HomeMy WebLinkAboutCommittee of the Whole packet for 11/21/2016 �... Committee of the Whole Attendance
Date: � 1
COUNCIL PRESENT
�'' Randy Corman, President
� Armondo Pavone, Pres. Pro-Tem
� Ryan Mclrvin C C��v1�� �' `,�{S v�)
� Ruth Perez ��
,�' Don Persson
,� Ed Prince
� Carol Ann Witschi
SAFF PRESENT
,� Denis Law, Mayor
`�-- Jay Covington, Chief Administrative Officer
�Preeti Shridhar, Deputy Public Affairs ❑ Other- � ��
Administrator ❑ Other:��,,,r�.�A �,—
� Jason Seth, City Clerk ❑ Other: ),n/„ ,;, Co/�vv��
❑ Megan Gregor, Deputy City Clerk ❑ Other: ,��,� ,s� �,y,/��
❑ Julia Medzegian, City Council Liaison � ��
❑ Other. �� ���vl r"� ����iN,�.�� S
❑ Larry Warren, City Attorney �
❑ Other:
❑ Zanetta Fontes, Senibr Assistant City Attorney ❑ Other:
,'�— Shane Moloney, Senior Assistant City Attorney ❑ Other:
� Kelly Beymer, Community Services Administrator
❑ Other:
❑ Chip Vincent, Community and Economic ❑ OfFer:
Development Administrator
� ❑ Other:
Ellen Bradley-Mak, Human Resources& Risk ❑ Other:
Management Administrator
� Chief Kevin Milosevich, Police Department
❑ Other:
� Gregg Zimmerman, Public Works Administrator � Other:
� ❑ Other:
Jan Hawn, Administrative Services Administrator
❑ Jennifer Henning, Planning Director
❑ Jim Seitz,Transportation Director
❑ Leslie Betlach, Parks Planning& Natural Resources Director
� Cliff Long, Economic Development Director
�
AGENDA
Committee of the Whole Meeting
5:30 PM - Monday, November 21, 2016
7th Floor, Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way
1. ANIMAL CONTROL SERVICES
Presentation
2. 200 MILL REDEVELOPMENT RFP EVALUTATION
a) Staff Report
b) Presentation
3. REGIONAL ISSUES
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DEPARTMENT OF COMMUNITY
& ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE: November 17, 2016
TO: Randy Corman, Council President
Members of Renton City Council
VIA: Denis Law, Mayor
FROM: C.E. “Chip” Vincent, CED Administrator
STAFF CONTACT: Cliff Long, Economic Development Director
John W. Collum, Community Development Project Manager
SUBJECT: Evaluation of 200 Mill Avenue Development Proposals
I Background
The City-owned site at 200 Mill Avenue sits in the heart of what has been identified as the civic
node – a confluence of major civic, recreational and cultural amenities within Renton’s
downtown. It is a centrally-located but underutilized 3.79 acre property improved with a
seven-story office building built in 1969 (former Renton City Hall) and a large surface parking
lot. The site is located adjacent to the Renton Library, across the Cedar River from Liberty Park,
and within a few blocks of key downtown services and landmarks. With a long linear frontage
on the Cedar River, the property presents both a challenge and a tremendous opportunity for
development that will require a thoughtful approach to maximize its potential public and
economic development benefits.
The former City Hall building is currently 72% occupied with a mix of public, nonprofit and
private tenants, a majority of which pay market lease rates currently. Despite this, building
operations have run at a deficit in the past several years, which has required the City to support
maintenance and upgrades from the City’s general fund. Between 2013 and 2016, the City
invested approximately $1.8 million in building improvements, partially through a loan that
requires annual payments of $175,000 beginning in 2016. The building is in an aging condition
that will require increased ongoing maintenance and significant upgrades to bring the building
up to a level that would improve operating performance and marketability. A 2009 building
study estimated this cost at more than $10 million. Recent property valuation reports suggest
it is unlikely that such expenses would be recovered by significantly increased lease income
based on relatively weak demand for office space in the south end market.
AGENDA ITEM #2. a)
Randy Corman, Council President
Page 2 of 10
November 17, 2016
The City initiated a two-part process to entertain proposals to acquire the 200 Mill Avenue
building and surrounding property with the purpose of repositioning or redeveloping the site in
a manner consistent with the City’s goals and objectives. The Request for Interest (RFI) was
published and sent directly to more than 130 individuals to respond to a Request for Proposals
(RFP) with an Expression of Interest. Three firms were selected as finalists and were asked to
respond with development concepts and transaction proposals that thoughtfully address the
City’s vision and provide a creative approach to catalyze a vibrant urban development pattern
in the City Center.
Two teams responded with development proposals. An RFP Review Committee consisting of
City staff (representing departments with expertise in different areas of review, including:
Facilities, Finance, Legal, Economic Development, and Planning) and Council representatives
evaluated each proposal based on its responsiveness to the City’s stated objectives; the
qualifications and capacity of the development team members, including site tours and review
of similar completed projects; the proposed development concept; and the purchase offer and
its ability to achieve the City’s financial objectives as stated in the RFP. Additionally, a
preliminary financial feasibility analysis of each proposal was conducted and each team was
required to demonstrate its financial capacity to carry out its respective development concept.
Finally, each team participated in a two-hour interview with the Review Committee where each
was invited to make a presentation and respond to interview questions, specific to its proposal.
