Form revised February 6, 2008

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks and Recreation	Terry Dunning/684-4860	Jennifer Devore/ 615-1328

Legislation Title:

AN ORDINANCE relating to the Department of Parks and Recreation; authorizing the Superintendent of Parks and Recreation to sign an Aquatic Lands Lease with the State of Washington, Department of Natural Resources, on behalf of the City of Seattle; said lease authorizing the City’s use, for moorage of historic vessels, consisting of approximately .9 acres of the submerged bedlands of Lake Union falling north of Block 74, Terry Avenue North and a portion of Waterway No. 4 as platted in Lake Union Shorelands by the Board of State Land Commissioners for the State of Washington.

Summary of the Legislation:  This proposed legislation authorizes the Superintendent of Parks and Recreation to sign a lease with the Washington State Department of Natural Resources (DNR) for mooring historic vessels at the dock at the north end of Lake Union Park at no cost.

• Background: The proposed lease area consists of approximately .9 acres of Lake Union “bedlands.”  DNR owns all of the lake except for areas within the inner harbor line.  At Lake Union, the City’s property extends approximately 60 feet north of the actual shoreline to the inner harbor line, and DNR land extends northerly from that location.  DNR is requiring the lease since many of the historic vessels that moor at the north end of the dock exceed 100 feet in length.  The historic vessels’ bows are secured to Seattle Parks’ dock, but the sterns extend into the State’s waters.

The lease is being offered to the City for no charge, as the permitted use is public display of historic ships.  Also permitted are up to 50 charter tours by the Virginia V.  The City’s free rent is predicated on the moored historic ships being normally on display and open to public viewing.  In the event any of the vessels, other than the Virginia V, undertakes to charge for charter services, provisions of the lease require the City to collect rent from that vessel and reimburse DNR for their normal applicable fees.  It is anticipated that future lease amendments will be necessary to clarify rents, should they arise, as the result of an historic vessel electing to offer charter services.

Resolution 30206, adopted on July 17, 2000, adopted an updated master plan for Lake Union Park.  The update addressed many issues throughout the South Lake Union neighborhood and within the park.  One of the commitments in the update was to construct a wharf at the north end of the armory building for the moorage of historic vessels.  The wharf has been constructed and various historic vessels (including the Virginia V, the Swiftsure, the fire boat Duwamish, and others) are now moored at this location.  The moored vessels are available for public viewing and provide a valuable interpretive asset to the park.  As mentioned above, these vessels and others, while moored to City property, extend onto State property and the State insists that the City enter into a lease to protect itself from any liabilities arising from the use and to assure that the State is compensated should the current use change.

· 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.)

Attachment A – Contract Summary Form

Attachment B – Map Titled Lake Union Park Historic Vessel DNR Lease Area

Seattle Department of Parks and Recreation

CONTRACT SUMMARY

Date:  July 31, 2008

Name of Contracting Party/ Lessee/ Concessionaire/Other:

Lessee – City of Seattle, Parks and Recreation

Lessor – State of Washington, Department of Natural Resources

Contract Type:

Non-Profit_____X_  or  For Profit______

New____X__  or  Renewal (or extension of existing Lease)  ______

Term  of Lease:  30 years

Purpose of Lease:  This legislation authorizes an Aquatic Lands Lease between Parks and Recreation and the State of Washington, Department of Natural Resources (DNR.)  The use permitted by the lease is the moorage of historic vessels at the Lake Union Park dock, and includes the ability of one of the historic ships, the Virginia V, to conduct a maximum of 50 charter tours.  DNR is requiring the City to enter into the lease because the historic vessels moored at Lake Union Park extend beyond the inner harbor one and into State-controlled waters.

Public Benefit: The ships moored at Lake Union provide historic, interpretive displays, open for public viewing.  This use is recommended in the adopted master plan for Lake Union Park.

Revenue or Offsets (as applicable):  DNR is allowing the permitted use, moorage of historic vessels, and the Virginia V charters to continue with no lease payment or rent required.  Should the permitted use change, such as an additional vessel offering charter service, the lease will be reviewed and there may be a rental fee required.

Brief description, overview, history, general terms and other pertinent info:

Moorage of historic ships at Lake Union Park is part of the adopted master plan for the Park.  In order for the use to continue, the State Department of Natural Resources is requiring the City to enter into an Aquatic Lands Lease agreement.