HomeMy WebLinkAboutCity Council Committees - Economic and Community Development Committee - 12/12/2016 (3)Unless otherwise noted, the Economic & Community Development Committee meets at 5 p.m. on
the second Monday of each month in Kent City Hall, Council Chambers East, 220 4th Ave S, Kent,
98032.
For additional information please contact Julie Pulliam at 253-856-5702.
Any person requiring a disability accommodation should contact the City Clerk’s Office
at 253-856-5725 in advance. For TDD relay service call Washington
Telecommunications Relay Service at 1-800-833-6388.
Economic & Community Development
Committee Agenda
Councilmembers: Jim Berrios, Tina Budell, Bill Boyce, Chair
December 12, 2016
5:00 p.m.
Item Description Action Speaker(s) Time Page
1. Call to Order Bill Boyce 1 min
2. Roll Call Bill Boyce 1 min
3. Changes to the Agenda Bill Boyce 1 min
4. Approval of November 14, 2016 Minutes YES Bill Boyce 1 min 1
5. Multifamily Tax Exemption Targeted Area YES Matt Gilbert 15 min 5
6. Sound Transit Memorandum of YES Charlene Anderson 15 min 35
Understanding
7. Showare Update NO Ben Wolters 10 min
Information Only
7. Tourism and Marketing Update NO Bill Ellis 5 min
Information Only
8. Economic Development Update NO Bill Ellis 10 min
& Training Center Update
Information Only
ECONOMIC & COMMUNITY DEVELOPMENT COMMITTEE MINUTES
November 14, 2016
Committee Members Dana Ralph on behalf of Bill Boyce (Absent), Tina Budell,
Jim Berrios
1. Call to Order
2. Roll Call
3. Changes to the Agenda
City Attorney Tom Brubaker introduced new Assistant City Attorney Adam Long.
4. None
5. Approval of Minutes
Committee Member Berrios MOVED and Committee Member Budell
SECONDED a Motion to Approve the Minutes of October 10, 2016. Motion
PASSED 3-0.
6. Multifamily Design Guidelines
Long Range Planner Hayley Bonsteel stated that the updated Multifamily Design
Guidelines (MFDG) replace guidelines that are twenty years old.
The updated guidelines encourage flexible and innovative MF development that will
raise regional standards for durability, quality and attractiveness. The MFDG was
discussed at two workshops before the Land Use and Planning Board in July and
October, with a hearing held October 24th where the Board passed the guidelines
unanimously. Staff worked extensively with the development and consultant
community, and the City Parks Department who contributed valuable input.
The Guidelines are formatted with strong intent statements, provides clarity and a
variety of ways to meet that intent, is flexible and allows for innovation. Additional
photos are included as guidelines to inspire developers and project managers.
Associated code amendments are straightforward. Footnotes have been added to
the use table to define what type of design can be applied per zone. Bonsteel
informed that there is a setback change from 20 feet to 10 feet to create a good
street envelope and create sense of place in MF development.
Committee Member Berrios MOVED and Committee Member Budell
Seconded a Motion to recommend to the City Council approval of the
proposed code amendments to Title 15 of the Kent City Code (KCC) and
adoption of updated Multifamily Design Guidelines as presented by staff.
Motion Passed 3-0.
6. Multifamily Tax Exemption Program
Current Planning Manager Matt Gilbert stated that this program is currently offered
in its downtown core area for qualifying multifamily projects. This exemption allows
property tax calculations to not change when the project is complete. Increases in
tax valuation will not show up on tax rolls for eight years and can be a significant
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financial incentive. Staff proposes that the City and Council expand this incentive to
the Riverbend site. This incentive is a tool that can be used to ensure the City can
continue to get high quality development.
The Committee discussed their concerns on where the boundaries for this
exemption program should be placed. Gilbert offered to report back to the
Committee on December 12th concerning the redline boundary issue and offer
additional boundary options prior to taking this to City Council December 13th.
Ralph suggested moving the redline to include the Colony Park Apartments site -
up to the edge of the driving range with Berrios voicing support to include this site.
City Attorney Tom Brubaker stated that this item will go before the Operations
Committee on November 15 and to City Council that same night.
Committee Member Budell moved and Committee Member Berrios
seconded the motion to recommend that the city council adopt a
resolution to establish an urban center at the location shown in Exhibit A
with the amendment to expand the exemption boundary area to cover the
colony park apartments up to the edge of the driving range and schedule a
hearing to establish a residential target area for the December 13, 2016
city council meeting. Motion PASSED 3-0.
7. Update to the City of Kent Surface Water Design Manual (SWDM)
Environmental Conservation Analyst Laura Haren presented this item on behalf of
Shawn Gilbertson, Environmental Supervisor. The City’s SWDM adopts the new
2016 King County SWDM and includes Kent specific details. State law requires that
Kent update their storm water standards. This update is driven by the National
Pollutant Discharge Elimination System (NPDES) which is a part of the Federal
Clean Water Act; a discharging permitting system to control the discharge of
pollutants into the waters of the State of Washington. The Environmental
Protection Agency delegated administration of the NPDES Program to Washington
State Department of Ecology (DOE). Haren stated that Kent is covered under the
Phase II municipal storm water permit which includes storm water permits for
construction and industrial activities; describing the requirements for which Kent is
responsible, including implementation of low impact development (LID) by January
1, 2017. Haren described the potential increased costs associated with LID and the
need for specialized training.
