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HomeMy WebLinkAboutCity Council Committees - Economic and Community Development - 04/14/2014 �� KENT W<s ul.xcron ECONOMIC & COMMUNITY DEVELOPMENT COMMITTEE MINUTES April 14, 2014 Committee Members Committee Chair Bill Boyce, Dennis Higgins, and Jim Berrios. Boyce called the meeting to order at 5:00 pm. 1. Approval of Minutes Higgins Moved and Berrios Seconded a Motion to approve the Minutes of March 10, 2014. Motion PASSED 3-0. 2. Public Hearing: Multifamily Tax Exemption (MFTE) Ordinance Planning Director Fred Satterstrom stated that this hearing is being held to consider an ordinance to extend the MFTE out five years through 2019. The Downtown Subarea Action Plan encourages residential development and the MFTE incentivizes downtown development. Satterstrom stated that the amended residential targeted area map excludes that portion of the North Park neighborhood currently zoned MRT, consistent with recent actions of the City Council with respect to the planned action ordinance (PAO) where the same area was removed from the affected areas. Staff did not change parking requirements for existing multifamily residential. Satterstrom submitted a comment letter (Exhibit 1) from Kristen Link, Development Manager with Tarragon LLC for the record; in support of extending the MFTE for five years; and recommending that developers be allowed to choose between an eight year and a twelve year multifamily tax exemption program. Eight year exemptions allow market rate housing and twelve year exemptions allow lower income housing development. The ordinance allows for eight years. Staff anticipates taking this to Council within a couple weeks and recommends moving forward with the ordinance suggesting that the twelve year exemption be brought back to the Committee as an amendment proposal. Higgins Moved and Berrios Seconded a Motion to accept the Tarragon letter (defined as Exhibit 1) into the record. Motion Passed 3-0. Berrios Moved and Higgins Seconded a Motion to Open the Public Hearing. Seeing no speakers, Higgins Moved and Berrios Seconded a Motion to Close the Public Hearing. After deliberating; Higgins Moved and Berrios Seconded a Motion recommending to the full City Council approval of the proposed ordinance to extend the multifamily tax exemption for qualifying projects in the residential targeted area as depicted in Appendix 1 of the proposed ordinance. 3. Par 3-Proposed Resolution Authorizing Comprehensive Plan Amendment Process Satterstrom stated that the Par-3 Golf site is zoned (SR-1) for low density land uses with a land use designation of Open Space (OS). Entitling this property requires undergoing a land use process, declaring an emergency (defined as "an issue of community-wide significance that promotes the public health, safety, and general welfare') to accomplish a comprehensive and zoning plan amendment outside of the annual cycle which begins each year in September. A resolution is needed authorizing planning staff to move forward with preparing the site for potential development by modifying the zoning and comprehensive plan designations. Staff will look at zoning alternatives, will conduct an analysis, consider site conditions, than propose options through the public hearing process. Wolters stated that the full process should take five months to complete along with the (RFQ/RFP) ECDC Minutes March 10,2014 Page 1 of entitlement process running concurrently. Wolters stated that he anticipates that the city will recommend hiring outside consultant assistance and Legal Counsel as Kent moves further through the entitlement process. Berrios Moved and Higgins Seconded a Motion to approve the proposed resolution to authorize staff to move forward with a comprehensive plan amendment on the Par 3 golf course site, and to recommend approval by the full City Council. Motion Passed 3-0. 4. Sound Transit Federal Way Link Extension Update Sound Transit's Federal Way Transit Extension Project Manager, Cathal Ridge explained that the Draft Environmental Impact Statement (DEIS) analyzes environmental impacts of light rail alignment and station location alternatives along the SR 99 and I-5 corridors. The DEIS will have conceptual designs of all the alternatives, will include the costs of those alternatives, will rank the alternatives in terms of ridership and other performance measures, will analyze the environmental effects of the alternatives, and will present a good understanding of the Transit Oriented Development (TOD) potential associated with the different alternatives. The DEIS will help inform the determination of the preferred alternative to move forward with the Final Environmental Impact Statement (FEIS). The DEIS is targeted for publication by the end of 2014 or beginning of 2015. The Environmental Impact Statement (EIS) considers the natural environment such as air quality, greenhouse gas emissions, ecosystems, water resources, geology and soils. The EIS also addresses typical environmental concerns and a range of impacts related to construction, safety and security, noise and vibration, visual effects, parks, land use, economic activity, business access, traffic detours, the acquisition process, displacements, and relocations. The EIS informs the decision-making process, moving toward the Record of Decision that identifies the project to be built, includes responses to comments, and identifies mitigation measures. The Record of Decision is expected in mid-2016. Ridge described some typical