Tri-City Area and Real Estate Blog

City and county officials don’t have all the answers they would like about how many people will come to the Tri-Cities over the next two years as federal stimulus money accelerates Hanford cleanup.

Estimates are that the nearly $2 billion in stimulus cash will support up to an additional 4,000 Hanford jobs over the next two years. It’s unclear, however, how many of those will go to people new to the community

Even without a clear idea of what impacts the build-up at Hanford will have, city and county planners are are fairly relaxed. “We’re not going to do much work on planning for this,” said Kennewick City Manager Bob Hammond. “We’re going to react to what occurs.”

The laid-back approach is due to several factors. For one thing, there’s a little opportunity for planning — contractors already have begun hiring workers, and the flow of money has started.

And officials remember that the last time the Tri-Cities braced for a significant Hanford build-up the impact was less dramatic than expected. Earlier this decade, officials expected an influx of 3,000 employees for work on the vitrification plant project, but many of the jobs went to people already in the community.

But mostly, officials say they don’t need to whip up new plans because the community already is prepared.

“We do generally good planning compared to other regions in the country,” Hammond said. “I think one of the reasons is we’re used to these influxes and changes,” he said, recalling past ebbs and flows of Hanford funding cycles.

Most of the cities and counties have plans to accommodate projected growth for the next 20 years or more. Each recently completed or started projects that were envisioned before stimulus money was headed this way.

For instance, Hammond cited water supplies. 

About three years ago, Kennewick doubled its water treatment plant’s capacity to 15 million gallons a day, up from 7.5 million. Richland, meanwhile, over a 20-year period ending in 2007 increased its water capacity by 4 million to 6 million gallons a day simply by replacing old, leaky water lines.

Pasco will increase its production by a similar amount with a new treatment plant it plans to start constructing this summer. And West Richland is finishing a second intertie with Richland’s water system that will let it meet future demand by buying water from its neighbor.

Roads and highways are a work in progress, but again city, county and state transportation officials feel confident in existing plans.

For instance, the state’s study of accidents at the south end of the blue bridge paved the way for a $16 million project to reconfigure the Highway 240 interchange. Construction is expected to finish by the end of the year.

Many Hanford-bound drivers are among the 60,000 motorists who use the blue bridge daily. That volume is expected to increase to 84,000 to 2029.

Several recent projects have increased traffic capacity in Richland, but more Hanford workers will test those. Richland Public Works Director Pete Rogalsky said traffic signals and a third turn lane were installed at the Stevens Drive intersection with the Highway 240 Richland bypass in 2005. Lanes were added to the south end of George Washington Way in 2006. And the state two years ago widened Highway 240 from Columbia Center Boulevard to Interstate 182.

“All of those provide improved ability to handle congestion,” Rogalsky said. “(Stimulus projects) will give them a little bit sterner test if there’s that much more traffic.”

He also said George Washington Way on some days becomes congested, and that could become worse as stimulus work hits full steam.

Similarly, more Hanford workers may add to existing traffic problems on Road 68 in Pasco. But the city is working to improve that corridor.

And the city, Franklin County and the state all have projects designed to enhance traffic flow toward Richland at the Road 100/Interstate 182 intersection. A new interchange loop and improvements to Road 100 will speed traffic flow. Also, the county plans to extend Road 100 north to serve rural areas and subdivisions along the Columbia River north of Pasco.

The city also plans this summer to develop Powerline Road, initially as a two-lane road, to connect Roads 68 and 100, using $750,000 in stimulus money.

Kennewick’s plans include extending Steptoe Street from Gage Boulevard to Center Parkway later this year, widening Fourth Avenue from Kellogg Street to Union Street, and installing roundabouts at Fourth and Kellogg and at Leslie Road and Clearwater Avenue.

In West Richland, the city plans to finish work on Belmont Boulevard, linking Paradise Way and Keene Road, by late spring. The street will serve an area ready for development, said Dave Weiser, city administrator.

