HomeMy WebLinkAbout97-078Resolution No. 97- 7 ~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT
TOWNSEND APPROVING COMMITMENT TO RENT SPACE IN THE
REDEVELOPED WATERMAN-KATZ BUILDING AND AUTHORIZING
THE MAYOR TO SIGN A "COMMITMENT LETTER"
The City Council of the City of Port Townsend, Washington, does resolve as follows:
WHEREAS, at its January 24, 1997 City Council Retreat, the Port Townsend City
Council identified as a high priority project, the resolution of City administrative office space
needs, to better serve the public; and
WHEREAS, the City of Port Townsend currently owns and rents administrative office
space scattered throughout the city, creating substantial inefficiencies in service to the public; and
WHEREAS, in the 1997 City Budget, the Port Townsend City Council set a budget
priority of creating "one-stop shop" permit review for land development applications, whereby the
City Building and Community Development and Public Works departments would be better
coordinated and housed in one location, providing the most efficient service to the public; and
WHEREAS, the Port Townsend City Council has chosen to phase out and substantially
eliminate contracts for outside engineering services, and create an Engineering Division of the
Public Works Department, with the goal of providing more efficient and cost-effective service to
the public; and
WHEREAS, the City of Port Townsend currently owns and/or leases the following
administrative office space:
(1) City Administrative Offices (Mayor, Building & Community Development, City
Clerk, Finance Director, and Utility Billing) housed within City Hall;
(2) City Attorney and City Administrator, housed within the Bartlett Building, 823
Water Street (leased space);
(3) The Department of Public Works administrative offices, housed at 5210 Kuhn
Street;
(4) City Water Quality Division, housed in the Good Templars Building, 280 Quincy
Street (leased space);
(5) The City Shops, Water Department, Street, Sewer, Storm, and Equipment Rental
offices at 1818 Beech Street;
(6) The Port Townsend Engineering Division, housed in the Uptown District, at 617
Tyler Street (leased space);
(7) The City maintains other administrative and shop facilities, including police, fire
and library, located throughout the city; and
WHEREAS, the 1996 Port Townsend Comprehensive Plan Capital Facilities and Utilities
Element, drafted prior to creation of the City Engineering Division, prior to location of the City
Administrator in the Bartlett Building, and prior to loss of Water Quality Division office space in
the public school building (necessitating additional rented space), stated the following:
Currently, most City Hall offices designed for one employee are being used by at
least two employees, and three employees work out of leased office space in
another location. Space for record storage, public information, and meeting rooms
is insufficient for current needs. The configuration of the building considerably
decreases useable space as well; approximately 2,200 of the 3,600 square feet are
actually available for use as City office space. Because City administrative
employees are housed in widely separate locations, communication between
departments is less efficient and cost-effective, and citizens most often travel from
one location to another to conduct business with the City;
and
WHEREAS, while the Comprehensive Plan set a level of service standard at 695 square
feet per 1,000 population (nearly one-half the level of service of comparable cities, based upon
a study of comparable cities), since the drafting of the Capital Facilities and Utilities Element,
City office space needs have increased substantially, the deleterious effects of cramped and
scattered office spaces have more sharply come to light, and the City Council has become acutely
aware of a growing inability to provide adequate service to the public with the current
administrative office space configuration; and
WHEREAS, the Capital Facilities and Utilities Element generally anticipates the need to
allocate revenues for the acquisition and construction of publicly-owned facilities between
competing needs. Publicly owned administrative office space has proven inadequate and
inefficient, and the City faces an inevitable demand to rent or acquire additional space in the
future. At present, publicly owned space is inadequate even to accommodate public meeting
needs; and
WHEREAS, over the past several years, the City has studied numerous options for the
consolidation of City offices and improvements of public service. The City Council has reviewed
and rejected several options to resolve the growing public service needs of Port Townsend
residents. Currently, the Port Townsend City Council has temporarily relocated public meeting
2 Res. 97- ?~
space to the Port Townsend/Jefferson County Community Center (rented space), with the City
Council chambers temporarily converted to administrative office space; and
WItEREAS, Ballenas Property Management Ltd, a Vancouver, BC-based property
redevelopment company ("Ballenas"), has acquired an option to purchase the Waterman-Katz
Building, located at 701 Water Street, Port Townsend, WA. The Waterman-Katz Building is the
last wholly un-renovated historic building located within Port Townsend's historic waterfront
commercial district; and
WHEREAS, Ballenas has approached the City with a proposal to provide the City with
administrative office space in the renovated Waterman-Katz Building. The Waterman-Katz
Building space would provide an opportunity for the City to terminate all leases of City office
space currently scattered throughout the city, and consolidate office space within City Hall and
the Waterman-Katz Building. The close proximity of the Waterman-Katz Building to City Hall
would greatly enhance the City's efficiency and improve the City's ability to serve the public.