environmental concerns (noise, visual, security, safety) and possible measures that could be used for mitigating impacts. Sound Transit will be contacting property owners later this year about potential impacted properties from the light rail. With selection of a preferred alternative in 2015 property owners will know more about whether their properties remain impacted. In late 2016 the Sound Transit Board will select the project to the built and property owners will know the likely impacts. However, it won't be until final design in 2018 that the Sound Transit Board will authorize full or partial acquisition of properties. Constructing the rail system begins with utility relocation, demolition and site preparation, building the rail foundations, building the columns, constructing the structure guideway and then the tracks. The final step is to restore the roadways and landscaping. Construction will take from four to five years to complete and will disrupt the roadways. Signage will be in placed to detour traffic around construction sites. Protected walkways will be installed, access will be maintained to local businesses, and adequate parking for both businesses and contractor parking will be provided. The public will be kept informed with advance and timely notification of upcoming construction. A 24-hour informational hotline will be in place. A door-to-door effort will be conducted with local businesses to mitigate any issues. Ridership service is expected to begin in 2023. Informational Only S. Code Enforcement Update Building Official Bob Hutchinson stated that the responsibility for code enforcement is spread out among several departments. Economic & Community Development formed a unit that deals with specific codes, serves as a resource for other departments, as well as works closely with other departments. A civil penalty process (KCC 1.04) was created in 1993 and refined in 2008 to enhance effectiveness and efficiency. In practice, the civil ECDC Minutes March 10,2014 Page 2 of procedure is almost always used, as it has proven the most effective means of getting most code violations corrected. ECD Code Enforcement Officer RE Miller stated that admonishment letters are used as an efficient method that results in code compliance with the majority of cases. Initial attempts to obtain voluntary compliance occurs through phone or field contact, and when successful omits the need to send admonishment letters. ECD Code Enforcement Officer Doug Garrett stated that the next step is to issue a correction notice requiring a response within ten days for compliance. The correction notice warns the recipient that a Notice of Violation will be issued and a $500 penalty will be incurred if the violation is not corrected. Building Official Bob Hutchinson stated that Notices of Violation can be contested through the Hearing Examiner and involves the Legal Department. The Hearing Examiner can mitigate costs and assess fines that are sent directly to a collection agency for retrieval. 90-99 percent of code violations are resolved through the code enforcement officers working closely with individuals to abate problems and reach compliance. From 2008 through 2011 the code enforcement unit consisted of two code enforcement officers and one clerical code enforcement assistant. In January 2012 staffing was reduced to one code enforcement officer and further reduced in January 2013 with the retirement of the assistant. The assistant position was overfilled with the hiring of a second code enforcement officer in June 2013. Some of the assistant work was then distributed to the code enforcement officers and other ECD administrative staff. In October 2013 both officers were equipped with laptop computers for field use which streamlined the code enforcement process and increased efficiencies. At the current time there are over 300 backlogged cases. Informational Only 6. Buildable Lands Report Planning Manager Charlene Anderson stated that staff conducted a Buildable Lands evaluation of Kent's actual achieved development density for 2006 through 2011. Staff reviewed final subdivisions and short plats, residential and commercial building permits that were issued, and performed a Geographic Information System (GIS) analysis of vacant and redevelopable lands available for future development. The analysis determined that there are sufficient lands in Kent to accommodate growth targets to 2031 with sufficient growth capacity from 2031 to 2035. The subsequent 20-year growth pattern would exceed capacity and require additional measures to accommodate future growth, such as higher density mixed use development on existing land. Staff will submit a report to King County Council for ratification this fall. King County expects to issue their buildable Lands Report later this yea r. Informational Only 7. Economic Development Plan/Phase II Update Economic Development Director Ben Wolters invited the Committee to review the Draft Economic Development Plan (DEDP) at a Council Workshop and submit comments within a couple weeks. Wolters stated that he will be speaking before the Chamber of Commerce the first week of June, and that staff will meet with the original stakeholders that met during the scoping phase. The Committee members agreed to review the DEDP and submit their comments as requested. Informational Only S. Economic Development Update Wolters stated that Amazon anticipates moving into a 36,000 sf facility owned by IDS by May 2014, taking on some overflow from their