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HomeMy WebLinkAboutCity Council Committees - Planning and Economic Development Committee - 10/19/1993 CITY OF M24JILSV LS CITY COUNCIL PLANNING COMMITTEE MINUTES October 19, 1993 4 :00 PM Committee Members Present City Attorneys Office Leona Orr, Chair Laurie Evezich Jon Johnson Jim Bennett Planning Staff Other City Staff Lin Ball Tony McCarthy Jim Harris Rachel Johnston Other Guests Margaret Porter Fred Satterstrom Ron Nelson John Finke HUD SECTION 108 (J. Harris) Planning Director Harris introduced Ron Nelson who informed the Committee the status of the unfinished hotel which lies on the south side of S. 212th Street and across from the Boeing company. Ron Nelson expressed this is an information item only to discuss ideas how this hotel could be finished and sold as indicated in the agenda memo. Ron introduced John Finke, the northwest branch manager of the National Development Council, which is a nonprofit organization which specializes in loan packaging. Mr. Finke's company is contracted by King County and is 25 years old who exclusively works with government in financing housing and economic development projects. John presented an overview of the HUD Section 108 program as indicated in the memo. The HUD Section 108 program is a growing HUD tool and is an under utilized section of the Block Grant Act, which allows cities to borrow through a HUD guaranteed bond issue of funds. These funds can be used for three(3) specific activities: 1) acquisition of real property that is not to be used for the general conduct of government; 2) housing rehab; and 3) economic development where the economic development is one of the national objectives. CITY COUNCIL PLANNING COMMITTEE MINUTES OCTOBER 19, 1993 PAGE 2 A city has available five(5) times their annual Block Grant with a 20 year pay back plan. As an example, the City of Tacoma did not want to see their downtown Sheraton hotel foreclosed so John Finke worked with them to arrange a HUD Section 108. For a City to borrow Section 108 funds, there is a requirement that a city (or county) must be willing to pledge its future Block Grant dollars to HUD as a loan loss guarantee. That means over the course of the borrowing, if a city used it for economic development by re-lending to a private entity, if that entity failed to make one of the annual payments, HUD would take that payment out of the County' s block grant; consequently, the County would ask this to come out of the City's share of their Block Grant. John advised to only use the HUD Section 108 on good deals where the risk is minimum and the deal is important. Mr. Finke stated that HUD is in the process of putting together their own internal loan loss reserve to either lessen or eliminate this requirement, which will not be in place for three or four months. According to the current laws, Mr. Harris expressed concern about the risk of losing the Kent 's Block Grant program of about $300, 000 a year for 20 years if there was a default. Also, the City of Kent's Community Block Grant goals would need to be reviewed if the HUD Section 108 program would be pursued. Mr. Nelson and Mr. Finke appreciated being able to come and discuss this information with the Committee and they will come back to the Committee when or if there is a more concrete proposal for discussion. SEPA CODE AMENDMENTS (J. Harris) Planning Director Harris explained the proposed amendments regarding the State Environmental Policy Act (KCC 11. 03 .410) . Mr. Harris discussed his memo to the Planning Committee which recommends amendments to the SEPA ordinance as follows: Section 11. 03 . 410 Public notice A. Whenever the city issues a determination of nonsignificance under WAC 197-11-340 (2) , a determination of significance under WAC 197- 11-360 (3) , an addendum to any existing environmental document or any existing environmental document as defined in section 11. 03 . 320, the city shall give notice as follows: 1. If public notice is required for a nonexempt action, the notice shall state whether a determination of significance or determination of nonsignificance or a mitigated determination of nonsignificance has been issued and that comments are due within fourteen (14) days. Notice shall be given as follows: — CITY COUNCIL PLANNING COMMITTEE MINUTES OCTOBER 19, 1993 PAGE 3 a. Posting the property for site specific proposals; b. Publishing notice in a newspaper of general circulation in the county city or general area where the proposal is located; and C. Notifying all parties of record, any individual or group which has appeared at a public hearing or submitted comments on the proposal which is the subject of the determination. Bennett MOVED and Johnson SECONDED a motion to approve the aforementioned four amendments of the SEPA Code and forward to the City Council on November 2 , 1993 . Motion carried. GROWTH MANAGEMENT UPDATE (F. Satterstrom) Planning Manager Satterstrom presented stated reported on two action items that needed the Committee' s approval. First, the Committee agreed to set up a Council Workshop on November 30, 1993 between 5: 00 p.m. to 9 : 00 p.m. regarding the Capital Facilities Plan. The Henderson & Young consultants will provide information regarding inventory, projected revenue that the