A RESOLUTION adopting policies and procedures to govern the acquisition, reuse, or disposal of City real property.

WHEREAS, the City Council wishes to ensure that decisions concerning acquisition, reuse, and disposal of the City's real property be made within the context of a long-range vision, with the goal of responsible stewardship for current and future generations; and

WHEREAS, Resolution 26358, adopted June 3, 1980, established policies and procedures to "...govern determinations regarding the sale or other disposal of real property deemed surplus by any department of the City of Seattle"; and

WHEREAS, the Council wishes to establish new policies and procedures through this Resolution to guide the Executive in evaluating the acquisition, reuse or disposal of real property, Now therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE MAYOR CONCURRING, THAT:

Section 1. Resolution 26358 is hereby superseded, and the following policies are hereby adopted to govern the reuse or disposal of City real property:

.

Reuse Or Disposal Of City Property.

The Executive is to make its recommendations on the reuse or disposal of any property that is not needed by a Department on a case by case basis, following the procedures adopted in Section 2 of this Resolution, and evaluating the options using the following guidelines:

A. Consistency. The Executive shall evaluate the proposed reuse or disposal for consistency with any restrictions or limitations resulting from any of the following:

1. the purpose for which the property was originally acquired;

2. the funding sources used to acquire the property;

3. the title or deed conveying the property, including terms and conditions of the original acquisition, or any other contract or instrument by which the City is bound or to which the property is subject;

4. City, state, or federal ordinances, statutes, and regulations, including but not limited to the following:

bond, grant, or loan programs;

the State Accountancy Act, RCW 43.09.210, providing that property transfers from one department or public service industry to another are to be paid for at their true and full value by the department or public service industry receiving the property.

zoning and land use matters such as the Land Use Code, landmarks ordinance, historic preservation policies, and special review district limitations;

other plans, policies, or regulations adopted or approved by the City Council, including the City of Seattle Comprehensive Plan.

B. Compatibility and Suitability. The Executive's recommendation for the reuse or disposal of the property should reflect its assessment of the potential for use of the property :

in support of adopted Neighborhood Plans;

as or in support of low-income housing;

in support of economic development;

in support of affordable housing;

for park or open space;

in support of Sound Transit Link Light Rail station area development;

as or in support of child care facilities; and,

in support of other priorities reflected in adopted City policies.

C. Other factors. The Executive's recommendation should also consider:

highest and best use of the property;

compatibility of the proposed uses with the physical characteristics of the property and with surrounding uses;

timing and term of the proposed use;

appropriateness of the consideration to be received;

unique attributes that make the property hard to replace (e.g., size, location);

potential for consolidation with adjacent public property to accomplish future goals and objectives of the City;

conditions in the real estate market from the perspective of a property seller;

known environmental factors that may affect the value of the property.

Sale. In making its recommendation for reuse or disposal, the Executive should also evaluate the potential for selling the property both to other non-City public entities and to members of the general public.

E. No ranking of the items in subsections B and C above is intended by their inclusion or order in the subsections. The requests of City departments and Public Agencies to obtain jurisdiction over or to acquire city property carry considerable weight but do not necessarily preclude a recommendation to transfer the property to a private entity for Municipal Use or to reclassify it as Surplus.

Section 2. Procedures to govern the reuse, or disposal of City real property. The Procedures for Evaluation of the Reuse and Disposal of the City's Real Property set forth in Attachment A to this Resolution are hereby adopted.

Section 3. Policies and procedures to govern the acquisition of City real property. The Policies and Procedures for Evaluation of the Acquisition of Real Property Rights set forth in Attachment B to this Resolution are hereby adopted.

Section 4. Recommendations to Council. Each recommendation from the Executive to Council on the acquisition of new property, or the reuse or disposal of existing property should clearly articulate the rationale for the recommendation.

