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Bellevue Council Member Owns $50M in Property Along Light Rail Route He Opposes

As I reported yesterday, Bellevue City Council member Kevin Wallace pressured his fellow council members last week to support his proposed “Vision Line” alignment for the eastern portion of light rail, which would run east of I-405, bypassing downtown homes and businesses and forcing people to walk nearly a mile to Bellevue’s downtown core.

Wallace, elected earlier this year as part of a Kemper-Freeman-backed slate of city council candidates, has been a consistent, vocal opponent Sound Transit’s preferred light rail alignment, which would run on surface streets through downtown Bellevue.

A review of properties owned by his company, Bellevue-based Wallace Properties, reveals a potential reason why. Wallace Properties, of which Wallace is president, owns more than a half-dozen properties along the proposed light rail alignment through Bellevue. Altogether, the properties, which house dozens of businesses including the headquarters for Wallace Properties, are worth nearly $50 million.

Wallace hasn’t yet returned a call to ask whether his opposition to Sound Transit’s preferred alignment is related to the fact that his company owns so many properties along the route.

Wallace has said the alignment would have “disastrous impacts to our homes, businesses and roads,” a common complaint of light-rail opponents like Freeman. He also believes that it would would create too much noise.

“If we have an opportunity to run East Link through town without impacting residential neighborhoods, then we should take that opportunity,” he told the Bellevue Reporter in September.

Sound Transit spokesman Bruce Gray says it’s too soon to tell how many, if any, of Wallace’s properties will have to be condemned for light rail construction. However, at least four of those properties are within a block of Sound Transit’s preferred alignment, and one is directly adjacent to the proposed Ashwood/Hospital station, just east of I-405.

Sound Transit has already studied a version of Wallace’s proposed alignment, finding that it would have significantly lower ridership and cost more than the route through downtown Bellevue. However, last week—under pressure from the new anti-rail majority on the Bellevue City Council—they agreed to study the “Vision Line,” a process that will take at least a month and cost $15,000.




  • http://manywordsforrain.blogspot.com/ Mr.Baker

    What do the property owners along his “Vision Line” think of his vision of their property?

    Do they love it, and want to tell the world?
    Or, do they hate it with the intensity of a thousand suns and are hoping somebody like you tells their story?

    Yes, he is self-serving, but what is the direct harm to people with names and faces?

  • http://manywordsforrain.blogspot.com/ Mr.Baker

    What do the property owners along his “Vision Line” think of his vision of their property?

    Do they love it, and want to tell the world?
    Or, do they hate it with the intensity of a thousand suns and are hoping somebody like you tells their story?

    Yes, he is self-serving, but what is the direct harm to people with names and faces?

  • Mr. X

    I guess this absurdly wealthy and successful businessman doesn’t figure that light rail will be the financial boon for his properties (well, the ones that wouldn’t be condemned, at least) that TOD supporters seem to think it would.

  • Mr. X

    I guess this absurdly wealthy and successful businessman doesn’t figure that light rail will be the financial boon for his properties (well, the ones that wouldn’t be condemned, at least) that TOD supporters seem to think it would.

  • Morgan

    As in, “condemn somebody else’s land” for the train which his company will ultimately be using as a marketing tool.

    Nothing like the “virtuous” self-interested politician.

    Funny how Wallace has now joined the voices of crazy NIMBY’s using that “destroying our neighborhood” scare tactic. Those were the same NIMBY’s who fought big Wallace and Kemper projects over the years, because they didn’t want a “big city” next to them.

    It would be ironic if these Hatfields and McCoys were successful in keeping light rail out of their downtown. If that happens, Bellevue will choke on its own congestion vomit in 10 years, given all the density Wallance and Kemper are building.

    Bellevue won’t shake its Country Bumpkin image until its voters start electing intelligent politicians – and start ignoring these backwards “one company town” real estate barons.

  • Morgan

    As in, “condemn somebody else’s land” for the train which his company will ultimately be using as a marketing tool.

    Nothing like the “virtuous” self-interested politician.

