I was surprised to see an article in the Seattle Times today featuring a photo of one of Renton’s newest apartment buildings under a headline that included the words “Ponzi scheme.”  The Seattle Times story (behind a paywall) describes the far-reaching bankruptcy of  Bellevue firm iCap and their associated LLCs, including Colpitts Sunset LLC which developed the Sunset Terrace Apartment building in Renton Highlands.

Seattle Times iCap bankruptcy story features a photo of the Sunset Terrace Renton Apartment building overlooking the climbing pyramid at Sunset Neighborhood Park

The painful bankruptcy has apparently come as a shock to many investors, who believed that they were loaning money at a fixed interest rate to help build needed housing, and that the loans were safely secured with substantial equity in real estate.

Instead, iCap, Colpitts Sunset LLC, and their other inter-related business holdings have apparently been operating in the red for many months, and have allegedly used new investor cash to cover interest payments to past investors.  This realization has led some investors to file a lawsuit against iCap, and even describe the arrangement as a Ponzi scheme, although the authorities have not called it that at this point.

The lawsuit filing describes the complex nesting of LLC’s that form iCap, and provide some background regarding why investors could have believed these were safe investments.  There are people that have put significant savings into these companies, and have been severely hurt by this.

I’ve also attached the Colpitts Sunset LLC bankruptcy filing document, which includes a matrix of hundreds of creditors, investors, and tradespersons that might be left holding the bag for construction costs of the Renton apartments after the Colpitts bankruptcy.

While this is indeed a sad story for those who have lost their investment money or performed uncompensated work, I am hopeful the Sunset Terrace Apartments and their occupants will be okay.  Colpitts Sunset LLC had sold this apartment complex to new investors last July, around the time they filed their bankruptcy paperwork.  The new investors payed $44,000,000 for the building, and they seem to be doing a fine job of running it.

The details in the lawsuit suggest the apartments in Renton may have been completed in part with money investors thought was targeted at Senior homes in Kenmore and student housing at University of Washington, both projects that have apparently not even broken ground.  If this is the case, this sad situation is another unfortunate reminder about how hard it is to put the money together to fund needed housing in today’s expensive, high-interest-rate environment.

I’m not an attorney, and it is up to the courts to decide whether this was a fraudulent scheme or a case of desperate money managers working to keep a real estate enterprise afloat.  It’s grim news in any case.

Sunset Terrace was sold on July 25, 2023 to Olympia Hotel Group for 44 million dollars, per King County Records

If you vote in Renton, your King County Voter “Pamphlet” arrived with your ballot. It’s a single folded sheet of paper since there is only one item on the ballot.

Many of us wait until we’ve received our King County voter pamphlet, typically a stand-alone booklet, before sitting down with our ballot and voting.

But in this election, there is no reason to wait.  Open your ballot now, and you will find your voter pamphlet.  Since there is just a single item on the ballot, the “pamphlet” is a large page folded up inside the same envelope as your ballot.

The voter pamphlet in the ballot does not have the full text of the initiative, so I encourage voters to go to the online voter pamphlet which does have the full text.  That can be accessed here.

Renton’s former Red Lion Hotel remains boarded-up after being used as an emergency shelter during the pandemic

Former Mayor Denis Law received news that King County is preparing to buy the Red Lion Hotel, and he has written to two of our County Councilmembers to ask them to help improve inter-agency collaboration. King County’s plans appear to be intended to relieve the County of further ongoing costs, while failing to return a hotel in serviceable condition.  Per King County documents:  This property is being purchased to relieve the County of liabilities associated with the License Agreement. The property previously operated as a hotel at this location, is currently vacant, and there are no known plans for the property to be used at this time.

The news that the hotel will likely be purchased by King County with no specific plan to make the property productive motivated former-Mayor Law to speak out for Renton on this topic.  Here’s his full letter to Council Members Upthegrove and Dunn.

______________________________________________________________

Dear Dave and Reagan,

As you are well aware, the homelessness crisis in this state continues to be one of the most frustrating issues with the public. Despite spending literally billions of dollars in tax dollars, the numbers continue to grow. There obviously are no easy solutions but one thing is certain: merely dedicating billions of taxpayer dollars has not made any progress to date.

I strongly feel that a poorly executed plan to decentralize Seattle’s homeless to suburban cities during the beginning of the COVID crisis, including taking over a hotel in Renton, proved to be a total failure that continues to cost taxpayers millions of dollars. This is only one of many such projects and we’re talking about millions of dollars for the Renton location alone.

As you know, the County, operating under a, “declaration of emergency,” took over the Renton Red Lion Hotel in April, 2020, to house up to 200 chronic homeless individuals with a goal to help stop the spread of COVID. This was done with no input from city leaders, which was legal due to the emergency declaration, but totally inappropriate and lacked in any sense of collaboration. To be fair, the COVID crisis was an emergency since everything was shutting down as the pandemic and fear spread like wildfire across the country. However, there was no effective plan of managing and serving this population that was relocated to the hotel and the consequence was considerable. Renton police and fire were overwhelmed with emergency calls for service at the hotel, from arson fires to assaults and other crimes. Local businesses were severIy impacted and in the end, upwards of $18 million dollars in damage was done to the hotel. The county’s contract agreement with hotel owners obligates you to return the hotel to its original condition, which has created another very costly challenge.

