HomeMy WebLinkAboutSpecial 2012-10-08 Item 2A - Grant Application - Tukwila Urban Center Pedestrian-Bicycle Bridge for $6,870,000 (20% City Match)COUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared b
M r
Council review
08/27/12
BG
Resolution
Mtg Date
Ordinance
Mtg Date
10/08/12
BG
Other
Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P &R Police PWW
SPONSOR'S Council is being asked to approve a grant application to the WSDOT Regional Mobility
SUMMARY Grant Program for the Tukwila Urban Center Pedestrian/ Bicycle Bridge. Staff proposes
applying for a grant of $6,870,000 and committing a 20% match from city operating
revenues and park impact fees.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 08/20/12 COMMITTEE CHAIR: ALLAN EKBERG
RECOMMENDATIONS:
SPONSOR /ADMIN. Public Works
COMMITTEE Forward to Committee of the Whole for discussion.
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$0.00 $0.00 $0.00
Fund Source: 104 ARTERIAL STREET FUND AND 301 PARK IMPACT FEES (PAGE 12, PROPOSED 2013 CIP)
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
08/27/12
ITEM INFORMATION
ITEMNO.
I
Special 2.A.
CAS NUMBER:
STAFF SPONSOR: BOB GIBERSON
ORIGINAL AGENDA DATE: 08/27/12
AGENDA ITEM TITLE Tukwila Urban Center Pedestrian/ Bicycle Bridge
Submit WSDOT Regional Grant Program Application
CATEGORY Discussion
Mtg Date 08127112
Motion
Mt g Date 10/08/12
Resolution
Mtg Date
Ordinance
Mtg Date
BidAxard
Mtg Date
Public Hearing
Mtg Date
Other
Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P &R Police PWW
SPONSOR'S Council is being asked to approve a grant application to the WSDOT Regional Mobility
SUMMARY Grant Program for the Tukwila Urban Center Pedestrian/ Bicycle Bridge. Staff proposes
applying for a grant of $6,870,000 and committing a 20% match from city operating
revenues and park impact fees.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 08/20/12 COMMITTEE CHAIR: ALLAN EKBERG
RECOMMENDATIONS:
SPONSOR /ADMIN. Public Works
COMMITTEE Forward to Committee of the Whole for discussion.
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$0.00 $0.00 $0.00
Fund Source: 104 ARTERIAL STREET FUND AND 301 PARK IMPACT FEES (PAGE 12, PROPOSED 2013 CIP)
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
08/27/12
Forward to the 10/8/12 Council meeting.
10/08/12
MTG. DATE
ATTACHMENTS
08/27/12
Informational Memorandum dated August 17, 2012
Page 12, Proposed 2013 CIP
Minutes from the Transportation Committee meeting of 08/20/12
10/08/12
Informational Memorandum dated October 3, 2012 with attachments
p
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
City Council
FROM: Bob Giberson, Public Works Director
Derek Speck, Economic Development Administrator
DATE: October 3, 2012
SUBJECT: Tukwila Urban Center Pedestrian Bicycle Bridge
T►���1?
At the City Council's Committee of the Whole meeting on August 27, the Council requested
additional information related to the City's opportunity to apply for a State grant to purchase land
and construct the Tukwila Urban Center pedestrian bicycle bridge. This memo is intended to
provide that information.
BACKGROUND
The Tukwila Urban Center (TUC) Pedestrian Bicycle Bridge project was first identified as one of
the key catalyst projects for the TUC during six public workshops held in 2003. The Tukwila
Urban Center chapter of the Comprehensive Plan calls for "high- quality transit and pedestrian
facilities, focusing on creating strong connections between the TUC core and the Sounder
commuter rail /Amtrak station." The bridge would enhance the Mall to Station link, leveraging the
Mall, Tukwila Transit Center and Sounder Station investments to promote higher intensity
redevelopment. The bridge project has been included in the City's Capital Improvement
Program (CIP) since 2006.
In 2011 the City completed the Type, Size, and Location study and the City Council approved
the conceptual design and location. Design is well underway and fully funded and should reach
30% completion in January 2013 and final design in late 2013. If funding were available, land
acquisition could start in 2013, construction could start in 2014, and the project could be
completed as early as 2015.
A project budget is attached for the proposed 2013 -2018 CIP. The current expenditures are
estimated at $10.218 million. Of that, approximately $1.6 million is for design, $1.1 million is for
land acquisition, and $7.485 million is for construction. It is possible that the construction
contingency cost estimates could be reduced as more design work is completed.
In terms of project funding, the proposed 2013 -18 CIP reflects a grant of $1.496 million which
the City was already awarded from Federal funds. The proposed budget also anticipates
$1,042,000 to come from City operating revenue, $810,000 from the parks impact fees, and
$6.87 million from additional grants.
The City has an opportunity to apply for a WSDOT Regional Mobility Grant toward the $8.585
million in land acquisition and construction phases shown in the proposed CIP in 2014 -15.
K,
INFORMATIONAL MEMO
Page 2
Because this is a State funding source, the City could count part of the $1.496 million federal
fund grant toward meeting the grant matching requirement; however, in staff's opinion the
application would not be competitive without a higher match contribution. In order to be
competitive for the grant, the City would need to provide a match of greater than 20% of the
total needed funds. For the $8.585 million of funds needed, staff recommends the City commit
$1,715,000 of local funds and apply for a grant of $6.87 million. Even if we apply for and
receive this grant, we will continue to monitor for additional grant opportunities which can be
used to reduce the City's general fund contribution to the match.
The grant application is due on October 10, 2012. The City needs to decide whether to apply
for the grant and, if so, for what amount. If the City is awarded and accepts the grant, the City
would need to decide on the source of the matching funds.
