Form revised: August 9, 2010

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

CBO Analyst/Phone:

Seattle Department of Planning and Development

C. Susan McLain, 4-0432

Joe Regis, 5-0087

 

Legislation Title:

AN ORDINANCE relating to land use and zoning, modifying locational criteria for various downtown zones and industrial zones; creating new zone classifications; modifying use provisions and development standards; enacting and amending affordable housing incentive programs; enacting and amending provisions for height and density bonuses and transfer of development capacity; amending Seattle Municipal Code Sections 23.34.108, 23.34.110, 23.34.114, 23.34.116, 23.41.004, 23.47A.005, 23.49.008, 23.49.011, 23.49.013, 23.49.014, 23.49.015, 23.49.019, 23.49.020, 23.49.022, 23.49.044, 23.49.045, 23.49.046, 23.49.056, 23.49.058, 23.49.146, 23.49.148, 23.49.156, 23.49.158, 23.49.162, 23.49.164, 23.49.166, 23.49.178, 23.49.180, 23.49.181, 23.49.198, 23.49.200, 23.49.208, 23.49.223, 23.49.226, 23.49.236, 23.49.242, 23.50.012, 23.50.016, 23.50.020, 23.50.026, 23.50.027, 23.50.028, 23.50.038, 23.50.051, 23.50.053, 23.53.006, 23.53.020, 23.58A.002, 23.58A.004, 23.58A.008, 23.58A.012, 23.58A.016, 23.58A.018, 23.66.018, 23.66.100, 23.66.150, 23.66.160, 23.66.302, 23.66.306, 23.66.308, 23.66.310, 23.66.318, 23.66.322, 23.66.324, 23.66.326, 23.66.328, 23.66.332, 23.66.334, 23.66.336, 23.66.338, 23.66.342, 23.74.010, 23.84A.002, 23.84A.006, 23.84A.024, 23.84A.025, 23.84A.032, 23.84A.036, 23.84A.038, 23.90.018, 23.90.020; enacting new Sections 22.900G.015, 23.49.023, 23.49.031, 23.49.059, 23.49.060, 23.49.143, 23.49.163, 23.49.165, 23.49.210, 23.49.212, 23.49.220, 23.49.250, 23.50.033, 23.50.039, 23.50.055, 23.58A.020, 23.58A.022, 23.58A.023, 23.58A.024, 23.66.032; repealing maps for Chapter 23.49 and enacting new maps to replace them; repealing maps for Chapter 23.66 and enacting new maps to replace them; repealing sections 23.49.244, 23.49.246, 23.49.248 and 23.66.330; amending Downtown Amenity Standards; and amending the Official Land Use Map, Chapter 23.32, at pages 115, 116, and 117 to rezone areas within the South Downtown planning area and to expand the International Special Review District. 

 

Summary of the Legislation:

The proposed Council Bill amends the Seattle Land Use Code for areas within South Downtown, including areas within the Downtown Urban Center and at the northern edge of the Greater Duwamish Manufacturing Industrial Center. 

 

Key recommendations include: 

 

1.      Rezone areas within the greater South Downtown Planning area to various Downtown, Industrial, and Commercial zones;

2.      Revise development standards in certain zones to address conditions associated with greater allowed height and density;

3.      Modify locational criteria for Downtown zones to apply within “South Downtown” as defined within the Land Use Code;

4.      Apply incentive zoning provisions to development in South Downtown, and add new amenity features to the Land Use Code;

5.      Introduce new “South Downtown Historic” Transfer of Development Rights (TDR) and Transfer of Development Potential (TDP) programs;

6.      Identify  “base” and “maximum” development capacity (FAR and/or height) in zones within the South Downtown planning area;

7.      Require new development to conform to LEED Silver if it exceeds base development rights, and Green Factor requirements if over 20,000 square feet;

8.      Apply design review to certain projects in IC zones within the South Downtown planning area;

9.      Amend sign regulations that apply to the International Special Review District and Pioneer Square Preservation District (Chapter 23.66);

10.  Extend the International Special Review District one block south;

11.  Apply pedestrian-oriented standards;

12.  Amend other sections of the Land Use Code as they relate to development conditions in South Downtown, and in order to make administrative revisions and correct references. 

