HomeMy WebLinkAboutCAP 2014-04-15 Item 2F - Development Agreement - Amendment to 223 Andover Park East with South Center WA LLCCity of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Community Affairs and Parks Committee
FROM: Derek Speck, Economic Development Administrator
DATE: April 9, 2014
SUBJECT: Washington Place Development Agreement Amendment
ISSUE
The owners of 223 Andover Park East would like to construct a building with a hotel and
apartments or condominiums and have requested an amendment to an existing development
agreement in order to vary the City's zoning and sign code requirements.
BACKGROUND
In March 2013 the City executed a development agreement with South Center WA, LLC so that
the owner of 223 Andover Park East (the former Circuit City site) could construct a building up
to 180 feet tall and that included apartments or condominiums. Since that time, the developer
has continued to refine the project plan. Recently, the developer submitted an application for the
City's design review process which is scheduled to be considered by the Board of Architectural
Review (BAR) on May 22, 2014. As currently proposed, the project does not meet certain
zoning and sign code standards. Therefore, the City Council would need to approve an
amendment to the development agreement allowing modifications to those standards to enable
the BAR to consider the project.
DISCUSSION
Due to the unique nature of this project, there are three areas in which the project needs
flexibility from our zoning code: number of parking stalls, area of open space, and building
height. Additionally, the proposed project needs flexibility regarding the sign code, especially
regarding building mounted signs.
Parking — As shown in the table below, the proposed project would include 370 residential
units, 189 hotel rooms, and 498 parking stalls. The developer hired the Transpo Group to
estimate the parking demand and their technical analysis is attached. Transpo estimated a daily
peak parking demand of 340 stalls for the residential units and 118 stalls for the hotel for a
combined total of 458 stalls resulting in 40 extra stalls.
The City's current zoning would require 939 stalls. Staff recognizes that this parking standard
was based on a suburban, low -rise, non - transit oriented development style of apartment
building and is excessive for a project in the core of the Urban Center. As currently proposed,
the Southcenter Plan and related TUC zoning changes would require 594 parking stalls. Under
that code, the project would be short 96 stalls.
The key question is whether the proposed project includes sufficient parking. It is a challenging
question because this type of multi - family development doesn't exist anywhere in South King
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INFORMATIONAL MEMO
Page 2
County. Although staff would feel more comfortable if the project included more parking, staff
acknowledges that adding a floor to the parking garage would be very expensive. It is
commonly accepted that the cost of constructing a parking garage is approximately $30,000 per
stall. It is possible that the cost would make the project financially not viable.
The following are reasons why the parking may be sufficient:
(a) The Transpo Group's estimate may reflect the actual demand. Transpo Group based its
estimate of parking demand for the residential units on King County's Right Size Parking
Calculator, which is a tool designed for these types of projects. The developer also
plans to charge the residential tenants separately for parking stalls which may reduce
the number of vehicles tenants use. The hotel guests may not all need parking since the
hotel will operate an airport shuttle and some rooms may be contracted for airline
employees who would not have cars.
(b) Some other successful high -rise apartment buildings have similar or less parking. A
chart is attached listing some apartment buildings in Seattle that have even fewer
parking spaces than proposed for this project. However, Seattle has significantly more
amenities and jobs within walking and transit of those other apartments.
(c) The developer has a strong interest to ensure sufficient parking. Without it, they may
have a hard time getting financing or a hotel operator.
(d) The developer and property manager can implement a valet parking service when
demand exceeds supply. The project could fit an additional 103 parking stalls on site if
valet service is implemented.
(e) The risk to adjacent properties if there is insufficient parking or if the developer doesn't
implement a valet parking service would be relatively minimal. This site is not close to a
single family residential neighborhood and commercial property owners could have cars
towed if necessary.
