AN ORDINANCE relating to the financing of the Lake Union Park Project; authorizing the loan of funds from the City's Consolidated (Residual) Cash Pool, or its participating funds, to the South Lake Union Trust Fund; and providing for the repayment thereof.

WHEREAS, the Mayor proposed and the City Council approved a 2009 Budget and 2009-2014 Capital Improvement Program that includes design and construction activities for the Lake Union Park Project (LU Park); and

WHEREAS, construction of LU Park has been undertaken in phases and construction of Phase I of LU Park was completed in March 2008 and Phase II is currently underway; and

WHEREAS, Ordinance 121963 authorized the execution of an Agreement between the Seattle Department of Parks and Recreation ("DPR") and the Seattle Parks Foundation ("Foundation") committing the Foundation to launch a fundraising campaign to raise Ten Million Dollars ($10,000,000) to be donated to the City for design, development, and construction of LU Park; and

WHEREAS, the Foundation has completed its fundraising campaign and payments are scheduled to be made to the City through 2013; and

WHEREAS, Ordinance 121902 authorized the execution of an Agreement between DPR and City Investors, Inc. and City Investors provided Five Million Dollars ($5,000,000) to the City for the LU Park Project; and

WHEREAS, City Investors has committed to providing an additional Five Million Dollars ($5,000,000) for the LU Park Development project conditioned on the City having a funding plan in place and being within one year of commencing construction of improvements to Valley Street, as outlined in Ordinance 121902; and

WHEREAS, Ordinance 122757 authorized acceptance of the $10 million donation from the Foundation and the $5 million donation from City Investors to be used for the construction of Phase II of LU Park; and

WHEREAS, Ordinance 121963 (section 3.4.1) commits the City to moving forward with construction of Phase II of the project regardless of whether the conditions have been satisfied to secure City Investors' conditional release of the Five Million Dollars ($5,000,000); and

WHEREAS, funds necessary to complete the LU Park Project have been identified but may not be received at the time project expenditures are incurred, creating a temporary funding gap, and a loan from the City's Consolidated (Residual) Cash Pool, or its participating funds, will be utilized as interim financing; and

WHEREAS, interest on the Five Million Dollar ($5,000,000) portion of the loan will be paid by the City's General Subfund and the Foundation will pay interest on the portion of the loan used in lieu of outstanding pledges; and

WHEREAS, there is sufficient cash in the City's Consolidated (Residual) Cash Pool , or its participating funds, to support a loan of up to Five Million Three Hundred Fifty Thousand Dollars ($5,350,000) of principal and up to Five Hundred Thousand Dollars ($500,000) of accumulated interest to the South Lake Union Trust Fund, terminating no later than December 31, 2013; and

WHEREAS, it is anticipated that this cash pool loan will be repaid once funds are received from City Investors and the Seattle Parks Foundation; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. A loan of up to Five Million Three Hundred Fifty Thousand Dollars ($5,350,000) of principal and up to Five Hundred Thousand Dollars ($500,000) of accumulated interest outstanding at any one time is hereby authorized to be made from the City's Consolidated (Residual) Cash Pool, or its participating funds, to the South Lake Union Trust Fund from which may be paid capital costs related to the Lake Union Park Project. Said loan is to be repaid no later than December 31, 2013, with interest on the loan at the rate of return of the City's Consolidated (Residual) Cash Pool.

Section 2. The Director of Finance may effectuate the loan authorized in Section 1 by transferring cash from one or more of the funds participating in the City's Consolidated (Residual) Cash Pool to the South Lake Union Trust Fund, or by carrying the South Lake Union Trust Fund in a negative cash position in an amount not to exceed Five Million Eight Hundred Fifty Thousand Dollars ($5,850,000), until no later than December 31, 2013.

Section 3. 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 ________________________, 2009, and signed by me in open session in authentication of its passage this

_____ day of ___________________, 2009.

_________________________________

President __________of the City Council

Approved by me this ____ day of _____________________, 2009.

_________________________________

Gregory J. Nickels, Mayor

Filed by me this ____ day of __________________________, 2009.

____________________________________

City Clerk

(Seal)

Jennifer Devore/jad/ns

Lake Union Cash loan

August 11, 2009

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