WATERFRONT LEGISLATIVE PACKAGE CIVIC DEVELOPMENT, PUBLIC ASSETS AND NATIVE COMMUNITIES COMMITTEE JANUARY 16, 2019 1 TODAY’S AGENDA • Background and policy context • Review legislative package 1. LID formation ordinance 2. Protest waiver agreement ordinance 3. Funding, operations and maintenance ordinance • Timeline and next steps 2 FOR waterfront Seattle's waterfront park comes into focus The basic outlines of the ambitious park, really four big parks connected by a promenade, are now emerging. There are very sensible design decisions being made, but can the city pull off such a spectacular plan? By David Brewster Print I Email I ?Yweet I lee 53 After all the battles over the Viaduct and the deep- bore tunnel, are we going to manage to create a splendid waterfront park for Seattle? The desire is there, and the setting is certainly spectacular. Butit won't be easy, particularly given Seattle's way of building and bungling major projects. It's now possible to get a better idea of what might happen. After the successfulvote for the tunnel last month, the guardedness has been relaxed. Additionally, more details are being ?lled in, so the design is moving from a generic 267block esplanade into something far more tailored to the conditions of the spaces. What foLlows are some of the things ILearned from tagging along on a tour put together by the Seattle Parks Foundation and guided by the two principal city of?cials in charge, City planner Marshall Foster and “WATERFRONT FOR ALL” 1. Create a Waterfront for All 2. Put the Shoreline and Innovative, Sustainable Design at the Forefront 3. Reconnect the City to its Waterfront 4. Embrace and Celebrate Seattle’s Past, Present and Future 5. Improve Access and Mobility (for People and Goods) 6. Create a Bold Vision that is Adaptable Over Time 7. Develop Consistent Leadership – from Concept to Operations Adopted by Council in Resolution 31264 4 WATERFRONT SEATTLE PROGRAM QOIONEER SQUARE @smnums ALASKAN WAY WATERFRONT FRCMENADE WASHINGTON ST BOAT s. ST. HABIIAI INIERIIDAL 0 ALASKAN WAY WATER RONT PROMENADE COLUMBIA ST. MARION ST. PEDESTRIAN BRIDGE TERMINAL REPLACEMENT 0 ALASKAN wAv WATERFRONT PROMENAUE SENECA ST. 0 ELLIOTT WAY WATERFRONT PROMENADE UNION I. WATERTRONT PARK REBUILD OCEAN BWILION bb??iiPi-?AST: REHUILD OVERLOOK WALK Ple?Pth 525? ELLIOTTWAY LENORA ST. PED BRIOOE RETROTIT PORTAL PARK CONSTRUCTION SCHEDULE WM - Waterfront Seattle - Related projects 2017 2018 2019 2020 2021 2022 2023 2021. PIKE PLACE MARKETFRONT SEAWALL REBUILD PIER 62/63 REBUILD 8: HABITAT IMPROVEMENTS EARLY WORKS Utility relocations IALASKAN WAY VIADUCT REMOVAL SR 99 tunnel open' MAIN CORRIDOR Alaskan Way, Elliott Way, Columbia St, Seneca St. Lenora St and Promenade New Alaskan Way open CONNECTIONS Bell St, Union St, Pioneer Square Street Improvements and Pike and Pine Streetscape Improvements OVERLOOK WALK WATERFRONT PARK MARION STREET BRIDGE Joint project between City and State,- construction schedule is approximate AQUARIUM OCEAN PAVILION COLMAN DOCK REBUILD Potential early work Potential completion NOTE: construction dates subject to change 5 BACKGROUND: 2009-2018 Year Action Purpose 2009 Ordinance 123142 • Establishes Central Waterfront Partnerships Committee to advise City 2011 Resolution 31264 • Endorses Central Waterfront Guiding Principles • Creates Central Waterfront Committee 2012 Resolution 31399 • Endorses Waterfront Concept Design and Strategic Plan, establishing funding plan, including LID and philanthropy Friends Established • Friends of Waterfront Seattle incorporates as nonprofit organization 2013 Detailed work advances • Waterfront Program established in CIP, including LID • Community engagement on design continues • City initiates outreach and technical work on LID 2014 Early activation begins • Friends opens “Waterfront Space” and begins early public programming and activation • Office of the Waterfront created 7 BACKGROUND: 2009-2018 Year Action Purpose 2017 Resolution 31768 • Reaffirms Council’s commitment to consider LID • Recognizes Friends as City’s non-profit operations and maintenance partner • Friends commits to bring $25M in committed pledges when Council consider LID Formation LID Outreach • Voluntary LID outreach to full