Kent will create development assistance brochures, provide website technical
assistance, develop permit pre-application assistance, and provide plan review.
The document is currently undergoing review by the Department of commerce. The
Land Use and Planning Board will hold a public hearing November 28, and then will
go before the Public Works Operations Committee for action on December 5.
Implementation will be phased in following acceptance and adoption.
8. Sound Transit (ST) Update
Hayley Bonsteel reported that staff conducted a comprehensive review process and
provided 375 comments to ST on the pre-final submittal; continuing to work on
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this project in order to meet ST deadlines, and ultimately through the development
agreement to be reimbursed for this project.
Staff will return to Council May 2017 with a development agreement. Staff is
working on a memorandum of understanding to be presented to Council at a
workshop on December 13 that will demonstrate that staff has been working with
the ST Board to gather and identify issues where we are committed to streamlining
our processes to ensure that we meet ST’s timelines. Staff will provide comments
on the Final Environmental Impact Statement.
9. ShoWare Update
Current Planning Manager Matt Gilbert asked that this item be tabled until the next
meeting in the absence of ECD Planning Director Ben Wolters.
10. Economic Development Update
Economic Development Analyst Bill Ellis reported on the lighting project, stating
that the City reached their fund raising targets in July 2016. Staff collaborated with
Kent Downtown Partnership, Civil Engineering and a contracted design firm in
August 2016 to work on the Meet Me on Meeker Project. The design firm has been
working with “SeaTac Lighting and Control” (who has been working pro-bono) on
how the city can get the lighting coverage needed within the allotted budget.
Staff submitted a proposal to Washington State Department of Transportation
(WSDOT) for an artistic lighting concept for underneath the Meeker St underpass
on September 7th. Staff conducted a demonstration of the selected product type on
September 29th and October 12th. Staff submitted new design iteration to WSDOT
on October 18th and received comments back the same day. Staff resubmitted on
October 21st, receiving positive comments from WSDOT on November 1st with a
request to receive stamped drawings with greater specification. WSDOT voiced
concern around the esthetic choice of one of the brackets for attaching the light
fixture. Staff has developed a solution and will resubmit on November 16th with
new stamped drawings from Civil Engineering and KDP. WSDOT’s response time
will likely be between two to six weeks. I hope to have a scope of work completed
to give a vendor beginning December 16th and will return to Council in January for
approval of that contract with installation completed by early February.
Ellis stated that Sonic restaurant is coming to Kent. He spoke about the potential
for development on the site on Pacific Highway where the Dollar Tree store was
damaged as well as the site directly to the north and south.
Panther Lake Elementary school has submitted a preapplication and is in process of
hunting for the right tenant.
A variety of businesses have shown interest in the old Albertsons location but as of
yet US Realty Partners (property owners) have not found a perfect user.
Ellis updated on action taken by the city concerning implementation of a training
center as part of the River Bend Complex; an outgrowth of America’s Promise
Grant submitted in August for 5.92 million dollars to help South King County
Council of Human Services trainers bring disadvantaged populations (including
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Kent residents) and connect them to the right service to get them into the right job
in advanced manufacturing.
Staff is working with the Center for Advanced Manufacturing Puget Sound (CAMPS)
and hopes to hear positive results in a few weeks. As an outgrowth of that
discussion, staff has convened the colleges in South Seattle: South Seattle
Technical Center, Green River College, Department of Commerce, CAMPS, the
Aerospace Joint Apprenticeship Committee and the Port of Seattle around
conversations to reuse the River’s Edge complex comprised of three buildings, with
43,000 sf and currently owned by King County Flood Control District. The Port
supports our efforts to repurpose 10.824 million dollars in training facility dollars
allocated by the State of Washington.
Adjournment
Committee Member Dana Ralph adjourned the meeting at 5:55 p.m.
______ ___________________________________
Submitted by Pamela Mottram on behalf of Julie Pulliam
Economic & Community Development Committee
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ECONOMIC and COMMUNITY DEVELOPMENT
Ben Wolters, Director
Phone: 253-856-5454
Fax: 253-856-6454
220 Fourth Avenue S.
Kent, WA 98032-5895
DATE: December 12, 2016
TO: Chair Bill Boyce and Economic & Community Development Committee
FROM: Matt Gilbert, AICP, Planning Manager
RE: Multifamily Tax Exemption Program Ordinance - Recommend
MOTION: Recommend Council adopt an ordinance establishing a
Residential Targeted Area, and adopt related changes to Chapter 3.25 of
the Kent City Code, entitled “Multifamily Dwelling Tax Exemptions.”
SUMMARY: To encourage construction of high-quality housing, Council should
expand the Multi-Family Tax Exemption (MFTE) to the Riverbend Gateway site. The
first step in this process was completed with recent adoption of an urban center
around the Riverbend site. The attached ordinance will complete the process.
The MFTE program allows owners of qualified multifamily projects to avoid paying
the increase in property taxes caused by increased property value from the
development for eight years. The program is made possible by an allowance in state
law and was first adopted by Kent in 1998, then renewed in 2014. The general goal
of this incentive program is to stimulate construction of multifamily housing in
targeted areas determined by Council. Because the tax break lowers the long term
cost of the project, developers are able to use the savings to improve the quality of
the housing product. The program was first used for the Dwell at Kent Station
project.