DISCUSSION
Benefits
The main purpose of the proposed pedestrian bicycle bridge is to enable people to walk
between Baker Boulevard and West Valley Highway, resulting in a 15 minute walk from the
Sounder commuter rail station to Baker Boulevard. This pedestrian friendly distance is critical if
the City wants to have new condominiums, apartments, and offices between the Green River
and Westfield Southcenter. With the bridge, an office based business located on Baker
Boulevard could market itself as walkable to the commuter rail station and tap into the
employment base between Tukwila and Tacoma. A similarly located condominium or apartment
building could market itself as walkable to the commuter rail station for a 15 minute train ride
and walk to the office buildings in downtown Seattle. In addition to the pure pedestrian
functionality, the bridge provides a credible connection to the commuter rail station which
creates a positive perception and represents the Tukwila Urban Center core as a special place.
Although the King County Metro bus service and future transit center on Andover Park West
provide good transit connections, without a short walk to the commuter rail station, it is
challenging to effectively market the area as transit oriented. The public perception of a transit
oriented neighborhood is much stronger with a commuter rail station than bus service alone.
In addition of increasing the marketability of a neighborhood, the walkability and amount of
transit in a neighborhood can reduce the development costs by reducing the amount of parking
necessary for new projects. The cost savings is especially important if we want compact
development using structured or underground parking since that style of development is so
expensive.
The currently vacant Circuit City site is one example of these potential benefits. The retail
building has sat vacant since Circuit City went bankrupt in 2009. The current owner of the
property has a choice of re- tenanting the existing building or constructing something new. He is
currently evaluating the feasibility of constructing a 450 unit building comprising short stay hotel
rooms, extended stay hotel rooms, and apartments. As shown in the attached analysis, the new
development would generate over $60 million of construction and property value more than
simply re- tenanting the space. As compared to re- tenanting the space with a retailer, the
development would generate at least $2 million of additional one time permit fees, impact fees,
and taxes and $100,000 of additional annual tax for the City of Tukwila. The bridge itself is not
a guarantee that this particular development will proceed; however, it makes the development
much more feasible, particularly the residential component. If the property is re- tenanted as
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INFORMATIONAL MEMO
Page 3
retail, it will likely be tied up as that use for fifteen years or more. If the City borrowed against the
annual taxes due to the additional development for fifteen years, it could generate
approximately $1.2 million in debt issuance capacity, which is more than the City's proposed
$1.042 million of matching general funds.
It is important to note that at this time we do not know if the Circuit City re- development will
move forward and whether the bridge is the determining factor. We also do not, and probably
will not, have a commitment that if the bridge is constructed, that the Circuit City site, or any
other site, will redevelop. However, staff believes the bridge will significantly increase the
probability and quality of future development between the commuter rail station and the mall.
The Circuit City site is just one example. A few other examples are:
(1) During the Circuit City bankruptcy and prior to the property being purchased by the
current owner, Economic Development staff worked with a senior housing developer
who put an offer on the property. That developer expressed strong interest in the bridge.
(2) Prior to the 2009 recession, Economic Development staff had spoken with other multi-
family housing developers who expressed strong interest in the TUC core and the
bridge.
(3) Currently, a multi family housing developer has expressed strong interest with
Washington Federal, the owner of part of the vacant property north of the commuter rail
station (on the north side of Longacres Boulevard) to build new apartments. If that
developer sees a commitment and certainty to complete the bridge in a timeframe that
makes their property more attractive to higher income tenants, the developer would be
better able to increase the lease rates and construct a higher quality project.
(4) The former Texaco station on Andover Park East at Tukwila Parkway is vacant property
and the bridge could affect the desirability and quality of future development of that
property.
(5) The Helen Nelsen Trust property has some underutilized property between the historic
house and the river which could be developed with townhouses, condos, or senior
apartments. The bridge would enable that development to offer a walkable experience
to the Green River trail, transit center on Andover Park West, Baker Boulevard, and the
mall.
There are some additional benefits. Based on Public Works staff analysis, the bridge can
reduce vehicle miles traveled (VMT) by approximately 667,192 in the first year after completing
the bridge. Fewer vehicle trips may also improve the level of service on surrounding streets.
In short, the pedestrian -bike bridge is critical if the City wants to encourage high quality, new
multi family or multi -story "class A" office development in the TUC core. It is the most significant
remaining public infrastructure project necessary to enable the TUC core to function as a transit
oriented, walkable neighborhood. Until this project has certainty, new development will be likely
to be more of the same that is in place today.
Parks Impact Fees
The Parks Impact Fee program (Ordinance 2366) projects $8 million of funding for four projects,
including $2 million for the TUC bridge project. Of the $8 million, 20% is budgeted to come from
city general funds and 80 which equals $6.4 million, from fees on new development. Thus, of
the $2 million for the TUC bridge shown in the Parks Impact Fee program, $1.6 million is
projected to come from fees on new development. Only $810,000 of that is currently reflected
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INFORMATIONAL MEMO
Page 4
in the proposed 2013 -18 CIP due to uncertainty over the availability of funds. When it was
adopted, those funds were projected to be collected over a twelve year period. Since the
program's inception in 2009, the economy and development have been slow such that just over
$220,000 of the $6.4 million has been received. That $220,000 has been spent for the
Duwamish Hill Preserve. At this time, due to the economy, staff does not have a high degree of
confidence that the impact fees planned for the identified projects will be received by the time
the projects are ready to go. For all of the projects in the Parks Impact Fee program, the City
will need to decide whether to borrow funds to be repaid later when impact fees are received. If
the City does not want to issue debt to be repaid from the impact fees, then it will need to
prioritize which project can draw upon the impact fees.
Property Assessment District
Cities have the legal authority to create property assessment districts to fund portions of public
infrastructure projects. The City recently did this for the Southcenter Access Project (Klickitat).
We would need to perform additional research to determine if this project would be eligible and
cost effective to implement a property assessment district.
