A RESOLUTION adopting updated policies regarding the establishment and management of Parking and Business Improvement Areas (BIAs) for the City of Seattle; and superceding Resolution 29706.

WHEREAS, RCW35.87A authorizes the establishment of Parking and Business Improvement Areas, commonly referred to as business improvement areas or BIAs, to aid general economic development and neighborhood revitalization, and to facilitate cooperation of merchants, businesses, and residential property owners in order to assists trade, economic viability, and livability; and

WHEREAS, Parking and Business Improvement Areas may provide parking facilities for the benefit of the area, public decorations, planning, and promotional activities in the area, maintenance and security for common public areas, and administration associated with the management of the BIA; and

WHEREAS, as of the date of this resolution the City of Seattle has established, and currently maintains, six BIAs, and may be petitioned to establish additional BIAs; and

WHEREAS, BIAs have been very beneficial to the areas in which they have been established, often augmenting municipal services; and

WHEREAS, the City of Seattle collects assessments from BIA rate payers and, as allowed by State law, is responsible for the appropriate expenditure of these revenues for authorized purposes; and

WHEREAS, BIAs may be disestablished, as provided by RCW 35.87A.180, as the needs of an area evolve over time; and

WHEREAS, on May 26, 1998, the Council adopted Resolution 29706, relating to the establishment and management of BIAs; NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE

MAYOR CONCURRING, THAT:

Section 1. Resolution 29706 is hereby superceded in its entirety, and the attached Parking and Business Improvement Area (BIA) policies (Exhibit A) are adopted. In so doing, the City of Seattle reaffirms its support of the use of BIAs as effective tools for economic development and neighborhood revitalization.

Section 2. The City of Seattle hereby establishes its intent to develop model methodologies for the establishment of BIAs. The model methodologies will present alternatives for BIA assessment methods, billing cycles and ratepayer classifications, as well as a definitional guide to assist agencies establishing BIAs. The Department of Finance and the Office of Economic Development will develop the model methodologies for review and approval by Council by the end of first quarter 2002.

Adopted by the City Council the _____ day of _______________, 2001, and signed by me in open session in authentication of its adoption this _____ day of _______________, 2001.

________________________________________

President _________________of the City Council

THE MAYOR CONCURRING:

___________________________

Paul Schell, Mayor

Filed by me this _____ day of _______________, 2001.

________________________________________

City Clerk

(Seal)

Exhibit A: Policies Related To Parking and Business Improvement Areas

Clausen/peyer

FinPolBIARes

August 14,2 001

Version 2

EXHIBIT A:

POLICIES RELATED TO PARKING AND BUSINESS IMPROVEMENT AREAS

Introduction

Parking and Business Improvement Areas (BIAs) are special assessment districts that are established to facilitate cooperation among merchants, business and residential property owners, and to aid general economic development and neighborhood revitalization. The legal authority for the establishment and management of BIAs is set forth in the Revised Code of Washington (RCW), Chapter 35.87A. RCW Chapter 35.87A authorizes all counties, cities, and towns to levy and collect assessments on all businesses and multifamily residential or mixed-use projects that specially benefit from a BIA to pay in whole or in part the costs associated with the BIA.

City of Seattle Policies Related to BIAs:

Section 1. It is the City of Seattle's policy to encourage and support the establishment of BIAs when it is beneficial to an area to do so. As provided in RCW 35.87A.010, the City of Seattle will consider establishing BIAs when presented with a petition by those who represent sixty percent (60%) or more of the total assessment in the proposed BIA.

Section 2. It is the City of Seattle's intent to maintain the level of municipal services in areas where BIAs have been established and not supplant existing municipal services with those funded through the collection of special assessments, provided that this policy should not be construed to limit the discretion of elected officials of the City of Seattle to determine whether, and at what level, specific municipal services should be provided as community needs and economic conditions dictate.

Section 3. If City programs are operated in facilities located within the geographic boundaries of a BIA, and these programs benefit from the improvements and services provided by the BIA, the City may choose to contribute to the BIA in cash, or in kind, an amount consistent with the assessments of similarly benefiting rate payers, recognizing that the City supports BIAs in many other ways.

Section 4. The City of Seattle will support BIAs through many departments, including the Department of Neighborhoods, the Office of Economic Development and the Department of Finance.

Section 5. The City of Seattle's Office of Economic Development (OED) shall be responsible for providing technical assistance to business districts requesting assistance in exploring the feasibility of forming a BIA; supporting and reviewing BIA project applications submitted to the City's Department of Neighborhoods (DON) for Neighborhood Matching Funds; attending monthly BIA ratepayer's meetings; organizing quarterly BIA meetings for BIA Executive Directors and City staff; and, providing technical assistance to existing BIAs on projects that strengthen the economic climate of the business district. The City of Seattle's Office of Economic Development shall coordinate its activities with the Department of Finance.

Section 6. The City of Seattle's Department of Finance shall be the City of Seattle's lead agency for the BIA Program, and shall be responsible for developing policies, establishing program direction, collecting revenues, administering contracts and accounts, attending monthly and quarterly BIA ratepayer's meetings, and coordinating the activities of the City of Seattle when working with the rate payers and contracted administrators of individual BIAs.

Section 7. Department of Finance shall investigate and prepare a report to Council and the Executive annually on the level of support provided by the City to the BIA program, and will recommend ways to better provide necessary support to BIAs to foster their success and make other recommendations to improve the program's operations.

Section 8. Whenever a BIA is disestablished as provided in RCW 35.87A.180, the City of Seattle may, as provided in RCW 35.87A.190, adopt an ordinance to:

A. Provide for the expenditure of all or a portion of any remaining special assessment funds for the disestablished BIA on services or improvements in the disestablished BIA area; and/or

B. Provide a refund of all or a portion of any remaining special assessment funds for the disestablished BIA to those who have paid their assessments fully, in proportion to the amounts paid; and/or

C. Transfer any or all of the remaining special assessment funds for the disestablished BIA to the City's General Fund if, in the opinion of the Director of Finance, that is the most practical action for the City of Seattle to take to "close-out" the BIA.

Section 9. Whenever a new BIA is established, it is the City of Seattle's intent to encourage the agency selected to manage the BIA to secure independent start-up funds. If the agency managing a BIA is unable to secure independent start-up funds, the Director of Finance may approve a short-term intrafund loan. The ability to provide a short-term loan would be predicated on the ability of the Business Improvement Areas Fund to maintain a positive balance.

Section 10. If it becomes necessary due to extraordinary economic conditions, an established BIA may request a short-term intrafund loan. The Director of Finance may approve a short-term intrafund loan. The ability to provide a short-term loan would be predicated on the ability of the Business Improvement Areas Fund to maintain a positive balance.

Section 11. It is the City of Seattle's policy to use modified accrual accounting for all BIA funds. Expenses and revenues will be recognized and recorded in the period they are incurred; in particular, care should be exercised at the end of each fiscal year to ensure that expenses and revenues are matched to the correct period.