When the MFTE was first adopted, downtown was designated as an urban center
and a residential targeted area where the Council seeks to encourage high-quality,
urban style housing. The state legislation allows the Council to expand the program
to other areas of the City. With the upcoming sale of the Riverbend Gateway site,
there is an opportunity for Council to encourage higher quality, urban-style housing
by allowing the MFTE to be used at this site.
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In November 2016 the City Council adopted a resolution establishing an urban
center around the Riverbend Gateway site, and in so doing completed the first step
towards expanding the MFTE program. The next step is the public hearing, which is
scheduled for today before the City Council. The final step is establishing a
Residential Targeted Area within the new urban center. The ordinance may be
adopted after the public hearing.
In order to qualify for the MFTE, projects within a Residential Targeted area must
also comply with a number of project eligibility criteria. One of these criteria
requires that all required parking be located in a garage, under the building, or
underground. This criterion was developed for downtown projects, which are
generally located on smaller parcels of land, where there are ample transit
opportunities that reduce the need for parking. A future project at the Riverbend
site will require a mix of surface parking and garage parking under one or more of
the buildings. The ordinance includes a proposed amendment that would
accommodate for this need, while maintaining the downtown requirement.
The attached ordinance may be adopted after the scheduled December 13th public
hearing before City Council
Staff will be at the December 12th ECDC meeting to discuss this matter further and
answer questions from the committee.
Exhibits: Ordinance, with Exhibits
Budget Impact: None
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ORDINANCE NO. ________
AN ORDINANCE of the city council of
the city of Kent, Washington, finding that the
Riverbend Gateway project area is an
appropriate area for designation as a
“Residential Targeted Area” as defined by
Chapter 84.14 Revised Code of Washington;
designating the proposed Riverbend Gateway
project area as a Residential Targeted Area
within the Urban Center established by the
city council’s Resolution 1938 for multi-
family limited property tax exemptions;
amending the Kent City Code to include the
Riverbend Gateway project as a defined
Residential Targeted Area; and amending
the parking requirements for Residential
Targeted areas outside the city’s downtown
core.
RECITALS
A. Due to the mandates in Chapter 84.14 Revised Code of
Washington (RCW), the city council elects under Kent City Code
2.57.040(B) to consider this matter directly, rather than have efforts
duplicated by the Land Use and Planning Board.
B. Chapter 84.14 RCW provides for exemption from ad valorem
property taxation for qualifying multifamily housing located in Residential
Targeted Areas within Urban Centers as defined in that chapter and
authorizes cities to adopt necessary procedures to implement the state
legislation.
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C. Chapter 84.14 RCW requires that Residential Targeted Areas
be located within Urban Centers as established by the city Council. By its
Resolution 1938, the city council established an Urban Center near the
city’s Riverbend Golf Complex, as shown on the map attached as Exhibit
A. The Urban Center designation required under this section is separate
and distinct from the urban center designation associated with the City’s
Comprehensive Plan.
D. The City of Kent is a designated “Urban Growth Area” under
the state’s Growth Management Act.
E. The city has identified the Riverbend Gateway/Colony Park
site within this urban center as appropriate for selection as a “Residential
Targeted Area” under that chapter. The boundaries of the Riverbend
Gateway/Colony Park site can be generally described as a portion of
parcel 2322049011 within the City’s Riverbend Golf complex together with
the adjoining Colony Park apartment building, bordered approximately by
Meeker Street to the north, the Green River to the west and south, and
the Riverbend Golf Complex driving range to the east, as more specifically
shown in exhibit B.
F. The council selected this area as a potential Residential
Targeted Area because it appears to lack sufficient available, desirable,
and convenient residential housing to meet the needs of the public who
would likely live in this urban center, if affordable, desirable, attractive,
and livable places to live were available.
G. On December 13, 2016, the city council, at a regular council
meeting, and after having first provided all required notice, held a public
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hearing to receive comment regarding whether the Riverbend Gateway
Project area should be designated a Residential Targeted Area.
H. After hearing all public comment at the December 13
hearing, the city council has determined that designation of this site is
appropriate for designation as a Residential Targeted Area, potentially
qualifying for multi-family property tax exemptions.
I. The City has adopted a project eligibility criterion requiring
parking to be located in garages under the buildings or underground. This
criterion is appropriate to ensure projects in Kent’s downtown Urban
Center are consistent with City’s goals and vision for this area. As the
program will now be extended beyond the downtown core, relaxing the
structured parking requirement is appropriate.
J. The State Environmental Policy Act (SEPA) responsible
official has determined that the proposed Kent City Code amendments are
procedural in nature, and further SEPA analysis is not required for these
local code amendments
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. - Findings; Residential Targeted Area Designation.
A. The area shown on Exhibit A is, for the purposes of Chapter 84.14
RCW, a designated Urban Center.
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B. The area has insufficient available, desirable, affordable, and
convenient residential housing, and if housing were available, the public
would be likely to live in this area.
C. The designation of this Residential Targeted Area would encourage
increased residential opportunities and stimulate construction of new
multifamily housing that will increase and improve residential housing
opportunities in the Urban Center.
