Title
Approval of a Resolution Authorizing a Memorandum of Understanding with the Washington State Military Department for Real Estate Transfer of the Olympia Armory to the City of Olympia
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Resolution authorizing the City Manager to execute a Memorandum of Understanding between the City of Olympia and the Military Department, State of Washington, to transfer the Olympia Armory to the City of Olympia to support community development, arts education, and economic development initiatives.
Report
Issue:
Whether to approve the Resolution authorizing the City Manager to execute a Memorandum of Understanding between the City of Olympia and the Military Department, State of Washington, to transfer the Olympia Armory to the City of Olympia without cost other than the City’s payment of Closing costs associated with the transaction.
Staff Contact:
Keith Stahley, Assistant City Manager, Office of Community Vitality
360.753.8227
Paul Simmons, Director, Olympia Parks, Arts and Recreation Department
360.753.8462
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The Military Department of the State of Washington is owner of the Olympia Armory, commonly located at 515 Eastside Street SE in Olympia, Washington. The property consists of structures on approximately 1.72 acres, more or less.
On May 18, 2021, Governor Jay Inslee signed Substitute House Bill 1080 (hereafter referred to as “SHB 1080”), Chapter 332, Laws of 2021 of the 67th Legislature, 2021 Regular Session, relating to the Capital Budget of the State of Washington, with an effective date of May 18, 2021. Said legislation, in Section 1137, set forth an appropriation by the Legislature to the Military Department of $2,000,000, subject to the transfer of the Olympia Armory to the City of Olympia for “use as a community asset dedicated to using the arts to support community development, arts education, and economic development initiatives for a minimum of 10 years.”
The legislation required the Military Department and the City to reach a memorandum of understanding to transfer the Olympia Armory to the City for the authorized purposes provided in SHB 1080, Chapter 332, Laws of 2021, Section 1137, by May 30, 2023 “. . . at no cost to the city, except for the city’s assumption of closing costs.” The City and the Military Department have negotiated the terms and conditions for the transfer of the Olympia Armory to the City of Olympia, at no cost except for costs associated with Closing, and including certain restrictive covenants that shall run with the land and be binding on all present and future owners or occupiers of the Olympia Armory for a period of ten (10) years, as required by law.
Neighborhood/Community Interests (if known):
Acquiring the Olympia Armory will provide the City and neighborhoods with a venue for arts, cultural, and economic development initiatives.
Options:
1. Approve the Resolution authorizing the City Manager to execute the Memorandum of Understanding between the City and the Military Department for transfer of the Olympia Armory.
2. Do not approve the Resolution and provide feedback and direction to staff regarding this action.
3. Consider the Resolution at another time.
Financial Impact:
The transfer of the Olympia Armory to the City is at no cost; however, the City must pay all costs associated with Closing of the real estate transfer (estimated to be less than $1,000), as required by law.
Attachments:
Resolution
Memorandum of Understanding