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HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 5/7/2019 Approved Kent City Council City Council Regular Meeting Minutes May 7, 2019 Date: May 7, 2019 Time: 7:00 p.m. Place: Chambers 1. CALL TO ORDER / FLAG SALUTE 2. ROLL CALL Attendee Name Title Status Arrived Toni Troutner Councilmember Present Marli Larimer Councilmember Present Bill Boyce Council President Present Dana Ralph Mayor Present Satwinder Kaur Councilmember Present Dennis Higgins Councilmember Present Les Thomas Councilmember Present Brenda Fincher Councilmember Present 3. AGENDA APPROVAL A. Approve the Agenda as Presented RESULT: APPROVED [UNANIMOUS] MOVER: Bill Boyce, Council President SECONDER: Les Thomas, Councilmember AYES: Troutner, Larimer, Boyce, Kaur, Higgins, Thomas, Fincher 4. PUBLIC COMMUNICATIONS A. Public Recognition 1. Employee of the Month Mayor Ralph recognized Kara Moore, Administrative Assistant II in the Public Works Operations Department, as the City's May Employee of the Month. Tim LaPorte, Public Works Director, expressed his appreciation of Moore and the tremendous amount of work she does. Dave Brock, Deputy Director of Public Works Operations, indicated Moore does a wonderful job and he is fortunate to have her in the Operations Division of Public Works. Brock expressed that Moore is being recognized by her peers - the highest form of recognition that an employee can Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 2 of 14 receive, and that she supports over 135 Public Works Operations employees. 2. Proclamation for Music4Life Month Mayor Ralph presented Linda MacIntosh, from the Kent Arts Commission and Marge and Harry Williams and Hira Singh Bhueller from the Kent Rotary with the Music4Life Proclamation. McIntosh provided details regarding the program. 3. Proclamation for Affordable Housing Week Mayor Ralph read the Proclamation for Affordable Housing Week. 4. Proclamation for National Police Week Mayor Ralph presented Chief Rafael Padilla with the Proclamation for National Police Week. Chief Padilla expressed his appreciation of the proclamation and indicated that next week is a week set aside by the nation for law enforcement offices to gather and participate in planned events which honor those that have paid the ultimate sacrifice. Chief Padilla indicated a group from the Kent Police Department will attend events that will honor Officer Moreno and Detective Focht. Chief Padilla expressed his appreciation of the public’s support of the Kent Police Department. Chief Padilla thanked his officers for putting people first, valuing people and valuing the mission. Chief Padilla indicated that he is proud of the Kent Police Officers and that they are the finest officers in the country. Mayor Ralph indicated how important it is to recognize the sacrifices our officers make to protect the community. B. Community Events Boyce advised of past and upcoming events at the accesso ShoWare Center, including upcoming graduations. Councilmember Kaur invited the public to attend the Kent International Festival on May 18th at the accesso ShoWare Center. The Festival is a celebration of cultural diversity. The event is free. Kaur expressed her appreciation of the Kent Police Department’s work to make the Khalsa Day celebration and parade on May 4th a safe and fun event for the public. Councilmember Fincher invited the public to attend the Fishing Experience, hosted by the rotary Club of Kent and City of Kent Parks Department that will be held on May 18th at the Old Fishing Hole near Riverbend Golf Course. Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 3 of 14 5. REPORTS FROM STANDING COMMITTEES, COUNCIL, AND STAFF Mayor Ralph advised that Sound Transit is in the process of selecting a site for the Operations and Maintenance Facility. One of the six sites is the Kent transit-oriented-development site, commonly known as the Lowe’s/Dick’s site. Kent does not believe the Operations and Maintenance Facility fits in Kent or in Sound Transit’s plan. The City has been working with the Sound Transit Board and public to have the Lowe’s/Dick’s site removed from the list. Sound Transit’s board will make their final decision on May 23rd. Council President Boyce provided a review of the two workshop presentations from tonight that included the 2018 Financial Wrap up and 2019 Traffic Sustainability. Boyce serves on the Sound Cities Association Public Issues Committee that will meet on May 8th. Councilmember Larimer serves on the Sound Cities Association Advisory Council on Aging and Disability Services that will meet on May 10th. Councilmember Troutner serves on the Sound Cities Association Regional Law, Safety and Justice Committee that will meet on May 23rd. Councilmember Troutner chairs the City’s Public Safety Committee that will meet on June 11th. Councilmember Fincher serves on the Sound Cities Association King Conservation District Advisory Committee, that will meet on May 15th. Councilmember Fincher serves on the Sound Cities Association Mental Illness and Drug Dependency Oversight Committee. During the last meeting there was a presentation on mental health care for older adults. Councilmember Fincher serves on the City’s Arts Commission and invited the public to visit the art gallery in the City’s Centennial Center. Fincher provided details on the newly installed wraps on traffic controller boxes. Fincher invited the public to participate in the latest Kent Creates contest “Awakenings.” The deadline to submit art is June 30th. Councilmember Higgins serves on the Sound Cities Association Regional Transit Committee that met on April 2nd and heard presentations on equity and mobility. Higgins indicated Metro is moving towards electrification of the bus fleet. Metro is looking for a new bus base in Kent. Councilmember Higgins chairs the City’s Public Works Committee that met yesterday. Staff will present a timeline for quiet zone infrastructure during the May 20th meeting. Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 4 of 14 Councilmember Kaur serves on the Sound Cities Association Domestic Violence Initiative Regional Task Force. During the May 2nd meeting, there was a presentation on how to stop violence before it starts. The presentation focused on teen dating. The committee is drafting a Proclamation for Domestic Violence Awareness Month. Councilmember Kaur chairs on the Sound Cities Association Puget Sound Clean Air Agency Advisory Council that will meet May 8th. Councilmember Thomas serves on the Puget Sound Regional Fire Authority Governance Board that will meet on May 15th at 5:30 at station 78 in Covington. Councilmember Thomas chairs the City’s Operations Committee and directed the public to the minutes of the meeting for details. A. Chief Administrative Officer Report Chief Administrative Officer, Derek Matheson conveyed that the City of Kent will receive an award from the Association of Washington Cities for the DUI therapeutic court. Matheson indicated Kent will honor legislators for a successful 2019 legislative session. The City had five primary goals, and all were accomplished with the support of legislators. The Chief Administrative Officer’s report is in today’s agenda packet and there is no executive session in tonight’s meeting. 