Calendar

Category All Art Classes Classical Music Concerts DANCE Etc Exhibits Families Farmers Markets Film Happenings Holiday Holiday Lectures Music (non-classical) Theater

Submit events

Acquisition costs for South Park increase to $4.26 million

By John Larson

Tacoma Weekly
jlarson@tacomaweekly.com
Published on: July 19, 2007

Joe Delaney and Mike Slevin are tasked with enticing owners of businesses and property on the ground floor of South Park Plaza to sell and move. Delaney, the city of Tacoma's finance director, and Slevin, an engineer with the Public Works Department, are working to clear out existing tenants so the city can move forward on a project with a developer to renovate the aging downtown parking garage, complete with 102 new stalls and 103,000 square feet of office space above.

While they are authorized to use the city's power of eminent domain, the hope is deals that are agreeable by both sides can be used for each property acquisition.

The initial appraised value for all properties was $2.66 million. An appraisal in April set it at $3.8 million, while another in May came up with a figure of $2.98 million.

Now, land acquisition costs have gone up from the original estimate of $2.66 million to $4.26 million.

"That was our exposure point, and that is where we got bit," Delaney said.

"The property acquisition is the trickiest part," Slevin acknowledged.

Property owners have the option of accepting money from the city to cover relocation costs, or allowing the city to guide them through the process of hiring moving vans and related services.

Delaney and Slevin delivered an update to Tacoma City Council during its July 17 study session.

The owner of South Park Café has reached an agreement for $445,000, plus $255,000 for relocation.

For Austin Chase Coffee, the owners reached an agreement with the city for $365,000 plus $240,000 in relocation costs.

The owner of Brodsky's Uniforms, as well as the owners of the Vale property at 1222 Pacific Ave. and the Robblee property between 1206-14 Pacific have ordered their own appraisals. Negotiations continue between city staff and all three parties. "They seem, for the most part, supportive," Slevin said.

Delaney wants to issue $9.6 million in bonds for the project. The council is expected to vote on issuing bonds July 31. Conference calls between city staff and the three major bond rating agencies – Fitch, Moody's and Standard & Poor's – are scheduled for July 30-31.

Story Tools

This Week's
Front Page