II Summary of Development Proposals
The Review Committee was impressed with the caliber of both development teams and the
thoughtful approach each took to delivering a high-quality development proposal to intensify
and energize this important location. The two proposals summarized below take very different
approaches to the development challenges and opportunities presented by the 200 Mill
property. See associated presentation for proposal drawings.
Cosmos Development Company
The Cosmos team consists of Bellevue-based Cosmos Development Company as developer and
owner, Seattle-based Jackson Main Architecture, Charter Construction, DCI Engineers (civil and
structural), Brumbaugh & Associates (landscape architects), and Heffron Transportation.
Cosmos has recently developed The Lofts at Second and Main in Downtown Renton (nearly
complete), and recently finished Lake Hills Mixed Use Center in eastern Bellevue and Redmond
Square in Redmond. Two other large scale development projects are planned in Lynnwood and
Redmond. Each of the team members has collaborated with Cosmos on other projects and
most have worked with each other. Highlights of work experience showed a capability to do
complex multifamily mixed use developments of a similar scale to the 200 Mill site proposal.
The team proposed a joint and coordinated Public Private Partnership with the City, wherein
Cosmos would acquire the parking lot of the 200 Mill Building (about 2.09 acres) and develop it
with a mix of residential and retail uses. It would leave the office building in City ownership and
AGENDA ITEM #2. a)
Randy Corman, Council President
Page 3 of 10
November 17, 2016
proposes that the City develop additional public improvements and amenities to enhance the
site.
Private Development Portion:
Market Rate Residential (rental): Approximately 312 studio, one-, two- and three-bedroom
units in three mid-rise buildings ranging in height from six to eight stories. The development is
proposed to be done in two phases.
Convenience Retail: Approximately 24,400 square feet of ground level retail space within two
buildings, with a public pedestrian walkway (MEWS) providing internal site access to the some
of the retail space. The retail uses are primarily proposed to support the new residential units
and immediate surrounding area.
Shared Parking: One structured parking garage (one full level below grade and two partial
levels above grade). Parking would accommodate between 344 and 406 spaces that would
serve the new residential and retail uses, as well as the existing office building.
Public Development Portion: The team proposed that the City retain and upgrade the existing
office building including improvements to the building exterior similar to those proposed in the
2009 building study. The team also proposed that the City continue to own the library surface
parking lot and commit to significant public improvements on the remaining City-owned
property, including a new public arrival plaza, a new linear pedestrian trail along the Cedar
River, and a public park on the southeast side of the office building fronting the Cedar River.
The private development component was contingent on the City making the commitment to
move forward with the office upgrade and public improvements in conjunction with the private
development. The overall project schedule envisioned a phased development over the next
three to four years, subject to timing of City improvements as well as market conditions.
Purchase Offer: Reconfigure parcel boundaries to create a 1.60 acre Parcel A, which the City
would retain and a 2.08 acre parcel from the existing office parking lot (Parcel B) which Cosmos
would purchase at the stated value of $30 per square foot 1 for a total purchase price of
$2,727,210.
Winson Investment
The Winson team consists of Bellevue-based Winson Investment as the developer and owner of
the entire site and all improvements; a design team comprised of Bellevue-based BDCL Design
International and Portland-based V3 Studio (master plan and lead designer of the public
improvements); with Seattle-based Rolluda Architects for the school and community learning
center components; and SAGE Architectural Alliance for the senior housing component; and
MarPac Construction as the general contractor. The project’s key investor, Mr. Guile Pan, is
from China and brings the vision for a key component of the proposal as described below. The
1 From the Broker’s Opinion of Value dated July 8, 2016 prepared by SVN Raven
AGENDA ITEM #2. a)
Randy Corman, Council President
Page 4 of 10
November 17, 2016
development team members have worked with each other in some combinations on numerous
past projects, like the Cosmos team, though only BDCL, V3 and MarPac have worked with
Winson.
On project tours, the Review Committee visited MarPac’s ID Village Square project in Seattle’s
International District and Rolluda’s Ethnic Cultural Center on the University of Washington
campus in Seattle. The committee also saw a presentation of two of Mr. Pan’s past projects
(JingYU Hotel in Chongqing, China and QingLan Peninsula master planned development in
Hainan, China), as well as several projects that Winson, BDCL, and V3 have collaborated,
including high-density master planned developments in various cities in China.
Winson proposes to acquire the entire site and develop it into a mix of residential, educational,
community, retail and restaurant uses with significant community benefits in the form of public
amenities in three phases. The heart of the plan is the creation of a “Learning Center” that will
be anchored by two main components: a new International School and an adult/senior housing
complex.
Phase 1 Development:
Shared Learning Center: A multi-use Learning Center shared between the school and the
community providing classrooms and meeting space for student functions during the school
hours and an extension of the library for meeting space during non-school hours.
International School: A new International School initially sized for up to 500 students in grades
6-12 with student “commons,” a cafeteria, and an 11-story dormitory tower with 250 quad-
style units that would house approximately 400 international students initially, with the
remainder anticipated to be local students living off campus. A student census that is more
balanced between international and local students is anticipated in future years with reputation
growth.
Shared Multi-Function Gymnasium and Theater: A two-level gymnasium/theater facility that
would be available for school functions as well as events in the surrounding community; also to
include classrooms and administrative office space for the International School.
