Council PKT 08-25-2009 Special
,~ Federal Way
AGENDA
FEDERAL WAY CITY COUNCIL
SPECIAL MEETING
Council Chambers - City Hall
AUGUST 25,2009
7:00 PM
(OR IMMEDIA TEL Y FOLLOWING THE FEDRAC MEETING)
www.cityoffederalway.com
1. CALL MEETING TO ORDER
2. COUNCIL BUSINESS
Discussion of United Properties' Proposal to Extend the Purchase and Sale Agreement on
Former AMC Theaters Site and Future Use of the Former AMC Theaters Site.
3. EXECUTIVE SESSION
Potential Litigation Pursuant to RCW 42.30.110(1 )(i)
4. ADJOURNMENT
~
CITY OF ~
Federal Way
CITY OF FEDERAL WAY
MEMORANDUM
Date:
To:
From:
Subject:
August 18, 2009
City councilm~s
Patrick Dohe, ' n ic Development Director
United Prope. es' Request for Contract Extension in order to Negotiate New
Contract for Public-Private Partnership with PACe
Attached you will find a letter from United Properties, dated 8/14/09, outlining their proposal
to extend the current contract until 2/11110 for the purposes of negotiating a new contract
regarding the concept of a redesigned public-private partnership to contain the Performing
Arts and Conference Center (P ACC), public open space, and associated .private
codevelopment (such as hotel, restaurant, retail and residential).
You may recall that the current contract expires on 9/11109, at which time a check in the
amount of $150,000, currently in escrow, plus accrued interest, is owing to the City to cover
our carrying costs over the past year. United Properties recognizes this and mentions this in
their letter.
Points of negotiation during the extension period would cover such items as:
. Conceptual lay-out of the overall public-private codevelopment plan;
. Resulting private site area to be subdivided and acquired by United Properties;
. Cost sharing on any mutually beneficial improvements and amenities, such as parking,
right-of-way improvements, open space, etc.;
. Time frames for new agreement, property purchase, etc.
There is no specific proposal contained in this letter; rather a proposed timeframe during
which a redevelopment proposal would be developed.
According to City Attorney Pat Richardson, this request does not meet the criteria for an
Executive Session discussion. For this reason, if you wish to deliberate about this request,
you should do so in an open, public meeting. Given that both Mayor Dovey and '
Councilmember Ferrell will be absent from your next City Council meeting, on 9/1109, you
may wish to discuss this at a Special Meeting, such as before/after either the upcoming
FEDRAC meeting on 8/25/09 or the upcoming PRHS&PSC meeting on 9/8/09.
If you have any questions or would like to discuss this further, please do not hesitate to Brian
Wilson, Pat Richardson or me at any time. .
*
UNITED PROPERTIFS LID
August 14, 2009
City of Federal Way
33325 8th Avenue South
Federal Way, W A 98003
Attention:
Patrick Doherty. Economic Development Director
Dear Sirs:
Re: Former AMC Site. City of Federal Way - Symphony Development
Further to the Property Purchase and Sale Agreement with respect to the above-mentioned
property, United Properties is requesting an extension to the Closing Date from September 11,
2009 to February 11,2010.
United Properties has invested a substantial amount of time and pre-development costs
associated with this development. Unfortunately, due to the prevailing economic conditions
beyond our control, we are requesting additional time to allow for the improvement of the
housing market.
It is our understanding that the City of Federal Way is interested in developing a Performing Arts
and Conference Center (P ACC) in the City Center, and we believe that this site is a top candidate
to be the potential location for the P ACC. We also believe the best scenario would be a public-
private partnership for developing the site that would incorporate the P ACC and public space on
a portion of the site, leaving the remainder of the site for private development for such uses as
residential, commercial, hotel.
We are requesting the extension to accomplish the following:
1) To negotiate at public / private partnership to co-develop the site,
2) To finalize a subdivision site plan,
3) To determine the pro-rated value for the land attributed to private development site,
4) To conduct further feasibility and economic studies,
5) To determine any cost sharing agreements for infrastructure, off-site parking access and
other construction requirements
6) To determine the timeframe for purchasing the private development site,
7) To finalize a new purchase and sale agreement.
Suite 550-2608 Granville Street, Vancouver, B.C., V6H 3V3 Phone: 604.736.3864 Fax: 604.736.3811
City of Federal Way
August 11, 2009
Page 2
To demonstrate our good faith, United Properties is prepared to release to the City of Federal
Way, the deposit of $150,000 presently held in escrow securing the previous extension granted
by the City to September 11, 2009. As we will be investing further pre-development costs, at
this time we are not prepared to deposit further monies for this extension.
United Properties would like to reassure the city that we remain dedicated in our commitment to
develop this site. We look forward to the agreement with Staff and Council to our request for a
further extension to the closing date of the transaction.
Very truly yours,
PROPERTIES (SYMPHONY) LLC