6. PUBLIC HEARING A. Trucking-Intensive Land Uses Interim Zoning Ordinance - Public Hearing Mayor Ralph provided a brief background of the interim zoning Ordinance No. 4320 that was passed on April 2, 2019. • This interim zoning ordinance limits the size of new construction in the M1 and M1-C zoning districts, and regulates development in those zones via a “dock-high door” ratio to preclude the development of the most trucking- intensive building types. • The ordinance also directs staff to conduct a work plan which includes the study and completion of a comprehensive subarea plan for the manufacturing and industrial area of the valley. • The ordinance was passed by a unanimous vote of the Council as an emergency ordinance and became effective immediately. • In accordance with state law, a public hearing must be held regarding an interim zoning ordinance within 60 days of its passage. • At the last Council meeting, the Council set today as the day for the public hearing. • This is a public hearing. There will be a presentation by staff, and afterwards, the public will be permitted to provide comment and testimony. Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 5 of 14 If any member of the public wishes to testify on this matter, please sign up with the Clerk at the front table. Mayor Ralph opened the public hearing for the Trucking-Intensive Land Uses Interim Zoning Ordinance and called for the staff presentation. • Hayley Bonsteel, Senior Long-Range Planner from the Economic and Community Development Department gave brief presentation. Bonsteel provided a review of the same presentation from the April 2, 2019 City Council meeting. What we know: • Trucking-intensive land uses such as warehousing and distribution have significant impacts to city infrastructure • Costs borne by city post-SST • The Kent Industrial Valley is highly desirable for this type of land use What we don’t know: • Best way to regulate trucking-intensive land uses - that’s what work plan is for. Need more information to properly assess. General principles that we know: • Diversification is good • Overspecialized buildings types can become a problem if the market or the sales tax structure changes Details Ordinance No. 4320: • M1, M1C • Dock high doors - as proxy for trucking activity • Square footage - as combo of trucking and size is the real issue • This amendment is in place for one year and is related to the Rally the Valley Subarea Plan Why M1/M1C? • City has assets in M1 and M1C zones - Existing office buildings. Want to protect assets during planning process. • High opportunity as compared to M2 and M3, which are generally already built out with warehouse. Why this approach? • Trying to cast just the right size net to pause large footprint warehouses without impacting manufacturing How it applies • New construction and expansions (but new expansion is counted on its Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 6 of 14 own, not including existing square footage) • If uses need to be rebuilt, that is grandfathered • Does not regulate the use out of the zone - so existing uses are unaffected Rally the Valley work plan · More than land use · Programs, policies, partnerships, financial tools and fee structures • Maximizing economic potential of the Kent Industrial Valley • Unlikely to prohibit these types of uses, but need to figure out how to regulate them • Policy changes based on true understanding of the costs of different use types • More nuanced and thoughtful regulation - taking into account different classifications within industrial real estate products and their ability to meet different demands • Making it a great place for industrial workers. Industrial jobs are a part of our past, present and future and we need to support our existing uses by this pause that helps preserve our ability to plan. Until Rally the Valley is complete, we cannot allow business as usual to continue in our highest opportunity industrial land that is so in demand right now. These large footprint uses that basically pass boxes through from one truck to another could continue developing at a pace that makes policy work moot. Bonsteel confirmed that this Ordinance is only about new construction for the next year. Bonsteel provided details regarding the impact of the change from origin- based to destination-based streamlined sales tax distribution. Kent is currently losing approximately $13 million per year. Fincher pointed out that the loss of streamline sales tax has impacted the funds used used to pay for police response, roads, emergency services and utilities. Public Hearing Speakers: Peter Steinbrueck, Seattle Port Commissioner, Managing partner member of the Northwest Seaport Alliance and member of the Growth Management Planning Board of the Puget Sound Regional Council representing five regional ports. Steinbrueck appreciates the short and long term financial concerns of the City of Kent that have resulted from the streamline sales tax changes. The Northwest Seaport Alliance and both ports have lobbied hard to maintain existing sales tax backfill funds from the legislature. Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 7 of 14 Steinbrueck is concerned that the interim land use restrictions on industrial lands run contrary to meeting the region's long-term lands needs. The Port is open to finding constructive approaches to addressing City's long-term sustainable revenue needs with all available revenues. Concerns were expressed regarding the one-year restriction - it could hamper near-term options for importers. Steinbrueck is also concerned this ordinance sets potential poor precinct for other jurisdictions to follow. Steinbrueck detailed the Port of Seattle's investment to improve freight mobility in Kent. The Northwest Seaport Alliance appreciates the City's concerns over ongoing revenues. The land use changes in curtailing warehouse logistics uses in the Kent Industrial Valley are not the only or the best way to address this challenge. Steinbrueck suggested revenue options that included LIDs and a Transportation Benefit District. Steinbrueck looks forward to robust dialogue with the Mayor and Council. Mike Pruett, a Renton resident with Segale Properties spoke in opposition to the ordinance. Pruett indicated Segale is the most impacted property owner by the interim land use ordinance. Pruett provided details regarding Segale's Pacific Gateway properties. There are two properties left to develop - one is a 10.25-acre site that has a complete set of plans ready to submit to the City. Segale has been in discussion with multiple developers on the second parcel, a 38-acre site. Segale has millions invested in the properties. Pruett has met with the Mayor, Council President Boyce and City staff to discuss this ordinance and were invited to Rally the Valley advisory committee. During that first meeting, the planners and consultants presented three potential visions introducing mixed use development into the industrial area. The advisory committee did not give a lot of positive feedback to visions. There was no support of introducing multi-family potential uses into the industrial area. Pruett believes the interim ordinance should be lifted. He wants the Rally the Valley process to continue, but believes it needs to be focused where mixed use development is more appropriate and has a better chance of occurring. This is a very important industrial distribution area - a huge economic engine for the region. Kent should look at a user fee to address impacts. Pruett (Segale Properties) submitted a letter dated May 7, 2019 RE: Interim Zoning Ordinance No 4320 and "Rally the Valley" Planning Process to be made a part of the record. Bonsteel indicated that Kent does not currently have a specific vision of mixed uses in the industrial valley. Rally the Valley will address identifying mixed uses in the industrial valley. Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 8 of 14 Nancy Rogers, a Mercer Island resident, is a land use attorney with Cairncross & Hempelmann and is speaking on behalf of Segale Properties. Rogers requested Council take action to repeal the interim ordinance. The Rally the Valley planning process is a good idea and should continue, but sees no reason for the ordinance to stay in effect. It is effectively a moratorium on industrial distribution warehouses. Removing the moratorium will allow the City to continue to plan without any major negative impacts on industrial lands. Rogers indicated the vast majority of industrial lands are already developed. Kent serves an important role in providing industrial distribution. The buildout of Segale's two parcels, which are negatively impacted by the zoning ordinance, would represent less than 1% of the existing Kent Valley total. Kent should repeal the ordinance and continue planning on the process to help encourage as redevelopment occurs. The moratorium is legally vulnerable, the way that it is being adopted, it targets Segale and REI and is effectively leading towards a "spot zone" that is illegal in the State of Washington. The ordinance was adopted for an entire year, rather than a six month period. You are entitled to do that under state law if you have a work plan. Rogers indicated the Rally the Valley process, that is stated to be a work plan, does not meet the requirement. Rogers requested the Council repeal the interim zoning regulations tonight, continue the Rally the Valley process, and continue to work with the community, local government, industrial owners/operators to address revenue issues. Rogers (Cairncross & Hempelmann) submitted a letter dated May 7, 2019 RE: Request to Repeal Ord. No. 4320, Interim Zoning and Moratorium to be made a part of the record. Andera Reay, a resident of Burien, and president and CEO of the Seattle Southside Chamber of Commerce, expressed hope that as Kent continues to examine and study land goals, issues and constraints, that it consider the Chamber a partner in finding complex solutions. John Naylor, President of Western Distribution Services and current chairman of the Seattle Southside Chamber of Commerce, spoke as the CEO of Western Distribution. Naylor indicated he has reduced his presence in Kent due to increased B&O taxes and will be moving out of Kent. John Pietromoraco, a resident of Mercer Island and owner of Pietromoraco Properties, indicated he owns property in Kent. Pietromoraco spoke on behalf Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 9 of 14 of NAIOP Commercial Real Estate Development Association. Pietromoraco requested Council Repeal the interim zoning regulations of Ordinance No. 4320, Continue the Rally the Valley planning process, and work with industry and land owners to explore direct solutions to fund road maintenance in the City's industrial areas. Pietromoraco submitted a letter dated May 7, 2019 from NAIOP Commercial Real Estate Development Association to be made a part of the record. Mayor Ralph indicated that no industrial jobs will be going away in the valley as a result of the planning process. Virginia Micholson, a Seattle resident and land use attorney representing a land owner in the Kent valley, indicated her client will be negatively impacted by this ordinance. Micholson requested the Council repeal the moratorium and to continue to work with industry, the community and individual land owners to come up with a better solution. Mayor Ralph indicated there is not a moratorium in place, this is an interim zoning ordinance that will allow the City to continue with the planning process. Timothy Peterson, a Kent resident, indicated wages have not kept up with the price of housing and the tax revenue from the state is not taking care of our City. Kent can't afford to pay for police to protect property. Petersen expressed appreciation of the Council for continuing to take care of the residents of Kent. Everyone needs to work together to come up with solutions to find ways to pay for services. Boyce, who chairs the City's Economic and Community Development Committee and has served on it for eight years, indicated that revenue is generated through business and he is pro-business. Boyce indicated the City needed to introduce B&O taxes and then increase them. Boyce indicated the City must be run like a business. Warehouses have been very good to the City of Kent, but since the state changed the distribution of sales tax, the City has had to make changes to its business model. Boyce provided details regarding current and future streamlined sales tax mitigation funds that will be received by the City. Boyce stated we will not lose warehouse jobs and need to plan what the new warehouses will look like and make adjustments. Boyce asked the public to be patient and work with us as we move forward. Larimer indicated this ordinance is about Kent's future and residents. The Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 10 of 14 City needs to take the time to make the right decisions on development. Thomas expressed his desire to have the businesses and staff work together. Mayor Ralph summed up action taken and expressed her support for Council action. Mayor Ralph reiterated that this ordinance only affects the M1 and M1C zones and it is not changing underlying zoning of existing buildings. The City needs to figure out how to support infrastructure. Mayor Ralph agrees that time is an issue. This conversation should have taken place 10 years ago. There is no plan to make the Kent valley a Kent Station or Auburn Supermall - there will not be radical changes. The City needs to consider introducing retail or commercial uses in various locations that will help double the revenue to Kent which will allow us to provide parks, road infrastructure and police services. This interim zoning ordinance will push the pause button to allow for a planning process. Mayor Ralph is willing to meet with anyone who wishes to be a part of the conversation. We need to take care of the city of Kent. Kent has lost $13 - 14 million per year in streamlined sales tax. Mayor Ralph hopes to have a high-level recommendation by September for comment. Council President Boyce requested the committee to be efficient, but move fast. MOTION: (no action required) B. Accept the documents submitted during the public hearing to be made a part of the record RESULT: APPROVED [UNANIMOUS] MOVER: Bill Boyce, Council President SECONDER: Les Thomas, Councilmember AYES: Troutner, Larimer, Boyce, Kaur, Higgins, Thomas, Fincher C. Close the Public Hearing Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 11 of 14 RESULT: APPROVED [UNANIMOUS] MOVER: Bill Boyce, Council President SECONDER: Les Thomas, Councilmember AYES: Troutner, Larimer, Boyce, Kaur, Higgins, Thomas, Fincher 7. PUBLIC COMMENT Cheryl DeBruler, a resident of the Shadow Run neighborhood spoke in opposition of the residential parking zone in their neighborhood. There are exisiting no parking zones in neighborhood. DeBruler requested the City not move forward with residential parking zone in Shadow Run Kristine Dillon, a resident of Shadow Run development for 18 years. Safety is an issue in the Shadow Run and Glencarin neighborhoods. She was unaware that the no parking signs were not enforceable. Dillon requested the City enforce the no parking signs. Russ Hanscom, a Kent resident, expressed his appreciation of the past work of Councilmember Fincher. Hanscom also expressed his appreciation of the council members serving the residents of Kent. Hanscom requested the City program the traffic signals near the railroad crossing gates to have a red light when the crossing gates are down, and then a green light for a couple of cycles when the crossing gates are up. 8. CONSENT CALENDAR Councilmember Higgins spoke regarding Consent item D "Ordinance Amending Chapter 9.38 of the Kent City Code - Mill Creek and Kentridge Residential Parking, and indicated that passing this ordinance, after many