Financing
If the City accepts the grant, we would need to determine the best way to provide the City
matching funds for both the City general operating revenue and the parks impact fees. It is
possible the City would have sufficient capacity in available fund balance. The City could also
borrow the funds. If the City issued general obligation bonds, the annual interest rate would be
approximately 3% based on a recent quote for a fifteen year bond for the Metropolitan Park
District. If the City were to apply and be approved for a loan from the State's Public Works Trust
Fund, the interest rate would be approximately 1 We believe this project would be likely to be
approved for a Public Works Trust Fund loan, however, we won't know until early 2013 if the
State legislature appropriates money for the program. The City currently has sufficient debt limit
capacity to issue the debt, especially as we are scheduled to pay off existing bonds over the
next few years.
Opportunity Costs
Unless the City is awarded additional grants, receives full parks impact fees for this project, or
implements an alternative source of matching funds such as an assessment district, in order to
meet the matching fund requirement for the grant, the City would have to contribute
approximately $1 million of general funds and possibly interest. If not for this project, those
funds could be used for other city purposes such as other capital improvement projects or
operating costs.
Typically with capital projects of a regional significance, the city's funds are matched 4:1 and
thus "leverage" federal or state funds. For example, $800,000 of State or Federal funds can be
matched to $200,000 of local funds for a $1 million project. Some capital projects, such as
residential sidewalks, are unlikely to receive State or Federal matching funds since they do not
offer regional transportation benefits. The cost of constructing new residential sidewalks
depends on many factors such as how much land is acquired, topography, pavement condition,
undergrounding of utilities, and other factors. $1 million would typically pay for 500 to 800 feet
of new residential sidewalks.
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INFORMATIONAL MEMO
Page 5
Other Considerations
Even if the City applies for and is awarded the grant, it is not required to accept the grant. If the
City is awarded the grant it could decide whether to accept it. Not accepting it, however, could
affect the City's ability to get future grants. Staff recommends that we should only apply for the
grant if we are willing to accept it and commit the matching funds.
It is important to note that it is difficult to predict whether there will be future grant funding
opportunities for projects of this type. WSDOT received the funding from the Federal
government. If in the future the Federal government sees less need to provide infrastructure
stimulus funds, greater need to fund maintenance and replacement of existing infrastructure, or
reduces total infrastructure funding in order to reduce the Federal debt, this funding may not be
available.
Decision Options
The City's basic choices are to:
(1) Not submit the grant request.
(2) Submit the grant request and, if awarded the grant, then decide whether to accept it.
(3) Submit the grant request at a reduced level, such as for property acquisition.
(4) Submit the grant request for the full amount needed ($6.87 million).
In choices 3 and 4, the implication is that if the grant is awarded, the City would accept it. At
that time the City can make the specific decision on how to provide financing.
Staff supports the vision of a transit oriented, walkable community in the core of the Tukwila
Urban Center and sees this as a key project. Although initially there are opportunity costs to
providing the matching funds for the grant, we believe the bridge will speed up the pace of
development and the revenues from future new development will more than offset the costs.
We recommend option #4.
RECOMMENDATION
The Council is being asked to approve submittal of the WSDOT Regional Mobility grant for
$6,870,000 million and consider this item at the October 8 2012 Committee of the Whole
meeting and October 8, 2012 Special Meeting.
ATTACHMENTS
Informational Memorandum Dated August 17, 2012
Page 12, Proposed 2013 -2018 Capital Improvement Program (CIP)
Minutes from the Transportation Committee meeting of 8/20/12
Parks Impact Fee Ordinance #2366
Circuit City Site Development Revenue Analysis
Letter of Support from Embassy Suites
Catalyst Map of the Tukwila Urban Center
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City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Transportation Committee
FROM: Bob Giberson, Public Works Director
BY: Cyndy Knighton, Senior Engineer
DATE: August 17, 2012
SUBJECT: Tukwila Urban Center PedestrianlBicycle Bridge
Project No. 90510403
WSDOT Regional Mobility Grant Program Application
ISSUE
Submit grant application to the WSDOT Regional Mobility Program for the TUC Pedestrian /Bicycle Bridge.
BACKGROUND
The WSDOT Regional Mobility Grant Program has a current call for applications, which are due on October 10, 2012 but the process
includes early review and approval of a section of the grant which is due September 14, 2012. The early submittal of the complex Vehicle
Mile Travel (VMT) reduction and Vehicle Time (VT) reduction calculations require that work on the grant application must begin earlier than
normal. Staff is proposing submitting for R.O.W. and construction phases on the TUC Pedestrian/Bicycle Bridge project. Tukwila was
successfully awarded a Regional Mobility Grant for the Tukwila Transit Center and remains in good standing with the granting agency.
Staff submitted a grant application through the WSDOT Pedestrian and Bicycle program for the R.O.W. phase in June, 2012. There were
170 applications received for the approximate $8 million available state -wide and it is not yet known if Tukwila will be successful in this highly
competitive program. The Regional Mobility Grant Program is expected to have about $40 million available state -wide.
DISCUSSION
Design is underway for the TUC Pedestrian Bridge and a new cost estimate based on 30% engineering will be available in October. The CIP
currently shows the need for $7,485,000 in construction funding, which is based on information from the Type, Size, and Location Report,
finalized in 2011. The new 2013 CIP sheet will be updated once the most recent information is received and the final grant request will be
updated to reflect the more current cost estimate prior to submittal.
The TUC Pedestrian Bridge requires acquisition of one full property (Nelsen property) and a partial acquisition, including 27 parking stalls, of
a second property (Riverview Plaza). Permanent easements from Seattle Public Utilities are also expected. Estimated cost for acquiring this
R.O.W. is $1,100,000. The 2012 CIP sheet has only $100,000.00 for R.O.W., which was a placeholder until more information was known on
the actual needs.
Match is required for these grants, with the minimum of 20 Unlike most grant sources, previous expenditures and staff salaries can be
used as match. If the two grant requests are successful, the funds cannot be used as match to each other, but other federal grant funds
already awarded for the design can. If successful, funds would be available in June, 2013.
