Form revised: December 6, 2011

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Parks and Recreation	Donald Harris/684-8018	Amy Williams/233-2651

Legislation Title: AN ORDINANCE relating to the Department of Parks and Recreation; authorizing the acquisition of real property commonly known as 1227 South Jackson Street; authorizing acceptance and recording of the deed for open space, park, and recreation purposes; authorizing acquisition by condemnation; increasing appropriations to the Department of Parks and Recreation in the 2012 Adopted Budget; and ratifying and confirming certain prior acts; all by a three-fourths vote of the City Council.

Summary and background of the Legislation: On November 4, 2008, Seattle voters approved a six-year property tax levy, the 2008 Parks and Green Spaces Levy (Levy), for the purpose of improving and expanding the City’s parks and green spaces. The Levy included an acquisition category calling for the City to acquire neighborhood park properties and green space properties in areas with park and open space gaps. This legislation authorizes the Department of Parks and Recreation (DPR) to acquire an 11,734 square-foot property by negotiation or condemnation in the Chinatown-International District Urban Center Village, an area that currently has identified open space needs. The vacant property has a graveled parking lot and a billboard sign. The parking lot is leased to a local business for client parking.

This site was selected through a cooperative effort with the community. Working with the Seattle Chinatown International District Public Development Authority, the Department was able to engage community leaders and work with the University of Washington’s Department of Landscape Architecture on a schematic design charrette exercise that ultimately led to the prioritization of the South Jackson Street property for the neighborhood park site.

The property is located at 1227 South Jackson Street in the Little Saigon section of the Chinatown-International District Urban Center Village. This acquisition will fill an identified open space gap in this Urban Village, and will help satisfy the goal to provide parks within walking distance for residents in and around urban villages. This is a key planning goal included in both Seattle’s Parks and Recreation 2006 Development Plan and Seattle’s 2006 Open Space Gap Report Update, and in Seattle’s Parks and Recreation 2011 Development Plan. The property will not be developed as a park until additional funding is available for that purpose. In the interim, the billboard lease will be cancelled if possible; and the parking lot use might remain, depending on the current permit and lease provisions. By keeping the parking lot in use, DPR would generate a small income stream to offset the costs of maintaining the property. If it is not possible to maintain the parking lot, the Department would make minor improvements with existing budget to make the area safe for interim public use. There are no plans to fully develop the park.

Project Name:	Project I.D.:	Project Location:	Start Date:	End Date:
Neighborhood Park Acquisitions- 2008 Parks Levy	K730010	1227 South Jackson Street	March 2011	June 2012

____    This legislation creates, funds, or anticipates a new CIP Project.

____ This legislation does not have any financial implications.

 X__   This legislation has financial implications.

Appropriations:

Fund Name and Number	Department	Budget Control Level*	Existing 2011 Appropriation	New 2012 Appropriation (if any)	2013 Anticipated Appropriation
2008 Parks Levy Fund (33860)	Parks and Recreation	K720010	$35,000	$1,435,000	$0
TOTAL			$35,000	$1,435,000	$0

Appropriations Notes: The City will apply 2011 King County Conservation Futures Tax funding to the acquisition costs. The total reimbursement will be $750,000, or half of the $1,400,000 purchase price and half of qualifying acquisition expenses, and will be used to offset the acquisition costs shown in the above table. Both the Seattle City Council and the King County Council have approved the grant. The interlocal agreement amendment is awaiting final signatures.

Spending Plan and Future Appropriations for Capital Projects:

Spending Plan and Budget	2012	2013	2014	2015	2016	2017	Total
Spending Plan	$1,442,134
Current Year Appropriation
Future Appropriations

Spending Plan and Budget Notes: The current budget for this project is $1,470,000. Per the acquisition agreement, the purchase price is not to exceed $1,400,000, with an additional estimated $70,000 for administrative time, community outreach, title insurance, and closing costs, environmental review, survey, etc. The Department spent $27,866 in 2011, bringing the 2012 spending plan to $1,442,134.

Funding Source:

Funding Source (Fund Name and Number, if applicable)	2012	2013	2014	2015	2016	2017	Total
2008 Parks Levy Fund (33860)	$1,435,000
TOTAL	$1,435,000

Funding Source Notes:

The project budget is $1,470,000, of which $35,000 was appropriated in 2011.

Bond Financing Required: N/A

Type	Amount	Assumed Interest Rate	Term	Timing	Expected Annual Debt Service/Payment
TOTAL	N/A	N/A	N/A	N/A	N/A

Bond Notes:

Uses and Sources for Operation and Maintenance Costs for the Project:

O&M	2012	2013	2014	2015	2016	2017	Total
Uses
Start Up
On-going	$928	$3,141	$3,204	$3,268	$3,333	$3,400	$17,274
Sources (itemize)
Rent income	$12,000	$24,000	$ 24,000	$ 24,000	$ 24,000	$ 24,000	$ 132,000
Net cost (income)	$(11,072)	$(20,859)	$(20,796)	$(20,732)	$ 20,667)	$(20,600)	$(114,726)

Operation and Maintenance Notes:

The current parking lease, which generates$1,200 per month in revenues, terminates in October 2015. The Department is not certain if the lease will continue after the property is acquired, or if it will be terminated due to permitting issues. In the event the parking lease is terminated, the new facility O&M estimates listed above reflect the cost to care for the cleared, graveled parcel. The maintenance work for the property will include litter and trash pickup, potential for encampment removal due to the proximity to a known homeless encampment area, removal and control of invasive weeds, installation and repair of regulatory signs (no dumping), graffiti removal, and water service testing.

If the lease is not terminated, the lessee would be responsible for maintaining the site. The Department would use the lease revenues to offset O&M costs in other parks.

Periodic Major Maintenance Costs for the Project: N/A

Major Maintenance Item	Frequency	Cost	Likely Funding Source
TOTAL	N/A	N/A	N/A

Funding sources for replacement of project: As real property, this acquisition will not be subject to replacement.

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	2012 Positions	2012 FTE	2013 Positions**	2013 FTE **
TOTAL	N/A	N/A	N/A	N/A	N/A	N/A	N/A

Position Notes:

Do positions sunset in the future? Not applicable.

Other Implications:

a) Does the legislation have indirect financial implications, or long-term implications?

Yes, the long-term implication of purchasing this property is that funding will eventually be needed to develop and maintain it as a neighborhood park.

b) What is the financial cost of not implementing the legislation?

If this property is not acquired, there will be a delay in achieving one of the goals of the Neighborhood Parks Acquisitions category of the 2008 Parks Levy Ordinance, which is to acquire property and expand open space in the Chinatown-International District Urban Center Village. A delay would incur more staff costs and consume additional Levy resources. Also, the property would likely be sold to another party if the Department did not move forward with this acquisition.

c) Does this legislation affect any departments besides the originating department?

No.

d) What are the possible alternatives to the legislation that could achieve the same or similar objectives?

The Department could try to find another opportunity like this in the same area, but to do so would require spending additional resources and would delay the goal for park acquisition in this underserved area as mentioned in the 2008 Parks Levy.

e) Is a public hearing required for this legislation? No.

f) Is publication of notice with The Daily Journal of Commerce and/or The Seattle Times required for this legislation?

Yes. Publication of notice is a required step for authorization of condemnation. Notices will be published in both The Daily Journal of Commerce and The Seattle Times prior to final action by the City Council, as required by State Law.

g) Does this legislation affect a piece of property? Yes.

h) Other Issues: None.

List attachments to the fiscal note below:

Attachment A: Chinatown-International District Urban Center Village – Proposed Acquisition (map)