04-06-2021 Sount Transit (4)
Gordon Wilson
April 6, 2021
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Purpose of Study
Sound Transit has identified the need for a new regional Operations and Maintenance Facility (OMF) in either Kent or Federal Way
Three sites are under consideration, one in Kent and two in Federal Way
Purpose of this analysis is to show impact of the two Federal Way sites:
The 53-acre Christian Faith Center (CFC) site
Predominantly owned by the CFC
Includes a large church, school, community facility
The 50-Acre 344th Street Site
52 separate parcels
Includes several businesses and single-family homes
11 parcels are included in both Federal Way sites
11 acres
Predominantly single-family parcels
Since this analysis was developed last year, Sound Transit changed configuration of the 344th Street site to a north-south orientation.
The map at the right shows the original east-west orientation of the 344th Street site.
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Purpose of Study
FCS GROUP has analyzed the potential impacts of both Federal Way sites including the following:
City Revenues
Property Tax Revenue
Sales Tax
State Shared Revenues
Surface Water Fees
Other Impacts
Employment Impacts
Vacant, Developable Lands
The map at the right shows the revised north-south orientation of the 344th St. site. There is now more overlapping area between the two Federal Way sites.
The data in this presentation refers to previous east-west orientation for the 344th St. site, but we are in the process of updating it for the City’s response to Sound Transit Draft
Environmental Impact Statement (DEIS).
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Revised Federal Way Sites Under Consideration
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Property Tax Revenue Comparison
Presently, both sites contribute to local taxing jurisdictions.
The 344th site contributes $550,000 a year to local taxing jurisdictions with $48,000 per year going to the City.
The CFC site contributes around $91,000 annually to local taxing jurisdictions with $8,000 going to the City. The majority of the taxable property in the CFC site is also within the
344th Street site.
The 344th site contributes significantly more to property taxes than the CFC site.
Much of the CFC site is tax-exempt. All of the OMF would be exempt from property taxes.
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Sales Tax Comparison
Both sites include retail businesses whose sales contribute to state and local sales tax revenue.
$19 million in retail sales were recorded in the 344th site, contributing $161,938 in state and local sales tax revenues.
$9.3 million in retail sales were recorded in the CFC site, contributing $79,170 in state and local sales tax revenues
The 344th site contributes significantly more to sales taxes than the CFC site.
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State Shared Revenue Comparison
Several state shared revenues are distributed to cities based on population.
74 Federal Way residents live in the 344th Street footprint. A cumulative $4,936 is generated by these residents.
18 Federal Way residents live in the CFC footprint. A cumulative $1,201 is generated by these residents.
The 344th site contributes significantly more to state shared revenues than the CFC site.
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Surface Water Fee Revenue Comparison
The Surface Water Utility for the city of Federal Way charges customers on the amount of impervious surface area on their property. The use of this revenue is dedicated to management
of the surface water system.
There are about 1.3 million square feet of impervious surface area in the 344th footprint resulting in $40,552 in surface water fees generated there.
There are just under 1 million square feet of impervious surface area in the CFC footprint resulting in $30,097 in surface water fees generated there.
The shared footprint accounts for $5,421 of the fees generated in either footprint.
The 344th site contributes more to surface water fees than the CFC site.
Estimates of impervious area for an OMF are not available.
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Comparison of Total Revenue Impact
Between all identified revenue sources, the 344th footprint generates $255,022 for the City of Federal Way and $519,179 for all government entities.
Between all identified revenue sources, the CFC footprint generates $118,317 for the City of Federal Way and $161,885 for all government entities.
The shared footprint accounts for $12,797 for the City of Federal Way and $53,731 for all government entities.
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Comparison of Total Revenue Impact
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Other Impacts Considered
Jobs
The 344th site includes 320 jobs with an average labor income of $77,296.
The CFC site includes 228 jobs with an average labor income of $63,592.
Developable Land.
There are six vacant properties in the 344th site, with a total of 7.25 vacant acres, the majority of which are zoned for industrial development.
The CFC footprint has a total of four vacant parcels with 22.85 acres spread across industrial, commercial and multi-family zoning.
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An OMF would not only displace existing properties; it would constrain future development.
We are currently performing an opportunity cost analysis to compare an OMF with the “highest and best use” for parcels that are currently vacant.
Opportunity Cost Analysis is Underway
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Questions?
Gordon Wilson, Senior Program Manager – Strategic Analysis
(425) 516-7209
gordonw@fcsgroup.com
www.fcsgroup.com
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