Section 5. Scope and Intent Regarding Use of the Policies and Procedures. Unless otherwise provided by ordinance, or superseded by Charter, state or federal law, all City decisions involving acquisition, reuse or disposal of City real property are to be governed by the policies and procedures adopted by this Resolution. These policies and procedures are intended for internal decisionmaking and are not intended to create rights for any individual. Failure to follow these policies and procedures shall not serve as a basis for invalidating any acquisition, disposal, or other decision regarding the use of real property by the City, nor shall failure to comply with these policies and procedures delay any closing, entitle anyone to damages, or otherwise provide a cause of action for any relief.

Section 6. Reporting. The Council directs all City departments to follow the policies and procedures adopted by this Resolution. In order to evaluate the effectiveness of the policies and the procedures and their regularity of use, the Council directs the Executive to report to Council by December 31st of each year on difficulties or issues with the implementation of these policies and procedures.

Adopted by the City Council the _____ day of _______________, 1998, and signed by me in open session in authentication of its adoption this _____ day of _______________, 1998.

________________________________________

President of the City Council

THE MAYOR CONCURRING:

________________________________________

Paul Schell, Mayor

Filed by me this _____ day of _______________, 1998.

________________________________________

City Clerk

(Seal)

Tony Kilduff

Res9

7/13/98

V #6

Attachment A: Procedures for the Evaluation Of the Reuse and Disposal of the City's Real Property (PDF)

Attachment B: THE CITY OF SEATTLE POLICIES AND PROCEDURES TO EVALUATE THE ACQUISITION OF REAL PROPERTY RIGHTS

TABLE OF CONTENTS

1.0 Definitions 3 2.0 Purpose 3 3.0 Policy Summary 3 4.0 Scope 4 5.0 Guiding Principles 4 6.0 Roles 5 6.1 Real Estate Services 5 6.2 Acquiring Department 6 6.3 Real Estate Oversight Committee 6 7.0 Planning for the Acquisition of Real Property Rights 7 8.0 Real Estate Services Review 7 9.0 Analysis 7 9.1 Factors to Consider in Analysis 7 9.2 Feasibility Analysis 8 9.3 Site-Specific Analysis 8 10.0 Projects Requiring Real Estate Oversight Committee Review 9 10.1 Criteria for Review during Feasibility Analysis 9 10.2 Criteria for Review during Site-Specific Analysis 10 11.0 Real Estate Oversight Committee Review 10 12.0 Public Input 10 13.0 Transaction Process 10

Attachment 1 Role of Real Estate Services in Various Types of Property Rights or Property Rights Transactions.

1.0 DEFINITIONS

Acquiring The City department wishing to acquire jurisdiction over a Department Real Property Right.

Real Estate City organization in the Executive Services Department Services(RES). (ESD), Facility Services Division, that is responsible for strategic or "corporate" management of City Real Property(except for those properties outside Seattle, those properties actively used for power or water distribution, those properties under the control of the Seattle Center, those properties leased by the Director of Neighborhoods pursuant to SMC 3.35.080 for use as a P-Patch community garden or another, similar, open space purpose, and properties for which the City Charter specifically provides for jurisdiction by a specific department other than ESD).

Real Estate A committee of City department heads (or their designees) Oversight appointed by the Mayor and chaired by the Deputy Mayor or Committee other Mayoral designee, that has the authority to review and make recommendations to Departments or to the Executive on Real Property matters.

Real Property A comprehensive database of information cataloging Real Asset Management Property owned by The City. Information System (RPAMIS)

Real Property Land and appurtenances to land, including buildings, structures, fixtures, fences, and improvements erected upon or affixed to the same.

Real Property A legal share of ownership in Real Property, whether the Rights entire ownership, as in a fee simple interest, or partial ownership, as in a leasehold interest.

2.0 PURPOSE

These policies and procedures establish a process for evaluating the acquisition of Real Property Rights by The City of Seattle. The need to acquire property rights-whether at a single location or many sitesmay result from strategic, long-term, or capital improvement planning. A broad range of purposes may be realized by the acquisition, including the addition of land area, expansion of existing facilities, and creation of new facilities.

