AN ORDINANCE establishing a Downtown Parking and Business Improvement Area; levying special assessments upon the businesses, multifamily residential or mixed-use projects within the area; providing for the deposit of revenues in a special account and expenditures therefrom; providing for collection of and penalties for delinquencies; providing for the establishment of a Ratepayers Advisory Board, and providing for an implementing agreement with a program manager.

WHEREAS, the businesses, multifamily residential or mixed-use projects located within the area and subject to sixty percent or more of the special assessments levied by this ordinance filed a petition with The City of Seattle to establish a Parking and Business Improvement Area pursuant to RCW 35.87A, which is filed in C.F. 303072; and,

WHEREAS, the City adopted Resolution 29966, initiating a parking and business improvement area via the resolution method instead of the petition method as provided for by RCW 35.87A.030; and,

WHEREAS, pursuant to RCW 35.87A.040, the City on June 7, 1999 adopted Resolution 29965, entitled "A RESOLUTION of intention to establish a Downtown Parking and Business Improvement Area, and fixing a date and place for a hearing thereon," and declaring its intent to establish the same; and,

WHEREAS, the Downtown Business Improvement Area ("BIA") established herein is for the purpose of enhancing conditions for the operation of those businesses, multifamily residential or mixed-use projects; and the budget of the BIA shall be dedicated to activities in addition to basic services provided by The City of Seattle, in accordance with Resolution 29706 and the non-binding Statement of Principles signed by the Mayor and the Chair of the Downtown Seattle Association; and,

WHEREAS, as provided by Resolution 29965, published in the Daily Journal of Commerce on June 11, 1999, the City Council, through its Business, Economic, and Community Development Committee held a public hearing thereon on June 30, 1999, at and after 5:30 p.m. in the City Council Chambers, 11th Floor, Municipal Building, 600 4th Avenue, Seattle, Washington;

Now, Therefore, BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Area Established. As authorized by Chapter 35.87A RCW, there is hereby established a Downtown Parking and Business Improvement Area ("Downtown Business Improvement Area" or "DBIA") within the following boundaries and as shown on the map attached as Exhibit "A" (when a street or alley is named, the area boundary is the centerline of the right-of-way including vacated portions unless otherwise specified in the description):

From the center of the intersection of 4th Avenue and Denny Way, then south therefrom along 4th Avenue to Cedar Street, then east therefrom to the alley between 4th and 5th Avenues, then south therefrom to Vine Street, then east therefrom to 5th Avenue, then south therefrom to Lenora Street, then west therefrom to the Alaskan Way Viaduct, then northwest under the Alaskan Way Viaduct to Elliott Avenue, then north therefrom to Bay Street, then west therefrom to the outer harbor line, then south therefrom (including from Pier 71 to Pier 47) to the intersection of South Jackson Street and Alaskan Way, then south therefrom to South King Street, then east therefrom to 4th Avenue South, then north therefrom to South Washington Street, then east therefrom to 6th Avenue South, then north therefrom to the western edge of Interstate Highway 5, then north therefrom along the eastern side of 6th Avenue to Spring Street, then northeast therefrom between the eastern boundary of Naramore Fountain Park and the western boundary of Interstate 5, to Freeway Park's southern boundary on Seneca Street, then east therefrom inside Freeway Park across Interstate 5 to the park's eastern boundary at Hubbell Place, then northeast therefrom inside the park to University Street, then east therefrom beneath 8th Avenue one-half block to 900 University Street, then north therefrom along the west side of 900 University Street, then east therefrom inside the park to 9th Avenue, then north therefrom on 9th to the intersection of Union Street and Hubbell Place, then northeast therefrom on Hubbell Place to Pike Street, then west therefrom to the western border of Interstate 5, then north therefrom to Denny Way, then west therefrom to the point of beginning.

In case of a conflict between the description of the area and the map, the description shall control.

Section 2. Programs. Special Assessment revenues shall be used for the following component programs.

A. Public Safety.

The public safety program will identify, report, and act as problem-solvers on public safety issues, in coordination with the Police Department, mental health and substance abuse programs, and human service agencies.

B. Maintenance. The maintenance program will provide sidewalk sweeping and graffiti removal, special projects to clean up problem areas, monitoring and problem solving for alley maintenance and trash removal problems, and possible routine maintenance of automated public restrooms.

C. Marketing and Public Relations.

The marketing and public relations program will promote a positive image of the assessment area. The program will also track shifts in Downtown's economy, research new opportunities and provide information on impacts of economic changes.

D. Reserve Fund

A reserve fund will be maintained in order to compensate for shortfalls in assessment collections and to provide funding for unanticipated expenses and new opportunities.

The listing of services is illustrative and not exclusive. All such activities are supplemental to street maintenance and law enforcement provided by the City and are not intended to displace any services regularly provided by municipal government.

