Chuckanut Ridge: Good Deal, Bad Deal?
Permalink +Sun, Sep 25, 2011, 11:59 pm // Tip Johnson
For thirty years the City has created an expensive problem by adopting and defending inappropriate zoning for Chuckanut Ridge. It was adopted without any of the reviews and notifications that normally precede this exercise of police power. No one except a few realtors, the owners, and maybe a couple attorneys knew about it for years. And it wasn't the only such zoning secret. Such anomalies would gradually prove poisonous to the public trust in City planning that had been painstakingly built during the evolution of the first Comprehensive Plan and it's neighborhood approach.
When a project was proposed fifteen years later, the community first learned the awful fact of the zoning. A property the CIty had recently appraised at slightly over $3M suddenly boasted an asking price of over $20M. Developers taunted, "We bought density." The huge increase was based solely on zoning termed "a mystery at best" by one of the City's lead planners at the time.
CItizens and neighbors rose to the challenge. They passed levies in hopes of acquiring the property, to no avail. A battle of locally epic proportion was waged while the City, inexplicably, advantaged the project at every turn. At great expense to themselves, citizens defeated the project - almost twice - except it finally defeated itself. Environmental review showed it unfeasible and the economy turned. The City finally had an opportunity and took it. They paid a high price - a fitting end for having created the phantom value. Now, how can we learn from it?
Today the City considers selling parts of this property to pay off value that never should have existed. With all due respect, it's a foolhardy aim. Just review the DEIS. Should the City tread the development quagmire that took down one of Bellingham's most established developers and a bank?
I made the same mistake. I theoretically parceled out 15 acres along Chuckanut Drive to consider for development - development in close proximity to services, in keeping with neighborhood character, not overburdening the bridge, not compromising school safety or emergency access. I considered 20 or so prime southside lots that might fetch nearly $4M, if they could be marketed. Then I overlaid the topography and wetlands. Less than half these units could actually be placed. I looked at how to get the rest. The same tar pit that plagued the owners prevailed. You can't punch roads without compromising wetlands. Wooded hilltops, sensitive slopes, and critical habitat must be compromised - all contrary to existing policies.
Yet, abstractly, the model has merit. The City should be able to buy strategic properties for public purposes, plat some development parcels to pay the freight, and preserve most. It's far better than handing unrealistic entitlements out to developers like candy on credit and scrambling to prevent catastrophies. It's just not going to work here. It's too late. The value is all phony. The City made it's mark and tainted the opportunity. But the model could work if we had good neighborhood-based planning. And therein lies the rub.
Trust has eroded. A comprehensive plan designed, ahead of its time, for neighborhood based planning was stripped of power, neighborhood goals, policies and objectives routinely trammelled. After decades of anticipating the daylighting of Padden Creek to improve fish habitat, we see planners recommend density that will turn it into a storm sewer instead. Wetlands and other critical areas are routinely developed. Time and again development forces stable neighborhoods into transition - around the University, in Birchwood, Happy Valley - everywhere. Look at the base of Alabama Hill. That's bad planning, and costs taxpayers money. Citizens do not trust the City to make good planning decisions.
Let me underscore this point: Bad City planning created the problem at Chuckanut Ridge and today undermines the public's trust in creative solutions to better planning. Today's proposal makes a mockery of the Greenways Levies that featured this acquisition and of citizens' efforts to save the property. It continues the mockery of neighborhood planning, upon which our Comprehensive Plan is supposedly based. Moreover, it is doomed to failure. There's nothing to get. The reason this property has remained undeveloped to this day is because it is essentially not developable.
In any case, if we are looking to cover shortfalls or even leverage gains in Greenways, we would more profitably and more equitably look at all Greenways together. Let's reasonably assess which might best be developed and assist with funding. Which do not compromise ecosystems, or parkland integrity, require little infrastructure, fit with neighborhood plans? Where is our best bang for the buck? Don't fixate on one property with such well documented development problems and a record of failure. Take a look around. There may be many good options.
But before we even try, let's start by restoring the neighborhood-based planning we agreed to thirty years ago, as the very purpose of our Comprehensive Plan is still expressed, even if not practiced. Let's use our land-use authorities to first help people put down roots and build community. Then help us make it even better. Let's not just build, let's build community. The cut and run development we have encouraged is the cause of expensive municipal problems - like Chuckanut Ridge. Good neighborhood-based planning is the cure.
Give it a try. Heck, we live here!
Comments (15)
To add a comment, click here to login or register.
Mike Rostron // Mon, Sep 26, 2011, 7:18 am
Excellent points Tip! The same sort of scenario is playing out now at the former D.O.T. site in Sunnyland where the developer feels he has bought high density and the hundreds of hours of time and good faith efforts of neighborhood residents were summarily shoved aside by the machinations of the planning department.
You are right to say this is a general problem, not just site-specific. It is an unfortunate fact of life that the relationship between developers and neighborhood residents is very often adversarial, and that needs to be acknowledged. Ideally the city should mediate that conflict with a view of preserving and augmenting neighborhoods, or improving them according to the wishes of those who live there. The desires of the developers for maximum profits should be secondary. One has to only look at certain areas of this town (Northwest Ave., Sunset, Telegraph, etc.) to see what results from allowing developers to do as they wish, unfettered by neighborhood interests and encouraged by “build it and they will come” city policies.
I suggest we begin to ask some of the following questions of our candidates for city offices:
*Do you support preserving the character of Bellingham’s various historic neighborhoods?
*Will you stand for the citizens of Bellingham whose homes represent most of their net worth and lifetimes of labor, hopes, and dreams?
*Are you willing to defend residents from the practices of developers out to make a profit regardless of the impact to city neighborhoods and residents?
You are right to say this is a general problem, not just site-specific. It is an unfortunate fact of life that the relationship between developers and neighborhood residents is very often adversarial, and that needs to be acknowledged. Ideally the city should mediate that conflict with a view of preserving and augmenting neighborhoods, or improving them according to the wishes of those who live there. The desires of the developers for maximum profits should be secondary. One has to only look at certain areas of this town (Northwest Ave., Sunset, Telegraph, etc.) to see what results from allowing developers to do as they wish, unfettered by neighborhood interests and encouraged by “build it and they will come” city policies.
