A large planned unit development on Lea Hill held up by a lawsuit that its developer filed against the City of Auburn two years ago can get rolling again.
On Tuesday, Auburn City Council members unanimously approved a settlement agreement with Kent 160 LLC, developers of the 300-plus-home Verdana PUD on 124th Avenue Southeast west of Auburn Mountainview High School, that will allow the developer to begin selling lots. Council action followed a 10-minute executive session.
The property is notable for the infrastructure poking out of the ground, but it is also unique in that while it remains part of the City of Kent, it is entirely surrounded by Auburn as a result of the 2007 annexation election. When Kent 160 LLC first proposed to develop the property, it was in unincorporated King County. At that time, it asked for sewer utility services from the nearest purveyor, which was the City of Auburn. The project includes property that the City of Kent has approved for commercial development. Kent 25, LLC, an affiliate of Kent 160, owns that commercial property.
Auburn agreed to supply the services but required that the developer oversize the main sewer line and build an enlarged pump station to serve not only Verdana but two existing developed areas in the city, the White Mountain Trails Sewer Basin and the Rainier Shadows Sewer Service Area. Kent 160 built the regional sewer facilities under protest and filed a claim against the City on Aug. 5, 2008, seeking to be paid back for having had to construct the regional line and pump station as opposed to the smaller facilities that would have served only Verdana.
Tuesday’s agreement addressed the over-sizing costs to the evident satisfaction of both parties.
Prior to Tuesday, the proposed settlement said the City of Auburn and Kent 160 were to have determined the amount of a 20-year latecomer’s agreement, which would have allocated a fair share of the costs against the properties in the area. Now the agreement says the amount will be based on the developer’s actual costs of constructing the sewer line.
According to the agreement, the City of Auburn will pay $1.2 million to Kent 160, LLC for the additional project costs.
“I would say this is a fair settlement for both groups,” said Auburn City Councilman Rich Wagner. “The City gets new infrastructure and the right to collect system development charges for a lot of new development in that area. It comes out to be a net gain for the City’s sewer fund.”
“This agreement was a way for us to allow them to move forward and begin to build their development,” said Mayor Pete Lewis. “They have to put in an oversized pump station that will serve the whole area through here because we didn’t want to do it ourselves. If they put in this much development, they have to do something, so we made them oversize it.”
Representatives of 160 LLC were not available for comment Tuesday night.
