UPDATED, 12/7: Over a long period of time, I've heard talk of an unsavory relationship between Redmond Town Center (RTC) and the City of Redmond. For the benefit of the Center, the City and our neighborhoods, now may be a time to air the laundry that's been hanging around our town.
By no means do I know all the details, or for that matter the facts. Only a word here and there from my neighbors and recently some muffled emoting and non-specific budget adjusting during a recent Council session. It appears the vitriol between Redmond Town Center (owned by Macerich REIT) and City started years ago during the Ives Administration. What I have heard is the corporate owner and operator of Redmond Town Center -Macerich REIT - didn't want anything to do with the City. I heard the blood was so bad, Macerich REIT didn't want anyone from the City of Redmond on their property. My hope is these rumors are overstated and the relationship between Redmond Town Center and the City has mended. But I wonder...
At this time, rumor has it that Redmond Town Center is demanding **$1,097,000 from the City in exchange for land they own buffering Bear Creek. The City needs the land to restore Bear Creek for flood control and habitat preservation. It is hoped negotiations will bring repair and renewal for all parties. **The latest number is lowered - to the mid-six figures.
Redmond Town Center is owned and operated by Macerich REIT out of Santa Monica, CA. (ticker MAC). They are a one of the largest owner-operators of retail space in the country. Macerich is a Real Estate Investment Trust (REIT) with 72 retail centers, 72MM square feet, 3,000 employees. 2007 revenues were $813,272,000 -- not far from a billion. Have you heard of Tyson's Corner Center, VA.? They own it.
Retailers (who depend on us) are having a rough time with this economy. Fortunate for Macerich, Redmond Town Center's 10-year leases expired last year and Redmond Town Center has signed more lucrative tenants with higher lease payments. The City is not raising business taxes this biennium. The bottom line: Redmond Town Center is not hurting, has deep pockets and tax support from the City. Macerich REIT stock was up 4% on Black Friday.
What appears to be hurting is Macerich-RTC's ability to overcome their past problems and renew a positive relationship with the city and neighborhoods that support them.
Redmond Town Center advertises Redmond's Bear Creek natural area as an amenity to attract customers and further their business. The RTC website advertises: "Conforming with the active, outdoor Pacific Northwest lifestyle, the Center is also surrounded by 45 acres of dedicated green space, active salmon-spawning habitat and a regional trail system." Look at RTC's LOGO and you'll see a rendering of Bear Creek! (top of page).
ATTN: REDMOND TOWN CENTER: As our community partner, please dedicate to Redmond and Redmond neighborhoods your portion of the 45 acre buffer to protect the spawning-habitat we all value. Please partner with Redmond to share in the costs of restoring the Bear Creek buffer. Please re-invest your resources back to our community for a better, safer Redmond for shareholder satisfaction.
An excerpt from Macerich's website on social responsibility: "We strive to meet community challenges through a combination of employee volunteerism, financial support, in-kind donations and partnerships with non-profit organizations whose missions are consistent with our own vision and values." We have similar values! Let's work together to save what we cherish.
It is hoped that Mr. Steven Chaffee, Senior Property Manager of Redmond Town Center can help us. Additionally, Redmond Town Center's owner Macerich, must know they built their Center on a 100-year flood plain and will enjoy flood protections from this restoration.
Comments? (Mayor Marchione commented)
CC: Mayor John Marchione, Rob Odle (Dir. of Planning and Development), Nancy McCormick (Council Pres.), Steven Chaffee, Macerich Corporate Headquarters - Executives, Redmond Neighborhood Associations (9), RTC merchants, Chamber of Commerce, Lake Washington School District PTSA members.
Well said, Bob, in your analysis of Redmond Town Center's 45-acre greenspace. You identified the corporate greed of an absentee landlord as the cause of this impasse with the city. Steve, the local RTC manager, is not the problem but rather his Macerich bosses in Southern California. How to address these unnamed fellows? Quiet diplomacy?Boycotts? Pickets?
ReplyDelete-- Gary Smith
I like to rail against ‘corporate greed’ as much as the next guy, but there is isn’t evidence of that in this story so far. As far as I know, the evil corporation paid fair market value for the land, invested substantially to develop the complex in accordance with the rules imposed on them by the city. The city has benefited from the taxes and fees and many people are employed in the city as a result.
ReplyDeleteAnd why the inflammatory language: “Redmond Town Center is demanding $1,097,000 from the City in exchange for land they own.” Can’t lawful owners ‘demand’ any price they chose? Is their asking price substantially above market value?
There are two ways that the City of Redmond can acquire the land they need; purchase it from the owner at a price they negotiate, or the City can use the power of ‘eminent domain’ if appropriate.
Although the story appeals to those who would like to see the corporation dedicate (give) the land to the city, how will Macerich explain that move to their investors who expect a return on the dollars they put at risk in hopes of generating a profit? Has RTC generated a profit yet? Have you examined the change in the financial situation at Macerich over the last year or so?
I suggest that a more substantial case be made before we imply that Macerich has acted improperly. I think they have been a good corporate neighbor and they have partnered with the city on several initiatives of mutual interest. In my opinion, it is unfair to advocate boycotts or picketing without a factual case.
