Committee to send Hailstone Trust River Trail purchase to council after seller raises price

The Snoqualmie Community Development Committee voted to send a revised purchase-and-sale agreement for the Hailstone Trust parcel — part of the planned River Trail corridor — to the full City Council for consideration on May 27, after the property seller rejected the city’s original appraisal-based offer and returned a higher counteroffer.

Director Davis told the committee the seller declined the city’s initial appraisal-based offer of $360,000 and is now willing to accept $405,000. "I think this is a really, important piece of property to acquire because it's there along the railroad, and it is very close to the river," Director Davis said. She said King County Flood Control District funding and a Conservation Futures grant would cover the additional roughly $45,000 difference and that those same funding sources will cover demolition and tenant-relocation costs.

The committee’s discussion focused on three fiscal and procedural questions: the change from the appraised amount to the higher counteroffer, where demolition and tenant-relocation costs will be paid from, and how the transaction will appear in the city budget. Director Davis said the demolition and relocation costs are separate from the purchase price and "are covered by the King County Flood Control District and Conservation Futures or CFT." She also said the budget currently shows the appropriation but that those amounts will be reimbursed from outside grant funds; she offered to bring Gianna from finance to the Council meeting to explain the accounting.

Committee members asked about appraisal methodology. The committee was told the appraiser compared five similar properties and calculated an average market value of $460,000, then subtracted about $100,000 for deferred maintenance to arrive at the $360,000 appraisal figure. Councilmember Johnson expressed concern about the principle that governments should not pay more than appraisal and asked whether the city could be seen as exceeding its limit; Director Davis said King County and the grant administrators viewed the revised $405,000 offer as still "in the realm of reasonableness" given the city’s acquisition urgency.

Committee members also recommended keeping the item off the council consent calendar so the transaction and funding details can be discussed in public. Chair Louis Washington and other members said they want staff and finance to be prepared to answer questions at the Council meeting.

Next steps: the item was placed on the full City Council agenda for May 27 for further discussion and a possible decision. No formal committee vote tally on the referral was recorded in the transcript; the committee agreed to move the matter to council and to prepare staff financial explanations in advance.