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HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 01/20/2004 • KEN T Kent City Council Meeting W A S N I N O T O N January ary 20, 2004 The regular meeting of the Kent City Council was called to order at 7:00 p.m. by Mayor White. Councilmembers present: Clark, Harmon,Peterson,Ranniger,Raplee, Thomas and White. (CFN-198) PUBLIC COMMUNICATIONS A. Economic Update. (CFN-198) Economic Development Manager Torgelson gave a brief update. B. Introduction of Appointees. (CFN-198) Mayor White announced his latest appointment. PUBLIC HEARING A. Kent Station Real Estate Purchase and Sale Agreement and Development Agreement. (CFN-171) Mayor White noted that the City of Kent is considering surplusing approximately 18.2 acres of real property in its north downtown core, commonly known as "Kent Station." As part of the transaction,the City and the prospective purchaser, Kent Station, L.L.C., have drafted a proposed Real Estate Purchase and Sale Agreement. This Agreement offers to purchase approxi- mately ten acres of the Kent Station site with the intent to develop the property in accord with the City's vision of a mixed-use urban center. The Agreement also provides options for the developer to purchase the remaining Kent Station property, and further provides protection to the City aimed at preserving the mixed-use urban center vision. In addition, the City and the developer have negotiated a proposed Development Agreement. This document addresses specific regulatory and development issues between the City and the Kent Station developer and, as required by state law, cannot be approved without first holding a public hearing. The City held a public hearing on December 16, 2003. At that hearing, Council deferred action and set the matter over for additional consideration and public input. After having held two separate workshops on the matter,this is the second public hearing on the Development Agreement and other Kent Station matters. Torgelson commented on parking impacts, noting that there will be approximately 1400 parking spaces,both surface and structure parking. Mayor White opened the public hearing. The following speakers were in favor of proceeding with the project for economic development reasons: Jack Becvar 11617 SE 258th Street June McElheran 703 Wynwood Drive Jim Bitondo 106 E. Titus Susan Johnson 25230 104th Avenue SE Judith Bakkensen 213 W. Meeker Marcelle Pechler 524 W. Meeker Jacquie Alexander 731 5th Avenue South Lee Porter Ben Porter Roberto Gonzales 213 4th Avenue South In addition, letters of support from Greg Haffner and Lawrence Sells were read. 1 Kent City Council Minutes January 20, 2004 The following speakers were in favor of delaying the project in order to get complete and accurate information on the appraisal,costs, and other potential developers: Ted Nixon 911 E. Temperance Hugh Leiper 815 Reitan Road Bob O'Brien 1131 Seattle Street Jack Evans 13720 SE 259th Street Ted Kogita 25227 Reith Road Claudia Kauffman 11052-A SE 250th Court Bill Young 1005 E. Guiberson Wanda Steiner, 26421 170th Avenue SE, expressed concern about the impact of a tax increase on low income residents, and John Ehle, 24620 Russell Road, noted that SCORE is planning small business workshops in Kent because of it's growth. There were no further comments from the audience and THOMAS MOVED to close the public hearing. Clark seconded and the motion carried. CONSENT CALENDAR PETERSON MOVED to approve Consent Calendar Items A through L. Clark seconded and the motion carried. A. Approval of Minutes. (CFN-198) Minutes of the special meeting of December 16, 2003, and the regular Council meeting of January 6,2004, and the addition of the following Consent Calendar Item 6Z which was inadvertently omitted from the minutes of the meeting of December 9,2003,were approved. Kent Regional Justice Center Advisory Board. (CFN-1001) Confirmation of the Mayor's appointment of Pastor Jane Prestbye of Kent Lutheran Church to serve as a member of the Regional Justice Center Advisory Board. Pastor Prestbye will replace Marvin Eckfeldt,whose term has expired. Her new term will continue through 12/31/2006. B. Approval of Bills. (CFN-104) There was nothing for approval, as the Operations Committee meeting was cancelled. C. Olschefski Sewer Extension Bill of Sale. (CFN-484) The Bill of Sale for Olschefski Sewer submitted by BELS Investment, LLC for continuous operation and maintenance of 232 feet of sewers, and 84 feet of storm sewers was accepted. D. Drinking Driver Task Force Appointments. (CFN-122) The Mayor's appointment of City Councilmember Ron Harmon to serve as the Council Representative to the Kent Drinking Driver Task Force and the Mayor's appointment of Mr. David Malik were confirmed. E. City Hall Seismic Project. (CFN-1263) The City Hall Seismic Project was accepted as complete. F. Public Works Maintenance Facility Security ID Project. (CFN-120) The Security ID Project at Public Works Maintenance Facility was accepted as complete. 