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HomeMy WebLinkAboutCity Council Committees - Economic and Community Development - 06/08/2015 e -9 K�N P® KENY� N vi n ECONOMIC & COMMUNITY DEVELOPMENT COMMITTEE MINUTES June 08, 2015 Committee Members Committee Chair Bill Boyce and Jim Berrios present with Dennis Higgins excused. Boyce called the meeting to order at 5:00 pm. 1. Call to Order 2. Roll Call 3. Changes to the Agenda Chair Boyce amended the Agenda to include comments from the public on agenda topic 7, Accessory Dwelling Units Code Amendment, 4. Approval of Minutes Barrios MOVED and Boyce SECONDED a Motion to Approve the Minutes of May 11, 2015. Motion PASSED 2-0. 5. Multifamily Tax Exemption Code Amendment David Galazin, Assistant City Attorney, spoke about available options for amending the Multifamily Tax Exemption credit program through ordinance. Galazin researched some of the other jurisdictions that have adopted programs pursuant to RCW 84.14, and found they were all similar in terms of what they provided. However, he was unable to find any other jurisdictions that have disqualified projects or adopted criteria for projects receiving funding from other sources. Matt Gilbert, Principal Planner, spoke about the two primary types of credit or incentive programs available for multifamily housing, e.g., affordable housing through the State Housing Finance Commission and energy efficiency through retrofitting. Gilbert stated that should this provision be put in place, developers would be foregoing any other affordable housing types of incentives. Ben Wolters, Economic and Community Development Director, spoke about affordable housing in Kent and stated that there are sufficient incentive programs available to be able to eliminate the option of double-dipping while keeping the overall tax exemption opportunity. At the July Committee meeting staff will present additional market research and a draft ordinance for consideration. Information Only 6. Brownfields Grant Update Erin George, Senior Planner, referenced a PowerPoint presentation and gave an overview of the Brownfields Assessment Grant. The brownfield assessments facilitate redevelopment of underdeveloped, contaminated land. George advised that the $400,000 grant funding can only be used for assessment activities and not the actual cleanup. George stated that with assistance from City consultant Stantec, the citywide inventory of the brownfields identified 1000 potential sites from 28,000 parcels. Those sites were scored and ranked by environmental and economic (e.g., vacancy) indicators and narrowed down to 36 high opportunity brownfields sites which are now being evaluated for possible use of the grant funding for assessments. George spoke about the 3 focus areas containing multiple brownfields: Meeker Corridor, Kent Highlands, and the Midway. George elaborated on the Kent Highlands focus area centered on the former Kent Highlands landfill. George stated that a Kent Highlands Stakeholders Committee was formed and a design charrette was held in July, 2014, to envision how the area could redevelop. Renderings which detail a mixed use development, gateway location, and regional draw were created. George pointed out a potential retail area, hotel, townhomes, corporate headquarters, offices, an amphitheater, and a park and ride on one of the renderings, Another rendering highlighted the retail center vision of outdoor vendors, trails, and an overall vibrant site. George spoke of the market analysis, near-term, mid-term, and long- term opportunities. George stated that the renderings were compiled with background information, landfill data, and a market analysis, into a Kent Highlands Focus Area Brownfield Redevelopment Study. George elaborated on sites in the Meeker Corridor focus area, i.e. the vacant Cancer Care property at 64th & Meeker, a former Shell gas station near Russell Road & Meeker, a former dry cleaner near 6th & Meeker and the Sound Transit gravel lot at Smith and Railroad Avenue. George stated that the grant funding cannot be used directly for the Shell gas station due to Shell Company being liable for the contamination. George mentioned that a letter was sent to Shell to stress the importance of the site cleanup. Staff will continue to contact and work with Shell to continue pressure on the cleanup. George stated that the City is reserving some grant funding for brownfields in the Midway focus area, pending Sound Transit's selection of the preferred light rail alignment. Grant funding will be focused on sites that will not be assessed by Sound Transit, with the goal of further supporting transit oriented development in the area. George spoke about the the first site to get property owner approval, the Maralco site. The former aluminum smelter site ranked number 1 on the inventory. George stated that they went bankrupt, leaving behind 20,000 cubic yards of black dross and a vacant building full of hazardous waste. George mentioned that the current property owner bought out two liens on the site but the uncertainty of the cost of cleanup caused the site to sit vacant for 30 years. With EPA approval, the property owner has agreed to share assessment costs with the City and pay 1/3 of the cost to complete a Phase I and Phase II Report and a Cleanup Action Plan with the goal to come up with the actual cost of the cleanup. George stated that the property presents economic opportunity as re-use of the site would provide jobs and generate tax revenue. George advised that if brownfield parcels in Kent were cleaned up, these parcels could gain up to $21 million in increased taxable value. George stated that the City is halfway through the grant funding and was provided with a one-year extension from EPA to September 2016. George confirmed that the City can provide cost information and help with connecting property owners with further grant funding for cleanup, special financing, or help to prepare to sell the property, but it's ultimately up to the owner to do the cleanup. Information Only 7. Accessory Dwelling Units Code Amendment Hayley Bonsteel, Long Range Planner/GIS Coordinator, described Accessory Dwelling Units (ADUs) as fully functioning units built in addition to a primary single family residence. ADUs capitalize on housing stock and provide a source of income and flexible and creative living solutions. In Kent, detached ADUs are limited to 800 square feet or 1/3 of the principal unit, whichever is smaller. If the principal unit is new construction, ADUs are limited to 40% of the principal unit. Bonsteel spoke about a requested zoning code amendment (DKT-2014-1) for ADUs to allow for an ADU and garage to be built on the same footprint. Current regulations in Kent do not ECDC Minutes June 8,2015 