Title
Approval to Acquire Port Parcel at Percival Landing
Issue:
The City has been leasing a 5,000 square foot tidelands parcel under Percival Landing from the Port of Olympia for many years. Staff recommends purchasing the property prior to initiating Phase Two of the Percival Landing Reconstruction Project.
Committee Recommendation:
Not referred to a committee.
City Manager’s Recommendation:
Move to authorize the City Manager to sign the necessary documents to purchase the Port property consistent with the Letter of Agreement between the City and the Port of Olympia dated June 4, 2012 for $27,412.50.
Staff Contact:
Dave Okerlund, Planning and Program Manager, Parks, Arts and Recreation,360.570.5855
Background and Analysis:
The tidelands parcel is adjacent to and immediately west of "The Kiss" sculpture on Percival Landing. The current lease term with the Port has expired, and the lease is now in "Holding-Over" status. During the "Holding-Over" period, the City has been leasing the property for $3,000 per year. The suggested value of the parcel was determined utilizing the Department of Natural Resource's (DNR) methodology for determining aquatic land value as stated in RCW 79.105.240. The purchase price of $27,412.50 is based on the City accepting the property as-is and assuming all liability related to the parcel. City Legal staff have reviewed both the DNR aquatic land valuation process and the Letter of Agreement.
Neighborhood/Community Interests (if known):
None identified.
Options:
1. Purchase the property from the Port of Olympia
- The City will own the property over which this section of Percival Landing is built
- The City will no longer make the $3,000 annual lease payments on the property
- City ownership will simplify future grant and permit applications for Percival Landing redevelopment
- The City releases right to seek reimbursement from the Port for certain remediation costs
2. Continue to lease the property from the Port of Olympia
- The City will not own the property over which this section of Percival Landing is built
- The City will continue to make lease payments on the property
- An additional layer of approval will be required for future grant and permit applications for Percival Landing redevelopment
- The City retains right to seek reimbursement from the Port for certain remediation costs
Financial Impact:
The purchase price of $27,412.50 will be funded by the existing Percival Landing Rehabilitation project #QA25 project budget.
Attachments:
1. Letter of Agreement
2. Aerial Photo Map of Parcel