2006 Seattle Elections
General Elections Voters' Guide
Initiative 91 - Below Value Leases to Sports Teams - Ballot Title
CITY OF SEATTLE
Seattle Initiative Measure Number 91 concerns property, goods, and services Seattle provides to for-profit professional sports.
If enacted the measure would require that for-profit professional sports organizations pay the City at least "fair value" for goods, services, real property, or facilities the City provides or leases to them, either directly or through another public entity or a non-profit organization. The measure defines "fair value," based in part on the rate of return for 30-year U.S. Treasury Bonds. Any Seattle resident would have standing to file a lawsuit challenging City acts that allegedly violated the measure.
Should this measure be enacted into law?
City Attorney's explanatory statement for Seattle Initiative 91
The City Attorney has established the following explanatory statement for Seattle Initiative 91:
1. The law as it presently exists
The Seattle Municipal Code contains no requirement that the City receive any specific amount or return for goods, services, real property or facilities that it provides or leases to for-profit professional sports organizations.
2. The effect of the initiative if approved
A new provision would be added to the municipal code, requiring that for-profit professional sports organizations pay the City at or above "fair value" for goods, services, real property or facilities that the City provides or leases to them.
Other public entities or non-profit organizations would also be required to pay the City at or above "fair value" for goods, services, real property or facilities that they in turn provide to for-profit professional sports organizations.
The initiative defines "fair value" as not less than the rate of return on a 30-year U.S. Treasury bond at the time the City began to provide the goods, services or real property, or entered into the lease in question.
According to the initiative, the return to the City for transactions subject to the "fair value" requirement would be computed as "the net cash on cash return, after interest and any financing costs, on the depreciated value of the cash investment of the City of Seattle in such goods, services, real property or facility…" The computation of return to the City would specifically exclude "all intangible, indirect, non-cash items such as goodwill, cultural or general economic benefits to the City," as well as "unsecured future cash returns."
The initiative states that any Seattle resident would have standing to bring an action in King County Superior Court to challenge any act, lease, ordinance or resolution that allegedly violated the "fair value" requirement. The initiative also states that a resident who brought such an action would be entitled to an injunction without having to post a bond, as long as the elements necessary to obtain an injunction under state law were established to the Court's satisfaction.
The initiative also states that (aside from the "fair value" requirement regarding for-profit professional sports organizations) it does not prevent the City from leasing or providing goods, services, real property or facilities to non-profit organizations for the "direct benefit of the health, welfare, or safety of the people of the City of Seattle."