ORDINANCE __________________

AN ORDINANCE relating to the fees for the vacation of streets and other public rights-of-way, amending S.M.C. 15.62.090 to increase the fee charged as compensation for street vacations and creating a new Subfund of the General Fund, the Street Vacation Compensation Fund.

WHEREAS, the City derives its authority to charge a fee for street vacations from the State of Washington; and

WHEREAS, the State had limited the amount that cities could charge as compensation for vacations to an amount not greater than onehalf the appraised value of the right-of-way to be vacated, except in circumstances where the right-of-way was acquired at public expense or where the right-of-way was a water-abutting street end; and

WHEREAS, the State Legislature, in the 2001 Legislative Session, amended RCW chapter 35.79 to grant cities the authority to charge a fee for the compensation for street vacations that is equal to the full appraised value of the right-of-way for all streets that have been part of a dedicated public right-of-way for twenty-five years or more; and

WHEREAS, the State Legislature, in the 2001 Legislative Session, specified that one-half of the revenue received by the City as compensation for the area vacated shall be dedicated to the acquisition, improvement, and development of public open space or transportation capital projects; and

WHEREAS, the City Council has determined that the highest priority for the use of the vacation compensation funds shall be for transportation capital projects; and

WHEREAS, the City Council has historically required the payment of a vacation compensation fee (in addition to other related fees) in the maximum amount allowed by State Law from all petitioners, other than State or Federal agencies, and the City Council desires to revise the Seattle Municipal Code to reflect the changes in State Law; NOW THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Section 15.62.090 of the Seattle Municipal Code, as last amended by Ordinance 117569, is hereby amended as follows:

15.62.090 Compensation for vacation.

A. Ordinances vacating any street or alley or part thereof shall not be passed by the City Council until a sum equal to one-half (1/2) of the appraised value of the area vacated is paid to the City, provided that if the street or alley has been a part of a dedicated public right-of-way for twenty-five years or more, the City shall be compensated in an amount equal to the full appraised value of the area vacated. In certain circumstances, provision of other valuable consideration acceptable to the City may be made in lieu of up to one-half (1/2) of the payment; provided that such consideration shall not be acceptable if it is required for the street vacation, it is considered a public benefit to meet the public benefit requirements of the street vacation, or it is required by other regulatory action. Acceptable consideration shall be quantified in dollars which shall then be credited to the required payment. where the area vacated was acquired at public expense, the sum to be paid to the City shall be equal to the full appraised value of the area vacated. State and federal agencies shall be exempt from such payment, but shall pay to the City all costs incurred by the City in processing the vacation request. As contemplated by RCW 35.79.035(3), the full market value shall be paid upon vacation of streets abutting upon bodies of water.

B. Conveyance of other property acceptable to the City may be made in lieu of the payment required by subsection A, whether required to mitigate adverse impacts of the vacation or otherwise. When such conveyance is made for street purposes, one half (1/2) of the fair market value of the land conveyed shall be credited to the required payment. When the conveyance is made in fee for purposes other than street purposes, t))The full appraised value of the land conveyed shall be credited to the required payment. When the value of the in-lieu parcel is less than the payment required by subsection A, the petitioner shall pay the difference to the City. When the value of the in-lieu parcel exceeds the payment required by subsection A, the City shall pay the difference to petitioner.

C. One-half of the revenue received by the City as compensation for the area vacated shall be dedicated to the acquisition, improvement, and development of public open space or transportation capital projects. This revenue shall be deposited in the Street Vacation Compensation Fund and the highest priority for the use of these funds shall be for transportation capital projects.

Section 2. There is hereby established as a Subfund of the General Fund, a Street Vacation Compensation Fund. One-half of the revenue received by the City as compensation for areas vacated pursuant to S.M.C. 15.62.090 shall be deposited into the Street Vacation Compensation Fund. The revenues so received shall be used to pay for the acquisition, improvement, and development of public open space or for transportation capital projects. The highest priority for the use of these funds shall be for transportation capital projects.

Section 3. The increased vacation compensation fee shall be applicable to all petitions received by the City after the effective date of this Ordinance. The remaining one-half of the vacation compensation revenues and revenues from the petition fee and the post-hearing fee shall continue to be deposited into the Cumulative Reserve Subfund of the General Fund.

Section 4. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the _____ day of _______________, 20___, and signed by me in open session in authentication of its passage this _____ day of _______________, 20___.

___________________________________

President of the City Council

Approved by me this _____ day of _______________, 20___.

___________________________________

Paul Schell, Mayor

Filed by me this _____ day of _______________, 20___

___________________________________

City Clerk

(SEAL)

GB

CB 113915

11/5/01

V #5