Revisiting SoDo Land Purchases, Property Tax Bills

 Finance, Property  Comments Off on Revisiting SoDo Land Purchases, Property Tax Bills
Jun 072017
 

SoDo Land Purchases Locked Hansen In On Site, Created Street Vacation Requirement

One way that Hansen was able to focus his efforts in SoDo, on a tract of land that required a street vacation to construct an arena, was by buying the land for the arena and plenty of land from his neighbors.  My recent trip through the public records indicates WSA properties is paying about $786k in property tax bills each year on executed land purchases of approximately $122M in total.  Note:  This tally leaves out the Dream Girls establishment and the Mariner’s lot indicated in yellow in the picture from the King County Parcel Viewer.

SoDo land plats with Arena site circled and WSA properties/Hansen purchased land in blue, Mariner’s lot highlighted in yellow.

The current list of sites purchased by Hansen under various WSA Properties LLCs is below, proceeding counterclockwise from the highlighted Mariner’s lot.  The address and last 4 digits of the parcel number, Hansen/WSA’s purchase date, the purchase price (or currently assessed value if indicated with a ~), and the annual property tax bill for that property.

North of Arena block

1500 1st Ave S - 6430   not sold m  ~$4.3M      
1518 1st Ave S - 6440   10/2016      $25M      $82,540
1526 1st Ave S - 6445   10/2016      included  $14,490
1530 1st Ave S - 6450   not sold dg ~$3.9M
1534 1st Ave S - 6455   4/2012       $4.3M     $32,198
1548 1st Ave S - 6460   5/2012       $9.5M     $18,325
1556 1st Ave S - 6465   5/2012       included  $38,027

West Half of Arena

1700 1st Ave S - 6400   8/2012       $8M       $37,561
1714 1st Ave S - 6405   7/2012       $5.6M     $16,110
17XX 1st Ave S - 6410   7/2012       included  $32,188
1730 1st Ave S - 6415   9/2012       $1.7M     $16,110
1740 1st Ave S - 6417   4/2013       $9M       $20,132
1746 1st Ave S - 6420   4/2013       included  $20,123
1760 1st Ave S - 6425   4/2013       included  $40,242

West of 1st Ave

1757 1st Ave S - 7110   12/2012      $1.8M     $18,012
1915 1st Ave S - 7135   9/2012       $3.2M     $23,006

South of Arena (garage)

2228 Occidental - 6125  9/2016      $32M       $17,428
1900 Occidental - 6115  9/2016      included   $124,064

East Half of Arena

1750 Occidental - 6285  12/2011     $22M       $237,986

note: fixed links that were to .gov are now .com

KeyArena vs SoDo Site Size – Revisited

 Property  Comments Off on KeyArena vs SoDo Site Size – Revisited
May 212017
 

Early in this process, an examination of the proposed arena site in SoDo was done through google maps and scale overlays of other, existing arenas.  The zoom feature and dimensions bar in Google Maps was used to scale pictures appropriately, but it was an imprecise methodology.  With the recent KeyArena proposals and continued submissions of SoDo arena documents, we have some professionally sourced dimensions available in public documents and can revisit the SoDo site size compared to what’s available at KeyArena.

The ArenaCo property is outlined in red. KeyArena was automatically at the same scale and easily overlaid. Transparency enabled so you can see the red property lines.

KeyArena Size (Roof = 408 x 408 ft)

The AEG/Seattle Partners sketches include dimensions of the roof of KeyArena (“83% of the existing 166,400 square feet of roof area is being maintained”), which reduces to 408 linear feet on each side if we assume a simple 2D square.  The exterior dimensions of KeyArena could be smaller if AEG calculated square feet along the inclined roof surface.

SoDo Arena Size (357 x 515 (W end) or 695 ft (E end))

In the SoDo arena, we have street vacation requests that include surveys of the area.  The rough dimensions of Hansen’s arena footprint is on land that is 398 ft by ~680 / 710 ft.  The SoDo proposal (big pdf) constructs a 32.8 ft wide access road on the East side of the site and has a 8.4 ft setback from the 100 ft width of 1st Ave S, which leaves a SoDo arena building that’s 356.8 ft wide.  The land has quite a bit more space in the North-South direction, which is used to construct the NBA team’s practice facility on a four-level parking garage on the Northeast corner.  There is also a section of S Massachusetts St that gets included in the street vacation.

Survey shows dimensions of SoDo land available to build on.