D. The Recitals listed in this ordinance are also incorporated as
additional findings forming the basis for this designation.
SECTION 2. – Residential Targeted Area Criteria Met. Based on
the Findings stated above, the area proposed as a Residential Targeted
Area, as described in this ordinance and as shown on Exhibit B, meets the
criteria in subsections (1) through (3) of RCW 84.14.040.
SECTION 3. – Residential Targeted Area Designated. The area
shown on Exhibit B and as described in this ordinance is now designated a
Residential Targeted Area under Chapter 84.14 RCW. New multi-family
residential development proposed for construction within this area will be
able to apply for a limited multi-family property tax exemption pursuant
to Chapter 84.14 RCW and under Chapter 3.25 of the Kent City Code.
SECTION 4. – Amendment. Because of the addition of the
Riverbend Gateway project Residential Targeted Area, Section 3.25 of the
Kent City Code, entitled “Multifamily dwelling tax exemptions,” is
amended as follows:
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Sec. 3.25.010. Purpose. As provided for in Chapter 84.14 RCW,
the purpose of this chapter is to provide limited eight (8) year exemptions
from ad valorem property taxation for multifamily housing in designated
urban centers to:
1. Encourage increased residential opportunities within urban centers
designated by the city council as residential targeted areas; and
2. Stimulate new construction on vacant and underutilized sites for
multifamily housing in residential targeted areas to increase and improve
housing opportunities; and
3. Assist in directing future population growth in designated urban
centers, thereby reducing development pressure on single-family
residential neighborhoods; and
4. Achieve development densities which are more conducive to transit
use in designated urban centers.
Sec. 3.25.020. Definitions. When used in this chapter, the
following terms shall have the following meanings, unless the context
indicates otherwise:
1. Administrator means the Kent Economic Development Director or
his/her designee.
2. Mixed use means a multi-story multifamily housing residential
project with at least one nonresidential use in one or more multi-story
multifamily housing buildings in the project, such as retail, office,
entertainment, schools, conference centers or a use approved in writing
by the Administrator.
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3. Multifamily housing means one or more new multi-story buildings
designed for permanent residential occupancy, each with four or more
dwelling units.
4. Owner means the property owner of record.
5. Permanent residential occupancy means multifamily housing that
provides either rental or owner occupancy on a nontransient basis. This
includes owner-occupied or rental accommodation that is leased for a
period of at least one (1) month. This excludes hotels and motels that
predominately offer rental accommodation on a daily or weekly basis.
6. Residential targeted areas means (a) the geographic area of
downtown Kent bordered generally by Titus Street, State Route 167,
Willis Street and Cloudy Street, and only including zones that permit
multifamily housing, and (b) the Riverbend Gateway site, bordered by
Meeker Street to the north, the Green River to the west and south, and
the Riverbend driving range to the east. See Appendix 1 for map
Appendices 1 and 2* for maps of the downtown Kent and Riverbend
Gateway sites, respectively.
Sec. 3.25.030. Terms of the tax exemptions for multifamily
housing in residential target areas.
A. Duration of exemption. The value of improvements qualifying under
this chapter is exempt from ad valorem property taxation for eight (8)
successive years beginning January 1st of the year immediately following
the calendar year after issuance of the final certificate of tax exemption.
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B. Limits on exemption. The exemption does not apply to the value of
land or to the value of improvements not qualifying under this chapter,
nor does the exemption apply to increases in assessed valuation of land
and nonqualifying improvements. This chapter does not apply to
increases in assessed valuation made by the assessor on nonqualifying
portions of building and value of land nor to increases made by lawful
order of a county board of equalization, the Department of Revenue, or a
county, to a class of property throughout the county or specific area of
the county to achieve the uniformity of assessment or appraisal required
by law. At the conclusion of the exemption period, the new housing cost
shall be considered as new construction for the purposes of chapter 84.55
RCW.
Sec. 3.25.040. Project eligibility. A proposed project must
meet the following requirements for consideration for a property tax
exemption:
A. Location. The project must be located within a designated
residential targeted area as defined in KCC 3.25.020, Definitions,
Residential targeted area. If a part of any legal lot is within the
residential targeted area, then the entire lot shall be deemed to lie within
the residential targeted area.
B. Tenant displacement. Prior to approval of an application under KCC
3.25.060, the applicant shall provide the Administrator with
documentation satisfactory to the Administrator of the following:
1. all tenants of residential rental structures on the project site
have been notified per state statute of the termination of their tenancy,
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2. the applicant’s efforts to refer tenants to similar, alternative
housing resources, and
3. any other actions the applicant has taken to minimize the
hardship on tenants whose tenancies will be terminated.
C. Size. The project must include at least thirty (30) units of new
multifamily housing within a multi-story development. At least fifty (50)
percent of the space within the project shall be intended for permanent
residential occupancy.
D. Proposed completion date. New construction of multifamily housing
must be completed within three (3) years from the date of approval of the
application.
E. Compliance with guidelines and standards. The project must be
designed to comply with the city’s comprehensive plan, building, fire,
housing, and zoning codes, Downtown Design Review guidelines,
Multifamily Design Review, Mixed Use Design Review as applicable, and
any other applicable regulations. The project must be LEEDR Certifiable as
confirmed by a LEEDR certified independent third party reviewer or must
be Built Greentm certified, and must also comply with any other standards
and guidelines adopted by the city council for the residential targeted
area.