I suggest we begin to ask some of the following questions of our candidates for city offices:
*Do you support preserving the character of Bellingham’s various historic neighborhoods?
*Will you stand for the citizens of Bellingham whose homes represent most of their net worth and lifetimes of labor, hopes, and dreams?
*Are you willing to defend residents from the practices of developers out to make a profit regardless of the impact to city neighborhoods and residents?
Larry Horowitz // Mon, Sep 26, 2011, 8:27 am
Yes, Tip, it’s true. The city HAD created the phantom value problem. But the problem no longer exists, and it’s not necessary for TAXPAYERS to pay for the CITY’s bad deeds.
Every potential buyer of this property already knows:
1) The land is barely developable because - as the Draft EIS clearly states - “Environmentally critical areas cover almost the entire site. The flattest areas on the site are either wetlands or would need to be set aside as wetland buffers. Most of the remainder of the site contains erosion-prone soils that have slopes of 15 percent slope or more, steep enough to heighten concerns about erosion potential, and some limited areas are considered landslide-prone.” (1)
2) The vesting, which theoretically allows circumvention of the city’s 2005 Critical Areas Ordinance (CAO), is on shaky legal footing and is easily challenged. Be assured, it will be legally challenged. More importantly, the Dept of Ecology (DOE) which has jurisdiction over the five Category 1 wetlands, has stated in writing it will require best available science, a regulatory requirement that essentially re-establishes key safeguards of the CAO. In other words, vesting has become essentially meaningless and utterly worthless.
3) The requirement to either build a connector road or widen the bridge still exists; but cannot be satisfied and still pencil out economically. During the “Special Meeting” of the 1978 Planning Commission which established the connector road prerequisite, Planning Commission Chair Mark Packer asked Planning Director Greg Waddell, “What can go in these areas where you have a prerequisite before the prerequisite goes in?” Waddell’s answer: “Nothing. Nothing could happen.” Bottom line: The property is essentially undevelopable as is.
4) The angry mob (which mostly resembles Grateful Dead groupies) is not likely to disappear into thin air. This group has experienced a very steep learning curve and has established itself as a force to be reckoned with by any developer. Who wants a piece of that? Especially when there are so many cheap properties available that are not encumbered by such a passionate opposition, not to mention the physical and logistical encumbrances.
Given that every potential buyer is already aware of these significant flaws, why would anyone - including us taxpayers - pay a premium for this tainted property. Sure, we want it; but are we willing to pay substantially more than anyone else? Does Washington Federal really need our money that bad? I thought WA Fed was the bank that wants to “invest here.” I guess I was wrong.
In any event, considering this is the most expensive single acquisition of parkland in the city’s history, BEFORE CLOSING ON THIS DEAL, the city would be wise to hire a professional appraiser to critically review the bank’s 2010 appraisal with the above factors in mind. Perhaps even start from scratch with a new appraisal. If this were a corporation, it would be legally negligent not to do so. You cannot perform due diligence without a critical analysis of the property’s value. The time for ‘government work’ is over.
Let’s do it right. Now!
(1) DEIS Section 1.3.2.3 on page 1-7 @
<http://www.cob.org/documents/planning/growth/fairhaven_high/eis info/deis/05_Chapter 1.pdf>
Every potential buyer of this property already knows:
1) The land is barely developable because - as the Draft EIS clearly states - “Environmentally critical areas cover almost the entire site. The flattest areas on the site are either wetlands or would need to be set aside as wetland buffers. Most of the remainder of the site contains erosion-prone soils that have slopes of 15 percent slope or more, steep enough to heighten concerns about erosion potential, and some limited areas are considered landslide-prone.” (1)
2) The vesting, which theoretically allows circumvention of the city’s 2005 Critical Areas Ordinance (CAO), is on shaky legal footing and is easily challenged. Be assured, it will be legally challenged. More importantly, the Dept of Ecology (DOE) which has jurisdiction over the five Category 1 wetlands, has stated in writing it will require best available science, a regulatory requirement that essentially re-establishes key safeguards of the CAO. In other words, vesting has become essentially meaningless and utterly worthless.
3) The requirement to either build a connector road or widen the bridge still exists; but cannot be satisfied and still pencil out economically. During the “Special Meeting” of the 1978 Planning Commission which established the connector road prerequisite, Planning Commission Chair Mark Packer asked Planning Director Greg Waddell, “What can go in these areas where you have a prerequisite before the prerequisite goes in?” Waddell’s answer: “Nothing. Nothing could happen.” Bottom line: The property is essentially undevelopable as is.
4) The angry mob (which mostly resembles Grateful Dead groupies) is not likely to disappear into thin air. This group has experienced a very steep learning curve and has established itself as a force to be reckoned with by any developer. Who wants a piece of that? Especially when there are so many cheap properties available that are not encumbered by such a passionate opposition, not to mention the physical and logistical encumbrances.
Given that every potential buyer is already aware of these significant flaws, why would anyone - including us taxpayers - pay a premium for this tainted property. Sure, we want it; but are we willing to pay substantially more than anyone else? Does Washington Federal really need our money that bad? I thought WA Fed was the bank that wants to “invest here.” I guess I was wrong.
In any event, considering this is the most expensive single acquisition of parkland in the city’s history, BEFORE CLOSING ON THIS DEAL, the city would be wise to hire a professional appraiser to critically review the bank’s 2010 appraisal with the above factors in mind. Perhaps even start from scratch with a new appraisal. If this were a corporation, it would be legally negligent not to do so. You cannot perform due diligence without a critical analysis of the property’s value. The time for ‘government work’ is over.
Let’s do it right. Now!
(1) DEIS Section 1.3.2.3 on page 1-7 @
<http://www.cob.org/documents/planning/growth/fairhaven_high/eis info/deis/05_Chapter 1.pdf>
Tip Johnson // Mon, Sep 26, 2011, 8:59 am
Larry,
I agree, except the problem does still exist and will until the City does what is supposedly required but was never done - review the zoning for consistency with adopted policies, goals, objectives and regulations. Wouldn’t an appraisal done before that still be wrong?
