HOUSE BILL REPORT

HB 2988

BYRepresentatives Locke, Prince, Ferguson, H. Sommers, Anderson, Wineberry and Nelson

Funding low-income housing near the state convention and trade center.

House Committe on Capital Facilities & Financing

Majority Report:  Do pass.  (11)

      Signed by Representatives H. Sommers, Chair; Rasmussen, Vice Chair; Schoon, Ranking Republican Member; Betrozoff, Bowman, Fraser, Jacobsen, Peery, Rector, Wang and Winsley.

Minority Report:  Do not pass.  (1)

      Signed by Representative Braddock.

House Staff:Susan Nakagawa (786-7145)

AS PASSED HOUSE FEBRUARY 13, 1990

BACKGROUND:

During the 1988 legislative session, $10.4 million was appropriated to the Washington State Convention and Trade Center for purchase of property adjacent to the center known as the McKay parcel.  The McKay parcel was purchased by the convention center for $8.9 million.  Ultimately, the convention center anticipates reselling the McKay parcel; acquisition was intended to secure the property for future convention center related development if needed.  It is unclear when and at what price the convention center will ultimately resell the McKay property.

Prior to issuing a conditional use permit for convention center construction, the Seattle City Council imposed a number of housing mitigation measures upon the center.  These requirements were ultimately satisfied when the center provided $2.2 million for various low-income housing projects.

SUMMARY:

The appropriation authority for the McKay land acquisition is adjusted to reflect the actual purchase price of $8.9 million.  In addition, a maximum of $3 million is authorized for housing mitigation measures either anticipated or previously undertaken by the convention center.  This results in an increase in total appropriation authority of $1.6 million, and makes an additional $800,000 available for low-income housing development.  Low-income housing is defined.  The convention center board is required to determine that the housing provided will be owned and operated by a non-profit organization dedicated to low-income housing.  Low-income housing must also be related to the construction and operation of the convention center.

House Committee ‑ Testified For:    Phyllis Lamphere, Board of Directors, Washington State Convention and Trade Center; Nancy Smith, Seattle Housing Resources Group and Bud Krogh, Attorney, Washington State Convention and Trade Center.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This bill is needed to replenish contingency reserves the center used to meet low-income housing requirements imposed by the city of Seattle.  The appropriation will provide additional low-income housing and will help mitigate the effects of the center on downtown housing.  The increased appropriation authority will not require the issuance of additional general obligation bonds.

House Committee - Testimony Against:      None.