F. Parking. For projects located in the downtown Residential Targeted
Area, Allall required residential parking shall be located in structured
parking garages, under buildings, or underground. Projects located in the
Riverbend Gateway Residential Targeted area shall provide structured
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parking garages under buildings or underground, though parking may also
be allowed in surface lots.
G. Class A Pedestrian Street. For buildings adjacent to a class A
pedestrian street, the first floor of the building facing the street shall
consist of residential units, commercial uses, and/or residential amenity
uses.
H. Mixed Use Development. The project shall be a mixed use project,
unless the mixed use component is waived by the Administrator.
1. The purpose of the mixed-use requirement is to implement
the intent of the land use district, maximize the efficient use of land,
support transit use, and encourage the development of well-balanced,
attractive, convenient, and vibrant urban residential neighborhoods. The
additional use excludes any accessory functions related to the residential
use. Unless otherwise modified or waived in writing by the Administrator,
the nonresidential mixed use shall occupy at a minimum the ground floor
along the street frontage with a depth of at least thirty (30) feet for any
building in the project. The Administrator may not modify or waive the
mixed use requirement, as provided in subsection 3.25.040.H.2, in the DC
zoning District, which is governed by KCC 15.04.030(4) and (5).
2. The Administrator may waive the mixed use requirement for
the purposes of this chapter, if the applicant can demonstrate that mixed
use development is impractical or infeasible due to the following factors:
a. size or other physical characteristic of the project’s
lot(s),
b. project site is not conducive to commercial use,
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c. classification of street(s) abutting the project, or
d. other similar type of circumstance that make mixed
use impractical for the project.
Sec. 3.25.050 Application procedure. A property owner who
wishes to propose a project for a tax exemption shall complete the
following procedures:
A. The application provided by the city shall be filed with the
Administrator along with the required initial application fee of one
thousand dollars ($1,000). The application shall be filed prior to the
issuance of the building permit for the project.
B. A complete application shall include:
1. A completed city of Kent application form setting forth the
grounds for the exemption.
2. A brief written description of the project, and floor and site
plans of the proposed project, which may be revised by the owner
provided such revisions are made and presented to the Administrator
prior to the City’s final action on the exemption application.
3. A statement from the owner acknowledging the potential tax
liability when the project ceases to be eligible for exemption under this
chapter.
4. An affidavit signed by the owner stating the occupancy
record of the property for a period of twelve (12) months prior to filing
the application.
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5. Verification of the correctness of the information submitted
by the owner’s signature and affirmation made under penalty of perjury
under the laws of the State of Washington.
Sec. 3.25.060. Application review and issuance of
conditional certificate.
The Administrator may certify as eligible an application which is
determined to comply with the requirements of this chapter. A decision
to approve or deny an application shall be made within ninety (90)
calendar days of receipt of a complete application.
A. Approval. The Administrator may approve the application if he/she
finds that:
1. The proposed project is or will be, at the time of completion,
in conformance with all applicable local plans, regulations, and design
guidelines.
2. The owner has complied with all standards and guidelines
adopted by the city under this chapter, including but not limited to the
project eligibility and application requirements.
B. Contract Required. If an application is approved, the applicant
shall enter into a contract with the city, approved by the City Council,
regarding the terms and conditions of the project under this chapter.
C. Issuance of Conditional Certificate. Following approval of the
contract, the Administrator shall issue a conditional certificate of
acceptance of tax exemption. The conditional certificate shall expire three
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(3) years from the date of approval unless an extension is granted as
provided in this chapter.
D. Application Denial. If an application is denied, the Administrator
shall state in writing the reasons for denial and shall send notice to the
applicant at the applicant’s last known address within ten (10) calendar
days of the denial. Per RCW 84.14.070, an applicant may appeal a denial
to the city council within thirty (30) calendar days of receipt of the denial
by filing a complete appeal application and Council Appeal fee with the
city clerk. The appeal before the city council will be based on the record
made before the Administrator. The Administrator’s decision will be
upheld unless the applicant can show that there is no substantial evidence
on the record to support the Administrator’s decision. The city council’s
decision on appeal will be final.
E. Amendment of Contract. An owner may request an amendment(s)
to the contract by submitting a request in writing to the Administrator,
together with a fee of five hundred dollars ($500), at any time within
three (3) years of the date of the approval of the contract. The date for
expiration of the conditional certificate shall not be extended by contract
amendment unless all the conditions for extension set forth in 3.25.070
are met.
Sec. 3.25.070. Extension of conditional certificate.
A. The conditional certificate and time for completion of the project
may be extended by the Administrator for a period not to exceed a total
of twenty-four (24) consecutive months. To obtain an extension, the
applicant must submit a written request, along with a processing fee of
fifty dollars ($50), stating the grounds for the extension. An extension
may be granted if the Administrator determines that:
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1. The anticipated failure to complete construction or
rehabilitation within the required time period is due to circumstances
beyond the control of the owner;
2. The owner has been acting and could reasonably be expected
to continue to act in good faith and with due diligence; and
3. All the conditions of the original contract between the
applicant and the city will be satisfied upon completion of the project.
