If you remember a few newsletters ago, we discussed the two projects that will change the face of Seattle forever, the Washington State Convention Center Expansion and the new Waterfront Park spanning 26 city blocks. A question that I come across regularly is "who is paying for all this?" The focus of today's newsletter will be on one of the ways the new Waterfront Park is going to be funded that could directly impact you.
How much i$ the project???
In its entirety, the project will cost about $5-billion-dollars, from the destruction of the Alaskan Way Viaduct to completion of the park. Building out the park itself is projected to cost about $1.1 billion-dollars. The cost and ongoing economic impact are explained below in the graphic!
What is a LID?
The graphic below is a basic breakdown for how the project is being funded. Most of the funding is self-explanatory with the exception of the LID (local improvement district) section.
It is quite common that enormous projects like this are funded in numerous ways. One of those ways is through an LID. The basic concept for the LID is that all the residential units (condos/apartments) and businesses will benefit from a rise in values and revenue after the waterfront park is finished; as a result, they are being asked to pitch in. Since owners of real estate and businesses are assumed to benefit from the project, each of those businesses and residents will be assessed a certain amount by the city to help fund the project. Each assessment is said to be as little as $1,000 and up to $95,000+.
The amount that you are assessed is based on how much the city figures your condo unit or business will gain in value after the park is built. The amount will start being officially assessed starting in 2021 or 2022, when the project nears completion. The repayment payment period will be about 15-20 years. Below you will see the boundaries of where the LID is assessed. Details are still being finalized.
A look at the new Seattle Aquarium Expansion!
Overlook walk, in front of Pike Place Market