FISCAL NOTE
|
Department: Office of
Economic Development |
Contact
Person/Phone: Ken
Takahashi 684-8378 |
CBO
Analyst/Phone: Janet Credo 684-8687 |
Legislation
Title:
AN ORDINANCE
relating to economic and community development; authorizing and providing for
the issuance by the City of a note for the purpose of supporting eligible
activities under the federal Section 108 program, including the acquisition and
rehabilitation of certain brownfields properties within the City of Seattle’s
Brownfields Showcase and Enterprise Communities; authorizing a Funding
Approval/Agreement and a contract with the United States Department of Housing
and Urban Development for a Section 108 guaranty of the note; authorizing
agreements with a custodian to establish separate accounts or funds;
authorizing loans of a portion of the note proceeds; authorizing acceptance of
a Brownfields Economic Development Initiative Grant and appropriating grant
funds for use to reduce debt service obligations on such loans; authorizing
related agreements; and ratifying and confirming prior acts.
Summary of the
Legislation:
This
legislation authorizes OED, on behalf of the City, to accept a “Section 108”
loan guarantee in the amount of $15,500,000 and a Brownfields Economic
Development Initiative grant in the amount of $1,750,000 (“BEDI Grant”). The proposed Section 108 loan pool and BEDI
Grant are for the acquisition and rehabilitation of brownfields properties
within the City’s Brownfields Showcase and Enterprise Communities.
Background (Include
justification for the legislation and funding history, if applicable):
The
City’s Brownfields Showcase and Enterprise Communities contain abandoned or
under-used properties, where expansion or redevelopment is hindered by real or
perceived environmental contamination, and which are generally known as
“brownfields” properties. Moreover, the
Nisqually Earthquake on February 28, 2001 further destabilized brownfields
properties, including damage to several historic and environmentally
contaminated buildings in Pioneer Square and the International District. As a result, there is now an immediate need
to rehabilitate such brownfields properties.
The
goal is to combine the Section 108 loan pool with a previously awarded HUD
Brownfields Economic Development Initiative grant, to make economically
feasible the acquisition and rehabilitation of brownfields properties in the
Brownfields Showcase and Enterprise Communities.
The
loan application includes three initial projects - 211 First Avenue, the
Buttnick Building and the City Loan Building - that are ready to proceed. Two other projects - the Cadillac Hotel and
the Compass Center - are currently being evaluated. After the evaluation is complete, these other two projects will
be presented to Council for inclusion into the Section 108 loan pool.
Public Private
Partnership Review Status:
Is
the project referenced in the legislation subject to P4 review? If yes, identify P4 review to date.
No.
Is the
legislation subject to public hearing requirements? If yes, what public hearings have been held to date?
Yes. A public hearing will be held before Council
committee consideration of this Ordinance and application to HUD for
approval. In addition, after HUD
approval of the application, a second public hearing will be held before
Council committee consideration of an ordinance.
Fiscal
Sustainability Issues (related to grant awards):
N/A.
Estimated Expenditure Impacts:
These expenditures will not be made
through the City but through the loan program managed by the Custodian,
therefore no expenditure authority has been requested.
|
FUND (List # and/or Account) |
2002 |
2003 |
2004 |
|
211
First Avenue South |
$1,592,000
(108 funds)* $179,742
(BEDI funds) |
|
|
|
Buttnick Building |
$3,616,000 (108 funds) $408,258 (BEDI funds) |
|
|
|
City
Loan Building |
$2,808,000
(108 funds) $317,032
(BEDI funds) |
|
|
TOTAL |
$8,921,032* |
|
|
One-time
$8,921,032 On-going
$____________
Proceeds from the HUD Section 108 loan
in the amount of $15,500,000 and proceeds from the Brownfields Economic Development
Initiative (BEDI) grant in the amount of $1,750,000 will be deposited with a
trustee/custodian or “Custodian”. The
Custodian will receive and disburse these funds according to an agreement with
the City. The Custodian will also be
authorized to receive repayments from the Loan Agreements of individual loans
made out of the HUD Section 108 loan pool of $15,500,000.
Currently, as reflected in the table
above, a total of $8,016,000 of loan proceeds from the HUD Section 108 loan
have been identified for use as loans for the following buildings: 211 First Avenue South, Buttnick Building
and City Loan Building. The remaining
HUD Section 108 loan proceeds of $7,484,000 will be set aside for more projects
yet to be identified.
Similarly, as reflected in the table
above, a total of $905,032 of grant proceeds from the HUD BEDI grant have been
identified for use as interest rate buydown for the loans on the following
buildings: 211 First Avenue South,
Buttnick Building and City Loan Building.
The remaining HUD BEDI grant proceeds of $844,968 will be set aside for
more projects yet to be identified.
Estimated Revenue Impacts:
The HUD funding will not be processed
through the City but through the loan program Custodian.
|
FUND (List # and/or Account) |
2002 |
2003 |
2004 |
|
Custodian
- Outside City Funds |
$8,921,032 |
|
|
|
|
|
|
|
TOTAL |
$8,921,032 |
|
|
One-time
$8,921,032 On-going
$____________
The remaining
HUD Section 108 and BEDI Grant funds of approximately $7,484,000 and $844,968
respectively will be received by the Custodian in the future when projects are
identified and approved by the City.
Estimated FTE Impacts:
|
FUND |
2002 |
2003 |
2004 |
|
N/A |
$0.00 |
|
|
|
|
|
|
|
|
TOTAL |
$0.00 |
|
|
# Full Time _______ # Part Time _______ # TES _______
Do positions
sunset in the future? If yes, identify
sunset date?
N/A
Other Issues
(including long-term implications of the legislation):
N/A