B. If an extension is denied, the Administrator shall state in writing
the reason for denial and shall send notice to the applicant’s last known
address within ten (10) calendar days of the denial. An applicant may
appeal the denial of an extension to the hearing examiner within fourteen
(14) calendar days of receipt of the denial by filing a complete appeal
application and Appeal of Administrative Decision fee with the
Administrator. The appeal before the hearing examiner shall be as
provided in Ch. 12.01 KCC for a Process I action. No appeal to the city
council is provided from the hearing examiner’s decision.
Sec. 3.25.080. Application for final certificate. Upon
completion of the improvements agreed upon in the contract between the
applicant and the city and upon issuance of a temporary or permanent
certificate of occupancy, the applicant may request a final certificate of
tax exemption by filing with the Administrator the following, along with a
one thousand dollar ($1,000) fee:
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A. A statement of expenditures made with respect to each multifamily
housing unit and the total expenditures made with respect to the entire
property;
B. A description of the completed work and a statement of
qualification for the exemption; and
C. The total monthly rent or total sale amount of each multifamily
housing unit rented or sold to date;
D. Any additional information requested by the city pursuant to
meeting any reporting requirements under Chapter 84.14 RCW; and
E. A statement that the work was completed within the required three
(3) year period or any authorized extension.
Sec. 3.25.090. Issuance of final certificate. Within thirty (30)
calendar days of receipt of all materials required for a final certificate, the
Administrator shall determine whether the specific improvements satisfy
the requirements of the contract, application, and this chapter.
A. Granting of final certificate. If the Administrator determines that
the project has been completed in accordance with this chapter and the
contract between the applicant and the city, and has been completed
within the authorized time period, the city shall, within ten (10) calendar
days of the expiration of the thirty (30) day review period above, file a
final certificate of tax exemption with the King County assessor.
B. Recording. The Administrator is authorized to cause to be
recorded, at the owner’s expense, in the real property records of the King
County Department of Records and Elections, the contract with the city,
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Multifamily Tax Exemption –
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15
as amended if applicable, and such other document(s) as will identify
such terms and conditions of eligibility for exemption under this chapter
as the Administrator deems appropriate for recording.
C. Denial and appeal. The Administrator shall notify the applicant in
writing that a final certificate will not be filed if the Administrator
determines that:
1. The improvements were not completed within the authorized
time period;
2. The improvements were not completed in accordance with
the contract between the applicant and the city; or
3. The owner’s property is otherwise not qualified under this
chapter.
An applicant may appeal a denial to the hearing examiner within fourteen
(14) calendar days of issuance of the denial of a final certificate by filing a
complete appeal application and Appeal of Administrative Decision fee
with the Administrator. The appeal before the hearing examiner shall be
as provided in Ch. 12.01 KCC for a Process I action. No appeal to the city
council is provided from the hearing examiner’s decision. The applicant
may appeal the hearing examiner’s decision to the King County superior
court, under RCW 34.05.510 through 34.05.598, if the appeal is filed
within thirty (30) calendar days of receiving notice of that decision.
Sec. 3.25.100. Annual certification and report. Within thirty
(30) calendar days after the first anniversary of the date the city issued
the final certificate of tax exemption and each year thereafter for the
duration of the tax exemption period, the property owner shall file a
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notarized declaration and annual report with the Administrator indicating
the following:
A. A statement of occupancy and vacancy of the multifamily units
during the previous twelve (12) months;
B. A certification that the property has not changed use and continues
to be in compliance with the contract with the city and this chapter;
C. A description of any subsequent improvements or changes to the
property made after the city issued the final certificate of tax exemption.
D. The total monthly rent of each multifamily housing unit rented or
the total sale amount of each multifamily housing unit sold to an initial
purchaser during the twelve (12) months ending with the anniversary
date;
E. A breakdown of the number, type and specific multifamily housing
units rented or sold during the twelve (12) months ending with the
anniversary date; and
F. Any additional information requested by the city pursuant to
meeting any reporting requirements under Chapter 84.14 RCW.
City staff may also conduct onsite verification of the declaration and
reporting. Failure to submit the annual declaration and report shall result
in a review of the exemption per RCW 84.14.110.
Sec. 3.25.110. Cancellation of tax exemption.
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A. If the Administrator determines (a) the owner is not complying with
the terms of the contract or this chapter; (b)the use of the property is
changed or will be changed to a use that is other than residential; (c) the
project violates applicable zoning requirements, land use regulations,
building or fire code requirements; or (d) the property for any reason no
longer qualifies for the tax exemption, the tax exemption shall be
canceled and additional taxes, interest and penalties imposed pursuant to
state law. This cancellation may occur in conjunction with the annual
review or at any other time when noncompliance has been determined. If
the owner intends to convert the multifamily housing to another use, the
owner shall notify the Administrator and the King County assessor in
writing within sixty (60) calendar days of the change in use. Upon such
change in use, the tax exemption shall be canceled and additional taxes,
interest and penalties imposed pursuant to state law.
B. Notice and appeal. Upon determining that a tax exemption is to be
canceled, the Administrator shall notify the owner by mail, return receipt
requested. The property owner may appeal the determination by filing a
notice of appeal and Appeal of Administrative Decision fee with the city
clerk within thirty (30) calendar days, specifying the factual and legal
basis for the appeal. The hearing examiner will conduct a hearing under
Ch. 12.01 KCC for a Process I action. An aggrieved party may appeal the
hearing examiner’s decision to the King County superior court under RCW
34.05.510 through 34.05.598.
