The Seattle City Council is exploring the use of eminent domain as a home foreclosure prevention tool.

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1 Governmental Affairs Reporter SEATTLE KingCounty REALTORS is involved in these issues on your behalf A quarterly report from your SEATTLE KingCounty REALTORS Fourth Quarter 2013: October - December SEATTLE: Eminent Domain The Seattle City Council is exploring the use of eminent domain as a home foreclosure prevention tool. In early-september, Nick Licata, Chair of the Seattle City Council's Housing, Human Services, Health and Culture Committee heard a set of foreclosure prevention strategies that included the use of eminent domain. Robert Hockett, Professor of Financial Law, Cornell Law School presented the study and recommended the following options: (1) The City could facilitate recourse to the Lease Swap strategy by its underwater mortgagors. The idea is for underwater home-owners in the same neighborhoods literally to swap residences under leasing contracts, and then file for bankruptcy under Chapter 13 to write-down their mortgage debt overhangs. (2) Eminent Domain strategy City would choose what plan would best suit the City s values and needs, Contents Land Use & Development 2-7 Annexations 7 In Other News 8-9 Political Affairs 9-11 RPAC Hill Day 12 bearing in mind that there are multiple ways to structure a plan, and multiple kinds of providers from whom to seek assistance in either designing a plan from scratch or evaluating plans offered by outside providers in response to a request for proposal (RFP). Local lawyers, financial professionals, and housing advocates, acting in a pro bono capacity, doubtless would be willing to assist, as again would the author of this Report. (3) Establish a municipal land bank, charged with the task of taking possession of tax-foreclosed properties and converting them to beneficial community use, and giving priority to returning recently loan-foreclosed mortgagors either to their own recent properties or to like properties, pursuant to leasing agreements with rent to own options embedded. Versions of these concepts have been or are being discussed in several cities including Las Vegas, NV, Richmond, CA, and Irvington, NJ. The Daily Real Estate News reports that Richmond, CA intends to identify homes that are underwater and first approach the owner with offers to buy the mortgage and then reduce the debt on the mortgage. Though Richmond hasn t deployed its plan yet, if the owners refuse to let the city buy the mortgage, the city maintains that it can use eminent domain to condemn the home and take ownership that way. The Federal Housing Finance Agency which oversees Fannie Mae and Freddie Mac has been vocal in its opposition to this use of eminent domain and has threatened to cease doing business in jurisdictions that adopt such polices. HUD told Congress that it is uncertain that any new mortgage created through eminent domain would qualify for FHA insurance. NAR's Board of Directors adopted a policy opposing the use by local governments of eminent domain to seize underwater mortgages. In its policy statement, NAR expressed concern that the use of eminent domain to restructure existing mortgage loan contracts would create great uncertainty for lenders and investors in the mortgage markets, resulting in increased costs of credit to borrowers seeking to become homeowners, and a contraction of credit in those communities that decide to take mortgages by eminent domain. SKCR is closely monitoring and engaged in the issue, in coordination with the mortgage community. While supportive of strategies that bring assistance to struggling homeowners, it is critical we guard against polices that would sharply reduce mortgage options for Seattle buyers including those seeking loan modifications. We have had initial discussions with Seattle policy makers and expect more focused council attention to the issue in early Protecting Your Business & The Clients You Serve To promote a free and independent market, SEATTLE KingCounty REALTORS actively engages in the political, legislative, legal and regulatory process in support of housing supply and affordability, economic vitality, private property rights, infrastructure and environmental protection.

