04/30/2010 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES
Special Meeting
April 30, 2010
At 9:15 a.m., Mayor Haakenson announced that the City Council would meet in executive
session regarding negotiations for the purchase of real estate. He stated that the executive session
was scheduled to last approximately 45 minutes and would be held in the Jury Meeting Room,
located in the Public Safety Complex. Action was anticipated to occur as a result of meeting in
executive session. Elected officials present at the executive session were: Mayor Haakenson, and
Councilmembers Bernheim, Plunkett, Fraley-Monillas, Buckshnis, and Wilson. Others present
were Finance Director Lorenzo Hines, City Attorney Scott Snyder, Community
Services/Economic Development Director Stephen Clifton, Parks & Recreation Director Brian
McIntosh, City Clerk Sandy Chase and Bill Bickel, Champion Real Estate Services. At 10:02
a.m., Mayor Haakenson announced the Council had asked to extend the executive session for 15
minutes. At 10:15 a.m., Mayor Haakenson announced the Council had asked to extend the
executive session for an additional 30 minutes. The executive session concluded at 10:53 a.m.
The special City Council meeting was called to order at 10:55 a.m. by Mayor Haakenson in the
Council. Chambers, 250 5th Avenue North, Edmonds. The meeting was opened with the flag
salute.
ELECTED OFFICIALS PRESENT
Gary Haakenson, Mayor
Steve Bernheim, Council President
D. J. Wilson, Councilmember
Michael Plunkett, Councilmember
Adrienne Fraley-Monillas, Councilmember
Diane Buckshnis, Councilmember
ELECTED OFFICIALS ABSENT
Strom Peterson, Councilmember
Dave Orvis, Councilmember
1.
2.
APPROVAL OF AGENDA
STAFF PRESENT
Gerry Gannon, Assistant Police Chief
Don Anderson, Professional Standards Sergeant
Stephen Clifton, Community Services/Economic
Development Director
Brian McIntosh, Parks & Recreation Director
Lorenzo Hines, Finance Director
MaryAnn Hardie, Human Resources Analyst
Scott Snyder, City Attorney
Sandy Chase, City Clerk
Jana Spellman, Senior Executive Council Asst.
Jeannie Dines, Recorder
COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, TO
APPROVE THE AGENDA, REVERSING THE ORDER OF AGENDA ITEMS 3 AND 4. MOTION
CARRIED UNANIMOUSLY.
CONSENT AGENDA ITEMS
A. ROLL CALL
Edmonds City Council Approved Minutes
April 30, 2010
Page I
4. POTENTIAL ACTION REGARDING THE PURCHASE OF REAL ESTATE WHICH MAY
INCLUDE APPROVAL OF A PURCHASE AND SALE AGREEMENT.
COUNCIL PRESIDENT BERNHEIM MOVED, SECONDED BY COUNCILMEMBER
PLUNKETT, TO AUTHORIZE THE MAYOR TO EXECUTE A COUNTER OFFER TO THE
BANK THAT CLARIFIES THE ROLES OF THE AGENT IN THE TRANSACTION, REQUESTS
FROM THE BANK COMPLETION OF A CURRENT FORM AND REQUESTS AN
ADDITIONAL 60 DAY DUE DILIGENCE PERIOD IF CERTAIN ENVIRONMENTAL
CONSEQUENCES ARE DEVELOPED. MOTION CARRIED (4-1), COUNCILMEMBER
WILSON VOTING NO.
3. AUDIENCE COMMENTS
Roger Hertrich, Edmonds, invited the Council and the public to the Better Living Lifestyle Fair
underway now at the South County Senior Center.
Todd Cloutier, Edmonds, agreed the Edmonds Bowl was beautiful and should stay that way and he did
not support taller building on the waterfront. He pointed out Edmonds' economy lagged behind other
cities in Snohomish County and has for the past ten years. The Council appointed an Economic
Development Commission (EDC) to address that issue. The Commission is snaking progress; however,
many of the ideas they are developing will require funding, an investment in the City's economic future.
The purchase of the Skipper's property would remove resources that could be used for legitimate
economic development, particularly since other funds are not available. Instead of purchasing the
property, he urged the Council to look closely at zoning the property to ensure any legal use by the land
owner would be in keeping with the character of the Downtown Waterfront Activity Center. He also
proposed the Council call on the EDC for specific proposals aimed at long term economic development
and to apply available funds to those purposes.
Al Rutledge, Edmonds, Observed the Council had extended the purchase timeline for the property. Next,
he questioned whether there was another potential offer on the Skipper's site. He suggested due to the
City's financial problems, a group of citizens purchase the property such as has been done to purchase
stadiums.
5. SKIPPER'S PROPERTY PURCHASE AND SALE AGREEMENT -- DUEDILIGENCE
ACTIVITIES.
Council President Bernheim suggested deferring action on the due diligence contracts until the Council
received a response from the bank.
Councilmember Plunkett agreed, explaining the intent of the counter offer was to get the property off the
market and allow the Council to do due diligence. To those who think the Council is paying too much for
the property, the due diligence will provide further information. It would not be appropriate for the
Council to sign due diligence contracts until the property is secured. The future purchase will be subject
to the City's satisfaction with the due diligence and the price.
Councilmember Wilson explained there is an offer behind the City's offer for slightly less than $1.1
million. It is not an all cash offer like the City's offer. He anticipated upon the Council's counter offer, the
real estate agent would present the bank with the second offer as well. The Council should learn more
about the bank's response to the Council's counter offer this afternoon. Thus it was appropriate for the
Council to delay action on the due diligence contracts until they learned whether the property had been
secured.
Edmonds City Council Approved Minutes
April 30, 2010
Page 2
Mayor Haakenson commented it was optimistic to think the Council would have a response from the
bank by the end of the day.
6. MAYOR'S COMMENTS
Mayor Haakenson had no report.
7. COUNCIL COMMENTS
Councilmember Buckshnis provided a reminder of the Town Hall meeting scheduled tonight from 6:00 to
8:00 p.m. at the Colonial Pantry Restaurant in Firdale Village.
8. ADJOURN
With no further business, the Council meeting was adjourned at 11:05 a.m.
GARY PAA T
SON, MAYOR
SANDRA S. CHASE, CITY CLERK
Edmonds City Council Approved Minutes
April 30, 2010
Page 3
AGENDA
EDMONDS CITY COUNCIL
Council Chambers, Public Safety Complex
250 5t" Avenue North, Edmonds
SPECIAL MEETING
APRIL 30, 2010
9:00 a.m. - Executive session regarding negotiation for the purchase of real estate.
9:45 a.m. - Call to Order and Flag Salute
1. Approval of Agenda
2. Approval of Consent Agenda Items
A. Roll Call
3. Audience Comments (3 Minute Limit Per Person)*
*Regarding matters not listed on the Agenda as Closed Record Review or as Public Hearings
4. (15 Min.) Potential action regarding the purchase of real estate which may include
approval of a purchase and sale agreement.
5. (30 Min.) Skipper's property purchase and sale agreement - due diligence activities.
6. ( 5 Min.) Mayor's Comments
7. (15 Min.) Council Comments
ADJOURN
Parking and meeting rooms are accessible for persons with disabilities.
Please contact the City Clerk at 425.775.2525 with 24 hours advance notice for special accommodations.