City Of Bellevue v. Best Buy Stores

CourtCourt of Appeals of Washington
DecidedApril 21, 2014
Docket70855-4
StatusUnpublished

This text of City Of Bellevue v. Best Buy Stores (City Of Bellevue v. Best Buy Stores) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City Of Bellevue v. Best Buy Stores, (Wash. Ct. App. 2014).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

CITY OF BELLEVUE, a municipal corporation, DIVISION ONE

Respondent, No. 70855-4-I (Consol. with No. 70856-2-I)

BEST BUY STORES, LP, a Virginia UNPUBLISHED OPINION limited partnership, o

Appellant, —'—I rn -D o HD DEVELOPMENT OF MARYLAND, o-n

INC., a Maryland corporation; 457 120th «^TH— >T)pri AVENUE NE, LLC, a Delaware limited WPIn 5:> liability company; HOME DEPOT USA, «X> INC., a Delaware corporation; o- THRIVENT FINANCIAL FOR cn z<- LUTHERANS, a Wisconsin corporation; PUGET SOUND ENERGY, INC., a Washington corporation; KING COUNTY; and DOES 1-10,

Defendants. FILED: April 21, 2014

Dwyer, J. —

Although the courts may well determine from the evidence whether a project is for the public benefit, convenience or necessity, they are not trained or equipped to pick the better route, much less design and engineer the project. Thus, the rule that leaves these decisions to the administrative agencies is a sensible one consistent with the idea that the public's business be carried out with reasonable efficiency and dispatch by those possessing the superior talents to accomplish the public purposes.[1]

Deaconess Hosp. v. Highway Comm'n, 66 Wn.2d 378, 405, 403 P.2d 54 (1965). No. 70855-4-1 (Consol. with No. 70856-2-l)/2

In this case, the City of Bellevue brought a condemnation action over two

parcels of land in order to extend NE 4th Street from its current terminus at 116th

Avenue NE to a new terminus at 120th Avenue NE. The proposed design calls

for a five-lane road. Best Buy Stores, LP (Best Buy), the current lessor of one of

the parcels, opposes the condemnation action, contending that the to-be-

condemned property is not necessary to fulfill a public use. Specifically, Best

Buy contends that a five-lane road is not necessary and that a four-lane road

would suffice.

Best Buy fails to demonstrate that Bellevue's determination of public

necessity was arbitrary and capricious such that it amounted to constructive fraud. Because it is not our role to second-guess Bellevue's choice of road

design, we affirm.

I

The property at issue in this dispute is located at 457 120th Avenue NE in Bellevue. The property is owned by 457 120th Avenue NE, LLC (Landlord) and leased by Best Buy. Best Buy operates a retail store at that location. Immediately to the south is a parcel of land owned by HD Development of Maryland, Inc. (Home Depot), and occupied by a Home Depot retail store. In 2008, Bellevue began planning for an extension of NE 4th Street from

its current terminus at 116th Avenue NE to a new terminus at 120th Avenue NE.

The road extension was part of a broader project known as the Mobility and Infrastructure (M&l) Initiative, which "was formed to address recent growth and planned development in the Downtown Bellevue, Bel-Red, and Wilburton areas." -2- No. 70855-4-1 (Consol. with No. 70856-2-l)/3

Bellevue believed that the NE 4th Street extension would "provide an alternate to

and relieve congestion at key intersections including NE 8th Street at 112th

Avenue NE and NE 8th Street at 116th Avenue NE," and that it would "enhance

travel time and mobility options."

The idea of extending NE 4th Street was not a new one. Previously, in

2006, KG Investments2 had approached Bellevue about support for its

development plans. KG Investments requested that Bellevue commit to

condemning property for an extension of NE 4th Street through the properties

occupied by Best Buy and Home Depot. As part of its request, KG Investments

offered to fund the project. However, Bellevue declined KG Investments' offer.

From 2008 to 2012, the city council "reviewed considerable community

input and undertook substantial community involvement" in relation to the M&l Initiative. Specifically, the city council "conducted three 'Open Houses' in 2010," had "multiple meetings with property owners and tenants," and discussed the

M&l Initiative at 28 open public meetings.

The city council initially reviewed seven alternative designs for the NE 4th

Street extension. Two designs were rejected because of their substantial

impacts on Best Buy. After choosing one of the seven designs, the city council further considered three distinct modifications to that design. Ultimately, in April

2010, the city council selected a five-lane design that would require the demolition of 10,000 square feet of the Best Buy retail store. This design was

2Per the declaration of Melissa Moseley, Best Buy's former directorof real estate, KG Investments owns the Landlord's interest in the 457 120th Avenue NE property.

-3- No. 70855-4-1 (Consol. with No. 70856-2-1)74

selected because

it impacted the least number of parcels, allowed for the ability to modify the existing structure for continued retail use, was the least overall cost compared to other alternatives considered at the time, was compatible with the Wilburton Village land use vision, and the community preferred the location where NE 4th would intersect with 120th Avenue NE.

Unsurprisingly, Best Buy objected to the probable demolition of a part of

its store. Best Buy wrote seven letters and met with Bellevue representatives on

20 separate occasions since 2010, voicing its objections. On March 5, 2012,

counsel for Best Buy wrote a letter to Bellevue stating, "Under no circumstances

will Best Buy consent to the taking of its property for an unnecessary road lane."

Best Buy's legal challenges to the proposed condemnation demonstrate the

seriousness of its commitment to this statement. According to the declaration of

Assistant City Attorney Monica Buck, Best Buy has "[ajppealed the action ofthe City Council authorizing execution of a consultant agreement to complete final design and proposed plans," "[ajppealed the City's threshold determination issued under the State Environmental Policy Act" to Bellevue's hearing examiner,

"[fjiled a Request for Reconsideration of the Hearing Examiner's decision on the

SEPA Appeal," "[fjiled with the King County Superior Court an appeal of the Hearing Examiner's decision under the Land Use Petition Act," "[fjiled an appeal of the Critical Areas Land Use Permit ("CALUP Appeal") issued by the

Development Services Director for the NE 4th Street Extension Project" to the

hearing examiner, and "[fjiled with the Hearing Examiner a Request for Reconsideration of the decision on the CALUP Appeal," all in addition to this

4- No. 70855-4-1 (Consol. with No. 70856-2-l)/5

appeal. Meanwhile, Best Buy was aware that Bellevue had obtained grant

funding that would be jeopardized should Bellevue not begin the project by a

certain date.

On February 13, 2012, Ron Kessack, Bellevue Assistant Director of

Capital Program Services, discussed a possible alternative four-lane road design

with the city council. Kessack informed the council that the proposed design

"would eliminate one of the westbound lanes up to the point just past Best Buy."

Kessack stated that "right now we're looking at it and saying, you know, it's likely

we don't [need the second westbound lane]. We do . . . want to run numbers on

it and make sure and proof it out." One of the council members asked Kessack,

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