I agree, except the problem does still exist and will until the City does what is supposedly required but was never done - review the zoning for consistency with adopted policies, goals, objectives and regulations. Wouldn’t an appraisal done before that still be wrong?
Larry Horowitz // Mon, Sep 26, 2011, 9:58 am
An appraisal is neither intrinsically ‘right’ or intrinsically ‘wrong’; it is an estimate of value based on a whole host of assumptions.
We know for a fact that the bank’s appraisal is based on assumptions that have proven to be invalid. A professional appraiser can incorporate valid assumptions into the bank’s appraisal or can create a new appraisal based on valid assumptions.
The city should ask the appraiser, “What would a developer pay for this property?” The appraiser would then be required to consider the fact that the current zoning could never be permitted based on the fact that it violates a variety of comp plan goals and policies, violates DOE’s best available science requirement, and precludes satisfying the connector road prerequisite. The appraiser would properly advise any developer that the property is not developable to the extent of the zoning and would reduce the value accordingly.
Ultimately, the appraisal will have a range of values based on valid assumptions. It would be appropriate for the city to pay the high end of that range. But the city should not pay for value based on invalid assumptions, including the one that 739 units can ever be built.
We know for a fact that the bank’s appraisal is based on assumptions that have proven to be invalid. A professional appraiser can incorporate valid assumptions into the bank’s appraisal or can create a new appraisal based on valid assumptions.
The city should ask the appraiser, “What would a developer pay for this property?” The appraiser would then be required to consider the fact that the current zoning could never be permitted based on the fact that it violates a variety of comp plan goals and policies, violates DOE’s best available science requirement, and precludes satisfying the connector road prerequisite. The appraiser would properly advise any developer that the property is not developable to the extent of the zoning and would reduce the value accordingly.
Ultimately, the appraisal will have a range of values based on valid assumptions. It would be appropriate for the city to pay the high end of that range. But the city should not pay for value based on invalid assumptions, including the one that 739 units can ever be built.
David Camp // Mon, Sep 26, 2011, 10:17 am
To discover the value of the land, it should be auctioned off with a minimum bid of say, $3 million. Why should the City pay a premium over this determination of value?
I suspect the City would pick it up for $3 million. WHo would bid more given the current real estate market and the severe limitations to development, physical and political?
I suspect the City would pick it up for $3 million. WHo would bid more given the current real estate market and the severe limitations to development, physical and political?
Dick Conoboy // Mon, Sep 26, 2011, 1:51 pm
Tip,
You said, “Trust has eroded. A comprehensive plan designed, ahead of its time, for neighborhood based planning was stripped of power, neighborhood goals, policies and objectives routinely trammelled. After decades of anticipating the daylighting of Padden Creek to improve fish habitat, we see planners recommend density that will turn it into a storm sewer instead.”
You bet. This is the reason for which the Samish Neighborhood Board* is in opposition to the rezone of Padden Trails, approximately 113 acres (upstream of the daylighting) on the edge of the city, south and east of the park and ride at Connelly and 34th Streets. Currently zoned single family (just over 200 homes), the developer, Padden Trails LLC, has applied for a rezone to multi-family residential in order to use the Infill Tool Kit to stuff the property with 200 multi-family units AND 292 single family/duplexes. Of course, we all remember during the Tool Kit discussions that the “kit” was not for use in single family zoned areas. The developer’s solution is a rezone to multi-family to skirt the Tool Kit proscription just as opponents of the Tool Kit had predicted when Tim Stewart pushed this infill goat-rope onto the city before slinking off to Mercer Island. The rezone also goes contrary to the Samish Neighborhood Plan which does accept increased density but in the appropriate areas. This is not one of those areas.
The Coalition of South Neighborhoods has also come out against the project. You can read their letter to the City Council and the Planning Commission at: https://docs.google.com/leaf?id=0B7zCiYjHd3DlYjU4MjIxNTMtZTMzZC00Mzc2LTg3NDMtNjk1OTkwYWQyMGEw&hl=en_US
The Samish Neighborhood Association letter to the Planning Commission can be read here: + Link
If the rezone is approved, the Samish Neighborhood will eventually have its own version of Magnolia Hills, that horror show of planned density (adjacent to the Clean Green) with small homes on small lots that turned into rental hell in a very small place.
*[Note: For disclosure purposes, I am a member of the Samish Neighborhood Board. In this case, however, I am speaking only for myself, as a Samish resident, and my comment does not necessarily reflect the opinion of the Samish Neighborhood Board or any of the members of that Board individually]
You said, “Trust has eroded. A comprehensive plan designed, ahead of its time, for neighborhood based planning was stripped of power, neighborhood goals, policies and objectives routinely trammelled. After decades of anticipating the daylighting of Padden Creek to improve fish habitat, we see planners recommend density that will turn it into a storm sewer instead.”
You bet. This is the reason for which the Samish Neighborhood Board* is in opposition to the rezone of Padden Trails, approximately 113 acres (upstream of the daylighting) on the edge of the city, south and east of the park and ride at Connelly and 34th Streets. Currently zoned single family (just over 200 homes), the developer, Padden Trails LLC, has applied for a rezone to multi-family residential in order to use the Infill Tool Kit to stuff the property with 200 multi-family units AND 292 single family/duplexes. Of course, we all remember during the Tool Kit discussions that the “kit” was not for use in single family zoned areas. The developer’s solution is a rezone to multi-family to skirt the Tool Kit proscription just as opponents of the Tool Kit had predicted when Tim Stewart pushed this infill goat-rope onto the city before slinking off to Mercer Island. The rezone also goes contrary to the Samish Neighborhood Plan which does accept increased density but in the appropriate areas. This is not one of those areas.
