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HomeMy WebLinkAboutRes 1344 - Inclusion of Northwest Expo Center in Limited City Enterprise Development Zone �v1ILA, .wq� "0�.:• Z J °G� r �soa C Washington Resolution No. 1344 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON APPROVING THE INCLUSION OF THE NORTHWEST EXPO CENTER IN THE LIMITED CITY ENTERPRISE DEVELOPMENT ZONE. WHEREAS, the City of Tukwila desires to provide incentives for the development or redevelopment of certain properties within the City of Tukwila jurisdictional boundaries in order to provide public benefits for its citizenry; and, WHEREAS, the City Council established the policy and process for review and inclusion of such development in City of Tukwila Resolution No. 1342; and, WHEREAS, McLeod Development Company's proposal to build an exhibition center in Tukwila, known as Northwest Expo Center, was reviewed and evaluated under the policy guidelines established in Resolution No. 1342; and, WHEREAS, the City finds that the Northwest Expo Center meets the requirements for inclusion in a Limited City Enterprise Development Zone in that it: a. Is consistent with the cities Comprehensive Plan; b. Provides complementary benefits which would facilitate business development such as hotels and restaurants, and develops vacant property; C. Provides economic enhancement since it is a public assembly facility which would provide new jobs and promote secondary business activities which would utilize hotels, restaurant and related businesses located in the City and the region; and, d. Would provide direct and measurable new revenues to the City which is supported by a determination of the Finance Director. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON DO HEREBY RESOLVE AS FOLLOWS: Section 1. The proposal by McLeod Development Company to build the Northwest Expo Center is hereby qualified for inclusion under Resolution No. 1342 in the Limited City Enterprise Development Zone and is entitled to receive considerations for City of Tukwila participation in the public infrastructure improvements required to construct this proposed development. Section 2. The specific terms and conditions for City participation in the public infrastructure improvements required to construct the Northwest Expo Center shall be set forth by Agreement between the City of Tukwila and McLeod Development Company subject to the approval of the Tukwila City Council. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a regular meeting thereof this day of 7n zr_& 1996. Pam Carter, Council President ATTEST /AUTHENTICATED: _1 le E. Cantu, City Clerk APPROVED AS TO FORM: By:z�� I a t &V-2, Office of the City Attorney Filed with the City Clerk: �2 Passed by the City Council: 3 9 Resolution Number: %3 �-el J: CI) Cit it Of Tukwila IIIJ 6200 Southcenter Boulevard Tukwila, Washington 98188 John W. Rants, Mayor 1908 MEMORANDUM To: John W. Rants, Mayor From: Alan R. Doerschel P Date: March 1, 1996 Subject: Revenue Analysis for McLeod (Northwest Expo Center) As prescribed in Resolution No. 1342 Section 2 Par 4 I have determined that the estimated net revenues to be expected from the Northwest Expo Center is approximately $225,000 per year. This is based on projected property tax, sales tax and admission tax revenues. Secondary sales tax and other projected revenues were not included. See analysis below. Estimated Net Revenues: Admissions Tax 500,000 Attendees x $6.00 x .05% 150,000 Pronertv Tax $15,000,000 x $3.10 per thousand 46,500 Sales Tax (Direct) On -Site Services Sales 3,000,000 Direct Sales- Merchandise 3.000.000 Total Sales x .0085 6,000,000 51.000 Total Gross Revenues 247,500 Less: Estimated value of indirect service level costs (22.500) Total Estimated Net Revenues 225,000 Note: This is a conservative estimate. Total projected revenue provided by McLeod was $588,254 which included indirect and utility revenues. mcleod mem Phone: (206) 433 -1800 City Hall Fax: (206) 433 -1833 tLA, ll,� A: s Tukwila 6200 City of 6200 Southcenter Boulevard Tukwila, Washington 98188 John W. Rants, Mayor E' 1908 To: City Council 0� From: Mayor Rants 1 Re: Resolution and Developer's Agreement for McLeod Project Date: March 1, 1996 Attached for your consideration are two documents relating to the McLeod project. The first is a resolution which designates the Exposition Center project as qualifying as a Limited Economic Enterprise Zone. It will be necessary to formally designate the Exposition Center as an eligible project before proceeding to actually determining what level of mitigation relief we will grant. The second document is the Developer's Agreement, which specifically defines the level of City participation in this project. I have included a summary sheet from the Finance Director that explains the calculations and identifies the value of each mitigation element in which the City will participate. As you may recall, we are working under a time line on this matter that will necessitate formal Council consideration at the March 3rd meeting. While I normally would not accelerate an item like this before the Council, the fact that it has already received preliminary review by three sub- committees, as well as the full Council, mitigates the concern over not having an opportunity to go before the COW. Phone: (206) 433 -1800 City Hall Fax. (206) 433 -1833