Req.#13597
6 7 1 8
RESOLUTION NO.
1 A RESOLUTION relating to surplus property; declaring certain real property
2 owned by the City, located at 1 1 10, 1 1 14, 1120, and 1 1 24 Martin Luther
King Jr. Way, to be surplus; authorizing approval of Purchase and Sale
3 Agreements with Kellogg Sicker Pochert LLC, for property located at
1 1 1 0 and 1 1 14 Martin Luther King Jr. Way; and with the Tacoma Housing
4 Authority, for property located at 1 1 20 and 1 1 24 Martin Luther King Jr.
5 Way, for the purpose of constructing apartments, ground floor office/retail
and parking.
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WHEREAS that certain real property located at 1 1 10, 1 1 14, 1120, and 1 1 24
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8 Martin Luther King Jr. Way ("Property"), acquired by the City in 2005 after a history
9 of nuisance and code violations, is surplus to the City's needs, and
10 WHEREAS the Property site, located on a key block in the core of the Hilltop
1 1 business district, consists of four parcels, three with existing buildings and one used
12
for surface parking, and is approximately one-half acre in size, and
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14 WHEREAS two of the three existing buildings were recently approved for
15 inclusion into the Tacoma Register of Historic Places, and
16 WHEREAS the City intends to sell said Property, identified as Tier 1 property
17 pursuant to the City's Policy for the SalelDisposition of City-owned General
1 8
Government Real Property, for the purpose of constructing apartments, ground
1 9
20 floor off ice/retail, and parking, and
21 WHEREAS the City received a joint proposal from the Tacoma Housing
22 Authority and Kellogg Sicker Pochert LLC, represented by Kevin Grossman (the
23 "Parties"), to provide for high-quality market rate and subsidized housing with
24
commercial/retail uses on the ground floor, and
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Res13597.doc-JHC/bn
WHEREAS the project will preserve two historic buildings and redevelop the
remaining two parcels as new construction in a manner that benefits the community
2
by providing 40-50 units of mixed-income, affordable housing, targeting households
3
4 earning 30-80 percent of area median income, developed in a way that will be
5 aesthetically consistent with neighboring development, and
6 WHEREAS the Parties will coordinate on project design compatibility,
7 parking solutions, and occupancy/use, and have conducted significant public
8
outreach to key stakeholder groups in the neighborhood, with letters of support
9
10 received from all groups, and
1 1 WHEREAS, there being no foreseeable need for continued City ownership of
1 2 the Property, a declaration of surplus and negotiated disposition now appear to be
1 3 in the best interests of the City, pending final approval from the City Council; Now,
1 4
Therefore,
1 5
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TACOMA:
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1 7 Section 1. That the City-owned property located at 11 10, 11 14, 1120, and
18 1 1 24 Martin Luther King Jr. Way is not essential to the needs of the City and is
19 hereby declared surplus property pursuant to RCW 35.22.020 and Article 1,
20
Section 1.2, and Article IX of the Tacoma City Charter.
21
22 Section 2. That the proper officers of the City are hereby authorized to enter
23 into a Purchase and Sale Agreement and accompanying Declaration of Covenants
24 and Conditions with Kellogg Sicker Pochert LLC, in the amount of $1 00,000, in
25 accordance with the appraisal dated May 23, 2013, for the real property located at
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i 5 4 1 1 1 0 and 1 1 14 Martin Luther King Jr. Way, for the purpose of constructing
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Res13597.doc-JHC/bn
1 apartments, ground floor office/retail, and parking, said document to be
2 substantially in the form of the agreement on file in the office of the City Clerk.
3
Section 3. That the proper officers of the City are hereby authorized to enter
4
5 into a Purchase and Sale Agreement and accompanying Declaration of Covenants
6 and Conditions with Tacoma Housing Authority for conveyance of the real property
7 located at 1 1 20 and 1 124 Martin Luther King Jr. Way, for the purpose of
8 constructing apartments, ground floor off ice/retail and parking, said document to be
9
substantially in the form of the agreement on file in the office of the City Clerk.
10
1 1 Adopted AUG 1 3 2013
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1 3 Mayor@
Attest:
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1 5
16 City Clerk
17 Approved as to form:
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19 99A,@@
20 Deputy Cit)VAttorney
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Res13597.doc-JHC/bn
CITY CLERK USE ONLY
Request 13SO -7
REQUEST FORRE VEDO'
Tacom 8 7 1 8
[:1 ORDINANCE Z RESOLU)r*& rd./Res.
AUG 0 5 2013
1. DATE: JULY 22, 2013 C111 C, ERK's agglial.
2. SPONSORED BY: COUNCIL MEMBER(s) N/A - - - W %F# I ROL;
3a. REQUESTING 4a. CONTACT (for questions): PHONE:
DEPARTmENT/DpasioN/PRoGRAm Martha Anderson (253) 591-5207
Community & Economic
Development Department 4b. Person Presenting: PHONE:
3b. "Do PASS- FROm Economic Martha Anderson (253) 591-5207
Development Committee, July 30,
2013. 4c. ATTORNEY: PHONE:
Z Yes
F-1 No JeffCapell 591-5638
El To Committee as information only
n Did not go before a Committee
3c. DID THIS rrEM GO BEFORE THE
PUBLIC UTILITY BOARD?