The proposal anticipates retaining the Public Works Building located on Kuhn Street to house the
City's Water Quality Division; and
WltEREAS, the Waterman-Katz redevelopment proposal would possibly combine the
City's administrative offices and offices and classrooms for Peninsula College within the renovated
building, allowing the City and Peninsula College to maximize space and efficiency through joint
use of several rooms and common areas within the building; and
WttEREAS, the Economic Development Element of the Comprehensive Plan anticipates
the City's active involvement and partnership with public education institutions to create
opportunities to enhance educational opportunities in Port Townsend as a key strategy of
promoting the economic development of Port Townsend. The Plan envisions the City eventually
purchasing and leasing land for a "training/education campus." The Plan sets forth numerous
implementation policies for the City to promote the location and development of college-level
education facilities in the City, including:
1. Promote vocational training and educational opportunities which strengthen
and increase the skills available in the workforce.
13. Work with Main Street, the Chamber of Commerce, EDC, and other local
entities to ensure that informational and recruitment publications emphasize Port
Townsend as the 'City that supports culture and education on the Olympic
Peninsula.'
See, Comprehensive Plan Economic Development Element, pages VIII- 10 through VIII- 11; and
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WHEREAS, the economic development and revitalization of Port Townsend's historic
downtown have long been central policy objectives of the City Council. These policy objectives
were embodied in the Comprehensive Plan's Land Use Element, which establishes important
policies for the preservation of Port Townsend's historic structures. These include the following:
Goal 15: To preserve historic and cultural resources to retain our connection to the
past, enhance community values, and leave a historical legacy for future
generations.
Policy 15.2: Encourage the retention of significant historic and cultural resources
which foster community identity and pride.
15.2.2 Develop incentives that promote the adaptive reuse and
preservation of historic buildings ....
15.2.3 Work with downtown property owners to seek grant funding
to rehabilitate and seismically retrofit historically significant structures.
15.2.4 Promote commercial historic district revitali:~ation strategies
that recognize and capitalize on the historic traditions of Port Townsend.
See, Comprehensive Plan Land Use Element, pages IV-31 through IV-32; and
WHEREAS, the Council finds that the City's participation in the redevelopment of the
Waterman-Katz Building advances important City policy objectives, falls squarely within the
direction of the Comprehensive Plan to promote downtown historic preservation and revitalization,
and provides the City with a unique opportunity to address pressing needs for improved public
service while promoting the historic preservation and economic development of Port Townsend
in a concrete, meaningful and positive way; and
WHEPdgAS, at the April 21, 1997 City Council meeting, the City Council directed City
staff to explore the proposal for City administrative office use of the renovated Waterman-Katz
building, and to negotiate with Ballenas to advance that goal; and
WHEREAS, Ballenas has requested that the City provide it with a "commitment letter"
to. express the City's commitment to rent the space, with occupancy no later than February 1,
1998, upon completion of all planned renovations. The "commitment letter" is necessary for
Ballenas to proceed with building acquisition and procure all necessary financing to complete the
renovation project; and
WltEREAS, the City Council anticipates adequate revenues for rent through termination
of its existing administrative office leases, as well as revenue savings from corrected Washington
State excise tax returns and supplemented by general tax, fees and utility revenues,
4 Res. 97- ? ~
NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Port
Townsend as follows:
1. Port Townsend City Council authorizes the Mayor to complete negotiations with
Ballenas Pr~ Management Ltd. for the location of City administrative office space within the
renovated Waterman-Katz Building, in accordance with the terms set forth in the "Commitment
to Rent" letter, attached hereto; and
2. The City Council authorizes and directs the Mayor to sign the "Commitment to
Rent" letter, and forward the same to Ballenas, requesting that Ballenas provide the City with a
signed acknowledgment of the letter; and
3. The City Council directs the Mayor to work with the Port Townsend City Council
Finance Committee to incorporate within the 1998 Port Townsend City Budget, all revenues
necessary to rent the office space in the Waterman-Katz Building, offset by cost savings to the
City from termination of existing administrative office leases, and by reduced Washington State
excise tax payments.
ADOPTED by the City Council of the City of Port Townsend and signed by the Mayor
on this 23rd day of June, 1997.
Attest:
/ Pam Kolacy, City'Clerk
/
Julie~Culloch, Mayor
Approved as to Form:
06/19/97 [97-25] CA§Res{CityWK97.doe}
5 Res. 97-