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 4257 – 9^th Avenue Northeast; 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. The attached proposed Council Bill authorizes the Department of Parks and Recreation (DPR) to acquire a 5,000 square-foot property, currently improved with a single-family residence rented out to students; or by condemnation should the property owner fail to meet the terms of the agreement. The legislation authorizes the acceptance of the deed to the subject property for open space, park, and recreation purposes. 

The proposed acquisition will fill an identified open space gap in the University District Urban Center 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 2006 Open Space Gap Report Update, and 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.

The property is currently being leased to a group of college students, a use which poses liability for the City if it were to continue after acquisition. The owner has agreed not to enter into a new lease for the property for the 2012-2013 school year, and to allow the current lease to lapse as scheduled on August 31, 2012, if the City can close the acquisition no later than September 7, 2012.  Because the owner has agreed not to enter into a new lease for 2012-2013 (if not for the City’s request, the owner would already have signed a new lease), the City has tentatively agreed to compensate for the lost income by paying $3,200 a month in rent until the owner is able to rent the property, or for one year, whichever comes first, if the City elects to terminate the real estate purchase and sale agreement after July 30, 2012.  After the acquisition closes, the City will begin the demolition permit process to remove the building from the site, with demolition to occur in 2013.

Project Name:	Project I.D.:	Project Location:	Start Date:	End Date:
Neighborhood Park Acquisitions – 2008 Parks Levy	K730010	4257 – 9^th Avenue Northeast	July 2011	September 2013

____    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 2012 Appropriation	New 2012 Appropriation (if any)	2013 Anticipated Appropriation
2008 Parks Levy Fund (33860)	Parks and Recreation	K720010	$0	$967,617	$0
TOTAL			$0	$967,617	$0

Appropriations Notes:  The City has been tentatively awarded $500,000 in 2012 King County Conservation Futures to offset acquisition costs. These funds require a 50% match and are paid on a reimbursement basis. If the Conservation Futures grant is received, the 2008 Parks Levy Fund will be reimbursed by $500,000.

Spending Plan and Future Appropriations for Capital Projects:

Spending Plan and Budget	2011	2012	2013	2014	2015	2016	Total
Spending Plan	27,383	842,617	125,000	0	0	0	995,000
Current Year Appropriation
Future Appropriations		967,617	0	0	0	0	967,617

Spending Plan and Budget Notes: The current budget for this project is $995,000 ($27,383 expended prior to 2012). The purchase price is estimated to be $795,000, with an additional budget of $200,000 for administrative time, title insurance and closing costs, environmental testing, survey, demolition of the existing building after tenants vacate, etc. The projected 2013 expenses are for building demolition.

Funding Source:

Funding Source (Fund Name and Number, if applicable)	2011	2012	2013	2014	2015	2016	Total
2008 Parks Levy Fund (33860)	27,383	967,617	0	0	0	0	995,000
TOTAL	27,283	967,617	0	0	0	0	995,000

Funding Source Notes:

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	$400	$3,286	$3,772	$3,847	$3,924	$4,003	19,232
Sources (itemize)
Park & Recreation Fund (10200)	$400	$3,286	$3,772	$3,847	$3,924	$4,003	19,232

Operation and Maintenance Notes:  The new facility O&M estimates reflect the costs to care for the parcel after the house has been demolished. The maintenance work will include litter and trash pick-up, installation and repair of regulatory signs, graffiti removal, hydroseeding turf and irrigation. There is also a legal requirement to test water lines. The O&M numbers listed above assume a 2% inflation rate in each successive year. 2012 costs will be covered with existing budget. No new appropriation is being requested for maintenance costs as part of this legislation but will be included in annual operating budget submittals.

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?

The 2008 Parks and Green Spaces Levy provides funding for acquisition of new properties to fill gaps in urban villages. Funding has not been identified to develop and maintain the future expanded park; therefore, DPR is “land-banking” the site, by maintaining the existing site, post-demolition, with minimal operations funding.

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 acquiring property and expanding open space in the University District Urban Center Village. This delay and further staff costs to meet this goal with another property would consume additional resources from the 2008 Parks Levy Fund. Additionally, the target site would likely be redeveloped with higher density housing at some point in the future, thereby eliminating its possibility for development as an expanded neighborhood park.

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 scope of this project is to expand the size of the existing Christie Park. The Department could try to find another acquisition opportunity 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 called for in the 2008 Parks Levy. As stated, the target site would likely be redeveloped with higher density housing at some point in the future, thereby eliminating its possibility for development as an expanded neighborhood park. 

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 before 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: Map of University District Urban Center Village – Proposed Christie Park Addition – 4257 – 9 Ave NE