Item B: Joint Meeting with EWEB to Discuss Riverfront Property

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The value of the property is not easily determined. Recent commercial appraisals downtown have assumed values between $34 and $39 per square foot. However, the property is unique in downtown, and the value will be largely determined by the future use, as illustrated by an approved master plan. Master Planning Process and Timing Implications EWEB and City staff discussed a number of strategies for the redevelopment of the riverfront property, focusing on two key issues: 1) when the master planning process occurs and 2) when the property is declared surplus. Working together, staff from both organizations outlined four main strategies. The first strategy is preferred by EWEB and City staff. Strategy 1. Initiate Master Planning EWEB could initiate a master planning process that involves the City and the community. EWEB could declare the property surplus at any time during this process, such as after there is general agreement with the master plan concepts. The property would then be available for purchase to the City, as per the option language in the code, or to private developers, once the option period expires or the City waives its right to purchase. City and EWEB staff prefer this strategy as the development of a master plan allows the City and community to determine the desired redevelopment of the property prior to the City deciding whether or not to exercise the purchase option for all or any portion of the property available. The process also allows EWEB the time needed to determine the costs and benefits of relocating from their riverfront property to the Roosevelt site. Strategy 2. Select Developer/Purchaser EWEB could issue a Request for Qualifications (RFQ) to select a developer/purchaser of the riverfront property, with the understanding that after the property is declared surplus, the City will agree to forego the option to purchase. The selected developer/purchaser would lead the master planning process and complete the required land use applications. After the master plan is approved and the property is redesignated and rezoned, the developer/purchaser would acquire the property. Strategy 3. Declare Property as Surplus EWEB could forego the master planning process and declare the property as surplus. The City’s five-year option period would then begin. The City could a) buy the property and complete the necessary master plan and land use applications to redesignate, rezone and redevelop the site, b) decline to buy the site prior to the end of the option period, or c) let the option expire. If the City chose b or c, EWEB could make the site available for purchase by a private party. The timing of the master plan is less certain under this strategy, although it would still be required for sale and redevelopment. Strategy 4. Maintain Status Quo EWEB operation and administrative functions could remain on the riverfront. EWEB would then reinvest as needed in the existing buildings and infrastructure. The fourth strategy does not address the growing sentiment that EWEB's and the community's interest is best served by the relocation of the electric and water operations away from the riverfront, or the vision expressed in the Downtown Plan to connect downtown to the river. Instead, the strategy defers decisions about reinvesting on the riverfront or relocating to the Roosevelt site. Since EWEB currently owns the property, City and EWEB staff propose that EWEB initiate and manage the master planning process. In a December 2006memo to the EWEB Board, EWEB staff outlined a strategy to embrace the community interest in the project by creating a Riverfront Advisory Team as one L:\CMO\2007 Council Agendas\M070212\S070212B.doc