    Funny how Wallace has now joined the voices of crazy NIMBY’s using that “destroying our neighborhood” scare tactic. Those were the same NIMBY’s who fought big Wallace and Kemper projects over the years, because they didn’t want a “big city” next to them.

    It would be ironic if these Hatfields and McCoys were successful in keeping light rail out of their downtown. If that happens, Bellevue will choke on its own congestion vomit in 10 years, given all the density Wallance and Kemper are building.

    Bellevue won’t shake its Country Bumpkin image until its voters start electing intelligent politicians – and start ignoring these backwards “one company town” real estate barons.

  • ap

    “If we have an opportunity to run East Link through town without impacting residential neighborhoods, then we should take that opportunity”

    i’ve got to hand it to council member wallace. that’s certainly a far more pleasant way of saying “if we have an opportunity to run east link through town without anyone getting off, then we should take that opportunity”

  • ap

    “If we have an opportunity to run East Link through town without impacting residential neighborhoods, then we should take that opportunity”

    i’ve got to hand it to council member wallace. that’s certainly a far more pleasant way of saying “if we have an opportunity to run east link through town without anyone getting off, then we should take that opportunity”

  • max

    Oh, Mr. X, how typical it is for you – the self-interested U District NIMBY extraordinaire – to side with the self-interested Bellevue NIMBY nuts?

    How is your “keep Seattle crappy” campaign coming along? Still fighting that evil light rail subway station on Brooklyn?

  • max

    Oh, Mr. X, how typical it is for you – the self-interested U District NIMBY extraordinaire – to side with the self-interested Bellevue NIMBY nuts?

    How is your “keep Seattle crappy” campaign coming along? Still fighting that evil light rail subway station on Brooklyn?

  • Mr. X

    Just pointing out the inconsistency.

    Personally, I’m glad light rail of some sort is going to the eastside (and these stalling tactics won’t prevent it) and I voted for ST1 and 2 – but light rail true believers sure get their backs up when people have tried to hold that agency to the promises it made to the voters.

  • Mr. X

    Just pointing out the inconsistency.

    Personally, I’m glad light rail of some sort is going to the eastside (and these stalling tactics won’t prevent it) and I voted for ST1 and 2 – but light rail true believers sure get their backs up when people have tried to hold that agency to the promises it made to the voters.

  • WOW !

    So according to the Publicola conspiracy theory, Wallace opposes the proposed line because he would stand to make a mountain of money when Sound Transit starts to acquire his property through eminent domain? Oh wait, that didn’t make any sense.

  • WOW !

    So according to the Publicola conspiracy theory, Wallace opposes the proposed line because he would stand to make a mountain of money when Sound Transit starts to acquire his property through eminent domain? Oh wait, that didn’t make any sense.

  • Slippery Pete

    @7: Yeah, also, he’d hate to unload those properties when nobody else is going to be buying for 5 years.

    Also, Erica, your headline is very misleading, even borderline libelous. He doesn’t own $50MM in real estate, Wallace Properties owns them. At least you admit that in your article. But then you say that he’s the President of the company. Which swings you back toward libel. In case you have no idea how a corporation is governed, there are officers and there are shareholders. Officers run the company, shareholders own it. Officers can be, and often are, shareholders. But if you ever made it further east than Broadmoor, you’d know that Bob and Joan Wallace are far and away the biggest shareholders of Wallace Properties, not Kevin. HTH.

  • Slippery Pete

    @7: Yeah, also, he’d hate to unload those properties when nobody else is going to be buying for 5 years.

    Also, Erica, your headline is very misleading, even borderline libelous. He doesn’t own $50MM in real estate, Wallace Properties owns them. At least you admit that in your article. But then you say that he’s the President of the company. Which swings you back toward libel. In case you have no idea how a corporation is governed, there are officers and there are shareholders. Officers run the company, shareholders own it. Officers can be, and often are, shareholders. But if you ever made it further east than Broadmoor, you’d know that Bob and Joan Wallace are far and away the biggest shareholders of Wallace Properties, not Kevin. HTH.

  • Whatevs

    Nice work. A few facts, other people’s articles, and a lot of made-up garbage.

