HomeMy WebLinkAboutReg 2025-06-16 Item 5A - Resolution - Surplus & Alternative Sale Process of 444 Andover Park E (Former Fire Station #51)COUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
6/9/25
BWM
ITEM INFORMATION
ITEM NO.
5.A.
STAFF SPONSOR: BRANDON MILES
ORIGINAL AGENDA DATE: 6/9/25
AGENDA ITEM TITLE Resolution: Disposition of Fire Station 51 — Declaring surplus, allowing for an
alternative process, and authorize an agreement with a broker.
CATEGORY ® Discussion
Mtn Date 6/9/25
® Motion
Mtg Date 6/16/25
Z Resolution
Mtg Date 6/16/25
❑ Ordinance
Mtg Date
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
AItg Date
SPONSOR ❑ Council ® Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ Ply
SPONSOR'S
SUMMARY
The purpose of this agenda item is to seek Council approval of the process to sell old Fire
Station 51 at 444 Andover Park East. Once the Council approves the process, staff would
solicit proposal and negotiate deals terms. If staff and the buyer(s) agree to deal terms,
staff would then return to the City Council requesting authorization to enter into a
purchase and sale agreement.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev.
❑ LTAC
DATE: N/A
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMITTEE CHAIR: N/A
RECOMMENDATIONS:
SPONSOR/ADMIN. Approve.
COMMITTEE N/A
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
$N/A
AMOUNT BUDGETED
$N/A
APPROPRIATION REQUIRED
$N/A
Fund Source: N/A
Comments: N/A
MTG. DATE
RECORD OF COUNCIL ACTION
6/9/25
MTG. DATE
ATTACHMENTS
6/9/25
Staff Informational Memoradum dated May 13, 2025
Draft Resolution
Powerpoint Presentation
Broker Listing Agreement
6/16/25
Final Resolution
195
City of Tukwila
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, DECLARING THE PROPERTY
LOCATED AT 444 ANDOVER PARK EAST (ASSESSOR
PARCEL NUMBER 022340-0080) TO BE SURPLUS; AND
APPROVING AN ALTERNATIVE SALE PROCESS AS
AUTHORIZED BY TUKWILA MUNICIPAL CODE SECTION
2.64.030(4).
WHEREAS, the City of Tukwila owns certain property located at 444 Andover Park
East also known as assessor parcel number 022340-0080 ("the Property"); and
WHEREAS, the Mayor and the City Council find the Property is surplus and no longer
needed, and that the sale of the Property is in the best interests of the City and the people
thereof; and
WHEREAS, Tukwila Municipal Code Chapter 2.64 provides for disposition of surplus
property;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Declaration of Surplus. The property, both real and personal, located
at 444 Andover Park East and also known as assessor parcel number 022340-0080 ("the
Property"), belonging to the City of Tukwila, is hereby declared to be surplus.
Section 2. Sale of Surplus Property Authorized. Pursuant to Tukwila Municipal
Code (TMC) Section 2.64.030(4), the City Council hereby authorizes the Mayor and/or
his designee to engage in the alternative process for receiving offers, negotiating the price
of the Property, and negotiating additional deal terms as set forth in the Informational
Memorandum attached hereto as Exhibit A.
Section 3. Council to Review Purchase and Sale Agreement Terms. Prior to
execution of a purchase and sale agreement, the mayor and/or his designee shall report
to the City Council a recommended purchaser for the property and negotiated terms.
2025 Legislation: Declaring Property Surplus
Version: 06/02/2025
Staff: B. Miles
Page 1 of 2
196
Section 4. Broker. The Mayor and/or designee is authorized to hire a broker to list,
market, and conduct other commercial real estate brokerage activities for the City of
Tukwila.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, at a Regular Meeting thereof this day of
2025.
ATTEST/AUTHENTICATED:
Andy Youn-Barnett, CMC, City Clerk Tosh Sharp, Council President
APPROVED AS TO FORM BY:
Office of the City Attorney
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Attachment: Exhibit A, Informational Memorandum dated May 13, 2025
2025 Legislation: Declaring Property Surplus
Version: 06/02/2025
Staff: B. Miles
Page 2 of 2
197
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Tukwila City Council
FROM: Brandon Miles, Mayor's Office
CC: Thomas McLeod
DATE: May 13, 2025
SUBJECT: Disposition of Old Fire Station 51
ISSUE
The purpose of this agenda item is to seek Council approval of the process to sell old Fire
Station 51 at 444 Andover Park East. Once the Council approves the process, staff will solicit
proposasl and negotiate deals terms. If staff and the buyer(s) agree to deal terms, staff would
then return to the City Council requesting authorization to enter into a purchase and sale
agreement.