The proposed budget for this program is as follows:

5-YEAR BUDGET PLAN FOR DOWNTOWN BUSINESS IMPROVEMENT AREA

Year 1 Year 2 Year 3 Year 4 Year 5

Public Safety $1,036,703 $1,067,804 $1,099,838 $1,132,833 $1,166,818 Totals $5,503,996

Maintenance 672,456 692,630 713,409 734,811 756,855 Totals 3,570,161

Marketing 420,285 432,894 445,880 459,257 473,034 Totals 2,231,350

R & D 168,114 173,157 178,352 183,703 189,214 Totals 892,540

Reserve Fund 140,095 144,298 148,627 153,086 157,678 Totals 743,784

Management 364,247 375,174 386,430 398,023 409,963 Totals 1,933,837

Totals $2,801,900 $2,885,957 $2,972,536 $3,061,713 $3,153,562 $14,875,668

This budget plan shows proposed expenditures based upon assessments collected from ratepayers.

Section 3. Levy of Special Assessments. To finance the programs authorized in Section 2, there is levied upon and shall be collected from the businesses, multifamily residential properties (buildings containing more than four residential units), and mixed-use properties (buildings with both multi-family residential and commercial units) (collectively, "Ratepayers") in the Downtown Business Improvement Area described in Section 1, a Five-Year special assessment in an amount not to exceed Fourteen Million, Eight Hundred Seventy Five Thousand, Six Hundred SixtyEight Dollars ($14,875,668.00), which amount shall be collected semiannually. The total Assessment is measured by the type of use and rate of assessment in the following table, subject to the calculations and limitations in this Section:

Five-Year Assessment = (Land Square Footage x $1.5379) + (Total 1997 Assessed Value of Site (Property + Improvements)/$1,000 x $1.5927). Records for the assessment calculation and the Ratepayer are based on information provided by the King County Assessor's office for the year 1997, its database, and by on-site surveys. Modifications or limitations to these assessments are described below. No five-year assessment for any individual parcel shall exceed a total amount equal to 9.2909 x (Total Assessed Value/$1,000). This rate is called the "Benefit Ceiling Rate". For the following special classifications of Ratepayers a Special Benefit Ceiling Rate shall be applied as set forth below to determine the rate most reflective of benefit for that particular class of Ratepayer:

1. Commercial Mixed-Use $ 9.29/$ 1,000 of total assessed value

2. Surface Parking $ 5.31/$ 1,000 of total assessed value

3. Multi-Family Residential $ 3.45/$ 1,000 of total assessed value or

Apartments: the lesser of: $ 345.09 per unit

4. Multi-Family Residential $ 1.43/$ 1,000 of total assessed value or Condominiums: the lesser of: $ 345.09 per unit

5. Industrial Warehouse $ 1.8581/$ 1,000 of total assessed value

6. Multi-Family Residential Apartments $ .93/$ 1,000 of total assessed value or possessing a rent restriction covenant: the lesser of $ 39.82 per unit

7. Hotel: the lesser of: $ 7.95/$ 1,000 of total assessed value or $ 292.00 a room

8. Non Residential (Owned by a Non-Profit) $ 1.86/$ 1,000 of total assessed value

9. Piers $ .32 per square foot of pier area.

Ratepayers shall pay the lesser of the Benefit Ceiling Rate or the Special Benefit Ceiling Rate, as the case may be, with the exception of piers, which shall pay the Special Benefit Ceiling Rate. Property owned by governmental entities or public utilities, and land that is vacant, shall not be assessed. All businesses, multifamily residential or multi-use projects within the area shall be subject to the provisions of this special assessment as authorized by RCW 35.87A.010.

Section 4. Rate Changes. Changes in the assessment rate shall only be made by ordinance and as authorized in RCW 35.87A.140.

Section 5. Deposit of Revenues. There is hereby established in the City Treasury's Business Improvement Area Fund, a separate subaccount designated the Downtown Business Improvement Area Account (called "the Account"). The following monies shall be deposited in the Account:

(a) All revenues from special assessments levied under this ordinance;

(b) All income to the City from public events financed with special assessments;

(c) Gifts and donations for the Account;

(d) Interest and all other income from the investment of Account deposits;

(e) Restitution moneys for expenditures made from the Account and reimbursements due to the Account.

Section 6. Collection Schedule. Special assessments shall be collected on a semi-annual basis. The Director, Executive Services Department, or the Director's designee ("Director") may change the billing frequency by directive. A copy of the directive shall be mailed to all Ratepayers not less than 90 days before the new billing cycle is to take effect.

Section 7. Delinquent Payments. If an assessment has not been paid within thirty (30) days after its due date, the Director shall send a reminder notice and add a Five Dollar ($5.00) processing fee. If the assessment is not paid within sixty (60) days after its due date, a delinquency charge shall be added in the amount of ten percent (10%) of the assessment in addition to an additional Five Dollar ($5.00) processing fee. All assessments that are not paid within sixty (60) days of the due date shall also bear interest from the due date at twelve percent (12%) per annum. The Director is authorized to bring an action to collect any unpaid assessments in any court of competent jurisdiction in King County.