Phase 2 Development:
Independent Senior Living: A 10-story senior housing tower with approximately 30,000 square
feet of support space (reception, fitness area, salon, housekeeping, activity rooms, and private
dining areas) plus a ground floor waterfront restaurant open to the public overlooking the
Cedar River.
Phase 3 Development:
Outdoor Civic Plaza and Riverwalk Park: The plan also proposes considerable public amenities
that would be privately-owned and maintained but open to the public in perpetuity, including a
civic plaza with water feature, amphitheater, and riverwalk park connecting the site to the
AGENDA ITEM #2. a)
Randy Corman, Council President
Page 5 of 10
November 17, 2016
Cedar River and the Liberty Park playfields beyond. To accommodate these improvements, the
existing office building would be demolished either during phase 2 or 3, dependent upon the
status of existing tenant leases and ultimate timing of completion of phases 1 and 2.
Shared Parking:
Approximately 15 library parking spaces would remain in a surface lot with the balance of
required library spaces provided in an underground 340-space garage, which will also support
the school, residential, retail and other public uses on site. The garage would be constructed
during phases 1 and 2.
The three-phased project schedule includes two alternatives over the next 4-5 years,
dependent upon the status of existing tenant leases.
Purchase Offer: Proposing a total of $4,000,000 cash plus the value of public improvements at
cost, estimated at $3,010,469, for a combined offer of $7,010,469 (slightly exceeds stated
combined Broker’s Opinion of Value for building and land of $6,983,870).
III Review Committee Summary
The City intends that proposed development of the 200 Mill site will achieve certain City
objectives. Both teams presented development concepts that address most of these objectives
with a higher intensity development plan that brings a variety of different uses to the site and
creates a more urban center feel. Both proposals would increase the round the clock utilization
of the site with a more intense residential development supported by a mix of public and
private amenities. The Cosmos proposal relied on significant participation of the City to achieve
these objectives, while the Winson team proposed to provide the City’s desired objectives
privately. Other distinctions between the two proposals are noted in more detail below.
City Objectives Cosmos Winson
a. Private use that complements image
and function of civic node concept and
Center Downtown Zone – both of which
call for higher intensity development
with a variety and mix of land uses that
are indicative of an urban center
High density
residential; moderate
retail use
Institutional; residential;
community; moderate
retail; restaurant, public
amenities; employment
opportunities
b. Enhance access and visibility with better
connections to other amenities and
business district
Public access through
site’s new private
development;
connections to History
Museum and business
district along Mill;
pedestrian connections
to river dependent on
Public access through
site’s new private
development, as well as
public accessibility via
new civic plaza and
riverfront park provided
by developer;
connections to History
AGENDA ITEM #2. a)
Randy Corman, Council President
Page 6 of 10
November 17, 2016
requested City
improvements
Museum and business
district along Mill
c. Superior building w/ 360-degree site
design
Good building façade
design along Mill and
Houser; building
phasing dependent on
City; parking above and
below grade; overall
site design is oriented
internally
Full site design and
superior building design
with through-linkages
(visual/pedestrian);
interesting variations in
building heights and
transitions to surrounding
buildings; majority of
parking below-grade;
overall site design is
oriented toward publicly-
accessible open space and
river
d. More intensive use and round-the clock
activity/energy
High degree of
residential tenants
brings energy and
demand for other
downtown retail
businesses; retails uses
increases foot traffic
High degree of students
and seniors plus public
amenities and
retail/restaurants = high
activity
e. Retain library parking per agreement
with King County Library District
Does not acquire
library parking lot. No
change proposed
Retains some surface
parking and provides
balance underground
f. Provide public benefits/amenities that
enhance site (exceeding minimum
standards required by Design
Guidelines)
Pedestrian public
access between retail
buildings; public arrival
plaza and riverfront
trail/park amenities to
be responsibility of City
to complete; private
development is
contingent on City
commitment
Privately developed
public access; significant
community benefits
including civic plaza and
connected riverwalk park;
shared use Learning
Center; multi-use
performance/ gymnasium
space and pedestrian
connections linking to
surrounding area
g. Provide fair market return to City in
disposition (both the building and land
were to be valued at Fair Market Value).
Portion of land
purchased at City’s
stated value; no value
given to City-retained
portion or
development costs for
building upgrades and
Return to City comprised
of cash and value of
public improvements to
be privately developed
and managed/maintained
in perpetuity
AGENDA ITEM #2. a)
Randy Corman, Council President
Page 7 of 10
November 17, 2016
public amenities
Potential Financial Impact of Proposals Cash purchase: $2.7M
City cost-building: ($10M)
City amenities: ($3M)
Total Net Cost: ($10.3M)
Maintenance:
($200K)/yr)
Building Ops: ($100K/yr)
Cash purchase: $4M
In-kind amenities: $3.01M
Total Net Benefit: $7.01M
Ongoing Maintenance
Benefit: $200K/yr
The two proposals were rated by the Review Committee based on the scoring criteria in the
RFP, providing a total of 150 possible points. The breakdown of team scores was determined to
be:
Category Winson Cosmos Total possible
Team Qualifications & Individual
Commitment
22.8 23.3 30
Proposed Development Concept 32.7 27.3 40
Additional Submittal Items 14.3 11.0 15
Financial Feasibility (Pro Forma) 14.0 12.0 20
Proposed Project Schedule 9.5 9.8 10
Purchase Offer 9.3 7.5 10
Interview 23.1 17.4 25
TOTALS 125.7 108.3 150
IV Issues of Concern
In reviewing the proposals, the Review Committee identified areas that may warrant further
discussion or raise questions of concern to the City as it entertains each proposal. These are
summarized by team below. The issues of concern would be further reviewed and considered
during the early stages of due diligence and development agreement negotiations between the
City and selected development team.