3.0 POLICY SUMMARY

As soon as a City department anticipates the need for the City to acquire Real Property Rights, it should start planning for the potential acquisition. The level of assistance to be provided in the prospective acquisition by Real Estate Services (RES), a City organization within the Executive Services Department, should be established by reviewing Attachment 1 to these policies and procedures, Role of Real Estate Services in Various Types of Property Rights or Property Rights Transactions, and by consulting with RES. Prospective acquisitions may be subject to a general feasibility analysis as well as a site-specific analysis, results of which should be reviewed by the Real Estate Oversight Committee, as well as the general public when appropriate. Proposed Acquisitions approved by the Acquiring Department, RES, the Real Estate Oversight Committee, and the Law Department are submitted to City Council for final authorization.

4.0 SCOPE

These policies and procedures apply to all City departments and agencies, and to all acquisitions of Real Property Rights by the City, except as otherwise provided by ordinance, charter, or existing law.

5.0 GUIDING PRINCIPLES

A. It is the intent of the City to strategically utilize its inventory of Real Property to further the City's goals while avoiding unnecessary acquisition of additional Real Property Rights.

B. Decisions regarding acquisition of Real Property Rights should reflect the following:

Effective and efficient use of the City's current real property assets

A long-term view

A balance of operational, financial, environmental, and other relevant factors.

C. These policies and procedures are not intended to supersede policies or procedures reflected in any ordinances or resolutions adopted by the City Council that specifically authorize the acquisition of Real Property Rights. In cases of inconsistency or conflict, the specific policies adopted by the City Council for the property in question shall prevail. Where superseding requirements are in effect, these policies and procedures shall remain applicable to the extent practicable.

D. Except as otherwise delegated by ordinance, final decisions regarding the acquisition of Real Property Rights shall be made by the City Council. Any negotiations entered into by the City prior to final authorization by City Council, when needed, shall clearly communicate that the final decision is to be made by City Council.

F. The Executive's recommendations to City Council on the acquisition of Real Property Rights that may have significant City-wide implications should be made by the Real Estate Oversight Committee (REOC), to the extent not otherwise prohibited. This committee includes the Executive Services Director, the Director of the Strategic Planning Office, the Director of Seattle Public Utilities, the Director of the Department of Neighborhoods, the Director of the Office of Economic Development, the Superintendent of City Light, the Superintendent of Parks & Recreation, the Director of the Department of Construction and Land Use, and the Director of Transportation.

G. The decision-making process described herein shall be interpreted and applied in compliance with all applicable federal, state, and local laws and regulations, and shall be consistent with the City of Seattle Comprehensive Plan.

H. Decisions regarding the acquisition of Real Property Rights should consider plans and policies adopted by the City Council that provide guidance for the use of property located within identified geographic areas.

I. These policies and procedures are intended as guidelines for the City. No express or implied rights or responsibilities are intended to be created for any party by these policies and procedures. Failure to comply with these policies and procedures is not intended to give any party the right to change, rescind, or delay any decision or transaction or to provide any claim for damages or other relief.

J. These policies and procedures are intended to encourage public participation in the process for acquiring Real Property Rights and to support neighborhood planning efforts.

K. The Law Department should be consulted as needed in proposed acquisitions and at minimum, on the following matters: (a) compliance of proposed acquisition actions with local, state, and federal ordinances, statutes, regulations, plans, and policies; (b) the need for environmental analyses, including environmental due diligence and the procedures required under the State Environmental Policy Act (adopted in Seattle Municipal Code ch.25.05); and (c) the form and substance of any proposed legislation and transaction documents.

6.0 ROLES

Three major participants are involved in decisions about acquiring Real Property Rights: Real Estate Services (RES) (of the Executive Services Department), the Acquiring Department, and the Real Estate Oversight Committee.