Section 8. Notices. Notices of assessment, installment payments, or delinquency, and all other notices contemplated by this ordinance may be sent by ordinary mail or delivered by the City to the address shown on the records of the Director, and, if no address is shown there, to the address shown on the records of the County Assessor. Failure of the Ratepayer to receive any mailed notice shall not release the Ratepayer from the duty to pay the assessment and any interest and delinquency charges on the due date.

Section 9. Disputes. Any Ratepayer aggrieved by the amount of an assessment or delinquency charge may on request obtain a meeting with the Director or the Director's designee. If not satisfied, the Ratepayer may appeal the matter to the City's Hearing Examiner in the manner provided for a contested case under Chapter 3.02 of the Seattle Municipal Code. The Ratepayer has the burden of proof to show that the assessment or delinquency fee is incorrect.

Section 10. Expenditures. Expenditures from the Account shall be made upon vouchers drawn by the Director and shall be used exclusively for the statutory purposes each as more fully defined in Section 2.

Section 11. Ratepayers Advisory Board. The Director shall appoint an interim Ratepayers Advisory Board comprised of Ratepayers from the Area within thirty days of the effective date of this ordinance. The Director shall solicit recommendations from the Ratepayers, and shall appoint the interim board from that list. The interim Ratepayers Advisory Board will recommend a permanent Ratepayers Advisory Board (the "Board") within ninety days of the effective date of this ordinance. The composition of the Board shall be representative of both the entire geographic area of the District and representative of the special classifications in Section 2.

The Director may appoint additional members to the Ratepayers Advisory Board to ensure that a broad representation of Ratepayers is provided. The additional members so appointed shall not exceed one-third (1/3) of the entire membership of the Board.

The Ratepayers Advisory Board shall be responsible for adopting bylaws and policy guidelines, providing advice and consultation to the Department initially, and to any individual or agency hired to manage the day-to-day operations of the Business Improvement Area program, on all matters related to the operation of the program.

The Ratepayers Advisory Board shall: meet at least once quarterly; recommend an annual work program and budget; address and discuss Ratepayer concerns and questions regarding the DBIA district and program; review all reports submitted to the Department by the program manager; and sponsor an annual Ratepayers' meeting.

At the annual Ratepayers' meeting, the Board shall submit for approval its proposed work plan and budget for the next year, and its recommendation regarding whether to continue with the current program manger. The work plan, budget, and recommendation regarding whether to continue with the current program manager must be approved by a majority vote of the Ratepayers attending the meeting.

Section 12. Administration. The Director shall administer the program for the City with authority to:

(a) Classify Ratepayers within the types of use under Section 3 and resolve ambiguities in the application of rates;

(b) Collect the special assessments; refund special assessments when overpaid or otherwise improperly collected; extend the deadline for payment and waive delinquency charges and interest whenever the delinquency results from extenuating circumstances beyond the Ratepayer's control, such as a casualty loss causing premature closure of the business or bankruptcy or the total payment due to the City (exclusive of penalty and interest) is Ten Dollars ($10.00) or less; and exempt homes for which the King County Assessor has granted an exemption from property taxes under RCW 84.36.381 .389 on account of the low income status of the owner resident.

(c) Calculate and collect the interest for late payments;

(d) After receiving the recommendation of the Ratepayers at their annual meeting, execute an annual program management contract with a Program Manager;

(e) Accept and deposit advance payment of assessments by ratepayers; accept donations from governmental agencies, the public, and owners and operators of businesses on land that is developed or redeveloped during the existence of the DBIA for DBIA programs.

Section 13. Contract for Program Management. The Director is authorized to contract with a Program Manager, after receiving the recommendation of the Ratepayers at the annual meeting, to administer the projects and activities. It is the intent of the City Council that the Director contract with the Downtown Seattle Association to administer the program during the initial year, and for each year thereafter for as long as the Ratepayers concur in its continuation as the Program Manager. The selection of a Program Manager upon the recommendation of the Ratepayers shall obviate compliance with the consultant selection procedures of Seattle Municipal Code Chapter 3.114 and Section 20.46A.170. The Seattle Police Department shall review any proposed contract for private security.

Section 14. Commencement of Assessments. Assessments shall commence as of the effective date of this ordinance.

Section 15. Ratification and Confirmation. The making of contracts and expenditures and the sending of assessment notices pursuant to the authority and prior to the effective date of this ordinance are hereby ratified and confirmed.

Section 16. This ordinance shall take effect and be in force thirty days from and after its passage and approval, if approved 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 ____________, 1999, and signed by me in open session in authentication of its passage this _____ day of _________________, 1999. _____________________________________ President _______ of the City Council

Approved by me this _____ day of _________________, 1999. ___________________________________________ Paul Schell, Mayor

Filed by me this _____ day of ____________________, 1999. ___________________________________________ City Clerk June 8, 1999 (Ver. 4)