Phase
City
Responsibility
Park Impact
Fees
Awarded
Grants
Grant
Request
Total Amount
Design
102,000
35,000
$1,496,000
0
1,633,000
ROW
230,000
870,000
1,100,000
Construction
710,000
775,000
6,000,000
7,485,000
Total
$1,042,000
810,000
$1,496,000
$6,870,000
$10,218,000
Match Percentage
10%
8%
15%
67%
100%
RECOMMENDATION
Council is being asked to approve the submission of a grant application to the WSDOT Regional Mobility Grant Program for the TUC
Pedestrian /Bicycle Bridge in the amount of $6,870,000 with a minimum 20% local match, and consider this item at the August 27, 2012
Committee of the Whole and subsequent September 4, 2012 Regular meeting.
Attachment: CIP sheet
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01
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2013 to 2018
PROJECT:
DESCRIPTION:
JUSTIFICATION:
STATUS:
MAINT. IMPACT:
Tukwila Urban Center Pedestrian /Bicycle Bridge Project No. 90510403
Construct a new pedestrian /bicycle bridge over the Green River.
Pedestrian /bicycle connection between Tukwila's Urban Center and co rail/ r t&enter.
Supports local and regional goals and policies regarding land u rtati n
Pedestrian System Report identified the optimal locati fo to be south of the Best
Western Hotel. Type, Size, and Location Report was c e ;nt711. Council approved a design of
a twin -tied arch bridge with no accommodation for a fututi 'bridge crossing over West Valley Highway.
To be determined.
State Enhancement design grant for $190k and Transit Oriented Development (TOD) planning grant of $55k
COMMENT: State Enhancement grant of $500k and Federal CMAQ grant of $750,833 for final design. Project is on Park
Impact Fee list with funding of $2 million with an 80 %/20% split.
FINANCIAL Through Estimated
iin 4nnn'cl 2111 2n12 2n1s 2n1a 2n15 2016 2017 2018 BEYOND TOTAL
EXPENSES
Design
267
984
382
1,633
Land (R/W)
1,100
1,100
Const. Mgmt.
1,000
1,000
Construction
6,485
6,485
TOTAL EXPENSES
267
984
382
1,100
7,485
0
0
0
0
10,218
FUND SOURCES
Awarded Grant
245
930
321
1,496
Proposed Grant
870
6,000
6,870
Mitigation Actual
0
Park Impact Fees Expected
35
90
685
810
City Oper. Revenue
1
22
54
26
140
800
0
0
0
0
1,042
TOTAL SOURCES
267
984
382
1,100
7,485
0
0
0
0
10,218
2013 2018 Capital Improvement Program 12
Gn
TRANSPORTATION COMMITTEE
Meeting Minutes
August 20, 2012 5:15 p.m. Conference Room #1
PRESENT
Councilmembers: Allan Ekberg, Chair; Kathy Hougardy and De'Sean Quinn
Staff: David Cline, Bob Giberson, Frank Iriarte and Robin Tischmak
Guest: Chuck Parrish
CALL TO ORDER: The meeting was called to order at 5:15 p.m.
I. PRESENTATIONS No presentations.
II. BUSINESS AGENDA
A. WSDOT Regional Mobility Grant: TUC PedestrianBicycle Bridge
Staff is seeking Committee approval to apply for the Washington State Department of Transportation
WSDOT) Regional Mobility Grant for right -of -way and construction phases of the Tukwila Urban
Center Pedestrian/Bicycle Bridge project.
The total grant request would be in the amount of $6,870,000, and requires a minimum 20% City match.
The Committee discussed concerns regarding the amount of City matching funds for the grant, and the
amount of effort required to calculate the Vehicel Mile Travel (VMT) and Vehicel Time (VT) reduction
calculations. Without concerns this application would usually be approved for submission by the
Committee; however, the Committee would like to move this forward to full Council for discussion due
to the concerns above. FORWARD TO AUGUST 27 COW FOR DISCUSSION.
B. TUC Transit Center Supplemental Agreement No. 15
Staff is seeking Council approval for the Supplemental Agreement No. 15 with IBI Group for a new
scope and fee that addresses additional utility conflict resolution potholing, minor re- design for conflict
resolution, additional right -of -way acquisition services and additional survey work for the Transit Center
in the amount of $65,970. UNANIMOUS APPROVAL. FORWARD TO AUGUST 27 COW FOR
DISCUSSION.
C. Andover Park West Street Widening Supplemental Agreement No. 16
Staff is seeking Council approval for the Supplemental Agreement No. 16 with 113I Group for a new
scope and fee that addresses additional utility conflict resolution potholing, minor re- design for conflict
resolution, additional right -of -way acquisition services and additional survey work for the Andover Park
West Street Widening in the amount of $86,450. UNANIMOUS APPROVAL. FORWARD TO
AUGUST 27 COW FOR DISCUSSION.
III. SCATBd
No discussion held. INFORMATION ONLY.
IV. MISCELLANEOUS
Committee Chair Ekberg mentioned that the brush in the median on northbound SR -599 just north of the
bridge over I -5 appears to be a hindrance to the sight distance for northbound vehicles. Bob Giberson will
forward this on to the WSDOT maintenance office for review and response.
11
12
City of u la
Washington
Ordinance No. D3
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 2220, AS
CODIFIED IN TUKWILA MUNICIPAL CODE (TMC) CHAPTER 16.28;
REENACTING TMC CHAPTER 16.28, "PARKS IMPACT FEES," TO
AMEND THE PROCESS FOR IMPOSING AND ADMINISTERING
PARKS IMPACT FEES TO BETTER ADDRESS THE NATURE OF
DEVELOPMENT ACTIVITY IN TUKWILA; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2220 on December 15, 2008;
and
WHEREAS, after implementation of Ordinance No. 2220, certain refinements have
been identified based on the unique nature of the development activity in Tukwila; and
WHEREAS, the City desires to simplify the process of imposing and administering
parks impact fees;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC Chapter 16.28 Reenacted. Tukwila Municipal Code (TMC)
Chapter 16.28 is hereby reenacted to read as follows:
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CHAPTER 16.28
PARKS IMPACT FEES
Sections:
16.28.010
Authority and Purpose
16.28.020
Findings
16.28.030
Definitions
16.28.040
Parks Impact Fee Assessment
16.28.050
Use of Parks Impact Fees
16.28.060
Parks Impact Fee Capital Facilities Plan
16.28.070
Parks Impact Fee Formula
16.28.080
Parks Impact Fee Adjustments
16.28.090
Credits
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16.28.100
Appeals
16.28.110
Refunds
16.28.120
Exemptions
16.28.130
Authority Unimpaired
16.28.010 Authority and Purpose.
A. Authority. The City of Tukwila's impact fee financing program has been
developed pursuant to the City of Tukwila's policy powers, the Growth Management Act
as codified in Chapter 36.70A of the Revised Code of Washington (RCW).
