Transparency is critical in development of Snoqualmie Ridge community center

February 3, 2010

By Administrator

By Mark McDonald

As the developer of the retail village at Snoqualmie Ridge, I have grave concerns about how Mayor Matt Larson is handling the proposed community center development. He is jeopardizing the viability of some neighborhood businesses in favor of a YMCA-operated community center, which would clearly duplicate services offered across the street.

I don’t understand why the city would knowingly potentially push an independently-owned, tax-paying business into bankruptcy, while refusing to look at any other viable options for the community center.

The SnoValley Star’s recent article on the community center (“Businesses push alternative plan to YMCA community center,” Jan. 28) doesn’t mention the area’s population and what types of businesses the current and future population could support. When Hebert Research’s study was performed, home sales and population growth were going at breakneck speed. As we all know, today is a different story. The article quotes the Jim Hebert of Hebert Research as stating that to develop the area’s retail potential, it needs large anchor stores, including a grocery store and a fitness club.

This is true — and both anchor stores are presently open for business. Snoqualmie Ridge Fitness and the IGA Ridge Market are open and succeeding in fulfilling the community’s needs.

The Hebert Study also mentions that to make the Ridge a viable retail destination there needs to be a municipality supportive of businesses. How is the mayor being supportive if he would knowingly put Ridge Fitness into bankruptcy by allowing a duplicate business—a YMCA—to open across the street? Not to mention, the duplicate business is tax exempt and thereby contributes no sales tax or business and operating tax to the city of Snoqualmie.

In a time of declining home sales and home values, is it a wise thing to put a tax-exempt business in place of already existing, tax-paying businesses like Ridge Fitness, the Cascade Dance Academy and Early Learning Center?

The mayor has acknowledged such harm could be the effect of a YMCA.

It appears the mayor is now fully vested and it would be difficult for him on a personal level to change direction and look at other viable alternatives, even though I believe that the RCW 35.42.080 requires it to be put out to bid. It appears to be more about keeping the promises he publicly made than about being responsible. However, that is not a good reason to proceed at any cost if it is not in the best interest of the community.

Mark McDonald is the owner and president of Northwest Capital Corp., which developed and manages Snoqualmie Ridge’s retail space.

Comments

4 Responses to “Transparency is critical in development of Snoqualmie Ridge community center”

  1. Derek Young on February 8th, 2010 11:54 am

    I am a SR resident since 2006. I am also a small business owner in a competitive industry. My family and I have also been part of the YMCA for more than 30 years now. My children attend after-school care there, summer camp, and learn valuable leadership skills taught by caring, dedicated para-professionals. The YMCA offers many valuable services, events, and other activities that are of great value to every community. Snoqualmie Ridge has residents, business owners, and visitors of all types, and that’s what makes this area so desirable to live in.

    What doesn’t make it desirable, as you suggest, is business owner’s and developers who support a monopoly for themselves at the expense of us all. Will the YMCA offer services in “competition” of private business owners? They may – ballet, karate, dance, athletics – but that doesn’t mean that every resident or family will make that choice. But at least it’s an option.

    And a pool at the TPC? They already have tiered memberships there – guess who can afford a “pool” membership only? When will “they” be able to use it? It’s not hard to connect the dots between the points the Developers and some business owners want to make – my business was here first, and I don’t like competition.

    Find a way to stay competitive, exploit your niche, treat your customers well, be a good steward in the community. That’s common-sense. Asking for exclusive rights to a service or goods void of competition is non-sense.

  2. Cindy Lou on February 14th, 2010 10:14 am

    In response to Derek young’s letter of Feb 8th, I would like to state:

    I also am a SR resident since 2004. While your involvement and enthusiasm for the Y and it’s programs is evident, I am pondering a couple of things that aren’t clear…

    Are you an active member of the YMCA now and which facility do you frequent?

    What are your membership fees currently for the family?

    Why do you feel the need to have the same facility on the Ridge if you are currently enjoying the benefits you describe, is it the drive time?

    Thanks for clarifying this Derek.

  3. Derek Young on February 14th, 2010 9:30 pm

    My children are both active in YMCA year-round. In Colorado Springs, a YMCA was built less than 5 miles from our home there. We were there multiple times during the week and weekends for the pool, indoor basketball courts, weight room, Parent’s Night Out programs, and other events. I believe we paid $65 a month.

    The closest full-service Y now is in Sammamish. That’s a longer drive and not as convenient or economical to drive to as a neighborhood Y would be on the Ridge. Imagine being able to walk or ride bikes to the facility, or a short drive from nearby neighborhoods.

    As a result, our family only access the after-school and summer programs being offered in Preston and in Snoqualmie. Therefore the need to bring the Y and its complement of services for our community to reality.

    Derek

  4. Ron on February 18th, 2010 2:30 pm

    Derek:

    I also am a SR resident since 2004. In regards to your comments about the business owners along Center Street and their opposition to a tax-exempt duplication of their services across the street, your comments are eerily similar to public comments made by Mayor Larson, especially the monopoly vs. competition argument.

