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BEFORE THE HEARING EXAMINER
FOR THE CITY OF RENTON
In the Matter of:
SOLERA MASTER PLAN,
A Master Plan, Preliminary Plat, Conditional
Use and Street Modification Decision
LUA-18-000490, SA-M, PP, CU-H, MOD
DECLARATION OF BONNIE GEERS
I, Bonnie Geers, declare:
1. I am Senior VP of Community Development for Quadrant Corporation. I am
competent to make this declaration based on my professional knowledge.
2. Quadrant Corporation is the applicant for the "Solera Project," a phased, mixed -use
project in the Sunset Highlands area of the City of Renton along NE Sunset Blvd. We understand
and support the City's mixed -use vision for the property, which the City has clearly and
consistently communicated to us in the 18-plus months we have been working with them on the
prof ect.
3. 1 believe we have established a good, cooperative working relationship with City
staff, but we have been unable to reach agreement on proposed "Condition 18," which relates to
project phasing.
McCullough Hill Leary. PS
701 Fifth Avenue, Suite 6600
DECLARATION OF BONNIE GEERS — 1 of 3 Seattle, Washington 98104
206.812.3388
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4. Condition #18 would prevent Quadrant from initiating construction on the
townhome component of the project until the concrete podium for the mixed -use building is
completed and passed inspection. Condition #18 wilI jeopardize the success of this project and
deter mixed -use developers from participating in it.
5. The first phase of townhome construction is anticipated to take 12 months, barring
unexpected issues impacting the construction timelines (which can always arise). After the
construction of the Phase I infrastructure, Quadrant would be prepared to initiate townhome
construction immediately. But under Condition #18, we cannot begin construction until the
concrete podium for the mixed -use building passes inspection (which is outside our control).
6. The City is saying this condition is necessary because it will provide the needed
assurances that the mixed -use component of the project will be constructed and not abandoned.
From our perspective, this condition is unnecessary, arbitrary, and extraordinarily burdensome.
This condition will prevent us from coordinating construction sequencing with our mixed -use
partner, it impairs our ability to control our own construction schedule, and it will delay
construction of a residential component that will make the mined -use component more viable.
Ultimately, it will interfere with market conditions, which ultimately dictate the project's success
or failure.
7. Alternatively, Condition #18 says we can begin construction when shoring walls
and excavation are completed for the mixed -use building, provided a cash set aside, letter of credit,
or assignment of funds for the entire cost of the mixed -use building (an estimated $75 - $90 million)
is provided. This is not a viable alternative.
8. Pete Nichols, Quadrant's VP of Acquisition, and/or I have personally discussed the
cash set aside and letter of credit concept with the following potential mixed -use partners: Legacy
McCullough Hill Leaa. PS
701 Fifth Avenue, Suite 6600
DECLARATION OF BONNIE LEERS — 2 of 3 Seattle, Washington 98104
206.812.3388
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Partners, Johnson Development Associates, Lennar, Bridge Housing, and Avalon Bay
Communitiespany. This list includes some of the largest, most well -financed developers in our
region. Every single one of them said they would be unwilling or unable to provide a cash set aside
for the mixed -use building while simultaneously proceeding with construction_ The City suggests
that such a requirement is "common" and "reasonable." To the contrary, none of the developers
listed above had ever heard of a city imposing such a requirement.
9. We have tried in good faith to negotiate a phasing condition we can live with that
would provide the City the assurances it needs. We have proposed a condition that would prevent
Quadrant from initiating the first townhome phase until a building permit for the first mixed -use
building is issued, which would require in excess of $1 million in design costs and fees to be paid
by the developer. Further, we have proposed that the second townhome phase may not begin until
the building permit for the second mixed -use building is issued, which would again require in
excess of $1 million in costs and fees. Finally, we would agree to a condition providing that
certificates of occupancy for the second townhome phase cannot be issued until the podium and
framing for the first mixed -use building have passed inspection. It is difficult to understand how
the City could need a higher level of assurance that its authority to withhold certificates of
occupancy for the townhomes if the mixed -use building is not sufficiently complete. From our
perspective, attempts to force a higher level of assurance are unnecessary, infeasible and
extraordinarily burdensome.
Executed this 18t' day of January, 2019, at
Bonnie Geers
DECLARATION OF BONNIE GEERS — 3 of 3
McCullough Hill LeaU. PS
701 Fifth revenue, Suite 6600
Seattle, Washington 98104
206.812.3388