other existing facilities. Amazon is moving ECDC Minutes March 10,2014 Page 3 of aggressively through the permitting process to complete development of their new building facility and to move in by summer 2015. Amazon anticipates employing 400 people. Demolition and construction is underway for Trader Joes with a targeted opening date of October 2014. Several retailers are showing interest in locating near Trader Joes, including occupying a vacant commercial property located at the corner of Kent Kang ley and 132"' Wolters addressed questions raised by the Committee with respect to the potential of expanding commercial zones; such as neighborhood commercial centers or nodes where commercial activity exists within residential areas. Wolters stated that staff will be exploring how infrastructure projects should be prioritized, citing pedestrian and bike connectivity, and business center improvements that would provide connectivity. Recommendations have been made to form an advisory committee comprised of community members, city staff, and stakeholders. The developer of the Grandview Workforce Housing apartment project purchased an extension of his closing date to August in order to continue his due diligence, in anticipation of moving forward with the project. The developer has gone through the design review process, been responsive to Kent's design guidelines, resulting in a nicely designed product. The city is pursuing a voluntary management agreement with the developer and exploring how that agreement should look. An agreement will provide the City with assurance that the facility will be run well and will become a partner in the community. The facility will include; 261 housing units, a clubhouse with a business center that includes computer access for student use, an indoor basketball court, and meeting rooms. There is an outdoor pool, two tot lots, and a trail connection to a dog park located adjacent to the facility. Wolters stated that Tarragon (Kent Station developer) completed preliminary design work towards a future housing development project. However, Tarragon is faced with the challenge of dramatic construction pricing increases within the last 18 months with that trajectory continuing to move upward. Construction costs are beginning to impact the viability of projects and affects rental rates. As rents continue to rise in the Seattle and Bellevue markets despite the huge amount of new inventory being delivered; those cities are beginning to price some elements of the market out of the market, creating opportunities for Kent's urban style living. Informational Only Adiournment Committee Member Boyce adjourned the meeting at 6:45 p.m. Pamela Mottram, Secretary Economic & Community Development Committee P:\Planning\E DC\2014\Minutes\04-14-14 Min.doc ECDC Minutes March 10,2014 Page 4 of4 �� KENT W<s ul.xcron ECONOMIC & COMMUNITY DEVELOPMENT COMMITTEE MINUTES April 14, 2014 Committee Members Committee Chair Bill Boyce, Dennis Higgins, and Jim Berrios. Boyce called the meeting to order at 5:00 pm. 1. Approval of Minutes Higgins Moved and Berrios Seconded a Motion to approve the Minutes of March 10, 2014. Motion PASSED 3-0. 2. Public Hearing: Multifamily Tax Exemption (MFTE) Ordinance Planning Director Fred Satterstrom stated that this hearing is being held to consider an ordinance to extend the MFTE out five years through 2019. The Downtown Subarea Action Plan encourages residential development and the MFTE incentivizes downtown development. Satterstrom stated that the amended residential targeted area map excludes that portion of the North Park neighborhood currently zoned MRT, consistent with recent actions of the City Council with respect to the planned action ordinance (PAO) where the same area was removed from the affected areas. Staff did not change parking requirements for existing multifamily residential. Satterstrom submitted a comment letter (Exhibit 1) from Kristen Link, Development Manager with Tarragon LLC for the record; in support of extending the MFTE for five years; and recommending that developers be allowed to choose between an eight year and a twelve year multifamily tax exemption program. Eight year exemptions allow market rate housing and twelve year exemptions allow lower income housing development. The ordinance allows for eight years. Staff anticipates taking this to Council within a couple weeks and recommends moving forward with the ordinance suggesting that the twelve year exemption be brought back to the Committee as an amendment proposal. Higgins Moved and Berrios Seconded a Motion to accept the Tarragon letter (defined as Exhibit 1) into the record. Motion Passed 3-0. Berrios Moved and Higgins Seconded a Motion to Open the Public Hearing. Seeing no speakers, Higgins Moved and Berrios Seconded a Motion to Close the Public Hearing. After deliberating; Higgins Moved and Berrios Seconded a Motion recommending to the full City Council approval of the proposed ordinance to extend the multifamily tax exemption for qualifying projects in the residential targeted area as depicted in Appendix 1 of the proposed ordinance. 