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Record No: Res 31837    Version: Council Bill No:
Type: Resolution (Res) Status: Adopted
Current Controlling Legislative Body City Clerk
On agenda: 10/1/2018
Ordinance No:
Title: A RESOLUTION amending and adopting the Policies and Procedures that govern the Reuse and Disposal of real property owned by The City of Seattle not subject to the City Light Department jurisdiction; updating certain portions of the procedures related to property reuse and disposal for affordable housing; and adding provisions regarding the use of proceeds from surplus property disposal.
Sponsors: Sally Bagshaw
Attachments: 1. Att A - Evaluation of Reuse and Disposal of the City’s Real Property v5, 2. Att A - Evaluation of Reuse and Disposal of the City’s Real Property v4a
Supporting documents: 1. Summary and Fiscal Note, 2. Central Staff Memo, 3. Proposed Substitute Resolution, 4. Proposed Substitute Att A, 5. Signed Resolution 31837, 6. Affidavit of Publication

CITY OF SEATTLE

RESOLUTION __________________

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A RESOLUTION amending and adopting the Policies and Procedures that govern the Reuse and Disposal of real property owned by The City of Seattle not subject to the City Light Department jurisdiction; updating certain portions of the procedures related to property reuse and disposal for affordable housing; and adding provisions regarding the use of proceeds from surplus property disposal.

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WHEREAS, Resolution 29799, adopted in August 1998, established policies and procedures to govern the acquisition, reuse, or disposal of real property owned by the City not subject to the City Light Department (“City Light”) jurisdiction; and

WHEREAS, Resolution 31829, adopted in July 2018, revised the policies and procedures governing the acquisition, reuse, or disposal of City Light Department properties; and

WHEREAS, the procedures governing the acquisition, reuse, and disposal of real property owned by the City that is not under City Light’s jurisdiction (hereinafter “City Property”) were last modified in September 2017 by Resolution 31770; and

WHEREAS, the policies governing the reuse and disposition of City Property have not been updated since 1998; and

WHEREAS, there is significant need for affordable housing in the City for those households with incomes under 80 percent of Area Median Income (AMI) and, in particular, those with incomes from zero to 30 percent of AMI; and

WHEREAS, the use of City Property for development of affordable housing can help to address the need for such housing and result in retaining such properties for this important public purpose, effectively in perpetuity; and

WHEREAS, given the need for affordable housing, the City desires to prioritize the use of available City Property for this purpose and to provide the largest number of affordable units, at or below 80 percent of AMI, especially for those with incomes from zero to 30 percent of AMI, that can be developed when using surplus City Property for affordable housing and recognizes that such development will also result in the provision of living wage jobs; and

WHEREAS, the City is interested in exploring new models for development that can increase the number of affordable units at or below 80 percent of AMI, including models using alternative construction methods and materials such as modular or cross-laminated timber or where the City maintains ownership of the land but permits a community organization to develop, own, and operate affordable housing on such land; and

WHEREAS, in the event a surplus property cannot be used for the development of affordable housing, and is proposed for disposition for cash, the City intends that 80 percent of the proceeds from such dispositions should be used to support the development of affordable housing; and

WHEREAS, in 2019 the City will discuss amending the Housing Levy Administration and Finance Plan, including updated policies related to site-specific Requests for Proposals, and will seek to include language to request the Office of Housing to seek partnerships with local non-profit, low-income housing organizations that are culturally relevant and historically rooted in such neighborhoods to develop properties in neighborhoods deemed at high risk for displacement. For the purposes of these partnerships, organization staff and board composition should reflect the communities they purport to serve and meet other guidelines as defined by the funding criteria for the Equitable Development Initiative; and

WHEREAS, the City will continue to explore and/or implement a community-driven anti-displacement program that may include clear priorities around labor standards for construction of projects, including use of priority hire, apprenticeship utilization, area standard wages and bona fide benefits, and community workforce agreements; and

WHEREAS, Seattle’s open and green spaces are a tangible asset essential to public health, urban resilience, social cohesion, and environmental sustainability, and, when feasible, will be integrated into development within this context, meeting the needs for communities across the City; and

WHEREAS, the City desires to revise the policies and procedures governing the reuse and disposition of City Property to reflect these desired changes; NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE MAYOR CONCURRING, THAT:

Section 1. The Procedures for Evaluation of Reuse and Disposal of the City’s Real Property, adopted by Resolution 29799 and last amended by Resolution 31770, are hereby amended and revised to read as shown in Attachment A to this resolution.

Section 2. Section 1 of Resolution 29799 is superseded, and the following policies are adopted to govern the reuse or disposal of real property owned by the City not under the jurisdiction of the City Light Department (“City Property”):

Reuse or Disposal of City Property.