6.1 REAL ESTATE SERVICES

RES has support, review, and strategic planning functions:

Advise and assist other City departments in planning and implementing acquisitions Identify and evaluate City-wide issues and impacts of proposed acquisitions Identify, evaluate, and recommend real estate strategies Coordinate City-wide analysis and review of proposed acquisitions

Help implement acquisition of Real Property Rights.

Review proposals to acquire Real Property Rights, except for: Transportation and utility acquisitions within existing right-of-way corridors Acquisitions for which no RES role is identified in Attachment 1 to these policies and procedures or which are otherwise authorized by ordinance or otherwise applicable law

Keep abreast of developments inside the City government (e.g., future requirements for Real Property Rights, land use changes on City properties) and in the marketplace (e.g., properties for sale) so as to identify opportunities to:

Save money Generate economic development Achieve community goals.

RES's level of involvement in prospective real estate transactions varies with the type of property right to be acquired and the type of transaction involved, as indicated in Attachment 1, Role of Real Estate Services in Various Types of Property Rights or Property Rights Transactions. The attachment is not an exhaustive list; additional types of transactions and other roles for RES are possible. RES's role is most extensive for fee simple and leasehold interest acquisitions.

6.2 ACQUIRING DEPARTMENT

Initiative for acquiring Real Property Rights rests with the Acquiring Department. Its specific roles are as follows:

Identify the potential need for such acquisitions Plan and execute acquisitions in accordance with these policies and procedures Coordinate with RES, as provided herein.

6.3 REAL ESTATE OVERSIGHT COMMITTEE

The Real Estate Oversight Committee has review, advisory, and dispute Resolution functions:

Review acquisition projects that involve City-wide issues (as described in Sections10.1 and 10.2)

Advise the Acquiring Department and RES on approaches to issues raised by the proposed acquisition, public involvement, and legislative strategies

Make Executive recommendations on policy issues

Recommend a course of action when the Acquiring Department and RES are unable to agree on an aspect of an acquisition project.

7.0 PLANNING FOR THE ACQUISITION OF REAL PROPERTY RIGHTS

Planning for the acquisition of Real Property Rights should begin at the earliest possible phase of project development. The Acquiring Department should identify all issues and requirements then known, including the following:

Program or operation description

Location requirements or preferences

Criteria for type of real property

Potential community concerns

Relevant statutes, policies, goals, or guidelines

Any other pertinent issues.

The Acquiring Department should refer to Attachment 1 for general guidance on what role, if any, RES may have in the proposed acquisition. The Acquiring Department should contact RES if RES's participation in the acquisition is specified in the attachment.

8.0 REAL ESTATE SERVICES REVIEW

If RES has a role in the acquisition or if further information is needed to make that determination, the Acquiring Department should provide RES with as much information regarding the anticipated project as has been developed at the time. Jointly, the Acquiring Department and RES should identify the tasks to plan, analyze, and execute the transaction, and should agree upon their respective roles.

Specific acquisitions that have already been authorized by City Council or that are part of a broad program approved by City Council are not subject to further analysis and review by RES. Examples might include open space acquisitions, new transportation and utility corridors, and environmental mitigation programs.

9.0 ANALYSIS

Proposals to acquire Real Property Rights are subject to a two-step analysis: a general feasibility study and-with consensus to pursue the acquisition-a site-specific analysis.

9.1 FACTORS TO CONSIDER IN ANALYSIS

Proposed acquisitions of Real Property Rights should be examined throughout the decision-making process in light of the following considerations and any others that may be relevant:

1. Operational requirements of the Acquiring Department 2. Current City property inventory and possible co-location opportunities 3. Market conditions and trends 4. Acquisition and transaction costs 5. Projected future revenues and expenses 6. Immediate and long-term needs, issues, and plans 7. Funding mechanisms 8. Legal requirements or constraints, including state and federal guidelines 9. Environmental and other risk management issues 10. State Environmental Policy Act requirements 11. Community impacts 12. The City's Comprehensive Plan and adopted Neighborhood Plans 13. Other City Council adopted plans 14. Public input

9.2 FEASIBILITY ANALYSIS

An analysis is undertaken to determine the overall feasibility of the proposed acquisition. An outline of the study should be prepared by the Acquiring Department, in coordination with RES if involved, reflecting as many of the factors noted above for which sufficient information is available. Specific writing and management assignments should be decided collaboratively by the Acquiring Department, RES if involved, and any other City department with an identified interest.

