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HomeMy WebLinkAbout2005-08-22 Special MinutesTUKWILA CITY COUNCIL Council Chambers City Hall August 22, 2005 SPECIAL MEETING MINUTES Immediately following a Committee of Whole Meeting CALL TO ORDER: Calling the meeting to order at 8:31 p.m. was Steve Mullet, Mayor. ROLL CALL: Calling the role of Council was Bob Baker, Deputy City Clerk. Present were Council President Pamela Linder; and Councilmembers Joan Hernandez, Pam Carter, Jim Haggerton, Dennis Robertson and David Fenton. HAGGERTON MOVED; CARTER SECONDED; TO EXCUSE THE ABSENCE OF COUNCILMEMBER JOE DUFFIE. The motion carried 6 -0. OFFICIALS: Steve Mullet, Mayor; Rhonda Berry, City Administrator; Shelley Kerslake, City Attorney; Lucy Lauterbach, Council Analyst; Bob Baker, Deputy City Clerk; Steve Lancaster, Community Development Director; Lisa Verner, Consultant, Community Development; and Derek Speck, Economic Development Administrator. CONSENT AGENDA: Approval of vouchers, #317870 318048, in the amount of $965,202.33. HERNANDEZ MOVED; CARTER SECONDED; TO APPROVE THE CONSENT AGENDA AS PRESENTED. The motion carried 6 -0; with Councilmember Duffie being absent. PUBLIC HEARING: Decision on options, including condemnation, for acauisition of property west of Southcenter Parkway. between South 180"' Street and the Southern City limits. (continued from Auaust 15 for additional testimony and deliberation.). 8:32 p.m. Mayor Mullet reconvened the public hearing as continued from August 15, 2005. Lisa Verner. Seaale Properties Proiect Coordinator, noted the issue before the Council is whether or not they should condemn the Shoenbachler property for three different things 1) Southcenter Parkway, 2) South 178 and, 3) storm detention ponds. In connection with this public hearing, four options exist for Council consideration. Option 1 is to not condemn any property; option 2 is to acquire or condemn property for a realigned Southcenter Parkway; option 3 is to condemn property for a realigned Southcenter Parkway and South 178 and, option 4 is to condemn for all three items (realigned Southcenter Parkway, South 178 and the storm detention ponds). Because the City has been contemplating condemnation and federal grant monies are involved, staff has been operating under strict federal guidelines for the right -of -way process. And, after hearing from officials at the Governor's Office, the Attorney General's Office, and the Washington State Department of Transportation, Tukwila City staff has been assured they are following correct procedure. Last week, the Segale's sent correspondence to the Governor's Office and the Attorney General's Office in regards to this matter. Since that correspondence was sent, subsequent discussions occurred between City of Tukwila Page 2 of 7 City Council Special Meeting Minutes August 22, 2005 the parties which produced a variation of Option 2, which is being presented at this meeting as option 5 to acquire or condemn right -of -way in the existing Southcenter Parkway location as opposed to the realigned portion a piece within Tukwila City limits, through Schoenbachler property. Maraarita Prentice. Washington State Senator. 11 District. has been supportive of this project since she first learned of it. Recalling the last session of the Legislature, Ms. Prentice reminded Council that Tukwila would be the hardest hit City and would lose revenues if the Streamlined Sales Tax issue is successful. She would like to see revenues from this type of development replace some of those lost due to the measure. Further, she urged the Council to strongly consider the long -term benefits of this project. Julia Patterson. Councilmember, King County Council, called the transportation project critical to the economic development of South King County and the mobility of its residents. The two -lane, rural road, connecting two major urban centers will not meet future needs of the community if it grows according to vision. Transportation funds to meet increasing needs is scarce, thus, the City is fortunate to have both State and Federal funds in place for this particular project. That positions the City well for the TIB Grant funding to complete the finance plan. It would be a major risk to pass up the TIB funding process to buy time and hope for future funding from another source. She strongly urged the Council to move forward with an application for TIB Funding and to widen Southcenter Parkway. Phil Talmadge, Attorney for La Pianta, LLC, 18080 Southcenter Parkway, noted his clients (Segale /La Pianta, LLC) are indicating "forcefully" that they support the realignment and widening of Southcenter Parkway. They have no interest in "doing 178 or related detention ponds. He spoke in favor of realigning the present Southcenter Parkway and providing for expansion of an inadequate two -lane road" with a