FISCAL NOTE FOR NON-CAPITAL PROJECTS

Departments:	Contact Persons/Phones:	DOF Analyst/Phone:
Fleets and Facilities Department of Neighborhoods	David Hemmelgarn 4-0701 Rich Macdonald 6-0088	Candice Chin 3-7014 Sara Levin 4-8691

Legislation Title:

AN ORDINANCE relating to the disposition of surplus city property located along the easterly side of Martin Luther King Jr. Way and north of 502 Martin Luther King Jr. Way; authorizing the transfer of jurisdiction of said property from the Fleets and Facilities Department to the Department of Neighborhoods for the establishment of a community garden; and further authorizing sale of portions of said surplus property to abutting property owners and execution of Quitclaim Deeds in connection therewith; and designating the disposition of the sales proceeds.

· Summary of the Legislation: This proposed legislation transfers jurisdiction of a parcel of excess city property to the Department of Neighborhoods (DON) for the establishment of a community garden and authorizes the Fleets and Facilities Department (FFD) to sell portions of the surplus property to adjoining property owners. The property presently serves no public purpose. Because the garden plan does not require the land immediately adjacent to the abutting properties, and in order to generate goodwill for the garden, the Department of Neighborhoods agrees to sell a 10-foot wide buffer to interested abutting owners. Proceeds will be used to reimburse Fleets and Facilities for survey and transaction costs, and the remainder will be deposited in the Unrestricted Subaccount of the Cumulative Reserve Subfund in accordance with SMC 5.80.030.

· Background:

From 1939 to 1957, various ordinances authorized acquisition of this property and other parcels to lay-off, widen, and realign Martin Luther King, Jr. Way. The subject property, identified as PMA No. 4324 in the city’s Real Property Asset Management System, was excess to street needs and was designated for General Municipal Purposes. This property has remained practically unused for public needs since its acquisition. Adjoining property owners have used it for yard space, storage, and activities over the years. The new garden will serve as a component of Seattle’s Race and Social Justice Initiative in the Central Area by increasing community involvement in P-Patch programs. The sale of the 10-foot wide buffer will generate revenue (see ‘Anticipated Revenue/Reimbursement’ below).

The expected treatment of the P-Patch’s development and operating expense is discussed below, under Other Issues.

· Please check one of the following:

____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

__X__ This legislation has financial implications. (Please complete all relevant sections that follow.)

Appropriations:

None.

Anticipated Revenue/Reimbursement: Resulting From This Legislation:

Fund Name and Number	Department	Revenue Source	2005 Revenue	2006 Revenue
Cumulative Reserve Subfund Unrestricted Subaccount (00164)	FFD	Private Purchasers	$15,000	$7,000
TOTAL			$15,000	$7,000

Notes:

The above revenues are estimated amounts based on sale of 1,760 square feet of surplus land at $12.50/SF to five of the adjoining property owners. The revenue is estimated to span two years because while FFD projects that adjoining property sales will close in 2005, not all the payments may be received in that year.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:

Not applicable.

Spending/Cash Flow:

Not applicable.

· What is the financial cost of not implementing the legislation?

The costs of not implementing this legislation are twofold. The first is the ongoing FFD maintenance and upkeep costs for a property that currently serves no public purpose. The second is the opportunity cost of forfeiting potential revenue generated from the sale of buffer property to the adjacent property owners.

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

There are no alternatives that could achieve the dual objectives of establishing a community garden and generating income from land sales. The entire parcel could be allocated to the community garden project. However, cooperation with the abutting owners is seen as a benefit to the garden project to build goodwill and involvement in the project.

· Is the legislation subject to public hearing requirements:

No.

· Other Issues:

P-Patch Development. The Department of Neighborhoods is responsible for development of the site into a P-Patch. A Vista volunteer will work with DON to assist community members in forming a group to write a Neighborhood Matching Fund Small and Simple grant to pay for development of the site. Other funding sources could include private grants and donations.

Operating Costs. The P-Patch’s ongoing operations and maintenance expense will be funded as with other P-Patches, resulting in no net cost to the City. DON staff provide administrative support (managing applications and collecting fees) and provide support to the community volunteers who manage the garden. This site will have approximately 30 plots; application fees for these plots are anticipated to cover projected annual expenses of approximately $700 per year for water, fertilizer, and other miscellaneous items.

Please list attachments to the fiscal note below:

Attachment 1 - Preliminary Report (Reuse and Disposition Analysis) for property

Attachment 2 - Maps