Form revised December 4, 2006

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle Center	Margaret Wetter 4-7203	Amy Williams 3-2651

Legislation Title:

AN ORDINANCE relating to the Seattle Center Department authorizing execution of a revocable, non-exclusive license agreement with Teatro ZinZanni to construct certain improvements on City property for the purpose of public ingress and egress to the circus dinner theater on an adjacent property.

· Summary of the Legislation:

This legislation authorizes execution of a revocable, non-exclusive license agreement with Teatro ZinZanni (Teatro) to use, construct certain improvements on, and modify portions of City property generally situated at Mercer Street between 2nd Ave. N. and 3rd Ave. N. in Seattle, King County, Washington, for the purpose of public ingress and egress to the Teatro ZinZanni theater.

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

Description

Teatro ZinZanni is a dinner theater offering a blend of European cabaret, performing arts, and vaudeville performed in a Belgian "spiegeltent" (mirror tent).  It is produced by One Reel, a non-profit arts and events production organization based in Seattle.

History

Teatro ZinZanni began operating at the Mercer Street location in 1998.  In 2000, they relocated to San Francisco during the construction of McCaw Hall, and then returned to Seattle in 2002 to a location in the Belltown area.  That property was sold in 2007, and Teatro is in the process of moving its theater back to the Mercer Street location, which is now owned by Seattle Opera.

The Opera was deeded this property in 2000 by the Kreielsheimer Foundation (the grantor).  The Kreielsheimer Foundation also gifted to the City a strip of land adjacent to the Opera’s property and reserved an easement across the property for ingress and egress purposes.  The deed language restricts the grantor or its successors or assignees from altering the City property pursuant to any exercise of right based upon the easement unless by agreement between the City and the grantor (or grantor’s successor).  The deed also has a condition that the administrative control and management of the City property be vested in the Seattle Center Department and used for the purpose of open space improvements to enhance the Seattle Center Theater District along Mercer Street and for development consistent with the Seattle Center Master Plan, as amended from time to time. 

The current condition of the property includes partial landscaping and a walking path to the Teatro site.  To improve public access from Mercer Street to the theater, Teatro would like to design and fund landscape improvements, modify the existing path to make it ADA compliant, and install an additional path with stairs leading from Mercer Street to Teatro’s entrance.  These plans are attached to the License Agreement as Exhibit 3. 

Agreement

The City determined that the proposed access and landscaping improvements are of value to the City and will enhance open space in the Mercer Street/McCaw Hall area.  As a result, Seattle Center has agreed to the terms of a license agreement that includes two main components.  First, the City will install and complete planned landscaping improvements, and Teatro will reimburse the City for the full installation costs. Second, the City will maintain the landscaping improvements, and Teatro will reimburse the City for all associated costs.  It also includes language that restricts the expansion of the existing easement and preserves a substantial portion of the property for open space.

The agreement will run through January of 2012, or until the Teatro’s leasehold interest in the Adjacent Property is terminated, whichever comes first

· Please check one of the following:

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

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

Appropriations:  This table should reflect appropriations that are a direct result of this legislation.  In the event that the project/ programs associated with this ordinance have appropriations that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below.

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: 

All Seattle Center expenses pursuant to the license agreement will be fully reimbursed by Teatro.  Approximately $3,000 worth of improvements will be reimbursed during 2007, and approximately $8,000 worth of annual maintenance costs will be reimbursed in each year of the agreement.  Some of this reimbursement for annual maintenance will pay for maintenance work previously funded by Seattle Center.

Anticipated Revenue/Reimbursement: Resulting From This Legislation: This table should reflect revenues/reimbursements that are a direct result of this legislation.  In the event that the issues/projects associated with this ordinance/resolution have revenues or reimbursements that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below the table.

Fund Name and Number	Department	Revenue Source	2007 Revenue	2008 Revenue
TOTAL

Notes: 

Approximately $3,000 worth of improvements will be reimbursed during 2007, and approximately $8,000 in annual maintenance costs will be reimbursed during each year of the agreement.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:  This table should only reflect the actual number of positions created by this legislation  In the event that positions have been, or will be, created as a result of previous or future legislation or budget actions, please provide details in the Notes section below the table.

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

** 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:

There are no FTE changes associated with this agreement.

· Do positions sunset in the future?  (If yes, identify sunset date):

Not applicable.

Spending/Cash Flow: This table should be completed only in those cases where part or all of the funds authorized by this legislation will be spent in a different year than when they were appropriated (e.g., as in the case of certain grants and capital projects).  Details surrounding spending that will occur in future years should be provided in the Notes section below the table.

Fund Name and Number	Department	Budget Control Level*	2007 Expenditures	2008 Anticipated Expenditures
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? (Estimate the costs to the City of not implementing the legislation, including estimated costs to maintain or expand an existing facility or the cost avoidance due to replacement of an existing facility, potential conflicts with regulatory requirements, or other potential costs if the legislation is not implemented.)

The licensing agreement has two benefits for the City.  First, the new landscaping installed along the Mercer Street Theater District corridor will enhance the appearance of the area.  Second, Teatro will fully reimburse the City for the costs associated with ongoing maintenance, including those previously performed as a part of routine Seattle Center operations.  If the legislation is not implemented, both of these benefits will be forgone. 

A potential benefit of working with Teatro ZinZanni to improve access to their facility is the opportunity for additional parking revenue for Seattle Center’s Mercer Garage, located directly across the street from the theater site.  This revenue opportunity would also be lost if the legislation did not go forward.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives? (Include any potential alternatives to the proposed legislation, such as reducing fee-supported activities, identifying outside funding sources for fee-supported activities, etc.)

None.

· Is the legislation subject to public hearing requirements:  (If yes, what public hearings have been held to date, and/or what plans are in place to hold a public hearing(s) in the future.)

No.

· Other Issues (including long-term implications of the legislation):

Please list attachments to the fiscal note below:

None.