SENATE 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

Senate Committee on Ways and Means

Senate Hearing Date(s):February 22, 1990; February 23, 1990

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bluechel, Cantu, Fleming, Johnson, Lee, Moore, Owen, Smith, Williams.

Senate Staff:Bill Freund (786-7715)

                  February 24, 1990

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 23, 1990

BACKGROUND:

The 1982 Legislature authorized bonds for construction of a state convention and trade center.  Issuance of the bonds was subject to appropriation by the Legislature.  From time to time the Legislature has made appropriations for acquisition of land and construction of the center.  The total bonds authorized is $167.8 million of which $32 million is unissued.

The 1988 Legislature appropriated $10.4 million 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 $8.95 million. 

Prior to issuing a conditional use permit for convention center construction, the Seattle City Council in 1984 imposed a number of housing mitigation measures upon the center.  These requirements were satisfied when the center provided $2.2 million for four low-income housing projects.  The board has determined that further convention center related development will result in an additional loss of low-income housing and that the total impact is $3.0 million.

The convention center is currently involved in six lawsuits involving the contractor and the state and also subcontractors, architects and engineers.  The convention center indicates a need for funds in reserve to cover litigation expenses and to settle some claims.  Reserves have been depleted by the $2.2 million expended for housing mitigation which were unanticipated.  If the Legislature authorized the issuance of bonds for housing mitigation, then reserves could be replenished.

SUMMARY:

The purpose for which bonds may be issued is expanded to include development of low-income housing to mitigate the effects of construction and operation of the convention center on the availability of low income housing in Seattle.  The appropriation authority for the McKay land acquisition is reduced from $10.4 million to $8.95 million.  In addition, a maximum of $3 million is appropriated for housing mitigation measures either anticipated or previously undertaken by the convention center.

The convention center board is required to determine that the housing provided will be owned and operated by a nonprofit organization dedicated to low-income housing.

Appropriation:    Net $1.6 million from convention and trade center account

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Egil "Bud" Krogh, corporate counsel; Del Clarke, consulting auditor, Convention and Trade Center