Form revised February 22, 2006

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Human Services Dept.	Michael Look, 615-1717	Janet Credo, 68-8687

Legislation Title:

AN ORDINANCE relating to the City’s purchase of an interest in real property owned by Chief Seattle Club; removing a budget proviso restricting expenditure of an appropriation in the 2007 Budget; increasing an appropriation in the 2007 Adopted Budget of the Human Services Department; decreasing an appropriation in the 2007 Adopted Budget of Finance General; transferring cash between funds; and authorizing the purchase and acceptance of an easement with restrictive covenants from Chief Seattle Club to provide for social and community services uses on the property at 410 Second Avenue Extension South, Seattle, Washington for a period of ten years and the expenditure of funds therefore; all by a three-fourths vote of the City Council.

· Summary of the Legislation:

This legislation lifts a Council proviso and authorizes the City to purchase from Chief Seattle Club an easement with restrictive covenants on the agency’s new facility at 410 Second Avenue Extension South. This legislation authorizes expenditure of $300,000 appropriated in the 2007 Finance General budget, and authorizes the Director of the Human Services Department to purchase and accept the Easement in Gross for Social and Community Services Facility Use (“Easement”). The Easement will require that for a period of ten years Chief Seattle Club provides, in or from the facility, social and community services to homeless and low-income persons and external exhibition space to recognize and celebrate Native American arts and culture through art or craft displays.  The Easement also provides that certain spaces within the facility are open for community meetings.

· Background:

The purpose of this legislation is to ensure that the facility at 410 Second Avenue Extension South, which is being redeveloped by Chief Seattle Club, a nonprofit organization, is restricted to community and social service uses, and provides arts, culture, and community benefits for a period of ten years.  Chief Seattle Club has been providing day services for homeless and low-income persons in the Pioneer Square district for 36 years. The Club is currently housed next door to the facility under development, in the Lazarus Day Center in the Leroy Helms Building.

The project involves the renovation of the vacant Monterey Hotel, located between Yesler and Washington Streets.  This is a three-story building with a basement.  The first floor and basement will become Chief Seattle Club’s new American Indian and Alaska Native Day Center.  The two upper floors will be converted by a private developer into 11 live/work artist lofts.

During the 2007 budget process, the City Council adopted Green Sheet 136-2-A-2, restricting the expenditure of funds for Chief Seattle Club Services until such time the Executive transmitted to the Council a proposed contract, timeline, funding plan, copies of other agreements, and construction and operating budgets.  The attached legislation includes the information and documentation requested by the Council and lifts the proviso restricting expenditure of funds.

Chief Seattle Club has secured the support of the Pioneer Square Community Association and other Pioneer Square business leaders, several of whom are serving on the agency’s capital campaign advisory committee.  The capital campaign is more than 90% funded.  Outstanding pledges, along with the City’s purchase amount, will bring the project to 100% of the campaign’s goal.  

· Please check one of the following:

____ 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	Anticipated 2008 Appropriation
Human Services Operating Fund (16200)	Human Services Department	Community Facilities H3300	$300,000	$0
General Subfund (00100)	Finance General	Reserves 2QD00	($300,000)	$0
General Subfund (00100)	Finance General	Support to Operating Funds 2QE00	$300,000	$0

Anticipated Revenue/Reimbursement: Resulting From This Legislation:

Fund Name and Number	Department	Revenue Source	2007 Revenue	2008 Revenue
N/A
TOTAL

Notes: 

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact: 

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

*   List each position separately

** 2008 positions and FTE are total 2008 position changes resulting from this legislation, not incremental changes.  Therefore, under 2008, please be sure to include any continuing positions from 2007.

Notes:

· Do positions sunset in the future?  N/A

Spending/Cash Flow:

Fund Name and Number	Department	Budget Control Level*	2007 Expenditures	2008 Anticipated Expenditures
N/A
TOTAL

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

Notes:

· What is the financial cost of not implementing the legislation?

If this legislation is not passed, the City will not receive ten years of public benefits purchased through the easement, including a facility dedicated to social and community service uses for the benefit of homeless and low-income persons and public art display spaces recognizing Native American arts and culture. 

· What are the possible alternatives to the legislation that could achieve the same or similar objectives?

There are no other alternatives that accomplish the City’s objective to ensure social and community services are available at 410 Second Avenue South Extension.

· Is the legislation subject to public hearing requirements: 

No.

· Other Issues

None.

Please list attachments to the fiscal note below:

None.