Riverfront offer could double

The Everett City Council will vote tonight on a resolution to sell a developer more land for a project along the Snohomish River.
By David ChircopHerald Writer

A major San Diego developer wants to buy twice as much land along the Snohomish River as it was first offered. Everett's original proposal called for selling 100 acres of developable riverfront property on a former mill and city dump site to OliverMcMillan two years ago. That offer may now grow to 200 acres.

"Rather than patchwork redevelopment, it made more sense to take the entire district," said Council President Brenda Stonecipher. The City Council is scheduled to vote tonight on a resolution that would place the increased offer on the bargaining table. Controlling adjacent wetlands and other properties will give the developer assurances that the way neighboring lands are used is compatible with its plans. It also will give OliverMcMillan more leverage to plan and develop the property, Stonecipher said.

If built, the project could include up to 1,500 houses and apartments, 1.2 million square feet of commercial space and a 150,000-square-foot hotel, according to plans released in October.
The figures translate to a shopping and office complex roughly the size of 1.3-million-square-foot Bellevue Square that would be sandwiched between I-5 and the Snohomish River.
The changes before the council tonight would deem the sale of environmentally sensitive wetlands, the Everett Animal Shelter's property and a public works facility "in the best interest of the city."

The agreement also states that the city will not sell the property for less than 90 percent of its appraised value. The city recently hired Allen Brackett Shedd, a Bellevue real estate appraisal firm, for $50,000 to determine the value of the property. City engineer Dave Davis said appraisals should be completed soon. City officials say selling the added acreage wouldn't do away with plans for a mix of open space, public trails, shoreline access and retail and residential developments.

"It isn't really any change in the concept of the project," said City Councilman Drew Nielsen.
The sale of the property will be contingent on conditions and requirements set by the city, he said. The city signed a contract worth $370,000 with Seattle-based Heartland LLC, a real estate consulting and investment firm, for help with the complex land deal. Jim Reinhardsen, the company's owner and managing director, serves as the city's contract project manager for the development. He has been paid $250,000 for the work to date.

How much the city is willing to spend on building roads, sewer lines and other public improvements hasn't been discussed publicly. Everett has spent $48.2 million in city, state and federal funds on the properties since 1991, according to the city's spokeswoman. That includes the cost of buying land, environmental cleanup, construction of the 41st Street overpass and numerous studies.

In late October, the city and the state Department of Ecology agreed to share $200,000 in remaining environmental cleanup work required on the former landfill site.
That includes testing groundwater for contaminants such as arsenic and monitoring methane gas levels along the 41st Street overpass.

After missing a May deadline to close the deal, the council extended talks with the developer to Jan. 31. Negotiations with the developer include determining who will be responsible for preserving wetlands, maintaining trails and keeping up public amenities, City Councilman Mark Olson said.

"There are a lot of issues down there," he said. "The city is not interested in just selling all of the land and walking away."

Reporter David Chircop: 425-339-3429 or chircop@heraldnet.com