Howard Frazier
Thank you Gary, for confirming what was in my gut. It's unfortunate MACERICH REIT is so distant from us not to understand the inherent value of their fallow land.
ReplyDeleteMr. Frazier responded so eloquently and expeditiously to this post it made me wonder who this gentleman was - a MACERICH lawyer? My research leads me to believe he's the principal of HFBE, Inc.-- Howard Frazier, Barker, and Elliott, Inc. of Texas. HFBE's real estate service web site mission is: "with integrity and financial expertise, HFBE works with it's clients to assess their value in the marketplace and advise them how to realize maximum value." Well, the way I look at it, if this isn't our Howard, he sure lives up to him!
The question MACERICH hasn't thoughtfully weighed is the value of social responsiblity to shareholders. Saving endangered salmon is valuable to their green-collar shareholders and customers. Has MACERICH tapped into the GREEN movement? Saving Bear Creek endangered wild salmon could be their opportunity to bring GREEN visibility to their corporation. It sounds like they could use a little "green".
-- Bob Yoder
HFBE? I found Howard's website - www.hfbe.com
ReplyDeletePer Email from Richard Cole on 12/1
ReplyDeleteBob,
I am responding on behalf of the Council as the ombudsman. Thank you for sending your e-mail.
I was surprised by your message. The only issue that I am aware of happened a while ago regarding access to their site for some construction related work. The problem was not with Redmond Town Center, but did involve getting a legal response from Macerich’s attorney in California. That was resolved and we’ve moved forward.
The Mayor is going to respond to your issue in more detail.
Richard Cole
Redmond City Council Ombudsman
Per an email from Citizen Gary, 12/1
ReplyDeleteYou're ahead of me on research, Bob. All I know is that the city's negotiations w/ Macerich are still at an early stage. If the dollar figure you uncovered is accurate, that may be the seller's high start-point, which should come down. Hopefully, they're not the greedy landowner we fear but a responsible corporate citizen. Macerich has apparently given the city and state access for the construction project in that corridor, which wasn't always allowed. In any case, we should give the city's new administration a chance to work this out amicably, and we certainly don't want to poison their relationship as long as the company is negotiating in good faith.
We need to talk, Bob -- sorry I missed your phonecall yesterday.
Cheers, GARY
Bob, your research was too far flung... I’m not a Macerich attorney or real estate advisor. I am a long time Redmond resident, formerly employed by the City of Redmond and more recently employed by a major tenant at RTC.
ReplyDeleteI’m not advocating for either position at this point; merely advocating that we not jump to a conclusion that may not be supported by the facts.
I understand that part of the value of this blog is to raise awareness of issues and generate discussion and to that end; Mission Accomplished!
Howard Frazier
Thanks for the update. RTC really has some challenges as they have stripped many of the retail shops that residents enjoy going to. Many of my patients no longer go there because their kids don't want to go there anymore, opting for alderwood, u village, and bellevue.
ReplyDelete=health clinic manager
Yes, my daughter sadly noticed Cowboy Chip cookies is gone. When Bear Creek is fully restored and the parks department runs some trails from the buffer to the creek -- some of your patients and their kids will have a good reason to head to RTC to watch the salmon jumping -- and get an education...before shopping or dining around the Center.
ReplyDelete--Bob Yoder
I imagine this issue is about the widening of SR520 near Marymoor Park. Bear Creek runs along side of the roadway, and Redmond Town Center is just north of Bear Creek. The City is coordinating a re-channelization of Bear Creek to reduce the flood hazard. Potential flooding onto SR520 would cause damage to the new roadway.
ReplyDeleteI imagine that the re-channelization of Bear Creek will require a buffer that extends into Redmond Town Center. Also, the City is extending the Bear Creek Parkway over to Cleveland Street. The Workshop Tavern was demolished to make way for the extension.
Why would the property owners of RTC care about these projects? Afterall, these new roads will bring more traffic into RTC. But the net effect of these projects is to reduce the land for future development. RTC is land-locked now, and the new buffer and roadways cut into the developed land area.
I imagine the land owner is asking the City to reduce its property tax assessment. Less land for future development, less property tax!
great post - thanks.
ReplyDeletePer email, dated 12/4/08 (excerpt)
ReplyDeleteDear Bob,
... In my eleven months, the relationship with Macerich is going swimmingly (yes, pun intended). We want to continue to work with Macerich and our other business partners to make Redmond a great city to live, work, shop, and play. Together we can protect and enhance the environment and add to our open spaces for everyone to enjoy.
Sincerely,
John Marchione
Mayor of Redmond
It is certainly clear, the rumor about RTC's sour relationship with the City goes back to the days of the Ives Admininistration AND ENDS THERE. Mayor John Marchione is a good businessman as well as a strong financial and public administrator. He will do well for us in any city negotiation, with or without the public trying to help.
ReplyDeleteNegotiations or not, it looks like the city will aquire the Bear Creek buffer land.
ReplyDeletehttp://www.redmond.gov/insidecityhall/citycouncil/20090203pdfs/AM09019.pdf
The above link from a recent Consent Agenda explains....