months of debate, does not mean we can't continue to improve what is passed. Higgins will look into addressing concerns raised tonight. Mayor Ralph indicated that the public should continue to communicate with the Council and Public Works Committee. She wants this program to work for the neighborhoods. RESULT: APPROVED [UNANIMOUS] MOVER: Bill Boyce, Council President SECONDER: Les Thomas, Councilmember AYES: Troutner, Larimer, Boyce, Kaur, Higgins, Thomas, Fincher A. Approval of Minutes 1. Council Workshop - Workshop Regular Meeting - Apr 16, 2019 5:00 PM Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 12 of 14 2. City Council Meeting - City Council Regular Meeting - Apr 16, 2019 7:00 PM B. Consultant Services Agreement with Otak, Inc. for Summit Landsburg Road and Rock Creek Culvert Replacement Project - Authorize MOTION: Authorize the Mayor to sign a Consultant Services Agreement with Otak, Inc. in an amount not to exceed $63,450 for preliminary design of the Summit Landsburg Road Culvert Replacement at Rock Creek, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. C. Consultant Services Agreement with Natural Systems Design, Inc. for Mitigation Design for the Mill Creek - Authorize MOTION: Authorize the Mayor to sign a Consultant Services Agreement with Natural Systems Design, Inc. in an amount not to exceed $92,495.00, for the design of Mill Creek Reestablishment Project mitigation plans subject to final terms and conditions acceptable to the City Attorney and Public Works Director. D. Ordinance Amending Chapter 9.38 of the Kent City Code - Mill Creek and Kentridge Residential Parking Zones - Adopt MOTION: Adopt Ordinance No. 4322, which amends chapter 9.38 of the Kent City Code to add additional parking restrictions in specified locations and to establish residential parking zones in the Mill Creek Neighborhood and in the north sections of the Glencarin Division 1, Shadow Run, and Jason Lane neighborhoods. E. Set May 21, 2019 for the Public Hearing on the 2020-2025 Transportation Improvement Program (TIP) - Authorize MOTION: Set May 21, 2019 as the public hearing date to consider adoption of the 2020-2025 Six-Year Transportation Improvement Program. F. 2014 Third Quarter Fee In Lieu Funds Re-allocation - Authorize MOTION: Authorize the reallocation of $20,550.00 of fee-in-lieu funds dedicated to Springwood Park and Lake Meridian Park, amend the Community Parks Reinvestment Program budget, and authorize the future expenditure of these same funds for capital improvements at Meridian Glen Park. G. Terreno Valley Corporate Ground Lease - Authorize Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 13 of 14 MOTION: Authorize the Mayor to sign a Ground Lease with Terreno Valley Corporate in the amount of $30,577.27 per year for five years, for parking and storage, subject to final terms and conditions acceptable to the City Attorney and Parks Director. H. Tenant Name Change for Restaurant Space at Riverbend Golf Complex – Authorize MOTION: Ratify the execution of the Riverbend Golf Complex Restaurant Lease Agreement with Half Lion Public House LLC signed by the Mayor on February 22, 2019, and any subsequent actions taken to date in accordance with the terms and conditions of the Lease Agreement. I. 4th Avenue and Meeker Street Complete Streets Project- Accept as Complete - Authorize MOTION: Authorize the Mayor to accept the 4th Avenue and Meeker Street Complete Streets Project as complete and release retainage to R.W. Scott Construction Co., upon receipt of standard releases from the State and the release of any liens. 9. OTHER BUSINESS None 10. BIDS A. 2019 Crack Sealing - Award Tim LaPorte, Public Works Director provided details regarding the 2019 Crack Sealing Bid. MOTION: Award the 2019 Crack Sealing Project to Huizenga Enterprises, LLC in the amount of $168,736.66 and authorize the Mayor to sign all necessary documents, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. RESULT: ADOPTED [UNANIMOUS] MOVER: Dennis Higgins, Councilmember SECONDER: Brenda Fincher, Councilmember AYES: Troutner, Larimer, Boyce, Kaur, Higgins, Thomas, Fincher B. Downey Farmstead Restoration Phase 2 – Frager Road Realignment and Contaminated Soil Removal - Award Kent City Council City Council Regular Meeting Minutes May 7, 2019 Kent, Washington Page 14 of 14 Tim LaPorte, Public Works Director provided details regarding the Downey Farmstead Restoration Phase 2 - Frager Road Realignment and Contaminated Soil Removal Bid. MOTION: Award the Downey Farmstead Restoration Phase 2 - Frager Road Realignment and Contaminated Soil Removal Project to Scarsella Bros., Inc. in the amount of $691,311.50 and authorize the Mayor to sign all necessary documents, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. RESULT: ADOPTED [UNANIMOUS] MOVER: Dennis Higgins, Councilmember SECONDER: Toni Troutner, Councilmember AYES: Troutner, Larimer, Boyce, Kaur, Higgins, Thomas, Fincher 11. EXECUTIVE SESSION AND ACTION AFTER EXECUTIVE SESSION None 12. ADJOURNMENT Meeting ended at 8:33 p.m. Kimberley A. Komoto City Clerk STATE OFWASHINGTON, COUNTY OF KING lAFFIDAVIT OF PUBLICATION PUBLIC NOTICE Polly Shepherd, being first duly sworn on oath that she is the Publisher of the Kent Reporter a weekly newspaper, which newspaper is a legal newspaper of general circulation and is now and has been for more than six months prior to the date of publication hereinafter referred to, published in the Englishiunguug" continuously as a weekly newspaper in King county, washington. ftti Kent Reporter has been approved as aLegalNewspaper by order of the Superior Court of the State of Washington for King County. The notice in the exact form annexed was published in regular issues of the Kent Reporter (and not in supplement form) which was regularly distributed to its subscribers during the below stated period. The annexed notice, a: Public Notice was published onApril 2612019. The full amount of the fee charged for said foregoing publication is the sum of $104.22. Polly Shepherd Publisher, Kent Reporter sworn to me this 26th day of April,20lg. Gale Gwin, Notary Public for the State of Washington, Residing Covington, Washington ^"1i$$:ilfiY,.r\*' GAt-l: i.,,"'.',.')" .'1.'3,::;;:;)' /'/ :..'i,;i ..d15ttt;:ti"r,''.".'+7 : i Arn- 'i:t 2i,tt! 'i."tAtlv -'r : .:,:;j^i. |'LIBIJC jt S' .. <$'."?r ,"';\ ; . -:";, . O^,! I :lgJf. " "'.tO ""':n " 4,,",',i!! A SH\$t i"n'" j;JlSllt!' 12 Friday, April 26, 201 9 Kent Reporter Profuslonal S€rvlc66 Service Directo{y tr ;fia L6gal Notlcea Lsgal Notlcaa Council will hold a public hearing at 7 p.m. on Tuesday, May 7,2019, in the Council Chambers at Kent City Hall, 220 4th Avenue Soulh, Kent. All interesled invited to be givon to speak. Members bidders, wilh the suc- cesslul biddor brush cutting all 66,359 linear feet durinq 2019 only or doing the work each (3) De" threetheduringyear pending on the bidders' responses, the King County Drainage District#l Commissioners re- serve the right, in their sole discretion, to award lhe contract as a three- year contract to one bid- der, or to award separ- at€ contracts for 2019, 2020, and 2021 and forth€ remaining years. They also reserve the right lo award lhe Vege-tation Enhancement Planting bid as part ot or separale from the Brush Cutling awards. Work will be accomplished be- tween the dates ol 15 Sept to 31 Dm each cal- endar year. lntersted Bidders can pick up Pro-jmt i Bid information packels from the Abbey Road Group Land De.velopmont Services Company LLC, from 3 May 2019 to 10 iray 2019, Monday throuqh Friday from 7:30 am to 4:00 P[,] at the Abbev Boad Group Land De1velopment Services Company LLC Puyallup Ofiice located at 2102 E lvlain Avo, Suile 109, Puyallup, WA 98372. #852734 4t19h9,4t26/19 will opportunity