County halts land-sale talks

One of the largest public land sales by King County in years has fallen apart amid questions about the unusual no-bid deal between the county and a major residential developer.

County Executive Ron Sims is changing course in negotiations with YarrowBay Group for the purchase of the "Donut Hole" — 156 acres of county land inside the city of Maple Valley, said Rod Brandon, county director of environmental sustainability.

After two years of talking with the Kirkland-based developer, Sims plans to solicit bids from other interested buyers because the county and YarrowBay couldn't agree on a price, Brandon said.

The Maple Valley community had fought the deal, fearing it would bring unplanned development and thousands of new residents. The community also questioned why Sims was negotiating with just one buyer.

Although YarrowBay can participate in the coming public bid process, Brandon said, negotiations with the company have stopped for now.

Martin Durkan Jr., a lobbyist who helped craft the deal, said the public bid process will clear the air around a complicated deal. "I think it's a positive development," said Durkan, who represents YarrowBay. " ... It will be beneficial."

YarrowBay managing partner Brian Ross could not be reached for comment Friday.

In recent weeks, other prospective buyers have called the county about buying the land, in the center of bustling Maple Valley and estimated to be worth between $40 million and $70 million. It currently houses a county roads maintenance facility, but to a developer it's a blank slate for thousands of new homes.

Maple Valley city officials and residents have said the unplanned growth — potentially thousands of homes — will simply overwhelm city streets and schools.

Typically, a county-owned property would need to be designated surplus and put out for public bid. The county can negotiate directly with a single buyer under "unique circumstances" — an exemption used in the negotiations with YarrowBay.

The now-defunct deal with YarrowBay included a coveted piece of land in the Green River Gorge, which King County has long tried to acquire. If YarrowBay purchased the Donut Hole property from King County, the county would get to buy the Icy Creek land as part of the deal.

King County has tried for years to acquire the 276-acre forestland for preservation. The county had argued that the inclusion of the Icy Creek forestland allowed it to negotiate directly with YarrowBay, instead of soliciting other bids.

Although Icy Creek property may no longer be part of the deal, county officials say that conservation land and affordable housing will be part of proposal requirements.

Maple Valley city officials, who have fought the sale to YarrowBay, said the county should have gone with the public bid process from the start, although that doesn't alleviate the community concerns about development of the land.

"We firmly believe that the city needs to be a partner in deciding the future land use and density of that land," said Maple Valley City Manager Anthony Hemstad.

Staff reporter Jim Brunner contributed to this story.

Lauren Vane: 253-234-8604 or lvane@seattletimes.com