SoDo Arena dimensions from Street Vacation Application

Ultimately, this confirms that the KeyArena site was not too small for an arena, even a modern arena, when you get a little more space outside the old roofline.  The OVG proposal for KeyArena includes an atrium area and parking garage built off the South end of KeyArena.  The Seattle Partners/AEG proposal involves underground excavation, the south end of the roof being extended, and the whole seating bowl being adjusted so it no longer sits centered under the apex of the KeyArena roof.

OVG creates more above-ground structure to the South and links them through an atrium

The Seattle Partners plan for KeyArena involves extensions underground and to the South with the old roof offset from the new seating bowl

KeyArena Rebuild RFPs Are In

 Other Arenas, Property  Comments Off on KeyArena Rebuild RFPs Are In
May 012017
 

KeyArena RFP Responses

The KeyArena RFP announced by Ed Murray back in October 2016 has had more detailed, although still annotated as “redacted for public,” responses.  The AEG/Seattle Partners response is a 6 page executive summary and a 690 page full proposal pdf that includes letters of support from other NBA team owners.  The Oak View Group has submitted a 3 page executive summary and a 108 page proposal.  This is going to take some time to comb through, so I’ll add more details when time permits.  I added the Key RFP page to the list of links above.

King5 has a story that summarizes some details of the proposals, which can give you some inspiration on what to look out for.

Hansen Re-submits Street Vacation Petition for SoDo Arena

 Property  Comments Off on Hansen Re-submits Street Vacation Petition for SoDo Arena
Feb 232017
 

Following a lot of media blitz about local hero Russell Wilson joining the ArenaCo team and public pitches for an “all private” financing model that still includes significant tax breaks, Hansen announced the intention to re-submit the street vacation request for Occidental Ave South.  That petition (pdf) is now on-line contained in Clerk File 314369 .

 

The petition specifies an additional $1.3 million tentatively allocated to SDOT freight mobility projects including various planning projects and some smart signs related to railroad-based delays.

A Contribution of an additional $1.3 million to SDOT to implement the following 2016 Freight Master Plan projects (or other freight-related projects, at SDOT’s discretion):
  • Spokane Street Freight-Only Lanes Pilot Project, Phase I (FMP Project #24)
  • Railroad Crossing Delay Intelligent Transportation System (FMP Project #28)
  • 1st Avenue S./S. Atlantic St. Freight Improvements (FMP Project #37)

What other changes are included/excluded will require a bit more digging as this is a street vacation petition and not a full outline of the new, privately-built arena proposal.  The MOU being “thrown out” in bulk but aspects being retained leaves some gaps related to 1) the KeyArena use agreement that was in the MOU and included renovation funds based on early tax collections is now gone, 2) the MOU’s provisions for team non-relocate agreements is also gone (while owning the team and the arena might be good private motivation, team values could eventually rise enough to outweigh taking a loss on their old arena’s value with no primary tenant), and 3) various provisions related to Hansen/the investor’s financial security/maintaining a $300 million net worth are gone (something Geoff Baker’s recent Seattle Times piece outlining Valiant Capital Partners’ recent losses and opening up for new investors highlights).

The Seattle City Council has no planned meetings related to the street vacation petition.  Mayor Ed Murray has already said that the focus is on evaluating the KeyArena RFP proposals due in April 2017 before spending time considering SoDo again.

May 022016
 

Videos will be posted later and we can all enjoy hearing councilmembers parade their personality today (be that Bruce’s sports phrase usage, Gonzales’ groaning at said sports phrases, Juarez’s talk of dams, or Johnson’s suggestion that 30% of the city is used for roads, as if a city can function with only 10′ footpaths and bus lanes).

Short summary – O’Brien, Burgess, Harrell, and Johnson voted in favor of the street vacation and Sawant, Herbold, Gonzales, Juarez, and Bagshaw voted against the street vacation.  There were many amendments and clarifications stated (including that a privately financed arena could be built to the terms of the MOU, excluding all those bits about public financing).  Interestingly, the Sonics Rising council vote live thread had a poll predicting the “yes” votes from the council which, at the start of the council meeting, had a tie between 4 and 5 (failing and passing), suggesting many knew all too well that the knife was being readied (insert GIF of proud new pappa Roose Bolton behind shived by “bastard” Ramsey Bolton).

Screencap from shortly after the full council vote concluded.

Screencap from shortly after the full council vote concluded.

