CIP) Conunents: MTG. DATE] RECORD OF COUNCIL ACTION 05/22/17 06/05/17 MTG.DATE ATTACHMENTS 05/22/17 Memorandum dated 05/05/17 -Informational Page 101, 2017 CIP Draft Ordinance with legal descriptions and map City of Tukwila Public Works Administrative Settlement Procedures Minutes from the Transportation & Infrastructure Committee meeting of 05/09/17 06/05/17 17 1 City of Tukwila Public Works Department - Bob Giberson, Director INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Commi ee FROM: Bob Giberson, Public Works Director 4; BY: Ryan Larson, Senior Program Manager CC: Mayor Ekberg DATE: May 5, 2017 SUBJECT: Chinook Wind Project No. 91441202 Ordinance for Condemnation of ea Property A Ian Ekberg, Mayor 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 Duwamish Gardens site totals 2.16 acres and was developed as a fish habitat site with minor passive park features. Habitat features include a backwater channel that will allow juvenile salmonids an area to rest and feed off the main river channel and native vegetation. Duwamish 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 to own and maintain. The Chinook Wind site is approximately 250 feet downriver of Duwamish Gardens. The undeveloped riverfront property between the two sites is owned by Amalfi Investments (Amalfi) as part of a larger developed parcel that currently operates as a freight transfer facility. Staff has worked 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 Duwamish River between East Marginal Way South and Tukwila International Blvd. A Purchase and Sale Agreement (PSA) was executed between the City and Amalfi in 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 exchanged. In June of 2016, Amalfi 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 still interested in selling a portion of their riverfront property to the City, but at a price significantly higher than the appraised value. ANALYSIS The City has been working with Amalfi since 2013 to acquire additional property between Duwamish Gardens and Chinook Wind. The undeveloped riverfront property owned by Amalfi was appraised at $67,000, which was determined using an appraiser hired by the City and approved by Amalfi. This was the price agreed upon in the executed 2015 PSA. In a letter dated July 15, 2016, Amalfi offered to sell the property to the City for $125,368. This revised price was not based upon a formal appraisal, but rather on the property owner's subjective assessment reached after comparing sale prices for other non-similarly situated properties. W sPW EsPROJECTSA OIR Proi.eclesChinook Wind 19 4412,512)kirlfo Memo Chinook Wend Acqualloon Ordinance 050517 0 smedecse 19 INFORMATIONAL MEMO Page 2 Staff responded on August 18, 2016 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 this conditional offer. 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 be included. Acquisition of the additional property and construction at a later date would not be feasible due to access issue. The acquisition and restoration of this property is consistent with the WRIA 9 goal of providing additional habitat within the Duwamish Transition Zone to aid in salmon recovery. It is also consistent 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. Owners ROW Required (SF) 1023049059 Amalfi Investments LLC 13,125 sf The attached draft Ordinance provides the authority to acquire the needed riverfront property. As with previous projects that have required additional property, the City has done everything within its power to work cooperatively with the property owners. However, since negotiations with Amalfi have been unsuccessful, condemnation of the property will be required if the City wants to construct a combined habitat and park site. A letter to the property owner has been mailed notifying 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 project. RECOMMENDATION Council is being asked to approve the Ordinance authorizing and providing for the possible condemnation, appropriation, and payment of just compensation for the riverfront land that will link Duwamish Gardens and Chinook Wind and consider this item at the May 22, 2017 Committee of the Whole meeting and subsequent June 5, 2017 Regular Meeting. Attachments: Page 101, 2017 CIIP Ordinance with Legal Descriptions and Map Eng,PROJECTS1A, DA ProjecOs'Clnook Wind (9114412,02)Mo Merni) Chanook WW1d Aouction °Kira-lane 050517 q ii doer 20 PROJECT: DESCRIPTION: JUSTIFICATION: STATUS: MAINT. IMPACT: COMMENT: CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 Chinook Wind Purchase and restore site as a salmon estuary and passive park. Project No 91441202 The WRIA 9 Salmon Recovery Plan recommends creating 20-acres of off-channel habitat within the 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 King County Mitigation Bank. Site scheduled to be turned over to Tukwila. Passive park will require additional maintenance, Site may be developed by King County, Proposed grant funding for construction is from the KC Mitigation Bank, State Salmon Funding Recovery Board, State ALlA, and King County Flood Control District. FINANCIAL in $000's EXPENSES Through Estimated 2015 2016 2017 2018 2019 2020 2021 2022 BEYOND TOTAL Design Land (R/VV) Monitoring Const. Mgmt. Construction TOTAL EXPENSES FUND SOURCES Awarded Grant Proposed Grant Mitigation Actual Mitigation Expected City Oper. Revenue TOTAL SOURCES 6 27 0 700 15 715 15 15 500 5,000 5,515 10 10 10 10 10 10 10 10 706 27 85 500 5,000 6,318 33 33 0 0 600 115 715 15 15 5,450 65 5,515 10 10 10 10 10 10 10 10 0 6,050 0 0 268 6,318 Project Location 2017 - 2022 Capital Improve nl Program 101 21 22 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 Pro cessong \Ordinances1Acquisitiion for Chonook Wind Propect 4 -3 17 RL bys Page 1 of 4 23 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 Proc ssinglOrdinances■Acquisition for Chinook Wind Project 4-317 RL:bjs 24 Page 2 of 4 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 ProcessinglOrdinanceslAcquisition