Kidder Mathews was selected by the Administration Committee to represent the Health District as its commercial real estate broker, and an initial six-month agreement went too effect on March 1, 2017. While the agreement’s initial period ended on August 31, 2017, it automatically renews for consecutive 30-day terms unless cancelled by either party by providing a 20-day written notice to the other party.
A previous purchase and sale agreement from the City of Everett was rescinded due to the high cost to repurpose the Rucker Building to fit its needs. The Board of Health subsequently agreed to rescind its purchase and sale agreement with VOA of Western Washington at its March 23 special meeting.
The Rucker Building currently remains listed on the market. Staff was asked to bring three options forth for the Board to consider:
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Option #1 – Direct Kidder Mathews to remove the Rucker Building from the market and have staff begin to prepare options for remaining in the building.
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Option #2 – Direct Kidder Mathews to re-engage active marketing of the Rucker Building, as well as scouting out of potential new locations in the Everett core.
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Option #3 – Direct Kidder Mathews to remove the Rucker Building listing for the market and wait 12-18 months before going back out to market.
The Administrative Committee was briefed on April 25 and recommended Option #1. It was noted that the full Board needed to be briefed, as this decision would require full Board action.
The Executive Committee was briefed on April 26 and recommended to forward all three options to the full Board for discussion. On May 8, a Rucker Building Task Force was formed to delve more deeply into the issue.
The Rucker Building Task Force met on July 20, September 26, and November 8. At the November 8 meeting, the task force recommended that the Rucker Building be removed from the market and for staff to begin making plans to remain in place for at least the next 3-5 years. Staff was directed by the Task Force to prepare necessary paperwork needed to cancel the client agreement and listing agreement with Kidder Mathews for full Board of Health review.
Kidder Mathews was notified by phone and email of this recommendation and anticipated next steps. Should the Board at its December 11 meeting authorize the Administrator to sign a letter to Kidder Mathews cancelling the client and listing agreements, the 20-day clock will begin, with official termination on December 31, 2018.
In the listing agreement, item 3(e) specifies that “If, during the term of this Agreement or any extension hereof, Owner removes the Property from the market or the Property is made unmarketable by Owner's voluntary action, Owner shall (1) reimburse Broker for all of Broker's out-of-pocket expenses incurred in Broker's efforts to sell the Property.” Kidder Mathews indicated on December 6 that there are no expenses owed by the Snohomish Health District.