BACKGROUND
The City owns an 81,000 square foot lot in the Southcenter District of the City that currently has
a largely vacant 15,519 square foot building on it. The property was the former home of Fire
Station 51 and also served as the headquarters for the City's fire department. As part of the
City's Public Safety Plan, the city relocated and constructed a new Fire Station 51 at the corner
of Southcenter Parkway and 5.180'h Street. It has been the city's intention to sell old Fire
Station 51 since the City has no short term or long-term needs for the property.
After the fire department moved off the site, the city temporarily relocated police evidence
vehicle storage into some of the bays at old Fire Station 51. The city is currently working on a
final, permanent relocation of the police evidence vehicle storage to a portion of the hanger at
the Fleet and Facilities Building.
The old Fire Station 51 building has significant issues, including a partial collapse of the roof,
stolen HVAC units, and other issues. The building creates financial liability for the City to both
maintain and in diverting facilities staff away from other facilities that need attention.
As part of the adopted two-year budget, the city included $5 million in proceeds from the sale of
the old fire station in 2026 as revenue to balance the city's operating budget. This one-time
revenue was intended to serve as a stop gap measure while the city examined fiscal
sustainability issues city wide.
DISCUSSION
The method for selling city owned property is outlined in Tukwila Municipal Code (TMC) 2.64.
While the City could call for bids, staff proposes that a more competitive process be used and
that City Council authorize, "...an alternative process for receiving offers, selecting a buyer, and
negotiating the price..." pursuant to TMC 2.64.030 (4).
Staff suggests that a broker be hired to market and represent the city on a potential disposition
of the property, like it was any commercial property listed for sale or lease. Formally listing the
property for sale and marketing it will likely result in the highest return to the City and make the
property disposition known to a wider audience. The site is zoned for light industrial and the
industrial market in the area is still extremely hot. The City has received two broker's estimates
198
INFORMATIONAL MEMO
Page 2
for the property and would list the property for sale for around $4.2 million'. The City will also
consider an entity that is interested in entering into a long-term ground lease of the property (30-
50 years).
Staff propose the following general terms for any deal:
1. Highest financial value to the City. The City would consider the total financial value of
the property, including the intended user, and what tax revenue the City would receive
from the property over a specific period. The timing of receiving funds would be
considered as part of the total financial value. While the City would prefer to receive the
bulk of funds for the property in the near term, if the city received more funds by delaying
closing this would be considered as well.
2. Closing. The City would consider a longer closing period, if it resulted in a better
financial offer (see above). If a longer closing is requested, the city would want non-
refundable deposits made to the city. If the buyer is unable to close, the non-refundable
deposits would go to the city.
3. Past Performance by the Buyer. The buyer would need to have a demonstrated
history of being able to close the deal with the city and meet the agreed closing date.
4. Appraisal. To be conducted by the city after an initial offer is accepted and a signed
purchase and sale agreement is in place.
5. Zoning Standards. The city would consider possible zoning changes, provided those
changes are consistent with the vision of the Workplace District zoning. Any zoning
modifications would require City Council approval. The City would note this in our
marketing materials.
Staff is not requesting to enter into a purchase and sale agreement at this time. Once the city
has received sufficient offers and has worked to validate the offers, the City will come back to
the City Council with an update and a recommendation on a specific buyer. At that time staff will
request to enter into a purchase and sale agreement with the proposed buyer.
The proposed resolution will:
1. Declare the property surplus;
2. Authorize the sale and city to engage in an alternative process;
3. Outlines the City Council will review the purchase and sale terms; and
4. Authorizes the City to hire a broker (draft agreement is attached).
FINANCIAL IMPACT
As part of the 2025/2026 Budget the city assumed $5 million in revenue from the sale of the old
Fire Station 51 to occur in 2026. The suggested list price of $4.2 million is below the forecasted
revenue. However, this is the list price, and the final price could be higher or lower.
RECOMMENDATION
The City Council is being asked to forward the draft resolution to the June 16 regular council
meeting for possible adoption.
1 The property has a total value of just under $4 million. However, the City's
listing price assumes the cost of demolition that the buyer will factor in
when making an offer on the property.
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