INITIAL THOUGHTS ON THE NAVY/CITY DEAL IN DISCOVERY PARK, SEATTLE WA Jan. 2005

BACKGROUND:

On December 21, 2004, Seattle Mayor Greg Nickels announced a deal between the City of Seattle, American Eagle Communities, and the United States Navy, regarding the disposition of Navy-owned property within Discovery Park. American Eagle Communities had been selected by the Navy to act as the private partner mandated under a 1996 law (http://www.acq.osd.mil/housing/mhpi.htm ) that enabled the Navy to enter into PPVs (public-private ventures) to assist them in privatizing unwanted properties.

The deal is preliminary and represents a general outline of an agreement, with many details to be worked out in the near future. For those of you unfamiliar with the background leading up to this settlement, I suggest you read several excellent articles in the Seattle Times and others regarding it. A simple Google search on “Discovery Park” will provide lots of interesting reading.

The elements of the deal are as follows:

1) Once the military families currently living in the Capehart units have been found adequate housing elsewhere and vacated the Fort Lawton parcels, the Navy will demolish all above ground structures and give the 23 acre Capehart parcel to the City for use as Park space. Removal of remaining concrete slabs, pavement and other infrastructure will be up to the City to remove. This will allow the City to take ownership of a parcel that will be safe for public access, without the need to fence it off.

2) Navy, through its partner, American Eagle will sell or long term lease the 26 historic homes (after they have been similarly vacated) within the historic district to private individuals with the proceeds to be used for construction or purchase of enlisted family housing in the Everett area. The buildings will remain historic and subject to historic covenants. No additional buildings will be allowed. Rules pertaining to the occupants of those homes and how they co-exist within a public park are to be negotiated.

3) City will pay the Navy $9 million at a date to be determined. City has committed $2 million of it's own West Point Settlement Fund (WPCAC), towards the total, with the balance of $7 million to be raised from Federal, State and County sources.

Here's an image of the Capehart area:
http://www.pbase.com/pvogelzang/image/38255875
Here's an image of a historic home in Officers Row:
http://www.pbase.com/pvogelzang/image/38255897.jpg
Here's an image of a historic home in Montana Circle:
http://www.pbase.com/pvogelzang/image/38255889.jpg

COMMENT:

First and foremost, recognition must go to the many military families who currently or previously have called Discovery Park home. The tradition of military housing in Discovery Park goes back decades, and the citizens of Seattle have shared the beauty of Discovery Park with these families and been the better for it. It's certainly my hope that this deal will give them higher quality, more comfortable housing than they've had previously, and closer to their place of work. They have been outstanding stewards of this public space and they deserve everyone’s thanks and well wishes

The Upsides:

Very few, I believe, would argue this is not a good compromise deal for everyone. One - the Navy and American Eagle walk away from a potentially difficult political fight with a nice sum of cash and the good graces of Seattle. I'm not a real estate expert but the sale of 26 well-maintained, classic turn-of-the-century homes in the middle of Seattle's largest green space is unprecedented, and will attract lots of attention. Depending on the quality of work American Eagle puts into the renovation and modernization process, some of the homes on Officers Row may sell for over $1 million, with those on Montana Circle probably selling for over $500k. Multiply that by 26 units! Added to the $9 million from the City, this deal stands to bring to the Navy a large amount of cash from its Fort Lawton holdings to build housing in Everett.

Two, the City and its citizens gain title to a parcel that arguably does more to fragment and weaken the biodiversity of Discovery Park than any other. Although the restoration process will be long and perhaps difficult, ownership of this critical 25 acres is crucial if the City ever wants to really manage Discovery Park and its ecosystem as a “whole”. The Capehart parcel is isolated from the rest of Park buildings and pavement and is surrounded by fairly healthy meadows and forests. Unlike the historical homes, Capehart is located distant from the Park perimeter and central to its forests and meadows. Just the daily number of vehicles driven to these homes every day adds considerably to the vehicular traffic load within the Park.

And three - the politics. Budget hawks in Congress and elsewhere are bound to look carefully at this deal. Transfer of 25 acres of federal land to the City will attract lots of attention. The revenue generated (perhaps as much as $30 million) for use in acquiring military housing in Everett will dispel any notion of special pork barrel deals.

The Downsides:

So what are the downsides? In the few public discussions I’ve been involved with so far, I’ve heard several.

First, this is the property that was sold to the federal government for a miniscule amount of money from the citizens of the City of Seattle over 100 years ago. They’ve had full use of it for those 100 years and it’s time they return it to the City free of charge. In a similar vein, this is property is owned by “the public” so the public should not be charged with the burden of purchasing it again.

Secondly, we'll have private homeowners residing in the Park, which will forgo any chance at removing some or any of them in the future. It also sets a dangerous precedent of private ownership in a public park, with all the problems that follow. These buildings could just as easily be converted to public use, like community centers or artist residences.

Thirdly, we have to give up a significant portion of the Westpoint Settlement Fund (see my WPCAC posting) the City will be receiving from King County. This money (nearly $5 million) is legally bound to be spent on habitat improvement in Discovery Park and the loss of $2 million of these funds is significant.

Finally, the City will be receiving yet another "property" that will look more like discarded military detritus (23 acres of concrete slabs and roads leading to nowhere) than a public park.

My responses to those concerns are as follows:

First – the “return it because it belongs to us” argument. Sorry, but our system of government doesn’t work like that. The Department of Defense represents a distinct branch of our federal government that is empowered to act in its own interest and for the benefit of its own employees. Although there is a certain logic to this argument, the existing laws do not reflect or support it. Distinct branches of our government are allowed to hold title to the property and may use it as they wish, subject to local and federal laws. The Navy/DOD purchased that property many years before Discovery Park was established and they are entitled to use it as they see fit. As long as existing laws are obeyed.

Second - the private homeowner's argument. Critics would say this is selling off a public legacy. Rich people who can afford it, get to live historic homes, insulated from the intrusions of the city. The rest of us poor blokes have to live in plain old residential areas. Well, I say get over it. Welcome to the new reality of America at War and all answers come from the private sector. Any way you cut it, these homes were going to have to be "privatized". If the City had taken them over, maintenance costs would have rapidly forced them into revenue generating mode. Artist communities and community centers don't generate much cash, and does Magnolia really need 26 community centers or artist communities? No, the private market would have been used in some way, only I suspect the City's method would have been a lot messier and more expensive with a much greater impact on the Park.

And why is the presence of private families living in the Park so offensive? We've had essentially the same situation in the Park for the past 30 years, except those families have had a member in the military. No other difference. I think the track record they've established will hold. Those individuals who have the privilege to live in the Park will understand that and will treat it as such. And they will contribute to the overall number of the Discovery Park advocacy community at large. But because of their long-term presence in the park, they’ll have a real stake in the Park and its welfare and be motivated to advocate for its protection.

Conclusion: I’ve found that any significant change that happens in Discovery Park is accompanied by a great deal of hand-wringing and naysaying. This is inevitable and to be expected when dealing with such a treasured and widely shared resource. Any change on this scale contains risk. But in addition to that risk, huge opportunities are presenting themselves. Lots of public input will be sought on the implementation of the process. And if we citizen-advocates provide constructive input to this process, and fulfill our responsibilities by attending meetings and getting involved in a Discovery Park advocacy groups, a better, healthier, more bio-diverse Park will be the result.

So make a point of attending the next Discovery Park Advisory Council, Friends of Discovery Park or Magnolia Community Club meeting. I can assure you these issues will be passionately discussed. And you too can have your say regarding the future of Discovery Park.

PJV - January 2005