Unfinished parking garage to be demolished; apartments, retail and public parking planned
Kent, Wash. – September 21, 2011 – Revitalization of Kent’s downtown moved a step closer Tuesday night when the Kent City Council approved a lease/option agreement for its City Center property to Goodman Real Estate Inc. of Seattle.
Goodman, and its architect Studio Meng Strazzara, plan to construct a five story, mixed-use development consisting of approximately 164 urban style apartments with 3,700 square feet of retail space and 35 public parking spaces in addition to the parking set aside for residents.
The existing footprint of the city’s Town Square Plaza park will remain unchanged.
“This is forward progress towards our goal for the area,” said Council President Pro Tem Debbie Ranniger. “I can confidently say the community will be thrilled to see that eyesore removed. I am very hopeful that, with Goodman’s help, we will not only see a beautiful new building in its place, but also new and vibrant activity downtown that will benefit our community overall.”
Goodman Real Estate was selected as the preferred developer of the site following a competitive process and review by panel including Mayor Suzette Cooke, members of the City Council, a representative of the Kent Downtown Partnership and city staff.
“We have waited a long time for resolution on this key property in our downtown,” said Kurt Hanson, Kent’s Economic Development Manager. “The city’s first priority was to find a quality developer who is well capitalized and has a proven track record.”
According to Mike Miller, Kent Downtown Partnership Board member and Senior Vice President of Valley Bank, Goodman is a financially strong and successful developer. “The downtown community will benefit from this new and exciting project.”
Lease/Option Detailed
The two year lease provides Goodman Real Estate an option to purchase the City Center property at any time during the term of the lease. For consideration of the lease, Goodman will demolish the existing parking structure and pay $100,000 to the city. Upon exercising its option to purchase, Goodman will pay the city an additional $802,000 in two installments; the first being approximately $540,000 at closing and the balance, which is contingent upon project success, would be paid at a point after the project is built and fully leased.
Brad Reisinger from Goodman Real Estate explained the two-year lease option to the Council. “We understand demolition of the existing parking garage is a major priority for the city. The lease option structure allows us to take control of the site immediately and complete demolition this fall. Under a more traditional purchase and sale agreement, there would be an extended period until we closed on the real estate, thus delaying the start of demolition until after we had completed design, obtained permits and were ready to start construction.”
No downside for city
“Working with the Goodman team on the City Center project gives us the best opportunity to achieve what was originally envisioned for the redevelopment of the municipal lot block,” said Hanson. “With Town Square Plaza park complete, having an urban, mixed use development next door will strengthen the link between Kent Station and historic downtown. This much needed residential development will enliven the area and provide our downtown merchants with regular customers that don’t exist today.”
“Having the abandoned, partially built garage stand as an eyesore for so long has been tough for our local businesses and an impediment to recruiting new investment downtown. With this deal we are guaranteed that this eyesore will be removed quickly,” Hanson said.
Originally slated to be a 355-stall parking garage for a hotel, condominiums and retail space, work on the project stopped in May 2007 when the prior developer’s lender terminated the construction loan. After which, the property had been entangled in legal battles.
The city regained control of the property through foreclosure last October.
Further details about the site and proposed project can be found at www.KentCityCenter.com or by calling 253-856-5706.
