Form revised December 9, 2004

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Parks and Recreation	Terry Dunning 684-4860	Tyler Running Deer 684-8075

Legislation Title:

AN ORDINANCE authorizing the Superintendent of Parks and Recreation to sign an Air Space Lease, Maintenance Agreement and Supplemental Agreement #2 to Agreement GM 376 with the Washington State Department of Transportation for use of land for Boren-Pike-Pine Park.

· Summary of the Legislation:

The proposed legislation authorizes the Superintendent of Parks and Recreation to enter into an Air Space Lease with the Washington State Department of Transportation (WSDOT) for the space known as Boren-Pike-Pine Park (a.k.a. Four Columns Park). It also authorizes the Superintendent to execute a Maintenance Agreement and Supplemental Agreement GM 376 which are ancillary to the Lease and modify the prior management relationship that has existed on the site since 1968. This 10-year, renewable lease will secure the property for development consistent with the objectives of the 2000 Neighborhood Parks, Green Spaces, Trails, and Zoo Levy (2000 Parks Levy). There is no cash outlay for rent as the cost for this lease is offset against the City’s continuing maintenance of the site.

· Background:

Boren-Pike-Pine Park was constructed in 1966 by WSDOT as part of the I-5 construction. The land on which the park sits is WSDOT land, but since the park’s establishment, the Seattle Department of Parks and Recreation (DPR) has maintained the park under an agreement with WSDOT.

There is an existing CIP project to redevelop this park (Boren-Pike-Pine Redevelopment #K733067) funded by the 2000 Parks Levy. The Levy budget for this project is $825,000. In addition, the Pike-Pine Urban Neighborhood Council has requested that $250,000 in mitigation monies, collected by the Seattle Department of Transportation (SDOT) in response to the convention Center expansion, be contributed to this project. This funding was transferred from SDOT and appropriated to the Boren-Pike-Pine Park project in 2004 (Ordinance #121556). A design for the park was developed and put out to bid for construction in April 2004. The bids came in higher than the budget allowed for, and DPR began to redesign the park to meet the budget constraints. After 6 months of community process, from July through December 2004, the public helped develop a new design which includes an off-leash area. In April 2005, City Council approved the addition of the Boren-Pike-Pine Off-Leash Area (Ordinance #121788) to the Seattle Municipal Code.

The community and DPR staff have been concerned that the significant capital investment in the site be secured by an agreement with more force and detail than the previous maintenance agreement. The recommended Air Space Lease (the space is technically within the right of way of the freeway) offers a more formal, 10-year air space lease with the opportunity for a 10-year renewal that should provide the necessary protection for the City’s investment. Actual re-construction of the park is scheduled to begin the end of July.

Operations and maintenance costs of the development that will occur subsequent to approval of the proposed lease were discussed in a Council briefing in November of 2003 along with other 2000 Parks Levy projects. It is anticipated that the annual operation and maintenance costs for Boren-Pike-Pine Park will be approximately $23,500 per year.

The lease contains language that prevents the City from fee revenue for special events scheduled in the park in any amount that exceeds the cost incurred in operating the leased property. Should any revenues be derived that exceed operating costs, those monies must be transferred to the State.

· Please check one of the following:

__X _ This legislation does not have any financial implications.

In 1966, under the original maintenance agreement GM 376, the City accepted O&M responsibility for WSDOT’s property under the recommended air space lease area and the associated maintenance agreement GM 1412, mentioned in this new ordinance. The areas of responsibility listed in Exhibit D of Attachment 1 to this ordinance include the O&M responsibility areas defined in agreement GM 376, therefore, there are no new O&M costs or expectations beyond what DPR already has responsibility to maintain.