In any event, now Hansen has to consider applying again?, changing his preferred site, or how he’ll design a privately financed arena with a public right of way running through the middle of it.  The location in SoDo requiring a street vacation has been something Hansen was pretty well set on, to the point of acquiring properties long before the MOU was even approved.  The current function of Occidental is why Hansen’s group carved a new North-South access road to the East of the arena.  It’s also a part of why the EIS’s site selection was somewhat lacking, it didn’t really give much imagination to using street-vacation-required parcels.  In many respects, this is the city council’s procedural way to escape this roller-coaster they’ve been on for years, particularly with a Nov 2017 expiration date functioning not so much as a deadline but being a harbinger of MOU re-negotiations/extensions.

Of course, Hansen does still own (or have options on) a bunch of land in SoDo, so he could still build LA Live-like attractions or parking garages or new commercial spaces like TV studios, if they pencil out.

Edit:  Video from the Seattle Channel has been posted.  The council takes up the street vacation at 1:12:15.

Street Vacation Documents Show the Evolving SoDo Arena Design

 Property  Comments Off on Street Vacation Documents Show the Evolving SoDo Arena Design
Apr 202016
 

One of the screwy things in the early “jet turbine” arena designs was the way that the south end of the Mariners’ parking garage was going to be accessed, via a tunnel cut out of the building and masked behind a “green wall.”  This would be an ~20 ft notch cut into the base of the arena.  March 2013 Vacation Petition

Tunnel design from the March 2013 street vacation petition

Tunnel design from the March 2013 street vacation petition

More recent documents show the access tunnel was no longer a tunnel, instead being a roadway external to the building but still west of the single set of railroad tracks along the west end of BNSF’s property (here is a google street view of the area with tracks).  April 19, 2016 presentation (note that earlier 2016 presentations to the council’s sustainability and transportation committee have similar sketches)

Access road now external to building in April 19 2016 vacation presentation.

Access road now external to building in April 19 2016 vacation presentation.

A view from the east in the same April 19 presentation.

A view from the east in the same April 19 presentation.

At some point, should the council be concerned about the original street vacation petition (long delayed by Hansen’s own actions) not being consistent with the current arena design?  Is the access road, as unobstructed as presented here, a defined requirement of the vacation (I don’t see any bullets suggesting that) ?

Fourth Arena Hearing On 4/19 and Materials/Amendments Are Online

 Finance, PR Campaign, Property  Comments Off on Fourth Arena Hearing On 4/19 and Materials/Amendments Are Online
Apr 142016
 

The last (third or second, depending on how you count the evening comment period) meeting for the Occidental Street Vacation for the proposed arena had several amendments proposed, including reducing the street vacation’s timeframe to 5 years and adding language meant to emphasize arena-contingent conditional approval.

 

April 19th at 2PM is the next regularly scheduled committee meeting, where the street vacation could be forwarded to a full council.  Materials have been posted online for that presentation.

 

Edit:  Seattle Bike Blog is advocating for protected bike lanes on 1st avenue, instigated by the arena.

Sonics Rising is trying to muck-rake a comparison of Port aviation vs seaport operations and tries to stir public anger over the port pledging its taxing authority to contribute to the viaduct replacement, as if that contribution wasn’t a “business as usual” ask by the government to fund projects from local taxpayers without going through a public vote/levy.  In this case, the port’s contribution of “up to $300 million” was to help plug the gap left by the state lowering the toll threshold from $400 million to 200 million.

Third Arena Street Vacation Hearing Held – Video Up

 Property  Comments Off on Third Arena Street Vacation Hearing Held – Video Up
Apr 082016
 

The Sustainability and Transportation Committee held the third meeting on the WSA Properties petition to vacate Occidental Avenue to make way for Hansen’s sports arena.  The video of the meeting starts with some public comments from politicians and leaders from the Port of Seattle and some Save Our Sonics leaders too.  The SDOT part is at 42:45 and then the Port of Seattle’s consultant, Marnie Hughes? starts at the 2 hour mark.  Councilmembers O’Brien, Johnson, Juarez, Burgess, and Harrell were in attendance (only O’Brien and Johnson are assigned to the committee, Sawant and Herbold (alternate) were both absent).

Harrell took a bit of umbrage at the Port’s legal council’s suggestion of legal challenges and Marnie dropped the hot potato of making the council consider potential future use of the right of way that’s being vacated.  Johnson veered off for a bit to discuss tolling nearby freeways and seemed to wish to have a public forum to suggest tolling I-90 would benefit Port traffic predictability.  Marnie points out that the plan has changed a bit from how it’s initially presented, such that a  new parking garage is now directly south of the arena which wasn’t previously accounted for.