Lynnwood PFD fight goes to court

By Janice Podsada

Herald Writer

LYNNWOOD — The South Snohomish County Public Facilities District and a former board member will see each other in court in April.

The agency and ex-board member Rod Gregory are dickering over the price of a former Cadillac dealership Gregory owns.

The facilities district wants to convert the existing automobile showroom into a 40,000 square-foot regional conference center.

But after months of wrangling, the selling price will be determined in Snohomish County Superior Court.

District chairman Mike Echelbarger said Gregory wants $2 million more for the property than the district is willing to pay.

"We’re on a $30 million budget and $2 million is quite a lot."

Echelbarger would not reveal the district’s offer or Gregory’s asking price. According to the Snohomish County Tax Assessor’s Office, the property’s assessed value is $2.6 million.

Jim Granger, speaking on behalf of Gregory said the city is in the process of condemning the property.

"We have our definition of worth, they have theirs, we have ours. That is the material of which condemnation lawsuits are made.

"Their experts will give it a value, and our experts will give it a value," said Granger, anticipating the April 9 court date.

Gregory stepped down a year ago when it became apparent the district was interested in buying the property he owns at 196th Street SW and 40th Avenue West. The property’s location makes it easily accessible to the 196th Street SW I-5 entrance, which would alleviate traffic tie-ups, Echelbarger said.

Had he stayed on the district board, it would have constituted a conflict of interest under state law.

"Being a public entity we have to rationalize paying what the appraisal says. It would look bad to pay more than that amount to a former board member," Echelbarger said.

The South Snohomish facilities district was formed by the Lynnwood City Council in 1999 to operate the center. Under state law enacted that same year, taxing districts were authorized to receive funds from the state. The districts collect .033 percent on state sales tax revenues. The amount, 3.3 cents on every $100 purchase, can be collected for the next 25 years. About $530,000 is being collected by the district annually — money that otherwise would remain in the hands of the state.

With the continuing source of revenue from the state and from a city and county hotel-motel tax, the $30 million conference center can be paid for without any additional city taxes, Lynnwood finance director Mike Bailey has said.

Despite a downswing in the economy, Echelbarger said the proposed conference center is a good investment for Lynnwood and its business community.

"We are not competing with the Seattle or Bellevue convention centers. Instead of paying $250 a night in Seattle, or even $150 a night in Bellevue, a group can come to Lynnwood and spend $65 for a motel room."

According to PFD officials, the Lynnwood center will generate about $5 million a year for the city and up to $20 million for local businesses.

The city has the right to declare eminent domain, a legal process that allows cities and other public entities to condemn land in the name of the public good.

The court will determine the fair value in April, Echelbarger said.

Until then the PFD board won’t know whether it will purchase Gregory’s property or not.

Even so, the agency recently hired an architect, project manager and retired consultant Hartley Kruger, who proposed Seattle’s Washington State convention Center in 1969, to help plan and promote Lynnwood’s conference center.

"If the court says the price of the Cadillac property is as we expected, we will follow through with the purchase. If the price is too high, we would stop and make another decision based on what is best for the community," Echelbarger said.

The Lynnwood PFD must break ground on the new conference center by Jan. 1, 2003, in order to continue receiving the more than half-million dollars a year it receives from the rebate.

Everett and Edmonds have also formed public facilities districts and plan construction of conference or special events centers.

You can call Herald Writer Janice Podsada at 425-339-3029 or send e-mail to podsada@heraldnet.com.

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