Sound Transit - Presentation - Angle Lake TOD - 09-24-20

Angle Lake Station TOD
Suitability for housing and development strategy
Board Meeting
9/24/2020
Why we are here
• Seeking action on declaring two surplus properties
as suitable for the development of housing and on
the development strategy.
2
Context
Statute on surplus property
All applicable Those determined as At least 80% of those

surplus property suitable for housing suitable for housing
must be offered to
qualified entities for
affordable housing
Conceptual depiction
4
• If a qualified entity receives surplus property through the first
offer, then a minimum of 80% of the housing units constructed
on that property must be dedicated to affordable housing
100% 80%
Housing Required as
units created affordable to
on property ≤80% AMI
Retail Space
5
80 80 80
≥80% of suitable ≥80% of created units Units must serve
property must be first must be affordable those earning ≤80% of
offered for affordable area median income
housing creation
6
TOD Program highlights
• 1,500+ total housing units, Housing unit production
1,176 affordable (built, under construction, or awarded)
• $600+ million in total

development costs Current forecast*
• $63 million in TOD

revenues (closed,
awarded, or out for bid) Board approved
• 100% of property suitable

for housing first offered to 0 250 500 750 1000 1250 1500 1750
qualified entities Built Under construction Awarded
7 *Exact number may change based on unit mix in final project

Federal investment in property
Sound Transit often acquires property with the
support of federal funding
• Any disposition needs FTA approval and must follow federal
processes
• Typical disposition requires competitive marketing of property
and receiving fair market value
• Some TOD may be eligible for the FTA Joint Development
program, which is a more flexible tool than disposition
• Discounting federally-assisted property is complicated, often
property and project specific
8
Angle Lake
Property background
North site
• 33,529 square feet
• $2.2+ million value
• Federal interest: 80%
South site
• 27,507 square feet
• $1.75+ million value
• Federal interest: 86.5%
10
Engagement outcomes
What we did
• Targeted stakeholder group meetings
• Community event tabling
• Rider intercepts
• Developer request for information
What we heard
• Support for housing, including affordable
• Support for customer amenities
• Support for retail space, including cultural-specific retail space
11
Action 1 - Suitability for housing
Recommendation: Properties are suitable for the
development of housing
• Legally permissible to build housing.
• Physically possible to build housing.
• Economically reasonable to construct market or affordable
housing.
• Community support for housing at sites.
• Environmental conditions don’t preclude housing, but may
need to be addressed.
12
Action 2 & 4 - Offering strategy
Recommendation: Offer North Site to Qualified
Entities; Offer South Site more broadly to the market
• Funding affordable housing is relatively difficult at these sites.
• North Site is better candidate for FTA Joint Development, which
may be a necessary tool for an affordable housing project.
• South Site would seek to maximize other agency goals, such as
density, revenue, community-serving uses, and ridership.
13
Actions 3 & 4 – Pricing approach
Recommendation: Authorize staff to consider
discounting North Site; Seek full price for South Site
• Land costs are a financial barrier to affordable housing creation.
• Available subsidy extremely limited at this location.
• FTA Joint Development would allow for a partial discount without
financial repayment to FTA.
• North Site discount would be subject to later Board approval as
part of a term sheet with developer.
• South Site would be required to pay fair market value.
14
Recommended Actions in summary
North site
• Declare suitable for
housing
• First offer to qualified
entities for affordable
housing
• Allow for discounting of
property value for
affordable housing
15
Recommended Actions in summary
South site
• Declare suitable for
housing
• Offer to open market
• Require fair market
value (±$1.75M)
16
Tracking the 80/20 split for offerings
SINCE STATUTE + ANGLE LAKE
ENACTED SITES
Affordable Housing (5) Affordable Housing (6)
Open Market (0) Open Market (1)
0% 14%
100% 86%
17
Next steps
• Issue request for proposals
for sites
• Return to Board with
outcomes of request for
proposals and any
transaction terms
18
Thank you.
soundtransit.org

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Angle Lake Station TOD

Suitability for housing and development strategy

All applicable Those determined as At least 80% of those

• $600+ million in total

• $63 million in TOD

• 100% of property suitable

qualified entities Built Under construction Awarded

7 *Exact number may change based on unit mix in final project

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