AN ORDINANCE relating to economic development; authorizing acceptance of a grant from King County under the Brownfields Showcase Community Program; appropriating the grant funds for purposes of environmental studies; authorizing the Director of the Office of Economic Development to enter into such agreements as shall be necessary and appropriate; and ratifying and confirming prior acts.

WHEREAS, the King County Office of Regional Policy and Planning ("ORPP") and The City of Seattle Office of Economic Development ("OED") have negotiated an agreement under which ORPP will provide federal grant money to fund additional environmental assessments by SouthEast Effective Development ("SEED"), a Washington nonprofit corporation, of parcels it seeks to acquire as part of the Rainier Court Brownfields project in the City of Seattle's federally approved Neighborhood Revitalization Strategy area; and

WHEREAS, the Rainier Court Brownfields project has had longstanding support from the community and the City of Seattle; and

WHEREAS, a prompt transfer of the funds from the County to the City as authorized by this ordinance will help ensure SEED maintains its schedule for preparing and submitting the proposed environmental cleanup plan of the Rainier Court site to the State Department of Ecology to meet deadlines for financing the development of Rainier Court; and

WHEREAS, there is no matching requirement required by ORPP; and

WHEREAS, acceptance of the Brownfields Showcase grant will not require additional staff for grant administration and program monitoring;

NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. The Director of the Office of Economic Development ("OED") is hereby authorized, for and on behalf of The City of Seattle, to enter into, administer, perform, and modify an Agreement ) with the King County Office of Regional Policy and Planning ("ORPP"), in such form and with such provisions as ORPP shall require and as the Director of OED shall find necessary or advisable, to accept a grant in the amount of Twenty-Five Thousand Dollars ($25,000.00), or such lesser amount as shall be available, for the purposes described in the preliminary draft agreement attached to this ordinance as Attachment A. The funds to be received from the ORPP shall be deposited into the General Subfund. The OED Director is designated as the authorized representative of the City to supply the ORPP with such documents and information as may be required to submit the completed Agreement and accept the award of grant funds. The OED Director is further authorized to make, for and on behalf of The City of Seattle, all assurances, promises, representations and consent to suit specified in the Agreement or otherwise required by ORPP and to comply with all applicable regulations of King County and the United States government relating to implementation of the activities described in Attachment A.

Section 2. Subject to and consistent with applicable provisions of the Constitution and laws of the State of Washington and the Charter and laws of the City of Seattle, the OED Director is authorized, for and on behalf of the City, to implement the activities identified in Attachment A, and to enter into, perform, administer, and modify such agreements as shall be necessary or appropriate to implement such activities.

Section 3. Contingent upon the execution of the Agreement authorized in Section 1 by the City and ORPP and the receipt by the City of money thereunder, and to provide for implementation of the activities described in Attachment A, the expenditure allowance in the 2001 Adopted Budget of the Office of Economic Development is increased by the appropriation, hereby made and authorized, from the General Subfund, of the sum of Twenty-Five Thousand Dollars ($25,000.00), or such lesser amount as shall be received by the City under such Agreement, as described in the following table:

Fund Line of Business/Program Amount General Subfund OED/Neighborhood and $25,000.00 Community Development

Any unexpended balance of this appropriation shall carry forward from year to year unless expressly abandoned by ordinance.

Section 4. Any act pursuant to the authority and prior to the effective date of this ordinance is hereby ratified and confirmed.

Section 5. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor; but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the _____ day of ____________, 2001, and signed by me in

open session in authentication of its passage this _____ day of , 2001. ___________________________________ President __________of the City Council

Approved by me this _____ day of _________________, 2001. ___________________________________ Paul Schell, Mayor

Filed by me this _____ day of ____________________, 2001. ___________________________________ City Clerk

Attachment A: Preliminary Draft Agreement for the Rainier Court Brownfields Project December 4, 2001 (Version 3)t ATTACHMENT A DRAFT PRELIMINARY AGREEMENT FOR THE RAINIER COURT BROWNFIELDS PROJECT

Between King County Office of Regional Policy and Planning and City of Seattle Office of Economic Development

THIS AGREEMENT is made between King County, acting through its Director of the Office of Regional Policy and Planning (herein after known as "ORPP"), and The City of Seattle, acting through its Director of the Office of Economic Development (hereinafter known as "OED"), to fund environmental assessment of certain property intended to be included in the Rainier Court Brownfields project.

