This item relates to a proposal that has been brought to the City by a property owner, Sarah Soutter, the Bainbridge Island Metropolitan Park and Recreation District ("Park District"), and the Bainbridge Island Land Trust ("BILT"). Ms. Soutter wishes to donate a 10-acre parcel (see Exhibit A-2 attached) to the Park District, which will provide a valuable public benefit by increasing the size of the Grand Forest.

As part of the proposed transaction, Ms. Soutter is seeking to gain ownership of a 30-foot strip ("Strip") of right-of-way that was conveyed to the City earlier this year by Kitsap County. As shown in Exhibits A-1 and 3, the Strip runs north from Mandus Olson Road to the Grand Forest. Ms. Soutter currently uses the Strip as her driveway.

Historically, the County owned the Strip in fee title. See Exhibits 1 and 2. Because the property was surplus to the County's needs, and in consideration of the City's interest in jurisdiction over such "tax strip" property that was previously owned by the County, the County conveyed the property to the City for no cost other than the City assuming jurisdiction and responsibility for the property. The property records indicate that the Strip was never maintained by the County, and that the County never incorporated it into the County road system. The City doesn't currently have plans to use the right-of-way as part of the City's street system.

Under this proposal, the City Council would initiate a right-of-way vacation process via Resolution. As part of that process, if the Council determines that the criteria for a right-of-way vacation are met, including that the vacation is for the public benefit, the Council would vacate the right-of-way.

In that the City owns the property in fee title, under this proposal the next step would be for the City Council to declare the property as surplus to the City's needs, and to authorize the City Manager to convey the property to the Park District.

Under this proposal, the Park District would then transfer the Strip to Ms. Soutter in exchange for public trail easements across the Strip and Ms. Soutter’s other properties (which easements benefit the Grand Forest), as well as an emergency access easement benefiting the Park District.

At the same time, the BILT and Ms. Soutter would enter into a purchase and sale agreement for the 10-acre parcel (“Parcel”) that is owned by Ms. Soutter that will be added to the Grand Forest. Subject to her receiving ownership of the Strip, Ms. Soutter has tentatively agreed to a bargain sale of the Parcel that will include a donation to the BILT worth more than $300,000. When the purchase and sale of the Parcel is complete, the BILT would transfer the Parcel to the Park District subject to deed restrictions that will limit its use to passive, forested open space. 

In sum, the proposal would proceed as follows:

1. The City Council would initiate a right-of-way vacation process by Resolution related to the Strip.
2. If the right-of-way is vacated, the City Council would declare the Strip (which the City owns in fee title) as surplus, and would authorize the City Manager to transfer it to the Park District.
3. The Park District would transfer the Strip to Ms. Soutter, subject to Ms. Soutter conveying to the Park District certain trail easements across the Strip and her other properties, as well as providing for emergency access.
4. The BILT and Ms. Soutter would enter into a purchase and sale agreement for the 10-acre parcel by which she would sell the parcel to the BILT and the sale would include a donation of over $300,000.
5. The BILT would transfer the 10-acre parcel to the Park District, subject to a deed restriction to preserve the property as passive, forested open space.

It is likely that a number of public benefits would result from this proposal, including:

1. The addition of 10 acres to the Grand Forest Park, an increase of 4%, at no cost to the public.

2. Permanent preservation of the Parcel, which has significant conservation values, including a wetland and stream contributing to Issei Creek, mature forest, and sloping terrain that creates a critical view shed for users of the Grand Forest trail system, proximate to two sides of the Parcel.

3. The ability to create a new access trail for the Grand Forest from Mandus Olson Road.

4. The ability to create a loop trail within the 10 acres adding to the Grand Forest trail system.

5. The establishment of an emergency access easement for the Park District to the Grand Forest from Mandus Olson Road.

City staff has included a draft timeline with dates related to the proposed right-of-way vacation. See Exhibit 4. Although the draft timeline is preliminary, it provides a sense of possible timing based on requirements in the City's Municipal Code (Chapter 12.34 BIMC) and state law (Chapter 35.79 RCW).

At this time, staff is bringing the proposal to the Council for initial consideration and discussion.