public may also submit writlen commenls at the moet- ing, or in advance by reoular U.S. Mail to the Ci[y Clerk's Ofiice, 220 Fourth Avenue South, Kenl, WA 98032, or by eltrtronic mail to CityClerk@ KentWA.gov. Any writlen comments sent in advance must be rtreived no lal6r than 4 p.m. on May 7, 2019, in order to be considor€d. Any porson requiring a disability amommoda- tion should contact the City Clerk's Office in ad- vance at 253-856-5725. For TDD relay service,call the Washington Telecommunications Re- lay Service at 7-1-'l. Kimberley A. Komoto City Clerk 253-856-5725 Published in the Kent Reporter April 26, 2019. #852240 PT.JBLtC ]'tOTtCE DARCY READ MEMORIAL PRESCHOOL NOTICE OF NONDIS- CRIMINATORY POLICY ASTO STUDENTS persons attend and the an of Homo Seavl63 Hom€ Sorvl@s Home Sorvlcs FatmlGarden S€rvlce hnd3c6F Servlce. Trslshr{b Car6 BOSALE'S Lawn and Gaden YARDWORK LANDSCAPING Mowing, trimming, and much morell Call Alkedo 253-202-9372 lnc. Mowing, Weeding, Trimming, Pruning, Cleanup, Pressure Washing, iraintenance, Sod & Fences Estimates n5 Floor ln3tall/Sorvlc€ Adverlise your Homo Sorvlcsr uocomino oaraoe sale in vour Io-cil coirmunitv Reach over a million n6wsoao6t and onrnc '''-"-':': - -- : whenvouadvertiseinto reach thousands of .. ^ ':- --: .' . -:-- -- - the Seruice Directory.households in your area. cal 8S_38&25? or Go onllne to w,Soundct*il6ds.M lffi,Sourd0lasilie&.com Call: 1{0G38&2527 Fax 36M98{800 Home Servlc6a Lawnlcarden 56rvl@ w.Sqmill6ifio&.Gdn llnd shd tou nr.d 21 hourt. d.t Handyper3on LandscaF ServlceB A.1 SHEER GARDENING & LANDSCAPING. Cleanup'Trim ' Weed ' Prune " Sod 'Seed'Bark 'Rmkery ' Backho€ ' Patios 425-226-3911 206-722-2043 Uc, AlSHEGLoruM The Darcy Read Memo-rial Preschool admits students of any race, color, national and eth- nic origin to all the righls,privilegss, programs, and activities generally accorded or made available to students at the $hool. lt does not discriminate on the basisof race, color, national and ethnic origin in ad- ministration of its educa- tional policies, admis- sions, policies, $holar ship and loan programs, and athlotic and olher $hool administer€d pro- grams. Published in the Kent Heporter April 26, 2019. #853264 NOTICE IS HEREBY GIVEN thal s€aled bids will be received by th€ King County Drainago Dislrict No. 1, c/o The Abbey Boad Group Land Development Services Company LLC, 2102 E l\rain Ave, Suite 109, Puyallup, WA 98372 un-til 4:30 P.Ni., Pacific Daylight Savings Time (PDST), on Friday, May 241h, 2019 for the lollow- ing work: The work will consist of 66,359 linear feet, 20 feet wide, of Brush cuttino and re- moval of ma"terials and 2,000 lf, 10 ft. wide ofvegetation enhance- menuplanting as furlhsrd$ribed in the bidpacket. The District plans to award either a one-year or a threg-ysar conkact to inter€sted PUGET SOUND CONSTBUCTION lnteilor/ Exterior Paintino and Home Beoairs Build Wood oecks and tences Patio Covers 253.35G3231 253-33+9564 ,PUGflSSKA UtsIAPYAHU StsHVIOE AND A HANDYMAN Pressure washino gutler cleaning, e6. Fence, deck building Concrete, Painling & Repairs. 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I I I I I I lrl' I I I r I I I r t, I' I' I r I r I r l, l, I' I' r' f ' I r1, I II I t,l'*+?r r ii, 2,,, ,3 ,,ar; Q,t,1,'rrl r't. I e 4 ' i t, t I l.r,l,r,i i,l r,i I ;,r,,.,sJ,1,/a I ',g r.,r rzrl,z i,l,r,l,t,l,r,l,t,l,1,l,r,l,t,l,t,l, rllll rlrPlI 4 ,J I Put Sound Classifieds to work for you ! t"t i :'i i. I{ ii 'i :1 t. i' iIi.'i.i, visit soundclassifieds.com . call tollfree 1-800-388-2527 . email classifieds@soundpublishing.com i,,ii i ii1.'.iii Sign in Sheet to Speak During the Public Hearing on the Trucking-Intensive Land Uses Interim Zoning Ordinance For the Kent City Council Meeting of: Mav 7, 2OL9 t T " Cc,,tr Email Address l'4 P ,r.+*@ It rrS onl ytYnlT{<e 5fl'vna'45\. CfiY^ Ot^6}-tc^ $e -}+t<- a S*rlt\l "l<- Address S5 tt E4 f.v( t^kv,l", 9 ;3ru S)4 - 7*4NC St <ze 9"L4+e( 1?to4 )o #l L -[ulCw.\1. LJc\-Q€ioy Telephone Number lwm[6ff, re zo u -31G* 4s Ll*, ru-rnn1fr lcQ Sqs3*rp NAME Print Leoiblv - K !y,k4 Rr-* 5"\*t. F,p*ti.s ftbry8,&u Ca;vwwsst-lk^ylwn C r.dr-e o. h'u".*7 &"#h:Ry+F'.,,{{ 1 2 3 4 CUr"-"lt^^r"*,^. ( 'F Sign in Sheet to Speak During the Public Hearing on the Trucking-Intensive Land Uses fnterim Zoning Ordinance For the Kent City Council Meeting of: May 7, 2O19 -Ur^ Email Address JoluJ @ '^'e5 Ca /4. t4- t Cop V^tLlLrkj/tMlr1rd"( Address tt6r?9rt5 L{tr% 7 fl,7fu3v oCI 5 ;-tY1"g ( a Telephone Number ,l>{ 8\ t -t i7 z- 2ot-Lz2-7t:OL La(aQ4bc(W NAME Print Leoiblv ,/),rt I,'. J Nf on\ o re- 5" L Pi"* nansta 5 6 7 8 *&,Nlefd s1tlt1 { CH& 5242nd Ave., Suite 5OO Seattle, WA 98to+ www.cairncross.com CAI RNCROSSAHEM PELMANN ATTORNEYS AT LAW office 206.587.0700 fax 206.58723O8 May 7,2019 VIA HAND DELIVERY Mayor Ralph and City Councilmembers City of Kent 220 4rt' Avenue South Kent, WA 98032 Re: Request to Repeal Ord. No. 4320r Interim Zoning and Moratorium Dear Mayor Ralph, Council President Boyce, and Councilmembers Fincher, Kaur, Thomas, Higgins, Larimer, and Troutner: This firrn represents Segale Properties LLC ("Segale"). As reflected in the separate testimony of Mike Pruett fi'om Segale Properties, Segale owns two significant sites affected by the interim zoning controls adopted by Ordinance No. 4320. Request for Council Action. We write today to ask the City Council to do three things: (1) repeal the interim zoning regulations of Ordinance No. 4320 (the o'Moratorium"), (2) continue the Rally the Valley planning process, and (3) work with industry and land owners to explore direct solutions to fund road maintenance in the City's industrial areas. Segale's Affected Lands in the City of Kent. First, Segale owns a 10.25-acre site at the northwest corner of the intersection of South 212th Street and 59tl'Place South, east of the Boeing Space Center (the "1O-Acre Parcel"). Over the last several years, Segale has spent millions of dollars to process multiple permits through the Community Development Depadment and to prepare the site for warehouse construction, including infrastructure construction, grading, necessary pre-loading, or surcharge, of the site and development of building permit plans. Segale was literally days away from submitting a complete building permit application for a 157,000 square foot industrial distribution walehouse on the l0-Acre Parcel, when the City Council adopted the Moratorium. LLr o g e r ! (!),c a t t' n c r o s-$ :.cg!ll direct: (206) 254-4417 \0372I278.DOCX;1 \ Mayor and City Councilmembers for the City of Kent May 7,2019 Page2 Second, Segale also owns an approximately 38-acre site at the southwest corner of the intersection of South 196t1' Street and 68th Avenue South, north of the Boeing Space Center (the "38-Acre Site"). Over the last several years, Segale also has spent millions of dollars to process multiple permits through the Community Development Department and to prepare the site for warehouse construction, including infrastructure construction, grading, and necessary pre-loading, or surcharge, of the site. Segale was actively marketing the 38-Acre Site for new industrial distribution warehouse development when, on April2, the Council adopted the Moratorium. The vast majority of the City of Kent's Industrial lands are already developed, and the City of Kent serves a critically important role providing both industrial distribution for the Pacific Northwest, and the West Coast. Development of Segale's parcels with industrial distribution warehouses will have little noticeable impact due to their insignificant size as compared to the industrial development activity in the rest of the Kent area. According to CBRE marketplace research from Q1 2019, the City of Kent has 45,980,727 square feet of net