Parking Comparison
Developer Proposal
City Zoning Code
Units
Parking
Spaces
Daily Peak
Demand
Current
Proposed
Residential
Studio
154
308
154
One bedroom
150
300
150
Two bedroom + den
63
126
95
Three bedroom
3
6
6
Subtotal
370
340
740
405
Hotel
189
118
199
189
Total
559
498
458
939
594
Note: The parking requirement shown in the current City zoning column undercounts 19 parking stalls for employees
for the residential portion.
That being said, staff still believes that the residential parking requirements proposed for the
Southcenter Plan are the minimum necessary for this project. Those requirements would be 1
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INFORMATIONAL MEMO
Page 3
stall per studio, one stall per one bedroom, 1.5 stalls per two - bedroom, and 2 stalls per two -
bedroom unit.
Regarding the hotel parking, the proposed Southcenter Plan would require one stall per hotel
room. Transpo's analysis has merit; however, staff supports a maximum reduction from one
stall per hotel room to 0.7 stalls per hotel room based on Tukwila's general hotel occupancy
level of 70 %. If the developer is able to provide data reflecting a lower parking utilization rate at
nearby hotels in Tukwila, staff may support a lower requirement.
Using the proposed Southcenter Plan for the residential parking requirement and assuming a
70% occupancy level for the hotels with one stall per occupied hotel room, the required parking
would be 537 stalls. In that case, the proposed project is short by 39 stalls.
Open Space— The City's current zoning code requires 200 square feet of open space per
residential unit for use of the residents which would total 74,000 square feet, which would be
nearly equivalent to 50% of the lot area. The City's proposed zoning would require 10% of the
residential floor area and 25 square feet per hotel room, which would be 25,525 square feet,
larger than one entire floor of the building.
The project as proposed has approximately 20,000 square feet of open space. Most of the
open space is on the nineteenth floor which includes a clubhouse with a flexible room
comprising a kitchen and area for meetings, lounging, dining and playing games. It also has an
exercise room, a hot tub, and an outdoor area with seating /lounging, barbecue grills, and an
outdoor fireplace. The ground level includes a lobby, cafe, swimming pool and an outdoor pet
area. In addition to the 20,000 square feet of open space for the residents and hotel guests, the
development would also create a fifteen foot wide tree lined sidewalk with bench seating.
Staff supports the amount of open space as proposed by the developer. Given the location of
this project, there is significant indoor and outdoor space for socializing and recreation within
walking distance such as an exercise club, a bowling alley, the largest indoor mall in the Pacific
Northwest, the Green River bike and pedestrian trail, the Interurban bike and pedestrian trail,
and Bicentennial Park.
Building Height— In early 2013 the City approved a development agreement for this project to
entitle the building to be up to 180 feet in height. That was based on a seventeen story building
which did not include a clubhouse on the roof. The project has evolved from that earlier concept
and now includes eighteen stories plus the roof top clubhouse. In addition, the developer is
negotiating an agreement to operate the hotel as a Four Points by Sheraton and Sheraton has
requested some additional height on the second floor (mezzanine level) so the meeting rooms
can have higher ceilings.
Staff supports entitling the building for additional height up to 190 feet. This site is in the core of
Tukwila's Urban Center and is a good location for more urban type of development. Higher
ceilings provide a higher quality experience for the meeting rooms and the roof top club house is
an amenity that improves the entire project.
Signage — The developer has proposed signs that exceed the size currently allowed by the
City's sign code on the north and west faces and on the canopy above the main hotel entrance
on the east side as shown in the attached plans.
47
INFORMATIONAL MEMO
Page 4
North Face: The proposed wall sign is 840 square feet. Assuming the project has a public
entrance on the north side, the sign code allows a sign up to 150 square feet.
West Face: The proposed sign is 840 square feet. Assuming the project has a public entrance
on the west side, the sign code allows a sign up to 150 square feet.
East Face Canopy: The proposed sign lettering is 3.5 feet in height whereas the sign code
allows lettering up to one foot in height.
