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Record No: Res 31764    Version: Council Bill No:
Type: Resolution (Res) Status: Adopted
Current Controlling Legislative Body City Clerk
On agenda: 8/14/2017
Ordinance No:
Title: A RESOLUTION related to the redevelopment of KeyArena into a first-class, state-of-the-art, multi-purpose entertainment and sport center (the "Arena") at Seattle Center; supporting The City of Seattle negotiating with Oak View Group, LLC (OVG) regarding the possible redevelopment and operation of the Arena at Seattle Center; and requesting the Mayor to negotiate a memorandum of understanding with OVG for the City Council's consideration and action.
Sponsors: Debora Juarez, Bruce Harrell
Attachments: 1. Att A - Proposed KeyArena Redevelopment Letter (added; 8/14/17)
Supporting documents: 1. Proposed Substitute (added; 8/14/17), 2. Summary and Fiscal Note, 3. Signed Resn_31764, 4. Affidavit of Publication

CITY OF SEATTLE

RESOLUTION __________________

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A RESOLUTION related to the redevelopment of KeyArena into a first-class, state-of-the-art, multi-purpose entertainment and sport center (the “Arena”) at Seattle Center; supporting The City of Seattle negotiating with Oak View Group, LLC (OVG) regarding the possible redevelopment and operation of the Arena at Seattle Center; and requesting the Mayor to negotiate a memorandum of understanding with OVG for the City Council’s consideration and action.

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WHEREAS, on January 11, 2017, the City’s Office of Economic Development released a Request for Proposals (RFP) for the possible redevelopment of KeyArena; and

WHEREAS, the City’s RFP included the following seven objectives related to the project: (1) develop a world-class sports and entertainment arena, (2) integrate with Uptown’s Urban Design Framework, (3) include minimal City financial participation in capital development, (4) include minimal City financial participation in ongoing operations, (5) address transportation impacts, (6) treat neighbors and impacted workers equitably, and (7) contribute to Seattle Center’s vibrancy; and

WHEREAS, the City has created a thorough approach for evaluating proposals submitted in response to the RFP as outlined herein: (1) Community Advisory Panel comprised of community leaders to review proposals and offer advice and observations on strengths and areas of concern; (2) City Staff Review Teams to provide detailed analysis of the proposals as they relate to the RFP and the City’s objectives; (3) Executive Review Team to evaluate the City Staff Review Team recommendations, as well as feedback from the Community Advisory Panel; and (4) Mayor’s review of the recommendations of the City Staff Review Team; and

WHEREAS, after careful consideration, the Mayor has selected the proposal submitted by Oak View Group, LLC as the preferred proposal for the possible redevelopment of KeyArena; and

WHEREAS, Council will retain an independent financial consultant to ensure that the MOU is consistent with the City’s stated objectives for this project, including that the redevelopment plan provides for continuous, sustainable operation of the arena with minimal City financial participation; that the City’s financial risks are minimized and appropriately mitigated; and that the project contributes to the future value and usefulness of Seattle Center; and

WHEREAS, all nine Councilmembers signed a June 26, 2017 letter memorializing Council's priorities and expectations for negotiating an agreement and a timeline for Council's review (Attachment A); and

WHEREAS, the Council will carefully review how the proposed memorandum of understanding addresses Seattle Center integration; promotes the culture and vibrancy that is so valued at Seattle Center; provides for protections of the City’s financial position; establishes a plan for high quality arena operations and maintenance; sets a framework for a strong transportation mitigation plan; and recognizes the City’s Equitable Opportunity goals regarding labor relations and women and minority business enterprises; NOW, THEREFORE,

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

Section 1. In order for the Council to potentially carry out review by the end of the year, the City expects Oak View Group, LLC (OVG) to work with the City expeditiously and in good faith to negotiate a memorandum of understanding (MOU) that will set forth basic terms for a development agreement, a long-term lease, and other agreements relating to redeveloping and operating KeyArena. Those agreements, once negotiated, will be subject to the City Council’s review and action.

Section 2. The City Council will carefully review the MOU to ensure that it is consistent with the project objectives, and review the work of the Council’s independent consultant.

Section 3. The City Council will also evaluate whether any agreement(s) between the City and OVG addresses Council priorities, including but not limited to the seven objectives listed in the Request for Proposals (RFP):

a)                     Provide a world-class civic arena (the “Arena”) to attract and present music, entertainment, and sports events, potentially including NBA and NHL events, to Seattle and the region.

b)                     Provide for Project design and Arena operations in a manner that integrates with and enhances connections to Uptown and adjoining neighborhoods and aligns with the Urban Design Framework (UDF).

c)                     Provide for design, permitting, development, demolition (if applicable), and construction of the Arena (the “Project”) with minimal City financial participation.

d)                     Provide for the continuous, successful, sustainable operation of the Arena as a world-class civic venue with minimal City financial participation.

e)                     Provide for mitigation of transportation impacts due to Project construction and Arena operations.

f)                     Provide Project construction and Arena operations in a manner that is equitable for workers and consistent with the City’s Race and Social Justice Initiative.

g)                     Provide for Project design and Arena operational integration with Seattle Center, contributing positively to the vibrancy of Seattle Center.

Section 4. During negotiations of the MOU, the Executive will report regularly to the Co-Chairs of the Select Committee on Civic Arenas and the City Councilmember representing District 7 on the progress of the negotiations. The MOU will be subject to review and approval by the City Council with a goal of taking final action on the MOU before the end of 2017. To achieve this goal, the City Council requests that the Mayor transmit a Council Bill and the proposed MOU by September 12, 2017.

Adopted by the City Council the ________ day of _________________________, 2017, and signed by me in open session in authentication of its adoption this ________ day of _________________________, 2017.

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President ____________ of the City Council

The Mayor concurred the ________ day of _________________________, 2017.

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Edward B. Murray, Mayor

Filed by me this ________ day of _________________________, 2017.

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Monica Martinez Simmons, City Clerk

(Seal)