After waiting nearly three years for a new developer to come forward, Kent City Council members voted unanimously earlier this month to give the mayor and city attorney authority to begin foreclosure proceedings on the unfinished parking garage at Fourth Avenue and West Smith Street.
City Attorney Tom Brubaker said since the original developer walked off the project, the property has been entangled in legal battles, according to a city media release. “The recession has further complicated matters by causing not only the original investors, but banks and title companies involved to face failures and become subject to mergers and takeovers, all cooling interest in the property.”
Originally planned to be a 350-stall parking garage with condominiums and retail space, Plan B Development of Bellevue stopped work on the project in May 2007 when its lender withheld funds.
While the city has never owned the project, it holds a first position deed of trust as a result of an agreement between the original developer and the city to maintain a minimum of 70 public parking spaces.
“Because of the realities of depressed commercial values in today’s real estate market, ironically, now may be the ideal time to exercise our interest in the property.” Brubaker said. “If no buyer appears to purchase the city’s interest during foreclosure, the city will own the property free and clear, with marketable title to the site.
“This property is the 50-yard line between Kent Station and the downtown Historic District, and that key geographic position poses some risk,” he added. “There’s always a risk associated with moving forward with the foreclosure process. If another party purchases our interest, we may get a development that doesn’t fit with your vision for downtown, or even worse—no development at all.”
Council President Jamie Perry said that starting foreclosure will either clear up title on the property, making way for the city to sell it, or perhaps cause a viable sale in the meantime.
“While I know staff has been working to spur development interest in the site, I’m ready to move forward,” Perry said. “We’ve waited long enough for a resolution on this key property in our downtown. I’m ready, and I’m certain our residents are ready for us to do something about this eyesore.”
Brubaker said it is unknown how long the foreclosure process will take.
“There are so many variables in play, but hopefully, within one to two years, we’ll see development again at that site,” he said.
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