In consideration of the mutual covenants set forth below, the parties agree as follows:

I. Statement of Purpose:

To provide SouthEast Effective Development (SEED), a non-profit community development corporation, with $25,000 to fund environmental assessments of key parcels to be part of the Rainier Court Brownfields project. The assessments will provide key information on the environmental condition of the parcels. This information is required by Simpson Development, SEED's development partner in the project, prior to preparation of the recommended remediation plan to be presented to the Washington State Department of Ecology ("DOE") for clean up of the project site. Simpson needs an indication from DOE on the extent of clean up required before it can finalize its due diligence investigation and commit to the project. This information also is needed by SEED to secure financing for the overall project. A prompt transfer of the funds from the County to the City as agreed to in this agreement will help ensure SEED maintains its schedule for preparing and submitting the proposed remediation plan to DOE and for developing Rainier Court.

II. Background:

A. Rainier Court Project

Rainier Court, when completed, will be the largest and most significant City-supported community revitalization project developed in Southeast Seattle in the last 20 years. Development of this 8-acre site located at 3700 Rainier Avenue South in Seattle is intended to provide affordable housing and jobs, act as a catalyst for additional redevelopment, stimulate local reinvestment, and create pride and ownership in one of Rainier Valley's most diverse neighborhoods, Courtland Place. The current plans for the project include the following:

The project will be a multifamily housing project with retail on the ground level. The housing will be a mixture of market rate and affordable rental units, including live/work space and, possibly, for-sale townhouses. The project will be developed in two phases. Phase I will include approximately 455 units in three, four-story buildings with about 23,000 square feet of retail on the first floors. Construction is expected to start in 2003. Phase II would be constructed in 2004 and include 88 units, in a complex of twostory flats/townhouses.

The project has had long-standing support from the community and The City of Seattle.

B. Environmental Cleanup

Knowledge of the nature of the environmental contamination on the site and associated clean-up costs are critical elements of the Rainier Court project's overall project feasibility. The remediation costs can only be determined once a thorough assessment has been made of the nature and level of the contamination on the site. Analysis performed by EPA for this project has provided extensive information on soil contamination, but has provided limited information on groundwater conditions. The proposed additional assessments will gather more extensive information on groundwater conditions, including data from test wells strategically located in and around the site. This information will be used in the proposed remediation plan that will be prepared and submitted to DOE and is needed to enable DOE to provide the maximum possible guidance regarding SEED's proposed cleanup method for the project site. This guidance from DOE will, in turn, allow SEED to determine the site remediation expense for the project. If SEED can demonstrate that the cost to clean up the site will not be prohibitively expensive, a lender will be willing to provide the financing needed by SEED to develop Rainier Court, assuming the project meets the lender's other financing requirements. SEED hopes to submit the proposed remediation plan to DOE by the end of the year in order to meet key project milestones.

III. Sources and Amounts of Funding:

The environmental sampling and analysis is being funded through the King County/City of Seattle Brownfields Showcase Community Program (Brownfields Program). The Brownfields Program is designed to assist public, private and nonprofit entities assess, clean up and redevelop contaminated brownfield properties and is funded primarily through grants from the U.S. Environmental Protection Agency (EPA). In 2000, ORPP was awarded supplemental funding by EPA for the Brownfields Program, $150,000 of which is to be used to assess properties to be used for commercial or industrial redevelopment. Of the $150,000, $25,000 is designated for the Rainier Court project.

King County agrees to provide to OED, for the purposes stated below, a minimum of $25,000 in grant funds provided by EPA.

Additional funding may be added and managed under this agreement at a later date. The funding delineated above shall not be used for any costs of staffing or administrative overhead incurred by the parties.

IV. Use of Funds:

The funds provided to OED under this agreement shall be used to pay costs of environmental assessments of property intended to be part of the Rainier Court project, under a contract or contracts between OED and SEED. The assessments may include but not be limited to environmental sampling, surveying and cleanup planning and design, subject to approval by ORPP.