rentable industrial space within its borders. The same research document indicates the Kent Valley has 124,745,813 square feet of industrial space. Together, the buildout of Segale's 10- Acre Parcel and 38-Acre Site would represent 2o/o of existing City of Kent industrial space and less than 1o/o of the existing Kent Valley total. Continuing industrial development, including trucking-intensive uses and land consumptive uses, is a valued and important part of the City of Kent's economy and the regional economy. The Kent Valley is known as the second largest industrial distribution center on the West Coast, and the fourth largest in the nation. A sirnple internet search discloses a number of reports and studies detailing the economic importance of the jobs created and the goods distributed through the City of Kent. For example in February 2019, a report was published for the City of Kent, entitled Kent Valley Supply Chain Management Sector Analysis Economic Impacts and Workforce Analysis (nttps:lwww.psrc.o . This report concludes that Kent's existing industrial sector provides thousands of excellent jobs, plus generates significant tax revenue. As the Rally the Valley planning process continues, we urge the City of Kent to focus on how to improve its industrial hub and enhance funding for road maintenance, as well as explore the potential viability of mixed use re-development. The Moratorium is not necessary to assure the success of the Rally the Valley Planning process, and the Moratorium should be repealed. The Rally the Valley planning process can occur without the constraints of Ordinance No. 4320. This is because the Moratorium immediately impacts essentially only two property owners, whereas the result of the Rally the Valley process is intended to be a Subarea Plan tweaking the redevelopment {03721278.DOCX;4 } Mayor and City Councilmembers for the City of Kent May 7,2019 Page 3 opportunities for all affected property owners. Preventing new industrial distribution warehouse development on the Segale and REI properties while the areawide planning process occurs does nothing to improve the City's concerns about deficits in road maintenance funds. Moreover, a interim zoning ordinance, which is effectively a moratorium on new development, is a dramatic anti-development, anti- business move that is significant departure from the City of Kent's historical efforts to support and sustain its business community and tax base. Segale wants to work with the City, and that will be much easier to do, if Ord. No. 4320 is repealed. The Moratorium and InterimZoningis legally vulnerable and should be repealed. Because the vast majority of Kent's Ml and Ml-C lands are already developed, the City's Moratorium primarily impacts two, and potentially three, landowners: Segale, REI, and Boeing, if its existing Development Agreement lapses or permits are not timely obtained. Segale recognizes that the City has only adopted an "interim" zoning ordinance and has stated that it is unlikely that the City will entirely prohibit trucking-intensive and land consurnptive uses. However, as one of only three affected property owners, it seems unlikely that the City plans to allow trucking-intensive uses on Segale's lands after the Rally the Valley planning process concludes. Instead, this Moratorium appears to be the first step by the City to adopt a spot zone, preventing Segale from using its land in the same way as its neighbors. The Washington Supreme Court has explained that spot zoning is: o' arbitrary and unreasonable zoning action by which a smaller area is singled out of a larger area or district and specially zoned for use classification totally different from and inconsistent with the classification of the surrounding land, not in accordance with a comprehensive plan." Smith v. Skagit County,75 Wn.2d715,743 (1969). Spot zones are illegal and deemed void when they primarily serve private gain and result in the "inevitable effect of granting a discriminatory benefit to one or a gloup of owners and to the detriment of their neighbors or the community without adequate public advantage or justification." Id. Included in this type of illegal zoning action is "zoning merely for the benefit of one or a few, or for the disadvantage of some and with no substantial relationship to the public health, safety, general welfare or morals, in conflict with either the comprehensive zoningplan or ordinance [which action] is arbitrary and capricious and unlawful." Id. at743-44. Here,the City's interim zoning and Moratorium is arbrtrary and capricious and inconsistent with the uses on surrounding lands. In addition, Ordinance No. 4320 was illegally adopted because it was adopted for an entire year term, even though no work plan exists detailing studies that will be conducted to work the City out of the Moratorium. Both RCW 35A.63.220 and RCW 36.70A.390 are clear that to extend for longer than six months, a moratorium must be associated with a valid work plan. That the Rally the Valley process was apparently contemplated prior to April 2,2019, is not equivalent to a true "work plan." The first Rally the Valley meeting was not even held until April 24, and there remains no written work plan detailing what actions the City will take to remove the Moratorium. {03721278.DoCx;4 } , Mayor and City Councilmembers for the City of Kent May 7,2019 Page 4 Finally, even Section 9 of Ordinance No. 4320 which refers the work to the City Staff only directs Staff to evaluate zoning. There is nothing in the Moratorium Ordinance, or in the outline we have seen for Rally the Valley directed at finding revenue sources to fund the road maintenance that is the primary pupose for adopting the Moratorium. That means that even if the Rally the Valley process was a valid "Work Plan", it fails to include any element necessary to fix the fundamental problem of a lack of funding. For all of the above-reasons, the City should immediately repeal the Moratorium. Segale wants to help the City to redirect existing revenues and add new revenue sources as a better solution to the City's road maintenance concerns. Segale is being unfairly singled out with development restrictions. The road maintenance issue used to justify adoption of the Moratorium is an existing problem that the City of Kent is experiencing due to changes in the State Streamlined Sales Tax and mitigation payment decisions. Preventing development of Segale's last remaining parcels in Pacific Gateway does nothing to solve that on-going road maintenance problem. We recommend that the City re-examine its existing funding resources that come from its industrial lands. Significant Business & Occupation ("B&O") and property taxes are generated in this area. We further encourage the City to work with the Ports of Seattle and Tacoma and the State of Washington to solve the funding issues generated by the past changes to the Streamlined Sales Tax. Finally, we recommend that the City work with its own industrial land owners and tenants to examine new ways to fund road maintenance. We have been told that the City explored the idea of a user-funded fee, or local improvement district, shorlly after the sales tax law was changed, and that those proposals were not well-received. Now, a decade later, and with an obvious lack of State backfill funding, and at a differing point in the economic cycle, we expect the outcome would be different. Such mechanisms might include a Local Improvement District, or a Community Facilities District, or any number of other approaches, including a comprehensive and public-private appeal to the State Legislature. Segale wants to work with the City on this approach and, assuming the Moratorium is repealed, restoring Segale's good