The homeless tenants were moved out of the facility within 16 to 18 months, around September of 2021. Fast forward to today, 26 months later, and the hotel remains boarded-up and surrounded by cyclone fencing. This is a major gateway to the city and has remained an eyesore for all this time. To make it worse, the County has continued to pay the owners of the hotel $330,700 per month in lease payments, more than $8.5 million since the buildings were vacated.

I must admit that the numbers I have may not be totally accurate, but they have not been disputed during conversations I have had with a couple county council members. The reason for my angst now, in addition to the hotel remaining an eyesore at the entrance to Renton, is a proposal before the county council to purchase the building. It’s my understanding that this is due to the huge amount of money required to repair the building, and there is no reasonable way the county can justify paying these repair costs and come away with nothing. The purchase price is $36,200,000 and to my knowledge, there has been no public discussion regarding this expenditure. This price is essentially for only the land since it’s likely the buildings would need to be demolished for new development. Here is some of the justification made to the county council for authorizing this purchase:

King County’s “Rationale for transaction:” Under the License Agreement the County is responsible for damages caused by the County’s use. While being used as a quarantine site during the COVID-19 pandemic, guest rooms, and common areas were extensively damaged. Damage ranges from broken furnishings such as mirrors and lighting, to soiled carpeting, to water damage due to demising walls and ceilings from over run toilets and bathtubs. There is also damage from an intentionally set fire in November of 2020. The estimated cost to restore the property to the condition contemplated by the License is $17,920,000. In addition, the County is paying $330,700 per month under the terms of the License. Acquisition of the property will relieve the County of the liabilities of the License.

In the end, taxpayers will pay upwards of $70 million dollars or more for this one initiative to address homelessness in King County. There’s no accounting on how many other similar scenarios exist, and not a surprise that billions of additional tax dollars continue to be budgeted by the state, King County and Seattle to address homelessness. There have been a number of initiatives created by these entities that have been disbanded due to a lack of funding or adequate outcomes. Again, there is no question that this is a very complex crisis, but there seems to be a need for better collaboration between government agencies as well as more public transparency on total costs and results.

I appreciate that you both have taken steps in the past to address the negative impact this effort has had on the Renton community and local businesses. It seems apparent at this point the county has few options remaining other than spending millions more to resolve the Red Lion issue. Finally, I feel it’s totally inaccurate and unfair for housing advocates to label cities as uncaring or unwilling to help vulnerable populations when they challenge the process of addressing homelessness.

I strongly encourage you to work with Renton’s elected officials on future plans for the Red Lion site.

Thank you.

Denis Law

Diners can sit range-side, and take turns driving golf balls for score, in a variety of games.  Scores are tallied on the monitors.

Puget Sound Business Journal recently reported that the Topgolf property is up for sale, but that does not mean the restaurant and lounge with a high-tech driving range is going anywhere.

Topgolf has been a popular business, and has a long-term lease that will transfer with the property to any new owner. Here is the property listing:

The property sold for $27.5 million in 2019 shortly before the Topgolf was built, and it had previously sold for $10 million in 2010 when Boeing surplussed it.  (In decades prior, the site held Boeing’s sprawling 10-80 and 10-85 engineering buildings, where Renton Boeing jets were designed.  I worked in both buildings at different times.)

Sales history for the Topgolf property, previously the site of the Boeing Company 10-80 and 10-85 engineering buildings

Tax history for Topgolf property

My opponent’s contributions come primarily from outside Renton (addresses reported to PDC.)

My opponent has been falsely implying on her campaign websites that I am receiving more money from donors outside of Renton than she is.  In a recent video she says “It’s very unfortunate that outside money is being spent in our local election here.”  In a related post she says “Renton needs a Renton solution,” and claims she’s the one running a “Renton community centered campaign.”

Her claim is ridiculous, as the majority of her own campaign contributions, $32,030, have come from sources outside of Renton (like the Puppyland lobbyist in Issaquah that gave her $500).  In contrast, my campaign has accepted only $7,540 from outside of Renton, generally from people who work or own a business in Renton.  The data is publicly available on the PDC website, and I’ve summarized it in the charts above and below.

My views are very closely aligned with Renton residents, 77 percent of who have put either crime and safety or affordable housing at the top of the priority list in a recent city survey. Many of those engaged in trying to build affordable housing have been plagued by theft and vandalism at job sites, like a local contractor I know who has had his work truck and tools stolen three times in the past two years, once from Valley Hospital.  Not surprisingly, those who are working to build affordable housing have made it clear they support my agenda for a properly-staffed police department and sensible laws that protect businesses, over my opponent’s agenda which reflects her own “fear of law enforcement” and concerns about “over-policing” that she detailed in the Renton Reporter on April 27th.

