The Monroe City Council on Tuesday approved starting negotiations with NexCore Group, a national company that specializes in developing, running and leasing health care facilities for hospitals around the country.
The plan is for city staff to present an agreement to the council as early as next week or in January, economic development manager Jeff Sax said.
"(NexCore Group) is a credible and qualified buyer and they made a fair offer to the city," Sax said.
NexCore is interested in purchasing up to 8.8 acres on the south side of N. Kelsey Street. The total sale price depends on how many acres NexCore buys, but Monroe could get between $2.5 million and $4.4 million, Sax said.
The purchase can help pay off a $11.3 million debt in bonds the city has on the 23.33 acres, but the council could decide to use the money for something else.
NexCore representatives did not return phones calls. Paperwork filed with the city indicate the firm is considering building a 51,000-square-foot medical office building.
Sax declined to give further details about what the company plans at the property, citing a non-disclosure agreement. NexCore has been in negotiations with Seattle-based Grubb & Ellis, the city's real estate agent, for more than a year, Sax said.
According to NexCore's website, it is currently developing four medical facilities in the country in New York, Maryland, Illinois and Colorado. It also leases space in 10 facilities across the country. Providence Holy Family Hospital worked in a partnership with NexCore to develop the Central Medical Office Building in Spokane.
This is the third business that has shown interest in buying city-owned at the N. Kelsey area in the last two years. The council approved an agreement with Wal-Mart to build a store on 24 acres on the north side of N. Kelsey Street last March. That part of land was sold for $7.5 million.
The Wal-Mart decision is being appealed by a community group. A hearing is expected next week in Snohomish County Superior Court.
The city also approved negotiations with Bridgestone Tires for a 1-acre property in the south side corner on April 12, but talks have stalled.
Alejandro Dominguez: 425-339-3422; firstname.lastname@example.org.
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