Sec. 3.25.120. Sunset of exemption for applications for
conditional certificates. The city shall not accept new applications for
conditional certificates as provided in this chapter after June 30, 2019,
unless extended by City Council action. Incomplete applications for
conditional certificates as of June 30, 2019 shall be returned to owners.
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Notwithstanding the above, the city shall process (A) pending complete
applications for a conditional certificate and (B) applications for extension
of the conditional certificate or final certificate received after June 30,
2019, as provided in this chapter. This chapter shall continue to apply to
all properties that have been or are issued a final certificate of tax
exemption under this chapter until expiration, termination, or cancellation
of the tax exemption.
SECTION 5. – Severability. If any one or more section,
subsection, or sentence of this ordinance is held to be unconstitutional or
invalid, that decision will not affect the validity of the remaining portion of
this ordinance and the same will remain in full force and effect.
SECTION 6. – Corrections by City Clerk or Code Reviser. Upon
approval of the city attorney, the city clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
or references to other local, state, or federal laws, codes, rules, or
regulations.
SECTION 7. - Effective Date. This ordinance shall take effect and
be in force thirty (30) days from and after its passage, as provided by
law.
SUZETTE COOKE, MAYOR
ATTEST:
KIMBERLEY A. KOMOTO, CITY CLERK
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19
APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
PASSED: day of , 2016.
APPROVED: day of , 2016.
PUBLISHED: day of , 2016.
I hereby certify that this is a true copy of Ordinance No.
passed by the City Council of the City of Kent, Washington, and approved by
the Mayor of the City of Kent as hereon indicated.
(SEAL)
KIMBERLEY A. KOMOTO, CITY CLERK
P:\Civil\Ordinance\Residential Urban Growth MF Tax Exemption RIVERBENDTARGETEDAREA.docx
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Appendix 2
Legend
Residential Targeted Area
Tax Parcel ¯
Residential Targeted Area33
34
ECONOMIC and COMMUNITY DEVELOPMENT
Ben Wolters, Director
Phone: 253-856-5454
Fax: 253-856-6454
220 Fourth Avenue S.
Kent, WA 98032-5895
Date: December 8, 2016
TO: Chair Bill Boyce and Economic & Community Development Committee
FROM: Charlene Anderson, AICP, Long Range Planning Manager
RE: Sound Transit Memorandum of Understanding
For Meeting of December 12, 2016
SUMMARY: When the Sound Transit Board adopted a preferred alternative to
extend light rail from the Angle Lake Station to the Federal Way Transit Center, the
Board directed Sound Transit staff to work with local jurisdictions on several areas
of concern to the Board. More specifically, the Board asked staff to work to
facilitate access to Highline College, enhance transit-oriented development potential
in the Midway area and at the S. 272nd Star Lake Station, and to consider
permitting processes that would provide certainty and predictability for the Project.
Sound Transit and City staff worked diligently on these areas for the past year. The
Memorandum of Understanding is meant to document the progress that has been
made on these issues, and will be submitted to the Sound Transit Board early next
year as the Board approves the project to build for the Federal Way Link Extension
project.
Staff from both agencies will also present to the committee an update on the
project.
EXHIBITS: Memorandum of Understanding
BUDGET IMPACT: None
cc: Ben Wolters, Economic &Community Development Director
P:\Planning\ECDC\2016\Pckt Documents\12-12-16\Sound Transit MOU.doc
MOTION: Move to recommend to the full City Council endorsement of the
Mayor’s signature on the Memorandum of Understanding between Sound
Transit and the City of Kent.
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MEMORANDUM OF UNDERSTANDING (Term Sheet)
BETWEEN THE CITY OF KENT AND SOUND TRANSIT
REGARDING THE FEDERAL WAY LINK EXTENSION PROJECT
KENT/DES MOINES AND S 272ND STAR LAKE STATIONS
1. Background
1.1. The City of Kent (City) is a Municipal Corporation operating under
Ch. 35A RCW, with authority to enact laws and enter into
agreements to promote the health, safety, and welfare of its
citizens and for other lawful purposes.
1.2. Sound Transit is a regional transit authority created pursuant to
chapters 81.104 and 81.112 RCW with all powers necessary to
implement a high capacity transit system within its boundaries in
King, Pierce, and Snohomish Counties .
1.3. The Federal Way Link Extension Project (Project) is part of the
Sound Transit 2 and Sound Transit 3 Plans for which voters
approved financing in 2008 and 2016, respectively, and is an element
of Sound Transit's Long Range Transit Plan.
1.4. Sound Transit is conducting environmental review for the Project in
accordance with the National and State Environmental Policy Acts
(NEPA and SEPA). Sound Transit and the Federal Transit
Administration published the Final Environmental Impact Statement
(EIS) on November 18, 2016. The Sound Transit Board is expected
to make a final decision on the project to be built in early 2017,
after consideration of the Final EIS.
1.5. In July 2015, the Sound Transit Board identified a preferred
alternative to extend light rail to Federal Way (Motion M2015-56).
