Form revised: December 6, 2011

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Planning & Development	Dave LaClergue/733-9668	Calvin Chow/684-4652

Legislation Title:

AN ORDINANCE related to land use and zoning, amending various chapters of Title 23 of the Seattle Municipal Code (SMC) to incorporate new zoning provisions for Yesler Terrace; adding a new SMC Chapter 23.75 to establish use provisions and development standards for the new Master Planned Community – Yesler Terrace (MPC-YT) zone, including an affordable housing incentive program as authorized by RCW 36.70A.540; amending SMC Section 25.05.800 to establish limits for categorical exemptions from environmental review in the MPC-YT zone; amending the Official Land Use Map, SMC Chapter 23.32, to rezone properties in the Yesler Terrace neighborhood from LR3 and DMR/C 65/65-85 to MPC-YT; approving and adopting Yesler Terrace Master Planned Community Design Guidelines; revising design review and platting procedures for the MPC-YT zone; and revising procedures for project review under a planned action ordinance; all to implement the Comprehensive Plan and to allow redevelopment of Yesler Terrace to achieve a mix of residential, commercial, and other uses; appropriate urban density; and more affordable housing, environmental sustainability, and publicly accessible open space than would be likely to result from development under existing zoning.

Summary of the Legislation: The proposed bill is part of a package of legislation that includes a rezone and Land Use Code amendments, a planned action ordinance, and a cooperative agreement, all intended to support redevelopment of Yesler Terrace.  The proposed Yesler Terrace Rezone and Land Use Code Amendments would establish new development standards and review procedures, resulting in increased review and monitoring time for City staff, but no direct budget impacts are anticipated.

Background:  In 2011, the Seattle Housing Authority (SHA) Board of Commissioners adopted a phased redevelopment plan for Yesler Terrace. The plan includes a mix of residential and nonresidential uses, a substantial increase to residential density, and a major reconfiguration of the streets.   The SHA plan cannot move forward without a variety of regulatory changes from the City, including a rezone and a street vacation.

Also in 2011, City Council approved the creation of a new “Master Planned Community” designation in the Comprehensive Plan, and applied that designation to Yesler Terrace on the Future Land Use Map.  Those actions were intended to support Yesler Terrace redevelopment efforts, and to start the process of developing new zoning.

Since that time, departmental staff have been engaged with SHA to develop legislation consistent with Comprehensive Plan, the SHA redevelopment plan, and other stakeholder priorities.  As part of the proposal, the Yesler Terrace Rezone and Land Use Code Amendments would apply a new zoning designation to Yesler Terrace and establish new review procedures.  For a full description of the inter-related legislative proposal, please see the Director’s Report to the Ordinance introduced as Council Bill ___________________.

____ This legislation does not have any financial implications.

_X_     This legislation has financial implications.

Appropriations:

Fund Name and Number	Department	Budget Control Level*	2012 Appropriation	2013 Anticipated Appropriation
TOTAL

Appropriations Notes:  No anticipated impacts.

Anticipated Revenue/Reimbursement Resulting from this Legislation:

Fund Name and Number	Department	Revenue Source	2012 Revenue	2013 Revenue
TOTAL

Revenue/Reimbursement Notes: No anticipated impacts.

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

Position Title and Department	Position # for Existing Positions	Fund Name & #	PT/FT	2012 Positions	2012 FTE	2013 Positions*	2013 FTE*
TOTAL

Position Notes: No anticipated impacts.

Spending/Cash Flow:

Fund Name & #	Department	Budget Control Level*	2012 Expenditures	2013 Anticipated Expenditures
TOTAL

Spending/Cash Flow Notes: No anticipated impacts.

Other Implications:

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

While the legislation does not pose direct impacts to annual budgets, it is expected to require additional review and monitoring time from staff in several departments (see section “c” below).  At this time, it is expected that additional staff time would be paid for through existing fee structures, and possibly future budget requests.

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

There are no direct financial costs of not implementing the legislation, but there is a significant opportunity cost.  The legislation is intended to encourage partnerships between SHA and the private sector to deliver housing and infrastructure.  Private capital is anticipated to cover roughly half of the cost of affordable housing and infrastructure upgrades.  Without an increase in development potential for the site, SHA would be unable to attract private investment in redevelopment.

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

We anticipate impacts to staff time in OH, DPD, and SDOT, but expect that these impacts can be absorbed through existing fee structures and future budget requests.

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

Rezoning the site to a combination of existing zoning designations (such as multifamily residential and commercial zones) could achieve many of the same objectives without requiring as many new code sections, but the urban design quality and total amount of public amenities would be reduced.

e) Is a public hearing required for this legislation? 

Yes.  DPD presented draft versions of the proposal at a variety of public meetings, and Council will hold a public hearing when legislation is introduced.

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

Yes.  Notification about draft legislation was published in the DJC in February 2012.

g) Does this legislation affect a piece of property?

See Attachment A for the affected area.

h) Other Issues:

List attachments to the fiscal note below:

Attachment A: Project Area

Attachment A: Project Area

MPC-YT zone and Yesler Terrace Redevelopment Area

The MPC-YT zone depicts the area where the new zoning requirements would apply.