Cosmos Proposal
x Proposal leaves City with significant known and unknown costs for:
o Ongoing operations of the 200 Mill building (currently operating at a deficit of
over $100,000 annually); with significant and increasing maintenance costs.
o Required upgrading of the existing building exterior (described as a requirement
for private participation). A similar scope was estimated at $10 million in 2009.
o Construction of significant public amenities and improvements (arrival plaza,
river trail, and riverfront park). Cost unknown but potentially could be several
million dollars.
AGENDA ITEM #2. a)
Randy Corman, Council President
Page 8 of 10
November 17, 2016
o Ongoing maintenance of public improvements and library parking in perpetuity.
Cost unknown but potentially could be hundreds of thousands of dollars per
year.
x Commitment by the City to assure funds and complete improvements in conjunction
with development schedule is required for developer participation.
x Project schedule and phasing would significantly impact parking. Development team did
not address parking needs during phased construction. Parking would be eliminated
completely from private development site at start of Phase I and would not be restored
for approximately 20-month construction duration.
x Development of first 237 units occurs in Phase I, however completion of remaining 75
units would be contingent on City participation and market conditions. No assurance of
timing for later portions of development. Interim condition of site leaves vacant retail
space (would not be leased until completion of Phase 2) and an above grade parking
garage and concrete building pad as the “face” of Mill Avenue.
x While the initial financial review revealed sufficient financial capacity to complete
development at stated cost, development budget appears to be understated.
Additional capacity would therefore need to be evaluated prior to agreement.
x Developer proposes that all parking would be paid parking. What is the feasibility for
this in the area?
Winson Proposal
x The project concept includes an International School, drawing students from China.
Based on information provided in the RFP process, there appears to be significant pent
up demand for such U.S.-based education opportunities. As a unique use to the area,
the financial feasibility is difficult to fully evaluate at this stage.
o The development team proposes to operate the school based on a local private
school model, with similar staffing ratios and expenses on a per student basis.
The lead investor has experienced Chinese education partners advising on the
school’s structure and operational development. The Review Committee also
viewed tuition comparables for both local schools and International Schools
based in China which appear to support revenue assumptions. As part of a due
diligence process, the development team intends to gather more in depth
information on the school operating structure and financial assumptions. This
information would need to be reviewed by the City should the proposal move
forward.
x Public amenities are significant and commitment to construct may require some form of
financial assurance of completion as these would be done following demolition of the
office building.
x Public amenities (civic plaza with water feature, riverwalk park) would not generate
revenue but will require ongoing maintenance (cost is estimated at $200,000 annually).
AGENDA ITEM #2. a)
Randy Corman, Council President
Page 9 of 10
November 17, 2016
These uses will be subsidized largely by the International School and Learning Center
functions. Financial feasibility of school operations is therefore important for the full
scope of public benefits proposed.
x Availability of investor resources was analyzed in detail and determined to be sufficient
for the required participation in the overall project; however timing and access of the
portion of resources held in China will require government authorization of the
investment once a development contract is executed. U.S. based resources appear
sufficient to work through predevelopment and DDA stage but would need to time
investment and movement of other resources to assure sufficient equity. (Lender would
require this as well).
x Senior independent living units are proposed in a high rise design. While senior housing
may be in demand, need to better understand market for this type of design concept in
the Renton area.
V Conclusions / Recommendations
The Review Committee was impressed with the caliber of both development teams and the
thoughtful approach each took to delivering a high-quality development proposal to intensify
and energize this important location. Both proposals, if fully completed, would bring greater
density to the area and catalyze a vibrant urban development pattern to this end of Downtown
Renton. Both development teams have a demonstrated track record and capacity to deliver on
the concepts they propose.
However, only one proposal appears to accomplish this without the requirement of significant
up front and ongoing public resources and involvement. The uncertainty related to the
availability of the capital resources of significant building upgrades on a timeline necessary for
the Cosmos team to move forward is of concern. Additionally, the Cosmos proposal’s request
to retain ownership of the office building would mean the City would continue to incur on-
going operating costs for the facility, as well as additional construction and maintenance costs
for the requested public park and trail improvements in perpetuity. On the other hand, the
Winson proposal provides a wide range of public amenities provided by the developer,
including both construction and management/maintenance costs and public access to facilities.
Furthermore, the Winson proposal presents the opportunity to introduce the downtown area
to a wide variety of interconnected uses on one site, including an educational facility, that can
serve as a catalyst for other development in downtown while connecting the Cedar River and
areas beyond more directly to the business district.
Given these concerns and the opportunities presented through the Winson proposal, the
Committee therefore recommends pursuing negotiations with the Winson Investment team to
determine whether a mutually acceptable Development Agreement can be reached to move
forward with its proposed concept.