B. Purpose. The purpose of the financing plan is to:
1. Develop a program consistent with Tukwila's Parks and Recreation
Department Capital Facilities Plan for joint public and private financing of public parks
facilities and services necessitated in whole or in part by development within the City of
Tukwila;
2. Create a mechanism to charge and collect fees to ensure that
development bears its proportionate share of the capital costs of public parks facilities
necessitated by development; and
3. Ensure fair collection and administration of such parks impact fees.
16.28.020 Findings. The City Council finds and determines that growth and
development in the City create additional demand and need for public parks facilities in
the City, and the City Council finds that growth and development should pay its
proportionate share of the costs of the facilities needed to serve the growth and
development in the City. Therefore, pursuant to RCW 36.70A and RCW 82.02.050
through 82.02.100, which authorize the City to impose and collect impact fees to fund
public facilities that serve growth, the City Council adopts this ordinance to impose
parks impact fees for parks services. It is the Council's intent that the provisions of this
ordinance be liberally construed in establishing the parks impact fee program.
16.28.030 Definitions. Terms or words not defined herein shall be defined pursuant to
RCW 82.02.090 when given their usual and customary meaning. For the purposes of
this ordinance, unless the context or subject matter clearly requires otherwise, the
words or phrases defined in this section shall have the following meanings:
1. "Building permit" means an official document or certification of the City of
Tukwila issued by the City's building official which authorizes the construction,
alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection,
placement, demolition, moving, or repair of a building or structure.
2. "City" means the City of Tukwila, Washington, County of King.
3. "Development activity" means any construction, reconstruction, or
expansion of a building, structure, or use, or any changes in use of a building or
structure, or any changes in the use of land, requiring development approval.
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4. "Development approval" means any written authorization from the City,
which authorizes the commencement of the "development activity."
5. "Encumber" means to reserve, set aside, or earmark the parks impact
fees in order to pay for commitments, contractual obligations, or other liabilities incurred
for the provision of parks services.
6. "Fee payer" is a person, corporation, partnership, an incorporated
association or governmental agency, municipality, or similar entity commencing a land
development activity that requires a building permit and creates a demand for additional
parks capital facilities.
7. "Impact fee" means the payment of money imposed by the City on
development activity pursuant to this ordinance as a condition of granting development
approval in order to pay for the parks facilities needed to serve growth and development
that is a proportionate share of the cost of parks capital facilities used for facilities that
reasonably benefit development. Impact fees do not include reasonable permit fees,
application fees, administrative fees for collecting and handling parks impact fees, or
the cost of reviewing independent fee calculations.
8. "Owner" means the owner of record of real property, as found in the
records of King County, Washington, or a person with an unrestricted written option to
purchase property; provided, that if the real property is being purchased under a
recorded real estate contract, the purchaser shall be considered the owner of the
property.
9. "Proportionate share" means that portion of the cost for parks facility
improvements that are reasonably related to the service demands and needs of
development.
10. "Parks facilities" means those capital facilities identified as park and
recreational facilities in the City's Capital Facilities Plan.
16.28.040 Parks Impact Fee Assessment.
A. The City shall collect parks impact fees from applicants seeking development
approvals from the City for any development activity in the City for which building
permits are required, effective January 1, 2009, consistent with the provisions of this
ordinance.
B. Parks impact fees shall be assessed at the time of a technically complete
building permit application that complies with the City's zoning ordinances and building
and development codes. Parks impact fees shall be collected from the fee payer at the
time the building permit is issued.
C. Except if otherwise exempt, the City shall not issue the required building permit
unless or until the parks impact fees are paid.
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16.28.050 Use of Parks Impact Fees.
A. Pursuant to this ordinance, parks impact fees shall be used for parks facilities
that will reasonably benefit growth and development, and only for park facilities
addressed by the City's Capital Facilities Element of the Comprehensive Plan.
B. Fees shall not be used to make up deficiencies in City facilities serving an
existing development.
C. Fees shall not be used for maintenance and operations, including personnel.
D. Parks impact fees shall be used for but not limited to land acquisition, site
improvements, engineering and architectural services, permitting, financing,
administrative expenses and applicable mitigation costs, and capital equipment
pertaining to parks facilities.
E. Parks impact fees may also be used to recoup public improvement costs
incurred by the City to the extent that growth and development will be served by the
previously constructed improvement.
F. In the event bonds or similar debt instruments are or have been issued for
parks facility improvements, impact fees may be used to pay the principal on such
bonds.
16.28.060 Parks Impact Fee Capital Facilities Plan. In order to collect parks impact
fees, the City must first adopt a parks capital facilities plan as an element of the City's
Comprehensive Plan. The City's capital facilities plan for parks services shall consist of
the following elements:
1. The City's capacity over the next six years, based on an inventory of the
City's parks facilities both existing and under construction;
2. The forecast of future needs for parks facilities based upon the City's
population projections;
3. A six -year financial plan component, updated as necessary, to maintain at
least a six -year forecast for financing needed within projected funding levels;
4. Application of the formula set forth in this ordinance based upon the
information in the capital facilities plan; and
5. City Council Action. No new or revised impact fee shall be effective until
adopted by the City Council following a duly advertised public hearing to consider the
City's capital facilities plan or plan update.
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16.28 .070 Parks Impact Fee Formula.
