Wise real estate investment could fund numerous county service improvements- King County

Aug. 21, 2007

Wise real estate investment could fund numerous county service improvements

A wise real estate investment eight years ago has put King County in position to possibly consolidate more services downtown in a new King County Administration Building at no new cost to taxpayers. The economics of replacing the deteriorating, 37 year old administration building would be strengthened with the possible sale of the eight-story King Street Center in Pioneer Square.

Unsolicited private sector inquiries into possible purchase of King Street Center illustrate the high demand for quality office space in Pioneer Square. Analysts think the county could possibly sell the property for more than double its original $65 million cost. If the county gets the price it wants, it would move two of the county's largest departments from King Street to a planned new Administration Building at Fourth and James. The consolidation would create new efficiencies and give citizens easier access to services.

"Our smart investment in King Street Center could return tremendous new value to citizens in both dollars and services," said King County Executive Ron Sims. "We would be able to consolidate the location of two of our largest departments with the rest of county departments, gain efficiencies in our work and give citizens easier access to our services.

"This opens exciting possibilities that strengthen the economics of replacing the county Administration Building." Sims said.

The uncommonly high interest in locating in Pioneer Square lead analysts to believe King County could sell the 320,000 square foot building at a price higher than it would cost to replace that office space in the new Administration Building. King Street Center has won awards for energy efficiency and was considered the ‘greenest' building in the region when it was built in 1999. It is a model for sustainable construction for governments across the United States and around the world.

Admin Building The county is in the early stages of redevelopment of the aging Administration Building built in 1970 that is inefficient and costly to maintain. The Seattle Design Commission called it an architectural atrocity.

A request for proposals for a new design earlier this year resulted in the selection of Wright Runstad and Company. Early plans called for a 40 story building that would require a rezone by the City of Seattle.

While the original proposal is still viable, the revised redevelopment plan using revenue from the possible sale of King Street Center is stronger economically and does not require a rezone. The cost of replacing office space from King Street Center would be less than its sale price.

The new proposal includes:

A 28 story, 340 foot high office building with 850,000 square feet of space;
Parking on site for 425 cars; and
Replacement of existing sky bridge from courthouse to the jail with tunnel for transporting prisoners.

Proposed Tenancy

Future Building In addition to the current tenants of the County Administration Building and King Street Center, proposed occupants could include: the County Executive, the Metropolitan King County Council and the Finance Division, which is currently divided between two different buildings. Additionally, the county has received inquiries from the Washington State General Administration and the Seattle Housing Authority about possibly leasing space in the new building. King County Elections is moving to a new building in Renton at the direction of the County Council. Prosecuting Attorney staff that is now located in the old Administration Building would join the Prosecutor's staff located in the courthouse.

By proceeding with the project as a Planned Community Development (PCD), the county will be allowed to transfer development rights to the Administration Building site from various parcels on the campus. This approach allows the City of Seattle to take into consideration public benefits for the campus as a whole, potentially reducing the costs for increased Floor Area Ratio (FAR) on the Administration Building site by up to $10 million.

The PCD will include the King County Courthouse, City Hall Park, the New County Office Building, the King County Correctional Facilities, the county-owned parcels on Goat Hill, the Yesler Building, and the Administration Building site itself. The development of the Administration Building site will be looked at holistically with other potential projects on the campus, including options for the development of Goat Hill parcels, the South Entrance to the King County Courthouse, and City Hall Park.

The Executive is asking for an appropriation of $591,000 for the initial study phase.

Related information

Transmittal letter (PDF)

King County Executive, Ron Sims County news Executive initiatives Excellence in Government Executive offices Biography Contact information King County Executive Office Ron Sims, King County Executive 701 Fifth Ave. Suite 3210 Seattle, WA 98104 Phone: 206-296-4040 Fax: 206-296-0194 TTY Relay: 711	KING COUNTY HOME \| NEWS \| SERVICES \| DIRECTORY \| CONTACT King County Executive, Ron Sims King County Executive You're in: King County Executive, Ron Sims print Aug. 21, 2007 Wise real estate investment could fund numerous county service improvements A wise real estate investment eight years ago has put King County in position to possibly consolidate more services downtown in a new King County Administration Building at no new cost to taxpayers. The economics of replacing the deteriorating, 37 year old administration building would be strengthened with the possible sale of the eight-story King Street Center in Pioneer Square. Unsolicited private sector inquiries into possible purchase of King Street Center illustrate the high demand for quality office space in Pioneer Square. Analysts think the county could possibly sell the property for more than double its original $65 million cost. If the county gets the price it wants, it would move two of the county's largest departments from King Street to a planned new Administration Building at Fourth and James. The consolidation would create new efficiencies and give citizens easier access to services. "Our smart investment in King Street Center could return tremendous new value to citizens in both dollars and services," said King County Executive Ron Sims. "We would be able to consolidate the location of two of our largest departments with the rest of county departments, gain efficiencies in our work and give citizens easier access to our services. "This opens exciting possibilities that strengthen the economics of replacing the county Administration Building." Sims said. The uncommonly high interest in locating in Pioneer Square lead analysts to believe King County could sell the 320,000 square foot building at a price higher than it would cost to replace that office space in the new Administration Building. King Street Center has won awards for energy efficiency and was considered the ‘greenest' building in the region when it was built in 1999. It is a model for sustainable construction for governments across the United States and around the world. The county is in the early stages of redevelopment of the aging Administration Building built in 1970 that is inefficient and costly to maintain. The Seattle Design Commission called it an architectural atrocity. A request for proposals for a new design earlier this year resulted in the selection of Wright Runstad and Company. Early plans called for a 40 story building that would require a rezone by the City of Seattle. While the original proposal is still viable, the revised redevelopment plan using revenue from the possible sale of King Street Center is stronger economically and does not require a rezone. The cost of replacing office space from King Street Center would be less than its sale price. The new proposal includes: A 28 story, 340 foot high office building with 850,000 square feet of space; Parking on site for 425 cars; and Replacement of existing sky bridge from courthouse to the jail with tunnel for transporting prisoners. Proposed Tenancy In addition to the current tenants of the County Administration Building and King Street Center, proposed occupants could include: the County Executive, the Metropolitan King County Council and the Finance Division, which is currently divided between two different buildings. Additionally, the county has received inquiries from the Washington State General Administration and the Seattle Housing Authority about possibly leasing space in the new building. King County Elections is moving to a new building in Renton at the direction of the County Council. Prosecuting Attorney staff that is now located in the old Administration Building would join the Prosecutor's staff located in the courthouse. By proceeding with the project as a Planned Community Development (PCD), the county will be allowed to transfer development rights to the Administration Building site from various parcels on the campus. This approach allows the City of Seattle to take into consideration public benefits for the campus as a whole, potentially reducing the costs for increased Floor Area Ratio (FAR) on the Administration Building site by up to $10 million. The PCD will include the King County Courthouse, City Hall Park, the New County Office Building, the King County Correctional Facilities, the county-owned parcels on Goat Hill, the Yesler Building, and the Administration Building site itself. The development of the Administration Building site will be looked at holistically with other potential projects on the campus, including options for the development of Goat Hill parcels, the South Entrance to the King County Courthouse, and City Hall Park. The Executive is asking for an appropriation of $591,000 for the initial study phase. Related information Transmittal letter (PDF)
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	Updated: Aug. 21, 2007