AGENDA ITEM #2. a)
Randy Corman, Council President
Page 10 of 10
November 17, 2016
VI Next Steps – ENA and DDA Processes and Timeline
The RFP process describes the next steps upon selection of a development team. Council
would authorize the City to enter into an Exclusive Negotiating Agreement (ENA) with the
selected team, which would establish a scope and timeline in which both parties would conduct
initial feasibility analysis and due diligence activities sufficient to arrive at a mutually acceptable
Disposition and Development plan. The proposed timeline for completion and execution of the
ENA is by December 2016. Upon execution of this Agreement, the selected team would
provide an earnest money deposit to hold its right to exclusively negotiate the terms of
development with the City. The RFP established a tentative timeframe of four (4) months for
the completion of preliminary feasibility work and presentation of a more detailed
Development Plan to the City.
The City and the selected developer would then begin negotiating the terms for execution of
the Development Plan, formally referred to as the Disposition and Development Agreement
(DDA) which would address items including, but not limited to, terms for the disposition of
land, timing of predevelopment activities including entitlements, community engagement,
design development, preliminary budgeting, permitting, financial commitments, and phasing of
construction. The RFP established a tentative timeframe of four (4) months for the negotiation
and completion of the DDA, with an anticipated approval and execution date of September
2017.
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AGENDA ITEM #2. b)
R e c o m m e n d a t i o n : W i n s o n
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AGENDA ITEM #2. b)
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Former Renton City Hall � �
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Site Description
� � . . � ��.. _ ;� « � e _ -��
• Underutilized Cit -owned ro ert �����'� �
� f �' � ��� �. �
p Y -��; � �. �7 �
�t�,
with 1960's era seven-story offiice ��-� . � ��� '� � z� �����
� � , f>�,, � � �
building � ; �1� � � �` � � �
:��k
� �� x
- .�. � _
- , r
Rentz�n
� ��: ,< , -, Librar �£ �
• Existing ofifice building is aging and ���� �'� � � ���� a. ��� '�� � � ��� �� �'`�� � � ��
in need of upgrades �a �-. ��, �`����� � ���� �:� ,�- ���� ���,�
�t,� :,`�� ��� �S � . ,. *►� ° � �
� � c�
` � �?� _ �� � . . . .: a .y
�'w,, , �,.$ �, :'� '�U ,uk<37c>
� 3.79 acre site (parcels 1 & 2) ����0,�50� �� � � � P������; � �- �.� -��� ��;� �, �
_ = ,, .� ��
• Adjacent to Library, Cedar River, & �. s 2nd sr � �, � �� ,� � �'-� ; � .e �� ���R,
� � � � �
� �
� : ��: - ��, �-
Liberty Park � -�3{ .«�".,�.`� F�« �� :�: � � •'''b► � �
��_ � � �_ �`�� -� ;��
` � �� 3� � .�� _
�f�:_ s�t�o►� � Parcel � ��� .-� ��� �
�� - . �_ _� .� � �,,r+�`' ,r
• City issued RFI & RFP to solicit � � � , 2 �-
ro osals for r �°� � �. �.'" �„ •���N=�''� a`��
�-
p p edevelopment of site 2� r � /
� �a. -.- ,���.�..,. � � • � � �5Q` ��
�--�.c � �� �,t"' � I''� ��'` � ` � �' �,� C� �"
. � `°,��-.. �R�ni�41t` �_����` ,r'..�`,1•��� ,�������:; d`�C�'
• Redevelopment must be consistent = �� ���� . H,�to fi �. ��
�y� _V�.fErar�s �` ��USe �- , �,, �.
��.
�, . �` � , * >
� ,�
�
with City's goals and objectives . � s��.�.z� � � � �' � _��� � � �.��ti � � � .�� � ��
�� � outlined in RFP
� .
. �
Development Goals
City Center Community Plan � �- � - � ����-
� '�� !� I� �� � � xY �����`;,. ...��` ���.,� �'
• Renton is expected to grow � �� --� i��° ' �-� ���`����� �� p��
� � . �,- ,
�����, , � "t ,�� � �� , ��
considerably over the next 20 years � �� �; ���� � �,� ._ � ��� ���_ � t �
� � � �� � � � �
�_ f � ��, �� �1
� The City Center Community Plan � �x� %� �� � � � �
�
, .. ��
adopted in 2011 is designed to: ���= � � � - � � � �� ����� �� �
�,�..��=-= _ 1.
• shape and direet growth ' �� � � ��� ��'
� `'
r �
� � � � � �� � � , � �
• provide strategy to stimulate � �� � ,, �
economic development �
CITY CENTER
• improve livability of neighborhoods COMMUNITYPLAN
• preserve City Center's unique identity Adopted:lune6,20�t
� RepareJ by.MAKERS archllecl�rn arq urnan tleagn
w i e creating community character T�T�a�s���,
�� . � r�\. ,,
� ���, �
� � t
��'
Development Goals
�.:.f;- � �-�.� >�
Center powntown Zone .- � =-�:�� ° � ����� � ���� �
.� �
� � �.. �� ��
1 � �, 4
°,: �� 3� ;� ��
• Allows for widest mix of land uses -� � � ` � � � ��~���"� ' ��� � � "���
� --� �
� _
r
, z � .� , ° � ��„�
_ �, � r�•�� � ��� �-
� � �
• Strongly encourages intensive �ti�ti��`� ' � � �`�� �� � � �- ��- — �'��� � �
t� '' �` � �, ---- -� �" � ���
, �
development to create vibrant ����� � �'�� �"� ��� ������
district and increase em lo ment - � � � � -�� � ��� � � ���='� �
p Y � ., ,� __ �� �:
.