  • Whatevs

    Nice work. A few facts, other people’s articles, and a lot of made-up garbage.

  • joshuadf

    I’m not seeing the connection here either, but then again I don’t get Kevin Wallace’s opposition to downtown Bellevue light rail. It is worth pointing out that Wallace Properties built some TOD at Northgate:
    http://507northgate.blogspot.com/2009/03/wallace-properties-opens-507-northgate.html
    IIRC they also own some other potentially upzoning property around there.

  • joshuadf

    I’m not seeing the connection here either, but then again I don’t get Kevin Wallace’s opposition to downtown Bellevue light rail. It is worth pointing out that Wallace Properties built some TOD at Northgate:
    http://507northgate.blogspot.com/2009/03/wallace-properties-opens-507-northgate.html
    IIRC they also own some other potentially upzoning property around there.

  • http://www.joeszilagyi.com/ Joe Szilagyi

    It’s not like these people will “leave” the region or anything. There needs to be uncontestable legal avenues created to prevent this kind of unhelpful obstructionism to the public good.

  • http://joeszilagyi.com Joe Szilagyi

    It’s not like these people will “leave” the region or anything. There needs to be uncontestable legal avenues created to prevent this kind of unhelpful obstructionism to the public good.

  • Donolectic

    @8 – I’m sure that the fact that all of those people share the same last name is just a coincidence.

  • Donolectic

    @8 – I’m sure that the fact that all of those people share the same last name is just a coincidence.

  • land use junkie

    Before I venture an opinion (like everyone else here), you really need to read the minutes from the Bellevue City Council meetings. But if there was a vote on the preferred alignment and Wallace did not disclose his conflict of interest, then under the appearance of fairness doctrine there might be problems.

    So what if Wallace Properties LLC is the taxpayer, if he has a financial interest in the LLC then he might have a conflict.

    A few months ago the Northgate TOD was pretty empty, not many people interested in buying any units in that complex…

  • land use junkie

    Before I venture an opinion (like everyone else here), you really need to read the minutes from the Bellevue City Council meetings. But if there was a vote on the preferred alignment and Wallace did not disclose his conflict of interest, then under the appearance of fairness doctrine there might be problems.

    So what if Wallace Properties LLC is the taxpayer, if he has a financial interest in the LLC then he might have a conflict.

    A few months ago the Northgate TOD was pretty empty, not many people interested in buying any units in that complex…

  • http://seattletransitblog.com/ Ben Schiendelman

    land use junkie – it’d be great if you looked into that.

  • http://seattletransitblog.com Ben Schiendelman

    land use junkie – it’d be great if you looked into that.

  • sarah68

    WALLACE PROPERTIES, INC.OFFICERS: Robert C. Wallace, CEO; Kevin R. Wallace, President; Joan S. Wallace, Principal
    BROKERAGE: Robert C. Wallace, CEO; Kevin R. Wallace, President; Monica Wallace, Retail

  • sarah68

    WALLACE PROPERTIES, INC.OFFICERS: Robert C. Wallace, CEO; Kevin R. Wallace, President; Joan S. Wallace, Principal
    BROKERAGE: Robert C. Wallace, CEO; Kevin R. Wallace, President; Monica Wallace, Retail

  • Puzzled

    Before you get high and mighty about the benefit of light rail to local property owners along the tracks, go talk to the folks at MLK Jr Way S. and the cross streets where your toy train does not stop—but causes screwed up traffic and blocked businesses, like at Graham. Increase in property values? Community access? Your vision of transit is hardly better than the freeways of the fifties and sixties, jammed through and screwing up urban neighborhoods. Wallace is acting in defense of his business and properties and communities against the top-down planning of the local politically correct politburo—and there’s not not a damn thing wrong with that.

  • Puzzled

    Before you get high and mighty about the benefit of light rail to local property owners along the tracks, go talk to the folks at MLK Jr Way S. and the cross streets where your toy train does not stop—but causes screwed up traffic and blocked businesses, like at Graham. Increase in property values? Community access? Your vision of transit is hardly better than the freeways of the fifties and sixties, jammed through and screwing up urban neighborhoods. Wallace is acting in defense of his business and properties and communities against the top-down planning of the local politically correct politburo—and there’s not not a damn thing wrong with that.