City has, the current levels of service, and what the City's needs are. Chair Orr mentioned she would bring this up under reports at the Council meeting at the October 19 , 1993 Council meeting. The City Council authorized the Planning Department in July to proceed ahead with a Request for Proposal (RFP) on the Environmental Impact Statement for the Comprehensive Plan and the Planning Department did this. Nine responses came back with $200, 000 the highest bid and the lowest bid around $35, 000, the other bids congregated in the middle. The Planning Department plans to interview the people with bids in the middle range. Bennett MOVED and Johnson SECONDED a motion to authorize the Planning Department to proceed ahead with the interviews to try to identify a cost figure, put this item on the next Budget Committee's Agenda of November 8, and forward this item to the City Council on November 16, 1993 . Motion carried. ADDED ITEMS• SOUTH KING COUNTY DRUG & ALCOHOL CENTER (L. Ball) Lin Ball explained that the City received a letter from Philip - Showstead, Executive Director of the South King County Drug and Alcohol Recovery Centers, expressing his concern that South County is not getting its fair share of the drug and alcohol treatment funding. CITY COUNCIL PLANNING COMMITTEE MINUTES OCTOBER 19, 1993 PAGE 4 _ Staff met with Mr. Showstead and the Health Department and found that the Public Health Department performs an in-depth review of all applications and involves a citizen review board in making funding decisions. Staff also learned that South King County received more ADATSA funds than any other area of the county and almost double the amount of funding of any other area. A review of the information received from Mr. Showstead and King County raised the following concerns: 1. There is no needs assessment available for aiding in making funding decisions. 2 . There is no South County representation on the King County Alcoholism and Substance Abuse Administrative Board. 3 . South County police departments have difficulty in obtaining bed spaces at the County Detoxification Center. In order to address these concerns, Council President, Judy Woods, is planning to write a letter to the County recommending that they look into the three areas mentioned above Tony McCarthy raised the question of whether the Regional Justice Center in Kent have anything to do with detox and make it easier for South King County to have access to any of these king of programs. Lin appreciated the question and she had not heard this as a component. he will check into this and also speak with Alana Mclalwain who is working on the Regional Justice Center project. ADJOURNMENT The meeting adjourned at 4 : 55 p.m. PC01019.MIN CITY OF ��MIT CITY COUNCIL PLANNING COMMITTEE MINUTES October 19, 1993 4: 00 PM ph�tVfiC��S'@J Committee Members Present City Attorney' s Office Leona Orr, Chair Laurie Evezich Jon Johnson Jim Bennett Planning Staff Other City Staff Lin Ball Tony McCarthy Jim Harris Rachel Johnston Other Guests Margaret Porter Fred Satterstrom Ron Nelson John Finke HUD SECTION 108 (J. Harris) Planning Director Harris introduced Ron Nelson who informed the Committee the status of the unfinished hotel which lies on the south side of S. 212th Street and across from the Boeing company. Ron Nelson expressed this is an information item only to discuss ideas how this hotel could be finished and sold as indicated in the agenda memo. Ron introduced John Finke, the northwest branch manager of the National Development Council, which is a nonprofit organization which specializes in loan packaging. Mr. Finke's company is contracted by King County and is 25 years old who exclusively works with government in financing housing and economic development projects. John presented an overview of the HUD Section 108 program as indicated in the memo. The HUD Section 108 program is a growing HUD tool and is an under utilized section of the Block Grant Act, which allows cities to borrow through a HUD guaranteed bond issue of funds. These funds can be used for three(3) specific activities: 1) acquisition of real property that is not to be used for the general conduct of government; 2) housing rehab; and 3) economic development where the economic development is one of the national objectives. CITY COUNCIL PLANNING COMMITTEE MINUTES OCTOBER 19, 1993 PAGE 2 A city has available five(5) times their annual Block Grant with a 20 year pay back plan. As an example, the City of Tacoma did not want to see their downtown Sheraton hotel foreclosed so John Finke worked with them to arrange a HUD Section 108 . For a City to borrow Section 108 funds, there is a requirement that a city (or county) must be willing to pledge its future Block Grant dollars to HUD as a loan loss guarantee. That means over the course of the borrowing, if a city used it for economic development by re-lending to a private entity, if that entity failed to make one of the annual payments, HUD would take that payment out of the County' s block grant; consequently, the County would ask this to come out of the City's share of their Block Grant. John advised to only use the HUD Section 108 on good deals where the risk is minimum and the deal is important. Mr. Finke stated that HUD is in the process of putting together their own internal loan loss reserve to either lessen or eliminate this requirement, which will not be in place for three or four months. According to the current laws, Mr. Harris expressed concern about the risk of losing the Kent's Block Grant program of about $300, 000 a year for 20 years if there was a default. Also, the City of Kent' s Community Block Grant goals would need to be reviewed if the HUD Section 108 program would be pursued. Mr. Nelson and Mr. Finke appreciated being able to come and discuss this information with the Committee and they will come back to the Committee when or if there is a more concrete proposal for discussion. SEPA CODE AMENDMENTS (J. Harris) Planning Director Harris explained the proposed amendments regarding the State Environmental Policy Act (KCC 11. 