Yes, on
AZ@
Direct!rZyy Zivision tor
5. REQUESTED COUNCIL DATE al
August 13, 2013
6. SUMMARY AGENDA TITLE: (A concise sentence, as it will appear on the Council agenda.)
Authorizing approval of a Purchase and Sale Agreement with Kelly Sicker Porchert, LLC for property
located at 1 1 1 0 and 1 1 14 Martin Luther King Jr. Way and a Purchase and Sale Agreement with the
Tacoma Housing Authority for property located at 1 1 20 and 1 1 24 Martin Luther King Jr. Way.
7. BACKGROUND INFORMATION/GENERAL DISCUSSION: (Why is this request necessary? Are there legal
requirements? What are the viable alternatives? Who has been involved in the process?)
The City intends to sell four parcels of City-owned property at 1 1 10, 1 1 14, 1120 and 1 1 24 Martin
Luther King (MLK) Jr. Way for the purpose of construction of apartments, ground floor office/retail and
parking. These properties are identified as Tier I properties according to the City's Policy for the
SalelDisposition of City-owned General Government Real Property.
The MLK properties were acquired by the City in 2005 after a history of nuisance and code violations.
The property is located on a key block in the core of the Hilltop business district. The site is
approximately .5 acre and consists of four parcels, three with buildings and one used for surface
parking. Two of the buildings were recently approved for inclusion in the Tacoma Register of Historic
Places.
The City has received a joint proposal from Tacoma Housing Authority and Kellogg Sicker Porchert,
LLC, represented by Kevin Grossman. Their proposal is to provide a high quality market rate and
subsidized housing, with commercial/retail uses on the ground floor. The MLK Rehab project will
preserve the two historic buildings and redevelop the buildings for market rate housing. THA will
develop the remaining two parcels as new construction, three to five floors and about forty to fifty
housing units. THA's target market will be workforce housing, affordable to the employees ajtket@
cotclerk \fonns @ RequestResolution0rdinance.doc Office of the City Clerk (81612013)
CITY CLERK USE ONLY
REQUEST (CONT) Request SC7 -7
@ 718
Ord/Res
lower end of the wage scales of the area's major employers, such as the health care facilities in the
neighborhood. The two organizations will coordinate on design compatibility, parking solutions and
occupancy/use.
The organizations have conducted a significant amount of public outreach to key stakeholder groups
in the neighborhood and have received letters of support from all groups.
8. LIST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE WHERE FILED:
Source Documents/Backup Material Location of Document
Purchase and Sale Agreements City Clerk's Office
City of Tacoma parcel map Community & Economic Development Dept.
9. WHICHOFTHECITY'SSTRATEGicGoALsDOEsTHISITEMSUPPORT?(CHECKTI]EGOALTHATBESTAPPLIES)
A. A SAFE, CLEAN AND ATTRACTIVE COMMUNITY
B. A DIVERSE, PRODUCTIVE AND SUSTAINABLE ECONOMY
C. A HIGH-PERFORMING, OPEN AND ENGAGED GOVERNMENT
10. SUSTAINABILITY: IN WHAT WAYS HAVE YOU CONSIDERED THE CITY'S SUSTAINABILITY PRIORITIES?
Environment: How does this decision impact regional and local ecological well-being?
Project will return a former blighted, unsafe site to productive use.
Equity: How does this decision promote meeting basic needs and equitable access to opportunities for all city
residents?
The THA portion of the housing development will be targeted to workforce housing, available to individuals
working at the lower end of the wage scales.
Culture: How does this decision impact cultural (arts, innovation, heritage, and recreation) and quality of life for
all citizens?
Two of the buildings are listed on the Tacoma Register of Historic Places and all design must be approved by the
Landmarks Commission
Economy: How does this decision impact the local economy? What are the significant financial costs/benefits?
Two of the parcels will convert from public ownership to private ownership resulting in new property tax
revenue. Ground floor uses will be retail/commercial/restaurant increasing the tax base through sales tax
revenue
1 5V
cotclerk\forins\ReqiwstResolutionOrdinance.doc Office of the City Clerk (8/6/2013)
CITY CLERK USE ONLY
REQUEST (CONT) Request#: @>Scl --I
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Ord/Res #: C)
11. IFTHISCONTRACTISFORANAMOUNTOF$200,OOOORLESS,EXPLAINWHYITNEEDSLEGISLATIVEAPPROVAL:
N/A
12. FINANCIAL IMPACT: EXPENDITURE REVENUE
SALES PRICE IS $100,000.
A. No IMPACT (NO FISCAL NOTE)
B.n YES,OVER$100,000,FiscalNoteAttached
C. Z YES, UNDER $1 00,000, (NO FISCAL NOTE)
Provide funding source information below:
FUNDING SOURCE: (Enter amount of funding from each source)
Fund Number & Name: State $ city $ Other $100,000 Total Amount $100,000
1195-UDAG
If an expenditure, is it budgeted? F1 Yes n No Where? Cost Center:
Acct
158
cotclerk \forms \ RequestResolutionOrdinance.doc Office of the City Clerk (81612013)
1110 - 1124
Martin Luther King, Jr. Way Properties
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Resolution No.
Adopted: AIIG 1 3 2013
Maker of Motion: xw\kAr Q LA-A-@N
0
Seconded:
Voice Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Mr. Boe
Mr. Campbell
Mr. Ibsen
Mr. Lonergan
Mr. Mello
Mr. Thom
Ms. Walker
Ms. Woodards
Mayor Strickland v"
Roll Call Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Mr. Boe
Mr. Campbell
Mr. Ibsen
Mr. Lonergan
Mr. Mello
Mr. Thoms
Ms. Walker
Ms. Woodards
Mayor Strickland
hccagenda@agenda procedures and forms\resolutionvotingrecorddoc