City sends $3.2 million offer for half of Old Woodway Elementary

  • Jim Hills<br>
  • Monday, March 3, 2008 11:32am

Edmonds officials have put their cards on the table to buy at least half of the Old Woodway Elementary School site and are considering a play for the rest of the property.

“Today, we sent a purchase and sale agreement on the first parcel,” city finance director Dan Clements told the Edmonds City Council at the Tuesday, May 16 meeting.

Clements said the agreement would pay the Edmonds School District $3.2 million for about 5 acres in the northeast area of the property. With estimated redevelopment costs, the total plan could cost the city about $5 million, he said.

That money would come from a portion of the city’s real-estate excise tax and county and state grants.

School-district officials had already accepted in concept the city’s proposal, according to a May 12 e-mail from district financial officer Marla Miller to Edmonds Mayor Gary Haakenson.

The other, western half of the 11-acre parcel would be more expensive, in the $4.5-4.95 million range, Clements said.

“So for $8.2 million we get the whole 11 acres if we don’t develop it,” Councilwoman Mauri Moore said. “We can afford it.”

While the city would likely buy the first parcel with existing funds, officials are considering a bond for the second parcel. The plan would pay the Edmonds School District enough money to meet its cash flow needs until a ballot measure could go to voters later this year.

The potential sticking points are contingency concerns raised by Miller to Haakenson in the event a sale to the city would fall through.

“We are planning to finance construction with the sale of the property,” Miller said. “We won’t be able to use the city’s (pre-November payments) to obtain financing if we have to refund the money.”

If the ballot measure fails and the district must go back to private developers for bids, offers might be lower than they are now, she added.

“If the city holds an election in November and it’s not successful, we would be delayed in selling the property until realistically early 2007,” she said. “We don’t know what the market will be in 2007. You never know what’s going to happen.

“We haven’t actually done any negotiating on that proposal. We just outlined some points we would need to discuss further.”

It was the non-refundable part that raised the ire of City Council members on Tuesday night.

“I’d like (district officials) to stand in front of us and tell us why they can’t do this,” said Councilman Michael Plunkett.

Council President Deanna Dawson said, “I’m not willing to risk $1.6 million on whether a bond would pass.”

On Wednesday, Miller said that points raised in the message to Haakenson were intended to outline the district’s concerns and were open for discussion.

Councilman Ron Wambolt said that while the down payment is large, he’s more worried about the overall cost, which would likely be funded by a bond issue if approved by voters.

“This might not strap the city, but it would strap the taxpayers,” Wambolt said.

In the end, the council voted 4-3 to invite Miller or some other district representative to the May 23 meeting to discuss details of a potential deal.

At The Enterprise deadline, Miller said she had yet to hear from Clements, but that it was unlikely she or another district representative would attend the council meeting.

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