The Strange, Sad Summer Saga of Buillding 11

--Gail Chiarello, Democratic PCO 46-2098

On August 8th, City Council voted to amend the 2008 lease for the old public works building at the tip of Magnuson Park’s north end. The developer, unable to perform under the terms of his 2008 agreement, sought new concessions, including 20% more space and City approval of a medical clinic tenant within 200 feet of the shoreline (although this use is prohibited by the Shoreline Master Plan and the Sand Point Overlay District zoning requirements). The new legislation returns significant revenue to the City in the shorter term; it contains a fair lease for the non-profit Sail Sand Point; it retains artists in the building for the next ten years. The Virginia Mason Internal Medicine Clinic slated for the north end of the building will have to relocate elsewhere, hopefully in private sector commercial space.

Activism from the 46th District Democrats helped bring about this more favorable outcome. The 46th was the first LD to support a resolution calling for more public benefits in the lease amendment; it was followed by the 36th, the 34th, and the Metropolitan Democratic Club. 46ers Jorgen Bader, Bonnie Miller, Lynn Ferguson, Sylvia Haven, Jan Ames, Kim Wells, Diana Kincaid, Rusty Williams, Nancy Bolin, Jeannie Hale, and Gail Chiarello were key in helping City Council focus on the rightful use of a public waterfront facility. The effort could still have failed, had it not been for the principled leadership of Parks Committee Chair Sally Bagshaw and her committee—Tom Rasmussen, Bruce Harrell, and Jean Godden. Councilmember Nick Licata, although not a member of the Parks Committee, was a fearless advocate for the artists and for public benefits; and we are proud that CM Licata is also a member of the 46th.

Did you wonder what all the fuss was about? Think of it this way. Building 11 was a microcosm of ills that plague our political system—lack of transparency in deal-making; private sector exploitation of public assets; an “asleep at the wheel” bureaucratic mentality that allowed the developer to roll forward without brakes. Former Parks Superintendent Tim Gallagher’s role also raises an eyebrow. As Parks chief, he engineered the 2008 lease. Gallagher resigned spring 2010 and now serves as Chief Operations Officer at Nyhus Communications, a firm employed by the developer this summer to run the amended lease through Council. Gallagher’s portfolio may not include Building 11, but his role at Nyhus certainly raises questions of conflict of interest.

On August 16th the developer filed a complaint against the City for bad faith dealing. In my humble opinion, his suit could be tossed out now. He reopened the lease—not the City. He demanded more goodies, and when the City insisted on a fair return, he behaved like a child banging the tray of his high chair. He sued the City.