2 GOVERNMENTAL AFFAIRS REPORTER Land Use & Development Regulations AUBURN: City Targets Unpermitted Conversions Of Homes To Student Rental Housing In response to expressions of concern separate, owner-occupied unit. The According to the new rules respecting from residents in the vicinity of code enforcement component begins in student rental housing: Green River Community College, the earnest on Jan. 1, The owner must obtain a rental city of Auburn has amended city code housing business license from the to allow enforcement attention on city, effective for one calendar year, homes that have been converted to to operate the housing student rental housing units without permits or other city oversight. Of particular concern are partitions of existing single family homes that may pose significant safety issues for student-residents (such as from wiring modifications that are not up to code), as well as issues involving garbage generation and collection, increased numbers of vehicles parking at or near the homes, and noise. The City Council's Planning and Community Development Committee, the Auburn Planning Commission and city staff worked for months to develop the ordinance passed on September 3rd to fix the problems cited by area neighbors of the homes. The new ordinance sets a Dec. 31, 2013 deadline for existing communal residences to become compliant with the new regulations, with no possibility for "grandfathering" in, preexisting, unpermitted, student/rental housing. By Dec. 31, property owners must also provide acceptable proof, for example, a driver's license, that they themselves are living at the student/ rental housing address, possibly in a According to the city s planning staff Green River Community College is willing to work with the city to share address lists with the city so that code enforcement officers can identify recurring identical addresses in order to determine if there are properties that haven't registered through the city s program. In anticipation of the deadlines in the new ordinance the city mailed information about the changes to property owners in time for them to take corrective action before the October beginning of the school year at Green River Community College. The information included the URL for a city website that provides: 1. A rental housing application form 2. A copy of the new ordinance 3. A conditional-use permit application for property owners who plan to convert their single family residences to student/rental housing, and 4. Eventually, a list of frequentlyasked questions. In addition, according to city staff, property owners and residents may post questions to a new city address: rentals@auburnwa.gov. 2. An inspection is required annually to obtain a rental housing business license 3. Anyone under 18 living in such a rental unit is subject to the city's curfew regulations 4. The number of people that may live in such rental units is four, including the owner occupied unit. 5. The owner or manager of the rental housing must allow the city, upon the issuance of a warrant, to inspect rental housing residential units. 6. The owner / landlord must provide the city with information, including the total number of bedrooms in the rental unit, the total number of occupants, proof that structural additions and modifications are properly permitted and inspected, that garbage and recycling will be properly managed, that adequate off-street parking has been provided for tenants, and that noise and other public nuisances are monitored and controlled. AUBURN: City Considering Changes To Tax Break Rules To Encourage More Housing In 2003 the city of Auburn adopted a multi-family property tax exemption. In order to obtain the exemption a developer is required to invest a minimum of $200,000 per unit. The amount was based on a countywide study that included downtown Bellevue and downtown Seattle, and was set high to avoid construction of non-owner occupied housing with marginal longevity. But the $200,000 minimum threshold per unit was set so high that no project in the city of Auburn has ever qualified for the exemption. Now, two proposed developments in the downtown have the city rethinking its policy: The first, Landmark Development, is to break ground in October on a fivestory, 126-unit, mixed-use project called Trek Apartments on the site of the former Cavanaugh Block (named after the Cavanaugh that owned a hardware store on the site for many years.) The second, Teutsch Partners LLC, involves the possible acquisition of the last remaining city-owned property on the downtown catalyst blocks. Teutsch s proposal is to develop market rate projects downtown for senior housing, or for apartments. continued next page... 2 SEATTLE KingCounty REALTORS Governmental Affairs

3 ...continued from page 2 Because neither project would meet the city's $200,000 threshold, both developers asked the city to lower the minimum investment per unit to $130,000. According to Sound Publishing, Bret Jacobsen, one of the principals of the Landmark Development Group, explained what getting the tax abatement would mean. "What this tax abatement really does is allow us to build a better product than we might otherwise be able to bring to the table," Jacobsen said. He said that when Landmark developed property in the city of Lakewood years ago, the tax abatement the city offered allowed his company to "bring a product to the market that is probably achieving in excess of 30% better rent than anything in the marketplace. It allowed us to better Fourth Quarter 2013 the product type. And that's exactly what we're doing here." The city also entertained changing the deadline for applying for the exemption to a point prior to the issuance of building permits because city staffers say that a project is fairly set by the building permit submittal stage, and applications for the property tax exemption could be reviewed in parallel with the building permit review. COVINGTON: Plans For "Hawk Property" Move Forward The city of Covington is moving forward with efforts to facilitate the development of the Hawk Property a 210 acre site located along State Route 18 near the 256 th street exit, and situated mostly within the Covington City Limits. The property was formerly used for a mining and excavation facility. The Hawk family is in the process of selling the property to Oakpointe LLC, a partnership between homebuilder Oakpointe Communities and Yarrow Bay Holdings. The city is particularly interested in accommodating new businesses on the site because many of the potential businesses which the city and residents want can t find enough space in Covington s downtown core. Late last year the County Council declined to bring an adjacent property known as the Northern Notch property into the urban growth area. As a result, the Northern Notch property is unlikely to be developed in the near term. In response, the Covington Council authorized city staff to begin developing a subarea plan for the Hawk property site in order to provide enough room for business, as well as a mix of homes the city doesn t have such as apartments and townhouses. Since the start of the year the city of Covington has worked with a consultant to host public meetings in order to develop the subarea plan for the Hawk property. A public forum was convened March 25 which included more than three dozen residents who came up with four or five different plans, according to city staffer Richard Hart who said there were a number of common themes in all the plans. Hart said the staff is attempting to complete this process in time for the matter to go to City Council in December or January. In the meantime, a final subarea and EIS will be issued. City staffers say they hope to have a development agreement in-place by March of 2014 that will identify what will happen on the property for the next 15 years. Drivers may well see new businesses go up along the highway before the end of It is possible that companies such as Lowe s and Target, which have expressed interest in locating in Covington, as well as other businesses and restaurants which are family friendly could build on the Hawk Property to fill a substantial gap in the market for the region both Covington and neighboring Maple Valley have a number of families, both with more than 30 percent of the population under 18. This rendering shows an overhead view of the Hawk Property off Southeast 256 th Street near state Route 18 in Covington. The 210-acre site could have businesses and a mix of residences. Protecting Your Real Estate Business & The Clients You Serve 3

4 GOVERNMENTAL AFFAIRS REPORTER FEMA: Green River Flood Maps Delayed Until At Least 2018 The Federal Emergency Management Agency (FEMA) has announced that the publication of new flood maps for the Green River Valley is at least five years away. FEMA made the announcement in mid-september at a meeting held at the Regional Justice Center in Kent. The flood maps are important for administration of the National Flood Insurance Program, because they identify which properties are in the floodway, or in the floodplain. The update of the flood maps is of concern to residents and property owners because the maps help define specialrisk areas that may affect insurance rates or building regulations. How new federal flood maps could impact Green River Valley homes and businesses was a primary focus residents who met with the members of the King County Flood Control District Executive Committee and FEMA representatives at the September meeting. According to Reagan Dunn, who chairs the King County Flood Control District Board of Supervisors, These types of meetings are vitally important to inform the public about potential flooding issues that may arise. A number of years ago, FEMA issued draft flood area maps that indicated there were more areas of the valley within the floodplain. These draft maps left some in the valley under the impression that the adoption of the final maps by FEMA was imminent, which is not the case. Other highlights of the meeting included a presentation by King County Water and Land Resources Division on projects either already constructed or planned in the valley that will reduce or eliminate potential flooding and serve to reduce the amount of areas that will be contained within the FEMA flood maps. We heard from FEMA that their ability to provide insurance maps for our region is complicated by a variety of technical, financial, and political constraints at the national level, said Mark Isaacson, King County Water and Land Resources Division director. KING COUNTY Flood Control District: WRIA Gets $1.2 Million For Water Quality Projects On September 9, 2013 the King County Council sitting as the King County Flood Control District Board of Supervisors approved $1.2 million in Cooperative Watershed Management Grant funding for Water Resource Inventory Area #9 (WRIA 9) for projects intended to help boost the clean water and salmon recovery efforts of local organizations. WRIA 9 includes the Green/Duwamish and Central Puget Sound watersheds. The cities that are part of WRIA 9 include: Algona, Auburn, Black Diamond, Burien, Covington, Des Moines, Enumclaw, Federal Way, Kent, Maple Valley, Normandy Park, Renton, SeaTac, Seattle and Tukwila. King County Councilmember Reagan Dunn, who chairs the Flood Control District Board of Supervisors, said, It is vitally important to protect our local water resources and habitats. I am pleased that the Flood Control District can partner with the 16 local governments and other agencies inside WRIA 9 and play a key role in helping to fund these projects. The grants, which also leveraged an additional $1.25 million for WRIA 9, help it carry out salmon conservation projects for Endangered Species Actlisted species according to annual priorities set by the WRIA Forum. Only projects that have been scientifically vetted, and ranked competitively by their respective WRIA Forum, are candidates for funding. Cities, towns, special districts, public schools, King County, federally recognized tribes and non-profits are eligible to apply for the grants. The grant allocation process is administered by King County s Water and Land Resources Division in the Department of Natural Resources and Parks. The Flood Control District executive committee oversees project selections. The Flood Control District board will pursue on-going funding for future watershed management actions given the relationship between flood control and stormwater projects and cooperative watershed management. Green/Duwamish and Central Puget Sound Watershed Map 4 SEATTLE KingCounty REALTORS Governmental Affairs