Upon completion of the feasibility analysis, the Acquiring Department and RES should jointly decide the following:

The next steps to take Whether or not to proceed with the project Roles in pursuit of the acquisition.

Any item that cannot be resolved internally should be addressed by REOC.

9.3 SITE-SPECIFIC ANALYSIS

If the proposed acquisition will be pursued further, a more detailed study is undertaken by the Acquiring Department and/or RES (as established in Section 8.0). For each specific site under consideration, the following subject areas should be analyzed: physical characteristics, site suitability for the proposed use, and all relevant factors listed in Section 9.1. Results should be documented in a report summarizing feasible options, preliminary recommendations, and opinions. Copies should be submitted to the director of the Acquiring Department, the Executive Services Director (if RES is involved), and, if required by Section 10.0, the Real Estate Oversight Committee.

10.0 PROJECTS REQUIRING REAL ESTATE OVERSIGHT COMMITTEE REVIEW

The Acquiring Department and RES, if involved, should evaluate each proposed acquisition project to determine whether it requires review by the Real Estate Oversight Committee. Two sets of criteria are to be used in this evaluation. A project meeting any criterion in the first set should be reviewed at the earliest reasonable phase, and no later than the completion of the feasibility analysis. Projects not subject to this early REOC review are screened against the second set of criteria; if any criterion is met, review should occur when the potential acquisition site is identified. Projects that do not meet any of the criteria in either set are not subject to REOC review. However, if any of the issues are subsequently raised as the project progresses, the project should be presented to REOC at the earliest opportunity thereafter.

Notwithstanding these criteria, REOC can review a project at any time if so requested by RES, the Acquiring Department, the Mayor, or the City Council.

10.1 CRITERIA FOR REVIEW DURING FEASIBILITY ANALYSIS

An acquisition project is subject to early REOC review if the answer to any of the following questions is "Yes." The review should occur at the earliest reasonable phase of study, and in no case later than completion of the feasibility analysis.

Could the project have a significant effect-positive or negative-on the economic vitality of the community or the City? Could the project have significant land use implications? Will the project result in a large number of acquisitions? Is the project estimated to cost more than $5 million for a single site (including multiple adjacent parcels) or more than $15 million for a program of acquisitions (e.g., utility corridor, open space, environmental mitigation)? Will new voter-approved bonds be proposed as a funding source?

Is strong community sentiment anticipated?

Is there lack of consensus regarding process or options among departments or between the Acquiring Department and RES?

Is the project likely to be inconsistent with the Comprehensive Plan?

Is the acquisition likely to require significant intergovernmental involvement?

10.2 CRITERIA FOR REVIEW DURING SITE-SPECIFIC ANALYSIS

If REOC review was not required during the feasibility analysis and if the answer to any of the following questions is "Yes," then the project is subject to review when potential sites are identified.

Has any significant environmental concern been identified at any sites?

Will any significant relocation benefit payment by the City be required?

Is acquisition by condemnation likely?

Will City acquisition result in a significant change of use, as defined by the City's Land Use Code?

11.0 REAL ESTATE OVERSIGHT COMMITTEE REVIEW

Review by the Real Estate Oversight Committee is initiated when the Acquiring Department and/or RES (as determined in Section 8.0) submits a report, the content of which depends upon the current stage of the acquisition project. Whether or not the feasibility and site-specific analyses are available, the report should describe the issues in sufficient detail to generate REOC's strategic, policy, and legislative guidance. In addition to providing guidance, REOC may also request further analysis, eliminate options from consideration, propose a public involvement process, direct further review at specific milestones, or recommend other actions it deems appropriate to the project. If legislation is required at this phase, REOC may also propose a recommendation to City Council from the Executive.