    This is a red herring. Let’s address the “fear of competition” first. It’s not competition in the true sense of the word where two competing businesses are on a level playing field. The YMCA is tax exempt and therefore enjoys an unfair advantage. Why does it make sense for our City to place duplicate services across the street and derive no tax income? How does that make common sense to the taxpayers who will clearly be footing the bill for the additional $10 million in needed capital to execute the proposed YMCA plan? How can the community make a decision to support a plan when we haven’t seen the specifics of the agreement, would the YMCA be obligated to cover the M&O should it not be successful?

    The YMCA of our childhood is different and now it represents a non taxable duplication of services owned and frequented by Snoqualmie residents. The facts of this have been borne by many studies of the YMCA going into affluent areas rather into areas were their services are more needed.

    You address the competition of duplicative service rather simplistically in your statement “They may – ballet, karate, dance, athletics – but that doesn’t mean that every resident or family will make that choice.” In a town of approximately 8000 residents total, we don’t enjoy the luxury of “splitting the pie” and everyone still walks away full and satisfied. The Mayor himself has acknowledged to Center Street tenants that the YMCA will affect these existing businesses along Center negatively. He seems to think that it doesn’t matter that some of these business could fail or become unprofitable should the YMCA plan go through.

    As for the “monopoly” statement, this is right out of Matt Larson’s talking points. The reason there is a single owner of the commercial properties along Center Street and at the corner of Snoqualmie Pkwy and Douglas is this: he was the most qualified and only one willing at the time to take on the risk in buying the properties from Quadrant! From a development standpoint, Snoqualmie is higher than most any other small city in Washington to do business in. The costs of developing property here are higher due to requirements of the Snoqualmie Ridge Design Guidelines, which are very specific. Funny thing though, Mayor Larson doesn’t feel those same design guidelines would apply to the YMCA operated CC…the YMCA plan would not add any additional parking to the already highly trafficked Neighborhood Retail Center. I understand that a variance has been issued for the Community Center that would allow it to not be subject to the parking requirements as required of other developers on Snoqualmie Ridge. Since the YMCA’s own study cited that 70% of the users of this facility will be coming from OFF the Ridge, does that make sense to further impact our core neighborhood district with an estimated 50- 100 cars looking for a space to park daily? Not to mention that 70% of the anticipated users would not be subjected to the tax increases as they would live outside the City limits! Sounds more like a facility is needed in the outlying areas where the demand exists according to the YMCA study. The problem there is that the YMCA would actually have to pay for the land and the construction rather than counting on the City’s mitigation funds and a tax levy paying for the whole facility.

    What is the alternative to this one owner and the accusations of a monopoly? (maybe we can call it the Center Street Cartel to really spin it!) All 6 phases could be sold individually and then the City would have 6 different owners, all of them competing for the same tenants. Sure rents may drop in the frenzy to bag another teriyaki or nail establishment, but vacancies will surely soar as well. Tax revenues will drop. Less diversity will exist, as each building owner would make their own decisions on what fits for “their” needs first, rather than the commercial district as a whole. In another words, this scenario is a COMPLETE disaster for the SR community and the City’s tax coffers!

    Common sense dictates that the Mayor and the Council should step back and examine other options that won’t duplicate services and raise our taxes; while encouraging the tax paying businesses that have already invested their blood sweat and tears into this community. Instead the recent comments by the Mayor indeed seem to show his intent, “The city of Snoqualmie is finalizing an agreement with the YMCA of Greater Seattle to operate the Snoqualmie Community Center, planned since 1995.”

    In researching the plight of other towns facing similar moves by the YMCA, I came across something that surprised me in its similarity to our current situation in Snoqualmie. In Flagstaff Arizona in 2002, a YMCA was proposed for the area. In an online article, Dan Frazier is quoted as stating: “In reviewing what has transpired in the long struggle to bring a YMCA to Flagstaff, I get the impression that some on the city staff and some members of the City Council have essentially been making backroom deals with the YMCA. In late January, the city drafted a lease agreement with the YMCA prior to any public discussion by the City Council. In February, just two weeks after a contentious City Council work session in which the YMCA proposal was discussed publicly for the first time by the Council, Mayor Joe Donaldson all but promised to give the YMCA city land, telling the Arizona Daily Sun, “Yes, we’re going to have a Y in Flagstaff. … We’re all pretty well committed to it. But the location seems to be what we have to decide on.” The statement was surprising considering that the City Council had not publicly made any commitments to the YMCA. ” Sound familiar?

    Matt Larson has consistently taken the same approach with his constituents, saying it’s all be a done deal. Where are the specifics? Why are they only promised after they sign the deal?

    Snoqualmie tax revenues are down. In a time where the economy continues to drag us towards higher taxes on everything from our homes, incomes, gasoline and soon bottled water, should we try to concentrate on what’s most important to fund as a community; the SCHOOLS. Schools are a main reason people are attracted to an area, not a YMCA. A good school system improves and a bad school system detracts from our property values. The Mayor and Council need to set their priorities straight and quit piling debt on the backs of the Citizens of Snoqualmie for a pet project when something much more affordable and viable is being presented.

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