SILVERDALE — Housing Kitsap is negotiating the purchase of a Silverdale office building as the agency prepares to move out of Bremerton’s Norm Dicks Government Center.
Executive Director Stuart Grogan said the housing authority’s offer on the former John L. Scott building at Bucklin Hill and Mickelberry roads was accepted and due diligence is being completed before the sale closes. The deal could be completed by the end of the month, he said.
The property was assessed at $1.7 million for 2017, according to county documents. Grogan said it was too early in the process to disclose Housing Kitsap’s offer.
The negotiations put Housing Kitsap closer to its goal of relocating to an area more central for its clients, who live in properties scattered from Kingston to Port Orchard. The agency also was interested in moving out of Bremerton — the only area of Kitsap not included in its service area — and into a smaller headquarters with lower overhead.
Grogan said the 8,000-square-foot Bucklin Hill building checks all the right boxes.
“It’s central to our portfolio and to the county,” Grogan said. “It puts us back in the county where we belong.”
Securing office space in Silverdale is just one step in a complex dance that Housing Kitsap must complete to maneuver out of the Norm Dicks center. The housing agency plans to sell its current offices to the city, which offered $2 million for the space. In order to use the proceeds of that sale to buy the Silverdale building, Housing Kitsap had to amend its loan agreement with Kitsap County, which took on more than $40 million of its debt in 2009.
The Housing Kitsap board signed off on a loan amendment Tuesday that will allow the agency to put the full proceeds of the Norm Dicks sale toward relocation and defer up to $300,000 in loan payments to the county in 2018, 2019 and 2020. If Housing Kitsap sells any other properties in the future, it will be allowed to invest half of the proceeds in projects and designate the other half for debt repayment. The amendment was forwarded to county commissioners for final approval.
Grogan said Housing Kitsap likely will complete the sale of its Norm Dicks offices and purchase of its new Silverdale home at roughly the same time. The vacant Bucklin Hill building needs little renovation, allowing for a quick move, he said.
Housing Kitsap, formerly Kitsap County Consolidated Housing Authority, was founded in Silverdale. The agency moved to the Norm Dicks center in 2011 so it could sell its Bayshore Drive offices.