Form revised December 9, 2004

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Office of Economic Development	Steve Johnson/684-0208	Kristi Beattie/684-5266

Legislation Title:

AN ORDINANCE relating to community development in the Rainier Valley, approving an amendment to the operating plan for the Transit-Oriented Community Development Fund for Southeast Seattle; authorizing the Office of Economic Development to negotiate and execute a trust agreement and other agreements with the Rainier Valley Community Development Fund for the execution of a community development program; carrying forward appropriations; and ratifying and confirming prior acts.

· Summary of the Legislation:

This legislation authorizes an amendment to the operating plan (“the Plan”) passed in 2002 to govern the initial activities of the Transit Oriented Community Development Fund for Southeast Seattle.  The Operating Plan Amendment (“OPA”) contained in this legislation describes the products and services developed to implement the transit-oriented and community development activities of the Fund legislation as required by Section 3 of Ordinance 120796.   The passage of this legislation authorizes the Office of Economic Development to execute, deliver, perform, administer, modify and enforce contracts and a trust agreement with the Rainier Valley Community Development Fund (“the RVCDF”).

· Background: (Include brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

In April 2002, the City of Seattle entered into an agreement (Ord. 120796) with Sound Transit to establish, oversee, and capitalize Seattle’s portion of the Fund.  In December of the same year the City adopted an operating plan (Ord. 121021) to govern the initial activities of the Fund, including supplemental mitigation of impacts to Rainier Valley businesses due to Link light rail construction; apprenticeship preparation for residents of the Rainier Valley; and, preparation of receiving sites for businesses requiring relocation as a result of Link light rail construction.

Ordinance 121021 also required that there be an amendment to the original Plan, referred to as the Operating Plan Amendment (“the OPA”), before expenditure of any City of Seattle payments to the Fund on the transit-oriented and community development activities described in the Plan.  The City of Seattle (“the City”) and Sound Transit have subsequently contracted with the Rainier Valley Community Development Fund (“the RVCDF”) to implement the initial plan and prepare an amendment to the Plan to govern the community and transit-oriented development activities of the Fund as provided in this legislation.  The intent of the City in approving the OPA is that, subject to its approval by Sound Transit and to the completion of necessary agreements and other legal requirements, City funds, to the extent appropriated, may be disbursed for the Community Development Program (“the CDP”) activities described in the OPA.  

The passage of this legislation authorizes the Director of the Office of Economic Development (OED) to execute, deliver, perform, administer, modify and enforce contracts with RVCDF, and to deliver the specific products and services identified in the OPA for the implementation of the CDP.  Further, the Director of OED is authorized to execute, deliver, perform, administer, modify and enforce a trust agreement with the RVCDF as Trustee (“Trust Agreement”) governing the use of repayments of loans originated with Community Development Block Grant (CDBG) funds committed by the City and any assets of the RVCDF resulting directly or indirectly from the use of these CDBG funds.  The principal purpose of the Trust Agreement is to ensure that revolved money and loan assets resulting from the use of the City’s CDBG funds remain community-controlled and self-sustaining for the general welfare and benefit of the Rainier Valley community. 

· Please check one of the following:

__X__ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

__ __ This legislation has financial implications. (Please complete all relevant sections that follow.)