June 27, 2002

Honorable Members
Seattle City Council
600 4th Avenue
Seattle, WA 98104

Dear Council President and Members:

On June 24, 2002, City Council adopted Council Bills 114147 and 114183 pertaining to a request by a single party for changes to the housing bonus program. After a careful review of the facts surrounding this legislation, I hereby veto these bills.

Changing the land use rules for the sole benefit of one party is bad public policy. This legislation would undermine a bonus program that has achieved important social benefits and just last year was validated by the Council after intensive review. Our land use rules should be clear, predictable and credible; those rules and their underlying values should not be cast aside when a single party disagrees with the result.

The legislation pertains to housing bonus credits originally linked to the Washington State Convention & Trade Center expansion project. A developer, Mr. Hedreen, claims that he did not receive the full benefit of a deal with the state as co-developer of the Convention Center expansion.

Mr. Hedreen never had a written obligation with the City and the City is under no obligation to him. Nonetheless, he seeks legislation that would:

• Make housing bonus credits transferable for the first time.
• Extend to 20 years the 3-year rule to exercise those credits.
• Create a financial windfall for his sole benefit.

Mr. Hedreen has made repeated attempts over the years to change the rules. The City several times has declined to extend the time limit or allow for credit transfers. The City did not agree to such terms during its negotiations with the state, declined to initiate a code Seattle City Council change of this nature in 1998, and rejected the proposal again last summer when Mr. Hedreen sought changes during an overhaul of the bonus program by the council.

The changes sought by Mr. Hedreen have many policy implications and unknown consequences. The underlying facts may be complex but the policy issue is clear: We should not set aside a tool to promote affordable housing and change important land use rules for the benefit of a single party.

It is for these reasons that I veto CB 114147 and CB 114183.

Sincerely,

GREG NICKELS
Mayor