According to a representative for the City of Bellevue, under the zoning code, there are credits that can be sold or traded. These have been owned since 2005. The goals of the sale are to maximize revenue and to support development outcomes in the Downtown Bellevue core.
The total amount of property that is being planned for sale is 286,500 square feet. It is the Bonus Floor Area that Bellevue has owned as a result of the permitting for City Hall. This could potentially generate about $23 million in revenue.
The Bonus Floor Area to be sold can be used to increase the size of the buildings constructed on the purchaser’s property. Originally, there was 465,000 square feet of space alloted to the City of Bellevue. Between 2007 and 2016, the City transferred 155,000 square feet of its Bonus Floor Area to other properties.
In late 2020, staff issued a Request for Proposals looking for offers to purchase the City of Bellevue’s remaining square footage within City Hall. Three of the proposals were selected to move forward and staff have negotiated terms for entering into option agreements with all three proposers.
The three proposals include:
- CLFP 400 108th LLC – 32,000 square feet
- Acorn Development LLC – 92,400 square feet
- Bellevue Downtown Development LLC – 162,100 square feet
If all three proposals work out, the total Bonus Floor Area sold would be 286,500 square feet. As mentioned previously, the City would make $23 million between the purchase price and premium payments if all three buyers close on the full amount covered by the option agreements.
The option agreements contain four provisions, including granting each buyer a five-year option to purchase Bonus Floor Area up to the maximum amount listed, each buyer is required to provide an option premium payment on top of the final purchase price, the buyer will close once they have submitted a complete building permit application for their project, and the buyers will only be able to purchase the amount of Bonus Floor Area that has been approved for use in their specific project.
It will be up to the City Council to decide how to use the funds collected from the sale.