5 Fourth Quarter 2013 KING COUNTY & SEATTLE: TDR Program To Provide $16 Million In Credits On September 16, 2013, King County and the City of Seattle announced they have reached an agreement that will facilitate the transfer of $16 million in development credits from rural farms and forests to South Lake Union and downtown Seattle. According to King County Executive Dow Constantine and Seattle Mayor Mike McGinn who announced the agreement, up to 25,000 acres of King County s farms and forests will receive protection from development under the TDR agreement involving Transfers of Development Rights. Under the agreement between the County and the city of Seattle, developers will purchase 800 urban density credits worth $16 million as they develop new projects. These credits will result in payments to rural land owners who agree to sell development rights on their rural lands in order to protect 2,000 acres of farmland and 23,000 acres of forestland. Priority for use of the funds would be protection of active farms that supply Seattle s farmers markets and restaurants. In exchange for Seattle s acceptance of rural development rights, King County will partner with the City on infrastructure investments and public improvements that will support the resulting new growth and increased density. For up to 25 years the County will share with the City 17.4% percent of the new property tax revenue generated by new development in South Lake Union and Downtown, to help pay for an estimated $16 million of Green Street improvements on Thomas and Eighth Streets; bike, pedestrian, and transit improvements on Harrison Street, Denny Street, and Third Avenue; and a new Community Center. The agreement simultaneously advances King County s and Seattle s climate change goals by reducing vehicle miles travelled to and from 800 rural homes. Greenhouse gas emissions are expected to be reduced by an estimated 173,000 metric tons (of carbon dioxide), according to a study conducted by The Sightline Institute. In addition, by supporting additional development in South Lake Union the region s largest urban center the County reduces the cost of providing water, sewer and police protection to remote rural areas. The partnership agreement between Seattle and the County is according to Sound Publishing media reports the first under a 2011 state law that enables cities and counties to partner on a program that links transfers of development rights (TDR) with a form of tax increment financing. This program is known as the Landscape Conservation and Local Infrastructure Program (LCLIP). Environmental organizations including Forterra have characterized the Landscape Conservation and Local Infrastructure Program as a game changer for our region s lands and communities. Additional information regarding King County s Transfer of Development Rights (TDR) Program is available at: CITY OF KIRKLAND: Development Services Study Kirkland has begun to implement a series of consultant recommendations designed to improve the city's Development Services. (Note: story is from the City's website) Here's a summary of the recommendations: 1. Performance Standards/Plan Review Timelines The recommendations focused on adopting and implementing faster permit review times and creating mechanism for tracking performance. An aggressive expedited review program was also recommended that would be funded by fees paid for the expedited review. 2. Organization The consultant did not recommend a major reorganization at this time,however, they did recommend that customer service for all development services in all three departments be provided from one centralized counter. a continued next page... Protecting Your Real Estate Business & The Clients You Serve 5

6 GOVERNMENTAL AFFAIRS REPORTER...continued from page 5 KIRKLAND: Studying TDR's For Totem Lake Urban Center 3. Staffing Adequate staffing needed to meet workload demands was recommended in response to an increasing trend in permit activity. A combination of contractors and new staff were recommended to meet permit workloads that would be funded by the accompanying increased development fee revenue. 4. Resources/Budgets/Fees A comprehensive update of the development services cost of service and fee study was recommended including development of a staffing model that responds to workload and revenue trends. 5. Project Managers The formalization of a project manager system was recommended to provide better continuity in permit process monitoring. 6. Policies and Regulations The consultants recommended streamlining the update process and products associated with the Comprehensive Plan and Zoning Code to improve ease of use and assure consistency. 