Form revised February 4, 2010

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

DOF Analyst/Phone:

Office of Housing

Laura Hewitt Walker 4-0429

Amanda Allen 4-8894

 

Legislation Title:

AN ORDINANCE relating to transferable development rights (“TDR”); authorizing The City of Seattle to purchase TDR from a lot at 2209 1st Avenue in Seattle; and authorizing related agreements and acceptance of a deed.

 

·         Summary of the Legislation:

This legislation authorizes the City to purchase 3,900 square feet of Housing TDR certified for the Scargo Hotel lot located at 2209 1st Avenue in Belltown. Sales proceeds (negotiated by OH: $15.00 per s.f. of TDR x 3,900 s.f. = $58,500) will be used by the owner of the Scargo Hotel, Plymouth Housing Group, toward the estimated $486,620, of the $4,076,729 million total budget that the agency is fundraising for the substantial rehabilitation project. Renovation and re-design of the Scargo Hotel will preserve 47 units of housing that will remain affordable for another 50 years for people with incomes less than 30% of the area median income.

 

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

The Office of Housing has existing and continuing appropriation authority in Subfund 16430 to expend TDR funds as approved by this ordinance. The Council appropriated $40,227,072, in the 2010 Adopted Budget for the Low Income Housing Fund, of which $4 million was for contingent Bonus/TDR authority in Subfund 16430.

 

·         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.)

 

·         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.)

There is no financial cost to the City of not implementing the legislation. Plymouth Housing Group plans to fund a portion of the Scargo Hotel renovation with TDR sale proceeds. If City Council does not authorize the City to purchase TDR certified for this building, then Plymouth will need to (1) try to sell the TDR to a private commercial developer (if timing does not work they might need a bridge loan from the City or bank); or (2) increase their Building Hope Capital Campaign contribution.

 

·         Does this legislation affect any departments besides the originating department?  If so, please list the affected department(s), the nature of the impact (financial, operational, etc)., and indicate which staff members in the other department(s) are aware of this Bill. 

No.

 

·         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.)

See above.

 

·         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): N/A

 

·         List attachments to the fiscal note below: (Please include headers with version numbers on all attachments, as well footers with the document’s name (e.g., DOF Property Tax Fisc Att A)

N/A