SeaTac lawmakers vote to condemn parking lot
Sat, 09/26/2009
SeaTac lawmakers decided Sept. 22 to authorize the possible condemnation of a park 'n fly lot next to the SeaTac City Center/Sea-Tac Airport light rail station in order to build a public parking garage.
James and Doris Cassan have operated the rental car and parking facility at 17400 International Boulevard for almost 50 years.
The eminent domain action declares the property is needed for a public use and authorizes city attorney Mary Mirante Bartolo to file a petition for condemnation in King County Superior Court, if deemed necessary.
In testimony before the council, James Cassan said SeaTac officials have offered $8.6 million for the property. Cassan said the offer is about $2 million less than the Cassans paid for the property about two years ago when they converted a long-term lease into a full ownership interest.
Assistant City Manager Todd Cutts said the offer equals the property's appraised value.
Dennis Dunphy, an attorney for the Cassans, warned lawmakers that Washington state courts ban the condemnation of private property for economic development.
"We don't want to go into litigation with you folks," Cassan declared. ""It would cost both sides millions of dollars."
Cutts said city officials still hope to acquire the property without litigation. He noted that Holliday Inn, which owns two other parcels covered in the condemnation action, has not objected.
Other large businesses in the city center planning area support construction of a public parking facility, according to Cutts.
In 2007, Sound Transit condemned a portion of the Cassans' property at South 176th Street and International Boulevard for a kiss 'n-ride lot across from the city center/airport light rail station.
The Cassans shifted their base of operations to adjacent property that they previously had leased.
As part of the adjustment, they entered into a six-year development agreement with the city. The agreement allowed the Cassans to construct another entrance. The Cassans also offered to provide an interim kiss-n ride lot on their property.
"In the Agreement, the City committed clearly and explicitly, to provide us with a 6-year window...to evaluate redevelopment of the property for a broad combination of uses, including hotel, mixed use, parking structure and retail...." Cassan testified. "The agreement by its terms is explicitly subject to the necessary judgments as to economic feasibility and market conditions."
Councilman Chris Wythe confronted Cassan, saying that the only proposals the Cassans put forward involved a park 'n fly facility with a hotel on the upper floors.
The council did not endorse that proposal, Wythe noted.
"We have a desire for our citizens to drive through a city with more than just park 'n flys," Wythe declared. "We want a city with services for our citizens; that has a center they expect. We go elsewhere now.
"We have gotten nowhere. Do we fail to act because we fear litigation or do we take action?" Wythe added. "We know there are risks but the benefits outweigh the risks."
Cutts told lawmakers the city's station area plan could generate an additional $2.1 million a year in city revenue and create more than 2,700 jobs.
The city plans include a 1,000-space public parking garage on the Cassan property.
In his testimony, Cassan sought to counter claims that the Cassans are risk adverse and lack development experience.
"We are not risk adverse. But we are not imprudent," Cassan said. "Where have the Staff been while Washington Mutual collapsed? While Wall Street imploded? And while the ability of developers to obtain capital and loans have gone into deep-freeze?"
Cassan added that that he and his wife put together a Mercer Island mixed-use development that won an award as best mid-rise development of the year.
Deputy Mayor Gene Fisher said he was conflicted about his vote but he wanted to arm the staff with the necessary tools to go forward with economic development.
Councilman Tony Anderson was the only lawmaker to vote against the condemnation. Councilwoman Terry Anderson was absent.
Tony Anderson urged the council to delay action until after the November general election when "the face of the council will become more clear."
Michael Kovaks is running against Tony Anderson while Pam Fernald is opposing appointed- councilman Barry Ladenburg.
Planning Commission chairman Rick Forschler is running against Jonathan Standbridge to replace Wythe, who is not seeking re-election.
Kovaks, Fernald and Forschler are coordinating their campaigns.