Form revised December 4, 2006

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks and Recreation	Donald Harris/4-8018	Tyler Running Deer/4-8075

Legislation Title: 

AN ORDINANCE relating to the Department of Parks and Recreation; authorizing the acquisition of real property located at 414 6^th Avenue South, otherwise known as Lots 3 and 4, Block 41, Town of Seattle, as laid out by D. S. Maynard, commonly known as D.S. Maynard’s Plat of Seattle according to the plat thereof recorded in Volume 1 of Plats, page 23, in King County, Washington; authorizing acceptance of the deed for open space, park, and recreation purposes; and authorizing acquisition by condemnation.

Summary and background of the Legislation:

This proposed legislation authorizes the Department of Parks and Recreation (Parks) to acquire real property located at 414 6^th Avenue South in the Chinatown/International District by negotiation or condemnation.  The legislation also allows for the acceptance of the deed to the subject property for open space, park, and recreation purposes.

The Neighborhood Parks, Green Spaces, Trails, and Zoo Levy (2000 Parks Levy) provides funds for the acquisition of new neighborhood parks and green spaces.  The 2000 Parks Levy program includes an Acquisition and Development Opportunity Fund (Opportunity Fund), making available up to $10 million to fund acquisition and development projects not identified for funding in the remainder of the Levy program.  The 2000 Parks Levy established a Parks and Green Spaces Levy Oversight Committee (Oversight Committee), with responsibilities to include adopting evaluation criteria and recommending Opportunity Fund awards to the Superintendent, Mayor and City Council. 

In 2001-2002, the Oversight Committee conducted an extensive public process regarding acquisition and development projects to be funded in the first cycle of the Opportunity Fund.  In 2002, the Oversight Committee recommended a cumulative Opportunity Fund award of $3 million to support the purchase of yet-to-be identified properties in the following Urban Center Villages:  Pioneer Square/International District, Denny Triangle, and the University District.  Ordinance 120869 authorized the Superintendent of Parks and Recreation to identify, evaluate, and recommend parcels for acquisition in the Urban Center Villages recommended by the Oversight Committee. 

A major focus of the Chinatown/International District Neighborhood Plan is parks, public safety and pedestrian space.  As a result, specific attention was paid to the needs for specific programming, physical design, additional police presence, and pedestrian improvements resulting in safe and dynamic public spaces.  The strategy included acquisition of new open space. 

As no suitable sites in Pioneer Square have yet been identified, DPR staff has moved forward with actively siting additional open space in the Chinatown/International District.

Parks staff met and communicated with Chinatown/International District community groups during park acquisition planning and in sponsoring a public meeting.  Many sites were compared to the Neighborhood Plan acquisition criteria of parks, public safety, and pedestrian space, both west of I-5 and east of I-5 (the Little Saigon neighborhood).  There was support for expanding an existing park to enhance sight lines and increase programming opportunities, thus enhancing public safety.  Hing Hay Park presented itself as the best opportunity for expansion via the purchase of the adjoining property to its west.  

The International District Post Office is a tenant on that property.  Existing postal operations will not be interrupted since the lease runs until 2010 and the Post Office has an option to renew through 2013.  The City will administer the lease and maintain building systems as required.  Park development is projected to occur in 2014.

Project Name:	Project I.D.	Project Location:	Start Date:	End Date
Pioneer Square/International District Acquisition	K733183	414 – 6^th Ave S	November 2002	January 2008

· Please check any of the following that apply:

____ This legislation creates, funds, or anticipates a new CIP Project.

____ This legislation does not have any financial implications.

X This legislation has financial implications.

Appropriations:  

Fund Name and Number	Department	Budget Control Level*	2007 Appropriation	2008 Anticipated Appropriation
TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes: Costs for this acquisition shall be appropriated from the 2000 Parks Levy Fund (33850) by separate budget ordinance.

Spending Plan and Future Appropriations for Capital Projects:

Spending Plan and Budget	2007	2008	2009	2010	2011	2012	Total
Spending Plan
Current Year Appropriation
Future Appropriations

Notes: Costs for this acquisition shall be appropriated from the 2000 Parks Levy Fund (33850) by separate ordinance.

Funding source:

Funding Source (Fund Name and Number, if applicable)	2007	2008	2009	2010	2011	2012	Total
TOTAL

Notes: Costs for this acquisition shall be appropriated from the 2000 Parks Levy Fund (33850) by separate ordinance.

Bond Financing Required: Not applicable.

Type	Amount	Assumed Interest Rate	Term	Timing	Expected Annual Debt Service/Payment
TOTAL

Uses and Sources for Operation and Maintenance Costs for the Project:

O&M	2007	2008	2009	2010	2011	2012	Total
Uses
Start Up
On-going	$0	$14,000	$14,300	$14,600	$14,900	$15,200	$73,000
Sources (itemize)
2000 Parks Levy Fund (33850)	$0	$14,000	$0	$0	$0	$0	$14,000
Funding TBD	$0	$0	$14,300	$14,600	$14,900	$15,200	$59,000
Total	$0	$14,000	$14,300	$14,600	$14,900	$15,200	$73,000

Notes:  The City currently expects to acquire the property in January 2008.  DPR plans to honor the existing United States Postal Service lease (expiring in 2010) with a renewal option (expiring in 2013) until the site is developed into a park.  At present, DPR anticipates the developed park to come online in 2014. 

Maintenance tasks prior to development would include maintaining the building’s water, heat, and air conditioning systems as stated in the United States Postal Service lease.

DPR’s estimates for the cost of maintaining the developed park are based on the following assumption:  a passive, urban park with plants and trees, and hard surfaces with benches, tables, and possible art or building structures.  General maintenance tasks associated with a developed park could include the following: garbage collection, litter pickup, irrigation, pressure washing, blowing, weeding, tree trimming, and graffiti removal, maintenance of hardscapes, benches, structures, electrical components and plumbing.       

The annual operation and maintenance (O&M) costs for a developed park are $39,300 given current assumptions about site development.  Precise O&M costs for the site once it is developed are not known at this point.  Accurate O&M estimates can only be made once DPR has gone through planning and public involvement processes to determine the magnitude of development.  Once the site is developed, additional O&M may be needed to maintain added design features.

Note that a 2% inflation factor has been used for each successive year.  Operations and maintenance costs associated with the 2000 Parks Levy projects are to be funded from Levy proceeds through 2008.  An alternative funding strategy has not been determined for the following years.

Periodic Major Maintenance costs for the project: Not applicable.

Major Maintenance Item	Frequency	Cost	Likely Funding Source
TOTAL	NA

Funding sources for replacement of project: 

As real property, this acquisition will not be subject to replacement.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:  Not applicable.

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2007 Positions	2007 FTE	2008 Positions**	2008 FTE**
	TOTAL

*   List each position separately

Notes:  None.

· Do positions sunset in the future?  Not applicable.

· What is the financial cost of not implementing the legislation:  Achievement of the goal of acquiring property using the Opportunity Fund Acquisitions category of the 2000 Parks Levy Ordinance (120024) would be delayed.  This delay and further staff cost to meet this goal with another effort would consume additional and unanticipated resources from the 2000 Parks Levy Fund.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives:  DPR could try to find another opportunity like this in the same area, but to do so would require spending additional resources and delay the goal for park acquisition and development in this underserved area as mentioned in the 2000 Parks Levy.  City Council approval is required for authorization to acquire and accept a deed for real property or to acquire by condemnation.

· Is the legislation subject to public hearing requirements: No.

· Other Issues: No.

Please list attachments to the fiscal note below:

Attachment 1:  International District Acquisition - Hing Hay Park Expansion (map)