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1. What makes this location a desirable location for affordable housing?

This parcel is ideally positioned in our growing and transit-rich Downtown, providing convenient access to jobs, schools, parks, and other services. This accessibility can reduce transportation cost burdens and support improved community health outcomes. It presents a unique opportunity to deliver new homes and potentially public amenities or community space.

2. Why is the City considering this type of partnership with Bothell United Methodist Church?

Washington state is experiencing a housing crisis. Bothell City Council has prioritized creating more long-term affordable housing opportunities, and we must plan for ways to meet housing targets established by Washington State HB 1220, the Growth Management Act, and the Puget Sound Regional Council. Often, affordable housing developments are more successful if cities, government agencies, and community-based organizations partner, and the City recognizes and values Bothell United Methodist Church’s long-standing legacy of community services and support in Bothell. 

3. The City has been working on a Letter of Intent (LOI) with Bothell United Methodist Church. What is an LOI and how is it different from a Purchase and Sales Agreement?

An LOI is a non-binding agreement between two parties. It is often used in real estate to get two parties on the same page before moving forward to a more formal Purchase and Sale agreement. While the letter of intent is not legally binding, it demonstrates a basic level of commitment that can help negotiations without the need to focus on minor details that can be ironed out later. 

If City Council approves an LOI, the next step would be to negotiate a Purchase and Sale agreement (PSA). A PSA is a document written up and signed after a buyer and seller mutually agree on the price and terms of a real estate transaction.

4. What is included in the draft LOI currently being considered by City Council?

Some of the highlights of the full draft LOI are: 

• The City is asking Bothell United Methodist and developers to maximize the number of affordable rental homes built on the property, thereby increasing benefits to the public. To help with development capacity, the City is proposing that a development agreement be done to provide flexibility in zoning and development regulations. This could include maximum building heights, maximum building floors, maximum building length, and minimum off-street parking. 
• Describes an arrangement in which Bothell United Methodist will own the land and have a ground lease with Bridge Housing. Currently, it is expected to deliver approximately 200 units of long-term affordable housing operated by Bridge, with an indoor community area, human services offices, job training space, and community meeting areas operated by BUMC or an entity created by BUMC. 
• The parcel will be transferred at no monetary cost to Bothell United Methodist, recognizing and accounting for public benefits provided to the community by BUMC.  
• The City is not expected or obligated to provide any future support, financial or otherwise, to BUMC or Bridge for any part of the project. 
• Once the LOI is finalized, the City and BUMC will work together to finalize the Purchase and Sale agreement within 90 days. If a Purchase and Sale agreement is finalized, BUMC will then have five years to secure funding and meet all requirements of the agreement. If they are unable to do so, the property will not be transferred to BUMC.

5. How much is Lot P South currently worth?

The City has just recently completed the cleanup, so it has not actively marketed this parcel. However, the City did have the property appraised in June 2022, when the fair market value was estimated to be approximately $6M.

6. How much money have we spent on P South to date?

Around $4M, including purchase, clean up, and legal services. This does not include the city cost for streets, utilities, and other infrastructure improvements made in the area. Those costs were intended to be reimbursed by the new owner when property within the area is developed. It also does not include staff time. 

7. Has the City considered soliciting competitive proposals to give other affordable housing developers an opportunity to participate?

City Council recognizes BUMC's long-standing community service and values its steadfast interest in delivering affordable housing and needed community services to Bothell’s residents. BUMC's history and involvement in our community make it uniquely poised and well-equipped for this partnership. 

8. What types of homes and income levels will be in this development?

We don’t have all of these details yet, as we are only in the early phases of a LOI, but it is expected to deliver approximately 200 units of affordable housing. We do know that long-term affordable housing opportunities will be provided to households of various sizes earning less than 80% of the area’s median income (AMI).

9. How long will it take for the new homes to be built?

Once the LOI is finalized, the City and BUMC will work together to finalize the Purchase and Sale agreement within 90 days. If this happens, BUMC and Bridge will then have five years to secure funding and meet the requirements of the Purchase and Sale agreement before the land will be transferred to BUMC.

10. How soon will City Council make a decision about this?

City Council discussed this decision during a June 25, 2024, study session and could potentially take action on the LOI later in the summer or early fall of 2024.