Federal Way announced last week that it has added another large piece of property to help realize its downtown revitalization goals.
Mr. and Mrs. Andrew C. Cratsenberg Sr. and the city have negotiated an agreement that will transfer ownership of the 4.4 acre former AMC Theater site in downtown Federal Way to the city for $4.1 million.
The property, located at 31600 20th Avenue South and adjacent to the new Federal Way Transit Center, is considered an excellent candidate for redevelopment. The building and parking lot are currently vacant.
The agreement is the result of several months of conversations between Andrew Cratsenberg and Assistant City Manager Derek Matheson.
The Federal Way City Council must approve the agreement at its November 7 meeting.
The city plans to use a competitive public process to select a company that will redevelop the site as a mixed-use, multi-story urban project consistent with the City Council's downtown vision.
"Now that I've reached my 80th birthday, it's time for the next generation to take over and redevelop our city, said Mr. Cratsenberg, a long-time property owner, land developer, and civic leader in Federal Way.
"My wife and I look forward to a project on the theatre site that enhances our Center Plaza property and creates an enduring legacy for our children and grandchildren."
"We have received approximately 15 offers for our property, some at more than $4.1 million," he added. "However, we believe it is in the best interests of the Federal Way community and our family to sell the property to the city,"
"This is a big step forward for Federal Way's economic development program. It will allow our city to compete effectively with other cities for exciting redevelopment projects," added Matheson. He cited Kent Station as an example of a redevelopment project that is feasible in downtown Federal Way.
The agreement requires the city to use its best efforts to include Highline Community College in any redevelopment project. The Cratsenbergs have supported public education for many years and hope to see a Highline facility on the property.
The city will obtain short-term financing to purchase the property and will make the annual principal and interest payments with investment earnings from its City Center Redevelopment Fund.
The City Council established the $5 million Redevelopment Fund in 2005 to pay for public elements of private redevelopment projects that are consistent with the city's vision.