capacity of only 4000 vehicle trips per day. When expanded, it will support nearly 30,000 vehicle trips per day. The project will also address safety issues, correct drop -offs and meandering places in the road, and provide a significant opportunity in terms of what may happen in Tukwila South" in future years. Nearly $6 million in State and Federal funding have been committed to the project thus far. Noting time sensitivity of the issue, Mr. Talmadge reported Transportation Improvement Board (TIB) grant funds must be applied for on /by August 31. Mr. Talmadge encouraged the Council to "use the resources" at their disposal in moving forward. He also reminded them of the Segale's positive force in the community over the years with involvement in the business community and providing job resources to community members. The project as proposed by La Pianta, LLC, (widening and realignment of Southcenter Parkway) represents 7,400 linear feet of roadway. Some 5,100 linear feet of highway will be donated to the project from the Segale's. The total area in question for condemnation will be just more than a couple acres, including part of the driving range. He provided two large charts to show the property site and affected areas. He reported the distance affected in terms of the (golf) driving range is 1,500 linear feet; 675 feet of Schoenbachler pasture land property. The total area to be condemned is approximately 2.15 acres of pastureland and 2.86 acres existing within the driving range area. Once realigned and widened, the Schoenbachler's will still retain 11+ acres for the llama farm. He stated Mr. Shoenbachler will not be adversely affected and his home will remain in place "450 feet distant from the roadway that would be present." The currently existing ground lease will "leave him financially secure." Calling it a "historic...significant opportunity...for housing, for recreational places, for businesses, tco good...to pass up," Mr. Talmadge urged the Council to move forward with the project. He spoke in favor of a safe, five -lane road which would handle the capacity it may one day need. Mark Seaale. La Pianta. LLC, reported neither his family nor he intentionally misled Mr. Shoenbachler in their business dealings. He said the Segale's have dealt honestly and in good faith. Further, he noted they took "a formal interest in the Shoenbachler property" in 2000, when the driving range was purchased and the ground lease was taken over. After (20) months of negotiations and considerations, a Purchase and Sale Agreement and Ground Lease Agreement were entered into between the Segale's and Mr. Schoenbachler. City of Tukwila Page 3 of 7 City Council Special Meeting Minutes August 22, 2005 For the benefit of those present, Mr. Segale reviewed the history of business dealings and discussion since the year 2000. The anticipated construction start time of the project has always been March, 2006. Based on a perceived understanding between the parties, the Segale's felt it would be possible to modify the Lease Agreement in time for the proposed construction start date. Based on that belief, the Segale's represented to the City that the property would be provided to us in time for the proposed CIP projects. After that statement (June, 2005), the Segale's came to City staff and the Mayor to explain the situation. Robert Schoenbachler. 18115 Southcenter Parkway. corrected statements made by Mr. Segale and provided his account of the history of business dealings with the Segale's. His mother passed away in October 2004. It was in December, 2004 that the Segale's tried to "coerce" his father into moving into an assisted living facility so they could proceed with the project. Art McKean. Attorney for the Schoenbachler's, stated that although disagreements exist as to who said what to whom, his clients do not object to the City's intent to widen the roadway as it is mentioned in the agreements signed by both parties. They are opposed, however, to realignment and noted that word "realignment does not appear in documents presented to the Shoenbachler's. Mr. Segale made an agreement with Mr. Schoenbachler that he could live on the property for the rest of his life and could maintain the pasture license until 2010. His clients would like to abide by that agreement. There have been no modifications to any agreements and Mr. McKean is unaware of any request for modifications. He is unsure if the newly proposed option (from La Pianta, LLC) includes a "haul out road." The 85 -feet referred to runs along the east side of the property (what is now Southcenter Parkway). It does not refer to any newly modified version which would move /relocate the parkway into the llama's area. Ron and Jill Phelps. 