2 Kent City Council Minutes January 20, 2004 G. Public Works Maintenance Facility Security Camera Proiect. (CFN-120) The Security Camera Project at Public Works Maintenance Facility was accepted as complete. H. Kent Commons Gym Roof Project. (CFN-120) The Gym Roof Project at Kent Commons was accepted as complete. I. Agreement with Bureau of Alcohol,Tobacco,Firearms and Explosives. (CFN-122) The Mayor was authorized to sign the Memorandum of Agreement between the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kent Fire Department for reimbursement of overtime salary costs associated with the ATF Puget Sound Arson Explosives Task Force. J. 2004 Fire Safe Families Grant from State Department of Health. (CFN-122) Grant funds of$2,000 and the in-kind grant of 150 smoke detectors received from the State of Washington were accepted. K. Appointment to LEOFF I Disability Board. (CFN-147) The Mayor's appointment of City Councilmember Debbie Ranniger to serve as the Council Representative on the LEOFF I Disability Board was confirmed. L. Washineton Traffic Safety Commission Grant. (CFN-122) The Kent Police Department was authorized to accept the Washington Traffic Safety Commission grant for 2004 in the amount of$5,000.00, and to establish budget documents as required OTHER BUSINESS A. Kent Station Phase I Purchase and Sale Agreement. (CFN-171) Mayor White spoke in support of the project,noting that downtown Kent could become the retail and entertainment center of the city. He said the proposed resolution would authorize the surplusing of approximately 18.2 acres of the Kent Station property, located in the north portion of Kent's downtown core, and would authorize the Mayor to execute the Real Estate Purchase and Sale Agreement between the City of Kent and Kent Station, L.L.C. The proposed agreement would authorize the sale, at$5 per square foot, of approximately ten acres of the Kent Station site with the intent of developing the property consistent with the City's vision of a mixed-use urban development. It also provides the developer an option to purchase the remaining Kent Station property at fair market value or$5 per square foot, whichever is greater. The agreement includes specific provisions that act as incentives for the developer to quickly commence and complete construction of the full site, along with other provisions intended to allow the City to regain control of the property, should the developer fail to timely complete the proposed development. It was noted that many emails on this subject have been received, and PETERSON MOVED to make all correspondence relating to this issue a part of the record. Clark seconded and the motion carried. PETERSON MOVED to adopt Resolution No. 1664 surplusing approximately 18.2 acres of property in Kent's north downtown core, commonly known as the"Kent Station"property, and authorizing the Mayor to execute a purchase and sale agreement with Kent Station, L.L.C., substantially in the form attached to the resolution and amended to include subsequent takedown purchase date restrictions addressed at tonight's meeting, all subject to approval of the final terms and conditions by the City Attorney. Clark seconded. THOMAS MOVED to amend Resolution No. 1664 by substituting the amount of$7.50 per square foot for the amount stated at $5.00 per 3 Kent City Council Minutes January 20, 2004 square foot in Phase I. White seconded. Peterson did not agree with the amendment, saying that progress has been made in the last thirty days and that the project will enhance economic development and create a livable, viable addition to the community. Thomas explained that his amendment was an attempt to meet the developer halfway at$7.50. After a brief discussion, the motion to amend failed,with only Thomas in favor. Clark reviewed the history of the project, including Mayor White's efforts in getting the Sounder to stop in Kent, determining that the north site is the most viable, obtaining funding for Ramsay Way, and making a commitment to change the City of Kent forever. Ranniger said she is comfortable with the price,the traffic mitigation and the vision. White explained that while he feels the project will be successful,there are