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Redmond advances memorandum of understanding with Bellwether Housing for commercial condo at Overlake Village project
Summary
Council heard details and questions about a memorandum of understanding for the City of Redmond to acquire a ground-floor commercial condominium in Bellwether Housing’s Prisma mixed‑use redevelopment near Overlake Village light rail station; staff requested placement of the MOU on the May 20 consent agenda.
City staff presented a memorandum of understanding with Bellwether Housing that would have the City of Redmond acquire a ground-floor commercial condominium in the Prisma mixed-use development near the Overlake Village light rail station, and requested the item be placed on the May 20 consent agenda.
Deputy Director Sarah Fee Allen said the draft MOU is a precursor to a purchase-and-sale agreement that staff expect to bring to council for approval in the third quarter of 2025. The city has included acquisition dollars in the capital improvement program and staff are pursuing grant funding to supplement the investment. Allen said Bellwether will apply in June to the Washington State Housing Finance Commission (WSHFC) for project financing and WSHFC requires commitments of financial sources as part of its application.
Allen described the site as a ground-floor condo space within Prisma, the 328-unit Bellwether affordable housing development adjacent to Overlake Village light rail. She said the building is not expected to open until 2028 and that “staffing and programming for the space will be taken up with the city council at a later date as part of our next biennial budgeting cycle.” Parks Deputy Director David Chuchak and David Amble, the city’s real estate manager, joined staff to answer council questions.
Council Vice President Forsyth asked whether the city would become a member of the condominium homeowners association (HOA). Amble said the city would be “a member of the HOA” and likely part of a five-member board the association will establish, and that staff added HOA governance language to the MOU and will further address details in the purchase-and-sale agreement.
Councilmember Nueva Camino asked why the city could purchase a commercial condo while there has been limited condo housing production for residents. Amble and Deputy Director Allen explained the ground-floor space is zoned commercial and the city would be buying the commercial condominium interest (not residential units). Allen noted the city already owns a similar model: the Together Center is part of a condominium association in which a ground-floor unit houses a human services hub.
Councilmember Salahuddin and others noted recent state legislation intended to ease condo liability and potentially increase condo production statewide. No council members objected to placing the MOU on the May 20 consent agenda; the item will return then for formal adoption.
