Two city hall proposals have a chance to blend

POULSBO — Only one decision was made regarding the construction of a new city hall Wednesday night, and that was to wait.

With just two proposals left on the table, the Poulsbo City Council and Mayor Kathryn Quade agreed to postpone their decision deadline until Aug. 29 so city planning director Barry Berezowsky and city attorney James Haney can work with both the Kitsap County Consolidated Housing Authority and the Pioneer Property Group to create a public-private partnership, with the hope of developing a solution the council and community can agree upon.

The KCCHA and Pioneer Property Group are the final two candidates from the city’s original proposal solicitation in February. The $12.5 million KCCHA plan would place the new city hall next to the Poulsbo Parks and Recreation Center on Front Street, while the $16 million Pioneer Property Group plan includes a parking garage, interior plaza and mixed-use development all on the current city hall site. Under the plan, city hall construction alone would cost roughly $9.5 million.

“I am seeking very hard to find a way that we’ll unite this council,” Quade said. “I have to commend you council members for being one of the most cooperatively working councils in the county.”

Quade said she did not want a split decision on the matter, and saw only two options: a rejection of all proposals for an interlocal agreement between KCCHA and the city, or a combination of both KCCHA and Pioneer Group plans. In researching a fused plan, the city will not be legally forced to re-examine any previous presentations. While exploring an arrangement, it will not rule out either proposal.

City attorney Jim Haney said he is hopeful the city can find a way for the two developers to work together.

“There may be a way to work with these two groups,” he said. “To see if there’s a way to develop a more comprehensive plan.”

Councilman Ed Stern said Thursday he was willing to give the partnership a try, since it won’t close the window on the separate proposals themselves.

“If we can fashion a proposal with KCCHA in the lead, I’m willing to give that a month,” he said. “That’s 30 days to see if we can put together, under the legal and financial constraints, some form of cooperation or compromise that allows this community to move forward as a community with agreement by and large.”

Councilman Dale Rudolph said he agreed with discussing a partnership, as long as the new city hall site remains downtown.

“We don’t want to see who has the most votes in their pocket,” he said. “I’m open to finding a solution we can all agree to as long as it’s really downtown, really within budget and doesn’t take forever… If everybody can get together, that’s a win-win-win.”

Councilwoman Connie Lord said she wanted the council to provide a united front to the community, and urged its members to honor the public’s voting choice, as well as the city’s budget and timeframe.

“We need to stay united as a city,” she said. “Whatever the citizens wanted is what I wanted to honor. Otherwise it’s an exercise in futility… I think this needs to be a unanimous council decision.”

KCCHA director of urban development Gary Tusberg said he wasn’t surprised, and hoped a partnership with the Pioneer Property Group would allow Poulsbo to implement not just a city hall, but a longer, more inclusive vision.

“I think the objective is to get a solution that everyone feels comfortable about,” he said. “They want to marry the public side with the entrepreneurial side. I think that works as a great idea.”

Sean Hallissey of the Pioneer Property Group said while he is open to the possible partnership, he isn’t convinced it’s the best choice.

“We’re open to it, but not 100 percent optimistic that the solution is reasonable or efficient,” he said. “It may or may not yield anything. From our point of view, we won the process. Our proposal was most correct. It responded to what their needs were. I would feel slighted if they reject both (proposals) and build on the current city hall site.”

Hallissey said he felt the Pioneer Property Group’s financial estimates had been misconstrued. Their numbers provided $2 million to $3 million worth of allowances, he said.

“It’s frustrating that we’ve waited until the middle of July,” he said when asked what he thought about the Aug. 29 deadline. “I’m hoping they’re able to make the right decision and do what’s best for Poulsbo. The primary goal is to build city hall. We’re willing to be patient.”

KCCHA and the Pioneer Property Group plan to meet next week to discuss the issue further.

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