Mayor Greg Nickels' plan to allocate $2.5 million to the Phinney Neighborhood Association toward the purchase of its school district owned building was met with questions about budget restrictions at a City Council meeting last week.

"We put together a project readiness assessment and examined how the organization managed business systems, staff and leadership," said the mayor's senior policy advisor Paul Fischburg at last week's City Council Planning, Land Use and Neighborhoods Committee meeting. "On the project level we looked at what they've done with reinforcing issues such as masonry and upkeep of the building and we were impressed."

Nickels submitted legislation two weeks ago to the city council to make $2.5 million in city funding available to the association. The Phinney Neighborhood Association has managed the Phinney Neighborhood Center, which offers many community activities, services and meeting places, for the past 27 years in the John B Allen School, comprised of two buildings.

Fischburg said the mayor feels it would be a great investment for the city. He also guaranteed the Phinney Association would be required to continue to provide community services, such as youth enrichment, family support, arts and education, a community building and a meeting and event space for the next 15 years.

"We don't see us changing that in the near future, it was the easiest part to agree to," said Ed Medeiros, executive director of Phinney Neighborhood Association.

Council member Sally Clark asked Fischburg how 15 years was chosen for the duration of the association's purchase of the building.

"There really wasn't any magic to a 15 year term," Fischburg said. "We wanted to balance the expectation and management aspect of the city's responsibilities. With a $2.5 million investment, that would give them over $150,000 each year for 15 years."

If the association purchased the two school buildings under the 15-year agreement, Fishburg also calculated the amount it would cost to upkeep the building and the source of funding.

"The sum total of the acquisition and necessary immediate repairs to give the building a 15 year life and rehabilitation is about $3.8 million," he said. "Sources of funds worth of use would be the $2.5 million from the city if approved, $905,000 from the state and $700,000 that the association has raised and received through pledges, grants and donations."

Clark continued to ask if there would be other uses for the building, if not just for the community.

"If (the association) wants to take 10 percent or more of the community building out of city use there would need to be an approval," said Fischburg. "As time changes, does it make sense to have economic use other than community center use and if so is there a balance there?"

Over a 15-year period Medeiros said that the association has matched the money the city has put forward and that is just from maintaining the facilities and does not include the programs they offer on site.

"Unlike a for-profit business we do have a significant reserve as an association and could manage in emergencies," he said. "We strategize our funds."

As a whole Clark said the proposal was a good initial idea but reiterated that the dependability of the reserve for the future of the building will most likely come up again. The council committee plans to review the proposal closely and will come to a final decision by Sept. 24.

The proposal will then go to the full council for a vote, tentatively set for Sept. 29.

The School Board is scheduled to vote on whether to approve the sale of the property at its Sept. 17 meeting.

Both council public hearings for the proposal will take place in the City Council Chambers, 2nd floor, Seattle City Hall, 600 4th Ave., Seattle. The hearing on the Sept. 24 is scheduled for Wednesday at 9:30 a.m. and Monday at 2 p.m. for the full council vote.

Allison Espiritu may be reached at 783-1244 or allisone@robinsonnews.com.