 

Background:  

 

The Livable South Downtown Planning Study was initiated to study and implement land use changes in the South Downtown planning area to encourage investment and enhance neighborhood character.   The South Downtown planning area includes Pioneer Square, Chinatown/ International District, neighborhood areas east of Interstate 5 including Little Saigon, and areas at the northern periphery of the Greater Duwamish Manufacturing Industrial Center inclusive of the Stadium Transition Area. 

 

Specific objectives of the Livable South Downtown Planning Study included: 

 

·         Evaluation of development opportunities and constraints, particularly with regard to housing and jobs;

·         Identification of desired development character through extensive consultation with members of the community and neighborhood plans;

·         Evaluation of environmental impacts;

·         Recommendation and implementation of City land use actions to support emerging residential/ employment communities; and

·         Recommendation of improvements and investments that will contribute to a well-balanced community in South Downtown.

 

The Bill is a result of a four-year project that included extensive community engagement, an Environmental Impact Statement, transportation analysis, economic studies, urban design analyses, and coordination with other City departments. 

 

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.)

 

Increased staffing needs at the Department of Planning and Development (DPD)

Additional staff time may be necessary to review permit applications as a result of the South Downtown proposals when compared to review time associated with administering existing Land Use Code requirements.  In general, those impacts are assumed to be offset by permit fees. To the extent that the South Downtown changes stimulate future development, the City generally would benefit by adding to the tax base and invigorating the economy in South Downtown neighborhoods. 

 

As part of the South Downtown Final Environmental Impact Statement (FEIS) analysis, a development scenario was evaluated that represented likely development to occur between the baseline year (2008) and the year 2030.  The development scenario was based on the preferred (proposed) zoning alternative.  Thirty one theoretical projects were identified as part of the development scenario, including 23 projects that take advantage of incentive zoning provisions. 

 

In general, “base” development capacity approximates existing zone standards, and would not result in fiscal impacts above and beyond those that are anticipated by DPD today, with the exception of requiring an acceptable Green Factor score and design review in proposed IC-zones.  Project applicants that take advantage of incentive zoning provisions and propose development above the base are assumed to more likely have fiscal impacts.

 

Following is a description of other assumptions that were used to identify how the proposed amendments would affect permit administration and DPD resources.  Projected staff time was obtained through calculations by DPD’s permit review staff. 

 

LEED Silver.  LEED Silver is proposed to be required of all development projects that exceed base development rights in South Downtown.  It is estimated that 30 minutes of added staff review per project would be needed to apply this standard to 23 projects in South Downtown over the coming 20 years. 

 

Calculation of Bonus Projects.  An estimated 75 additional minutes per project is anticipated to calculate requirements relating to extra floor area for the 23 projects that the FEIS development scenario anticipated would occur over the next 20 years.

 

Green Factor.  The proposal  to apply the Green Factor to future development projects in the South Downtown planning area that exceed 20,000 square feet in gross floor area of new construction could affect up to 31 projects over the next 20 years.  Within South Downtown today, most existing zones do not require landscaping plans.    It is estimated that calculating the proposed green factor requirement would require an additional 30 minutes of staff time per project. 

 

Design Review.  In two areas of South Downtown design review is proposed for projects where it is not currently required: the IC 85-160 zone and an area east of I-5currently zoned IC 65, and proposed to be rezoned to DMC and DMR/C.  According to DPD design review staff, each project would likely require up to 74 hours of staff time to undergo design review by DPD and the Design Review Board.  DPD estimates that up to 9 additional projects would require design review within the coming 20 years. 