16016 48t" Avenue South, spoke in opposition to "any condemnation not within the context" of the original agreements between the Segale's and Mr. Schoenbachler, Sr. They spoke in favor of allowing Mr. Schoenbachler being able to remain in his home for the remainder of his life. Robert Kathy Worden. 16021 48 Avenue South. are against any action (at this meeting) as the business dealings "between two private parties" are in question. Mr. Worden spoke against any "piece- meal" situations and putting the proverbial cart before the horse. Ms. Worden asked if "more land" would be needed later for proposed retention /detention ponds. Ramona Randy Grove. 16030 48 Avenue South. urged Council to take no action on the proposed ordinance at this meeting. Both noted all involved parties should honor the signed agreements. In cases where verbal arguments erupt after a contract has been agreed upon and signed, Ms. Grove said "use the written word the contract," to settle disputes. Mr. Grove raised an issue of information that "varies from week to week" by the Segale's and the City. He said "until we get a win -win situation" for all parties, no action should be taken. He spoke in opposition to condemning Mr. Shoenbachler's property and the llama farm property. Rodney McFarland. President. Citizens Alliance of Property Rights, asked about the proposed retention ponds and when they would be created. The Alliance believes "bringing the full force of government down on citizens seems to be all to common," and they are in opposition to condemnation in this case. They see no "clear -cut" public purpose as required by law. Citing Article 1, Section 16, of the United States Articles of Amendment, Mr. McFarland said the work could be done without condemnation. Anna Bernhard. 14241 59 Avenue South, urged the Council to take no action this evening. Noting "too much confusion" exists, she said the parties need to work out the details. Further, she spoke of being sentimental about the llama farm. Phil Talmadge and Mark Segale noted drawings presented during this meeting "do not show storm ponds." They are in favor of creating a "temporary pond" until such time as the property is acquired. Additionally, they noted a "haul road" is not required. Further, the attorney stated his clients will contribute some 5,100 linear feet of the 7,300 linear feet of the Parkway required for the project. His clients deny coercion allegations. In summary, Mr. Talmadge reported his clients "only want to condemn what is necessary to accomplish" the realignment/widening project, and asked the Council to condemn the property. City of Tukwila Page 4 of 7 City Council Special Meeting Minutes August 22, 2005 Mr. Schoenbachler, in response to Council inquiry, reported he and his father are not opposed to the widening of Southcenter Parkway, and stated that fact is included in the Lease Agreement. They've thought that could occur since 1982. Relocation of Southcenter Parkway and condemnation of any property (85 feet in question) were not included in the documents. This is the issue he and his father object to, as it would affect the space available to the llamas which have been on the land since 1970. Ellen Dial. Attorney. Perkins Coie. 1201 Third Avenue. Seattle. drafted the Purchase and Sale Agreement and Ground Lease for the parties. She stated that (within the Lease) there is a right of the Segale's to move the pasture fence an additional 85 feet. That is separate and apart from the provisions within the Lease regarding condemnation. At the time the Lease was negotiated, the parties anticipated widening of Southcenter Parkway, yet there was no way of knowing what the configuration would /could be. A disagreement arises about whether this configuration is widening. If it is, La Pianta has the power of attorney to represent both the owner and itself as they have a 54 -year lease that would have to be condemned in addition to the fee title. If it is not widening, there is a separate provision regarding condemnation and both parties would have the right to participate in the discussions. In response to Council inquiry, Mr. Talmadge referred to the TIB application made by the City of Tukwila in 2004, and recited four safety hazards to the road in its current condition. First, the existing horizontal curves are substandard; second, a portion of the roadway has deep drainage ditches adjacent to the shoulders of the road; third, visibility and site distance are a hazard at the intersection of South 200 and fourth, utility poles and other objects are in the clear zones creating hazards. For these reasons, Mr. Talmadge reported the need for realignment of Southcenter Parkway. Councilmember Robertson asked if the safety issues described apply to the proposed realignment (that would take a portion of the Schoenbachler property), or if the conditions could be improved by widening the road in it current condition. Jim Morrow. Public Works Director. reported that for the most part the safety