Notice of Intent
Opportunity to Submit Competitive Proposals
- Date Issued: January 28, 2022
- For: City of Bellevue 130th Avenue NE and Spring Boulevard Property
- Deadline: February 23, 2022 at 2 p.m.
The City of Bellevue has received an unsolicited proposal (“Unsolicited Proposal”) to purchase and develop three properties from the City north of Spring Boulevard between 130th Ave NE and 132nd Ave NE, which includes Parcels #2825059040, #2825059159, and #2825059191 (“City Property”). The City Property is approximately 4.04 acres in total. The proposer intends to include the City Property in a property assemblage that is anticipated to be developed as 675 housing units (including 125 units developed by a third-party as affordable housing), approximately 12,000 – 14,000 square feet of commercial space, public amenity and open space, plus 300 parking stalls for use as a park-and-ride facility in accordance with Sound Transit’s transit access improvement (TAI) requirements (“ST Parking Garage”).
This is a Notice of the City of Bellevue’s interest in selling the City Property as described in the Unsolicited Proposal in accordance with the terms therein, and opportunity for interested firms to submit alternative proposals to purchase and develop the property. The City of Bellevue intends to enter negotiations with the proposer with the intent to reach a purchase and sale agreement for the City Property based on the Unsolicited Proposal or another proposal submitted in response to this publication that meets the City of Bellevue’s requirements, including without limitation, development of the ST Parking Garage. Any proposal should include the experience, qualifications, and abilities of the firm and key individuals, project concept, and project financing. Upon entering negotiations, the selected proposer will need to provide an appraisal of the City Property that meets the City of Bellevue’s appraisal standards.
Description of the Unsolicited Proposal
The Unsolicited Proposal was submitted by a developer which is under contract for purchase of a neighboring property. The developer has proposed incorporating the identified City of Bellevue properties into its planned mixed-use development project. The Unsolicited Proposal would also integrate into the project the ST Parking Garage which the City of Bellevue is obligated to provide for use as a park-and-ride by Link light rail riders at Bel-Red/130th Station.
The proposed purchase price for the City Property is $23 million paid in cash at closing, less a negotiated sum for development of the ST Parking Garage.
The City Property are King County parcel numbers and legal descriptions:
- PARCEL #2825059040: LOT B BELLEVUE SP #75-18 REVISED REC #7612230730 SD SP DAF SE 1/4 OF SE 1/4 OF NE 1/4 SEC 28-25-05 LESS S 205 FT THOF & LESS RDS
- PARCEL #2825059191: S 205 FT OF S 1/2 OF SE 1/4 OF SE 1/4 OF NE 1/4 LESS CO RD LESS W 250 FT THOF LESS ST
- PARCEL #2825059159: POR OF SE 1/4 OF NE 1/4 DAF-BEG INTSN OF S LN OF SUBD WITH ELY MGN OF CO RD KNOWN AS 130TH AVE NE TH NLY ALG SD ELY MGN 205 FT TH S 88-21-04 E PLW S LN OF SUBD 250 FT TH S 00-52-16 W 205 FT TO S LN OF SUBD TH N 88-21-04 W 250 FT TO BEG
The land area and zoning of the parcels are as follows:
- Land Area: Approximately 4.04 acres, contiguous
- Zoning: Bellevue Land Use Code BR-RC-1
The following documents provide additional background and context into the Sound Transit transit access improvement (TAI) requirements and other analyses conducted by the City into potential development of the parcels:
- North Stars for 130th TOD. This document outlines the City's high-level objectives for the 130th transit-oriented development project.
- Sound Transit–City of Bellevue Conveyance Agreement, including all exhibits. This document outlines the terms of the transfer of these parcels to the City of Bellevue, including development of the TAIs for Sound Transit. Exhibits include:
- Sound Transit and City of Bellevue TOD objectives
- Design and Construction Agreement
- Development feasibility study. This study was conducted to help Bellevue understand the development potential associated with the 130th parcels. Please note that no guarantees are made about any financial assumptions included in this study.
- Interim parking study. This study was conducted in 2018 to help Bellevue understand possible interim offsite parking options
- Phase 2 Environmental Report. This document outlines findings about the environmental characteristics of the site.
- Geotechnical Report. This document outlines findings from the geotechnical study of the 130th parcels.
- Sound Transit draft parking term sheet. This document outlines Sound Transit's general guidance and expectations for parking management, including potential for shared mid-day parking across any potential development and the Sound Transit Park & Ride.
In addition to a complete description of the proposal, proposals should include the following information:
- Direct or anticipated benefits to the City of Bellevue, its residents, and the community
- Unique or innovative methods, approaches, or ideas contained in the proposal
- Alignment with City of Bellevue objectives, policies, and goals, including broad alignment with the land use code
- Adherence to Sound Transit’s Conveyance Agreement transit access improvement (TAI) requirements and Covenant to Use Land for Transit Oriented Development associated with the parcels, including without limitation, development of the ST Parking Garage
- Capabilities, qualifications, and experience of the proposer which are integral to achieving the objectives of the proposal
- Financial benefit or cost to the City of Bellevue, and level of capital contributions and risk assumptions by the proposer
- Timing considerations
- Any other factors relevant to the specific proposal
Responsive proposals may be submitted (in PDF form) by email to firstname.lastname@example.org no later than February 23, 2022 at 2:00pm.
If you have any questions, please contact Anthony Gill, Cultural and Economic Development, at email@example.com or (425) 452-4114.
Questions and Answers
Question: Would the city like the submissions to be simple responses in either a letter of intent, an email reply to those points or a Word document, or are you looking for a presentation on our offer and proposal for the site?
Answer: The most important consideration is that your submission clearly responds to all of the information listed under the “Proposal Submission” tab.
With regard to format, we would welcome a PDF overview of your proposal (i.e. proposed development scale and features, timeline, alignment with City of Bellevue objectives and Sound Transit requirements, etc.) and the key business terms (i.e. financial assumptions, risk allocation, etc.). The greater the level of clarity and completeness demonstrated in your proposal, the better our ability to evaluate it. We anticipate that a successful submission would look similar in level of detail to what might be submitted to a full property development RFP.
Question: What level of affordability is required? Will it qualify for MFTE?
Answer: The City's affordability goals are included in the "North Stars" document in the Supporting Materials tab. The goal of 50 percent of all units affordable at 30-60 percent AMI reflects City staff's analysis of the type and scale of affordable housing which is most needed in the community. We recognize that meeting this affordability goal on these properties, in combination with all of the other requirements, may be aspirational. Our intention is to maximize the number of affordable units delivered.
Proposals for these properties may qualify for MFTE, including a potential density bonus of up to 1.25 FAR. Additionally, any MFTE units proposed as part of your proposal may be considered as one component of meeting the City’s affordable housing objectives for the site. For full guidelines on the City’s MFTE program, visit our Housing Affordability page.
Question: Is it a requirement to segment out a separate development site for affordable housing?
Answer: This is not a requirement. Responsive proposals may contemplate alternative models for delivery of affordable housing. The unsolicited proposal we have received proposes a third-party project, but the City is open to alternatives that achieve our goals.