7. Technology There is significant opportunity for greater use of technology to improve customer service and streamline processes. Customers today expect and will use online applications and resource assistance. The city of Kirkland is studying the creation of a Transfer of Development Rights (TDR) program within the Totem Lake Urban Center. Totem Lake is a designated Urban Center: an area designed to support higher levels and densities of population, housing, employment, and activity. Existing plans for Totem Lake support transformation of the business district and neighborhood into a vital urban center, making it a home to higher levels of new residents and jobs. The city is studying the integration of regional TDR (transfer of development rights from "sending areas" rural and resource areas outside of the city) to the "receiving area", the Totem Lake Urban Center. The study will evaluate the demand and potential for increased development in Totem Lake, and study the feasibility of financing programs that come with TDR to fund amenities and improvements in Totem Lake. Under a TDR program, landowners are paid the development value of their property, while retaining the resource uses (such as farming and timber). When the development rights are removed from the parcel, a conservation easement is placed on the land, permanently protecting it from development. This preserves the rural character and open space. Developers who purchase these rights or "credits" then receive bonuses, such as additional height, residential units or square footage, to use in areas determined to be more suitable for growth. Recently passed legislation, the Landscape Conservation and Local Infrastructure Program (LCLIP) allows cities to gain access to financing from increases in property values for revitalizing and redeveloping areas that accept these development credits. These funds could then help to provide the infrastructure and amenities needed to support increased growth in Totem Lake. TDR programs currently exist in Seattle, Bellevue, Redmond, Issaquah, and Sammamish. 6 SEATTLE KingCounty REALTORS Governmental Affairs

7 Fourth Quarter 2013 RENTON: Alleys Code Interpretation Issue Resolved The city of Renton has issued a new, updated code interpretation that has resolved housing industry concerns about the possibility that the city might impose requirements alley requirements on new home construction that could reduce the number of homes that could be built on parcels, and raise the cost of new housing in the city. The code currently provides, Alley access is the preferred street pattern except for properties in the Residential Low Density land use designation Prior to approval of a plat without alley access, it shall be determined through an evaluation of alley layout that the use of alley(s) is not feasible. The word preference caused concern because in the absence of a requirement builders wanted more flexibility in their designs. Developers and members of the Master Builders Association of King and Snohomish Counties challenged the city s preference because they would prefer to build homes with front access through a driveway, instead of through an alley. Adding alleys to a development reduces the amount of developable land, is inconsistent with homebuyer preferences and increases impervious surfaces in the developments. To address the industry s concerns, the city proposed several new interpretations, including the following: 1. Although the code includes alleys in the R-4 zoning, the city has never required them for that zone because it creates a significant burden for the developer on lots that size, so the city will take that zone out of the requirement. 2. Alleys will only be required where they currently exist and only for subdivisions with interior lots. 3. There would be a threshold of more than six dwelling units per acre before the alley access is triggered; however, alleys will be required at any project that goes for maximum density. 4. No alleys required in any short plat (nine lots or fewer), if the topography is too steep or if the environmental impacts of having alleys has a greater negative effect than not having alleys. Landuse attorney Nancy Rogers, who represents Henley Homes the builder that first challenged the interpretation this year on an open, 22-acre parcel of land in the city requested further clarification, especially regarding the number of homes on an acre, and the topographic concerns. 5. Generally speaking, alleys will now be required in higher-density areas with eight homes per acre. The larger issues of whether to allow alleys will come up again next year during the city s code update, although according to media reports many council members said they don t think alleys are a good idea for reasons including safety, and because it is not what people want. Annexations MAPLE VALLEY: Donut Hole Annexation Approved Earlier this year the Legislature passed Senate Bill 5417 which amended state law to allow cities to annex larger unincorporated urban areas that are wholly contained within existing city limits. As a result, the city of Maple Valley which was the leading advocate for the change in state law has pushed hard to annex into the city the 154 county-owned acres known commonly as the Donut Hole. In early September both the Maple Valley City Council and the King County Council independently gave unanimous approval to an interlocal agreement between the county and the city allowing the city to annex the county-owned Donut Hole. The Donut Hole is unincorporated land within the urban growth boundary off Kent-Kangley Road Southeast and Southeast 228 th Street that is home to nine holes of Elk Run Golf Course, a stand of trees and the county s 13-acre roads maintenance facility. At the September 9, 2013, Maple Valley City Council meeting, Maple Valley Public Works Director Steve Clark said the on-going issue of the Donut Hole has been a point of concern for the city since its incorporation. It (the interlocal agreement) meets your (the council s) goal of getting the annexation done before the end of this year, said Clark. Under the terms of the interlocal agreement between the city and the county, Maple Valley will assume control of the area, while enabling the County to continue to operate the King County Department of Transportation s roads maintenance facility that is located on the property until the county is able to relocate the facility to another property. The city plans to rezone the property as part of the 2014 comprehensive plan update. The property is currently zoned for residential development. The Tahoma School District is in the process of buying 35 acres in the Donut Hole which the District wants to use to build a new Tahoma High School. Protecting Your Real Estate Business & The Clients You Serve 7