  • Slippery Pete

    @15: Google “corporate governance.” A president is just an officer; the company’s assets are not his assets. If I was named president of Micro$oft tomorrow, I’m sure I’d get a hefty pay raise, but I wouldn’t own the company. The shareholders own the company.

    @12, @13, @15: I’m not saying Kevin Wallace doesn’t have some financial stake in the matter. I’m just saying that it’s wrong to imply he own the whole company and that his stake is $50MM. I’d estimate that he owns 10% of that company, tops. That’s “only” a $5MM stake. If you want to have a conversation about the propriety of messing with Light Rail when you have $5MM at stake, then let’s have that conversation. But to claim he has a $50MM stake is disingenuous at best, and illegally libelous at worse.

  • Slippery Pete

    @15: Google “corporate governance.” A president is just an officer; the company’s assets are not his assets. If I was named president of Micro$oft tomorrow, I’m sure I’d get a hefty pay raise, but I wouldn’t own the company. The shareholders own the company.

    @12, @13, @15: I’m not saying Kevin Wallace doesn’t have some financial stake in the matter. I’m just saying that it’s wrong to imply he own the whole company and that his stake is $50MM. I’d estimate that he owns 10% of that company, tops. That’s “only” a $5MM stake. If you want to have a conversation about the propriety of messing with Light Rail when you have $5MM at stake, then let’s have that conversation. But to claim he has a $50MM stake is disingenuous at best, and illegally libelous at worse.

  • Johnny Medina

    Erica,

    While I am sure the journalistic bar is low for bloggers such as yourself, this post was so poorly researched it taints your otherwise entertaining site.

    Bellevue has a VERY active political scene, editorials like this will not go unnoticed.

    J

  • Johnny Medina

    Erica,

    While I am sure the journalistic bar is low for bloggers such as yourself, this post was so poorly researched it taints your otherwise entertaining site.

    Bellevue has a VERY active political scene, editorials like this will not go unnoticed.

    J

  • Sarajane46th

    @18 From the comments, it would have been more accurate to say Kevin Wallace controls $50MM of real estate along the light rail route. However, that’s a country mile from the legal definition of libel, which requires knowing it’s untrue and having malicious intent. Libel doesn’t apply to public figures, which a Bellevue City Council member certainly is. Just sayin’.

  • Sarajane46th

    @18 From the comments, it would have been more accurate to say Kevin Wallace controls $50MM of real estate along the light rail route. However, that’s a country mile from the legal definition of libel, which requires knowing it’s untrue and having malicious intent. Libel doesn’t apply to public figures, which a Bellevue City Council member certainly is. Just sayin’.

  • Slippery Pete

    @19: Libel does apply to public figures when you’re not talking about why they’re public figures. Just because the celebs don’t sue every gossip rag doesn’t mean they wouldn’t have a legal rag to stand on if they did sue.

    In most contexts, claiming somebody owns $50MM of property instead of $5MM is indeed “a country mile” from libel. But that’s not the case in this context. I doubt Erica is as clueless about business associations as she wants her friends in Austin, Olympia, and Capital Hill to think she is. And the tone of her post DOES suggest malicious intent. She’s blatantly implying that Wallace wants to kill light rail because he has $50MM at stake. You can pick five ways she intended that maliciously.

  • Slippery Pete

    @19: Libel does apply to public figures when you’re not talking about why they’re public figures. Just because the celebs don’t sue every gossip rag doesn’t mean they wouldn’t have a legal rag to stand on if they did sue.

    In most contexts, claiming somebody owns $50MM of property instead of $5MM is indeed “a country mile” from libel. But that’s not the case in this context. I doubt Erica is as clueless about business associations as she wants her friends in Austin, Olympia, and Capital Hill to think she is. And the tone of her post DOES suggest malicious intent. She’s blatantly implying that Wallace wants to kill light rail because he has $50MM at stake. You can pick five ways she intended that maliciously.

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