Form revised: December 14, 2010

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Finance and Administrative Services (FAS)	Jan Oscherwitz 684-8510	Jennifer Devore 615-1328

Legislation Title:

AN ORDINANCE authorizing the assignment of the Freeway Park Parking Garage lease between The City of Seattle and the Washington State Convention and Trade Center to the Washington State Convention Center Public Facilities District.

Summary of the Legislation:

This legislation would approve the assignment of the lease to the City-owned Freeway Park Parking Garage from the Washington State Convention and Trade Center (WSCTC) to the Washington State Convention Center Public Facilities District (District).  The assignment is necessary because the District, through 2010 legislation passed by the State and King County, became the legal owner and operator of the Washington State Convention and Trade Center and assumed its rights, liabilities and obligations. The City’s agreement with the WSCTC prohibits assignment without City Council consent.

Background:

The City completed construction of Freeway Park Garage in 1974 and operated it as a municipal parking garage for over 20 years.  In 1996, pursuant to Ordinance 118225, and as part of an agreement to expand the Convention Center, the City leased the Freeway Park Parking Garage to the WSCTC for a term of 30 years with an option to renew for an additional 30 years for an annual rent of one dollar. As part of this lease, the WSCTC received all operating revenues from the garage and assumed responsibility for payment of the City’s outstanding debt related to the garage. The outstanding debt was retired in 2002.

In 2010, pursuant to Substitute House Bill 6889 and King County Ordinance 16883, the District was formed to own and operate the WSCTC. The newly formed district had to meet two requirements, 1) existing state debt issued for

Convention Center purposes had to be refinanced and defeased with the debt of

the new public facilities district and 2) any transfer of property must occur by June 30, 2011.  The state debt was refinanced and defeased in November 2010. Nearly all of the property was transferred in December 2010. The assignment of the City’s lease of the Freeway Park Parking Garage is one of the District’s few remaining transition issues.

__X__ This legislation does not have any financial implications.

The District will assume all the rights and obligations of the WSCTC.  From the City’s financial perspective, there is no change in the relationship.