Item A: Joint Work Session with EWEB Board

Home Browse Search

options for a City-managed master plan process and a co-managed master plan process, both of which are collaborative with EWEB. Each of the issues is considered separately below. Although EWEB Commissioners did not take formal action on February 12, they expressed support for a collaborative process completed in a timely way but expressed concern with a City led or co-managed process. EWEB Commissioners met subsequent to the February 12 meeting, both in executive session and at a special board meeting on May 8, 2007, to discuss possible elements and opportunities for collaboration on a master planning process. An outline of a proposed process was unanimously approved at that meeting and is included as Attachment B. The outline includes edits made by EWEB staff based on board comments. The policy issues surrounding the redevelopment of the EWEB riverfront property are complex. Staff has focused on three of the most critical issues that require policy direction and resolution. These are: 1.Declaration of surplus and decision to sell (EWEB); 2.Acquisition of EWEB Property (City); and 3.Master planning process (City and EWEB). The issues are discussed below. Based on City Council and EWEB Board direction, EWEB and City staff will draft a detailed MOU to outline the steps involved in the disposition and redevelopment of the riverfront property. The outline would be the basis of a subsequent joint meeting between the board and council. While EWEB and the City serve much of the same constituencies, the goals of the two organizations in relation to the EWEB riverfront property are not likely to be completely aligned. The MOU will need to clarify the issues and provide options for resolution. 1. Declaration of Surplus and Decision to Sell EWEB has sole authority to determine whether to sell, the portions of property to sell, and the timing for declaring the property surplus. A declaration of surplus can be made by a majority vote of the board to approve a resolution declaring a parcel surplus and to authorize the General Manager to begin disposal of the property. EWEB must then offer the City the first opportunity to acquire the property for “other municipal purposes.” The price for the property will be determined by EWEB. The price could be based on an appraisal of the property using assumptions about the future use and value. EWEB has stated that the purpose of selling the property is to generate funds for the relocation of utility operations to the Roosevelt site, and is not likely to declare that any of the property is for sale until after financing for relocation is secured. EWEB Commissioners and staff have also expressed concern that a master plan may not result in land use and development scenarios of adequate property value to cover relocation. EWEB can decide not to sell, establish a different price, or qualify the master plan prior to submitting it for City approval. 2. City Acquisition of EWEB Property After EWEB declares the property available for sale and establishes a price for the property, the City has two main options: to request negotiations or to not request negotiations. If the City wants to acquire the property, the City Manager must request negotiations within 30 days of initial notification from EWEB. The City Manager and the EWEB General Manager could then negotiate an agreement to compensate EWEB for the property. The City would need to undertake a good faith effort towards negotiating a price for the actual purchase of the property. The master planning process could also begin at that time, if it is not already underway. Unless the language in the Downtown Plan and the Land Use Code is revised, the City could not close on the purchase prior to the approval of a master plan, since the lot line L:\CMO\2007 Council Agendas\M070530\S070530A.doc