Form revised May 26, 2009

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Office of Housing	Rick Hooper/4-0338	Amanda Allen/4-8894

Legislation Title:

AN ORDINANCE relating to City property at Sand Point, authorizing an amendment to the Amended and Restated Lease between Sand Point Community Connections LLC and the City, removing one parcel from that lease; authorizing the Director of Housing to grant a new lease of the removed parcel;  authorizing a substitute lease or leases of all or part of that parcel in case of early lease termination; authorizing the Director of Housing to sign for the City as ground lessor a condominium declaration and other documents permitting the lessee to create a leasehold condominium for that parcel; and authorizing related agreements and actions to support the development of housing and other facilities for the homeless on that parcel.

· Summary of the Legislation:  The proposed Ordinance authorizes the Director of the Office of Housing (OH) to revise the Amended and Restated Lease (“Lease”) between Sand Point Community Connections LLC and the City of Seattle to delete a specified parcel, and to grant a new lease for the portion of land deleted from the existing Lease. 

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

The City of Seattle assumed ownership of land at Sand Point Naval Air Station from the federal government in the mid-1990s under the condition that a designated portion of the property be developed as housing for homeless people.  Sand Point’s federally-approved re-use plan called for the development of 200 homeless housing units, 94 of which have already been constructed.  The lease amendments authorized by this Bill will make changes that are necessary to satisfy lender and tax credit investor requirements, and maintain compliance mandates and lender protections for this phase of the project, distinct from other projects at Sand Point. 

In August of 2007 the City assigned and amended the ground lease so that Solid Ground Washington could assume responsibility for operations of the existing homeless housing planned for Sand Point.  Solid Ground formed Sand Point Community Connections LLC (“SPCC”) to complete the homeless housing units, and SPCC since secured loans and tax credit investment commitments to build 52 units of housing for formerly homeless families, and a community facility that will serve all of the formerly homeless individuals residing at Sand Point.  Due to the complexities of financing capital development on land subject to a long-term lease, SPCC’s lender and tax credit investor are seeking changes to the current ground lease before they will disburse funds.  The changes authorized in this Bill will create a distinct ownership and lease for the property on which this next phase will be constructed, so that the City’s remedies for non-compliance, including termination of the land lease, would be applicable project-by-project, and a compliance issue on one property would not undermine the lender’s security in a different property.  The Bill also makes other changes sought by the funders for the next phase of development, and authorizes the Director of Housing to execute as ground lessor, a condominium declaration (if the sponsor creates such an entity), and other documents permitting the lessee to create a leasehold condominium for that parcel.  Finally, the Bill authorizes the Director of Housing to execute related agreements to support the development of housing and other facilities for the formerly homeless at Sandpoint.

· 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.)