HomeMy WebLinkAboutCOW 2010-03-22 Item 4F - Briefing - Financial Update Regarding Tukwila South Project1 CAS NUMBER: 10-033
SPONSOR'S
SUMMARY
ICS O33
Meeting Date Prepared by
03/22/10 LV
REVIEWED BY COW Mtg. CA &P Cmte
Utilities Cmte Arts Comm.
DA 1'E:
RECOMMENDATIONS:
SPONSOR /ADMIN. Mayor's Office
COMMITTEE
Fund Source:
Comments:
EXPENDITURE REQUIRED
MTG. DATE
3/22/10
COUNCIL AGENDA SYNOPSIS
Initials
Ma or'r review 1 Council review
ITEM
1 ORIGINAL AGENDA DATE: MARCH 22, 2010
ITEMNO.
AGENDA ITEM TITLE Provide a summarization of the financial commitments contained in the Tukwila
South Development Agreement
CATEGORY Discussion Motion n Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 3/22/10 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PV
At a recent Council meeting, discussion arose concerning the financial commitments by the
City and by Segale Properties that are contained in the Tukwila South Development
Agreement. Staff agreed to provide a briefing and a summary sheet identifying the
commitments. This is for Council information only; no action is requested of Council.
F &S Cmte
n Parks Comm.
COST IMPACT FUND SOURCE
AMOUNT BUDGETED APPROPRIATION REQUIRED
MTG. DATE RECORD OF COUNCIL ACTION
ATTACHMENTS
Informational Memorandum dated 3/17/10
Tukwila South Development Agreement Financial Commitments
Transportation Cmte
n Planning Comm.
138
TO: Committee of the Whole
Mayor Haggerton
FROM: Lisa Verner, Mayor's Office
DATE: March 17, 2010
SUBJECT: Tukwila South Development Agreement Financial Commitments
ISSUE
Provide a summarization of the financial commitments contained in the Tukwila South
Development Agreement.
BACKGROUND
At a recent Council meeting, discussion arose concerning the financial commitments by the City
and by Segale Properties that are contained in the Tukwila South Development Agreement.
Staff agreed to provide a briefing and a summary sheet identifying the commitments.
DISCUSSION
City of Tukwila
INFORMATIONAL MEMORANDUM
Jim Haggerton, Mayor
Section 4.8 of the Development Agreement contains the financial commitments made by both
parties. These address the following areas:
Operations and maintenance services, including Accounting Protocols for tracking revenue
and expenses
GO bonds for Southcenter Parkway Extension
Highline Water District work for Southcenter Parkway Extension
PSE work for Southcenter Parkway Extension
Bicycle /Pedestrian bridge over the Green River
Attached to this Informational Memorandum is a one page summary of the commitments and
the financial guarantees. In general, the City has mitigated the downside risk of the financial
obligations it has taken on by targeting revenue, by requiring reimbursements, and by securing
letters of credit or other collateral from which it can pay its obligations if new revenue from
Tukwila South Project is not generated. In other words, through the Development Agreement
provisions, the City has or will have the funds to pay the expenses and debt service it will incur
for Tukwila South.
RECOMMENDATION
Information only. No recommendation included.
ATTACHMENT
Tukwila South Development Agreement Financial Commitments (one page summary)
139
O &M Services
Section 4.8.1
City tracks revenue
annually
City tracks
expenses for Fire,
Parks, Police, and
Public Works
annually
SP pays annually if
revenue is less than
expenses for the 4
departments
If revenue exceeds
expenses,
additional funds go
into General Fund
Guarantees
$6M LC "O &M
LC from SP
(draws down as
used; never less
than $2M)
$6M Deed of Trust
"O &M
Collateral
In escrow now'
Accounting
Protocols due
4/30/10
Tukwila South Development Agreement Financial Commitments
(15 years from effective date of annexation; through December 31, 2024)
GO Bonds for SCP $8.25M
Section 4.8.2
City pays debt service on first
$6M in bonds; increased
property tax revenue from
annexed area is expected to
cover this
City pays debt service on last
$2.25M to the extent
increased property tax
revenue from annexed area
covers more than debt service
on $6M
If annexed area property tax
revenue does not cover debt
service for $2.25M, SP pays
difference
Guarantees
$185,000 LC from SP
"SCPW LC
In escrow by 4/16/10
Highline Water District
Work for SCP
Sections 4.3.4.1 4.8.4.3
City includes HWD
water line in SCP
bid award on
4/19/10
Highline pays for
moving existing
water line under
franchise
SP requests
oversizing, pays
Highline; Highline
reimburses City
Guarantees
ILA with HWD for
Highline franchise
costs
LC' from
SP "Highline
Work LC (110%
of SP share of
Highline Work)
In escrow by
4/16/10
Bank of New York Mellon is City's escrow agent
2 Amount determined annually beginning second year based on 2X annual debt service; estimated to be $370,000
3 Amount to be determined as part of SCP bid
4 Amount to be determined in conjunction with PSE contract
PSE Work for SCP
(Schedule 74)
Sections 4.3.4.2 4.8.4.3
City requires
undergrounding
of existing
overhead electric
lines per
franchise
City approves
Schedule 74
contract(60 /40
split of costs)
with PSE on
4/19/10
SP reimburses
City for Schedule
74 work
Guarantees
Construction
contract with
PSE (to be
completed)
$LC
SP "PSE Work
LC (110% of
Schedule 74
work)
In escrow by
4/16/10
Bicycle/Pedestrian Bridge
Sections 4.5.2 4.8.4.3
SP contributes to
building funds for
pedestrian/ bicycle
bridge over Green
River to connect
Tukwila South trail
to Briscoe Park
Guarantees
$500,000 is due to
City by SP on
7/10/2014
If City needs match
for grant
application, SP will
provide $500,000
LC "Bridge Work
LC
In escrow 30 days
after City notifies
SP