 

New Development Standards for Larger Projects.  The Livable South Downtown proposal would require new calculations for projects that exceed base development capacity.  FAR requirements, and larger or taller projects, subject to modulation requirements, width and depth standards and other bulk controls, would likely add a minimum of 30 minutes to calculate FAR and up to 60 additional minutes to review those projects subject to new standards such as modulation and other bulk controls. 

 

Special Review District Historic-Contributing Properties.  As part of the South Downtown legislation, new programs are proposed for South Downtown Historic Transfer of Development Rights (TDR, nonresidential floor area) and South Downtown Historic Transfer of Development Potential (TDP, residential floor area).  The following table assumes that ten properties over a 20 year period may seek historic-contributing property status in order to seek certification for the transfer of South Downtown Historic TDR or TDP.  Review is estimated to add 4 hours of DPD staff time per project. 

 

Summary of Projected Fiscal Impacts

Livable South Downtown Legislation

New Proposed Standard

Estimated Staff Time Required

Total Estimated Staff Hours

Average Estimated Staff Hours per Year

(20 years)

Green Factor applied to projects exceeding 20,000 square feet

30 minutes per each of 31 projects

16

1

Design Review applied to projects exceeding 12,000 square feet IC 85-160, DMC and a portion of DMR/C.

74 hours per each of 9 projects

666

33

LEED Silver applied to bonus projects

30 minutes per each of 23 projects

12

1

Bonus Calculations for any project that exceeds base development capacity.

75 minutes per each of 23 projects

29

1

Modulation, width and depth standards as applied to projects exceeding base development capacity.

60 minutes per each of 23 projects

23

1

Floor Area Calculations, as applied to nonresidential development above base development capacity.

30 minute per each of 14 projects

7

0

Designation of historic-contributing building for certification as a South Downtown Historic TDR/TDP sending site.

4 hours per each of projected ten projects

40

2

 

 

792

40

 

Appropriations:  Not applicable

 

Anticipated Revenue/Reimbursement: Resulting from this Legislation:

Fund Name and Number

Department

Revenue Source

2010

Revenue

2011

Revenue

Planning and  Development Fund 15700

DPD

Fees

Not Applicable

$5,000

TOTAL

 

 

 

 

 

Revenue/Reimbursement Notes:  Assuming passage of the South Downtown bill in April 2011, it is expected that approximately 20 hours of additional review time may be required in 2011, or approximately $5,000 in revenue.  This figure is derived from an estimate of 792 hours of additional staff time over a 20 year period (see table on page 5).  The Department of Planning and Development charges $250 per hour for permit review.

 

Total Regular Positions Created, Modified, or Abrogated through this Legislation, Including FTE Impact: 

 

Position Notes:  No positions will be created as a result of this legislation. 

 

Additional review associated with South Downtown Land Use Code amendments would generate about 40 new billable hours of DPD staff time annually, or .02 full time equivalent positions. 

 

Do positions sunset in the future?  Not applicable. 

 

Spending/Cash Flow: Not applicable. 

 

Spending/Cash Flow Notes:  Not applicable.

 

What is the financial cost of not implementing the legislation?  

No financial costs would result from not implementing the legislation. 

 

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?  

Alternatives to the proposed regulations that achieve a similar objective would require staff review and result in similar impacts as compared to the proposed bill. 

 

Is the legislation subject to public hearing requirements? 

Yes, the legislation is subject to public hearing requirements.  A hearing was held on a draft of the bill on June 2, 2010, and a second hearing on Version 11 of the bill was held on November 22, 2010. 

 

Other Issues:  Long term, the bill is expected to result in additional jobs and residents in South Downtown. Along with this added density, the bill will contribute to an increased in the number of public open spaces, higher environment performance in buildings, streetscapes that meet neighborhood objectives for pedestrian access and mobility, and renovation and preservation of historic resources,

 

List attachments to the fiscal note below:

None.