Form revised February 4, 2010

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle Department of Transportation	Angela Steel/684-5967	Stephen Barham/733-9084

Legislation Title:

AN ORDINANCE granting Hammer Company and Clise, Inc. permission to maintain and operate a pedestrian skybridge over the alley between 5^th Avenue and 6^th Avenue, south of Lenora Street, for a seven-year term; specifying the conditions under which this permit is granted; providing for acceptance of the permit and conditions; and ratifying and confirming certain prior acts.

· Summary of the Legislation:

This legislation will allow Hammer Company and Clise, Inc. to continue maintaining and operating the existing skybridge located across the alley between 5^th Avenue and 6^th Avenue, south of Lenora Street.  An area map is attached for reference.

This skybridge permit is for a term of seven years commencing from the expiration of the last term permit on July 1, 2005.  The legislation specifies the conditions under which authorization is granted and provides for acceptance of the permit and conditions.

The Hammer Company and Clise, Inc. is to pay the City of Seattle an annual fee of $2,592.00 commencing from the last paid annual fee invoice, July 1, 2009, and annually thereafter.  Adjustments to the annual fee may be made every year and if so made shall be calculated in accordance with a term permit fee schedule adopted by the City Council by ordinance.  In the absence of such a schedule, the Director may only increase or decrease the previous year's fee annually to reflect any inflationary changes so as to charge the fee in constant-dollar terms.  This adjustment will be calculated by adjusting the previous year's fee by the percentage change between the two most recent year-end values available of the Consumer Price Index for the Seattle-Tacoma-Bremerton Area, All Urban Consumers, All Products, Not Seasonally Adjusted.  An Annual Fee Appraisal Summary is attached for reference.

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

By Ordinance 104686, the City granted permission to United Properties to construct, maintain, and operate a skybridge across the alley between 5^th Avenue and 6^th Avenue, south of Lenora Street. Resolution 26855 transferred the permission authorized by Ordinance 104686 to Hammer Company and Clise, Inc. Ordinance 104686 was renewed by Resolutions 26855 and 27823 and the permission authorized by Ordinance 104686 expired on June 30, 2005. 

· 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 had, or will have, appropriations in other legislation, please provide details in the Notes section below.

Fund Name and Number	Department	Budget Control Level*	2010 Appropriation	2011 Anticipated Appropriation
TOTAL

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

Notes:  N/A

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	2010 Revenue	2011 Revenue
Transportation Operating Fund 10310	Seattle Department of Transportation	Annual Fee –	$2,592.00 (2009 fee) + $2,607.10 (2010 fee w/ .58% CPI)	$2,607.10+ CPI
TOTAL			$5,199.10	TBD

Notes:

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

Position Title and Department	Position # for Existing Positions	Fund Name & #	PT/FT	2010 Positions	2010 FTE	2011 Positions*	2011 FTE*
TOTAL

* 2010 positions and FTE are total 2010 position changes resulting from this legislation, not incremental changes.  Therefore, under 2010, please be sure to include any continuing positions from 2009.

Notes: N/A

· Do positions sunset in the future?  No.

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 & #	Department	Budget Control Level*	2010 Expenditures	2011 Anticipated Expenditures
TOTAL

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

Notes:  N/A

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

If the legislation is not enacted by the City Council, the City of Seattle will not receive the annual fee of $2,592.00 for at least three years. As previously stated, the City of Seattle has the option to adjust the fee amount on an annual basis.  The skybridge, as originally permitted under Ordinance 104686, will no longer be permitted.

· Does this legislation affect any departments besides the originating department?  None

· What are the possible alternatives to the legislation that could achieve the same or similar objectives?  None

· Is the legislation subject to public hearing requirements:  No

· Other Issues  N/A

· List attachments to the fiscal note below:

Attachment A-Hammer Co. and Clise Skybridge Area Map

Attachment B – Annual Fee Appraisal Summary

Attachment A – Hammer Co. and Clise Skybridge Area Map

Hammer Co. and Clise Skybridge Area Map

Parking Garage

Map is for informational purposes only and is not intended to modify or supplement the legal description(s) in the Ordinance.

Attachment B - Annual Fee Appraisal Summary

Summary:

Land Value:  $450/SF

First Year Permit Fee: $2,592.00

STREET USE VALUE ESTIMATE

Date:  8/27/2009

Prepared by:  John Bresnahan Sr. Real Estate Agent

I. Property Description:

That portion of the 16’ wide public alley between 5^th and 6^th  Avenues bounded by Virginia Street to the south and Lenora Street to the north lying beneath a skybridge connecting tax parcels 065900-0930 and 065900-0905, measuring approximately 128 square feet (8’ skybridge width X 16’ alley right-of-way).

II. Applicant:

Clise Inc. and Hammer Co.  2033 6^th Ave., Seattle

III. Zoning, Size, Assessed Value:

Parcel 065900-0930 (old United Airlines bldg.)—DOC2-500—25,920 square feet---Assessed $500/SF (2010)

Parcel 065900-0905 (parking garage)—DOC2-500—12,960 square feet--Assessed $500/SF (2010)

IV. Highest and Best Use Analysis:

The highest and best use of this particular public alley right-of-way would be assemblage to the adjoining properties.

V. Sales Data Summary:

	Sale #1	Sale #2	Sale #3	Sale #4
Location	1600 9^th Ave.	1912 4^th Ave.	800 Stewart St.	5^th and Stewart
Sale Price	$2,000,000	$10,800,000	$9,839,000	$9,000,000
Area SF	7,078	14,400	13,560	12,960
Sale Date	3/2009	4/2006	9/2008	5/2006
Zoning	DOC2-500	DOC2-500	DOC2-500	DOC2-500
Price/SF	$283	$750	$726	$694
Parcel Number	066000-0860	065900-0410 (multiple)	066000-0625	065900-0455

VI.         Notes:

A large adjustment for market conditions would have to be made given the age of the comparable sales in the vicinity with similar use and zoning, as evidenced by sale #1.  Sale #1 is very inferior as to utility, location and size, so adjustments would be made upward to account for those.  I estimate that the larger parcel would sell for around $400 per square foot, and the smaller parcel for $500 per square foot, for a blended value estimated at $450 per square foot.

VI. Conclusion:

The value of the alley right-of-way under the skybridge is estimated at $450.00 per square foot, blended. The first year permit fee should be calculated as follows:  ($450/SF) X (128 SF) X (50%) X (9%) = $2,592.00, where 50% is the air rights/alienation multiplier and 9% is the rate of return.