HomeMy WebLinkAbout02 FULL Request for Proposal - Longacres Way ParcelREQUEST FOR PROPOSALS
FOR SALE: 3.18 Acres in Tukwila, WA
Introduction
The City of Tukwila is accepting offers to purchase and develop a 3.18 acre parcel of City -
owned vacant land. The parcel is located at Longacres Way near 1-405 in Tukwila and known
as King County Assessor Parcel Number (APN) 242304-9034.
The City's parcel is adjacent to a vacant 4.66 acre parcel (APN 242304-9137). That parcel is
also for sale and owned by Leuqar BB, LLC.
Due to shared easements and the configuration and location of both parcels, the City is
interested in selling its parcel to a buyer who will purchase and combine both parcels for an
integrated development. The combined parcels total approximately 7.84 acres. The City and
Leuqar are coordinating the sale of both parcels so they can be purchased and developed
simultaneously; however, each party retains the rights and authority for selling the parcel it owns
separately.
Background
The City's parcel for sale is APN 242304-9034, which is located between 1-405 and Longacres
Way. It is adjacent to a vacant 4.66 acre parcel (APN 242304-9137) that is also for sale and
owned by Leuqar BB, LLC. The site, which includes both parcels, is approximately 7.84 acres
and served by utilities at Longacres Way. The site is unique because it has excellent freeway
access and visibility, transit access, and walkability; however, it is also located between two
railroads. Due to the location, configuration, and shared easements on the parcels, the City is
interested in selling its parcel to a buyer who will be able to purchase and combine both parcels
for an integrated development totaling approximately 7.84 acres.
The City's parcel is a 100 feet wide strip of vacant land. The City acquired a portion of its parcel
in 1998 as part of a larger plan to construct a convention center. The City acquired the
reminder of the parcel through land exchanges to support the relocation of the Union Pacific
railroad tracks to facilitate quality development around the commuter rail station. The City is no
longer attempting to move the Union Pacific tracks. The City is currently using its parcel to store
public works materials and does not currently have a long-term need for the site.
Because the adjacent parcel is privately owned, the City is not making representations related
to that parcel. Interested buyers should contact Leuqar BB, LLC at YaleWong@yahoo.com for
information and negotiations related to that parcel.
One key reason the City desires to sell its parcel at this time is that Leuqar has indicated that it
has received strong interest from potential buyers and would like to sell its parcel. Given the
configuration, location, and shared easements of the two parcels, the City believes it is in the
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City's interest for both parcels to be developed together. Leuqar has expressed strong interest
in coordinating the sale of their property with the City's property.
Site Context
The site is located in the City's Southcenter District (District) which is a major regional
commercial hub that attracts millions of people every year for work or to enjoy shopping, dining,
and entertainment. The District is also one of the region's designated urban centers which are
areas intended for a concentration of jobs and housing. The District is seeing its first urban style
growth with the recent opening of the nineteen story Hotel Interurban/Airmark Apartments
building, which is now the tallest building between Seattle and Tacoma.
Amenities: The District is anchored by Westfield Southcenter, which is the largest mall in the
Pacific Northwest and houses hundreds of retailers including Nordstrom, Apple, and Uniglo and
dozens of restaurants, including Din Tai Fung, Joey's, and Moctezuma's. Near the mall are
many other restaurants and retailers including Odin Brewing, Arashi Ramen, and Miyabi Sushi.
The area has many unique entertainment venues such as ACME Bowl, Family Fun Center,
Flying Circus, Foster Golf Links, I -Fly Indoor Skydiving, the Museum of Flight, Round One,
Starfire (the region's largest soccer complex and home to the Seattle Seawolves major league
rugby), and Virtual Sports. The District is served LA Fitness and by the Green River and
Interurban trails which offer miles of walk and cycling.
Freeway Access: The District is located at the intersection of 1-5 and 1-405 which is the busiest
interchange in Washington State. The site is adjacent to 1-405 with excellent vehicle access.
Airport Access: The District is located two miles from SeaTac International Airport and King
County International Airport (Boeing Field). The site is readily accessible to SeaTac Airport via
transit.
Transit Access: The site has excellent transit access. It is across the street from the Tukwila
Sounder station, which is served by 13 Sounder commuter trains between Seattle and
Tacoma/Lakewood each way every weekday and offer a 20-minute ride to and from downtown
Seattle. It is also served by Amtrak Cascades with service between Seattle and Portland and
Amtrak Coast Starlight with service to California and Vancouver, BC. The Sounder station is
also served by King County's Rapid Ride F Line providing frequent service between Burien and
Renton with stops in between, including at the Tukwila light rail station. The site is a 10-minute
walk to King County Metro bus route #150 with frequent service to downtown Kent and
downtown Seattle. It is also the location for a stop on the future bus rapid transit that will be built
along 1-405.
