The city of Burien has settled its lawsuit with the former developer of the Burien Town Square project. A new company will take over the three parcels that have not been developed.
Burien City Council members approved the settlement 6-0 on June 17 without any comment. Councilmember Joan McGilton was absent.
Under the settlement agreement, RECP/UP will sell the parcels back to Burien or Legacy Partners, the new developer chosen by the city. RECP/UP, includes the developer Urban Ventures Burien and a capital partner that jointly own the properties.
Burien will pay the repurchase price of $2.6 million plus $100,000 for planning and design expenses incurred by RECP/UP over the past year plus an additional $575,846.
It has been a long path to the settlement. Urban Ventures, now RECP/UP, completed the first phase of the Burien Town Square condominiums in 2009. The national economic downturn, especially as related to housing, deeply slowed the condo sales. Four years later, the condos are about 55 percent sold.
The undeveloped parcels are to the north of the condos and Burien City Hall/Burien Library.
According to the development agreement, RECP/UP was required to start construction on the next phase by July, 21, 2011. When the developer did not meet the deadline, Burien officials exercised the right to repurchase the undeveloped properties.
The city and developer then entered into a standstill agreement to try to negotiate new terms. RECP/UP proposed high-end apartments instead of condominiums. However, the city and developer could not agree and Burien officials turned to Legacy Partners as the new developers.
RECP/UP refused to sell the properties to Legacy. The city sued and RECP/UP countersued.
The parties mediated the dispute on May 29th and agreed on the settlement agreement that was approved by the council.
“The city of Burien has engaged its community in a downtown master plan that will benefit the entire city,” Matthew Burton, managing principal for UP Burien said. “With time and the right fit, we believe the city can be successful.”
So that the parcels could go directly to Legacy, Burien lawmakers also amended Legacy’s purchase agreement to extend the closing date by up to 120 days. Legacy will also pay $150,000 of the increased purchase price and reimburse RECP/UP for the $100,000 in planning and design work along with the $2.6 million repurchase price.
Here is our previous coverage:
Press release:
On Tuesday, June 18, the City of Burien and RECP/UP Burien II LP, owner of three undeveloped parcels at Burien Town Square have reached a settlement agreement related to the sale of the three referred to as Town Square properties.
The undeveloped Town Square parcels are north of the current Town Square condominiums and Burien Library/City Hall between SW 152nd and SW 150th streets. RECP/UP Burien II LP includes the developer and a capital partner that jointly own the properties.
Under the settlement agreement, RECP/UP Burien II LP will sell the properties back to the City of Burien or a third party designated by the City of Burien. In addition, the City of Burien will reimburse RECAP/UP II LLP for planning and design expenses incurred by the owner/developer over the past year.
“The City of Burien has engaged its community in a downtown master plan that will benefit the entire city,” said Matthew Burton, managing principal for UP Burien II LLC. “With time and the right fit, we believe the City will be successful”
The settlement agreement was unanimously approved 6-0 by the Burien City Council on June 17, 2013.