The Coalition of South Neighborhoods has also come out against the project. You can read their letter to the City Council and the Planning Commission at: https://docs.google.com/leaf?id=0B7zCiYjHd3DlYjU4MjIxNTMtZTMzZC00Mzc2LTg3NDMtNjk1OTkwYWQyMGEw&hl=en_US
The Samish Neighborhood Association letter to the Planning Commission can be read here: + Link
If the rezone is approved, the Samish Neighborhood will eventually have its own version of Magnolia Hills, that horror show of planned density (adjacent to the Clean Green) with small homes on small lots that turned into rental hell in a very small place.
*[Note: For disclosure purposes, I am a member of the Samish Neighborhood Board. In this case, however, I am speaking only for myself, as a Samish resident, and my comment does not necessarily reflect the opinion of the Samish Neighborhood Board or any of the members of that Board individually]
John Watts // Mon, Sep 26, 2011, 8:17 pm
CR is a good deal because it was available at a price the City could afford -almost. That’s the problem; the City can’t afford it all because there are not sufficient funds available for this purpose.
But, there’s a catch! The property can serve as its own collateral; meaning the $3.2 Million or so the City wants to borrow from the Greenways endowment fund can be borrowed, but must be paid back, with interest as an inter fund loan.
But wait, there’s another catch; there exists no other funding to pay back an inter fund loan -plus interest- except by selling off a portion of the property purchased! That is exactly what the City must do, and commit to doing it now -up front and publicly while the Council members & Mayor who put this deal together are present and accountable.
Everybody wins in such a scenario, the Council, the Mayor, the Greenways program is kept whole & trustworthy, the public at large is happy & faith in local government is not compromised -everyone! Nothing but heroes here. Can’t beat that with a stick, can you?
That’s the best deal possible, although there may be a few who will gripe no doubt.
Should the Council fail to do the right thing and instead make the mistake of letting the $3.2 Million -plus interest- just hang around, then there will be more losers than winners!
Think about it; keep two-thirds by selling off one-third. Seems like an elegant solution to me.
How about you?
So, that’s my answer; a GOOD deal if its done right, but a BAD deal if its not.
We’ll know soon, maybe even tonight. But, if the Council needs more time to agree on a good plan, there are two more Council meetings between now and the closing date on this purchase - October 11, I believe.
But, there’s a catch! The property can serve as its own collateral; meaning the $3.2 Million or so the City wants to borrow from the Greenways endowment fund can be borrowed, but must be paid back, with interest as an inter fund loan.
But wait, there’s another catch; there exists no other funding to pay back an inter fund loan -plus interest- except by selling off a portion of the property purchased! That is exactly what the City must do, and commit to doing it now -up front and publicly while the Council members & Mayor who put this deal together are present and accountable.
Everybody wins in such a scenario, the Council, the Mayor, the Greenways program is kept whole & trustworthy, the public at large is happy & faith in local government is not compromised -everyone! Nothing but heroes here. Can’t beat that with a stick, can you?
That’s the best deal possible, although there may be a few who will gripe no doubt.
Should the Council fail to do the right thing and instead make the mistake of letting the $3.2 Million -plus interest- just hang around, then there will be more losers than winners!
Think about it; keep two-thirds by selling off one-third. Seems like an elegant solution to me.
How about you?
So, that’s my answer; a GOOD deal if its done right, but a BAD deal if its not.
We’ll know soon, maybe even tonight. But, if the Council needs more time to agree on a good plan, there are two more Council meetings between now and the closing date on this purchase - October 11, I believe.
Larry Horowitz // Mon, Sep 26, 2011, 8:51 pm
Just because something is available at a price you can ‘almost afford’ does not make it a good deal. If the price you can almost afford is substantially more than the item is worth - and substantially more than anyone else would pay for it - it is NOT a good deal at all.
The theory that two-thirds would be retained is simply a theory. In reality, if a developer would only pay $5 million for CR, then only ONE-THIRD will be retained if the city needs to raise $3.2 million and TWO-THIRDS will need to be sold. Guess which one-third the city will keep? The one-third comprised of wetlands & buffers and steep slopes - the same one-third that cannot be developed and the city would get for free. A good deal? In your dreams!
To claim that’s the best deal possible is ridiculous. It is far from being the best deal. Does anyone really believe a shrewd developer would accept that deal? Why doesn’t the city act like a shrewd developer itself?
And why aren’t future park impact fees (PIF) collected in the five Coalition of Southside Neighborhoods between now and 2017 not available to repay any interfund loan that might be necessary? Or real estate excise taxes (REET) collected in those same neighborhoods? Who took those items off the table?
No, everybody does not win in that scenario. In fact, we all lose. The public won’t be happy and will not have faith in local government. Wishful thinking perhaps; but unrealistic as hell.
The key to making this a good deal is to actually get a good deal on the land. $8.23 million is far from a good deal and is way more than anyone else would be willing to pay. That price is based on a 739 developable-unit fairly tale - a wet dream not even the dumbest developer would fantasize about.
For heavens sake, hire a professional appraiser and critically evaluate the bank’s appraisal. Perform due diligence and honor your fiduciary responsibility to the taxpayers you are elected to represent. Get us a good deal by negotiating one; not by being negligent.
The theory that two-thirds would be retained is simply a theory. In reality, if a developer would only pay $5 million for CR, then only ONE-THIRD will be retained if the city needs to raise $3.2 million and TWO-THIRDS will need to be sold. Guess which one-third the city will keep? The one-third comprised of wetlands & buffers and steep slopes - the same one-third that cannot be developed and the city would get for free. A good deal? In your dreams!
To claim that’s the best deal possible is ridiculous. It is far from being the best deal. Does anyone really believe a shrewd developer would accept that deal? Why doesn’t the city act like a shrewd developer itself?
And why aren’t future park impact fees (PIF) collected in the five Coalition of Southside Neighborhoods between now and 2017 not available to repay any interfund loan that might be necessary? Or real estate excise taxes (REET) collected in those same neighborhoods? Who took those items off the table?
No, everybody does not win in that scenario. In fact, we all lose. The public won’t be happy and will not have faith in local government. Wishful thinking perhaps; but unrealistic as hell.
The key to making this a good deal is to actually get a good deal on the land. $8.23 million is far from a good deal and is way more than anyone else would be willing to pay. That price is based on a 739 developable-unit fairly tale - a wet dream not even the dumbest developer would fantasize about.
