Burien lawmakers raised concerns Aug. 15 about how the state sales tax credit could be used to address costs for roads, stormwater and parks if Burien annexes White Center.
City Manager Mike Martin said staffers are still trying to clarify what expenditures would be allowed for capitol costs using the state money. He noted that the funds cannot be used for new capitol construction but maintenance costs may be covered.
Berke, the city's consultant, has reported that annexing White Center would not hurt Burien's ability to balance its budget. The finding is dependent on receiving a maximum $5 million per year state sales tax credit for ten years.
Councilman Jack Block Jr. also said that King County and the King County Housing Authority should agree to more mitigation funding before Burien agrees to annex White Center.
"Much as I love North Highline it's a no-go if King County doesn't pay more," Block declared.
Councilman Gordon Shaw agreed it would be a "deal breaker" if the state does not allow Burien flexibility in using the tax credit.
"If they want us to take over (North Highline) let the city manage it the way we do," Shaw declared.
Council members also heard an update on the marketing of the Burien Town Square condominiums from David Ploger, senior vice president of ST Residential. ST is the group handling the sale of the condos.
Originally, ST had announced they would begin marketing the condos on Aug. 1 but Ploger said his group is now aiming to begin a public marketing launch by the end of the year to new buyers.
News reports earlier this summer said condos would be offered for about 35 percent less than the original prices before the economic downturn, but Ploger said Aug. 15 the discounts would probably be more than 35 percent.
Ploger said his group is currently working on settlement contracts for the 37 potential buyers who had previously signed contracts and put down earnest money to buy some of the 118 units.
"We thought it was important to let them have first crack at them," Ploger noted.
Shaw asked if the potential buyers would lose their earnest money if they don't make a deal with ST.
"In our opinion, those were legal contracts,' Ploger said.
He added, "We feel the people could have closed on those units."
But Ploger added the buyers would not forfeit all their deposit money if a deal is not made.
Councilman Gerald Robison, who is also a real estate attorney, said he has talked to some of the buyers who received the settlement letter from ST.
In a somewhat testy exchange, Robison declared, "It seems a little shaky. It's not very friendly to people who have hung in there for four years."