8 GOVERNMENTAL AFFAIRS REPORTER In Other News MASTER BUILDERS ASSOCIATION: New Executive Director Shannon Affholter Shannon Affholter has been selected as the new Executive Director of the Master Builders Association of King and Snohomish Counties. He started work November 5, 2013 and succeeds interim Executive Director Ed Youmans. Affholter was a member of the Everett City Council and stepped down from his City Council seat when he began work with the Master Builders Association. Affholter also served as the vice president of business and economic development for the Economic Alliance Snohomish County, which is based in Everett. New Executive Director Josh Brown The Puget Sound Regional Council s Executive Board has announced that Kitsap County Commissioner Josh Brown will become the new Executive Director of the Puget Sound Regional Council. He will start work January 2, Brown was selected after a nationwide search to succeed Bob Drewel, who is retiring at the end of the year. "Josh brings the perfect mix of energy, experience, and commitment to regional collaboration to the role of PSRC executive director," said Pierce County Executive Pat McCarthy, PSRC President. "He is deeply familiar with all aspects of PSRC and has shown outstanding ability to bring people together on transportation, growth, and economic development issues." McCarthy chaired the Executive Director search committee, which included 11 other PSRC board members representing the region's counties, cities, ports, and transportation agencies. Brown was selected from a group of 115 candidates applying for the job. "The challenges confronting our region from economic competiveness to protecting our quality of life can only be solved with collaboration and partnerships. I am excited at the opportunity to work with the leaders of our region as PSRC's Executive Director," said Brown. The PSRC coordinates regional growth, transportation and economic development planning within King, Pierce, Snohomish and Kitsap counties. The agency selects projects to receive federal transportation funding and is a key resource for data and forecasts on population, transportation, and the economy. PSRC is also the lead regional economic development planning organization and home to the Prosperity Partnership. Brown is the senior member of the Kitsap County Board of Commissioners, representing the Central Kitsap District which includes the unincorporated communities of Silverdale, Tracyton, Seabeck, Illahee, Brownsville, Crosby, Holly, Rocky Point, and the majority of the residents in the City of Bremerton. He has previously served as PSRC President, and as a member of PSRC's Transportation, Growth Management, and Economic Development District boards. He attended the University of California, Berkeley, earning a degree in Interdisciplinary Studies and a minor in City and Regional Planning. Prior to being elected as Kitsap County Commissioner, Brown worked as a commercial real estate broker for five years. Born and raised in the Puget Sound region, he is the son of a Puget Sound Naval Shipyard worker and graduated from North Kitsap High School in Poulsbo. RENTON: City Moving Forward With Plans For New Aerospace Training Center The city of Renton has announced its intention to build a new Central Sound Aerospace Training Center at the Renton Municipal Airport. The City plans to build and own the building, but find a partner within the industry to run the center. The facility will be located on property at the southwest corner of the airport, and will be funded at least in part with $5 million that was approved earlier this year by the State Legislature. The project is expected to cost $12.5 million, and the city is hopeful that the legislature will cover 80% of the total cost of the project. In the meantime, with only $7.5 million available for the project, an initial 10,850 square foot facility is being considered. If the remainder of the $12.5 million is secured, the project could be expanded to 18,900 square feet. If that happens, the project could include not only two classrooms, two lab bays and 60 parking spaces, but also the addition of a third bay for hands-on lab work. Work on the project could begin this coming summer and be completed in ten months, in time for a July 2015 opening. 8 SEATTLE KingCounty REALTORS Governmental Affairs

9 Fourth Quarter 2013 SEATAC: City To Obtain Fire Services From Kent Regional Fire Authority The SeaTac City Council has reached a 20-year agreement with the Kent Regional Fire Authority (RFA) for the RFA to provide fire services to the 27,000 residents of SeaTac beginning in January at a cost to the city of SeaTac of approximately $9 million annually. SeaTac could end the 20- year contract after the first five years but must give two-years notice to end it. Fire trucks and stations in SeaTac will keep the SeaTac name. SeaTac has contracted with the RFA since 2011 for chief administrative, emergency management, fire prevention, fire investigation and training services, with Jim Schneider serving as the RFA and SeaTac Fire Chief for the past two years. According to media reports, Kent RFA Fire Chief Jim Schneider said, What's important for us is SeaTac contracted for services. It doesn't cost the RFA a penny." The RFA serves about 119,000 Kent residents, 17,760 Covington residents and 6,100 unincorporated King County residents who used to be part of Fire District 37. Voters in Kent, Covington and Fire District 37 approved the formation of the RFA in The formation of the Regional Fire District