range of property owners begins 2018 Special Benefit • Preliminary Special Benefit Study completed Analysis • Ongoing outreach to property owners and preliminary assessment search tool available Resolution of • States Council’s intention to consider forming LID Intent to Form • Initiates legislative process and public notifications Public Hearings • Required hearings and testimony held • Hearing Examiner reports to Council (report and public testimony) 8 1. LID FORMATION ORDINANCE • Forms the Waterfront Local Improvement District #6751 ‒ Does not establish the final amount of individual assessments (subsequent legislative action to confirm “final assessment roll”) • Caps total assessment at $160 million (not including financing costs) • Orders the construction and completion of LID-funded improvements 9 PUBLIC OUTREACH Required by State Law • 2 official public notifications • Direct mailings: 6100 letters • 4 public hearing dates: 20 hours (weekdays, evenings, weekends) Voluntary Outreach • Over 100 individual/group briefings • Direct mailings: 6100 letters • Information sessions: 400 attended • LID email newsletter: 1,766 subscribers • LID customer service: 980 communications (emails, calls) • Online property search tool: 10,885 unique visitors 10 LID – BENEFITS AND ASSESSMENTS Study area overall Total market value without improvements: Estimated total special benefit: Total proposed assessment: $49 billion $415 million $160 million* Proposed assessment percentage: 38.58% *$160 million plus the estimated amounts necessary to pay the costs of financing 11 include office, hotel, retail, institutional, parking and residential apartments $1,900 MEDIAN ONE-TIME ASSESSMENT $5,900 MEDIAN ONE-TIME ASSESSMENT WHAT WOULD OWNERS One-Time Payment or Financed over 20 Years $95 on PER YEAR $8 PER MONTH FOR 20 YEARS $295 PER YEAR. $25 INTEREST PER MONTH FOR 20 YEARS ?lnterest rate would be based on the LID bond rates, determined at the time they are sold. and other costs of the financing Only property owners would be subject to the LID. If landlords choose to pass assessment costs on to apartment tenants. how much would the typical apartment rent increase? $1,040 MEDIAN ONE-TIME ASSESSMENT PER APARTMENT UNIT OF $52 on PER YEAR $4 FER MONTH FOR 20 YEARS 12 DEFERRAL PROGRAMS waterfront STATE OF WASHINGTON CITY OF SEATTLE PROGRAMS PROGRAM 5 AND 0 0?93 ?84 a, You can defer You can defer You can defer 100% 50% 100% of payments of payments Of payments for 20 years* if: for 20 years* if: for 2 years* if: You are the owner Of record You are the owner Of record You are the owner Of record for at least 5 years Your combined income is No more than $45,000 Your household 2000/0 60 ld disposable income pover eve [57 or older if a surviving spouse] $57,000 for your family size OR Your combined income is $45,000 you are retired by reason Of disability *Payments will be subject to interest. Principal and accumulated interest due upon sale or change of ownership, or at end of deferral term. 13 WATERFRONT SEATTLE FUNDING WITH $160M LID Sources to cover revised LID amount: • $5M cost reduction (remove three promenade kiosks) • $10M additional philanthropy • $8M in total of Waterfront MPD funds in 2021-23 (operating converted to capital) • $7M in total of Waterfront 2.5% CPTfunded bonds in 2022-23 • $10M in total of REET in 2021-23 • Total: $40M 14 2. PROTEST WAIVER AGREEMENT ORDINANCE Per State law, property owners may waive their protests through an agreement with the City. Agreement Term: 20 Years Property Owner Commitments Property owners representing 51% of LID assessment to sign agreement City Commitments • Revise LID amount to $160 million • Waive/retract LID formation protest • Waive option for supplemental assessment • Waive legal challenge to LID formation • • Designate Waterfront Conservancy as agent Approve and implement operations and maintenance ordinance 15 COUNCIL REVIEW AND NEXT STEPS January 24, 2019 Second Council committee briefing, possible vote January 28, 2019 Full Council possible vote February 2019 • Formation protest period – ends 30 days after ordinance action • Budget amendment ordinance submitted to City Council to implement LID funding changes March 2019 LID legal appeal