SENATE BILL REPORT

SHB 1188

As Reported By Senate Committee On:

State & Local Government, March 21, 2001

Title:  An act relating to authorizing the military department to dispose at public bid of the state armory land and buildings known as the Pier 91 property and acquire replacement property and improvements.

Brief Description:  Authorizing the military department to dispose at public bid of the state armory known as the Pier 91 property and acquire replacement property and improvements.

Sponsors:  By House Committee on Capital Budget (originally sponsored by Representatives Haigh, McMorris, O'Brien, Miloscia, Dunshee, Lambert, Campbell, Delvin, G. Chandler, Talcott, Quall, Reardon, Alexander, H. Sommers, Veloria, Schoesler, Esser, Anderson, Morell, Darneille and D. Schmidt; by request of Military Department).

Brief History:

Committee Activity:  State & Local Government:  3/15/01, 3/21/01 [DP‑WM, DNP].

SENATE COMMITTEE ON STATE & LOCAL GOVERNMENT

Majority Report:  Do pass and be referred to Committee on Ways & Means.

Signed by Senators Patterson, Chair; Hale, Haugen, Kline, Roach, T. Sheldon and Swecker.

Minority Report:  Do not pass.

Signed by Senators Fairley, Vice Chair; and McCaslin.

Staff:  Diane Smith (786‑7410)

Background:  Public land owned by the state may be sold at public auction or by sealed bid to the highest bidder for a price not less than its appraised value.

Summary of Bill:  The Military Department is authorized to sell or exchange the state armory land and buildings in Seattle commonly known as the Pier 91 property.  An independent appraisal of the property must be made by a certified commercial real estate appraiser.  Any sale or exchange of the property must be made to the highest competent bidder for a price not less than the independently appraised value after a call for bids has been published 15 days before bid closing in a newspaper of general circulation in King County.

The sale or exchange is under the direction of the Adjutant General who may proceed only if, in his opinion, the proceeds, together with other funds available to the Military Department, are sufficient to purchase or otherwise acquire other real property for a new armory or readiness center and for acquiring, constructing, furnishing, and equipping buildings and other improvements.  Proceeds of the sale or exchange are transmitted to the State Treasurer and set aside for these purposes.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Removal of leasing authorization is acceptable because leasing is not a viable alternative.  One appraisal is sufficient to establish a floor for the value of the property.  Concerns:  Senator Kohl-Welles expressed concerns of her constituents for the potential of increased traffic, loss of scarce industrial property due to commercial use, and inadequate notice provided for the requests for proposals.

Testimony Against:  None.

Testified:  PRO:  General Timothy Lowenberg, The Adjutant General Military Department.