Form revised: December 14, 2010

 

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

CBO Analyst/Phone:

Seattle Department of Transportation

Angela Steel/684-5967

Stephen Barham/733-9084

 

Legislation Title:

AN ORDINANCE granting LHCS Hotel Holdings (2002), L.L.C. permission to maintain and operate a pedestrian tunnel under and across Seneca Street, between 4th and 5th Avenues, for a ten-year term, renewable for two successive ten-year terms; specifying the conditions under which this permit is granted; providing for the acceptance of the permit and conditions; and ratifying and confirming certain prior acts.

                                                              

 

Summary of the Legislation:

 

This legislation will allow LHCS Hotel Holdings (2002), L.L.C. to continue maintaining and operating the existing pedestrian tunnel located under and across Seneca Street, between 4th and 5th Avenues.  An area map is attached for reference.

 

This pedestrian tunnel permit is for a term of ten years commencing from the expiration of the last term permit on October 31, 2010.  The legislation specifies the conditions under which authorization is granted and provides for acceptance of the permit and conditions.

 

LHCS Hotel Holdings (2002), L.L.C. is to pay the City of Seattle an annual fee of $6,336 commencing from the last paid annual fee invoice, November 1, 2010, and annually thereafter.  Adjustments to the annual fee may be made every year and if so made shall be calculated in accordance with a term permit fee schedule adopted by the City Council by Ordinance 123485. An Annual Fee Appraisal Summary is attached for reference.

 

 
 
 


Background:  

 

By Ordinance 109601, the City granted permission to Urban/Four Seasons Hotel Venture to construct, maintain, and operate a pedestrian tunnel under Seneca Street, between 4th and 5th Avenues, for a 30-year term.

 

 

The conditions of Ordinance 109601 were amended by Ordinances 120507 and 121855 and Resolution 28332. The permission authorized by Ordinance 109601 was renewed by Resolutions 28332 and 30380 and expired on October 31, 2010. 

 

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:  N/A

 

Anticipated Revenue/Reimbursement: Resulting from this Legislation:

This table should reflect revenues/reimbursements that are a direct result of this legislation.  In the event that the issues/projects associated with this ordinance/resolution have revenues or reimbursements that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below the table.

 

Fund Name and Number

Department

Revenue Source

2011

Revenue

2012

Revenue

Transportation Operating Fund 10310

Seattle Department of Transportation

Annual Fee –

 

$6,336 (2010 fee) + $6,336 (2011 fee)

TBD

TOTAL

 

 

$12,672

TBD

 

Revenue/Reimbursement Notes:  N/A

 

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

 

Do positions sunset in the future?  No.

(If yes, identify sunset date)

 

Spending/Cash Flow:  N/A

 

What is the financial cost of not implementing the legislation?  

 

If the legislation is not enacted by the City Council, the City of Seattle will not receive the annual fee of $6,336 for at least ten years. The City of Seattle has the option to adjust the fee amount on an annual basis.  The pedestrian tunnel, as originally permitted under Ordinance 109601, will no longer be permitted.

 

Does this legislation affect any departments besides the originating department? 

 

None.

 

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

 

None.

 

 

 

Is the legislation subject to public hearing requirements? 

 

No.

 

Other Issues: (Include long-term implications of the legislation.)

N/A

 

List attachments to the fiscal note below:

 

Attachment A – Fairmont Olympic Hotel Tunnel Area Map

 

Attachment B - Annual Fee Assessment Summary

 

 

STREET USE ANNUAL FEE ASSESSMENT

Summary:

Land Value:  $600/SF

First Year Permit Fee: $6,336

 
 
 


Date:             12/17/10

 

 

 

 

I.      Property Description:

Existing subsurface pedestrian tunnel between the Fairmont Olympic Hotel and parking garage.  Located under and across Seneca Street, between 4th and 5th Avenues.  Connecting Tax parcels are 0002400003 (Fairmont Olympic Hotel) and 0942000170 (parking garage).  Permit is for a 528 square foot area. 

 

Applicant:

LHCS Hotel Holdings (2002), L.L.C.

 

Abutting Parcels, Property Size, Assessed Value:

 

1.     Parcel 0002400003; 147,500 square feet

 

Tax year 2010 Appraised Land Value $88,500,000

Assessed at $600/SF

 

2.     Parcel 0942000170; 28,800 square feet

 

Tax year 2010 Appraised Land Value $17,280,000

Assessed at $600/SF

 

 

Average 2010 tax assessed land value: $600/SF

 

 

 

II.    Conclusion:

 

The value of the subsurface pedestrian tunnel is estimated at $600 per square foot. The first year permit fee should be calculated as follows:  ($600/SF) X (528 SF) X (25%) X (8%) = $6,336, where 25% is the degree of alienation multiplier and 8% is the rate of return.

 

Fee methodology authorized under Ordinance 123485.