For heavens sake, hire a professional appraiser and critically evaluate the bank’s appraisal. Perform due diligence and honor your fiduciary responsibility to the taxpayers you are elected to represent. Get us a good deal by negotiating one; not by being negligent.
Rick Anderson // Mon, Sep 26, 2011, 10:29 pm
The Mayor and Council have come up with a default plan but the majority of the Council doesn’t seem concerned about having a specific repayment plan in place before the fact for the money borrowed from the Greenways Endowment (Maintenance) Fund. They will work that out sometime in the next 6 years. It’s really easy to borrow money when you are both the lender and the borrower.
Tip Johnson // Mon, Sep 26, 2011, 11:12 pm
Larry, I agree the price is too high. You know my position. We have a deal. We deserve to pay more because, 1) We screwed the value up and, 2) The “public” always has to outbid developers to guarantee preservation, and (you offered why and it is true that), 3) It is impossible for a municipality to “act like a shrewd investor”. OK, so what’s the fair price? WAFed already ate over $6mm of the CIty’s decades long FU w/ this project. They have a fiduciary duty to the FIDC (and that’s us, too). How far is it worth testing the kill point of a deal that has already been struck? Why try to stick someone else with the tab for the City’s philandering?
John, I respectfully disagree. There is no advantage to pinning the shortfall to this property. Why insist your pet egg be constrained to one basket? It’s a loser. Its already been proven the most expensive development option possible. Ask Greenbriar or the ex-bank. If you intend to turn Greenways into an enterprise fund, then please consider the benefit of including all of Greenways. Don’t paint yourself in a corner. Why name the most problematic parcel as the only “collateral”. That’s dumb. Be sensible. There are far better acres afoot. If you want to start selling off Greenways, then pick the smartest ones. Ones that will make money, not cost more. That means taking the long view, not making a petty game of it. Please read the article completely before commenting. Thank you, John.
John, I respectfully disagree. There is no advantage to pinning the shortfall to this property. Why insist your pet egg be constrained to one basket? It’s a loser. Its already been proven the most expensive development option possible. Ask Greenbriar or the ex-bank. If you intend to turn Greenways into an enterprise fund, then please consider the benefit of including all of Greenways. Don’t paint yourself in a corner. Why name the most problematic parcel as the only “collateral”. That’s dumb. Be sensible. There are far better acres afoot. If you want to start selling off Greenways, then pick the smartest ones. Ones that will make money, not cost more. That means taking the long view, not making a petty game of it. Please read the article completely before commenting. Thank you, John.
Larry Horowitz // Tue, Sep 27, 2011, 12:01 am
Tip, I could not disagree more:
1) Taxpayers do not “deserve to pay more” because of the city’s prior misdeeds related to zoning.
2) More than 15% of all real estate transactions never make it to closing. Every purchase & sale agreement has a clause in the event either party backs out. It’s very common to re-negotiate when new information becomes available.
3) It is not impossible for the city to act shrewdly - not at all. Why you think so is a mystery to me.
4) None of us have any idea of the financial impact of CR on WA Fed. The transaction involved the purchase of Horizon Bank’s Westward Financial subsidiary that had a negative net worth, coupled with the purchase of loans owed by the bank to itself. To say the least, it’s a complicated mess. On the other hand, we do know that WA Fed reported a $50 million profit on the purchase of Horizon Bank’s assets in the first quarter after acquisition. We also know that the FDIC reimbursed WA Fed for 80% of any loss incurred. Trust me, WA Fed is not hurting.
5) The FDIC is not us. “The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities.” Losses incurred by the FDIC are paid by bank and thrifts through insurance premiums.
6) The real fiduciary responsibility here is the city’s responsibility to its taxpaying citizens. Wasting taxpayer funds collected for the sole purpose of acquiring park land and facilities is negligence.
7) I believe a fair price is substantially less than $8.23 million. In order to determine a fair price, the city must hire a professional appraiser as I’ve stated over and over again. There’s still plenty of time to do that before our sole source of funds to acquire Chuckanut Ridge is pissed away.
1) Taxpayers do not “deserve to pay more” because of the city’s prior misdeeds related to zoning.
2) More than 15% of all real estate transactions never make it to closing. Every purchase & sale agreement has a clause in the event either party backs out. It’s very common to re-negotiate when new information becomes available.
3) It is not impossible for the city to act shrewdly - not at all. Why you think so is a mystery to me.
4) None of us have any idea of the financial impact of CR on WA Fed. The transaction involved the purchase of Horizon Bank’s Westward Financial subsidiary that had a negative net worth, coupled with the purchase of loans owed by the bank to itself. To say the least, it’s a complicated mess. On the other hand, we do know that WA Fed reported a $50 million profit on the purchase of Horizon Bank’s assets in the first quarter after acquisition. We also know that the FDIC reimbursed WA Fed for 80% of any loss incurred. Trust me, WA Fed is not hurting.
5) The FDIC is not us. “The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities.” Losses incurred by the FDIC are paid by bank and thrifts through insurance premiums.
6) The real fiduciary responsibility here is the city’s responsibility to its taxpaying citizens. Wasting taxpayer funds collected for the sole purpose of acquiring park land and facilities is negligence.
7) I believe a fair price is substantially less than $8.23 million. In order to determine a fair price, the city must hire a professional appraiser as I’ve stated over and over again. There’s still plenty of time to do that before our sole source of funds to acquire Chuckanut Ridge is pissed away.
Ham Hayes // Tue, Sep 27, 2011, 7:10 am
Thanks for the excellent article Tip!
More than likely a bad deal, as other costs have not been considered. When it comes to the discussion of value vs price, there are some additional factors beyond development value that might be considered. These factors are based on the intended uses of the property and include recreational uses, protection of environmentally critical habitat, and other possible public uses.
Protecting critical habitat has been accomplished through regulatory means, so any of the land in this category should have zero economic value and the public shouldn’t be asked to pay for it. Fait accompli.
Other public uses. It is hard to imagine the property being used for waste water treatment, a transfer station, public safety or health facilities. The property just doesn’t fit with those community infrastructure uses. No value to the community there.