Although officials feel confident in existing plans and infrastructures, they still have questions about what stimulus money will pay for and how many jobs will be created.

Where the workers will live, what housing they’ll need and how long they might stay are all tied to whether the workers will be new to Hanford or rehired after previous layoffs.

“Maybe we’re just anticipating more than we need to,” said Pasco City Manager Gary Cruthfield. “But it would be good to have a better feel for what to expect so we can do our best to get prepared.”

Source: Tri-City Herald

Two policy aspects concerning residential real estate are also impacting commercial building in the Tri-Cities and statewide. The first is related to contractor registration and is covered under RCW 18.27. It requires all contractors to be registered prior to beginning work on a building.

It had the consequence of turning any home improvements, including work done by the owner or property developments, into contracting work, said Brian Lewis, a real estate attorney with K&L Gates Law Firm in Seattle. “In order to put an improvement on a property, RCW 18.27 says you must be a registered contractor,” Lewis said. “It adds development to a list of activities which require a contractor.”

Improvements can include standard home additions, such as a shed or renovated bathroom – work often done by the homeowner, who would now need a contracting registration. Any improvements over $1,000 require registration, as do projects lasting fewer than 12 months, both of which are changes. While the revisions are intended to protect consumers, they could have the effect of opening them up for trouble, Lewis said.

The law was changed in 2007 to protect homebuyers and to define them from home “flippers,” who buy a house only to renovate and sell it for a higher price. The issue is that RCW 18.27 was not intended to engage in the development of property by the owners. The intent of this was to give the consumer protection from ‘flippers.’

The issue is that the rules were not meant to deal with property development or for people planning to remain in a home for more than 12 months. According to RCW 18.27.114, any contractor working on a project for four or fewer residential units or structures above $1,000, or of a commercial building when the bid or contract price total $1,000-$60,000, must provide the customer with disclosure statements and registration.

The other recently incorporated rule on property is a seller disclosure statement, known in Washington as a Form 17, which is used on residential purchases to verify property condition during the sales process. It is a multiple-page document in which the seller is supposed to reveal all known information about the property. Problems arise for the Form 17 when an unimproved property with a nixed or residential zoning distinction is sold.

Typically, commercial real estate does not deal with the form. If no form is provided, the buyer can rescind in the deal up until closing until one is shown. The intent of the legislation there is that certain environmental conditions are not getting disclosed, and this would provide the same amount of disclosure for empty lots as for developed ones.

For residential home purchases, a completed Form 17 has been required since 1995.

The face of Clover Island is changing, one building at a time. The Port of Kennewick is ready to demolish the old yacht club building to put up a 12,200-square foot, two-story building that will serve as the new home of the Clover Island Yacht club and also provide additional space for the port to lease out.

The construction is part of the Clover Island redevelopment plan, which includes shoreline improvements and public pathways, new condos and retail space and installation of artwork on the 16-acre land. The new building will help restore public access to the area that’s been available only to yacht club members since the 1950′s. It will also increase lease revenues–from $6,000to about $140,000 a year–for the port, said Larry Peterson the port’s director of planning and development.

Port officials expect to lease the upper level of the building, about 5,500 square feet, for office use. It means about 15 to 20 new jobs on the island that will help revitalize downtown Kennewick, he said. The port has received seven bids on the construction project estimated to cost about $2.78 million.

The project is less about replacing an old building and more about being in tune with the port’s vision for growth on the island. The new quarters will add an extra 700 square feet, but annual lease payments also will increase to about $57,000. That means an additional annual expenditure of $400 for about each of the club’s 150 members. Some members are sad to see the old building go, but they also understand new developments on the island will bring in more boaters and visitors to the area.

The Cynergy Centre is expanding with three new buildings – the first of which was completed – aside from tenant improvements - in late July.

