TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Kelley Cochran |
425-556-2748 |
DEPARTMENT STAFF:
|
Finance |
David Amble |
Real Property Manager |
TITLE:
title
Approval of Authorization for Acquisition of the Redmond Community Center at Marymoor Village and Adoption of an Ordinance to Recognize the Revenue and Expenditure Transfers Needed to Fund the Acquisition
a. Ordinance No. 3229: An Ordinance of the City Council of the City of Redmond, Washington, Amending Ordinance No. 3196, 3215, & 3224, by Making Adjustments to the City’s 2025-2026 Biennial Budget, In Exhibit 1
OVERVIEW STATEMENT:
recommendation
The City of Redmond currently leases the Redmond Community Center at Marymoor Village from the Lake Washington Institute of Technology (LWIT). The community center is located on King County parcel 122505-9043, which is owned by LWIT and currently available for purchase.
The City’s current lease provides an option of first refusal, giving the City the first rights to purchase the property from LWIT, if offered. LWIT has approached the City, and the City has negotiated a fair market price of $18.5 million, in an “As Is-Where Is” condition. A title report, site appraisals, and condition studies have been completed on the parcel. Prior identified environmental conditions were evaluated and mitigated by LWIT, and the City is desiring to move forward with acquiring the property.
The parcel is located in the south portion of the Marymoor Village neighborhood, just north of Marymoor Park. The parcel is approximately 142,000 square feet (sf) and includes the 100,000 sf community center and 42,000 sf of unimproved area. The City has an easement on the northeast corner of the lot for a lift station on the property. The parcel is zoned Commercial, and the City is interested in removing the risk of the property being acquired and redeveloped. The City would like to maintain a community service and municipal engagement facility in Marymoor Village.
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
Parks, Arts, Recreation, Culture, and Conservation Plan (PARCC) adopted 2022/2023 biennium
• Required:
Council approval is required for adoption of an Ordinance.
• Council Request:
N/A
• Other Key Facts:
The sale of the property is subject to the approval of the State Board of Community and Technical Colleges, in accordance with RCW 28B.50.090(13).
OUTCOMES:
In 2018, widespread community engagement solidified the future plan for community and recreation centers in each urban center throughout Redmond. For the past six years, leasing of this facility has filled this need. The purchase will ensure the long-term community space in Marymoor Village and allows for increased services into the future. The facility is used for summer camps, teen services, enrichment programs, rental space for family and community gatherings, and active recreation.
Approval of this purchase protects City’s current community center operations in the neighborhood. Acquisition also provides additional space for flexible staging and storage of assets while completing the MOC reconstruction project.
Upon purchasing the property, the City’s lease with LWIT will be terminated, reducing planned expenditures of $2.9 million through 2029.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
2019-2022
• Outreach Methods and Results:
Community Stakeholder Team
• Feedback Summary:
Parks, Arts, Recreation, Culture, and Conservation Plan (PARCC) update process
BUDGET IMPACT:
Total Cost:
$18.5 million
Approved in current biennial budget: ☐ Yes ☒ No ☐ N/A
Budget Offer Number:
N/A
Budget Priority:
Healthy and Sustainable
Other budget impacts or additional costs: ☒ Yes ☐ No ☐ N/A
If yes, explain:
The City will need to fund the replacement of the HVAC system, approximately $500,000. Funding will be allocated during the development of the next 6-year CIP.
Funding source(s):
General Fund 5% CIP Transfers $2.0 million
Parks Impact Fees $5.25 million
Miscellaneous (Interest, Fee-in-Lieu, Rebate) $0.964 million
REET $10.286 million
$18.5 million
Budget/Funding Constraints:
A budget adjustment is attached to move available funding sources into the Parks Capital Investment Fund (315).
☒ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
N/A |
N/A |
Proposed Upcoming Contact(s)
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Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
LWIT desires to sell the parcel prior to the end of the calendar year. The projected closing of a sale between LWIT and the City is the end of October.
ANTICIPATED RESULT IF NOT APPROVED:
The property will remain for sale and may be purchased by another party. The City could lose its community center space in the Marymoor Village neighborhood.
ATTACHMENTS:
Attachment A: Rainier Title Map of Parcel 122505-9043
Attachment B: Legal Description of Parcel 122505-9043
Attachment C: Draft LWIT Purchase and Sale Agreement
Attachment D: Ordinance - 2025-2026 Budget Adjustment #3
Exhibit 1: 2025-2026 Budget Adjustment #3