At tonight’s City Council meeting, the Bothell City Council approved a settlement agreement with Bothell Hotel LLC for repurchase of property next to Bothell City Hall. The City will repurchase the property for $1.27 million, the original sales price. The property will be returned to the City by the end of the year, so the City can pursue environmental cleanup, sale and development.
“This was the best way to continue progress on our revitalization plan and economic vitality for downtown,” said Jennifer Phillips, Bothell City Manager.
The City has hired Kidder Mathews to serve as a real estate broker for the sale of City-owned downtown properties. Including the property on the City Hall block that the City is repurchasing, there are five properties remaining to be sold (see map). With the broker’s assistance, the City Council will reexamine options for the properties, beginning early next year.
“The Council will look at what is the highest and best use for the remaining properties and what fits in best with the downtown,” Phillips said.
Bothell Hotel LLC purchased the property from the City on March 16, 2017. On June 20, 2018, the City notified Bothell Hotel that because Bothell Hotel had failed to begin construction by the deadline in the amended Development Agreement, the City was exercising its option to repurchase the property.
The City will also pay a mediated settlement of $865,000 to avoid the costs of litigation. According to the agreement, “Nothing in this Agreement constitutes or may be construed as an admission of liability by either Party.”