alternatives which could result in a better return. Raplee voiced concern as to whether this is the right mix for Kent. Harmon stated that the project will bring jobs to Kent and will help revitalize existing businesses. Thomas said he has concerns about the price, the appraisal, parking, and the traffic impact. Martin noted that Section 2.7 regarding Subsequent Takedowns has been added to the Purchase and Sale Agreement, and that it requires the developer to complete 25% of the first phase, or wait until January 1,2005, whichever is later,before selling the remainder of the property. He said there is a caveat that allows the city to sell the property to the developer should there be a buyer who had a property that they needed to buy for the purpose of developing that property prior to then. Upon a roll call vote,the motion to adopt Resolution No. 1664 carried 4-3,with Clark, Hannon, Peterson and Ranniger in favor, and Raplee, Thomas and White opposed. B. Kent Station Development Agreement (CFN-171) On December 16, 2003 and on January 20, 2004,the City Council held public hearings and discussed the proposed resolution which would authorize the Mayor to sign the proposed development agreement,which applies to the approved sale of the Kent Station property to Kent Station, L.L.C. and addresses specific regulatory and development issues between the City and the Kent Station developer. PETERSON MOVED to adopt Resolution No. 1665 authorizing the Mayor to execute the Development Agreement for the Kent Station property with Kent Station, L.L.C. Thomas seconded and the motion carried 5-2 with White and Raplee opposed. C. Kent Station Admissions Tax. (CFN-171) Mayor White noted that this ordinance enacts a 5%tax on admissions charges imposed by local businesses,but only if the customer is charged admission in order to enter the building where a use or activity occurs. The ordinance exempts from taxation admission charges imposed by schools and other federally tax-exempt non-profit organizations and governmental entities. Martin noted that a very small number of entities would be affected by this ordinance, although the exact number is not known at this time. WHITE MOVED to table this issue until the next Council meeting. Raplee seconded. The motion failed with Clark, Harmon, Peterson, Ranniger and Thomas in favor, and Raplee and White opposed. THOMAS MOVED to table the motion indefinitely. White seconded. After a brief discussion, the motion failed with only Thomas and White in favor. 4 Kent City Council Minutes January 20, 2004 CLARK MOVED to adopt Ordinance No. 3678 enacting a 5%admissions tax on certain admissions charges imposed by businesses and other entities within the City, to take effect July 1, 2004. Peterson seconded. Clark noted that this ordinance is part of the complete package. The motion carried 4-3,with Clark, Harmon,Peterson and Ranniger in favor and Raplee, Thomas and White opposed. D. Kent Station Downtown Connectivity. (CFN-171) Mayor White stated that the proposed resolution sets forth the City's commitment to ensure pedestrian connections between Kent Station and historic Kent downtown along the 2nd Avenue/Ramsay Way corridor, and affirms the City's intention to ensure the economic vitality of both Kent Station and historic downtown Kent. RANNIGER MOVED to adopt Resolution No. 1666 stating the City's commitment to ensure pedestrian connections between Kent Station and historic downtown Kent and affirming the City's intention to ensure the economic vitality of historic downtown Kent and Kent Station. Clark seconded. Ranniger and Thomas stressed the importance of connectivity, and the motion carried. REPORTS Council President. (CFN-198) It was noted that Suburban Cities will hold their Policy Board meeting in Renton tomorrow night at 7:00 p.m. and that Councilmembers are invited to attend. Public Safety Committee. (CFN-198) Ranniger noted that the committee will hold their meetings on the third Thursday of each month, the next meeting being on February 19th at 5:00 p.m. Public Works Committee. (CFN-198) White noted that the next meeting will be held at 5:00 p.m. on January 29th. Planning and Economic Development. (CFN-198) Clark noted that, due to holidays on the third Monday of January and February, there will not be a meeting in January and there will be a special meeting in February, although the date has not been set. Administrative Reports. (CFN-198) Martin noted that an Executive Session is unnecessary. ADJOURNMENT At 8:45 p.m.,PETERSON MOVED to adjourn. Harmon seconded and the motion carried. (CFN-198) Brenda Jacober, C City Clerk r 5