Disposition Procedure

Overview

The City of Bothell (City) is selling its property commonly referred to as Lot D, located in Downtown Bothell at the intersection of SR 522 and Bothell Way NE. The property consists of approximately 114,062 square feet (2.62 acres) and is identified as King County Assessor’s Parcel Numbers 945720-0050 and 237420-0065. The property has been cleared and is ready for new development. It is zoned Downtown Core (DC) and Downtown Neighborhood (DN), permitting a broad range of uses including multi-family residential, office, lodging, civic and cultural, and retail.

Property Disposition Goals

The goals of the property disposition are as follows:

• Maximize the sale price.
• To execute a purchase and sale agreement with few contingencies.
• Enter into an agreement with a buyer/developer with experience acquiring and developing similar properties.
• The development of a project that is consistent with the City’s development concept expectations.

Property Listing Website

All information about the property and the offering is available at www.cityofbothellproperties.com. Prospective buyers are strongly encouraged to register their interest on the website. Announcements and updates will be posted on the website and it is the prospective buyer’s responsibility to monitor the website for changes.

Communications

Kidder Mathews is the City’s exclusive agent for the disposition of the property and all communications shall be directed to Ross Klinger - (425) 450-1146, ross.klinger@kidder.com or Blair Howe, (206) 296-0894, blair.howe@kidder.com. It is the sole responsibility of the sender to confirm communications have been received by the intended recipient. Alternatively, communications can be delivered in writing to:

Lot D Property Disposition
Kidder Mathews
C/o Blair Howe
601 Union Street, Suite 4720
Seattle, WA 98101

Responses to questions will be posted on the property website.

Press Inquiries

Press inquiries can be made directly to the City of Bothell by contacting Jeanie Ashe, Economic Development Manager, City of Bothell, at (425) 806-6149. Contact with other City staff is prohibited and will result in the disqualification of prospective buyers.

Conditions of Sale

The property is being sold subject to certain terms and conditions. The purchase and sale agreement and attached development agreement will govern the property disposition and subsequent development of the property. The form purchase and sale agreement and development agreement are presented on the property website. Some, but not all, of the business terms and conditions are summarized as follows:

1. Road Work: The buyer will construct certain street improvements consistent with City design regulations and construction specifications shown on the property website. The street improvement work will include, but is not limited to, the completion of a portion of Main Street abutting the property to the north. Street improvements in the City right-of-way will be performed under a right-of-way permit, applied for by the buyer.
2. Utilities Work: Utilities work will be performed by and paid for by the buyer. Information about the existing utility infrastructure can be found on the City of Bothell’s interactive mapping site, www.bothellwa.gov/237/City-Interactive-Maps.
3. Development Fees: The developer is responsible for all development fees, consistent with the schedules presented on the property website and as described in the form development agreement, including impact, public works, land use and planning, building, and other fees.
4. Regulatory Requirements: The development will be consistent with the City of Bothell Municipal Code, zoning code, and downtown plan.
5. Environmental Issues: The City has remedied the historic contamination on the property. Groundwater monitoring wells will remain on the property, likely for a period of years. The City will have access to the monitoring wells through a monitoring compliance easement executed with the buyer at closing.

Offering

The following describes the offering process, requirements for submitting offers, and the process by which the successful purchaser will be selected.

Offering Launch

The property offering announcement date is April 29, 2020.

Listing Price

The Property is being offered for sale, on a competitive basis, unpriced.

Submittal Requirements

The offer shall include the following information:

1. The buyer’s offering in the form of a Letter of Intent, that acknowledges the form and content of the City’s standard purchase and sale and development agreements, including exhibits.
2. Buyer’s firm website address showing the buyer's previous experience delivering similar projects.
3. A two-page description of the contemplated project, including the projects primary elements and a description of how the project is consistent with the City’s expectations for development of the property. The format of the description shall be typical, legible, and free of elements such as extra small print or unusually narrow page margins.

Submitting Offers

Offers can be submitted in two ways:

By email to Kidder Mathews at ross.klinger@kidder.com or blair.howe@kidder.com. Please confirm receipt by telephone.

By US Mail or hand delivered to the following address in a sealed envelope to:
Lot D Property Disposition
Kidder Mathews
C/o Blair Howe
601 Union Street, Suite 4720
Seattle, WA 98101

A delivery receipt will be provided on request.

Submittal Due Date

All offers must be submitted before 5:00 p.m. on Friday, May 15th, 2020.

Buyer Broker Representation

Buyers may elect to have a licensed State of Washington real estate broker or agent act as Buyer’s Agent. Buyers must register Buyer’s Agent by entering the appropriate information in its Letter of Intent or Purchase and Sale Agreement. The City will pay a Seller’s agent fee equal to 1% of the gross sale proceeds.

Evaluation of Offers

Offers will be evaluated based on the criteria and allocation of points shown in the table below and described in the following paragraph. The City reserves the right to reject any offer, withdraw the property from the market, or reissue the solicitation for any reason and in its sole discretion. Offers will remain confidential until a Purchase and Sale agreement has been fully executed.

Development Concept – City’s Expectations

The City of Bothell’s Lot D is prominent, highly visible, and is the cornerstone to its downtown redevelopment plan. Development concepts that meet the City’s expectations have the following characteristics:

• Maximize the development potential of the site.
• Incorporate quality design and features that celebrate the gateway location of the site.
• Architecture that complements and reflects the character of the downtown.
• Responsive to the City’s existing investments in the downtown.
• Respectful of and responsive to adjoining uses.
• Ground floor uses and designs that activate the pedestrian realm within the block.

Criteria	Points
Offering Price	50
Contingencies (Due diligence period, time to close, earnest money type and amount, and environmental)	25
Developer Experience (Years in business, comparable projects, experience in King and Snohomish counties)	10
Development Concept (Consistency with the City’s Expectations)	15
Total	100

Call for Final Offers

The City may ask for final offers, or clarifications to offers, in which case, the parties that the City has selected, in its sole discretion, will have the opportunity to modify their original offer. Buyers will be notified by email if the City determines that final offers or clarifications are required.

The City may also re-open the offer period if it determines, in its sole discretion, that doing so is likely to lead to a better outcome.

Withdrawal of Offers

Unless otherwise stated in Buyer’s offer, Buyers may not withdraw offers for 90 days. During this time period the City shall have the right to accept or reject any offer received.

Acceptance of Final Offers

The City will acknowledge its acceptance by delivering the fully executed Purchase and Sale Agreement to the buyer.