hazards mentioned are further south in the project. He noted that by the proposed realignment and construction of the new roadway the City will have a much safer environment for the traveling public. Councilmember Robertson asked if the same safety benefits would be derived if the road were widened in its current place /location /right -of -way. Mr. Morrow responded affirmatively. Councilmember Haaaerton asked if the project can be built without realigning Southcenter Parkway through the Schoenbachler property. Mr. Talmadge said it is conceivable, yet in terms of benefits to Tukwila South, the absence of realignment would be negative. Sue Carlsen. Seaale Properties LLC, reported the reason for the proposed realignment is to create larger parcels and the ability to create an office /campus development. Further, it will allow for different development patterns in the valley compared to those which are typical in urban environments. The proposed condemnation will allow enough land for internal circulation without driveways, turns and intersections. In response to Council inquiry, Ms. Carlsen said "a project could go forward. Could this project go forward? I don't know." A total of six alignments were reviewed over a period of four months. Lisa Verner. City Consultant. stated there is a current maximum capacity of 15,000 vehicles per day on Southcenter Parkway, not 4,000 as previously reported. Mr. Morrow noted the total number of vehicles traveling that road (per day right now) is about 4,000. To provide Council with an accurate picture of potential funding gaps, Mr. Morrow reported first on the paper entitled Construction Costs /Sources of Funds for Southcenter Parkway. Grants received to date total $10 million. As it relates to construction costs, the 60% estimate has been updated to include "follow on requests for upgrading the water system and installation of additional intersections." The costs for construction management and the possibility of a contingency fund (per City policy) for Southcenter Parkway and South 178 Street are also included. These items represent a total of $28,011,872.00. When you subtract the updated costs for the South 178 Street project ($4,668,387.00) from the $28,011,872.00 figure, it leaves a cost of $23,343,485.00., just for construction of Southcenter Parkway. City of Tukwila Page 5 of 7 City Council Special Meeting Minutes August 22, 2005 If you subtract the $10 million in grant monies, there is still an unfunded balance of $13,343,485.00. One of the proposals is to proceed (at the end of this month) with a grant application (from the TIB) in the amount of $4 million. Subtracting that $4 million figure from the previously stated unfunded balance of $13,243.485.00, leaves a $9,343,485.00 funding gap /deficit. Mr. Morrow noted the numbers given are for construction costs only and do not represent any right -of- way or design costs. He also reported several things must still be determined which could result in potential increases to construction costs. The first is anticipated undergrounding and locating a substation by Puget Sound Energy. Additionally, a new entrance would be required for Mitchell Moving and Storage and GACO Western if the City proceeds with the proposed realignment of Southcenter Parkway. Cost considerations also include siting of water, sewer, and surface water line connections for future development as requested by La Pianta, LLC. The $9.3 million potential funding gap is a best estimate to date. 9:52 p.m. With no other testimony, Mayor Mullet closed the public hearing. Council Deliberations: Ms. Verner was asked to review options 1, 2 and 5. Option 1 is to not condemn anything and wait for Segale to bring right -of -way to the City; and Options 2 and 5 are variations on the same thing to acquire or condemn for Southcenter Parkway only and to do that only after a development agreement has been reached and annexation has occurred. Option 2 suggests a realigned Southcenter Parkway (widening and moving) and Option 5 is to acquire or condemn additional right -of -way for the existing Southcenter Parkway in its current location (widening only). ROBERTSON MOVED; CARTER SECONDED; THAT STAFF BE DIRECTED TO PREPARE A RESOLUTION THAT INDICATES THE CITY'S AGREEMENT TO BEGIN THE ACQUISITION PROCESS FOR PROPERTY NECESSARY FOR THE SOUTHCENTER PARKWAY ROAD IMPROVEMENT PROJECT IN THE EXISTING ALIGNMENT WITH THE CITY LIMITS AT THE APPROPRIATE TIME* Two notes for the record in coniunction with the motion: 1. Acquisition will not begin until annexation of the Tukwila South area is complete and a development agreement regarding project financing and cost sharing to mitigate the finance risks to the city is signed by both parties. 