Burien City Council Votes to Change Town Square Developers to Legacy Partners
The Burien City Council voted unanimously Monday night (Feb. 25) to direct Harbor Urban, owner of the still-undeveloped parcels at Burien Town Square, to sell those properties to another real estate developer – Legacy Partners – as permitted under the City agreements with Harbor Urban.
“Legacy wants to complete the multi-family housing-retail project in Burien’s city center and has submitted to the City a redevelopment proposal that calls for a mix of upper-scale multi-family housing and retail,” reads an announcement.
The remaining undeveloped Town Square property is just north of the current condominiums and Library/City Hall, between SW 152nd and SW 150th streets. The first phase of the Town Square project, the existing condos at 6th Ave SW, was completed in 2009 by owner/developer Urban Partners. When Urban Partners purchased the parcels from the City in 2005, the development agreement required the developer to begin the next phase of the project within two years of completing the first phase, or by July 21, 2011. Urban Partners failed to meet this deadline and still has not commenced construction of Town Square’s next phase.
On April 30, 2012, the City notified the owner/developer, which had since merged with Harbor Properties to form Harbor Urban, that it had defaulted on its development agreement with the City. The City issued a formal written notice of its intent to repurchase the remaining undeveloped parcels. That repurchase was to occur within 180 days.
After Harbor Urban told the City that it no longer wanted to build the remainder of the project required by the 2005 agreement, the City and owner/developer entered into a “standstill agreement,” which gave Harbor Urban until March 1, 2013, to negotiate with the City an alternate project and amendments to the development agreement for the remaining parcels. Under the standstill agreement, if the City and Harbor Urban did not agree upon an alternate project, the City could repurchase the parcels or direct Harbor Urban to sell them to another developer.
Harbor Urban and the City failed to agree on a mutually acceptable alternative project prior to the March 1 deadline, prompting the City Council’s action Monday.
According to the Legacy Partners website:
Legacy Partners is a leading vertically integrated real estate investment manager, owner and operator, with a comprehensive portfolio of commercial and residential assets in the western United States. Based on our significant background and a stable, committed team who live, work and specialize in our core markets, Legacy provides its investors, partners, tenants and residents with the depth of experience, speed of execution and transparency to create superior value.