Form revised June 11, 2010

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Parks and Recreation	Isabel Hamilton/ 684-4218	Jennifer Devore/ 615-1328

Legislation Title:

AN ORDINANCE relating to the Department of Parks and Recreation, authorizing the Superintendent to enter into an agreement with the Seattle Chinese Garden Society for an easement and public benefits at Knowing the Spring Courtyard and additional phases of the Seattle Chinese Garden.

Summary of the Legislation: The proposed legislation authorizes the Superintendent of the Department of Parks and Recreation to purchase an easement and public benefits from the Seattle Chinese Garden Society (Society) at the Knowing the Spring Courtyard (Spring Courtyard), Phase One of the future authentic Sichuan-style Seattle Chinese Garden (Garden.)  The complete Garden, with all four seasonal components, is expected to open in January 2016.  City Council Ordinance 121727 (2005) adopted an agreement for a schedule of public benefits for Seattle residents to begin at the time the full Garden opened.

The City and Society desire to enter into a new five year Easement and Public Benefits Agreement in order to take advantage of this opening and receive public benefits and access to the Spring Courtyard prior to the opening of a completed garden.  As such this ordinance provides an additional $317,500 to the Society in exchange for receiving free admission for residents of Seattle to the Spring Courtyard as well as free admission to the other Garden elements as they are completed within the term.  However, these funds will not be expended until the money is appropriated by Seattle City Council in 2010 for this purpose.

Background:The City of Seattle, its Sister City of Chongqing, China, and the Society have worked closely for over 20 years to develop a major Chinese garden in Seattle that reflects the beauty and composition of an authentic Sichuan Chinese garden.  The location of the Garden was resolved when the Seattle City Council adopted Resolution 27832 in 1988 which designated land on the campus of South Seattle Community College (SSCC) as the preferred site for the Garden, and directed the Department of Parks and Recreation to complete a feasibility study.  In 1989 the City Council adopted Ordinance 114521, authorizing funding to help with the preliminary design of the Garden.

From 1994 to 1998, the Society, the Seattle Community College District IV (District), and SSCC negotiated an Option Agreement and Lease for use of the site by the Society for the development and operation of the Seattle Chinese Garden.  In 2005 the City Council adopted Ordinance 121727 authorizing an agreement for Parks to transfer $600,000 in City funds to the Society to support Phase I of the Chinese Garden Project.  This agreement required the Society to provide public benefits during the term of the 25-year agreement, commencing when the full Garden is complete and open to the public, now estimated to be in 2016.  However, since the Seattle Chinese Garden is still years away from opening, this new agreement for an easement and public benefits will create a smaller but still beautiful and tranquil ancient Chinese garden experience available at no cost to Seattle residents for five years.

· 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: N/A

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

Notes:  There is no appropriation requested as a result of this legislation.  These funds will not be expended until the money is appropriated by Seattle City Council in 2010 for this purpose.

Anticipated Revenue/Reimbursement: Resulting From This Legislation: N/A

Fund Name and Number	Department	Revenue Source	2010 Revenue	2011 Revenue
TOTAL	N/A	N/A	N/A	N/A

Notes:  No revenues are anticipated as a result of this legislation.

Total Regular Positions Created, Modified, Or Abrogated Through This Legislation, Including FTE Impact:  N/A

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

Notes: There are no position impacts as a result of this legislation.

· Do positions sunset in the future?  N/A

Spending/Cash Flow:

Fund Name & #	Department	Budget Control Level*	2010 Expenditures	2011 Anticipated Expenditures
General Fund	Finance General	Support to Community Development BCL	$317,750
TOTAL			$317,750

Notes:

· What is the financial cost of not implementing the legislation?  There is no financial cost if this legislation is not implemented.

· Does this legislation affect any departments besides the originating department?  No.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives?  There are no viable alternatives that would achieve the same objective.

· Is the legislation subject to public hearing requirements:  No.

· Other Issues:  This legislation would benefit the City by guaranteeing free admission to the Knowing the Spring Courtyard expected to open on or before December 31, 2010, and subsequent phases of the Garden as they are completed and open to the public.  Previous legislation for public access and use was predicated on the scheduled completion of all phases of the Garden in 2014, but due to the current economy, the completion of all phases may now be January 1, 2016.

· List attachments to the fiscal note below:

Attachment A:  Contract Summary Form

Seattle Department of Parks and Recreation

CONTRACT SUMMARY

Date:  July 28, 2010

Name of Contracting Party/ Lessee/ Concessionaire/Other:  Seattle Chinese Garden Society

Contract Type:  Easement and Public Benefits

Non-Profit  X  or  For Profit______

New  X  or  Renewal (or extension of existing Lease)  ______

Term  of Lease:  5 years

Purpose of Lease:  To purchase an easement and public benefits from the Seattle Chinese Garden Society for Knowing the Spring Courtyard (Spring Courtyard), Phase One of the Seattle Chinese Garden (Garden).

Public Benefit:  Five years of free admission for residents of Seattle to the Spring Courtyard as well as free admission to the other Garden elements as they are completed within the term.

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

In 1989 the City Council adopted a resolution designating a site on the campus of South Seattle Community College as the preferred site for the Garden.  In 2005 the City Council adopted ordinance 121727 authorizing a Memorandum of Understanding that provided $600,000 to the Seattle Chinese Garden Society (Society) in exchange for the receipt of a list of public benefits valuing over $2 million over a 25 year period commencing when the entire Garden is open.  The entire garden, when finished, will be one of the largest Chinese gardens outside of China, showcasing not only plants, but also stone, architecture, and water elements.  The Garden will provide a place for community celebrations and personal tranquility through a beautiful and ancient Chinese experience.  The completed authentic Chinese garden is expected to be finished and open to the public in 2016.  This new, mutually beneficial agreement guarantees free admission for Seattle residents for five years as the phases of the Garden are completed and opened. 

The Chinese Garden design is organized around the four seasons.  The first season of the authentic Sichuan garden, Knowing the Spring Courtyard, will be completed and open to the public by December 31, 2010.  This five year Easement and Public Benefits Agreement takes advantage of a phased-in opening and receipt of public benefits and access to the Spring Courtyard prior to the opening of a completed garden.  As such this ordinance provides $317,500 to the Society in exchange for free admission for residents of Seattle to the Spring Courtyard as well as free admission to the other Garden elements as they are completed.  However, these funds will not be expended until the money is appropriated by Seattle City Council in 2010 for this purpose.