allowed the ELECTIONS In 2013 SKCR granted 68 endorsements to local candidates in the general election. Fifty-three (53) of those SKCRendorsed candidates were successful in their elections. In addition, SKCR strongly endorsed the Tahoma School District s Bond Measure, which passed with nearly 70% approval. Thirty (30) SKCR members volunteered in conducting candidate interviews. respective cities to divert their existing property tax revenues to other general fund purposes, while also giving the new RFA its own new taxing authority, as well as the authority to levy a new fire benefit charge on property owners. Voters approved the RFA for six years, which means officials must seek voter approval again in SeaTac's 44 firefighters will become part of the RFA, which has more than 200 employees, including about 170 firefighters. That means firefighters who work in SeaTac might end up working in Kent and that those now working in Kent could end up at SeaTac stations. Schneider said more fire departments could merge in the future. Political Affairs SEATTLE Elections November's general election represents a sea change for city of Seattle politics and governance. While the Mayor's race captured the lion's share of attention and SKCRsupported challenger Ed Murray won, the passage of District Elections and Councilmember Richard Conlin's loss to a challenger with little name recognition is an important shift. "It's hard for city fire departments to survive with all of the property tax restrictions," he said. "I think someday more will join together. Then you can have one chief, one fire marshal. You come together for economy of scale." According to Sound Publishing media reports, Kent is part of a firefighting training consortium that includes SeaTac, Tukwila, Maple Valley Fire and Life Safety and Burien/North Highline. The agencies combine training resources to reduce costs by cutting redundancy. They train at the Kent facility at th Ave. S.E. "There are more than 450 firefighters training at one facility," Schneider said. SEATTLE KingCounty REALTORS enhances the ability of our members to conduct business successfully through effective legislative advocacy. Protecting Your Real Estate Business & The Clients You Serve 9

10 GOVERNMENTAL AFFAIRS REPORTER SEATTLE Mayor's Race Four years ago, Mike McGinn was elected in a three-way primary with incumbent Greg Nickels and telecommunications executive Joe Mallahan. Incumbent Nickels never made it through the primary and Mike McGinn used a grassroots campaign to overcome Mallahan's campaign budget and success in October opinion polls. This year, State Senate Democratic Leader Ed Murray survived an eightway primary to challenge McGinn in the General Election. Throughout the race, McGinn and Murray competed to be more progressive than the other. Despite being the incumbent mayor, McGinn ran as an outsider. McGinn faced increasingly poor polling results. Murray ran as a regional leader who would seek to collaborate with the Governor and other state leaders on regional issues. Murray prevailed by a wide margin. photo by Komonews.com SEATTLE Councilmember Richard Conlin's Defeat Richard Conlin, a longtime, progressive Seattle City Councilmember supported by SKCR, was defeated by challenger Socialist candidate Kshama Sawant. Sawant initially had very little name recognition and a small campaign budget. On election night and in the first week that followed the election, Conlin had been declared the winner by a slim margin. During the days that followed, late votes accrued to Sawant. By Friday, November 15, Sawant s lead had grown to 1,640 votes and Conlin conceded. Sawant campaigned on a $15 minimum wage and pledged to introduce legislation as soon as she is sworn in. SEATTLE District Elections Seattle voters chose to shift City Council elections from nine atlarge/city-wide positions to seven geographic district positions and two at-large positions. SKCR did not take a position on the measure, believing that this was an issue best left to the voters. Many were surprised by the measure's overwhelming margin of victory: 65.91% to 34.09%. The measure requires the election of seven city council members by district and two from the city at-large. Council members elected in 2013 and at-large council members elected in 2015 will serve 2-year terms. Thereafter, all council members will serve 4-year terms with district positions running together and at-large positions two years later. Districts will make for less expensive campaigns, benefiting neighborhood activists and/or state legislators. The overall progressive culture of the Council is unlikely to change. Overlaying the new district map on current council members' residences, it appears three districts are home to two council members each. Current council members must choose to run against a fellow councilmember, run for one of the two at-large positions, or not seek reelection. While districts will be phased in over the next 2-4 years, effects of the vote are immediate. During recent Council budget deliberations, councilmembers began to debate budget line items in a manner that might be characterized as districtinfluenced. Moving forward, political organizing will take place at the district level for issues in addition to candidates. City Council debate will become more inclusive of neighborhoodlevel and neighborhood-specific issues. With seven of nine councilmembers more focused on their districts, the voice of the council may become more fractionalized, likely concentrating increased power in the mayor's office. Seattle District Map 10 SEATTLE KingCounty REALTORS Governmental Affairs