Page 2 of 4 allow for a detached garage and detached ADU to be in the same structure without significant size restriction. Bonsteel referenced page 121 of the agenda packet which shows a rendering of an example of a base lot. Bonsteel did a massing study and found that in Bellevue, Bothell, Tukwila, and Tacoma, ADUs cannot be built on top of a garage, However, in most other places, footprints can be combined into one structure. Bonsteel stated that through this request for zoning code amendment, staff identified a number of areas of the code that could be clarified. Bonsteel suggested options for addressing ADU development and analyzing a larger code amendment managing accessory structures on residential lots. Options include just addressing the footprint issue and whether to count square footages separately, looking into adding regulations for managing overall accessory structures, or promoting and incentivizing ADUs to encourage more to be built in the city. DKT-2014-1 applicant, Craig Preston, conveyed the need for a zoning code amendment for ADUs. Preston described his proposal to build a barn structure with a shop below and an ADU on top for a family member. Preston states that the structure meets all requirements as a separate unit but not if the unit is counted within the same footprint. Preston offers his property for marketing purposes. Charlene Anderson, Planning Manager, stated that when the ADU code was established and brought to Council, the intent was for the ADU and garage to be counted in its entirety. Staff seeks Council direction on how to proceed, whether it be simply a clarification, analysis of a broader perspective on ADUs and other accessory structures, or a combination of the two. Berrios would like to see samples of the current ADUs whether from Kent or Auburn. Chair Boyce asked for more research analysis and examples to bring back to Committee around November or December, 2015. Information Only 8. School District Capital Facilities Plan Anderson spoke about a letter received from the school district commenting on the lack of capacity at schools surrounding the proposed Bandon West Subdivision. Anderson stated that the City will send a response to the school district advising that school impact fees will be collected based on the current interlocal and code language to address the impacts of development on schools. Anderson stated that the school districts serving Kent submit to the City Council on an annual basis their capital facilities plans which include their 6-year enrollment projections, standard of service, existing facilities and available capacity, and sources of funding for meeting the adopted standard of service. Based on the school district capital facilities plans, school impact fees are assessed on new dwelling units in the city. Wolters mentioned that the impact fee is based on the capital facilities plan developed by the school district and approved by the school board. Wolters stated that the City will follow up with Dr. Stedry, Chief Business Officer for the Kent School District for clarification of the comment letter and suggest having a more formal meeting regarding projected student growth. Information Only 9, Sound Transit Update Anderson stated that on May 26, 2015, the City submitted comments to Sound Transit (ST) for the Federal Way Link Extension (FWLE) which includes a station in the Kent-Des Moines area, and potential stations at S. 26o`h Street, as well as the Star Lake Park and Ride. ECDC Minutes June S,2015 Page 3 of 4 Anderson mentioned that the comments included as an attachment the May 5, 2015 letter to the ST Board from Mayor Cooke and Council President regarding a preferred alternative. Anderson elaborated on Staffs comments on the Draft Environmental Impact Statement (DEIS) including a pedestrian bicycle overpass over SR99, future I-5 overpass from the West Hill neighborhood to connect to the east side of I-5, minimizing solar, visual, and noise impacts to those residences along I-5 in Kent, basic traffic impacts, and the need for east-to-west bus connections to and from the Sounder light rail to serve the industrial area. Anderson stated that comments on the DEIS can be viewed at www.federalwaylink.org. Information Only 10. ShoWare Update and Economic Development Update Report Wolters stated he is working on a response letter to the editor of the Kent Reporter regarding comments on ShoWare's financial status. The letter references some non- restaurant businesses that have benefitted as a result of ShoWare being in Kent. Wolters spoke about ShoWare's income statement being ahead of budget as ShoWare is currently under its projected loss amount of over $400,000. Wolters mentioned the ongoing repairs and monitoring of the ice plant and stated that once the hockey season was complete, the system was immediately shut down and technical experts from PermaCold took apart all the machinery. Results showed that repairs made in 2014 were effective as there are no recurring or new damages to the equipment. Wolters stated that the City is evaluating and will likely move forward with recommended alterations from PrermaCold to make the equipment run more efficiently and to reduce any future malfunctions. Wolters stated that the City is in ongoing discussions with the parties involved in the construction of ShoWare and there are settlement talks being scheduled over the summer. Wolters spoke about the collaboration between the Economic and Community Development department (ECD), the Kent Downtown Partnership (KDP), and the Parks Cultural Services Group to bring together both public and private funding to create an attractive gateway at the Meeker Street underpass of 167. At a recent KDP fundraising and auction dinner at the ShoWare Center, $9,500 was raised to go toward that project. Wolters mentioned the funds carried over from Council ($61,000) to implement the Downtown Strategic Plan and the Economic Development Strategy. Those funds are sufficient to do the basic cleaning and replace the fencing. The Public Arts Group could put forth $20,000 toward the artistic gateway feature plus about $10,000 from KDP. Bill Ellis, Economic Development Analyst will present this to the service clubs including the Kent Lions who have expressed interest in the project. Wolters will continue to update the Committee on this project. Wolters spoke about the success of Agave and the upcoming opening of Wingstop in the Kent Station, and the development of Cafe Rio and Habbit Burger in the Lake Meridian Shopping Center. Information Only Adiournment Chair Boyce adjourned the meeting at 6:45 p.m. — Alixandria Lu, lecretary, Economic & Community Development Committee al\P:\Planning\ECDC\2015\Minutes\6-845 Min.doc ECDC Minutes June 8, 2015 Page 4 of 4