The first phase of this expansion, Cynergy C is an approximately 9,500 square foot strip mall located next door to the Cynergy Centre, at 4309 W 27th Place in Kennewick.  Five suites, ranging in size from 1,000-2,600 square feet are available for lease.

In 2006, Cynergy Enterprises purchased a little less than five acres of land. In additional to the original Cynergy Centre building and this strip mall, also in the works is another office building and an additional strip mall, similar in architecture, though slightly larger.

The entire project, which will create a campus feel, is estimated to be complete by 2010 or 2011. This will be a one-stop shop for the Canyon Lakes area/Southridge area.  In conjunction with the medical building, especially given gas prices now, the intent is to have a campus where you can drive, park your car, pick up your dry cleaning, go to your doctor’s appointment, all in one.

The world of real estate is often a lot like the stock market. Buying and selling at optional times so as to make the most money, or get the most for your money, requires research, foresight and sometimes, just plain luck.

If you’re buying a home.  Currently, the luck is with those looking to buy, as the real estate market enters a cooling phase. What does that mean for you?

* Buyers have a significant advantage in a strong buyer’s market because sellers are more willing to negotiate. There are many more homes for sale, they are taking a little longer to sell and sellers are reducing prices and more frequently paying a portion of closing costs.  However, just because there may not be as much competition, don’t think you can lowball a seller. It won’t, work, say the experts. Offending a seller will most likely cause them to not want to negotiate. At the same time, don’t be afraid to ask for a few extras. In a buyer’s market, you don’t have to accept worn hardwoods, cracked tile or an old roof.

If you’re selling a home.  The world hasn’t come to an end. Really. As a seller you just need to follow a few basic rules.  Boost your home’s curb appeal. Surveys indicate that a clean house with cosmetic upgrades such as fresh paint and flowers can help form a much more positive first impression. Eighty-four percent of home buyers use the Internet to search for homes; that means that people are making decisions whether to even drive by your home based on how it looks in video, virtual tours and photos.

If your budget allows, invest in bigger improvements. The National Association of Realtors found in 2007 that 59 percent of home buyers remodeled or made improvements to their homes within three months of purchase. Forty-seven percent made improvements to the kitchen, another 43 percent remodeled or improved a bathroom and 43 percent remodeled a bedroom.  In other words, these are the key rooms when you’re preparing to sell. Focus on fixing up those “make or break” rooms.

Know your market.  Finally, whether you’re a buyer or seller, don’t assume that because the national real estate picture has gone cold, it’s that way where you live. The Washington State real estate market, and the Tri-Cities market in particular, are extremely strong and in fact, flourishing.

Most Tri-Cities citizens are unsure what home improvements can add the most value to their homes. This information can be essential, especially when trying to sell in today’s competitive marketplace. Having this knowledge will help you move inventory and close more sales. read on for information on how you can make your listings more marketable with some well-founded renovation advice.

Maximized Sales Price through The Right Home Improvements

The right home improvements can be a wise investment for the future and people across the country seem to be catching on. Advising homeowners to invest in improving their kitchens and bathrooms is a given. Having updated and more functional rooms will draw in potential buyers seeking to purchase their perfect dream home. replacing old siding and windows can also be a wise investment as first impressions are important in bringing buyers in the door. Showing sellers how remodeling dollars can be recuperated once the home is sold will strengthen your homeowner relationships.

Get A Fix on Increased Sales

Interestingly, Generation X (loosely defined as people born from early/mid-sixties to the early eighties) is expected to pass Baby Boomers in annual remodeling expenditures by the year 2015. This group may be more prone to purchase a not-so-perfect home that they can turn into their dream home through well-thought-out renovations.

Return-on-Investment Renovation Guidelines

Remodeling                     Replacement            Addition

Bathroom – 102%             Siding – 104%            Bathroom – 86%

Kitchen – 99%                  Windows – 90%          Family Room – 83%

Basement – 90%               Roof – 85%

Published By: Wells Fargo Home Mortgage