Although the developer has not requested signs on the parking garage, the sign code would
allow two signs on the north face of the parking garage and two signs on the west face of the
parking garage. Each of the four signs could be up to 288 square feet. It is unlikely that signs
on the parking garage would be clearly in view from Baker Boulevard or other public street.
The City's sign code was created in the context of our current built environment without
specifically anticipating large, tall buildings like this project. As such, limiting the wall face signs
to 150 square feet may be too conservative. Larger signs may improve wayfinding,
marketability of the property, and competiveness of our Urban Center. The City of Seattle does
not allow signs at the top of downtown high rises but the City of Bellevue does. Bellevue limits
its signs to a maximum of 300 square feet.
Although the 840 square foot signs proposed for the north and west faces are significantly larger
than the 150 square feet allowed by the sign code, they are still only 2% and 2.6% of the
building faces, respectively, if the building face is calculated based on the plane perspective as
viewed from afar and not strictly the plane of the wall on which the sign is attached.
Some wall faces at the mall are allowed to have signs up to 500 square feet, though the actual
signs may not be that large. Buildings in the MIC /H District may have signs up to 1,500 square
feet, depending on the size of the wall. If the MIC /H District code were applied to this project
the north face sign could be up to 733 square feet and the west face sign up to 561 square feet.
Staff supports allowing larger signs for this project because the wall faces are considerably taller
and larger than contemplated in the sign code and the larger signs can still be aesthetically
pleasing as long as the signs are of the channel letter design as proposed. Staff recommends
approving signs on the north and west faces based on the formula used in the MIC /H District
and a canopy sign for the east entrance with channel letters up to 3.5 feet tall.
Staff recognizes that the community may have reservations about entitling this project to the
parking, open space, building height, and signage as described.
This is a pioneering project from which we will learn a lot about parking demand in our Urban
Center core. Given the City's vision to have a transit - oriented neighborhood utilizing the
commuter rail station, bus transit center, Interurban and Green River bike trails, and nearby jobs
and amenities, this is a good opportunity to push the envelope to encourage development.
This project is a unique opportunity to encourage transit oriented development with a higher end
multi - family residential component than currently exists in Tukwila. Since this type of product
does not currently exist, it is difficult to prove the market demand in order to get financing. It is a
unique confluence of factors such as the property owner's knowledge and commitment to the
local area, a large enough site to enable some surface parking, the EB -5 financing structure,
48
INFORMATIONAL MEMO
Page 5
and the hotel participation that makes this project a possibility. The project exemplifies many of
the goals reflected in the City's vision for the core of the Urban Center. If the project is
successful, it may inform future adjustments to Tukwila's zoning and sign codes.
Process — Typically, a draft amendment to the development agreement would be attached to
this report. In order to meet the developer's requested timeframe for moving the project
forward, staff is asking for the Community Affairs and Parks Committee (CAP) to consider this
item without the draft amendment. If the Committee forwards this item to the full Council, staff
will draft an amendment to the existing development agreement.
The amendment to the development agreement would need to be approved following a public
hearing, which is scheduled for the Council meeting of April 28th. Staff posted official notice for
the public hearing on April 14th. If CAP decides to not forward this item to the Council, staff will
cancel or reschedule the public hearing.
The City is holding an open house for the public to meet with the developer and city staff and
discuss the project and proposed amendments to the development agreement. The open
house is scheduled for Wednesday, April 16th from 4:00 to 5:30 PM at Albert Lee Appliance.
Staff mailed invitations to the nearby businesses and property owners.
The developer has also asked for the City to approve a multi - family property tax exemption and
other financial incentives. Staff is still researching those options and will return to Council at a
future date, possibly in May or June.
RECOMMENDATION
The Committee is being asked to forward this item for a public hearing at the City Council's
Committee of the Whole meeting on April 28, 2014 and approve a development agreement at
the May 5, 2014 Regular Meeting.
