FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

DOF Analyst/Phone:

Fleets & Facilities

Hillary Hamilton / x4-0421

Katie Ewing / x3-9580

 

Legislation Title:

 

An ordinance relating to certain City-owned property located at the intersection of Ninth Avenue and Lenora Street in the City of Seattle; authorizing the Director of the Fleets and Facilities Department to execute an agreement with the State of Washington Secretary of State to create a nonresidential condominium on the property and to convey certain units therein to the State of Washington in connection with the operation of the Washington Talking Book and Braille Library, and authorizing execution of related agreements.

 

·         Summary of the Legislation:

 

This legislation authorizes the Director of the Fleets and Facilities Department to execute a Condominium Creation and Conveyance Agreement and to record a condominium declaration, survey map and plans, and associated documents allowing the establishment and operation of four nonresidential condominium units at the City-owned Ninth and Lenora Building, formerly known as the Washington Talking Book and Braille Library Building.  After the declaration, survey map and plans are filed, the Director of the Fleets and Facilities Department is authorized to convey two of the four condominium units to the State of Washington.  This legislation also authorizes the execution of temporary easements to provide ingress and egress to the Basement and Floor 3 Units for the condominium association and authorized vendors to service and maintain mechanical and electrical systems.  Finally, the legislation provides that Title 20 of the Seattle Municipal Code (SMC), relating to Public Works, Improvements and Purchasing, shall not apply to the provision of certain products or services for the operation, maintenance or repair of common areas in the Condominium, although the City’s activities with respect to the City-owned Basement and Floor 3 Units shall comply with all provisions of the SMC.

 

·         Background:  

 

Ninth and Lenora Building

The Washington Talking Book and Braille Library (WTBBL) is located in a structure now known as the Ninth and Lenora Building at 2021 9th Avenue in Seattle.  Other buildings on this block include the adjacent Seattle Police Department (SPD) West Precinct/911 Communications Center, which uses secured parking in the basement and rooftop levels of the Ninth and Lenora Building.  A privately owned building is on the northwest quarter of the block.  An easement provides mutual access to the vacated alley that runs north and south between the library and the privately owned buildings used by the construction company, terminating at a secured entrance for SPD patrol vehicle parking underneath the West Precinct.  The current uses of each floor in the Ninth and Lenora Building are outlined below:

 

 

LEVEL

CURRENT USE

Basement

Police Parking Facilities

Floor 1

WTTBL

Floor 2

WTBBL and Mobile Library

Floor 3

Police Parking Facilities (rooftop)

 

History of Ownership and Operation

State law gives the Washington State Library system, which is under the purview of the Office of the Secretary of State (OSOS), the legal responsibility for providing a library to individuals who are “blind and/or physically handicapped” under RCW 27.04.045(14).  Between 1975 and 2008, the State fulfilled this obligation by contracting with the Seattle Public Library (SPL) to operate the WTBBL, which has been located in the Ninth and Lenora Building since 1993.  As part of the City acquisition of the West Precinct site in 1995, the City and the State agreed to joint funding for the purchase and renovation of the then privately-owned Ninth and Lenora Building.  The City took title to both the West Precinct and the WTBBL properties, and in consideration of the State’s financial contribution, the City committed to provide rent-free space to the State for operation of the WTBBL.

 

As an outcome of a 2005 Transition Plan for the WTBBL, the Washington State Library determined it would resume direct responsibility for the operation and administration of the WTBBL.  OSOS explored a range of options including relocation of WTBBL to another location and/or acquiring the entire building through negotiation and/or condemnation.  In 2007, negotiations between the State and the City resulted in development of a plan to convert the building to a nonresidential condominium with ownership divided between the City and the State.  A nonbinding Memorandum of Understanding (Attachment 2), executed in January 2008, outlined the due diligence process to confirm the feasibility of condominium conversion, identified issues for mutual consideration, and established a basis for future agreements necessary to the condominium conversion.  Effective July 1, 2008, OSOS/Washington State Library assumed administration and operation of the WTBBL. 

 

Condominium Conversion Overview

As described under RCW 64.34.020 a Condominium means:

 

Real property, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions.  Real property is not a condominium unless the undivided interests in the common elements are vested in the unit owners, and unless a declaration and a survey map and plans have been recorded. 

 

This applies to both residential and nonresidential buildings/units.

 

Currently, the City of Seattle is the sole owner of the Ninth and Lenora Building.  Through the planned transaction, four separate nonresidential condominium units will be created.  On creation of the condominium, the State will obtain ownership and control of Floors 1 and 2, currently occupied by the WTBBL and SPL’s Mobile Branch.  The City will retain ownership and control of the Basement and Floor 3 (rooftop), which will continue to serve as secured parking for employees of the West Police Precinct / 911 Communications Center. 

 

In recognition of funding provided by the State for the purchase and development of the WTBBL facility, this transfer occurs with no exchange of funds and at no cost to the City.  Further, since costs for operation, maintenance, repair and replacement of Condominium Common Elements will be shared between the City and the State, the transaction reduces the City’s overall expenses with respect to the Building.  Finally, either party will be able to sell its unit(s), subject to the other party’s rights under a related Right of First Offer Agreement.

 

·         Please check one of the following:

 

_X_     This legislation does not have any financial implications.

 

 

Please list attachments to the fiscal note below:

 

Attachment 1: Map of Site

Attachment 2: January 2008 Memorandum of Understanding, Page 1

Attachment 2: January 2008 Memorandum of Understanding, Page 2

Attachment 2: January 2008 Memorandum of Understanding, Page 3

Attachment 2: January 2008 Memorandum of Understanding, Page 4

Attachment 2: January 2008 Memorandum of Understanding, Page 5

Attachment 2: January 2008 Memorandum of Understanding, Page 6