HomeMy WebLinkAboutRes 1344 - Inclusion of Northwest Expo Center in Limited City Enterprise Development Zone �v1ILA, .wq�
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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
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CI) Cit it Of Tukwila
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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
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Tukwila
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City of
6200 Southcenter Boulevard Tukwila, Washington 98188 John W. Rants, Mayor
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1908
To: City Council
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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