Seattle Mayor wants to sell mall garage that was ‘key’ to downtown development
Jun 8, 2016, 11:08 AM
Seattle Mayor Ed Murray wants the city council to approve the sale of the Pacific Place Garage. (KIRO 7)
(KIRO 7)
Seattle Mayor Ed Murray wants to sell a garage that, as his office describes it, was an important aspect to redeveloping three blocks of downtown.
The Pacific Place Garage at Sixth Avenue and Pine Street was built in 1998 and became “key” to revitalizing a three-block area once covered with graffiti in the city’s commercial core. That work included redeveloping a former Nordstrom property to make way for additional retail and office space.
According to the city, the efforts inspired a “wave of development that led to the vibrant downtown.”
“The Pacific Place Garage has contributed to the success of downtown, bringing more people to shop and eat in the city, supporting a vibrant business district and improving public safety,” Murray said. “We will use the proceeds to support other public priorities, including the new North Precinct building when Council approves the final design, rather than asking residents to pay more taxes.”
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Murray wants to sell the garage to MPH PP Garage LLC for $87 million. The company is an affiliate of Pacific Place mall owner Madison Marquette.
Murray needs the Seattle City Council’s approval to make the sale.
The city would make at least $15 million off the sale, which Murray proposed be used for the new North Precinct Police Station project. The new precinct has a proposed price tag of $160 million.
The city considered selling the garage in 2013, but offers would not have covered what the city still owed on the structure.
“The $87 million sale price validates the council’s decision to put the brakes on the $55 million offer in 2013,” council member Tim Burgess said. “By waiting just three more years, the City will receive $32 million more for this property. Despite years of doubt, the City’s investment in this public-private partnership has paid off, both earning the City a net profit and revitalizing our downtown.”
The Puget Sound Business Journal reports the 1,200-stall garage was “controversial” before it opened. The city paid $73 million for it. It cost $50 million to build, the Journal reports. Though it did help with revitalization, the city lost about $1.5 million a year on the structure, which is located in a private development.
The Journal reports that one reason the property’s value jumped from $55 million to $87 million is because of its marketing for potential development. Craig Kinzer, the city’s real estate adviser on the garage, told the Journal the Marquette could become market-rate housing and a hotel.
KIRO 7 reported in May that the city council unanimously approved the renewal of an interfund loan of up to $10 million to fund the garage until the sale happens.