03 . 410) . Mr. Harris discussed his memo to the Planning Committee which recommends amendments to the SEPA ordinance as follows: Section 11. 03 . 410 Public notice A. Whenever the city issues a determination of nonsignificance under WAC 197-11-340 (2) , a determination of significance under WAC 197- 11-360 (3) , an addendum to any existing environmental document or any existing environmental document as defined in section 11. 03 . 320, the city shall give notice as follows: 1. If public notice is required for a nonexempt action, the notice shall state whether a determination of significance or determination of nonsignificance or a mitigated determination of nonsignificance has been issued and that comments are due within fourteen (14) days. Notice shall be given as follows: CITY COUNCIL PLANNING COMMITTEE MINUTES OCTOBER 19, 1993 PAGE 3 a. Posting the property for site specific proposals; b. Publishing notice in a newspaper of general circulation in the county city or general area where the proposal is located; and C. Notifying all parties of record, any individual or group which has appeared at a public hearing or submitted comments on the proposal which is the subiect of the determination. Bennett MOVED and Johnson SECONDED a motion to approve the aforementioned four amendments of the SEPA Code and forward to the City Council on November 2, 1993 . Motion carried. GROWTH MANAGEMENT UPDATE (F. Satterstrom) Planning Manager Satterstrom presented stated reported on two action items that needed the Committee's approval. First, the Committee agreed to set up a Council Workshop on November 30, 1993 between 5: 00 p.m. to 9: 00 p.m. regarding the Capital Facilities Plan. The Henderson & Young consultants will provide information regarding inventory, projected revenue that the City has, the current levels of service, and what the City's needs are. Chair Orr mentioned she would bring this up under reports at the Council meeting at the October 19, 1993 Council meeting. The City Council authorized the Planning Department in July to proceed ahead with a Request for Proposal (RFP) on the Environmental Impact Statement for the Comprehensive Plan and the Planning Department did this. Nine responses came back with $200, 000 the highest bid and the lowest bid around $35, 000, the other bids congregated in the middle. The Planning Department plans to interview the people with bids in the middle range. Bennett MOVED and Johnson SECONDED a motion to authorize the Planning Department to proceed ahead with the interviews to try to identify a cost figure, put this item on the next Budget Committee's Agenda of November 8 , and forward this item to the City Council on November 16, 1993 . Motion carried. ADDED ITEMS: SOUTH KING COUNTY DRUG & ALCOHOL CENTER (L. Ball) Lin Ball explained that the City received a letter from Philip Showstead, Executive Director of the South King County Drug and Alcohol Recovery Centers, expressing his concern that South County is not getting its fair share of the drug and alcohol treatment funding. CITY COUNCIL PLANNING COMMITTEE MINUTES OCTOBER 19, 1993 PAGE 4 Staff met with Mr. Showstead and the Health Department and found that the Public Health Department performs an in-depth review of all applications and involves a citizen review board in making funding decisions. Staff also learned that South King County received more ADATSA funds than any other area of the county and almost double the amount of funding of any other area. A review of the information received from Mr. Showstead and King County raised the following concerns: 1. There is no needs assessment available for aiding in making funding decisions. 2 . There is no South County representation on the King County Alcoholism and Substance Abuse Administrative Board. 3 . South County police departments have difficulty in obtaining bed spaces at the County Detoxification Center. In order to address these concerns, Council President, Judy Woods, is planning to write a letter to the County recommending that they look into the three areas mentioned above Tony McCarthy raised the question of whether the Regional Justice Center in Kent have anything to do with detox and make it easier for South King County to have access to any of these king of programs. Lin appreciated the question and she had not heard this as a component. he will check into this and also speak with Alana Mclalwain who is working on the Regional Justice Center project. ADJOURNMENT The meeting adjourned at 4 : 55 p.m. PC01019.MIN