11 Fourth Quarter 2013 BELLEVUE Races SKCR-supported candidate and REALTOR Kevin Wallace won his reelection bid against challenger Steve Kasner. The race was tight, with the margin of victory within 200 votes. Bellevue is important for REALTORS because it is an economic powerhouse in the region and a highly desirable location for homebuyers. Bellevue has been successful because it has provided a pro-business climate for both mature and start-up businesses, a high quality of life for residents, and a strong school system. SKCR was eager to assist in Wallace's reelection. Since being elected to office four years ago, Wallace has played a critical role in the leadership of the Bellevue City Council. He has orchestrated a series of votes that have enhanced the city's economic vitality and residential quality of life, while avoiding tax increases. His leadership helped ensure that the city of Bellevue was able to weather the recession and preserve the economic base without making cuts to core functions (police, fire, etc.). SKCR supporter-former mayor and longtime councilmember Don Davidson failed to make it out of the primary. Lynne Robinson, a former chair of the Bellevue Parks and Community Services Board and former chair of the city Network on Aging won in the general election. SEATAC Deputy Mayor Gregerson To Seek Appointment To Legislature SeaTac Deputy Mayor Mia Gregerson has announced she will seek appointment to the state House of Representatives to replace State Rep. Dave Upthegrove who was successful in his November General Election bid to be elected to the King County Council. Upthegrove, endorsed by SKCR in his election to the County Council, will replace Councilmember Julia Patterson as the 5th district s representative on the King County Council. Upthegrove had one year left in his two-year term in the state House of Representatives. With Rep. Upthegrove winning the position on the King County Council that is being vacated by Julia Patterson, he must give up his legislative seat. The Precinct Committee Officers of the 33 rd Legislative District Democrats organization can forward three possible appointments to the county council, which would then choose Upthegrove s replacement in the Legislature. Gregerson has said she would run for re-election to the Legislature in 2014 if she is selected by the County Council to replace Upthegrove. Gregerson says she has lived in the SeaTac area with her family for more than 35 years: Her husband Scott works in Burien and their daughter, Alexis, is returning to the University of Washington as a sophomore this fall. TAHOMA SCHOOL DISTRICT: Voters Give Strong Approval To $195 Million Bond Measure Maple Valley area voters in the Tahoma School District gave a big thumbs-up to a new $195 million bond measure in the November 5 general election. The bond measure, which was strongly endorsed by SEATTLE KingCounty REALTORS, passed with nearly 70% approval. The 20-year bonds will fund the renovation, upgrade and new construction of school facilities, including: A new 9 th to 12 th grade high school with gymnasium, performance and dining facilities, new playfields and athletic fields, site access road and parking areas; Major and minor renovations to existing high school and junior high school buildings; and Renovations, additions and other capital improvements at Tahoma Middle School, Cedar River Middle School, Lake Wilderness Elementary School, Glacier Park Elementary School, Shadow Lake Elementary School and Rock Creek Elementary School Protecting Your Real Estate Business & The Clients You Serve 11

12 REALTORS Political Action Committee (RPAC) NEW! An easy, quick way to protect your business. introducing a secure, online REALTOR PAC (RPAC) investment site making it easier than ever for busy REALTORS to protect their business. We can t all go to Washington DC, the state Capital or even our City Halls while government leaders are making decisions that affect our industry; but while we are busy, RPAC can fight for us and for our clients. Please make an investment of $50, $100 or $500 to ensure that when government acts there is no harm to real estate, no new taxes and no added, unnecessary complications to the real estate transaction. Invest in RPAC today online at SEATTLE KingCounty REALTORS raised $79,240 for RPAC in 2013, which signifies a 90 percent increase over last year but our work is far from over. RPAC is not funded by REALTOR dues only through your voluntary investments Please invest in RPAC at Use Your REALTOR Voice! Hill Day January 23, 2014 Join real estate professionals from King County and across the state on the hill to advocate for a more productive business environment. REALTOR members will be meeting directly with state legislators to let them know what legislative issues are important to their business, consumers and the housing sector. EVENT LOCATION Red Lion Hotel, 2300 Evergreen Park Drive SW, Olympia, WA ONLINE RESERVATIONS Registrations through Washington REALTORS will be open until Tuesday, January 14, For more information and to register go to org/news-events/leg-day-2014/. G o v e r n m e n t a l & Public Affairs Leadership Bill O'Brien, 2013 VP Governmental & Public Affairs williamo@johnlscott.com Patti Hill, 2013 VP-Elect Governmental & Public Affairs pattih@windermere.com David Crowell, Director Governmental & Public Affairs dcrowell@nwrealtor.com Sam Pace, Housing Specialist sam@sampace.com Randy Bannecker, Housing Specialist randy@bannecker.com Cheri Brennan, Public Relations Specialist cheri4pr@sprynet.com Contact David Crowell at (425) if there are any local legislative issues that need SKCR s attention. GOVERNMENTAL & PUBLIC AFFAIRS Our objective is to enhance REALTOR profitability by improving the regulatory climate and the political support for housing affordability, quality of life, private property rights and economic vitality. The REALTOR Governmental Affairs Reporter is a quarterly publication produced by the SEATTLE KingCounty REALTORS to inform members about current issues and successes within your Governmental Affairs Department. Our next publication will be released in April SEATTLE KingCounty REALTORS SE 32 nd Street, Suite # 100, Bellevue, WA realtor@nwrealtor.com nwrealtor.com