Zoning: The site is currently zoned Tukwila Urban Center — Transit Oriented Development
(TUC-TOD). The TUC-TOD district is intended to provide a more compact and vibrant mix of
housing, office, lodging, and supportive retail and service uses. Examples of permitted uses
are: office, multi -family and mixed -use residential, townhouses, lodging, commercial indoor
recreation, general retail, personal services, athletic/health clubs, restaurants, daycare centers,
commercial parking (day use only), vehicle rental and sales, educational/instructional facilities,
and convention/exhibition facilities. See TMC Chapter 18.28 for detailed zoning regulations and
a complete list of permitted uses. Maximum building height without incentives is 45 feet.
Heights can be increased to 70 feet when the developer provides frontage improvements.
Heights can be increased to 115 feet when developer provides frontage improvements in
combination with either multi -family housing, LEED certification, or affordable housing. See
TMC 18.28.070 for additional information on the requirements for the height incentives.
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Because this site is adjacent to the commuter train station, this is a special opportunity area that
could develop at even greater intensities with a wider variety of uses, such as regional serving
entertainment and retail, especially those uses encouraging transit ridership.
City Vision: The City will consider selling for any use permitted by current zoning. It believes
this site would be especially appropriate for developments that would leverage the excellent
transit access such as office or multi -family residential. Given the site's visibility to 1-405 and
proximity to the Southcenter District's shopping, dining and entertainment cluster, this site would
be good for retail or a regional entertainment venue or a development that includes a mixture of
uses. Because the site is located between two railroad tracks, the City is interested in
developments that are able to take into account the noise and vibration in a way that ensures a
high -quality development and experience for people working, living, or visiting the site.
State Environmental Policy Act (SEPA): In 2014 the City adopted the Southcenter Subarea Plan
and updated the development regulations for the TUC Zone. As part of that work, the City
completed an area wide environmental review. This means that development proposed in the
TUC will not be subject to environmental review and project specific SEPA-based administrative
or judicial appeals as long as certain criteria are met. The criteria ensure the proposed
development is consistent with the Southcenter Subarea Plan and that the impacts were already
considered in the Plan Update. The complete description of the criteria and a consistency
checklist is available in Tukwila Municipal Code (TMC) section 21.04.165 which is available on
the City's website.
Parking Easement: The City's parcel has an access easement over the Leuqar parcel. Both
parcels share a parking easement on a separate, privately owned parcel nearby. The City will
provide copies of the easements upon request.
Environmental: The City is not aware of any environmental contamination issues that would
affect the development of the site. The City will provide copies of existing environmental
documentation upon request. These will be available by mid -September.
Flood Zone: As significant portion of this site is shown in Zone AH in a Special Flood Hazard
Area according to the Federal Emergency Management Agency's (FEMA) Flood Insurance Rate
Map (FIRM) dated May 16, 1995. Due to this listing, new development on the site must receive
a Flood Control Zone Permit issued by the City of Tukwila. Permit requirements can be found at
TMC Chapter16.52. FEMA is revising the flood maps and it is possible the designation will
change once the new maps are adopted. Contact FEMA for more information on the map
revisions.
Appraisal: The City will conduct an appraisal of the property and will provide a copy upon
request. The appraisal is scheduled to be completed by mid -October.
Evaluation Process
The Tukwila City Council will select a purchaser of the City's parcel based on the criteria
identified in City Resolution #1927 and pursuant to Chapter 2.64 of the Tukwila Municipal Code.
The City will consider the following criteria:
(1) Price. This is the primary criteria. The City will not consider offers below the appraised
value as determined by an appraisal conducted by the City.
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(2) The buyer's ability to purchase the adjacent parcel (APN 242304-9137) and coordinate a
simultaneous closing on a timely and predictable schedule.
(3) How well the buyer's intended use of the site fits the City's vision for the Southcenter
District.
(4) The buyer's intended use of the site and its ability to generate additional tax revenue for
the City relative to the City's cost of providing services.
Please note the following conditions/anticipated terms:
• Closing on the City's parcel will be contingent on the buyer providing proof of committed
financing and release of all contingencies for the purchase of the adjacent parcel.
• If the buyer's intended use includes multi -family residential development, the City will
require at least 50% of the units be sold or rented at market value.
• The City may require an option to repurchase the parcel if the buyer does not meet
certain development milestones. This provision will depend on the extent to which the
City has selected the buyer based on the buyer's intended use of the site.
• The City is storing equipment on the parcel and may require a lease to continue storing
the equipment for up to one year.
• The City is interested in selling its parcel "as is" and will not consider proposals that
would require the City to invest in the property.
• The City is not being represented by a real estate broker and will not pay a commission
or fee to the buyer's broker representative.