-__ __
opportunities � � ` � �� � ������ �;` � ' ,
� } �°:
.� � � �_� � �'� �`� (
-
�, , _ , :. � � .'
• Site is suitable for higher density � �� -� � �� � ��� �� ��
-- �. .� �. .� u .� �
��Q , ,
;.; n �_ � t ~ � � ..
urban use and pedestrian activity � -� ,.
� ��� � ,� � � --�►
.,-�
• Proposals should provide a creative ���� � �� ;���� � �:��„�,,, "
.�
� approach to catalyze a vibrant � � � � ������� ���� � ��� � .��
��:�
� urban development ����� � ����,� �� � �,e
� �
� � -
;�: ; ,
� � �_ �;_ � . � ���
�`
. �
City Objectives
• Return an under�tilized site to � - ������� �-� � �������� � �
private use that fosters the image �� �.�p� � � � �
and funetion of Community Plan's �� � ����� `� � � s � �� � � � ����� ����
� ��
civic node concept and the Center � � ���� -� �� � ��
e�}�Y' fh.��4 � S� �� �"� S
Downtown Zone ��� �°�� °���� -� � ���.� � � �
k ��� � �
� �,, � ' � � , t � 9
.. �`� �,'-����r �a k� i�Y-,��+°.�� ;F ''�''y,��, • ;,�.€��.> �`�',,,u;:; -..§a
'_, . pg 4>a� �z, �.�� x . grt., �- ,� 4 �
• Provide enhanced access, visibility, �� � ��������� k �;�� . �: � ���� �;��`��� �°� ,� ������°��
� � �
�,� �}� ���� �#�� . �. ,�� �� ��x��t�� 4��- . s�-" � , ��
and connections to surrounding �� .,°��� ; . rµ N,�,�� ��.� � �� -�:_ �k � "� �
w �� s""�h� �. s s�" '+, � ��rri � F �� ' �"''�
civic natural and cultural amenities �t ��a���'��� �� ��'� �,���';��`" ���`����� r�`" ��:� �� � � �
f f � �� � s�
and Downtown Business District ���" � �� �`��� ` �'�� �����"� �.�'� � �� .
x ,
;�,* ,�. ' ~� �'` � �,� ��
�,
���.� �� ,�.d �'�r� �,- _ � ,'��. �_�.
�.3 � ' �Q�N'�'� :. .t���. � " "n *'�"'" ��`a�' �� �}l
• Achieve superior 360-degree � � �� ___
.
.
� �, � .;,� � - -" � �, - '�'w"�' ��� x. .�: a ����„
building and site design that does � � `�� - �� ��x'` ����'��'
...
not turn its back on surrounding ��� �� �`��=��"`������� �� ��`�� ���� ���� �� � �'°-�� ��
�� ��
uses
• Maximize site's appeal, bringing
more intensive round-the-clock
activity and energy to the area
City Objectives Continued
�� - �
• Retain parking for public library � .�������� '�;;��� � � ��
�� �y,�� ���
e ; . �
• Provide public benefits/amenities �`�� _ � � �� � � ���� , ���� ��
� . � ��� ..
that enhance the nature and � ��� ��� ;: �}.�•:� m
� � Y _.p .. a .� F�&„k. , d� ... ...... ,:+.,a. ._}. ro.�.,. .
character of site and surrounding ��` ��, `�'`
� .r
� � :� _�w � �� .�.
. _._ ._
uses and exceeds the City's � ���� � ��� � � ��������,������ -�
minimum standards ������ ��� �, ��� ��� '� � - ` � � ��� �
��� .
. � i������
�_-.�� � ���.,� k: ;w ��4
,
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• Provide fair market return to the ��: ��: -- �� ��
City in the disposition of its property ����`°�`���� �� � �� �, ., ���K �. �� ������
�r�„
ix
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;�31
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JACKSON � MAIN ,�- , ,
�1ARCHITECTURE CHARTER , // '
C O N S i p U C T 1 O N y ^ f � '�'
,s' fp€ � ,.,.y.YE:
�
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Brumbau�h & Assaciat�s � �� �� ��
L A. hJ C• 5 C. A P 6 A R C M T � '" T U " f� � "��� ��
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• • •
_.. a ,.;.��s.<a`r ��
�
Cos m os
• Phase 1 includes developer's construction of
full below and above grade parking garage and
podium and buildings A (8 stories) and B (7 �,� ��;
stories) (includes 237 DUs); also, City's . ��,��
�-. R T N
."/�
EN D
LIBR�RV
develo ment of ublic ark at NE corner of site = � ;��� ��� �� ��� ����- �
p p p � � _. �
E%ISiING�ARKING � � �� �" ��
WITN LARGE TREES
PRESERVED O {���' '�� ��., �,- �h
• Phase 2 includes developer's construction of W �� ` '� � ������ � , ��
buildin C 6 stories includes 75 DUs • also = �� �� `� �� ��; � ""�� R,�,w,�
g ( ) (' ), , w � ,
� Q � ' \ RELoOALED s , , /
City s refurbishing of existing office building ' � �� Fo�NTA� 1 �� k �F ���.
