AN ORDINANCE relating to transferable development rights, providing for administration of the City TDR Bank, and amending SMC Section 3.20.320.

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Section 3.20.320 of the Seattle Municipal Code, which section was last amended by Ordinance 119484, is hereby further amended as follows:

3.20.320 TDR Bank created.

A. General. The City may from time to time purchase and sell transferable development rights ("TDR") in accordance with the Land Use Code, Title 23, and the provisions of this section. TDR held by the City for potential sale, whether from land owned by the City or as a result of TDR purchases, are considered to be in the City's "TDR Bank". The TDR Bank is a program rather than a separate entity, fund or City department.

B. TDR Eligible for Purchase and Sale. Landmark TDR, housing TDR, and open space TDR, each as defined in SMC Chapter 23.84, are Transferable development rights ("TDR") from landmark performing arts theaters as defined in Section 23.49.033 shall be eligible for purchase and sale by the City's TDR Bankestablished under Ordinance No. 114029, to the same extent as TDRs from low income housing or low and low-moderate income housing, subject to the provisions of this section. Any TDR eligible for transfer under SMC Chapter 23.49 are eligible for sale by the TDR Bank.

C. Administration. The Office of Housing has general responsibility for the administration of the TDR Bank. The Housing Director is authorized to execute, deliver, and accept for and on behalf of the City, agreements, deeds and other instruments in order to carry out TDR Bank transactions authorized by ordinance.

D.B. Housing TDR Purchases. The Housing Director may negotiate the purchase of housing TDR, subject to approval of each purchase by ordinance and subject to budget authority. The Office of Housing shall conduct a sSubsidy review shall be a precondition prior to any purchase of housing TDR for by the TDR Bank, whether or not other public funds or subsidies are involved. The price paid by the City for housing TDR shall not exceed the lesser of the financing gap as determined by the subsidy review process or the reduction in value of the property resulting from the transfer of TDRs and the burdens imposed, including both use restrictions and affirmative covenants regarding the preservation of the property, as a condition of the transfer.

C. As an alternative to purchases, the TDR Bank may lease and/or option TDRs from landmark performing arts theaters. In addition, the TDR Bank may purchase fewer than all development rights and may accept a commitment for preservation of a landmark performing arts theater for less than forty (40) years, but no less than ten (10)years, in order to permit commencement of a phased rehabilitation program.

D. In the event of a lease, option, or limited term commitment as described in subsection C above, controls imposed on the landmark performing arts theater under Chapter 25.12 shall not lapse automatically upon expiration of the relevant period, but the owner shall then have the right to petition for removal of controls on the same basis as other landmark owners.

E. The Office of Housing is authorized to negotiate purchases, leases and/or options of TDRs from landmark performing arts theaters, subject to Council approval by ordinance and appropriation of funds. Priority consideration shall be given to TDRs from land-mark performing arts theaters with low-income housing that is to be preserved as part of the rehabilitation under a binding commitment from the owner and all others with interests in the property. Landmark performing arts theaters with housing shall not be eligible for TDR bank purchases if any on-site low or low-to-moderate housing is to be eliminated, unless the owner enters into a voluntary agreement satisfactory to the Director of Housing that guarantees replacement of any low-income housing with low-income housing, and any low-to-moderate income housing with low-to-moderate income housing, that will remain affordable to lowor low-to-moderate income tenants, as the case may be, or contributes an amount equal to the cost to replace such lowor low-to-moderate income housing with housing affordable to lowor low-to-moderate income tenants, as the case may be, in addition to any agreement or contribution made in order to qualify for housing bonus.

E. Open Space TDR Purchases. The Housing Director or his or her designee shall consult with the Director of Neighborhoods, the Director of the Department of Design, Construction and Land Use, and the Superintendent of Parks and Recreation, or their respective designees, regarding any proposed purchase of open space TDR for the TDR Bank. Following a joint decision of all such officers in favor of acquiring open space TDR from a site, the Housing Director, or such other officer as the Mayor may designate, may negotiate an agreement for the purchase of open space TDR from that site, subject to approval by ordinance and to budget authority.

F. Landmark TDR Purchases. The Housing Director or his or her designee shall consult with the Director of Neighborhoods or his or her designee regarding any proposed purchase of Landmark TDR for the TDR Bank. The Director of Neighborhoods, or his or her designee, shall consult with the Landmarks Preservation Board regarding the proposed purchase. Following a joint decision by such Directors or their designees in favor of acquiring the Landmark TDR from a site, the Housing Director, or such other officer as the Mayor may designate, may negotiate the purchase of Landmark TDR from that site, subject to approval by ordinance and to budget authority.

G. Sale of TDR in General. The Housing Director or his or her designee may negotiate the sale of any TDR held in the TDR Bank, subject to approval of each sale by ordinance.

Section 2. The provisions of this ordinance are declared to be separate and severable. The invalidity of any particular provision shall not affect the validity of any other provision.

Section 3. 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 ____________, 2001, and signed by me in open session in authentication of its passage this _____ day of _________________, 2001. _____________________________________ President _______ of the City Council

Approved by me this _____ day of _________________, 2001. ___________________________________________ Mayor

Filed by me this _____ day of ____________________, 2001. ___________________________________________ City Clerk

08/6/01 (Ver. 3)