ATTACHMENTS
Washington Place schematic design plan set
Technical memorandum with parking analysis by Transpo Group dated April 2, 2014
Chart of parking counts dated April 9, 2014
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Washington Place Residence & Hotel
3/31/2014
Hotel GBA
20,397 SF
22,470 SF
21,637 SF
V) LL
■
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Lo
,ti
N
22,074 SF
22,074 SF
22,074 SF
22,074 SF
22,074 SF
22,074 SF
22,074 SF
22,175 SF
22,175 SF
22,175 SF
22,175 SF
22,175 SF
21,975 SF
21,975 SF
ln
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189 Units 401,049 SF
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21 Units
21 Units
21 Units
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21 Units
21 Units
21 Units
21 Units
21 Units
Residential Tower
00
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63 13 BR Units l
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l0
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Lower Level
1st Parking Level
2nd Parking Level
3rd Parking Level
Surface Parking
Total Parking Shown
CC Ur N
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(575 sf)
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Cr)
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27280
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1ST Level
2ND Level
3RD Level
Total Gara
Studio
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N
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Total Studio Units
TOTAL REQ'D
594
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W
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c-1
c-1
c-1
c-1
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.-1
.-1
.-1
.-1
.-1
c-1
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Hotel Parking Requirement
189 Stalls
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N
35 Units
35 Units
35 Units
35 Units
35 Units
35 Units
14 Units
370 Units
1 /Hotel Unit
Stalls
Building Area
7,793 SF
11,583 SF
12,418 SF
12,418 SF
12,539 SF
12,539 SF
12,539 SF
12,539 SF
12,539 SF
12,539 SF
12,539 SF
22,175 SF
22,175 SF
22,175 SF
22,175 SF
22,175 SF
21,975 SF
21,975 SF
5,180 SF
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Residential Parking Development
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52.50
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70.82
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Residential
1st floor level
2nd floor level
3rd floor Level
4th floor level
5th floor level
6th floor level
7th floor level
8th floor level
9th floor level
10th floor level
11th floor level
12th floor level
13th floor level
14th floor level
15th floor level
16th floor level
17th floor level
18th floor level
19th floor level (Club &Roof)
Club Roof
Studio Unit
11 BR Unit
12 BR + Den
3BR
'Total
91
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TECHNICAL MEMORANDUM
�fafSpOGROUP
WHAT TRANSPORTATION CAN BE
Date: April 2, 2014
TG: 14027.00
To: Omar Lee — Washington Tower LP
From: Kevin L. Jones, P.E., PTOE — Transpo Group
cc: Eric Guion, AIA — Group West Companies PLL`C
Subject: Washington Place Mixed -Use — Parking Analysis,..
This memorandum presents our estimate of daily peak parking demand for the subject project as well
as compares this estimate to (1) the number of required parking stalls based on the City of Tukwila's
existing and proposed zoning codes and (2) the proposed parking supply.
Project Description We understand the project site is located at 223 Andover Park East in Tukwila
near existing shopping, restaurants and entertainment and within walking distance of the existing
Green River Trail. It is also located near the future Tukwila Transit Center and within walking distance
of the future Tukwila Sounder Station. The proposed project would include the demolition of a
40,580- square foot (sf) building formerly occupied by Circuit City and construction of a 19 -story
mixed -use building with 370 apartment units and 189 hotel rooms. The project would include a mix of
apartment unit types rented at local market rates. The number of studios and one- to three - bedroom
apartment units is summarized below along with the average size and anticipated monthly rent for
each unit type:
• 154 studio units averaging 353 sf and rented at approximately $790 /month
• 150 one - bedroom units averaging 578 sf and rented at approximately $1,000 /month
• 63 two- bedroom plus den units averaging 996 sf and rented at approx. $1,550 /month
• Three three - bedroom units averaging 1,511 sf and rented at approximately $1,900 /month
We understand the hotel will be branded as a "4Points by Sheraton." It will include a shuttle program,
providing transportation for guests to /from Sea -Tac International Airport which is located less than
five miles to the west. Given this proximity and provision for shuttle service, the hotel plans to contract
with the airlines and reserve rooms for pilots, flight crew, etc. An average annual room occupancy
rate of 70 percent is anticipated based on similar hotels.