Which leaves parks and recreation as the only other possible use of value. The question then is how much more money will be needed to develop the property of that purpose. What is the plan or a plan for that, and how much capital and operating money will be required? Letting the land lie fallow is probably not a good option as most our citizens would not receive any value and they will know it.
Our elected officials are on the spot. Protecting this property by buying it and then selling off part of it without being able to state the value proposition to the community smacks of politics and maybe even incompetence. At best, the city’s approach is missing a complete think through of what this can mean for the city and what it will really cost us.
An unjustified deal at this point, and therefore an ill omen.
More than likely a bad deal, as other costs have not been considered. When it comes to the discussion of value vs price, there are some additional factors beyond development value that might be considered. These factors are based on the intended uses of the property and include recreational uses, protection of environmentally critical habitat, and other possible public uses.
Protecting critical habitat has been accomplished through regulatory means, so any of the land in this category should have zero economic value and the public shouldn’t be asked to pay for it. Fait accompli.
Other public uses. It is hard to imagine the property being used for waste water treatment, a transfer station, public safety or health facilities. The property just doesn’t fit with those community infrastructure uses. No value to the community there.
Which leaves parks and recreation as the only other possible use of value. The question then is how much more money will be needed to develop the property of that purpose. What is the plan or a plan for that, and how much capital and operating money will be required? Letting the land lie fallow is probably not a good option as most our citizens would not receive any value and they will know it.
Our elected officials are on the spot. Protecting this property by buying it and then selling off part of it without being able to state the value proposition to the community smacks of politics and maybe even incompetence. At best, the city’s approach is missing a complete think through of what this can mean for the city and what it will really cost us.
An unjustified deal at this point, and therefore an ill omen.
Doug karlberg // Wed, Sep 28, 2011, 2:26 pm
Mayor Pike, is no Donald Trump for sure.
To overpay in this real estate market, is a travesty to the tax payers. This property has been on the market for a decade with no tire kickers, until the Mayor showed up with our money in his checkbook.
Clearly the zoning on this property was in question. That was obvious.
The City should have gotten its own appraisal with a price for the current zoning, and one with an appropriate zoning downgrade, and then began his negotiations. Any private real estate professional would have done so.
Exuberance, and lack of real estate inexperience, are a bad combination.
Of course the City could have just waited for the property to sit on the market longer, as there were not other buyers in sight. With no buyers in sight and disputed zoning, this property should have been had cheaper ... and the City Council should have never rubber stamped it either.
There really is no adequate excuse for overpaying by any amount, nevertheless millions.
To overpay in this real estate market, is a travesty to the tax payers. This property has been on the market for a decade with no tire kickers, until the Mayor showed up with our money in his checkbook.
Clearly the zoning on this property was in question. That was obvious.
The City should have gotten its own appraisal with a price for the current zoning, and one with an appropriate zoning downgrade, and then began his negotiations. Any private real estate professional would have done so.
Exuberance, and lack of real estate inexperience, are a bad combination.
Of course the City could have just waited for the property to sit on the market longer, as there were not other buyers in sight. With no buyers in sight and disputed zoning, this property should have been had cheaper ... and the City Council should have never rubber stamped it either.
There really is no adequate excuse for overpaying by any amount, nevertheless millions.
John Watts // Wed, Sep 28, 2011, 3:05 pm
Hey, Tip, et al;
Could’a, should’s, would’a doesn’t cut it.
That is past history that only clever revisionism can touch.
The reality is, what’s done is done.
Now, we have to deal with it.
The best way to balance out this series of dumb moves is to cut our losses, right now, not later!
This property busted its budget and some others as well, so it is the only responsible way to get back on track and not keep kicking this political football down the field.
Read Pooh Bear’s Easter Party all the way through and see what piglet wanted; the big oval rock that looked like an egg, but was too heavy for him to lift and too big to put in his basket!
[Hint: the rock is CR]
You know, we can argue about this until the cows come home, but the basic facts are still there!
Were you or anyone really counting on the City to buy the entire property?
Get serious!
Out.
Could’a, should’s, would’a doesn’t cut it.
That is past history that only clever revisionism can touch.
The reality is, what’s done is done.
Now, we have to deal with it.
The best way to balance out this series of dumb moves is to cut our losses, right now, not later!
This property busted its budget and some others as well, so it is the only responsible way to get back on track and not keep kicking this political football down the field.
Read Pooh Bear’s Easter Party all the way through and see what piglet wanted; the big oval rock that looked like an egg, but was too heavy for him to lift and too big to put in his basket!
[Hint: the rock is CR]
You know, we can argue about this until the cows come home, but the basic facts are still there!
Were you or anyone really counting on the City to buy the entire property?
Get serious!
Out.
Larry Horowitz // Thu, Sep 29, 2011, 8:51 am
Clueless :-(
Padden Trails is Chuckanut Ridge Lite
Wed, Feb 22, 2012, 12:04 am // Guest writer
Yet another neighborhood wants the Planning Department to protect public health, safety, and general welfare
3 comments; last on Feb 22, 2012
Congressional Candidates and Overstreet’s Town Hall
Sun, Feb 19, 2012, 4:37 pm // Riley Sweeney
Riley at The Political Junkie attends a forum of Congressional Candidates, and a town hall meeting in Lynden0 comments
Squalicum Mountain development gets favors from county
Sat, Feb 18, 2012, 2:03 pm // Guest writer
No EIS - no real county planning concern about developing Squalicum Mountain and degrading Lake Whatcom water even further.
0 comments
Chilling Effect on Comments Created by Council Chair
Fri, Feb 17, 2012, 6:54 pm // Wendy Harris
Attempts by the County Council Chairperson to move the open public comment period to the end of a Council meeting will reduce public input.0 comments
A Vision for Fairhaven
Thu, Feb 16, 2012, 2:38 pm // John Servais
The Fairhaven Neighborhood Plan gets its first open meeting tonight - where anyone can present their ideas for the future.
