County plans sale of Rucker Building

The Snohomish County Health District is asking Monroe, Snohomish County and 19 other cities to formerly withdraw any claim in the Rucker Building.

The problem is, no one has found definitive proof of potential ownership.

The health district announced in December its intent to sell the clinic, commonly referred to as the Rucker Building, within the coming weeks. Operations will move into a smaller building, and any leftover money will go into a new capital fund.

The building’s title names the health district as the sole proprietor. An interlocal agreement effective from 1990-95 shows a series of annual of contributions that were likely made by the county, 20 cities and the health district toward financing of the building.

The building was originally purchased for $5.15 million, according to a memo from Dan LeFree, health district accounting supervisor. Per the ILA, each municipality and the county agreed to make annual payments for five years to the fund balance of the loan taken out by the health district to purchase the building.

Everything was paid off by 1995, effectively ending the ILA contract, said Heather Thomas, health district public and government affairs manager. There was an attempt to clarify property interests in the health district charter, but it was never completed. There are very few people left in the area that know anything of the intent behind the amendments. That was more than 20 years ago, she said.

The health district reported some knowledge of oral statements made by former health district representatives that suggested municipalities would have some legal claim in any finances made from the sale of the building, according to a Dec. 22 letter to city and county leaders from health board chairman Brian Sullivan and health district deputy director Peter Mayer.

“I guess the part that I am having trouble is the, ‘Just trust us,’ that’s how it comes across, ‘But we can’t prove it.’ I mean, that is just really hard for me to swallow,” said Monroe City Councilmember Jason Gamble on Tuesday.

He said if the city did have any stake, it would also include the appreciated value of the contributed amount.

“I am not going to vote on anything that is going to relinquish our (financial interests) without knowing all the facts,” Gamble said. 

The amount Monroe contributed would have been $24,428, according to ILA estimates provided to the cities and county by the health district.

Thomas said the health district could not locate records of those transactions, but found enough proof of the payments in annual audit documents. There is no reason to believe those ILA payments were not upheld, and she plans to clarify the discrepancy with the city.

The Snohomish County Assessors Office assessed the current value of the building at about $9 million, Thomas said. The health district has paid in about $6.4 million for the building, according to ILA estimates. All other agencies collectively contributed roughly $2.5 million. That is not necessarily what the asking price will be on the market, Thomas said.

The health district never billed the county or cities for any maintenance or capital improvements costs since the ILA contract ended in 1995. The health district also paid the interest on the loan, she said.

Because no one was ever billed after 1995, Monroe City Councilmember Jeff Rasmussen said the health district believes it reasonable for the cities and the county to give up any potential claim.

The health district will provide cities with estimates of what percentage each is believed eligible for when or if the building sells.

If a municipality believes that estimate is wrong, it will be asked to provide proof, Thomas said.

Rasmussen said former city administrator Gene Brazel and public works director Brad Feilberg have already sunk much time into researching any existing documents. Monroe City Financial Director Dianne Nelson said she would go back in the city’s records and attempt to find more about the ILA payments.

The health district is hosting three meetings to further explain its position and discuss the situation with communities. The third and final meeting takes place at 2:30 p.m. Monday, Jan. 30, at Monroe City Hall.