The project would also provide 208 surface parking stalls and 290 garage parking stalls for a total of
498 stalls. We understand the monthly price for residential parking would be approximately $150 per
stall and this price would be in addition to the monthly rent.
Parking Demand Peak parking demand was estimated differently for the residential and hotel
components of the project. For the residential component, we used the King County Multi - Family
Residential Parking Calculator (www.riohtsizeparkino.orq) to calculate the estimated number of
parking stalls that would be used per apartment unit. The calculator is a map -based statistical model
that estimates parking use for a particular parcel based on local data collected at over 200 existing
multi- family developments in 2012. The calculator was created by King County Metro using grant
monies awarded from the Federal Highway Administration (FHWA) Value Pricing Program and takes
into consideration surrounding factors such as existing population, employment, and transit service
concentrations.
In using the calculator, we first selected the parcel representing the project site. Next, we entered the
number, size and anticipated monthly rent for each apartment unit type along with the monthly price
per stall for residents of the building. Although it would be reasonable to increase the existing transit
lrartopo Group 11730116th Avenue N.E., Suite 600 Kirkland, WA 98034 425 -821 -3665 Fax: 425 -825 -8434
111
service concentration recognizing the nearby investments in the Tukwila Transit Center and Tukwila
Sounder Station, we did not to ensure a reasonably conservative estimate of future residential
parking demand.
As-shown-in the. attached the tool estimates that the residential component of the proposed`
development would generate, on average, ,a daily peak parking demand of approximately
0.92 vehicles per; apartment unit. This translates to approximately 340 vehicles with a total of
370 apartment units. The tool reports this estimate as strong (accurate) for the parcel in which the
project site is located.
The average parking rate published in Parking Generation (Institute of Transportation Engineers
[ITE], 4th Edition, 2010) for "Hotel" was used to estimate peak parking demand for the hotel
component. The average weekday peak period parking demand is 0.89 vehicles per occupied room
(see attached) and based on an anticipated average annual room occupancy of 70 percent, it Is
estimated that the hotel would generate a daily peak parking demand of approximately 118 vehicles
(189 x 0.70 x 0.89 = 118). This is considered a conservative estimate because it does not account for
the planned shuttle program nor the strategy to reserve rooms for those in the airline industry, two
elements not incorporated in the average ITE parking rate that would likely result in less parking
demand than would be generated otherwise.
Combining our parking demand estimate for the hotel with our estimate for the residential component,
we anticipate the proposed mixed -use development would generate a peak parking demand of
approximately 458 vehicles (340 + 118 = 458).
Parking Analysis The City's existing zoning code requires two parking stalls for each apartment
unit with up to three bedrooms and one stall for each hotel room plus one stall for employees for each
20 rooms, rounded to the next highest figure. As such, the City would require 740 stalls
(370 x 2 = 740) for residential parking and 199 stalls ((189 x 1) + (189 / 20) = 199) for hotel parking, a
total of 939 stalls. This total supply is approximately 481 more stalls (939 - 458 = 481) than the
estimated total daily peak parking demand described above.
We understand the City has proposed changes to the existing zoning code as it relates to the Tukwila
Urban Center District in which the project site is located. These changes would require fewer parking
stalls than with the existing zoning code. For example, Table 4 of the Planning Commission's
Recommend Draft Chapter 18.28 (October 2012) recommends one parking stall for each studio or
one - bedroom unit, 1.5 stalls for each two- bedroom unit, two stalls for each unit with more than two
bedrooms, and one stall for each hotel room. If approved, the City would require 404 stalls ((304 x 1)
+ (63 x 1.5) + (3 x 2) = 404) for residential parking and 189 stalls (189 x 1 = 189) for hotel parking,
a total of 593 stalls. This total supply is approximately 135 more stalls (593 - 458 = 135) than the total
daily peak parking demand.
