City Council's $3.2 million loan is on the 82-acre "Chuckanut Woods" site. Prop. 1 supporters claim a new parks district and parks tax is needed to repay the loan. I believe that is wrong. The loan can be paid off using basic real estate finance principles. When valuable property has a loan that cannot be paid, sell some property. In this case, City Council can sell two "properties."
First, the development rights. Chuckanut Woods' value is the dwelling unit yield per current zoning - 82 acres yields 714 single-family or 1,190 multi-family units. The unit yield can be sold as a transfer of development rights to another location. Low prices today (say $2,500 per unit) generate $1.5 million. Selling in a better market ($3,000 - $5,000 each) generates $3.5 million - $5.9 million, enough to pay off the loan, which is due Dec. 31, 2017.
Second alternative, Council sells 15 acres for a few homes, then sells the remaining transfer of development rights as above. Council defines the open space boundaries, the number of homes, the transfer rights and generates cash within four years to repay their loan.
These tools are not new. They are well known to planning and development professionals.
Successful finance principles are the solution. A new tax district is not. All registered voters in the new taxing district, please join me and vote no on Proposition 1.