One of Nancy Ousley’s first duties in her new job as assistant city manager in 2007 was to attend a council meeting. That evening, Kenmore and Urban Partners signed a development agreement for the Kenmore Village by the Lake Project.
Two weeks ago, Ousley was on hand to witness the termination of that agreement with the developer, also known as RECP/UP Kenmore, LP.
“The economy had a big impact on a lot of projects, including this one,” said Ousley, who’s currently acting city manager in Fred Stouder’s absence to attend to family matters. “Everyone has respect for each other, and (we) just kept coming to a realization that maybe it was time to think about going our separate ways with respect to this project. It was a mutual decision and also an amicable one.”
In a statement from RECP/UP Kenmore, LP, they said: “We thoroughly enjoyed working with the city and shared their vision for a downtown revitalization in the heart of Kenmore. While this decision certainly did not come easily, it’s the appropriate one for both RECP/UP Kenmore, LP, and the city, given the economic downturn that began in 2008.”
The developer’s plans called for about 300 residential units, 77,000 square feet of retail space and 23,000 square feet of public space on the 9.6-acre site at the northwest corner of Northeast 181st Street and 68th Avenue Northeast.
Ousley noted that the city has agreed to pay RECP/UP Kenmore, LP, $700,000 to halt the agreement. In breaking down the numbers, she said that $519,438 represents money that the developer has already made in payments and reimbursements ($440,000 paid to the city in accordance with the agreement; a $79,438 reimbursement for design and construction of angle parking on the Northeast 181st Street frontage).
The agreement fees included a $250,000 initial earnest payment in July 2007; $100,000 total annual payments of $50,000 in December 2010 and 2011 per the revised agreement; $50,000 to compensate the city for costs of additional planning and permit-review resources to expedite the permit review; and $40,000 in 2006 to compensate the city for removing the site from the open market and to prepare the cost of the exclusive negotiating agreement.
Currently, Kenmore Fitness, Espresso Works and Great Play do business in Kenmore Village, and their leases have been transferred to the city.
Sheila Roark and her husband, Jesse, opened Espresso Works in December of 2010 and are hopeful for the future of the Kenmore Village site.
“Whether it be the city or whether it be a new owner, I’d like to see it spruced up, refaced, to get some fresh tenants in — an anchor tenant, absolutely. We hope to stay for the remainder of our lease, for at least two more years and beyond, even once it gets completely redone,” Sheila said last week.
Added Kenmore Fitness owner Tom Dooley, who’s been in business since March of 2004: “All I can do is hope that whatever happens will be in a manner that allows me to stay in business and bring additional business into the area.
“It didn’t seem that the Urban’s development plan on the table was going to work, but beyond that, I kind of assumed that Urban would be in charge until the end of the ground lease (2015).”
Robin Goldberg opened her Great Play location in Kenmore Village in January of 2011.
On the lease front, Ousley said the city hopes to make the transition seamless for all involved.
On the developer front, Ousley noted that the city is taking stock of what opportunities are available. She added that it’s a possibility that they may launch a search to replace RECP/UP Kenmore, LP, and said she’s spoken with incoming city manager Robert Karlinsey (he’ll start April 23) about Kenmore Village.
“It’s a great piece of property, it’s a time when we can see the economy just starting to reawaken,” Ousley said. “We have every reason to be optimistic about what’s going to be happening there. We want to make good and well-considered decisions that we discuss with the community and the council about what’s next.”
• Ousley recently returned from Washington, DC, where she and Kenmore Mayor David Baker met with congressional delegation offices and agency offices about getting support to finish the State Route 522 project and to progress with maintenance dredging for the Kenmore navigation channel.
Baker also attended National League of Cities meetings in the nation’s capitol.
“The contact is important, the relationships are important, there’s good information that you can get — so it was time well spent,” Ousley said.
