Friday, August 26, 2011

Seattle Times: Parking spat may stall project at CenturyLink Field

The story about the parking lot north of Seahawks stadium that is slowly being sold by King County to a condo/apartment developer has reached the Seattle Times.

The problem: Developer Daniels Real Estate and the owner of the stadium, known until recently as Qwest Field, haven't reached agreement on replacing 491 premium parking stalls the development would displace.

King County owns the property, nearly 4 acres covering the northern half of the parking lot. The sale to Daniels is to close Sept. 12. Work on the first phase — 444 apartments in 10- and 25-story towers, plus retail — is expected to start days later.

But one of Daniels' prospective construction lenders put a hold on the loan last week, citing the dispute over replacement parking.

. . .
A series of inter-government agreements allowed the PSA and First & Goal to continue free use of the 491 stalls and all the revenue they generate until redevelopment happened.

Then the developer was to provide a replacement parking structure.

Those agreements also included language allowing the PSA to "seek transfer" of the 4 acres from the county if redevelopment hadn't begun by July 2008, and if the board determined it needed the property.

That's the provision the authority cited in its Aug. 11 resolution threatening to seek ownership.

It's unclear how far the PSA can push that. The panel can't condemn property, Hine said.

The sale contract the county signed with Daniels in 2007 included language requiring the developer to provide replacement parking both during construction and permanently, adding that it "must be acceptable to the PSA."

Yang said the county and Daniels both have lived up to their legal obligations. Daniels has offered to build a replacement garage on two sites, or to pay cash to settle the issue, he said.

PSA officials wouldn't discuss details of those offers. But Hine said none fully replaces what the stadium would be losing.

There's money involved here. The county expects to get $10 million from Daniels when the sale closes.

First & Goal collects $2 million a year in revenue from the 491 parking stalls, Postman said; a 1 percent parking tax the PSA collects on that goes to help pay off bonds sold to build the stadium.

But "it's not a question of revenue," said another Allen representative, Lyn Tangen. "It's a question of having adequate parking."

Seattle Times, Parking spat may stall project at CenturyLink Field

First and Goal, the stadium authority, whoever, should take control of the property, pay the county the 10 million dollars, build an underground garage, restaurants and shops on the street level and an arena on top.

He would make a killing, Seattle would get an indoor facility that would have the least involvement from the City of Seattle, and people that can afford an NBA ticket would flood local businesses 41 nights a year (and/or NHL).

Have a great day,
Mike Baker

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hughc5 said...

hell yeah soundes good build an arena there. it would make a ton of sense. i wonder how possible it would be?

Peter said...

i hate how they assume ballmer is the only one capable of building an arena.

i've been following mike hope on twitter and there hasn't been any update on the task force. they were supposed to meet again in august, i heard, but nothing yet.

lenny probably isn't the best one to trust as a source , you're right.

Mr Baker said...

I'm just not sure they want to have a task force going on while people are actively running for office, that is, they want a non-partisan solution to this problem while running openly partisan races.

green and Gold changed names to Arena Solutions and that paperwork and rebranding shuffle wasn't just for fun, but for funds. They had some political pros retool the situation, causing some delay.

I think some people (not me) were fooled that Don Levin was going to pull an arena out of the ground, as if all of us haven't looked at the current situation here for a few years and hadn't realized some giant on/off swtch to make this thing happen.

Here is the deal, a private arena, and land, and parking garage, does not pencil out with just an NBA team (thanks for noticing Don). You will have to have something or someone make up a 50 to 70 million dollar gap, somehow. This was the same situation as the Seahawks, btw, and they pretty much got a gift of parking (that is the current fight) and a ton of public money. That's not likely happening again, maybe Bellevue finds a way to cover that hole, maybe not.
Maybe the task force gets its shit together and the pass a bill that would tax basketball players and generate 7 million a year (7 x 10 years = arena), with the rest made up by private owners.

If I'm an owner and want to maximize my return then I want that arena in Seattle (1st choice) or Bellevue (second choice).

King County has a good faith offer for 10 million for 4 acres of property. If the Seahawks want it, they have to pay for it, and have a plan that does something more than parking.
They may be just applying pressure to maximize their return from the developer on parking.

Don't know, don't care. I want an arena, and any sniff of possible arena space and I'll exploit it, and put pressure on people act.

Anonymous said...

I like the Clink parking lot as well, not as much as the convention center but it's all speculative anyway. Can you refresh me on the 4coulture funding? I thought that could be used as source eventually.

hughc5 said...

i agree. i dont care if its the clink parking lot or wherever i just hope something gets done soon.

Mr Baker said...

The hotel tax is being used to pay off the Clink until 2021, after that it gets broken up into about 1/3 to 4Culture, 1/3 to a variety of public service items, and about 1/3 is fair game.
It is too far out to bond, but it dies not have an expiration date so it could be "committed" to a project by the King County Council.

4Cukture's other problem that was solved with the last legislation that passed was that they had a mandate to save part of their current funds (I think 40%, could be wrong) so they did not have and ongoing funding source, and they were unable to use their savings for operations until a funding source became available.

They will spend their savings up to 2021, then pick up part of the hotel tax for operations and to replenish their savings.

Anonymous said...

Thanks for the info on the hotel tax. I sure would like to see this "player fee" get through the legislature next year. Looks like the only pertainent and timely source of a public contribution to a building.