0 comments
This Is What Conflict Of Interest Looks Like
Wed, Feb 15, 2012, 11:38 am // Wendy Harris
Lesa Starkenburg, former County contract attorney for GMA appeal, demands recusal of Council members who oppose development proposal by her private client, Nor'West Gravel1 comments; last on Feb 15, 2012
The Big Business of Breast Cancer
Wed, Feb 08, 2012, 8:14 am // Guest writer
There’s no profit in searching for causes, and we know there's no real cure. But there's big money in the detection and treatment of breast cancer.
2 comments; last on Feb 11, 2012
An inexpensive way to save children’s lives
Tue, Feb 07, 2012, 1:41 pm // John Servais
Bellingham is slowly installing flashing yellow lights for school zones. This is far better than trapping drivers with speed zone cameras. But, no city revenue.
2 comments; last on Feb 09, 2012
UPDATE: City of Bham Moonlighting Issue - More Documents
Mon, Jan 30, 2012, 10:58 pm // Riley Sweeney
Riley updates us on the latest facts coming to light about City of Bellingham employee moonlighting2 comments; last on Feb 01, 2012
Compliance, Noncompliance and Invalidity in Whatcom County
Sun, Jan 29, 2012, 10:16 pm // Wendy Harris
The County's rural planning actions have not just failed to comply with the GMA...they have contradicted the goals of the GMA.3 comments; last on Feb 05, 2012
A Worm’s Eye View of our local WorkSource Center
Wed, Jan 25, 2012, 9:42 am // Riley Sweeney
Riley visits the local WorkSource center and interviews the regional director
0 comments
Watch out for basement flooding
Thu, Jan 19, 2012, 9:03 pm // Paul de Armond
Stormwater surge may back up sewers
5 comments; last on Jan 21, 2012
The Political Junkie interviews Kathy Kershner
Thu, Jan 19, 2012, 4:29 pm // Riley Sweeney
Riley discusses the Jail, Jack Louws, and an impartial council with our new Council Chair
1 comments; last on Jan 20, 2012
SOPA - A Step in Destroying Democracy
Thu, Jan 19, 2012, 12:17 am // John Servais
NWCitizen.com went black for Wednesday, Jan 18, 2012, as a protest against proposed legislation, SOPA and PIPA. Here is what was posted.1 comments; last on Jan 19, 2012
Why SOPA is so terrible
Tue, Jan 17, 2012, 6:28 pm // John Servais
On Wednesday, thousands of websites will go dark to show opposition to SOPA. I will be posting a single article explaining who SOPA is so bad.0 comments
Planning Commissioner Mocks Environmental Concern For Coal Terminal
Sat, Jan 14, 2012, 11:06 pm // Wendy Harris
Planning Commissioner Onkels should recuse himself from review of environmental impacts at GPT.3 comments; last on Feb 08, 2012
Jack Petree, Olympia, the Whatcom Council and Obama’s Inner Circle
Wed, Jan 11, 2012, 8:04 am // Riley Sweeney
Latest from the Political Junkie on a variety of subjects
7 comments; last on Jan 15, 2012
Commmunity Governance at its Best
Mon, Jan 09, 2012, 8:27 pm // Tip Johnson
We have a new mayor!
4 comments; last on Jan 10, 2012
Property Rights Protected Under Lake Whatcom Stormwater Proposal
Sun, Jan 08, 2012, 11:02 pm // Wendy Harris
The County's proposed stormwater regulations for Lake Whatcom will increase development without improving water quality2 comments; last on Jan 20, 2012
Riley Rouses Row Over Domestic Violence
Sun, Jan 08, 2012, 1:21 am // John Servais
Issue is County Council member Kathy Kershner and how our social service programs are funded.3 comments; last on Jan 08, 2012
Some thoughts on the Occupy Bellingham issue
Sun, Jan 01, 2012, 12:05 am // John Servais
A third note on Jan 1 about the Herald photos with links. And previous thoughts on the trivia around the militarized evictions.9 comments; last on Jan 10, 2012
Kelli Linville has taken oath as mayor
Fri, Dec 30, 2011, 2:07 pm // John Servais
Kelli assumes office of mayor at midnight Dec 316 comments; last on Jan 02, 2012
Bellingham Herald removes comments
Fri, Dec 30, 2011, 11:59 am // Wendy Harris
Decide for yourself if this blog comment, posted under my own name, should have been flagged and removed from the Bellingham Herald Online Edition.1 comments; last on Dec 30, 2011
Herald Permits Censorship of Pro-Occupy Bellingham Comments
Fri, Dec 30, 2011, 11:14 am // Wendy Harris
Anyone can "flag" a blog posting, resulting in immediate removal of your comment, regardless of merit. This is occuring for comments supporting OB.1 comments; last on Dec 30, 2011
City Exceeds Scope of Occupy Bellingham Eviction
Wed, Dec 28, 2011, 8:26 pm // Wendy Harris
The City infringed on the public’s right to peaceful assembly in a public park by enforcing an inappropriate public safety law2 comments; last on Dec 30, 2011
Dan Pike Issues Order to Evict Occupy Bellingham
Tue, Dec 27, 2011, 11:55 am // Riley Sweeney
Riley questions Pike's timing, and Occupy's choice of tactics2 comments; last on Dec 28, 2011
Updates from The Political Junkie
Tue, Dec 20, 2011, 2:19 pm // Riley Sweeney
Where Riley provides more info on the City of Bellingham employees moonlighting issue and Crawford's ethical troubles
0 comments
Dock Increases Risk of Invasive Species on Lake Whatcom
Sun, Dec 18, 2011, 8:43 pm // Wendy Harris
Relocation of a dock to Bloedel Donovan Park underscores failure to protect Lake Whatcom from invasive species0 comments
Sam Crawford Faces Ethical Concerns . . . AGAIN
Thu, Dec 15, 2011, 12:44 pm // Riley Sweeney
Local blogger Shane Roth files ethical complaint over Crawford's sweetheart deals
3 comments; last on Dec 16, 2011
Planning Commission Fails to Remove Cherry Point From Birch Bay Mitigation Plan
Wed, Dec 14, 2011, 7:05 am // Wendy Harris
Claiming it is unfair to treat large property owners different than small property owners, the Commission refuses to remove industrial areas from buffer mitigation proposal.0 comments
Rick Perry, Can We Talk?
