Title
Approval of a Resolution Authorizing the Purchase of Real Estate Owned by Ronald Healy Located at 510 5th Avenue SE and 424 Jefferson Street SE
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a Resolution authorizing the City Manager to execute all documents necessary to acquire property located at 510 5th Avenue SE and at 424 Jefferson Street SE.
Report
Issue:
Whether to approve a Resolution authorizing the City Manager to execute all documents necessary to acquire property located at 510 5th Avenue SE and at 424 Jefferson Street SE.
Staff Contact:
Fran Eide, P.E., Project Manager, City Manager’s Office, 360.570.3953
Mark Barber, City Attorney, City Manager’s Office, 360.753.8338
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Ronald E. Healy (Seller) is the owner of two parcels of real property located at 510 5th Avenue SE, Olympia, Washington, and Capital Plumbing & Heating Company, a Washington corporation (Seller) is the owner of one parcel at 424 Jefferson Street SE, Olympia, Washington. Ronald Healy is the sole Governor of said corporation. The Assessor Parcel Nos. are 78505500100 and 78505500101 (see attached Property Location Map).
The City would like to purchase this property for municipal needs and uses for the City of Olympia. This includes using the property to replace parking and storage lost, as a result of the sale of the Justice Center property. The parking is needed in order to meet permit requirements for parking associated with City Hall, potentially replace parking associated with the Police Guild contract, and potentially replace storage for Olympia Police Department (OPD) purposes. The property also provides an opportunity for future potential low-income housing in Downtown.
Staff has concluded negotiations with the Seller and has prepared the Real Estate Purchase and Sale Agreement attached to this staff report. The purchase price is $1,400,000.
Climate Analysis:
While the City is required to provide employee parking for City Hall to meet existing permit requirements, this may negatively impact the City’s climate goals to reduce vehicle miles traveled. Free or subsidized employee parking can encourage drive-alone commuting, which increases overall vehicles miles traveled and associated greenhouse gas emissions.
However, potential future use of the site for low-income housing would support a long-term reduction in greenhouse gas emissions by increasing urban density (Thurston Climate Mitigation Plan Strategy T1) and supporting the development of 20-minute neighborhoods (Thurston Climate Mitigation Plan Action T1.4).
Equity Analysis:
The City is required to find alternative parking to meet permit requirements for City Hall due to the loss of parking as a result of the sale of the Justice Center property. Purchase of this parking lot will meet about 43% of the parking required for City Hall. The parking will be utilized by both customers visiting and employees working at City Hall. The parking may also be used to meet requirements of the Police Guild contract. The warehouse space may also be used by OPD for needed storage purposes.
The property also provides an opportunity for siting future low-income housing Downtown consistent with goals of the Comprehensive Plan, depending on the City’s future needs (which cannot be predicted at this time).
Neighborhood/Community Interests (if known):
The properties are located in Downtown Olympia adjacent to City Hall providing readily accessible parking needs for City Hall purposes, required parking to meet requirements of the Police Guild contract, accessible storage for OPD operations, potential other municipal needs, and as a future potential low-income housing site.
Financial Impact:
The purchase price is $1,400,000 and proceeds from the sale of the Justice Center property are to be used for this acquisition.
Options:
1. Move to approve a Resolution authorizing the City Manager to execute all documents necessary to acquire property located at 510 5th Avenue SE and at 424 Jefferson Street SE.
2. Direct staff to make alterations to the Purchase and Sale Agreement and return to Council for action at a future date.
3. Do not approve the Resolution and direct staff to seek other options to satisfy the City’s need for property to meet municipal needs and uses for the City of Olympia, including for parking, storage, and as a future potential low-income housing site.
Attachments:
Resolution
Agreement
Property Location Map