V. Specific Duties and Responsibilities of the Parties:

A. Duties and Responsibilities of King County ORPP:

ORPP shall:

1. Manage the transfer of funds from EPA to King County, including processing EPA Request for Advance or Reimbursement forms, and promptly disburse such funds to OED when received;

2. Manage reporting requirements to EPA in accordance with the grant agreement between ORPP and EPA dated September 21st, 1998, as amended August 24th, 2001 ("ORPP/EPA Grant Agreement"), including submitting quarterly reports to EPA with project updates. ORPP shall provide OED with a reporting template for OED's portion of the reports; and

3. Track project performance.

B. Duties and responsibilities of OED:

OED shall:

1. Manage the use of funds under this agreement in consultation with ORPP;

2. Draft and work with ORPP to finalize an amendment to OED's agency service agreement with SEED that will include the scope of work for the environmental assessments, the sampling plan, and the reports to be delivered;

3. Manage agency service agreement with SEED to conduct the assessments. OED will amend its existing agency service agreement with SEED by increasing the budget by $25,000 and changing the agreement's work program to reflect SEED's responsibility for managing the contractor's work on the environmental assessment. The amendment will provide that SEED will invoice the City for the work completed and will provide appropriate documentation, including contractor's invoices and environmental reports, and that OED will review invoices and documentation for compliance with the agency services agreement before paying invoices;

4. Monitor SEED's activity for compliance with EPA requirements set forth in the ORPP/EPA Grant Agreement, to the extent that they apply to the use of the funds awarded hereunder, including EPA review and approval of any sampling plans;

5. Provide quarterly reports in the specified format to ORPP with information to be incorporated into ORPP's quarterly reports to EPA. Information shall include a brief update on the progress of the work funded under this agreement, including expenditure information. OED's quarterly reports to ORPP shall be due to ORPP 15 days after the end of each calendar year quarter; and

6. Provide technical assistance, when requested, to ORPP related to evaluation of the activity funded under this agreement.

VI. Contacts and Notices:

For the terms of this agreement, OED and ORPP each shall have an employee designated as the primary contact for purposes of this agreement. OED's initial contact person and Project Manager shall be Ben Wolters, Brownfields Coordinator. The initial point of contact for ORPP shall be Lucy Auster, Economic Development Specialist. Any notice under this agreement may be mailed or delivered to the addresses set forth below, unless another address shall have been provided by either party to the other by written notice citing this agreement:

City:

__________________________ __________________________ __________________________

County: __________________________ __________________________ ___________________________

VII. Duration of Agreement:

Effective Date. This agreement shall be in effect on the date that it is executed by both parties.

Expiration Date. This agreement shall continue to be in effect through December 31, 2002, unless shortened or extended by mutual written agreement of the parties.

VIII. Agreements:

OED's agreement with SEED for the use of funds provided under this agreement shall comply, and shall require that SEED's contracts with consultants and any subcontracts of consultants comply, with the applicable ordinances, regulations and policy requirements of The City of Seattle and EPA.

IX. Federal Small and Disadvantaged Business Enterprise Utilization Requirements:

In accordance with EPA Utilization of Small, Minority, and Women's Business Enterprises provisions requirements included in the ORPP/EPA Grant Agreement, goals for purchases and contracts and any subsequent supplements, changes, or amendments to them are, for purchase of goods: 8% for minority business enterprises and 4% for women's business enterprises. For purchase of services, the goals are 10% for minority business enterprises and 4% for women's business enterprises. Nothing herein shall require or authorize any discrimination or preference contrary to applicable law.

X. Miscellaneous:

This agreement contains the entire agreement of the parties with respect to the funding described herein. No amendment hereto will be effective unless it is in writing and signed by the authorized representatives of the parties hereto. This agreement is for the benefit of the parties hereto and is not intended to create any rights in, or to be enforceable by, any third party. Neither party shall be liable or responsible for any inaccuracy of, or omission in, any study, report or assessment that may be provided under this agreement or with the funds awarded hereunder. If any provision of this agreement shall be ruled invalid or unenforceable, all other provisions shall remain in effect.

IN WITNESS WHEREOF, the parties hereby execute this agreement.

KING COUNTY THE CITY OF SEATTLE

By:_____________________________ By:_____________________________ Stephanie Warden, Director Mary Jean Ryan, Director King County Office of Regional City of Seattle Office Policy and Planning of Economic Development _____________________________ _____________________________ Date Date

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