Closing date nears for Bothell-McMenamins purchase and sale agreement
June 7, 2012 · 4:35 PM
Due to a need for environmental cleanup work, the Bothell-McMenamins purchase and sale agreement (PSA) closing date and environment contingency period has been extended on several occasions.
This month, the PSA for McMenamins' purchase and redevelopment of the Anderson School site and Northshore Pool property — on Bothell Way Northeast near downtown — is set to occur on or before June 27, according to a recent city of Bothell report.
The Bothell-McMenamins PSA was initiated on June 15, 2010, and calls for the Portland, Ore.,-based organization to develop the Anderson building into a 70-room hotel with a restaurant, pub, movie theater, spa and event meeting space. Operating the Northshore Pool is also part of the agreement, with Bothell residents having free access to the pool, meeting room space and community garden for 15 years.
The Washington State Department of Ecology (WSDOE) recently completed cleanup work on the pool property associated with an adjacent gas station and was set to issue a No Further Action letter at press time.
However, WSDOE said there are some residual concentrations of contamination still existing under the pool property that it couldn't remove. The city will execute an environmental agreement requiring that any future development disturbing this contamination area must first receive WSDOE approval.
The environmental cleanup delays have also caused delays by McMenamins in obtaining project financing. Council previously approved an amendment that established an escrow holdback provision in the amount of $100,000, to be accessed by McMenamins related to additional environmental cleanup or monitoring at the pool property if needed.
Construction for the entire project will occur by July 1, 2013, with opening for the entire project on August 1, 2014, five months later than anticipated in the original development agreement. The proposed amendment offers greater certainty that the environmental issues have been resolved.
All of the amendments have provided the city with an additional $160,000 in earnest money, of which $85,000 is applicable to the purchase price and $75,000 as additional compensation. Also part of the agreement is a five-foot stormwater easement to accommodate a portion of the proposed Horse Creek relocation along the western property line, saving significant capital expenses associated with the Horse Creek project.