CB 121291 — Version 1 https://webapi.legistar.com/v1/seattle/Matters/17374/Texts/18747 Screen Reader Users: Make sure settings include reading strikethrough and underline font attributes. The City of Seattle Ordinance / Council Bill / ..title An ordinance relating to Seattle Parks and Recreation; authorizing the Superintendent of Parks and Recreation to execute and record (as necessary) all instruments and agreements concerning the City-owned property associated with the redevelopment of the Lake City Community Center into a new community center, affordable housing, and a subterranean garage; superseding the requirements of Ordinance 118477 for the purposes of this ordinance; and ratifying and confirming certain prior acts. ..body Recitals: The former Lake City Community Center was an important resource for the Lake City neighborhood and a programming hub for the community before a 2023 fire required the building to be closed and demolished. The City of Seattle (City) plans to rebuild the community center as part of a new mixed-use facility (Facility) of about 178,000 square feet on and around the site of the former building. When construction of the new mixed-used development (Project) is completed, the Facility will contain approximately 111 units of affordable rental housing (for residents ranging between 30 percent and 60 percent of Area Median Income at initial occupancy) above a roughly 27,000 square foot community center featuring a gym, childcare facilities, and community-centered spaces, and one level of below grade parking to support all of the Facility uses. The City of Seattle’s Office of Housing (OH) and Seattle Parks and Recreation (SPR) issued a Request for Qualification to pre-qualify potential development teams and subsequently issued a Request for Proposals (RFP) on July 29, 2024, for the Project. Mercy Housing Northwest (Mercy) was selected by OH and SPR on April 14, 2025, to redevelop the site and construct Facility. SPR and Mercy then entered into an agreement setting out their respective roles and responsibilities related to Project funding and development (Development Agreement). The Development Agreement includes material terms of subsequent agreement and instruments SPR and Mercy will execute to carry out the Project. The Project will be located on a portion of the site commonly known as 12531 28th Avenue Northeast in the Lake City neighborhood of Seattle (Property), on City-owned property over which SPR has jurisdiction. The portion of the Property on which the Facility will be built will be a new parcel (Lease Property) subject to approval of a lot boundary adjustment by the City in its regulatory capacity. Upon approval and recordation of the lot boundary adjustment, SPR will first record a restrictive covenant (Covenant) requiring the Lease Property to contain a community center substantially in the form of Attachment 3 to this ordinance, then lease the Lease Property to a Mercy affiliate for 99 years (Ground Lease) for development and operation of the Facility. To facilitate financing of the Project and avoid uncertainty about title restrictions, SPR and Mercy have requested that King County release certain park-related restrictions that potentially apply to the Property and reinstate those restrictions on the portion of the Property outside the Lease Property, to preserve open space while allowing the development of the Facility. The Facility will be subdivided through a leasehold condominium consisting of two separate condominium units: the Residential Unit, containing the 111 affordable housing dwelling units, and 1 unrestricted residential property management unit, and the Community Center Unit, containing the community center. A Mercy affiliate will own the Residential Unit, and the City will own and operate through SPR the Community Center Unit. The condominium units, and the residential and recreational operation of those units are intended to be compatible uses that will be operated in one building with separate entrances. The City and Mercy have entered into an agreement setting out the Parties’ roles and responsibilities to fund, design, construct, and deliver the Project and detailing the Project parameters (Development Agreement). Under the Development Agreement, SPR is making payments to Mercy totaling no more than $38,000,000 in exchange for Mercy, through its affiliate and subcontractors, committing to building the Facility and conveying ownership to the City of the Community Center Unit at the completion of the Project. Under the terms of the Development Agreement, a condominium declaration will be recorded, and Mercy or its affiliate will convey the Community Center Unit to the City according to the terms of a Conveyance Agreement. Therefore, Be it ordained by The City of Seattle as follows: Section 1. The Development Agreement between The City of Seattle, by and through Seattle Parks and Recreation (SPR), and Mercy Housing Northwest (Mercy), a Washington non-profit organization, attached as Attachment 1, is recognized and adopted. Section 2. The Superintendent of Parks and Recreation or Superintendent’s designee (Superintendent), is authorized to accept and convey property rights related to the site commonly known as 12531 28th Avenue Northeast in the Lake City neighborhood of Seattle (Property) and execute and record (if and as Superintendent determines necessary) all instruments, agreements, and amendments necessary to carry out the terms of the Development Agreement, and implement the Project as defined therein, including but not limited to: A. A release of the restrictive covenant held by King County against the property in the form of Attachment 2 to this ordinance and subsequent conveyance of a new restrictive covenant to King County on the portions of the Property outside of the Lease Property, as defined in the Development Agreement; B. A restrictive covenant requiring that the Lease Property be used for a mixed-use facility containing a community center, attached to this ordinance as Attachment 3, subject to such amendments requested by Mercy Housing Northwest as the Superintendent determines consistent with this ordinance and in the best interest of the City; C. A 99-year ground lease for the Lease Property to an entity controlled by Mercy Housing Northwest for Project purposes as set out in the Development Agreement and under the terms set out in the term sheet attached to this ordinance as Attachment 4; D. A condominium declaration and associated documents to establish a condominium at the multi-use facility (Facility) for both housing and community center purposes; E. A conveyance agreement setting out the terms under which the Community Center Unit, as defined in the Development Agreement, will be transferred to the City; and F. Acceptance of the Community Center Unit by SPR and under SPR’s jurisdiction. Section 3. The City Council finds and declares that the redevelopment of the Lake City Community Center site to create a new mixed-use development comports with the policy goals of Ordinance 118477. Park and recreation usage will continue on the entirety of the Property after Project completion, as only air rights are being converted to non-park uses. Section 4. To the extent a court of competent jurisdiction finds Ordinance 118477 applies notwithstanding the finding in Section 3 of this ordinance, Ordinance 118477 is superseded for the Property. Section 5. Any act consistent with the authority of this ordinance taken prior to its effective date is ratified and confirmed. Attachments: Attachment 1 – Lake City Community Center Development Agreement Attachment 2 – Release of King County Restrictive Covenant (Draft) Attachment 3 – City Restrictive Covenant for Community Center (Draft) Attachment 4 – Ground Lease Term Sheet This ordinance shall take effect as provided by Seattle Municipal Code Sections 1.04.020 and 1.04.070. Passed by the City Council and signed in open session in authentication of its passage on /. President / of the City Council / on /. Katie B. Wilson, Mayor Attested on /. Lenné Dedman, City Clerk Seal