THE WINNER, the loser, and the county all appear frustrated with the outcome of a yearlong King County ombudsman’s investigation into proposals to turn an aging county-owned Pioneer Square building into a residence for low-income artists. In a 32-page finding released last week, ombudsman Duncan Fowler said that though the county’s Property Services Division backed ArtSpace’s proposal to buy and renovate the hodgepodge Tashiro and Kaplan buildings across Yesler Way from the courthouse, the winning bid didn’t comply with the county’s own specifications.
It also failed to meet other requirements, “improperly giving an unfair advantage to ArtSpace” over the bid loser, the Low Income Housing Institute (LIHI), Fowler says. The nonprofit group had claimed the bidding was politically rigged in favor of ArtSpace—which the locally connected, Minneapolis-based housing group hotly denies.
Fowler also states that the county prosecutor limited the breadth of his own probe: Though the prosecutor’s office played a key role in approving the ArtSpace bid, it prevented Fowler from seeking an independent outside legal opinion as he does routinely in other cases.
Insiders say a lawsuit looms if the county does not satisfy LIHI for what Fowler flatly determined was a “flawed process.” LIHI director Sharon Lee, who has complained of political interference throughout the procedure, couldn’t be reached for comment but earlier told Seattle Weekly that when she first complained about the bid to County Executive Ron Sims, she was told, “I had crossed the line and my long-term relationship [with the executive] may suffer.” Sims’ office denied making the threat.
ArtSpace’s $2.6 million offer for the wedge-shaped, surplus buildings was approved by the County Council last December, even though Lee had already filed a complaint of unfair bidding. The two adjoining buildings, bought by Metro as part of the bus tunnel project 13 years ago and used mainly to store surplus property in the basement, will be turned into 50 low-income “live-work” spaces (see “War of the Do-Gooders,” Dec. 27, 2000).
In his findings, Fowler made the unusual recommendation—he has no authority to demand—that the county reimburse LIHI for costs of developing its bid. The county, however, rejected the suggestion, disagreeing almost down the line with the findings. The next move is apparently Lee’s.
Rick Anderson
