CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to the transfer of City real property for housing development; amending Ordinance 124917 to transfer jurisdiction of the former Dumar Substation, 1605 SW Holden Street, to the Office of Housing for the purpose of developing permanently affordable homeownership; authorizing the Director of the Office of Housing or the Director’s designee (“Director”) to issue a request for proposals and to select a developer and thereafter to execute and deliver a contract for transfer of land, deed, and related documents; and ratifying and confirming certain prior acts.
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WHEREAS, in Ordinance 124917, The City of Seattle (“City”) declared the former Dumar Substation located at 1605 SW Holden Street (legally described below, the “Property”), as surplus; and
WHEREAS, local community members, including the Highland Park Action Committee (HPAC) have been advocating for the development of the Property for almost a decade, and support affordable housing being built on this site as well as having an activated ground-floor commercial space; and
WHEREAS, access to publicly owned land for use as affordable housing at key locations furthers the City’s fair housing goals and offers cost savings that increase project viability; and
WHEREAS, RCW 39.33.015 authorizes a transfer of property for affordable housing on mutually agreeable terms and conditions; and
WHEREAS, the Office of Housing and the City Light Department have agreed to a transfer of jurisdiction of the Property to the Office of Housing for permanently affordable homeownership and other purposes as well as financial consideration of $424,000; and
WHEREAS, the Office of Housing has experience conducting a competitive process for surplus City property for permanently affordable homeownership and thereafter ensuring the successful development of such housing; and
WHEREAS, the Office of Housing is prepared to complete the competitive process in the next six months and thereafter to diligently work with the selected developer to ensure project completion; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. The Property is located at 1605 SW Holden Street, Seattle, WA 98106, and is legally described as follows:
Lots 1 and 2, Block 9, Dumar Division No 2, according to the plat thereof recorded in Volume 23 of Plats, Page 9, records of King County, Washington;
Except that portion thereof described in Ordinance 104519 as follows:
Beginning at the Southeast corner of said Lot 2; thence North 00°17'11" East along the East line of said Lots 80.01 feet to the Northeast corner of said Lot 1; thence North 89°49'58" West along the North line of said Lot 1 a distance of 28.02 feet to a point of curve; thence Southeasterly along a curve to the right, having a radius of 14 feet, an arc distance of 21.46 feet to a point of tangency; thence South 02°00'21" East 66.58 feet to the South line of said Lot 2; thence South 89°49'56" East along said South line 11.34 feet to the beginning; together with all covenants conditions and restrictions of record.
(KC Tax Parcel No. 211320-0005; SCL PM No. 240325-4-301)
Section 2. Section 8 of Ordinance 124917 is amended as follows:
Section 8. Two years from the effective date of this ordinance, the CEO or the CEO’s designee is authorized to offer the Former Dakota ((and Dumar Substation properties)) property, as described in Section 1, for sale for fair market value by negotiated sale or through a brokered sale to be managed by the City’s Department of Finance and Administrative Services, and to accept the best offer for the property.
Section 3. Jurisdiction over the Property is hereby transferred from the City Light Department to the Office of Housing upon the effective date of this ordinance and payment of $424,000 by the Office of Housing to the City Light Department for the purpose of developing permanently affordable homeownership for low-income households at or below 80 percent of the area median income.
Section 4. The Director of the Office of Housing or the Director’s designee (“Director”) is authorized to conduct a competitive process for development of the Property for permanently affordable homeownership and other purposes, which may include commercial space. Thereafter, the Director is authorized to negotiate a property transfer agreement (“Agreement”) and any ancillary documents to accomplish the transfer of ownership of the Property to the selected developer (“Developer”), or with a designee or assignee of the Developer approved by the Director, on the terms and subject to the conditions authorized in this ordinance. The Director is also authorized to make amendments to the legal description in Section 1 of this ordinance as may be necessary to correct scrivener’s errors or to conform the legal description to the precise boundaries of the Property.
Section 5. The Agreement shall reflect the provisions included in the Term Sheet attached to this ordinance as Attachment A, and shall require a certain minimum of housing units to be developed, as determined by the Director to be feasible, for sale and affordable to households with incomes at the time of sale of 80 percent or less of the area median income, with such revisions and additions as the Director may determine are reasonably necessary to carry out the intent of this ordinance.
Section 6. The housing units, together with any additional improvements to be developed on the Property with the approval of the Director and all necessary regulatory approvals, are referred to in this ordinance as the “Project.”
Section 7. The Director is authorized to execute and deliver such additional documents, which may include amendments to the Agreement and related covenants, and to take such other actions as may be necessary or appropriate to implement the intent of this ordinance and development of the Project, and to administer and enforce the Agreement, covenants, and any other such documents that the Director deems appropriate to implement the intent of this ordinance and development of the Project. The authority given to the Director in this ordinance may be delegated to and exercised by the Director’s designee.
Section 8. Upon transfer of title to the Property, the Director shall require the transferee to accept the Property “as-is, where-is, with all faults” and to release, indemnify, and hold the City harmless from any future claims regarding the condition of the Property, including but not limited to any and all claims related to environmental conditions.
Section 9. Any act consistent with the authority of this ordinance taken after its passage and prior to its effective date is ratified and confirmed.
Section 10. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.
Passed by the City Council the ________ day of _________________________, 2023, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2023.
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President ____________ of the City Council
Approved / returned unsigned / vetoed this _____ day of _________________, 2023.
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Bruce A. Harrell, Mayor
Filed by me this ________ day of _________________________, 2023.
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Scheereen Dedman, City Clerk
(Seal)
Attachments:
Attachment A - Term Sheet: Transfer of Property from The City of Seattle (“City”) to Selected Developer or Its Designee or Assignee (“Transferee”)