3. Par 3-Proposed Resolution Authorizing Comprehensive Plan Amendment Process Satterstrom stated that the Par-3 Golf site is zoned (SR-1) for low density land uses with a land use designation of Open Space (OS). Entitling this property requires undergoing a land use process, declaring an emergency (defined as "an issue of community-wide significance that promotes the public health, safety, and general welfare') to accomplish a comprehensive and zoning plan amendment outside of the annual cycle which begins each year in September. A resolution is needed authorizing planning staff to move forward with preparing the site for potential development by modifying the zoning and comprehensive plan designations. Staff will look at zoning alternatives, will conduct an analysis, consider site conditions, than propose options through the public hearing process. Wolters stated that the full process should take five months to complete along with the (RFQ/RFP) ECDC Minutes March 10,2014 Page 1 of entitlement process running concurrently. Wolters stated that he anticipates that the city will recommend hiring outside consultant assistance and Legal Counsel as Kent moves further through the entitlement process. Berrios Moved and Higgins Seconded a Motion to approve the proposed resolution to authorize staff to move forward with a comprehensive plan amendment on the Par 3 golf course site, and to recommend approval by the full City Council. Motion Passed 3-0. 4. Sound Transit Federal Way Link Extension Update Sound Transit's Federal Way Transit Extension Project Manager, Cathal Ridge explained that the Draft Environmental Impact Statement (DEIS) analyzes environmental impacts of light rail alignment and station location alternatives along the SR 99 and I-5 corridors. The DEIS will have conceptual designs of all the alternatives, will include the costs of those alternatives, will rank the alternatives in terms of ridership and other performance measures, will analyze the environmental effects of the alternatives, and will present a good understanding of the Transit Oriented Development (TOD) potential associated with the different alternatives. The DEIS will help inform the determination of the preferred alternative to move forward with the Final Environmental Impact Statement (FEIS). The DEIS is targeted for publication by the end of 2014 or beginning of 2015. The Environmental Impact Statement (EIS) considers the natural environment such as air quality, greenhouse gas emissions, ecosystems, water resources, geology and soils. The EIS also addresses typical environmental concerns and a range of impacts related to construction, safety and security, noise and vibration, visual effects, parks, land use, economic activity, business access, traffic detours, the acquisition process, displacements, and relocations. The EIS informs the decision-making process, moving toward the Record of Decision that identifies the project to be built, includes responses to comments, and identifies mitigation measures. The Record of Decision is expected in mid-2016. Ridge described some typical environmental concerns (noise, visual, security, safety) and possible measures that could be used for mitigating impacts. Sound Transit will be contacting property owners later this year about potential impacted properties from the light rail. With selection of a preferred alternative in 2015 property owners will know more about whether their properties remain impacted. In late 2016 the Sound Transit Board will select the project to the built and property owners will know the likely impacts. However, it won't be until final design in 2018 that the Sound Transit Board will authorize full or partial acquisition of properties. Constructing the rail system begins with utility relocation, demolition and site preparation, building the rail foundations, building the columns, constructing the structure guideway and then the tracks. The final step is to restore the roadways and landscaping. Construction will take from four to five years to complete and will disrupt the roadways. Signage will be in placed to detour traffic around construction sites. Protected walkways will be installed, access will be maintained to local businesses, and adequate parking for both businesses and contractor parking will be provided. The public will be kept informed with advance and timely notification of upcoming construction. A 24-hour informational hotline will be in place. A door-to-door effort will be conducted with local businesses to mitigate any issues. Ridership service is expected to begin in 2023. Informational Only S. Code Enforcement Update Building Official Bob Hutchinson stated that the responsibility for code enforcement is spread out among several departments. Economic & Community Development formed a unit that deals with specific codes, serves as a resource for other departments, as well as works closely with other departments. A civil penalty process (KCC 1.04) was created in 1993 and refined in 2008 to enhance effectiveness and efficiency. In practice, the civil ECDC Minutes March 10,2014 Page 2 of procedure is almost always used, as it has proven the most effective means of getting most code violations corrected. ECD Code Enforcement Officer RE Miller stated that admonishment letters are used as an efficient method that results in code compliance with the majority of cases. Initial attempts to obtain voluntary compliance occurs through phone or field contact, and when successful omits the need to send admonishment letters. ECD Code Enforcement Officer Doug Garrett stated that the next step is to issue a correction notice requiring a response within ten days for compliance. The correction notice warns the recipient that a Notice of Violation will be issued and a $500 penalty will be incurred if the violation is not corrected. Building Official Bob Hutchinson stated that Notices of Violation can be contested through the Hearing Examiner and involves the Legal Department. The Hearing Examiner can mitigate costs and assess fines that are sent directly to a collection agency for retrieval. 