A. The impact fee formula is based on the assumptions found in Tukwila Parks
Impact Fees, 2008, Exhibit A, and Tukwila Parks Capital Facilities List, Exhibit B, both
attached hereto and by this reference fully incorporated herein.
PARKS IMPACT FEE CALCULATIONS
B. Each development shall mitigate its impacts on the City's parks facilities by
payment of a fee that is based on the type of land use and square footage of the
development, and proportionate to the cost of the parks facility improvements
necessary to serve the needs of growth.
C. Applications for a change of use shall receive credit based on the existing use.
This credit is calculated by deducting the fee amount of the existing use from the fee of
the proposed use.
16.28.080 Parks Impact Fee Adjustments.
A. The City may adjust a parks impact fee at the time the fee is imposed in order
to consider unusual circumstances in specific cases to ensure that impact fees are
imposed fairly.
B. In calculating the fee imposed on a particular development, the City shall
permit consideration of studies and data submitted by a developer in order to adjust the
amount of the fee. The developer shall submit an independent fee calculation study to
the Director of Parks and Recreation, who shall review the study to determine that the
study:
1. Is based on accepted impact fee assessment practices and
methodologies;
2. Uses acceptable data sources and the data used is comparable with the
uses and intensities planned for the proposed development activity;
3. Complies with the applicable state laws governing impact fees;
4. Is prepared and documented by professionals who are mutually agreeable
to the City and the developer and who are qualified in their respective fields; and
5. Shows the basis upon which the independent fee calculation was made.
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impact Fee
Land Use
Per Residential Unit
Per 1,000 S Ft. GFA
Single Family
$1,426
Multi-Family
$1,398
Office
$837
Retail
$419
Industrial
$262
B. Each development shall mitigate its impacts on the City's parks facilities by
payment of a fee that is based on the type of land use and square footage of the
development, and proportionate to the cost of the parks facility improvements
necessary to serve the needs of growth.
C. Applications for a change of use shall receive credit based on the existing use.
This credit is calculated by deducting the fee amount of the existing use from the fee of
the proposed use.
16.28.080 Parks Impact Fee Adjustments.
A. The City may adjust a parks impact fee at the time the fee is imposed in order
to consider unusual circumstances in specific cases to ensure that impact fees are
imposed fairly.
B. In calculating the fee imposed on a particular development, the City shall
permit consideration of studies and data submitted by a developer in order to adjust the
amount of the fee. The developer shall submit an independent fee calculation study to
the Director of Parks and Recreation, who shall review the study to determine that the
study:
1. Is based on accepted impact fee assessment practices and
methodologies;
2. Uses acceptable data sources and the data used is comparable with the
uses and intensities planned for the proposed development activity;
3. Complies with the applicable state laws governing impact fees;
4. Is prepared and documented by professionals who are mutually agreeable
to the City and the developer and who are qualified in their respective fields; and
5. Shows the basis upon which the independent fee calculation was made.
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C. In reviewing the study, the Director of Parks and Recreation "Director may
require the developer to submit additional or different documentation. If an acceptable
study is presented, the Director of Parks and Recreation may adjust the fee for the
particular development activity. The Director shall consider the documentation
submitted by the applicant, but is not required to accept such documentation that the
Director reasonably deems to be inaccurate or unreliable.
D. A developer requesting an adjustment or independent fee calculation may pay
the impact fees imposed by this ordinance in order to obtain a building permit while the
City determines whether to partially reimburse the developer by making an adjustment
or by accepting the independent fee calculation.
16.28.090 Credits. In computing the fee applicable to a given development, credit
shall be given for the fair market value measured at the time of dedication, for any
dedication of land for improvements to, or new construction of, any parks facilities that
are identified in the Capital Facilities Element and that are required by the City as a
condition of approving the development activity.
16.28.100 Appeals.
A. Any fee payer may pay the impact fees imposed by this ordinance under
protest in order to obtain a building permit.
B. Appeals regarding parks impact fees imposed on any development activity may
only be submitted by the fee payer of the property where such development activity will
occur. No appeal shall be permitted unless and until the impact fee at issue has been
paid.
C. Determinations by the City staff with respect to the applicability of parks impact
fees to a given development activity, or the availability of a credit, can be appealed to
the City's Hearing Examiner pursuant to this section.
D. An appeal shall be filed within 10 working days of payment of the impact fees
under protest or within 10 working days of the City's issuance of a written determination
of a credit or exemption decision by filing with the City Clerk a notice of appeal giving
the reasons for the appeal and paying the accompanying appeal fee as set forth in the
existing fee schedule for land use decisions.
16.28.110 Refunds.
A. If the City fails to expend or encumber the impact fees within 10 years from the
date the fees were paid, unless extraordinary, compelling reasons exist for fees to be
held longer than 10 years, the current owner of the property on which the impact fees
were paid may receive a refund of such fees. Such extraordinary or compelling
reasons shall be identified in written findings by the City Council.
B. The City shall notify potential claimants by first class mail that they are entitled
to a refund. In determining whether impact fees have been expended or encumbered,
impact fees shall be considered expended or encumbered on a first -in, first -out basis.
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C. Owners seeking a refund must submit a written request for a refund of the fees
to the City within one year of the date the right to claim a refund arises or notice is
given, whichever comes later.
D. Any impact fees for which no application has been made within the one -year
period shall be retained by the City and expended on appropriate parks facilities.
E. Refunds of impact fees shall include any interest earned on the impact fees by
the City.
16.28.120 Exemptions. The parks impact fees are generated from the formula for
calculating the fees as set forth in this ordinance. The amount of the impact fees is
determined by the information contained in the adopted parks master plan and related
documents, as appended to the City's Comprehensive Plan. All development activity
located within the City shall be charged a parks impact fee; provided, that the following
exemptions shall apply. Any development activity or project which has submitted a
technically complete building permit application prior to the effective date of this
ordinance shall be exempt from the payment of parks impact fees. The following shall
be exempt from parks impact fees:
1. Replacement of a structure with a new structure having the same use, at
the same site, and with the same gross floor area, when such replacement is within 12
months of demolition or destruction of the previous structure.