Tue, Dec 13, 2011, 9:58 am // Riley Sweeney
Riley has a conversation with Rick Perry
2 comments; last on Dec 16, 2011
For Gift Ideas, Think Beyond Parker Brothers
Sat, Dec 10, 2011, 9:32 am // Riley Sweeney
Riley discusses his love of board games and some good gift ideas
2 comments; last on Dec 11, 2011
The Political Junkie needs your input
Thu, Dec 08, 2011, 12:47 pm // Riley Sweeney
Please take my reader's survey, I'm planning 2012
0 comments
Loophole Benefits SSA and Undermines Birch Bay Mitigation Proposal
Wed, Dec 07, 2011, 7:00 am // Wendy Harris
Tell the Planning Commission to eliminate this loophole2 comments; last on Dec 14, 2011
Washington United for Marriage: It’s Time!
Tue, Dec 06, 2011, 11:12 am // Riley Sweeney
Riley attends a public meeting on equality
0 comments
The Cole Train: Loads of BS
Sun, Dec 04, 2011, 4:53 pm // Tip Johnson
Wherein the sooty prospect of economic necessity rears its ugly head
2 comments; last on Dec 04, 2011
Update on Cherry Point Buffer Mitigation Proposal
Fri, Dec 02, 2011, 1:08 pm // Wendy Harris
Planning Staff's recommended revision will not prevent SSA from reducing wetland buffers.0 comments
UPDATE: City’s response focused on favoritism, not lost revenue
Wed, Nov 30, 2011, 5:51 pm // Riley Sweeney
More on the city employee moonlighting issue0 comments
TPJ Exclusive: Little Documented Oversight for City Employee Moonlighting
Mon, Nov 28, 2011, 4:29 pm // Riley Sweeney
The Political Junkie breaks a story of employee moonlighting within city of Bellingham
7 comments; last on Nov 30, 2011
Deer me!
Sat, Nov 26, 2011, 3:30 pm // Tip Johnson
O.K. Who's in charge of all these ungulates?14 comments; last on Dec 01, 2011
County Proposal Includes New Cherry Point Buffer Mitigation Requirements
Tue, Nov 22, 2011, 9:29 pm // Wendy Harris
The County's new mitigation proposal is unlikely to be adequate for Cherry Point's industrial impacts to habitat buffers3 comments; last on Nov 24, 2011
New links
Colbert Super PacCurrent Interest
Bham Camera ScamColbert Super Pac
Local Blogs & News
Bellingham HeraldBham Politics & Economics
Bhm Herald Politics Blog
Bob Sanders
Cascadia Weekly
Citizen Ted
Ferndale Record
Foothills Gazette
Get Whatcom Planning
HamsterTalk
KGMI
Latte Republic
Lynden Tribune
MikeatthePort
Northern Light
Northwest Review
Sweeney Politics
Twilight Zoning
Wally Wonders
Western Front - WWU
Whatcom Watch
Local causes
Bham Camera ScamBham CofC political blog
Chuckanut Mountains
Citizens of Bellingham
City Club of Bham
Community Wise Bellingham
Conservation NW
Cordata & Meridian
Futurewise - Whatcom
Jail - local mega plans
Lake Whatcom
N. Cascades Audubon
N. Sound Conservancy
Neighborhood Schools Coalition
No Leaky Buckets
NW Holocaust Center
RE Sources
Transition Whatcom
WA Conservation Voters
Publisher recommended
Americans Elect 2012Bham Politics & Economics
Community Wise Bellingham
Guardian Unlimited
Paul Krugman - economics
Redistricting WA state
Sweeney Politics
Watts Up With That? - climate
WikiLeaks.ch
NwCitizen 1995 to 2008
Early Northwest CitizenWeather & Climate
Cliff Mass Weather BlogClimate Audit
NW Radar
Two day forecast
Watts Up With That? - climate
Cascadia
Crosscut SeattleJoel Connelly
Orcinus
Portland Indy Media
Seattle Indy Media
Washington Votes
Leisure
Adventures NWEdge of Sports
Entertainment NNW
Famous Internet Skiers
Sailing Anarchy
Worth checking out
Al-Jazeera onlineAlaska Dispatch
AlterNet.org
Americans Elect 2012
Antiwar.com
Arab News
Asia Times
Atlantic, The
Buzz Flash
Common Dreams
counterpunch
Daily Beast, The
Daily Kos
Daily Mirror
Drudge Report
FiveThirtyEight
Foreign Policy in Focus
Guardian Unlimited
Gulf News
Haaretz
Huffington Post
Innocence Project, The
Intrnational Herald Tribune
James Fallows
Jerusalem Post
Juan Cole
Le Diplo
Media Matters
Middle East Times
MoveOn.org
Nation, The
New American Century
News Trust
NMFA
numbers
Online Journal
Palestine Daily
Palestine News
Paul Krugman - economics
Personal bio info
Politico
Progressive Review
Project Vote Smart
Reuters
Sea Shepherd
Slate
Talking Points Memo
The Onion
Tom Paine.com
truthout
War and Piece
WikiLeaks.ch
ynetnews.com
Governments
Auditor election pageBellingham
Bham - PFD
Candidate Filings
Election Results
Redistricting WA state
Skagit County
The White House
WA State Access
WA State Elections
WA State Legislature
Whatcom Auditor
Whatcom County
Other - for whatever
Ban Red Light CamsBushFlash.com
Chickehhawks
Coal quandary
Doonesbury
George Bush
Info Clearing House
Mainstreampolitics
Michael Moore
Nat Geo on Coal Trains
Reality News
The Crisis Papers
Third World Traveler
Unity08
Washington Outsiders
Less active
Bellingham RegisterCarl Weimer
Eye on Whatcom
John Watts
Post-Oklahoman Confessions
The American Telegraph
Quiet, offline or dead
David HackworthGitmo prisoner 345
Mega Awesome
Not in my county
Parkenfarker
Pro-Whatcom