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Primary Agenda Topics
- UPDATE this agenda item was delayed to the December 5th meeting: Final vote on change permitting increased residential density in the Tourist Business District. Also developers allowed to over build residential before required commercial %, with promise of future commercial.
- Wood Trails status and discussion on budgeting for actual construction of phase 1 trails. Staff is calling out that the 2022/2023 budgeted amount is now insufficient for the full Phase 1 trail-system. They propose a scaled-back minimal system that adds less trail and no amenities (ex: benches, tables, signs).
Background not mentioned in the staff report: In February 2023 a ~$1M Park Impact fee payment was received from Mainstreet LLC as part of the Woodgate permitting. Park Impact fees may only be spent on Parks.
- Discussion of Woodinville’s 2024 WA legislative lobbying agenda.
A pre-meeting (5pm) workshop will review an update on the mid-biannuim budget adjustments from the City’s finance director. Topics include staff salary increases and higher than budgeted costs in various departments.
Wood Trails project plan included a Phase 1 with multiple loops and amenities (benches, tables, etc)
Updates on November 29th add confusion
Per an update on KIRO at 11pm November 28th the investment group behind Green Partners, now says they are no longer developing the Garden District project. Unclear if that they are “out” entirely or they will be proposing a new project: https://www.kiro7.com/news/local/molbaks-says-it-has-been-forced-out-gardens-district-woodinville/O57TDXOKYRBKZFJNUWZFAN6UMM/
Earlier on Tuesday night Woodinville City Council discussed the Molbak’s situation:
— Video of the Staff report followed by Council’s discussion of next steps:
— OneWoodinville report from the Council chamber audience:
All councilmembers voiced that the project was only approved and would only be acceptable with Molbak’s included.
No action was taken but the message was clearly stated by all that Green Partners and Molbak’s should continue discussions to find a way to keep Molbak’s in the project.
The city attorney clarified that at this time the city has signed the DA (development agreement) but Green Partners has yet to counter-sign.
For full context the agreement includes various extras (height, density, tax breaks, etc) which are only available with a mutually signed DA. In trade for those profit boosting items Green Partners must deliver “public benefits” to the city. Having the project build a new Molbak’s store in phase 1 is the first in the list of public benefits. This means any ‘walking away’ from the DA will put Green Partners back to just basic building code with reduced profits.
City Manager Buchanan explained that while this is not a full DA negotiation it was unlikely to be resolved in weeks. He explained a full DA can often be a year long effort. His advice was to not set an artificial deadline. He did mention that within the next year there would need to be a start of land acquisition for the extension of 138rd (Garden Way) AVE implying some movement will be needed in the next ~12 months.
Molbak's email announcing the surprise.
Developer double-crosses Molbak’s and Woodinville
In a surprise post-election change the LLC known as Green Partners has informed the beloved Molbak’s Home and Garden that they will no longer be part of the so called “Garden District” project.
Details emerged after an email sent by Molbak’s on November 28th.
This upends the agreement from June 20, 2023 when Woodinville City Council allowed Green Partners and Molbak’s to co-present a vision of the “Gardens District”. Following that presentation the city agreed to the terms on a 10 year development agreement. That agreement allowed the buildings to leverage 70ft building heights (increased from the standard 56 foot limit) for up to 1400 apartments.
Other terms of the development agreement include a new 12 year tax-waiver authored hand-in-hand with with Green Partners. Estimates project the tax-savings boosts profit by at least $24M over simple market-rate pricing. Details of this estimated are captured in an analysis of the “MFTE” code posted on the OneWoodinville site in June: https://onewoodinville.org/mfte-analysis.
Molbak’s opened its doors 67 years ago in Woodinville and has become a centerpiece of the charming tourist town known for it’s numerous wineries a short drive but a world-away from Seattle. Now the faceless LLC known as Green Partners is holding the gardening store and City of Woodinville hostage.
No explanation was given on why after 15 years of planning everything was up-ended just 5 months after the deal passed with a 5-2 vote in a City Council vote.
Who is Green Partners LLC and why do they own Molbak’s land? Details about the LLC are sparse, but the Daily Journal of Commerce authored 2022 article including this: “Back in 2008, as the Great Recession was affecting its business, the Molbak family sold much of its land for over $16 million to Green Partners LLC. That entity is associated with BMGI Group, aka Bill & Melinda Gates Investments, aka Cascade Investment, the Kirkland-based family office for the Gates clan.” See https://www.djc.com/news/re/12147523.html
Beyond the boosted building height and tax-waivers Green Partners negotiated for City of Woodinville to reimburse 80% of a necessary road if the company did the construction across its property. This new cross-street will be required by the hundreds (?thousands?) of new daily trips added onto Woodinville’s already congested downtown streets. By backing out Green Partners will stick Woodinville with another 3M-4M for the cost of the road as well as all management expenses for the construction. Then if the City builds the road, Green Partners (who retain ownership of surrounding lots) could resume construction at any future point benefiting immediately.
A key point of the Green Partners development agreement was the inclusion of a new Molbak’s store. Excluding the beloved business would have the effect of voiding the entire legal contract with City of Woodinville. So Green Partners has to make a decision: special building privileges with Molbak's or not - there is no in-between.
No matter the final outcome of Molbak’s and Green Partner re-negotiation, the residents of Woodinville now understand they have an untrustworthy developer controlling 19 acres of prime downtown real estate.
Molbak's email announcing the surprise.
Primary Agenda Topics
- Downtown streetscape design update - only applies to future developments
- Staff salary 2024 adjustments: proposal is 4.5% raise plus a 3% bonus
- Mid-biennium budget adjustments: Record building fees obscure major increases in operational costs during the first half of the two year budget.
- 2024 Legislative discussion and approval
Streetscape proposal for future development on 175th Street.