12.0 PUBLIC INPUT

When appropriate and in accordance with existing statutes or adopted City policies, the Acquiring Department and RES, if involved, should develop a process for soliciting comment by citizens and community groups. Public involvement should be sought at the earliest reasonable phase of project development, but not so early as to unduly interfere with the City's ability to negotiate or otherwise implement its strategy.

13.0 TRANSACTION PROCESS

To the extent practicable, RES (or the Acquiring Department for transactions not involving RES per Attachment 1), in consultation with the Law Department, should establish a standard procedure for completing the transaction for each type of acquisition of Real Property Rights.

ATTACHMENT 1

ROLE OF ESD REAL ESTATE SERVICES IN VARIOUS TYPES OF PROPERTY RIGHTS OR PROPERTY RIGHTS TRANSACTIONS

TRANSACTION SUBTYPE OR WHEN DOES REAL ESTATE WHAT IS ENTER IN TYPE DESCRIPTION SERVICES REVIEW? SCOPE OF REAL RPAMIS ESTATE SERVICES' REVIEW? Air Rights City acquires rights NA NA Yes above ground, structures Drug Seizures City acquires real NA NA Yes property rights pursuant to police action Fee Simple Full property rights As soon as potential Conduct analysis Yes will be acquired need for property as outlined in rights determined* policies and determine whether REOC review needed; coordinate acquisition

Condemnation A method of acquiring At the time it is Review as described Yes of Fee or property rights determined above for fee simple Easement condemnation may be required Covenants Restrictions on use that As covenants are being Identify whether other Yes provide the City an considered departments should be interest in real property notified; whether issues require further review or oversight

Dedications Resulting from During DCLU Review and permitting process application review route to appropriate Yes except process dept. for comments for ROW

Donations Property rights proposed When proposal Conduct analysis as outlined Yes to be given to City is first made* in policies and determine whether REOC review needed

Easements For a new/expanded As soon as potential Conduct analysis as utility corridor need for property outlined in policies No pipeline, street or rights determined* and determine whether REOC transmission line /ROW review needed

Access easements When proposed Identify whether other Yes departments should be notified; require further whether issues review or oversight

Slope Rights NA NA Yes

Utility Distribution NA NA Yes Easements

Temp. Construction NA NA No Easements

Franchises Right or license to NA NA Yes occupy or use another jurisdiction's public property

Leases of non Long Term When need for space Review long term Yes City owned (over 5 years) is determined leases for Citywide property impacts Short Term When need for space Identify whether other Yes ( 5 years or less) is determined departments should be notified; if issues require further review or oversight

LID ESD-Finance forecloses When foreclosure under Review property issues, incl. Yes foreclosure to protect LID interests consideration Environmental and potential City uses

Offer to Sell An offer to sell When proposal is first Circulate analysis as outlined in policies Yes to be given to City made* and determine whether REOC review needed

Easements For a new/expanded As soon as potential Conduct analysis as outlined in policies No utility corridor need for property and determine whether REOC review needed pipeline, street or rights determined* transmission line /ROW

Access easements When proposed Identify whether other departments should Yes be notified; whether issues require further review or oversight

Slope Rights NA NA Yes

Utility Distribution NA NA Yes Easements

Temp. Construction NA NA No Easements

Franchises Right or license to NA NA Yes occupy or use another jurisdiction's public property

Leases of non Long Term (over 5 years) When need for space is Review long term leases for Citywide Yes City owned determined impacts property Short Term ( 5 years or When need for space is Identify whether other departments should Yes less) determined be notified; if issues require further review or oversight

LID ESD-Finance forecloses When foreclosure under Review property issues, incl. Yes foreclosure to protect LID interests consideration Environmental and potential City uses

Offer to Sell An offer to sell When proposal is first Circulate