_ ��n i� �������� � �.'`� oqR �� ST�EPSALL
and development of Central Plaza � � -� -� �-�
� '���� �. ��`--` '�. �
` ���� � . �'�5�� � IIEPUIIl�lMED L�C FUTURE
`j� �\�.,- O F F I C E q + '�'�PUBLIC PARK
• Total ofi 312 market rate DUs ���� � s������� � .,�
S.2 N D 9 T. �� ` pE Ra� � ��4a,
_. ' \_
` �� � � :t ����`,� �
, � � � ��f e
�. �� � ��` `'�.'_, \ � �\ �'`;.
� 24,400 SF retail within buildings B and G "� � C g ;� ��AJ�� � '� ��� �;,%
RETAIL � BRIDGE �( �`{�Y � � �'
CAFE, CONNECTION \�R t (� � P
STREETSCAPE �� TOOFFlCE �� � „�r��( � u��t YQ �,
� PEDESTRIAN BIDG DECK. " �
�` �`�.�....�! .,-4 . /
• 344 to 406 total parking stalls LOBBV � BR��E -�-�; � , a, , ,, 1 � - v
ENTRY � . � � ����'�
_ �-. C'r _ \
� ,. PEDESTRIAN—• \ �
� ...RETAIL STftEET� p�/��`��, �"'� ��- `\� '� � -
P�r,� u °`�'.,. " r"\ <�r%:
• Public plaza near Mill/Houser, leading to ���ry�R� � ���`� �� � q � ��
� �.�� �
pedestrian only retail/restaurant street (MEWS) �� =�--��- � ���� � ���-�;.-= �'����
�� IRAZAACCESS �•
and ending at central arrival plaza � , E�Y�` ��y5�°`�
�
i � l�'� ��'�...'O J � •NP
�te courtyard for residential tenants above ENHANCEDCORNER ----�� ;�� S�
� PR SERVEDTREEES
�� 'r!' �'^" �
�.
rking garage ���� � �� �� �
Cos m os
parcel as is �� ��� �
• Proposed lot line adjustment in ��� � � �� � RENTo� P�B��� � :��
�� LIBRARY
order to purchase a portion of ��
r��
��
parcel 2 only �� � ����� �.
"�`'� EXIS � FICE g�
�� ' - - BUILDIN ���'
• 2.09 of the 3.79 acres are desired �
for purchase �� ° 000�zo�5o
�-�� �5���� _
• Leaves the seven-story offiee �� "� �' �- �� �� ��� ����
building, land along Cedar River, ����'` �� °�,��� � �-��� ���
and library parking in City ownership � :� �� � � ��� �`' ���� ��
(entire parcel 1 and balance of proposed parcel ������� � � � � �
� � �
parcel 2) ��� �� °
:
�
� �'� RENTON Pl18LIC �
PL BETWEEN PARCELS IS CL " '�' — �IB�RY
OF SECOND STREET ���'� r� �� � � �,
• Proposed purchase price is EXTENS�oN ---
.�, � r�
$2,727,210 (90,907 SF x $30 per ��.� �
��� �
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� EXIS ��-�FI�E
K�
SF� � �'���` BUILDIN °�.�� .
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• City is to refurbish existing office ��. � --� � � . �
t. �'3tks�
� building and develop and maintain �� -'�= ���� �_ �-� �� �°��
� - � a public park and walk/trail along � � �� �� ,�.����� _
the Cedar River �;� H� � ,� �P
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�rchitecture qlanning inter�c�r desi�n
�:. ��
Wi nson
• Phase 1 includes construction of below grade parking, learning
center(2 stories), student dormitory with cafeteria and roof terrace � ,y4
(12 stories), international school with gym, classrooms, and �
0
administration areas `�`c+
. ���,,•�✓'`,... t.iD+.7tY Park
�:'�
• Phase 2 includes expansion of below grade parking, demolition of ;��
existing office building, construction of independent senior living
units and facilities(83 DUs), and waterfront restaurant
• Phase 3 includes construction of civic plaza, Riverwalk park, and
waterfeature
`�..���� ,,.
r
• 500 student capacity with 250 dorm rooms '� �
' s�,���n z„a s� f � � � ti�
�
• 17,656 sq ft of retail/restaurant space along Mill Avenue and ��,,,�.���� ���� �
i '� `� ,/`
waterfront � : � � ��
�..� ,� �
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• 340 total parking stalls in garage along with 15 surface spaces � _ � 2
dedicated to library(additional garage spaces designated for � r �,"° �;� ,,. ,�� �
library}
�
• Public central civic plaza surrounding non-street sides of building ���� �� �� 5 �� "' �" ��=' ��
with water feature that border u er and lower laza sections `*1\ �
pp p , ���`� u������
riverfront park connecting civic plaza levels to Cedar River
• all public plaza at Mill and Houser, along with pedestrian pass-
t oughs from streets between buildings to civic plaza
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• Proposed purchase ofi both parcels � ��� � ���o�°°�� � � � �� �� ��
and existing site improvements ��'`���� �' � � �.,h�=r,.P�,�k
�.�. � ��. �. �ry ,
• Proposed purchase price includes �� �� �� �� � r _: ,�� �� ; r _
$4,000,000 cash and $3,010,469 �„' : � ��--� � ` � � � ��� °-�o��.� ��� ��� r, � � �
� �i x .. � '' y � `�_.. . `�4�..•^h� 1 �,�� ,m, «
worth ofi public amenities paid by � � �- �- _� � k� ��� ��� �� � �
: . _ � � _
� ,, � ���� � ; � �
developer (ineluding demo cost of � � �� � ��--;�" � -�� � ; �� � � �
existing office building, � � � �_____l � ��� ���
� �. � � ' rt
� �
development cost of riverfront park, �„��� � �<,�h�°°�� � � �~'
.,; �� � � =��
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civic plaza and water feature, and � ��: �-� � �� �; � ,��, �=��.� � �; �
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, ,.
