Earlier this month on Feb. 3 the Salmon Bay Aerie of the Fraternal Order of Eagles (F.O.E.) voted in a 211-78 vote favoring to sell their commercial property (5244 Leary Ave. N.W. where Elite Auto Care Inc. is currently located) to Eagles member and owner of Olympic Athletic Club (OAC), James Riggle.
The sale is a contentious issue among some Eagles members.
Riggle has been called “shady” because the OAC offered to pay the Eagles’ membership dues for OAC members before the Feb. 6 vote that determined Riggle would buy the property. A flyer circulated in the OAC stated that the OAC plans to construct a 400-unit parking garage at the site. It mentions the Eagles’ democratic process and how one needs to be a member to vote. The OAC promised a “special party” at the Ballard Hotel (owned by Riggle and catered by Stoneburner with a raffle and live music) after the final Feb. 6 vote as a “special ‘Thank you!’ to everyone who made the effort to make it possible to solve the parking problem!” The OAC collected many members who – according to the results of the vote – favored “solving the parking problem.”
What the flyer didn’t state:
The OAC “invitation” to join the Eagles doesn’t mention that the planned “public” 400-unit parking structure would not only provide parking for OAC members, but also provide parking for Eagles’ members at the rate of $1 an hour (same as OAC member who do not use the club) and would not limit the number of stalls used by Eagles – all stated in the addendum to purchase and sale agreement.
It also didn’t mention that OAC is planning to replace the OAC annex on Leary Way N.W – directly across from the Eagle’s commercial property – with a 63-room hotel with 38 spaces for parking. According to the OAC website they currently offer five free parking spots at the OAC and additional parking in a three level parking garage attached to Hotel Ballard. The project is in the public comment phase with the Department of Planning and Development. http://www.ballardnewstribune.com/2016/02/03/news/olympic-athletic-club…
The Vote
At the meeting there was standing room only with hundreds of members there to vote on the decision to sell. At least 80 of them were just initiated on Wednesday Feb. 3.
Early in the meeting Eagles Worthy Chaplain, Andy Larson, made a motion to suspend the vote until a later date. He brought documentation that he thought showed why his motion was legitimate and within the rules of the club.
Eagles officers called the motion “out of order.”
Larson resigned. Members applauded him as he left the room.
After that the meeting went on for two hours. Officials read a Trustee Committee Report that explained the reasons why they favored the sale. They also read the addendum to purchase and sale agreement, which was signed by Riggle. Eagles officials assured members that the sale of the property would help stabilize the club’s financial viability and allow improvements to be made to the aerie. Furthermore, according to officials, Salmon Bay lost their charter for financial complications and the assets from the sale will help them get their charter back. Also the property was the former site of a gas station and is contaminated; officials said the sale would relieve the club of any liability associated with cleaning up the site.
However, many members argued that they were already mostly cleared of responsibility of the site because Chevron, the company that absorbed the former owner of the gas station, has made an agreement to reimburse the Eagles for clean up cost.
In addition, many members asked why the Eagles did not have an attorney overseeing the deal before they agreed to sell.
Others questioned the ethical nature of the OAC buying Eagles’ memberships.
An official sent from the Grand Aerie to be a “silent observer” explained that the OAC paying the dues of new members who happened to be OAC members or OAC employees was ethically sound. He said it was the same as Eagles members paying the dues of their children.
Some members walked out in frustration.
One member reminded the throng of Eagles that the OAC had been sued in 2011 for attempting to void lifetime OAC membership contracts when it changed names on their business license but retained the same governance (Olympic Racquet and Health Club to Sewanee, Inc). The member questioned if the OAC would make good in providing parking for Eagles members in the future and whether a 400-unit parking garage would even come to fruition. Riggle was in the room for the meeting. He did not have a chance to respond to the statements.
So what led up to all this?
Last year the OAC made F.O.E a $2.4 million offer for the property. The Eagles formed an eight-person real estate committee to make a recommendation. They recommended not selling. However, their decision was overturned for lack of “due diligence” and a new, smaller committee was formed. They recommended selling.
On Dec. 16 the motion to put the decision up for a member vote was made. Eagles members report that the night of meeting, 50 new members who were affiliated with the OAC gathered in the room. They were there to vote in favor of the sale. F.O.E. members allege the OAC group front-loaded the vote in order for it to pass.
Former President, James Forgette, and Worthy Chaplain, Andy Larson, opposed the sale. At a recent meeting, members who also opposed the sale attempted something similar as the OAC and loaded the room with new members aiming to vote on a motion to table the Feb. 6 vote until they obtained an attorney to oversee the deal. Andy Kollar – an Eagle sent by the Grand Aerie to straighten Salmon Bay Eagles finances and who has authority over the president – determined the motion was out of order.
Forgette suspended, Riggle votes on his own deal
That meeting happened the same week The Seattle Times broke the story and Eagles members started discussing the issue with the media. In the F.O.E there are implications for speaking about Eagle’s affairs.
Forgette was removed from his presidency. He is not eligible to run for presidency for three election cycles. He was also suspended for 90 days.
Also, at least two other members who happened to be the most vocal in opposing the sale have been suspended for 90 days.
Eagles officials would not comment on the reason for their suspension but referred to a letter sent to each suspended member from the Aerie. Their reasons for suspension were vague but listed “conduct unbecoming of an Eagle.”
According to Forgette, the suspensions meant they could not attend the Feb. 6, 2016 vote.
Both Forgette and Riggle discussed the sale and each other to the media, yet Riggle has not been suspended from the F.O.E.
Also, though they had a financial interest in the sale decision Riggle and OAC affiliates, including the general manager of the OAC, Mark Durall, were allowed to vote.
The Ballard News-Tribune – who joined the Eagles to cover this story – has been threatened with suspension by Eagles Officials for discussing F.O.E affairs.
Read the BNT for more coverage of this story as it develops.