With the project proposing a total of 498 parking stalls, we estimate that this supply is approximately
40 more stalls (498 - 458 = 40) than the estimated total daily peak parking demand. Based on the
average parking rate in Parking Generation for "Hotel," it is worth noting that the proposed supply
would accommodate the peak parking demand even if the hotel was 90 percent occupied and without
the strategies to reduce hotel parking demand described earlier2.
The proposed code would require approximately 64 more residential parking stalls than the estimated residential
peak parking demand. Assuming these additional stalls would require more structure parking, these stalls would be responsible
for approximately 10,800 kg in annual greenhouse gas emissions (carbon dioxide equivalent) from construction and
maintenance and approximately 288,600 kg in greenhouse gas emissions (carbon dioxide) from vehicle use of residents, as
calculated by the King County Multi - Family Residential Parking Calculator.
2
Based on projections, it is unlikely that room occupancy would exceed 90 percent with any regularity but if this was to
occur, the owner is committed to provide valet parking service to off -set the incremental increase in parking demand.
ki-transpoGRouP
112
2
Conclusions Conservatively, we estimate the proposed project would generate a daily peak parking
demand of approximately 458 vehicles, less than the proposed parking supply and significantly less
than what the City's existing and proposed zoning codes would otherwise require. Peak parking
demand would likely be even less as we did not adjust our estimate to reflect the future transit
concentration of the area nor the hotel's planned services geared toward guests (air travelers, pilots,
flight crew, etc.) affiliated with the nearby airport.
KLJ/
Attachments: Screen Shots from King County Multi- Family Residential Parking Calculator
Excerpt from Parking Generation for "Hotel"
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113
Screen Shots from King County Multi- Family Residential Parking Calculator
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Screen Shots from King County Multi - Family Residential Parking Calculator
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Screen Shots from King County Multi- Family Residential Parking Calculator
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Land Use: 310
Hotel
Average Peak Period Parking Demand vs. Occupied Rooms
On a: Weekday
Location: Suburban
-Statisitt
Peak Pirioi i)einnd
Peak Period
12 :00 -1:00 p.m.; 7:00 -10:00 p.m.;
11 :00 p.m. -5:00 a.m.
Number of Study Sites
20
Average Size of Study Sites
315 occupied rooms
Average Peak Period Parking Demand
0.89 vehicles per occupied room
Standard Deviation
0.31
Coefficient of Variation
35%
95% Confidence interval
0.75 -1.02 vehicles per occupied room
Range
0.61 -1.94 vehicles per occupied room
85th Percentile
1.08 vehicles per occupied room
33rd Percentile
0.72 vehicles per occupied room
P = Parked Vehicles
900
800
700
600
500
400
300
200
100
0
Weekday Suburban Peak Period
Parking Demand
P= 1.10x -59
R2= 0.74
. .-
0
200 400 600
x = Occupied Rooms
800
• Actual Data Points
Institute of Transportation Engineers
118
Fitted Curve
1761
- - - - Average Rate
Parking Generation, 4th Edition
Comparision of Apartment Parking Ratios
Name of Project Location Year Built Units Parking Stalls Ratio
2030 8th Ave. Seattle 2013 430 242 0.56
Alto Seattle 2012 184 125 0.68
Coppins Well Seattle 2012 236 107 0.45
HUE Seattle 2013 100 59 0.59
M Street Seattle 2007 220 110 0.50
Pine & Minor Seattle 2013 120 28 0.23
The Martin Seattle 2013 188 125 0.66
The Post Seattle 2013 208 124 0.60
Via 6 Seattle 2013 654 434 0.66
Viktoria Seattle 2014 249 138 0.55
Bravern Bellevue 2010 446 756 1.70
Excalibur Bellevue 2004 210 224 1.07
119
120