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Home My WebLink AboutCOW 2021-12-13 Item 4I - Agreement - George Long Shops Purchase and Sale Agreement with King County for Habitat and Shoreline Restoration and Flood ControlCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 12/13/21 DCS ITEM INFORMATION ITEM No. 4.1. & Spec 3 199 STAFF SPONSOR: DEREK SPECK ORIGINAL AGENDA DATE: 12/13/21 AGENDA ITEM TITLE Sale of George Long Shops Property, 14000 Interurban Avenue South CATEGORY 11 Discussion 12/13/21 11 Motion D3/ate21 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg Date Mtg12/1 SPONSOR ❑ Council ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PW 11 Mayor SPONSOR'S The Council is being asked to authorize the Mayor to enter into a purchase and sale SUMMARY agreement to sell the George Long shops facility to King County. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Mayor's Office/Economic Development COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: This item would generate approximately $4,45 million in revenue for the City, MTG. DATE RECORD OF COUNCIL ACTION 12/13/21 MTG. DATE ATTACHMENTS 12/13/21 Informational Memorandum dated 12/7/21 Map of property 199 200 TO: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM City Council FROM: Derek Speck, Economic Development Administrator Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: December 7, 2021 SUBJECT: Sale of George Long Shops Property ISSUE Staff requests Council authorization to sell the City's George Long maintenance shops. BACKGROUND The City's George Long fleet maintenance shops facility is located at 14000 Interurban Avenue South (assessor parcel numbers 3365900925, 3365901015, 3365901016, and 3365900975). The fleet maintenance operations will move into the Heiser property as soon as those improvements are complete. Public Works estimates the move will be complete in fall 2022. Revenue from the sale of the George Long shops has been included in the Public Safety Financing Plan D-20 model which was adopted by the Council in 2018 and in the adopted budgets since then. Given the property's location along the Duwamish River, the City has been in discussions with King County Flood District who has expressed interest in purchasing the property for habitat and shoreline restoration and flood control. The County conducted an appraisal in 2020 which estimated the value of the property at $4.45 million. Two of the parcels are separated from the other parcels by unimproved City right-of-way. A portion of the property is encroached by parking for an adjacent business. DISCUSSION Staff has negotiated with King County and believes the County would agree to purchase the property based on the appraised value and would agree to a deed restriction ensuring the long- term use of the property would be for environmental habitat, shoreline restoration, and flood control. The County has expressed a goal of completing the habitat restoration within the next twelve years since they may use the habitat as part of mitigation on other projects in Tukwila. Staff would need to negotiate additional details with the County to ensure any interim uses would be acceptable to the City. Staff believes the appraisal was properly done and valid. Currently the market demand for industrial properties is high and so staff believes the price on the open market would be higher than the appraised value. However, it is rare that properties along the river in Tukwila become available for sale and it is challenging for the County to find properties to acquire for habitat, 201 INFORMATIONAL MEMO Page 2 shoreline, and flood control. This is especially important as the County conducts millions of dollars in improvements to Tukwila's levee along the Green River south of 1-405. As the County makes those improvements it may need to complete habitat mitigation work and the George Long site would be a good opportunity for that. The City still needs to complete an updated survey and complete negotiations with the adjacent property owner regarding the parking encroachment. After that, the City will know exactly the size of the property to be sold to the County. Therefore, staff recommends the City sell the property to the County at a minimum of $26.73 per square foot based on the actual square feet to be transferred. The price per square foot is based on the market value per square foot from the appraisal. It would be normal for a purchaser of property to conduct studies to assess any environmental contamination on a property after entering into a purchase and sale agreement. Depending on the results of those studies, a purchaser may request a reduction in price or terminate the purchase agreement. If the County requests a lower price, staff will return to Council for approval. FINANCIAL IMPACT If the sale is completed, the City would receive revenue of approximately $4.45 million. RECOMMENDATION Authorize the Mayor to enter into a purchase and sale agreement to sell the George Long shops property generally located at 14000 Interurban Avenue South to King County for habitat and shoreline restoration and flood control for a minimum price of $26.73 per square foot of land and upon terms reasonable to the Mayor and City Attorney. ATTACHMENTS Map of the property 202 George Long Shops 0 Apr, 9/22/2020, 9:06:03 AM 0 City Limits • Addresses (Tukwila) Parcels 1:2,257 0 0.01 0.03 0.05 mi 0 0.02 0.04 0.08 km Pictometry International Corp., Tukwila Technology Services, King County City of Tu%P 3