www.washingtonports.org/member_resources/publications/L -
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Published on: 7/1/2007
Last Visited: 1/13/2008
Derrick Urquhart, Manager of Industrial Real Estate, recently discussed criteria used by the Port of Tacoma when determining whether to purchase property.
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"Sometimes, it's the properties with mid-grade environmental concerns that are the toughest to develop," said Urquhart."There have been several examples recently in Tacoma of properties that are on valuable land that's zoned for heavy industrial - but the environmental issues are more than a private developer can accept."Urquhart shared a recent example: land in Tacoma's Nalley Valley.
Nalley Valley was once a thriving industrial area, but now, many facilities are shuttered and derelict.The area also features smaller parcels of property more attractive to mid-scale development.But Urquhart has watched for two years as various developers place a particular parcel under contract, only to see the deal fail because of the environmental clean-up requirements.
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The Frederickson Industrial Area, southeast of the Port of Tacoma, is a good example, said Urquhart."Years ago, when the Port began purchasing property in Frederickson, others took note and began to see the area as prime for development.Real estate professionals know that a public agency won't invest resources in area without strong data supporting the potential for growth."
The Port's recent move to purchase so many pieces of property - and to use eminent domain if necessary - was surprising in some ways.Typically, the threat of eminent domain emerges when negotiations have failed.But Urquhart doubts the Port will have to use eminent domain for any of the 22 parcels, as the negotiations have been going well.