2. Alteration, expansion, or remodeling of an existing dwelling or structure
where no new units are created and the use is not changed.
3. Construction of an accessory residential structure.
4. Miscellaneous improvements including, but not limited to, fences, walls,
swimming pools, and signs that do not create an increase in demand for parks services.
5. Demolition of or moving an existing structure within the City from one site
to another.
6. Low income housing developed by individuals, nonprofit corporations, or a
housing authority may be exempted from impact fees at the discretion of City staff
subject to:
a. Submittal of a fiscal impact analysis of the effect of impact fees upon
low- income housing and how exempting such housing from impact fees would forward
the goals for low- income housing in the City and King County;
b. Submittal of adequate documentation showing that the housing will
remain available for low- income persons for a 10 -year period of time at affordable rents;
and
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c. In the case of owner occupied dwellings, submittal of adequate
documentation showing that such housing will be sold or leased at affordable rates to
low- income households for a period of 10 years.
d. The impact fee for exempt development under this subsection shall be
calculated as provided by this ordinance and paid with public funds. Such payments
may be made by including such amounts in the public share of the system
improvements undertaken within the City for parks services and facilities.
7. Change of Use. A development permit for a change of use that has less
impact than the existing use shall not be assessed a parks impact fee.
8. A fee payer required to pay for system improvements pursuant to RCW
43.21C.060 shall not be required to pay an impact fee for the same improvements
under this ordinance.
16.28.130 Authority Unimpaired. Nothing in this ordinance shall preclude the City
from requiring the fee payer to mitigate adverse environmental effects of a specific
development pursuant to the State Environmental Policy Act, Chapters 43.21C RCW
and /or Chapter 58.17 RCW, governing plats and subdivisions; provided that the
exercise of this authority is consistent with Chapters 43.21 C and 82.02 RCW.
Section 2. Repealer. Ordinance No. 2220, as codified in TMC Chapter 16.28,
"Parks Impact Fees," is hereby repealed.
Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 4. Severability. If any section, subsection, paragraph, sentence, clause
or phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 5. Effective Date. This ordinance or a summary thereof shall be
published in the official newspaper of the City, and shall take effect and be in full force
five days after passage and publication as provided by law.
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PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this ��C V day of 61 r 2012.
ATTEST /AUTHENTICATED:
Christy O'Flahe MM(;, City Clerk'
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
2 1 aggert ?r r
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Nu mber: 6
Attachments: Exhibit A Tukwila Parks Impact Fees, 2008
Exhibit B Tukwila Parks Capital Facilities List
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22
EXHIBIT A
Tukwila Parks Impact Fees, 2008
(80% impact fees; 20% city contribution)
TABLE 1: 2008 Park Impact Fee Calc ulations (80% 20% split)
Land Use 2007 2007 2007 Building 2020 Housing 2020 2020 Building
Housing Employment Area -3 Units Employme Area
Units -1 2 nt
Single-family
3,822
2.44
3,198
4,338
$735
Multi familv
Multi family
4,107
Multi- family
2.49
6,491
Office
52.06%
Office
370,500
6,245
1,561,250
Retail
7,727
1,931,750
Retail
435
20 384
10
$837.29
25,220
12,610,000
Industrial
4,392
20,343
16,274,400
1 11,144
25,169
20,135,200
TOTALS
7,929
1 46,972
1 28,027,650
10,829
1 58,116
1 34,676,950
1. OFM
2. PSRC 2007 Covered Emplooyment Estimates
3. Retail: 500gsf per emp; Office: 250gsf per emp; Industrial: 800gsf per emp; X emp growth
4. 43 SF du /yr; rest is MF from 2007 Buildable Lands Report
5. 90% of Buildable Lands Report estimates, at same as 2007 employment
6. Tukwila Resident/Non- Tukwila resident breakdown based on 2000 census data
In 2000, the number of residents who live and work in Tukwila is 1,502, out of a population of 17,181, or 9%
Net Growth, 2008 2020
Land Use Housing Employment Building Area Employment: Employme
Units 4 5 -3 Tukwila nt: Non
Residents Tukwila
9%-6 Residents
ot0i -6
Single-family
516
2.44
3,198
11.49%
$735
Multi familv
2,384
$1 426
Multi- family
2.49
2.44
Office
52.06%
1,482
370,500
133
1,349
Retail
4 836
2,418,000
435
4,401
Industrial
$837.29
4,826
3
434
4,392
TOTALS
2,900
1 11,144
6,649,300
1,003
10,141
Impact Fee
Land Use Persons Use Ratio Total Use by Use by Cost Per Housing Per 1,000 Rounded
per Between Land Use Land Use Allocation Unit GFA
Housing Residents/ Category Category
Unit Employees
Single-family
2.54
2.44
3,198
11.49%
$735
$1
$1 426
Multi- family
2.49
2.44
14,484
52.06%
$3,331,715
$1,397.53
$1398
Office
1.00
1,349
4.85%
$310,214
$837.29
$837
Retail
1.00
4,401
15.82%
$1,012
$418.64
$419
Industrial
1.00
4,392
15.78%
$1,010,185
$261.65
$262
TOTALS
1
27
1 100.00%
1$6,400,000
I.v ,y v, +vv,vvv w ov io vi Z0,VVV,VVV
23
Exhibit B
Tukwila Parks Capital Facilities List
Project List Impact Fees 2009 to 2015
Project Cost
Duwamish Hill Preserve
Develop Phase II
$2,000
*$2,500,000
Trail Connections
Green River Trail to Renton
Black /Cedar River Trail
$500,000
Tukwila Pond
Development Phase IV
$3,000,000
Cit „f T eel
crc'9""°
jExt nd Land le e, e .,.a
feat a nd
i
TOD Pedestrian Bridge
Sounder Connection
2,000,000
Total
$8,000,000
Tukwila Pool removed from list due to the formation of the Metropolitan Park District in 2011;
those funds were added to the Duwamish Hill Preserve project.
