2019 - 2020 Seattle City Council Green Sheet Approved: Budget Action Description
2019 - 2020 Seattle City Council Green Sheet Approved: Budget Action Description
2019 - 2020 Seattle City Council Green Sheet Approved: Budget Action Description
Approved
Budget Action Title: Rescind green sheet 12-11-A-2 and amend and recommends adoption of
Resolution 31856 related to mutual and offsetting benefit leases
Ongoing: No
Councilmembers: O'Brien
1 CITY OF SEATTLE
2 RESOLUTION __________________
3 ..title
4 A RESOLUTION committing to collaborate with the Executive to ensureon the transfer of
5 properties that have a mutual and offsetting benefit lease to the organizations currently
6 residing in those facilities no later than March 2019 in circumstances where those
7 organizations have expressed interest in taking ownership of those properties and a
8 commitment to continue to provide services to the community, and have demonstrated
9 the financial capability of maintaining the facility.
10
11 ..body
12 WHEREAS, the non-profit organizations occupying city-owned facilities with mutual and
13 offsetting benefit leases have provided vital services to Seattle for decades; and
15 statement of legislative intent 58-1-A-2 in 2013 indicates that the City’s current approach
16 to properties that have a mutual and offsetting benefit (MOB) lease is not sustainable
17 because the existing methodology for calculating cash rent does not cover facility
18 maintenance costs and the non-profits residing in these properties have limited ability to
20 WHEREAS, on October 5, 2016, Seattle’s Office of Housing (OH) determined that the benefits
21 of redeveloping the property at 722 18th Avenue (formerly Fire Station 23) for affordable
22 housing do not outweigh the benefits of having Byrd Barr Place (formerly Centerstone)
24 WHEREAS, for 50 years, Byrd Barr Place has provided essential human services to Seattle
25 residents who are struggling to make ends meet, most of whom live at 150% or more
1 WHEREAS, on October 7, 2016, OH determined that mitigating the steep slope on the east side
2 of the property at 500 30th Avenue South (Central Area Senior Center) would make
3 redeveloping the site with affordable housing financially unfeasible and the benefits of
4 having Central Area Senior Center (CASC) continue to serve African-American seniors
5 in the community far outweigh the benefits of redeveloping the site for affordable
6 housing; and
7 WHEREAS, the Central Area Senior Center, founded in 1972, is a nonprofit volunteer-supported
8 resource providing services to support the emotional, social, and physical well-being of
11 Center would not offer meaningful cost savings sufficient to present a more cost-effective
12 option for the development of affordable housing than development on other market-rate
13 sites; and
15 organization that has been serving older adults and seniors since 1978 and centers an
16 inclusive community that provides social, physical, and educational activities focused
17 around the needs of older adults, as well as works to fight isolation, build camaraderie,
19 WHEREAS, on July 15, 2015, Byrd Barr Place received a grant from the Washington
20 Department of Commerce for $1,455,000 to renovate the building it occupies under the
21 condition that it owns or holds a long-term lease for a minimum of ten years for the
22 property; and
1 WHEREAS, if Byrd Barr Place does not obtain ownership or a long-term lease by June 2019
2 they will lose the $1,455,000 grant from the Washington Department of Commerce; and
3 WHEREAS, a report prepared by Soul Light and submitted to the Department of Finance and
4 Administrative Services on September 13, 2017 determined that Byrd Barr Place and the
5 Central Area Senior Center meet all documented criteria for receiving the property in
6 which they currently reside and City departments believe these organizations have the
7 capability of managing these properties after their transfer for continued community
11 Section 1. The City Council will collaborate with the Executive with a goal of to
12 completinge transfer of the City-owned properties at 722 18th Avenue, 500 30th Avenue South,
13 and the Greenwood Senior Center with mutual and offsetting benefit (MOB) leases to the non-
14 profit organizations currently residing in those facilities no later than March 31, 2019 as
15 recommended in prior consultant reports to the City of Seattle in exchange for certain
16 commitments to maintain the properties and to continue to provide services to the community, all
18 Section 2. The City Council will establish, document, and communicate clear criteria and
19 timelines for entering into long-term leases or transferring the remaining properties with MOB
20 leases if the Executive has not taken action regarding these properties by March 31, 2019, all
2 and signed by me in open session in authentication of its adoption this ________ day of
3 _________________________, 2018.
4 ____________________________________
7 ____________________________________
10 ____________________________________
12 (Seal)