period – ends 30 days after conclusion of protest period Q3 2019 Final Special Benefit Study completed Q4 2019/Q1 2020 • Council considers Assessment Roll resolution • Public hearings on individual assessments 2020 • Council considers Final Assessment Roll ordinance • LID assessments begin • LID bonds are sold 16 3. FUNDING, OPERATIONS AND MAINTENANCE ORDINANCE • Outlines philanthropic commitment, contribution schedule for $110 million • Formalizes long-term partnership between Friends and Parks to operate Waterfront parks and public spaces • Authorizes two-year pilot agreement for Pier 62 • Directs City staff to submit Park Boulevard legislation • Commits to budget $4.8 million annually for operations and maintenance and safety and security, starting in 2023 • Creates Central Waterfront Oversight Committee 17 PHILANTHROPY • Friends of Waterfront Seattle: $110 million commitment • Surpassed $25 million goal: $32 million committed to date • Commits Friends to finance contributions if necessary • Friends to provide a Fundraising Plan by March 31, 2019 • Establishes a contribution schedule to ensure funds are available consistent with City’s construction cashflow needs 18 .?3.93235 .1 a yr! 5 ?9213 FRIENDS/CITY PARTNERSHIP • Consistent, dedicated Parks team created to provide longterm, quality maintenance • City delegates non-First Amendment permitting and concessions to Friends (similar to Westlake and Occidental) • Friends provides programming (music, games, concerts), safety and outreach services, community partnerships • All revenue generated by Friends in Waterfront parks and public spaces is reinvested in the same spaces • Annual reporting These and additional terms outlined in Attachment C: Term Sheet 20 PUBLIC BENEFITS • Cultural, educational and recreational programming  Free and open to the public: for many ages and demographics  Regular programming of different scales • Engagement and Inclusion Plan  Intended WMBE targets and outcomes  Recruitment of underserved communities for vendor opportunities  Programming is reflective of and marketed towards underserved communities  Outreach to vulnerable communities • Publicly accessible bathrooms 21 AREA TO BE COVERED BY MANAGEMENT PARTNERSHIPS 8 a isnaw'moo Current park 0 Park boulevard to be established PILOT AGREEMENT (2019 - 2021) MANAGEMENT AGREEMENT [2021) 0 Pier 62 and Floating Dock 0 Pier 62 and Floating Dock 9 Pier 58/Waterfront Park 0 Alaskan Way East and Union Street 0 Park Promenade 6 Railroad Way 15 NOSIOVN ?l I 15 .LS VOENZS ALASKAN WAY II I WESTERN AVE I I .1 a ii'i L7 '15 ?15 NOan POST ALLEY FIRST AVE OVERLOOK WALK AGREEMENT 0 Overlook Walk 22 PIER 62 TWO-YEAR PILOT • Pier 62 projected to open by end of 2019 • City staff and Friends will present pilot agreement to Council committee for review prior to execution • Performance on pilot will inform long-term management agreement to be reviewed and approved by Council for Waterfront parks and public spaces • Parks providing maintenance out of existing resources until long-term management agreement in place 23 OPERATING BUDGET • Two-year pilot agreement (Seattle Park District)  2019: $310K  2020: $315K • Anticipated budget sources for long-term management agreement in 2023 ($4.8M)  Seattle Park District ($4.2M)  Baseline Parks funding for Waterfront Park and Pier 62 ($100K)  Commercial Parking Tax for roadway infrastructure ($500K) • Friends commits to $1-1.5M annually for programming and activation 24 OVERSIGHT COMMITTEE • 19 Committee members:  14 Mayor/Council appointed members: • At-large (6) • LID tenant/owner (8)  5 dedicated non-profits with public space management expertise • Advises on waterfront park operations, maintenance, safety, cultural and recreational programming • Identifies “performance standard” in coordination with Friends and City  Based on 2018 O&M analysis and national best practices • Provides annual report to Mayor and Council 25 NEXT STEPS Q4 2019 Pier 62 opens, pilot agreement in place Full Waterfront construction underway 2021/2022 Surface street opens to traffic Park boulevard designation considered by Council Management agreement considered by Council 2023 Waterfront Seattle improvements completed 26 I ?7 .1 ., a II 343? - 711';-