for Chinook Wnd Projec RL:bjs Page 3 of 4 25 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 2017, 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 \OrdinancesNAcquisition for Chinook Wind Project 4-3-17 RL.bjs 26 Page 4 of 4 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°44'33" WEST ALONG THE WEST LINE OF SAID GOVERNMENT LOT 1 A DISTANCE OF 740.69 FEET TO THE POINT OF BEGINNING; THENCE NORTH 81° 27'27" EAST A DISTANCE OF 235.31 FEET; THENCE NORTH 18 °59'50 " WESTA DISTANCE OF 55.88 FEET; THENCE NORTH 84 °20'10" WESTA DISTANCE OF 24.07 FEET; THENCE SOUTH 78 °03'34" WEST A DISTANCE OF 52.98 FEET; THENCE SOUTH 82 °43'36" WESTA DISTANCE OF 82.77 FEET; THENCE SOUTH 72 °34'44" WEST A DISTANCE OF 41.39 FEET; THENCE SOUTH 74 °10'39" WEST A DISTANCE OF 57.64 FEET TO THE WEST LINE OF SAID GOVERNMENT LOT 1; THENCE NORTH 01 °44'33" 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; 27 28 '0 0 m 0 � [L co Lu -c -'^ _ , ... ' o ' ...z. ' co ', Parcel number: 1023049059 Address: 11231 E MARGINAL WAY S \ — --, - - , i i -- - t _ _ 02 --f,I , - *Oriff," 7 if Duwamish River - t. 1---- - VV:\pVVEng\PRDJECT3\A,DRPmjentsUDuwVnnIsh Gardens 06-DRO2(Q0 0102 PF7D72ev1ppdf PDF processed with CutePDF evaluation editi0OvVVYVy.CutepQF.corm 30 City of Tukwila Jim Haggerton, Mayor Department of Public Works James F Morrow, RE., Director February 26, 2009 Mr. Ed Conyers Local Programs Engineer Washington State Department of Transportation P.O. Box 330310 Seattle, WA 98133-9710 RE: City of Tukwila — Administrative Settlement Procedures Dear Mr. Conyers: Following is the City of Tukwila's policy and procedures on acquiring real property through Administrative Settlement as requested for approval of the City's right-of-way acquisition procedures. Approving Authority The Director of Public Works is responsible for the real property acquisition on projects administered by the City and has the authority to approve administrative settlements subject to the following policies and procedures: Process A. Any administrative settlement which exceeds the fair market value as identified in the Review Appraisal must be documented and thoroughly justified. The rationale for the settlement shall be set forth in writing. The extent of written explanation is a matter of judgement and should be consistent with the circumstances and the amount of money involved. The Director of Public Works may approve an administrative settlement when it is determined that such action is in the public interest. B. In negotiating an Administrative Settlement, the Director of Public Works must give full consideration to all pertinent information including, but not limited to, the following: 1. All available appraisals, including the owner's, and the probable range of testimony in a condemnation trial. 2. Ability of the agency to acquire the property, or possession, through the condemnation process to meet the construction schedule. Impact of construction delay pending acquisition. The negotiator's recorded information. 6300 Southcenter Boulevard, Suite #100 • Tukwila, Washington 98188 • Phone: 206-433-0179 • Fax: 206-43 - 665 Page 2 of 2 4. Recent court awards in cases involving similar acquisition and appraisal problems. 5. Likelihood of obtaining an impartial jury in local jurisdiction, opinion of legal counsel where appropriate. 6. Estimate of trial cost weighed against other factors. C. An Administrative Settlement Memorandurri is submitted to the Director of Public Works for approval. D. The approved Administrative Settlement Memorandum is transmitted to the Acquisition Agent with instruction to negotiate an administrative settlement that does not exceed the authorized amount. If you have any questions or need additional information, please call me at (206) 433-0179. Sincerely, James F. Morrow, P.E. Director of Public Works File: 223.04 p:Iwsdot'approvals \row administrative settlement 2-26-09Aoc 32 Transportation & infrastructure Committee Minutes May 9, 2017 D. Resolution: Rejecting Bids for 2017 Overlay and Repair Program Staff is seeking Council approval of a resolution that would reject all bids for the 2017 Overlay and Repair Program. All four bids received were significantly higher than the Engineer's Estimate, likely from a highly competitive construction market. Staff intends to rebid a smaller program with updated cost estimates. UNANIMOUS APPROVAL. FORWARD TO MAY 15, 2017 REGULAR CONSENT AGENDA. E. Ordinance: Condemnation of Real Property for Chinook Wind Staff is seeking Council approval of an ordinance that would authorize condemnation of real property located on the riverfront between East Marginal Way South and Tukwila International Boulevard. This will provide a continuous habitat and passive park area between the Duwamish Gardens and Chinook Wind properties. The City has been working with Amalfi since 2013 to acquire this property, but the most recent offer was for $125,368, nearly twice the appraised value. The Committee requested clarity around the issue of gifting public funds and the City's inability to pay more than assessed value. Staff offered to attach the City's administrative policy regarding this to the memo, as well as to label Chinook Wind in the map. UNANIMOUS APPROVAL. FORWARD TO MAY 22, 2017 COMMITTEE OF THE WHOLE. F. Grant Applications: 2017 Annual Small Drainage Program Staff is seeking Committee approval to submit applications to the King County Flood Control District for construction funding for two projects along the Green River as part of the 2017 Annual Small Drainage Program. One project will install a ladder, railing and other safety improvements to the Gilliam Creek outfall, and the other will increase the height of a retaining wall on the south side of the South 180th Street Green River Bridge. Both projects are estimated to cost $154,750. UNANIMOUS APPROVAL. III. SCATBd IV. MISCELLANEOUS The Transportation Committee Meeting adjourned at 5:53 p.m. Committee Chair Approval Minutes by LH, Reviewed by GL 33