Council may buy waterfront property

  • By Chris Fyall Enterprise editor
  • Friday, April 4, 2008 12:15pm

After months of intense debate, another three-plus hours of it Tuesday night, Edmonds’ policy towards the waterfront redevelopment efforts seems to be shifting.

“Buying all or some of that property is now back on the table,” Council president Michael Plunkett said at the conclusion of Edmonds’ April 1 council meeting, only minutes before 11 p.m., and after 40 people testified during a public hearing. Most of the comments asked the council to block taller buildings, or projects that changed Edmonds’ small-town feel.

“Now we need to take that information, take all of what is swirling around, give staff some time to think, and bring it all back to the council,” Plunkett said.

A general property tax hike, or a parks bond could be used to foot the bill, officials said.

But, exactly what any agreement would look like, when it would be made, and how it would be paid for all are decisions for the future, Plunkett said.

The 20-acre Harbor Square/Antique Mall redevelopment site is composed of three properties: Bob Gregg’s roughly 1-acre Skipper’s site, Edmonds Shopping Center Associate’s Antique Mall site, and the Port of Edmonds’ 10.6-acre Harbor Square.

The council also indicated it wanted to explore financial involvement with, but not outright purchase of, the properties. A public-private partnership could be the answer, Councilmember Deanna Dawson said.

To buy all of the site would likely cost in the neighborhood of $40 million, officials told the Enterprise last year. ESC manager Al Dykes has asked for $16 million for the Antique Mall, the Skippers property was recently sold to Bob Gregg for roughly $1 million, and the Port of Edmonds spent $13.6 million two years ago buying just the buildings at Harbor Square. The Port already owned the land.

The city is legally blocked from paying more than appraised value for the properties.

Still, public money could be used to help strip discussions about profit from the project’s future, Dawson said. The money could be used to invest in amenities on the land, she said.

Building a park probably isn’t in the city’s future, multiple councilmembers said.

“A park is not the right way to look at this,” said Dawson, noting public support for shops, and art projects and green spaces on the property. “But there is no need to rush. This is too valuable for that.”

What the project needs most immediately is willing property owners, she said. Gregg and multiple Port representatives attended the April 1 meeting. Dykes did not come.

Gregg said he’s willing to listen, but said the city — which has never contacted him about selling his property — needs to talk to both himself and Dykes.

Gregg insists his property is not for sale. It is, however, in the process of getting a commercial appraisal, he said. And while his property is not for sale — “I don’t want to give any false hope,” Gregg said — that doesn’t mean it couldn’t be sold.

“I have bought a lot of things that weren’t for sale, and I have sold a lot of things that weren’t for sale,” he said.

Dykes couldn’t be reached for immediate comment, but he has insisted that his property is worth at least $16 million dollars. On county tax roles, it is assessed for significantly less than that — roughly $10 million, Councilmember Ron Wambolt said.

In the past, Dykes has been hesitant to sell despite repeated public statements indicating a sale was possible.

Gregg has made several purchase offers to Dykes in the last six years, Gregg said. They have all been for more than the county’s tax assessment, Gregg said.

The most recent offer was made roughly a year ago, Gregg said.

“The city needs to talk to the property owners,” he said. “In the past at least, Dykes has not been willing to take anything near appraised value.”

Other options

Students from Edmonds-Woodway High School led off the April 1 meeting with presentations they submitted for the Edmonds2030.com design competition.

The low-rise, mixed-use developments were wildly popular with the residents, who praised them for innovative and out-of-the-box style thinking.

Many residents criticized last fall’s design proposals, urged the council to be deliberate, and a healthy majority of the residents pushed for public ownership for the three parcels. Some speakers did go against the grain, lightly pushing for density for environmental or economic reasons, but they were in the minority.

Many former councilmembers and council candidates attended the public hearing, and several of them spoke.

Dick van Hollebeke, a former councilmember and Edmonds Community College’s current board chair, said the issue has invigorated great debate in the city.

“You need to involve this community. There is no rush to get this thing developed,” van Hollebeke said. “Do not be afraid to be bold or imaginative.”

Reporter Chris Fyall: 425-673-6525 or cfyall@heraldnet.com

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.