2. The South 178 Street realignment and storm water detention pond projects are private development responsibilities and not included in this friendly condemnation action." Speaking to his motion, Councilmember Robertson noted that members of the Council, City staff and City Administration (as well as himself) would like to move forward with the project. The City has committed to it and has already spent approximately $1 million. He stated that "when you get down to all the testimony," and all the things he's heard during the course of the public hearing, the issued is summed up in one way the written agreements between the Segale's and Schoenbachler's. Eliminating he -said, she -said statements, the only thing for sure" is the agreement. From that agreement and testimony offered, he realizes both Schoenbachler's are amenable to widening the street in its present alignment. The agreement also says Mr. Schoenbachler may remain in his residence throughout the duration of his life and he may keep the llamas in their pasture until 2010. The proposal allows the project to move forward, doesn't hurt the Schoenbachler's, doesn't put the City in the unenviable position of condemning a man's property (residence and llama farm). As it relates to a signed developers agreement and annexation in hand before proceeding, it is important and the City has expended funds. He spoke of moving forward with certainty before spending any more money. Councilmember Linder spoke in favor of Mr. Robertson's motion and against condemning Mr. Schoenbachler's property. City of Tukwila Page 6 of 7 City Council Special Meeting Minutes August 22, 2005 Councilmember Hernandez spoke in favor of Mr. Robertson's motion and against condemning Mr. Schoenbachler's property. She also spoke in opposition to losing funding for the project. She said this compromise may be the best available option. She wants the project to continue. Councilmember Fenton spoke of the vision of the project and does not want us to lose sight of it. Tukwila Valley South can and will be great one day. As mentioned by Councilmember Hernandez, Mr. Fenton is sad that the two parties cannot speak to one another on this issue. He is in favor of widening Southcenter Parkway in its current location and opposed to condemnation. Councilmember Carter said the Council has been enthusiastic about the project, have supported it, and will be proud when the long journey to build out begins. The Council took a leap of faith in funding the design for the roadway. At the time Council agreed to move the road, Council believed La Pianta, LLC had the property. As it turns out, someone else owns part of the property needed for the realignment. She spoke in favor of realigning the southern part to provide larger parcels and allows for other things to happen along the river. By widening the road through the northern portion, it would make sense to widen in one part and realigning in another to avoid condemnation. She supports Option 5. Councilmember Haggerton expressed comments made to him by Councilmember Joe Duffie, who is unable to be present. It is Mr. Duffie's desire to move forward with the project as long as South 178 Street is stricken from it. As to his own opinion, Mr. Haggerton said much design work and City money has already gone into the project. Funds are available to the City, and he'd like to apply for the TIB grant. He, too, is opposed to condemnation and in favor of the project moving forward. He, too, spoke in favor of Option 5 as stated in Councilmember Robertson's motion. For the record, Ms. Verner confirmed Council is in favor of condemnation of the existing right -of -way within the City limits and the realignment of the part in King County is o.k. Mr. Robertson was called upon to restate his motion. It was read as written and previously recorded herein. *The motion carried 6 -0; with Councilmember Duffie being absent. UNFINISHED BUSINESS: Proposed ordinance granting a non exclusive franchise to Clearwire Communications CARTER MOVED; FENTON SECONDED; TO STIKE THE PROPOSED ORDINANCE FROM THE AGENDA AS ADDITIONAL WORK MUST BE DONE BY CITY STAFF. The motion carried 6 0; with Councilmember Duffie being absent. REPORTS: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, GRANTING A NON EXCLUSIVE FRANCHISE TO CLEARWIRE CORPORATION, LEGALLY AUTHORIZED TO CONDUCT BUSINESS IN THE STATE OF WASHINGTON, FOR THE PURPOSE OF INSTALLING, OPERATING, AND MAINTAINING A WIRELESS TELECOMMUNICATIONS SYSTEM IN CERTAIN PUBLIC RIGHTS -OF -WAY IN THE CITY; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. LINDER MOVED; HERNANDEZ SECONDED; TO STRIKE REPORTS FROM THE AGENDA. The motion carried 6 -0. City of Tukwila Page 7 of 7 City Council Special Meeting Minutes August 22, 2005 ADJOURNMENT: 10:12 p.m. FENTON MOVED; HAGGERTON SECONDED; TO ADJOURN THE CITY COUNCIL SPECIAL MEETING. The motion carried 6 -0. A Steven M. Mullet, Mayor Robert H. Baker, CMC, Deputy City Clerk Date minutes approved: November 21. 2005 Rabvd, 51/1.6A