working relationship with the City, Segale would be happy to spearhead work and meetings targeted at finding the revenue the City seeks to ensure its roads are in good repair. In the alternative, the City's lack of fair play justifies at least amending Ord. No. 4320 to authorize the submittal of building permits on sites where all necessary pre-cursor permits had already been processed and approved. No one at the City provided any information to Segale to suggest that industrial distribution warehouses were planned to be stopped in the City, despite Segale's years devoted and millions of dollars spent in {0372t278.DOCX;4 } Mayor and City Councilmembers for the City of Kent May 7,2019 Page 5 the permitting process. In the event the City Council does not repeal the interim zoning regulations of Ordinance No. 4320, Segale asks that the City modify Ordinance No. 4320 by adding a Section that authorizes any person who had already completed all permit applications and work necessary to then file a building permit application for a trucking-intensive use such as an industrial distribution warehouse be given a two-week window in which to file a building permit application. This would at least allow Segale to proceed with its already prepared building permit application for the 10-Acre Parcel. Conclusion and Request for Action. As noted in the Council Agenda Packet memo, the City Council has the power to repeal or terminate the Moratorium. Segale reiterates its request that the City Council: repeal the interim zoning regulations of Ordinance No. 4320 (the ooMoratorium"), continue the Rally the Valley planning process, and work with industry and land owners to explore direct solutions to fund road maintenance in the City's industrial areas. Thank you for your attention to this matter V truly yours, Nancy Rogers NBR:alw (1) (2) (3) {03721278.DOCX;4 | S TGALE ,r'.ild Ait*d ft.ln PnoPERTIES A LIMITED LIABILITY COMPANY COMMERCIAL . INDUSTRIAL . AGRICULTURAL ' NATURAL RESOURCES MAY 7, 20L9 VIA HAND DELIVERY Mayor Ralph and City Councilmembers City of Kent 22O 4th Avenue South Kent, WA 98032 RE: lnterim Zoning Ordinance No 4320 and "Rally the Valley" Planning Process Dear Mayor Ralph, Council President Boyce, and Councilmembers Fincher, Kaur, Thomas, Higgins, Larimer, and Troutner, Segale Properties LLC ("Segale") and the City of Kent (the "City") have enjoyed a very positive, long working relationship, which began when Segale purchased a large portion of the Pacific Gateway industrial subdivision in 2003. Since then, Segale has developed five buildings in the valley, which are home to 4 tenants and contribute significant jobs and tax resources to the City. Segale has two parcels left to develop and has invested millions preparing them for development. One of those parcels, a 10.25-acre site located at the intersection of 59th Place South and South 2L2th Street, has acomplete set of plans to submit to the city with contracts in place to start construction Segale has also been in discussion with multiple developers on the second parcel, a 38-acre site, with those developers making regular inquiries to the City about that parcel for several months. Needless to say, Segale was surprised and shocked by the City's recent adoption of its emergency interim land use Ordinance No. 4320, which passed on April 2, 2019 and effectively prohibited all industrial distribution development in the M1 and M1-C zones. Segale's shock and surprise was quickly replaced with concern and doubt as we learned more about the City's broader vision the Rally the Valley planning process and its desire to move away from industrial use in the valley. At the first Rally the Valley Advisory Committee meeting held on Apri|24,2019, the City's planners and consultants introduced three potential case studies/visions to members of the business community for rethinking the valley area. The concepts presented a mixed-use development vision that included retail, housing, office and other uses that may potentially bring more tax revenue to the city. After the planners presented the visions, a majority of Rally the Valley Advisory Committee members expressed concerns that mirrored Segales. Advisory panel members noted that the retail and office use desired are already possible in the M1 and ML-C zones and that market forces were the driving force po Box 88028 r TUKWTLA, WA 98138 . 5811 P 206.575.2000 . F 206.575.1837 SEGALE PARK DRIVE C T TUKWILA. WA 98188 www.segaleproperties.com behind creating opportunities for those uses. Not one Advisory Panel member who spoke thought introduction of multi-family housing are was an idea that would work. Several others pointed out that office was not a likely use to occur without significant tax incentives. One panel member suggested the Rally the Valley effort focus on being the best industrial warehouse, distribution and manufacturing district possible instead of tryingto restrict industrialdistribution uses in favorof a mixed-use center. With this in mind, Segale believes the interim ordinance should be repeoled while the Rally the Valley effort continues. lnstead of limiting industrial distribution uses in favor of a future mixed-use vision, the City's planning should focus on solving its pressing road maintenance issue through a 'use fee' established via a Local lmprovement District or other local tax mechanism. Opportunities for exploring mixed-use projects could continue under the Rally the Valley effort, but redevelopment should focus in areas where public investment and amenities already exist, and development incentives can be advanced. Kent Station's successful transit-oriented development is one possibility. There are also opportunities for significant redevelopment adjacent and north of the existing heavy rail station, near high-traffic areas such as Showare Center and Kent's downtown core. All of these options should be thoroughly explored before abandoning the City's long-established and still growing industrialarea. Furthermore, pursuing a land use strategy that restricts or limits industrial distribution and warehousing should be reconsidered for the following reasons: lndustrial distribution development in the City and other Kent Valley jurisdictions is key to the continued growth and economic health of the Ports of Seattle and Tacoma. Undertaking land use changes to restrict industrial distribution development in favor of land uses that have future potential to possibly generate higher sales tax dollars for the individualjurisdiction will undermine the regional strengths of the Kent Valley as the 4th largest industrial warehousing in the Country. These negative impacts will ripple through to multiple industries and cause substantial economic harm to the region. a a The current M1 and M1-C zones, which are the subject of the interim zoning which effectively places a moratorium on industrial distribution development in Kent, already includes the ability to provide for a variety of retail uses. Lack of market demand, not a lack of willingness by the developer, is the reason retail activities are not already included in the Kent Valley's industrial developments. The stated problem for the interim land use ordinance, a lack of maintenance budget for roadways brought on by the State's Streamlined Sales Tax lnitiative, is not addressed by any of the proposed land use changes the City hopes to solve via a new mixed-use development vision. Land use changes are driven by market forces and occur slowly overtime, if at all. The existing budget shortfallfor road maintenance is a strain on city resources now and will remain. The City should bring the business and industrial community together now to find a solution to this problem, rather than engage in a protracted visioning exercise. lf the problem is truly a lack of tax resources for road repair, focusing time and resources on long-term land use changes to boost tax revenue that will likely require tax incentives to enact is therefore misguided. 