Part three: Burien answers questions
Tue, 09/05/2006
Editor's note: Many objections have been raised in recent months about the potential annexation by the city of Burien of the North Highline unincorporated area. Recently, the Times/News submitted a series of questions to Burien council members and staff for official facts and perspectives from the city on this divisive issue. The last of three installments presenting their answers appears below.
What is the estimated additional tax revenue that the new Greenbridge development in White Center will generate when completed.
The Greenbridge Development has an estimated 442 town homes and detached homes for sale at an average price of $325,000. At an estimated $13 per $1,000 of assessed valuation, the project would generate an additional $1.87 million in property tax revenue.
The City of Burien would receive approximately $230,000 per year of the total additional revenue, assuming the city's tax rate was $1.60 per $1,000 of assessed valuation.
The King County Housing Authority estimates that the homes will not be fully on the property tax rolls until 2012 or 2013.
Is the potential for retail and light manufacturing growth in White Center and Boulevard Park improving-and, if so, how-since the last economic development studies were conducted?
Berk and Associates completed the city's last economic development study in 2005. This report stated that due to various factors, such as transportation and other retail centers, there was not a significant potential for retail and light manufacturing growth in White Center and Boulevard Park. We do not have any reason to believe that the situation has changed in the last year.
White Center, Boulevard Park and the industrial area of South Park have more land for new retail and light-industrial development than does Burien. Will this available land benefit Burien's long-term interests-increased commercial activity; new jobs; increased property, sales and business taxes-if the city annexes all of North Highline?
As noted above in the reply to question 14, "there was not a significant potential for retail and light manufacturing growth in White Center and Boulevard Park," according to the study conducted by Berk and Associates in 2005.
The city's economic development study reviewed the possibilities for retail and light industrial development in North Highline and concluded that South Park has the best potential for industrial development.
The study states, "the area does not have large areas of developable land, which suggests that further development in the area will be limited."
What will it cost Burien to acquire the libraries in North Highline if they are in areas annexed by the city?
Nothing. The two existing libraries (plus the proposed third library in Greenbridge) are part of the King County Library System. Any libraries on land annexed into Burien would remain part of the King County Library System.
Is the 10-year tax credit (approved by the Legislature) absolutely assured if Burien annexes all of North Highline? If the city annexes part of North Highline?
The sales tax credit was approved by the State Legislature and signed by the Governor. It would remain in effect unless it was repealed or modified under the same process by the Washington Legislature.
The legislation requires annexation of at least 10,000 people to be eligible for the state funding. The funding is only for providing operating services and not capital expenditures within the annexed area.
What capital improvements are needed in North Highline, and when? What will they cost the city if Burien annexes all or part of the North Highline, and will this require the city to raise taxes?
A list of capital improvements that are currently planned by King County for the next six years in the North Highline area is on Burien's website.
For the City Council's preferred alternative, capital costs are estimated at about $1.79 million per year. Local revenues and grants would pay for this cost. Any shortfall in funding could be covered by raising taxes and fees, shifting funding from other needs, or delaying capital projects.
This is how capital needs are currently handled in Burien and other cities. Negotiating with King County for capital funding, in addition to the operating funds that Burien will request could also reduce the shortfall.