The Executive is to make its recommendations on the reuse or disposal of any property that is not needed by a Department on a case-by-case basis, following the procedures found in Attachment A to this resolution, and evaluating the options using the following guidelines:

A.                     Consistency. The Executive shall evaluate the proposed reuse or disposal for consistency with any restrictions or limitations resulting from any of the following:

1.                     The purpose for which the property was originally acquired;

2.                     The funding sources used to acquire the property;

3.                     The title or deed conveying the property, including terms and conditions of the original acquisition or any other contract or instrument by which the City is bound or to which the property is subject;

4.                     City, state, or federal ordinances, statutes, and regulations, including but not limited to the following:

                     Bond, grant, or loan programs;

                     The applicability of the Local Government Accounting Act, RCW 43.09.210, and Third Substitute House Bill 2382 as it relates to the transfer or property for development of Affordable Housing, that includes the possible transfer at less than fair market value;

                     Zoning and land use matters such as the Land Use Code, landmarks ordinance, historic preservation policies, and special review district limitations;

                     Other plans, policies, or regulations adopted or approved by the City Council, including the City of Seattle Comprehensive Plan.

B.                     Other Factors. The Executive’s recommendation should also consider:

1.                     Highest and best use of the property;

2.                     Compatibility of the proposed uses with the physical characteristics of the property and surrounding uses;

3.                     Unique attributes that make the property hard to replace (e.g., size, location);

4.                     Potential for consolidation with adjacent public property to accomplish future goals and objectives of the City;

5.                     Conditions in the real estate market from the perspective of a property seller;

6.                     Known environmental factors that may affect the value of the property.

C.                     Priorities for use of City-owned Properties. The Executive’s recommendation for the reuse or disposal of property should reflect assessment of the potential use of the property consistent with City priorities, including:

a.                     Affordable Housing

b.                     Park or Open Space

c.                     Child care and early learning facilities

d.                     Education

e.                     Sound Transit Link Light Rail station area development

f.                     Community and Economic Development

g.                     Other priorities reflected in adopted City policies or plans.

It is the intent of the City to prioritize use of available City Property for development of Affordable Housing, including mixed-use development projects. This priority will be reviewed in 2023. In determining if a property is suitable for development as Affordable Housing, the following criteria will be used:

1.                     Current use;

2.                     Zoning or rezone opportunities;

3.                     Size and site configuration;

4.                     Topography;

5.                     Presence of contamination/hazardous materials;

6.                     Infrastructure;

7.                     Existing improvements and condition of existing improvements;

8.                     Location; alignment with City priorities;

9.                     Originating fund source/restrictions on use;

10.                     Ability to create mixed-use development.

The Office of Housing will assist in evaluating the use of City Property for Affordable Housing development.

Section 3. Use of Proceeds from Disposition of Surplus City Property. Unless otherwise directed by ordinance, 80 percent of the net proceeds from the disposition of every surplus City Property not intended for the development of Affordable Housing shall be deposited into the Low-Income Housing Fund (16400) to be used for the development of Affordable Housing that can include mixed-use developments, and/or the Equitable Development Initiative Fund to be used for costs directly related to the construction of an affordable housing project by a non-profit organization.

Section 4. Transition and Applicability. If adopted by Council and unless otherwise provided by applicable ordinance or other law, the revised procedures shown in Attachment A to this resolution apply to: real property that a department has formally determined it no longer needs for its current or future use (“Excess Properties”); Excess Properties currently going through disposal procedures; or future disposals of Excess Properties. However, Council does not intend that each Excess Property must restart the process to comply with these revised procedures.

Section 5. Annual Report on Development of Affordable Housing on Surplus City Property. The Office of Housing will include in the Annual Investment Report information on City surplus properties, if any, that were disposed of in the prior year for development as affordable housing. Information to be included in this report includes but is not limited to: The number of surplus properties disposed of for development of affordable housing; the number of planned or developed units for each property; other facilities planned or developed along with the affordable housing, such as child care or health care facilities, commercial spaces, etc., and information that supports inclusion of such facilities to meet existing community needs; the name of the organization selected to develop each property; and the population to be served by each proposed project.

Adopted by the City Council the ________ day of _________________________, 2018, and signed by me in open session in authentication of its adoption this ________ day of _________________________, 2018.

____________________________________

President ____________ of the City Council

The Mayor concurred the ________ day of _________________________, 2018.

____________________________________

Jenny A. Durkan, Mayor

Filed by me this ________ day of _________________________, 2018.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Attachments:

Attachment A - Procedures for Evaluation of Reuse and Disposal of the City’s Real Property