These builders have independently informed Renton’s residents of their support of my agenda through mailers, expressing a strong desire for me to come back to Renton City Council and help put the city back on a healthy, thriving course. I knew nothing about these planned expenditures, and by law they are separate from my campaign.  But even if hypothetically this “outside money” was part of my campaign, the money I received from outside Renton in my campaign would STILL BE LESS THAN THE MONEY MY OPPONENT HAS RECEIVED FROM OUTSIDE RENTON.

In summary, my opponent is once again intentionally misleading the public about basic, easily-discoverable facts.  This calls into question both her basic fairness and her effectiveness at representing Renton regionally– if she can’t be trusted to be open and honest, how can she put Renton’s best case forward?

I’m honored to have a majority of our Renton City Council and our Renton Mayor supporting me in this campaign, while my opponent has no Renton city elected officials supporting her reelection bid.  Our relative capacities for sticking to the truth are part of the reason for my broad support from Renton’s leaders.

My contributions come primarily from inside Renton (addresses reported to PDC)

When Sound Transit 3 was approved by voters, the package included a multi-million dollar planning study of a future light rail line to Renton.  While I was on Council I helped hire a consultant to get this study started, and we now need to urgently get it finished.

We will likely see a proposed Sound Transit 4 in the next two to three years, as Sound Transit has been forced to make compromises on planned service and schedule due to rising costs and pandemic impacts.  Polls show that voters in Seattle and surrounding areas remain highly in favor of mass transit (84 percent in Seattle), so any proposed Sound Transit 4 package is likely to pass, whether or not Renton is included in it or in favor of it.

A Sound Transit 4 package is likely to speed-up already approved projects, and Renton should insist on not waiting until 2040 for a light rail station.  Given Renton’s already large 107,000 population, with thousands of new housing units currently in planning or construction, and zoning for tens of thousands more, a Renton light rail station should be targeted for 2030 or earlier.

Renton officials must assure that the voter-approved Renton planning study is completed, and that a Renton light rail connection is included in any future Sound Transit package. 

The station location(s) should be identified,

The preliminary right-of-ways should be determined

The construction and operations costs should be estimated. 

Ridership projections should be completed

Renton’s past and future contributions to Sound Transit should be professionally calculated, so a strong regional equity case can be made to include the rail line in any future packages

Renton’s elected officials should then work together to assure the package is included in any future Sound Transit 4 initiative

As I’ve covered in other blog entries, Renton taxpayers have already contributed an estimated one to two billion dollars to Sound Transit, and we’re obligated to spending billions more.  Many Renton officials have worked hard to get this planning study authorized and underway.  Getting our deserved light rail line will require that the council work together as a team, and keep the Renton light rail planning study at at the forefront so that we don’t run out of time.

We must work collaboratively on getting light rail to Renton, or Renton taxpayers will be paying billions for decades for most other cities in our area to have high speed rail transit while Renton gets left out.

Getting the approved planning study completed and Renton light rail line added to a future Sound Transit proposal will require strong collaboration by Renton’s elected officials.  The plan I’ve outlined here was co-created with the many elected officials supporting me.

I am honored to receive the endorsement of the Renton Police Guild. In informing me of this endorsement, the Guild President credited my long, successful track record of working with Renton Police on public safety as the basis for their endorsement.

As a Renton City Council Member for 28 years, I helped fund and hire needed police personnel most of the years I was on council, and did my best to protect police personnel from layoffs during recession periods. Hiring through the years included patrol officers, detectives, evidence technicians, crime analysts, DV victim advocate, K9 units, and others who work day and night to keep our community safe. The overall police department and the city itself more than doubled in size while I served on council.

Many years ago I helped develop and implement improved recruitment and hiring policies to increase the diversity of our new-hires, and help the department reflect the evolving demographics of our city.  (This was part of an award-winning city-wide inclusion program that we continually improve and refine as part of the process.)

When our police department outgrew the Mill Avenue Police Station, I helped authorize the funding and construction of our current police station as part of a new city hall complex. More recently I helped add an advanced new Police Training Facility to the complex.

During my years of service on council I consistently embraced technology to improve officer safety and effectiveness, such as modern vehicles, improved communication systems, non-lethal weapon options, and ever-improving forensic/investigation equipment.

I also helped draft numerous changes to city ordinances and advocated for changes to state laws as needed to improve the safety and security of all the residents of our city.  I worked closely in partnership with our residents, our city attorney, elected colleagues, and our police in adjusting these laws. When drafting laws and setting policy, I always kept my eye on our ultimate public safety goals while also working to exhaustively anticipate the fairness, public burden, enforceability, and possible unintended consequences of any new laws we passed.

I am eager to bring my experience, care and diligence back to Renton City Council.  I’m grateful to Renton Police for giving me their support in my 2023 campaign.