2 The City may not be accurately assessing contributions from property taxes for newly developed industrial warehouse buildings. ln the last L0 years, industrial land and building values have increased exponentially and as such, so has the value of completed industrial warehouse buildings. For all these reasons and more, Segale urges the City to repeal its interim land use Ordinance No. 4320 and allow us to move forward with the shovel-ready development projects in which Segale has already invested significant capital. Sincerely, SEGALE PROPERTIES LLC Mike Pruett Senior Asset Manager 3 .n4.,Awr{ sltlg NAIOP COMMERCIAL REAL ESTATE DEVELOPMENT ASSOCIATION WASHINGTON STATE CHAPTER May 7,20L9 Dear Mayor Ralph, Council President Boyce, and Councilmembers Fincher, Kaur, Thomas, Higgins, Larimer, and Troutner: Thank you for the opportunity to comment on the City of Kent's recent emergency interim zoning regulations (Ordinance No. 4320). NAIOP Washington is our state's commercial real estate association with more than 900 members statewide, including hundreds in King County. We write today to ask the City Council to do three things: Repeal the interim zoning regulations of Ordinance No. 4320, Continue the Rally the Valley planning process, and Work with industry and land owners to explore direct solutions to fund road maintenance in the City's industrial areas. The interim zoning ordinance imposes new regulations that operate as an effective moratorium on any application for a new or expanded industrialdistribution warehouse. The current M1 and M1-C zones encompass lands where most of the city's industrial distribution development occurs, and are the subject of the zoning moratorium. lndustrial distribution development in the City of Kent and other Kent Valley jurisdictions is key to the continued growth and economic health of the Ports of Seattle and Tacoma. Undertaking land use changes to restrict industrial distribution development in favor of land uses that have future potential to possibly generate higher sales tax dollars for the individualjurisdiction will undermine the regional strengths of the Kent Valley as the 4th largest industrial warehousing in the Country. These negative impacts will ripple through to multiple industries and cause substantial economic harm to the region. The City of Kent made this zoning change without public input or public process. While the Rally the Valley stakeholder effort is now underway, it was done after the fact. The stated problem for the interim zoning ordinance, a lack of maintenance budget for roadways brought on by the State's Streamlined Sales Tax lnitiative, is not addressed by any of the proposed land use changes the City hopes to solve via a new mixed-use development vision. Land use changes are driven by market forces and occur slowly overtime, if at all. The existing budget shortfall for road maintenance is a strain on city resources now and will remain if not directly addressed in the short-term. The City should bring the business and industrial community together now to find a solution to this problem, in addition to engaging in a long-term visioning exercise. lf the immediate and on-going problem is truly a lack of tax resources for road repair, focusing time and resources on long-term land use changes to boost tax revenue that will likely require tax incentives to enact is misguided. lnstead, the moratorium should be repealed, the City should explore its funding options for road maintenance and discuss those opportunities with the business and industrial development community, and the City should continue the longer-term Rally the Valley process, exploring the ultimate future of the City's P.O, Box 24L83, Seattle, WA 98124 . 206.382.9121 . www.naiopwa.org NAIOP COMMERCIAL REAL ESTATE DEVELOPMENT ASSOCIATION WASHIt{GTOt'l STATE CHAPTER industrial zones, and whether and how other mixed uses could be incentivized to enhance the growing and critically important existing City of Kent industrial distribution hub. Many NAIOP members are developers. Based on experience, we know that attracting a different type of business to the City's ML and ML-C zones, such as sales-tax generating retail, research and development, and office campus, will not happen simply because areas are rezoned for such uses. The market dictates what areas are attractive for those types of uses. There are much larger locational forces at play for real estate decisions than just City zoning. lndeed, all of the above-listed uses are already allowed under the existing M1 and M1-C zoning, yet very few such uses have located on Kent's industrially-zoned lands. See, KMC 15.04.070 and KMC 15.04.090. We also recommend the City re-examine its existing funding resources that come from its industrial lands. Significant Business & Occupation ("B&O") and property taxes are generated in this area. We further encourage the City to work with the Ports of Seattle and Tacoma and the State of Washington to solve the funding issues generated by the past changes to the Streamlined Sales Tax. Finally, it bears repeating that we recommend that the City work with its own industrial land owners and tenants to examine new ways to fund road maintenance. Such mechanisms might include a Local lmprovement District, or a Community Facilities District, or any number of other approaches. Conclusion and Request for Action. As noted in the Council Agenda Packet memo, the City Council has the power to repeal or terminate the interim zoning ordinance. NAIOP respectfully requests that the City Council: Repeal the interim zoning regulations of Ordinance No. 4320 Continue the Rally the Valley planning process, and Work with industry and land owners to explore direct solutions to fund road maintenance in the City's industrial areas. Thank you for your attention to this matter Very truly yours, t (1^ a -.Q* Peggi Lewis Fu Executive Director P.O. Box 24L83, Seattle, WA 98124 . 206.382.9121 . www.naiopwa.ors Public Comment - Sign Up Sheet For the Kent City Council Meeting of: Mav 7, zOLg Please PRINT your contact information below and when called upon, come to the podium and state your Name and Address for the record You will be given THREE minutes to speak Topic K.YE " ?ngvr,.l6 tl<.eass fto''r- Y-ENt-trD&E- Kr tru* c,{assi,ty rP 'hr tn& Email Address Ap iq vrr,? Eefut W.rz_e,g* lo,ca}| clr e,P-{L, p ER(LOLtsr., u^ i.* {Ff,^l'dkv,'sJi ltao@. 9^o;1.6r'tru ) {,^<s@[rLru J.t*{ a - LAnn Address l'?';L+ Sf zron crr k-s,sr- 9gort t>5L5 Se 240LCr Ku't u/* QOat 1513 5, ,5-1' ?l . dA qsos/ Telephone Number ?l{.:1r4 ,gz{z lab -qh4S?E J53Ast 3{61 NAME Print Leoiblv &0o". * c-,Heg{\- gvbe-vLEL Ilrisfin-Ditlo n 'tno F\o*s (0 n*_. 1 2 3 4 5 6 \\Cityvmplv\sdata\PUBLIC\City Clerk's Office\City Council\City Council Meetings\TEMPLATES\Sign In Sheet Public Comments.doc 2019 Crack Sealing May 7, 2019 1 2 SE 208th S and 120th Ave SE 3 SE 208th S and 120th Ave SE 4 Ridge Field Neighborhood 5 Ridge Field Neighborhood 6 Kensington High Neighborhood 7 Kensington High Neighborhood 8 Downey Farmstead Project Council Award of Construction Contract, 5/7/19 1 1 Downey Farmstead Restoration Road Relocation Yr of Grant Funding Source Amount ($)Purpose 2013, 2015 PSAR 450,477 Util, Rest. 2015 KC CWM 106,227 Road 2015 SRFB 327,353 Road 2017 KC CWM 1,002,799 Util, Rest 2017 KC Waterworks 125,000 Contam. 2018 KC CWM 780,000 Rest 2019 KCD 98,575 Rest 2021 City of Kent Match 52,946 Rest Total to Date 2,943,377 Full Rest. Cost 6,808,000 Funding Needed 3,864,623