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value of land that will be made � ; � - �
. > _� J ; , ¢¢ ' - �' �
available for public use) for a total �� � , _ °- ,� -����� � � ;
.r , z � _ � r
� purchase offer of $7,010,469 �� � ' �`��� � � � ����� " � � ��
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• In addition, developer responsible � � �� '� � ����
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�� �
x ��' � � `�� �� � _
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fountain (estimated at $200,000 � � ' � - � �. ���
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Selection Criteria �
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Team Qualifications and 30 pts
Individual Commitments
Proposed Development 40 pts
Concept
Additional Submittal ���� ��� � ���� t � ��f��, �������,�� ���� 15 pts �.
Items rv � � � ���� � �� ��� 3�����'��� � �
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Operating Pro-Forma, 20 pts
Project Sources & Uses
, �s��. � �r����� ���, ����r�, p�c��� :� ��,�*s�'�`�'���"'�� } � .
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Schedule `� ,s � 2�'",� s:����� �� �.�,��P�� "��� r���'..�� �
��v°a. '"f ����'uia t � � '� a �'� ��'x,4�� ��� � a�.`�'•"� �,y�s �`�T w .
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������ �'�����v����:_.:.���� �:� $� rr�� ._ ,�.� � �-�. � ��,,
Proposed Purchase Price
10 pts
� �`���� � �.".��`������ �� ����`����"��" '���s� ��
� � ����� ��,� ��� ����s�� � .� ,��� 25 pts
Interview � �'J � � `��� �� ������ �� �� �'��� � ����� �
F�4 a��y.4��������zd5�����'��y' ��- 's.��� :N� ����y ., �S
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150
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Selection Criteria �
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Team Qualifications and 22 $ 23 3 30 pts
Individual Commitments
Proposed Development 32.7 27.3 40 pts
Concept
Additional Submittal a 14.3 � ; 11 15 pts
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Items �� � ���� -
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Operating Pro-Forma, 20 pts
14 1
2
Project Sources & Uses :
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Sched u le ��� 9.5 '����� ���w 9.8 �,,� �� , ��
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Proposed Purchase Price 9.25 7.5 10 pts
25 pts
Interview ,_ : 23.1 _., 17.4 �
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-� TOTALS 125.7 108.3 150 A `�
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Cosmos Proposal Concerns
• Proposal leaves City with significant
known and unknown costs
� Project schedule and phasing would
significantly impact parking during
construction ��` �_��� ��
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• 237 units developed in Phase 1� W�l� � OFFICETOWER BLDGB � o- �
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completion of remaining 75 units � -���
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contin ent u on Cit artici ation and � � � � �`_ �� � �
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• Interim condition of site between phases � '�"M�� -��` ���� � �
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leave vacant retail space with parking RENTONPUBLIC > m ��
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garage as "face" of site ,,�� �� �`
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• Development budget appears to be � , �
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• Developer proposes to charge for all � �� ��� �- � ��� � � � � ��
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parking
Winson Praposal Concerns
• Financial feasibility of International
School is hard to fully evaluate at this
stage
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• Public amenities are significant and
commitment to construct may require �
financial assurance of completion �"��� ���
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• Public amenities will require on-going ��" �F
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private maintenance. Can other site �� ����'�""�'��R�
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• Timing and access to investment � � ��� , �„ �� ��,� �,� � . ������
equity held in China will need to be �� � � � �-��a ��it � �����p ��- � ��: ���������������� �
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• Better understanding of market for ' ��� �� _�- ���:� �,�
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senior independent living in Renton
area is needed `��� � ���� µ
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Canclusions
• The Review Committee was impressed with caliber of both teams and proposals and
believe either would bring greater density and energize downtown
• Both development teams have a demonstrated track record and capacity to deliver
• Only the Winson proposal appears to accomplish City objectives without the need for
significant up front and ongoing public resources and involvement
• The Winson proposal provides a wider range of public amenities; introduces the
downtown area to a variety of interconnected uses on one site that can serve as a
catalyst for other development; and connects the Cedar River and areas beyond more
directly to the business district
• The ongoing demand of owning, operating, and upgrading the office building would be
increased by requirement to construct and maintain public amenities in perpetuity
• Given these concerns and the opportunities presented through the Winson proposal,
the Review Committee recommends pursuing negotiations with the Winson Investment
tea m
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Council authorizes Exclusive Negotiation Agreement by December 2016
Developer provides earnest money deposit by December 2016
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Due diligence and feasibility analysis period � v January - April 2017 ���"
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Negotiate terms of and draft Disposition and
' Development Agreement (DDA) May - August 2017
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Approval and execution of DDA ��� ��� � September 2017
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