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City weighs Lot 10C acquisition as receivership sale, seeks EPA protections; objects to transfer of 'declarant rights'
Summary
Mayor Hopkins said the city paused spending on Lot 10C because of contamination liability and is pursuing a Prospective Purchaser Consent Decree (PPCD). City Attorney Jennifer Robertson said the city objects to transfer of declarant rights to TerraCotta because the covenants were not properly approved and conflict with the master plan; the court may delay an April 24 hearing to May 8 to allow negotiations.
Mayor Hopkins told the council the City paused additional spending on acquiring Lot 10C after legal costs surged and because the parcel may carry environmental contamination risk. He said the city is pursuing a Prospective Purchaser Consent Decree (PPCD) from the U.S. Environmental Protection Agency and the Washington Department of Ecology to limit the City’s liability for prior contamination as part of any acquisition.
City Attorney Jennifer Robertson updated the council on the Point Ruston receivership case and TerraCotta’s proposed purchase. Robertson said the proposed transaction would transfer broad "declarant rights" to TerraCotta that the City opposes because, she said, "the covenants tied to those rights were never properly approved by the City and conflict with the existing Master Development Plan and prior entitlements," including parking requirements. Several parties have filed responses; Robertson said the receiver proposed delaying an April 24 hearing to May 8 to continue negotiations and potentially eliminate centralized control tied to those declarant rights at closing.
A member of the public, Sophy Englund, urged the City to increase transparency about parcel ownership and the receivership and to avoid rushed rezoning or master-plan changes that could disadvantage community interests. Mayor Hopkins said the City has not yet decided whether to accept Lot 10C and is continuing due diligence.
Next steps: The City will continue legal due diligence, pursue a PPCD if feasible, and monitor the receivership hearing schedule; no acquisition decision was made at the meeting.