The preferred alternative would extend south from the Angle Lake
Station in the City of SeaTac, cross SR 99 and continue along the
south edge of the future SR 509 alignment to Interstate 5 (I-5). It
would continue south along the west side of I-5. In the Kent/Des
Moines station area within the City, the preferred alternative would
transition west to be close to Highline College with a station west of
30th Avenue South and south of Kent-Des Moines Road. The
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alignment would then continue south along the west side of I-5 to
include the S 272nd Star Lake Station within the City and would
terminate at the Federal Way Transit Center Station in the City of
Federal Way.
1.6. Concurrent with the completion of the environmental review
process, Sound Transit advanced the design of the preferred
alternative in coordination with key stakeholders. The City and
Sound Transit agree that the current understanding of the preferred
alternative is as shown in the Pre-Final Preliminary Engineering (PE)
Submittal, dated September 23, 2016, which has been provided to
the City. Additional design elements that were not reflected in the
submittal but which will be incorporated in future submittals were
documented in the associated transmittal memo and accompanying
exhibits.
1.7. The City Council adopted the Midway Subarea Plan on
December 13, 2011, Ordinance No. 4009. The Plan conveys a range of
actions that prepares the Midway Subarea for the Project. The City also
adopted Midway design guidelines and development regulations, and
identified capital investments and other public and private strategies for
transit nodes in the Project area.
2. Purpose
This Memorandum of Understanding (MOU) is intended to address and
document progress toward goals identified by the Sound Transit Board in
Motion M2015-56, which directed Sound Transit staff to work with local
jurisdictions in the corridor to facilitate access to Highline College, enhance
transit-oriented development (TOD) potential in the Midway area and at the S
272nd Street station, and consider permitting processes that would provide
certainty and predictability for the Project.
3. Progress to Date
3.1. SEPA Compliance. Sound Transit is the lead agency for compliance
with the State Environmental Policy Act. In coordination with the
City, Sound Transit has completed the substantive and procedural
environmental review for the Federal Way Link Extension Project in
accordance with SEPA requirements, with the publication of the
Federal Way Link Extension Final EIS in November, 2016. The
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environmental review covers the City’s issuance of permits for the
Project as well as environmental mitigation, and the City will use
and rely upon the existing environmental documents to satisfy its
SEPA responsibilities, consistent with WAC 197-11-600.
3.2. Establish a Consolidated Permitting Process. The City commits to
work with Sound Transit to develop a consolidated permitting
process for Project review and approval. The City agrees to identify
and evaluate opportunities to streamline the process and avoid
duplication where feasible. Permitting is expected to occur in
2018 – 2020.
3.3. Resolve Impractical Code Requirements. The City has
determined that the Project as represented in the Pre-Final PE Submittal
and accompanying exhibits is generally well-designed. The City
commits to consider a development agreement that would provide
flexibility from development standards, if such flexibility would benefit
the City at an equal or greater value relative to the standards.
3.4. Support Light Rail System in Land Use Plans and Development
Regulations. The City commits to take all reasonable and feasible
measures necessary to support and accommodate the light rail
system in land use plans and development regulations.
3.5. Vesting. Under Washington law, certain building and
development regulations can “vest,” or be locked in, early in
the development process. Typically vesting occurs with
submittal of a complete building permit application. The City
and Sound Transit will cooperate to identify those regulations
that can be vested early in the process so that Sound Transit
can design the Project according to consistent standards, and
predict Project costs and timelines with reasonable certainty.
3.6. The City and Sound Transit commit to continue working
cooperatively with each other and with Project stakeholders to
build a new multimodal street along S 236 th Street that serves
as a gateway connecting the Kent/Des Moines Station and
Highline College.
3.7. The City and Sound Transit commit to coordinate with WSDOT
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to enact traffic calming measures along SR 99 in the vicinity of
the Kent/Des Moines Station.
3.8. The City and Sound Transit commit to continue working
cooperatively with each other and with Project stakeholders to
develop bike and pedestrian connections through the Midway
area that can connect to future bike and pedestrian facilities in
the City and in neighboring jurisdictions.
3.10.The City and Sound Transit commit to continue working
cooperatively with each other and with King County Metro to
facilitate east-west transit connections serving the Kent/Des
Moines and S 272 nd Star Lake Stations.
3.11. The City and Sound Transit commit to continue working
cooperatively with each other and with Project stakeholders in
support of TOD and place-making strategies in the Kent Des
Moines area, including but not necessarily limited to future
surplus property owned by Sound Transit.
4. Conclusion and Signature Block
This MOU is intended by the Parties to serve as a non-binding statement of the
Parties’ progress toward the goals identified by the Sound Transit Board in Motion
M2015-56 and shared by the City. Sound Transit and the City acknowledge that
this MOU is not a complete statement of terms and conditions that will apply to the
transactions contemplated in this MOU. If Sound Transit and the City determine it
is in their respective best interests to enter into an agreement or agreements at
some future date related to the subject matter of this MOU, the terms of those
agreements shall govern. The City and Sound Transit recognize that future
agreements will be subject to approval by the City Council and Sound Transit
Board and must comply with applicable federal and state regulations. Additional
issues not addressed in this MOU may be identified and included in these future
agreements.
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SOUND TRANSIT
__________________________ ___________________
Peter M. Rogoff Date
Chief Executive Officer
CITY OF KENT
__________________________ ___________________
Suzette Cooke Date
Mayor
41