HomeMy WebLinkAboutCOW 2017-05-22 Item 4B - Ordinance - Condemnation of Land for Duwamish Gardens / Chinook Wind Projects- - ___y._ - - - 101iliedi,
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AGENDA 1TVNITITIT' Chinook Wind
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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.
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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
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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
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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
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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.
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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
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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;
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Parcel number: 1023049059
Address: 11231 E MARGINAL WAY S \
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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