NOTE: Previous version of Exhibit B (prior to strike through changes resulting from formation of
the MPD) was included as an attachment to Ordinance No. 2220.
Exhibit B Parks Impact Fees
Revised January 2012
24
Circuit City Site City Tax and Fee Analysis
Updated 10/3/12
Re- tenanted Project Assumptions (1)
Square Feet Units
Retail 41,500
Estimated Construction Cost
Per SF Total
50 2,075,000
Total 41,500
2,075,000
New Development Project Assumptions (2)
Redeveloped
2009
2012
Estimated Construction Cost
Square Feet
Units
Per SF
Total
Hotel 170,000
244
183
31,042,000
Multi- family 220,000
210
153
33,638,000
Retail 5,000
134
671,000
Total 395,000
454
65,351,000
Assessed Values (3)
25
Tax Year
Retenanted
Redeveloped
2009
2012
Land
2,970,100
2,970,100
2,970,100
2,970,100
Building
4,986,700
379,900
4,986,700
65,351,000
Total 7,956,800
3,350,000
7,956,800
68,321,100
One Time City Revenues (4)
Retenanted
Redeveloped
Fees
Permit and Plan Review Fees
Building
15,812
498,000
Mechanical
TBD
59,000
Plumbing
TBD
8,000
Electrical
TBD
74,000
Traffic Concurrency
15,000
Subtotal
15,812
654,000
Impact Fees
Traffic
TBD
434,000
Fire
TBD
353,000
Parks
TBD
367,000
Subtotal
1,154,000
Taxes
Construction Sales Tax
0.0085
17,638
555,484
Real Estate Excise Tax
0.0050
39,784
341,606
57,422
897,089
Total One Time Revenues
73,234
2,705,089
Page 1
25
Annual City Revenues (5)
Property Tax Due to New Construction
Sales Tax for Retail
City Rate Retenanted
0.00295 14,711
0.00850 88,188
Total Annual Revenues
Debt Issuance Capacity Due to Development (6)
Term Interest Rate
15
3%
102,898
Retenanted
$1,228,393
Redeveloped
192,785
10,625
203,410
Redeveloped
$2,428,301
Notes
(1) Retenanting assumes keeping the same buildings as retail use and assumes a the all -in cost
of owner and tenant improvements is $50 per square foot.
Current Property Stats Building square feet 41,500
Land Square Feet 148,507
(2) New development assumptions based on Omar Lee's concept dated 4/13/2011.
Unit costs per square foot based on ICC building valuation table from 2/2011 and include
Seattle area multiplier.
(3) Assessed values for tax years 2009 and 2012 per County Assessor website 8/28/12.
AV as retenanted assumes building value equal to 2009 value (highest year in last decade).
AV as new development assumes building value equals construction value, although
it is possible the AV will be higher than construction.
(4) One time city building permit fees based on City Ordinance 2295 dated 7/28/2010.
As redeveloped plumbing fee assumes 475 fixtures. Mechanical costs estimated at 10.72%
of building cost. Electrical costs estimated at 16.6% of building cost.
One time city traffic concurrency fee per Public Works 4/18/11.
Permit and plan review fees are intended to cover permitting and plan review costs.
Impact fees are dedicated to the projects identified in the impact fee programs. They have
not been adjusted to take into account existing credits or exemptions, if applicable.
Real estate excise tax based on City's portion of 0.5 Per RCW it must be spent on
capital projects. Per City policy is it split equally for the 301 fund and arterial street fund.
REET is only collected upon sale and transfer of property which does not always occur
with new development so it may not be appropriate for this analysis.
(5) Annual city revenues estimates additional property tax due to new construction value and
sales tax based on $250 sales per square foot per year.
(6) Debt service capacity estimates the amount of debt that could be issued assuming a fully
amortized loan with level annual payments at the above term and interest rate, not
counting issuance costs. In 2012 the City received a quote for a $1.2 million, 15 year bond
at an all -in- true interest cost of 3.16
(7) This analysis estimates revenues to the City but does not relflect related costs such as
for permit review, building inspection, public safety, and public infrastructure.
26 Page 2
EMBASSY SUITES
HOTELS®
September 5 2012
To Whom It May Concern:
The Embassy Suites Seattle located at 15920 W. Valley HW, Tukwila WA is an advocate for the
proposed walking bridge in our neighborhood. From an environmental and financial standpoint, my
property in particular would greatly benefit from this capital project.
Our property offers a complimentary 24 hour shuttle to the airport and local runs within five miles of
our property daily from 9AM to 10PM. During these hours of operation, we run up to two shuttles to
accommodate our guest requests. Our fleet consists of two, 10 passenger vans.
Please see the attached grid that was prepared by our Front Office Manger. The data shows average
local runs from the hotel by month.
MONTH
Shuttle Runs
Approximate of Passengers
January
129
387
February
131
393
March
130
390
April
135
405
May
137
479
June
140
532
July
144
576
August
145
616
September
Forecast: 142
Forecast: 582
October
Forecast: 129
Forecast: 387
November
Forecast: 128
Forecast: 384
December
Forecast: 130
Forecast: 390
Grand Total
1620
5521
YE mileage estimate 90k
Local runs =18% of our mileage
or 16.2k
27
Compression is a result of multiple factors including: overall hotel occupancy, transient cruise business
which runs from May thru September, shopping holidays, and group performance, particularly from the
Sports market. It is important to note that the hotel's priority is our airport transportation and
frequently our drivers will change their route to the airport in order to accommodate a few passengers
needed to go to the mall area. These guests are captured with the airport runs and are not accounted
for below. Therefore, the totals below are conservative. From a mileage standpoint, our vans log over
90K miles a year. YTD mileage as of EOM, August 64k miles. Local runs equate to 18% of our overall
mileage.
Please contact me directly for additional information.
Thank you, Maureen
Maureen Huffman
General Manager
Embassy Suites Seattle Tacoma Intl. AP
206 219 -2140
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