90-99 percent of code violations are resolved through the code enforcement officers working closely with individuals to abate problems and reach compliance. From 2008 through 2011 the code enforcement unit consisted of two code enforcement officers and one clerical code enforcement assistant. In January 2012 staffing was reduced to one code enforcement officer and further reduced in January 2013 with the retirement of the assistant. The assistant position was overfilled with the hiring of a second code enforcement officer in June 2013. Some of the assistant work was then distributed to the code enforcement officers and other ECD administrative staff. In October 2013 both officers were equipped with laptop computers for field use which streamlined the code enforcement process and increased efficiencies. At the current time there are over 300 backlogged cases. Informational Only 6. Buildable Lands Report Planning Manager Charlene Anderson stated that staff conducted a Buildable Lands evaluation of Kent's actual achieved development density for 2006 through 2011. Staff reviewed final subdivisions and short plats, residential and commercial building permits that were issued, and performed a Geographic Information System (GIS) analysis of vacant and redevelopable lands available for future development. The analysis determined that there are sufficient lands in Kent to accommodate growth targets to 2031 with sufficient growth capacity from 2031 to 2035. The subsequent 20-year growth pattern would exceed capacity and require additional measures to accommodate future growth, such as higher density mixed use development on existing land. Staff will submit a report to King County Council for ratification this fall. King County expects to issue their buildable Lands Report later this yea r. Informational Only 7. Economic Development Plan/Phase II Update Economic Development Director Ben Wolters invited the Committee to review the Draft Economic Development Plan (DEDP) at a Council Workshop and submit comments within a couple weeks. Wolters stated that he will be speaking before the Chamber of Commerce the first week of June, and that staff will meet with the original stakeholders that met during the scoping phase. The Committee members agreed to review the DEDP and submit their comments as requested. Informational Only S. Economic Development Update Wolters stated that Amazon anticipates moving into a 36,000 sf facility owned by IDS by May 2014, taking on some overflow from their other existing facilities. Amazon is moving ECDC Minutes March 10,2014 Page 3 of aggressively through the permitting process to complete development of their new building facility and to move in by summer 2015. Amazon anticipates employing 400 people. Demolition and construction is underway for Trader Joes with a targeted opening date of October 2014. Several retailers are showing interest in locating near Trader Joes, including occupying a vacant commercial property located at the corner of Kent Kang ley and 132"' Wolters addressed questions raised by the Committee with respect to the potential of expanding commercial zones; such as neighborhood commercial centers or nodes where commercial activity exists within residential areas. Wolters stated that staff will be exploring how infrastructure projects should be prioritized, citing pedestrian and bike connectivity, and business center improvements that would provide connectivity. Recommendations have been made to form an advisory committee comprised of community members, city staff, and stakeholders. The developer of the Grandview Workforce Housing apartment project purchased an extension of his closing date to August in order to continue his due diligence, in anticipation of moving forward with the project. The developer has gone through the design review process, been responsive to Kent's design guidelines, resulting in a nicely designed product. The city is pursuing a voluntary management agreement with the developer and exploring how that agreement should look. An agreement will provide the City with assurance that the facility will be run well and will become a partner in the community. The facility will include; 261 housing units, a clubhouse with a business center that includes computer access for student use, an indoor basketball court, and meeting rooms. There is an outdoor pool, two tot lots, and a trail connection to a dog park located adjacent to the facility. Wolters stated that Tarragon (Kent Station developer) completed preliminary design work towards a future housing development project. However, Tarragon is faced with the challenge of dramatic construction pricing increases within the last 18 months with that trajectory continuing to move upward. Construction costs are beginning to impact the viability of projects and affects rental rates. As rents continue to rise in the Seattle and Bellevue markets despite the huge amount of new inventory being delivered; those cities are beginning to price some elements of the market out of the market, creating opportunities for Kent's urban style living. Informational Only Adiournment Committee Member Boyce adjourned the meeting at 6:45 p.m. Pamela Mottram, Secretary Economic & Community Development Committee P:\Planning\E DC\2014\Minutes\04-14-14 Min.doc ECDC Minutes March 10,2014 Page 4 of4