Next week, the City of Kenmore City Council is expected to approve a Purchase and Sale Agreement (PSA) for the 4.75 acre upper parcel of Kenmore Village, formerly the King County Park & Ride. On July 8, during the City Council meeting, City Manager Rob Karlinsey will recommend MainStreet Property Group LLC (MainStreet) as the buyer for a $3.6 million purchase price.
The property is part of the redevelopment of the downtown. Kenmore Village, as it is known, is a commercial and residential area at the northwest corner of 68th Avenue and 181st Street, across from the Kenmore City Hall. MainStreet is the recommended buyer based on the company’s offer price, experience, financial wherewithal, implementation capability, and alignment with the City’s goals and position statement for the property. The deal will close when the building permit is issued.
“Real estate investors are bullish on Kenmore,” said Karlinsey. “We are at the forefront of new development with excellent partners like MainStreet.”
MainStreet expects to develop and build in excess of 160 units of quality multifamily apartments in downtown Kenmore, a portion of which will be affordable housing. Construction is expected to begin as soon as summer 2014.
The City purchased the property in 2005 for $2,525,000. It is currently an interim location for a skate park and layover point for two King County Metro bus routes. According to Karlinsey, the City is evaluating options for a new skate park site and will have the above-ground skate ramps relocated. King County Metro is planning to move the layover locations for the two bus lines to the Kenmore Park & Ride near 73rd Avenue and Bothell Way.
Last month, the City Council approved a PSA for the sale of the lower parcel of Kenmore Village. Benaroya Company and Real Property Investors are the approved purchasers for the commercial property next door to the parcel MainStreet is expected to purchase.
The two Kenmore Village projects combined will include the construction of retail and office space, high density residential units and a public gathering space. The City anticipates the potential for $25 million in new investment to the downtown area. Benefits to the community and the businesses will include:
• Enhanced development and aesthetic appeal with new construction.
• A heightened sense of place making with the public gathering space, walkable design, and other improvements.
• New, quality housing near major bus lines and local amenities in the downtown core.
• More retail choices for residents and visiting shoppers.
• New office space for businesses and a resulting increase in job opportunities in Kenmore.
• A stronger tax base for the City, including sales tax during construction and ongoing new property and sales taxes after construction.
The City expects more than $8.2 million in direct economic value from the sale and development of these properties through the purchase prices, public improvements and new tax and permit revenue to the City. Approximately 200 jobs will be generated from construction.
“Excitement for the City’s future is reaching maximum velocity,” said Mayor David Baker. “Everyone is enthusiastic for what is next in our community with development partners that understand and are committed to the City’s goals.”