Final selection of a buyer/developer is subject to City Council approval. The City reserves the
right to reject all proposals, modify or supplement the proposal requirements, or waive any
irregularities in the content or timing of any proposals.
Anticipated Schedule
September 4, 2018
October 31, 2018
November 2, 2018
November 13, 2018
November 16, 2018
November 26, 2018
December 3, 2018
Request for Proposals (RFP) is available to the public
Deadline to submit proposals
City Administration preliminary selection of buyer
Signed letter of intent with Leuqar BB LLC
Staff report and recommendation available for public review
City Council discussion
City Council decision
The City is interested in executing a purchase and sale agreement and closing escrow as soon
as possible after the City Council has made its decision.
Note: This schedule and process is subject to change.
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Submittal
Interested parties must submit proposals using the attached application form. If you would like
an editable version of the form in Microsoft Word, please email Derek Speck at
Derek.Speck@TukwilaWA.gov.
Proposals must be mailed or hand delivered to:
City of Tukwila Mayor's Office
6200 Southcenter Boulevard
Tukwila, Washington 98188
Please include 5 sets of copies, including attachments. Incomplete proposals may be
disqualified. All documents must be on standard 8.5" by 11" letter size paper. Stapled, color
and double -sided pages are acceptable.
Do NOT include visual depictions of your concept for the site. Any visual depictions for your
concept (e.g. artistic renderings, conceptual drawings, schematic drawings, site plans, etc.) will
not be included in the evaluation process.
Please note that proposals will become public records and may be included in their entirety in
the Council agenda packets. Please do not include confidential information.
The City will not compensate applicants for submitting a proposal.
Due Date:
Proposals, whether mailed or hand delivered, must arrive no later than 5:00 p.m. on October
31, 2018, PST. The City will not be liable for delays in delivery of responses due to handling by
the US Postal Service or any other type of delivery service. Faxed or emailed proposals will not
be considered.
Updates and City Contact Information
If you plan to submit a proposal and have questions or would like to be notified about updates,
revisions, and clarifications in the selection process, please register with Derek Speck at
Derek.Speck@TukwilaWA.gov.
Thank you for your interest in the City of Tukwila!
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PROPOSAL APPLICATION FORM
Applicant Organization
Name:
Address:
Website:
Please describe the legal structure of the applicant organization (e.g. sole proprietor, general
partnership, LLC, corporation, 501(c)3, etc.):
Please list the principals of the organization with name and title.
Please describe the size and staffing of the organization.
Applicant's Primary Contact Person
Name and Title:
Phone:
Email:
Criteria #1: Price:
1) What is your offer price and key terms? Note: the minimum offer the City will accept is
the fair market value as established by the City's appraisal.
Criteria #2: Intended Use and Vision
1) Describe your intended use for the site.
2) Does your intended use include a residential component? If so, please describe it and
any anticipated restrictions on age, income or rent.
3) Describe how your intended use for the site fits the City's vision for the Southcenter
District (TUC-TOD zone)? Note: You may wish to refer to the Tukwila Urban Center —
Transit Oriented Development chapter in the City's Comprehensive Plan, the City's
zoning, and other related documents.
4) Do you anticipate requesting any changes in zoning?
Criteria #3: Adjacent Development
1) Would you develop the parcel in conjunction with the adjacent parcel (APN 242304-
9137)?
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2) If so, please describe your relationship or agreements with Leuqar BB, LLC to enable
that collaboration. Please note that before the City selects a buyer for its parcel, it will
want a letter of intent signed with Leuqar.
Criteria #4: Tax Revenue/Cost of City Services
1) Please estimate the tax revenue your development would generate for the City.
2) Would your development receive any property tax abatements?
3) Do you anticipate requesting any changes in public infrastructure or services?
Criteria #4: Buyer/Developer Experience, Financing Capability, Closing
1) Describe your prior development experience. Preferably, use examples of past projects
and describe each project, its location, your organization's role in the development, other
significant partner organizations, your organization's financial contribution to the project,
financial partners (investors, lenders and other), and timeline. If your organization has
not completed any development projects, you may describe projects that your individual
team members have completed.
2) Describe your anticipated project timeline including due diligence, feasibility analysis,
negotiations, design, construction, and sales/lease-up. When would you expect to close
escrow on the purchase of the land?
3) Describe the financing structure you anticipate for the property purchase and for
completing the entire development.
4) Describe the equity, or other funding, your organization has available, or intends to make
available, for the development.
5) Describe your experience operating a development like the one you are proposing.
Additional Information
Please provide any additional information you feel would be helpful in the City's evaluation of
your proposal. Feel free to attach information about your organization but please ensure any
additional information or attachments meets the requirements expressed in the RFP.
I certify that I have read the Request for Proposals and supplied true and accurate information
in this application.
Signature Date
Printed Name Title
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