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HomeMy WebLinkAboutReg 2004-11-15 Item 7C - Resolution - Negotiate Agreement for Use of Tukwila Pond with Wig Properties LLC Co UNCIL AGENDA SYNOPSIS of 4Z Initials ITEM NO. ►T1t� k 1 Meetin Date Prepared b y A I Mayor review I Council review M i 1 11/15/04 1 .gip 1 1 1 11/08/04 1 sl V� I h�-e' I I r rsos ,4 /5/ f 1 I. I j f,n- /-f. 1 l C ITEM INFORMATION CAS NUMBER: Ref 04-157 I ORIGINAL AGENDA DATE: 11/8/04 AGENDA ITEM TITLE Use of Tukwila Pond property for wetland enhancement CATEGORY Discussion Motion E Resolution Ordinance Bid Award Public Hearing Other Mtg Date 11 -08 -04 Mtg Date Mtg Date 11-15-04 Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor 0 Adm Svcs DCD Finance Fire Legal P &R Police PW SPONSOR'S The proposed resolution would authorize negotiation of an agreement with Wig Properties, SUMMARY LLC, under which enhancementt of wetlands at Tukwila Pond could be used to satisfy wetland mitigation requirements for development of the JC Penny's site. REVIEWED BY COW Mtg. ►1 CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: October 26, 2004 RECOMMENDATIONS: SPONSOR /ADMIN. Adopt resolution COMMTIIFEE Forward to City Council COST. IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $N /A $N /A Fund Source: N/A Comments: MT+G. DATE RECORD OF COUNCIL ACTION 11 -15 -04 11 -08 -04 COW review of draft resolution recommendation to place on Council agenda 11/15/04 MTO 'DATE ATTACHMENTS 11 -15 -04 Memo from Jack Pace dated 11 -09 -04 Memo from Steve Lancaster Resolution with Exhibits CAP Minutes dated 10 -26 -04 City oJ Tukwila Steven M. Mullet, Mayor Depa. tu ..ent()f Community Dettelopment Steve Lancaster, Director INFORMA TION MEMO To: From: Date: Subject: Mayor Mullet, Members of the City Council }1 JackP""e,'PeputyDirector, Department of Community Development . J November 9, 2004 Possible Development on J.C. Penny Site (17200 Southcenter Park ay) Project N()~E04-019, L04-069 ISSUE Adoption of Resolution authorizing the Mayor to enter into an agreement with Wig Properties for the use ofTukwila Pond as off-site mitigation. BACKGROUND The Committee of the Whole considered the draft Resolution at its meeting on November 8, 2004 and forwarded the Resolution tothe Council for action at its meeting on November 15, 2004. JnJormational material thataccornpanied Lhc draf'l RcsuluLiol1 is attached La this memo: Draft Resolution, Memorandum dated November 3, 2004 from Steve Lancaster and attachments related to Tukwila Pond and the J.C. Penny site. DISCUSSION The Council at the Committee of the Whole meeting on November 8, 2004 indicated support for the use of public property, in this instance Tukwila Pond, by a private developer for mitigation required for development ofa private site with wetlands. No funds are currently budgeted for City improvements to the functions and values of the Tukwila Pond wetland. Allowing Wig Properties to. enhance over three acres of the wetland at Tukwila Pond will improve the wildlife functions and other important functions of the Pond while at the same time permitting the redevelopment of an existing 18 acre sitc in the urban center. The Committee of the Whole also indicated that, depending on the outcome of its work session on November 23, 2004, it may be ready to adoptthe revisioned Sensitive Areas Ordinance on December 6,2004. - UJVV JUULltl.:~ItL~rDUUtl:;Vitl u, duii~iil VV - lW\Wttit, VViti>ILLlI15WIt Y0100 .. ntult~; L,UV-'+Jl-JU/ v .. rdJC.; L,VU-~jl -"jVUJ November 9,2004 Developmenton Lt. Penny Sitt1 RECOMMENDATION Adopt Resolution authorizing Mayor to enter into an agreement with Wig Properties for the use of Tukwila Pond as off-site mitigation Attachments: November3, 2004 Memorandum from Steve Lancaster Resolution and Exhibits A andB October 26, 2004 Community Affairs and Parks Committee Minutes 2 q:\JC Penny\II-9 Council Memo.doc City of TuktAtiia Steven M. Mullet, Mayor Department of Community DeYelopment Steve Lancaster, Director INFORMATION MEMO To: From: Date: Subject: Mayor Mullet, Members of the City Council .~V Steve Lancaster, Director, Department of Community Developmen November 3,2004 Possible Development on J.C. Penny Site (17200 Southcenter Parkway) Project No. E04-019, L04-069 ISSUE There are two issues for discussion: 1) Should the City allow private development mitigation on City-owned property? and 2) the timing of the adoption of a revised Sensitive Areas Ordinance (SAO) does not match thetimeframe needed by a proposed redevelopment with wetlands on the lC. Penny site. BACKGROUND The Community Affairs and Parks Committee considered this issue at their meeting on October 26, 2004 and agreed to forward this item to the Committee of the Whole for its review. The Department of Community Development has been working with Mr. Mon Wig, of Wig Properties,LLC, on then~development of the former J.C. Penny warehouse site totaling 18.77 acres. The site is located at 17200 Southcenter Parkway. Mr. Wig has optioned the property and is moving toward purchase of the site early next year. Development on the site will be subject to design review and SEP A (environmental review). A portion of the J. C. Penny site is developed with two buildings (19,600 sq. ft. and 200,000 sq. ft. in size). The remainder ofthe site is undeveloped and contain~ a number of wetlands. The majority of the. wetlands are of poor quality in terms of their functions and values, but they are regulated by the current Sensitive Areas Ordinance (SAO) and constrain development opportunities on that portion of the site as several of the wetlands are classified as Type 2 under the current SAO, and cannot be altered. Mr. Wig is proposing todevelopone or more multi-level parking garages, approximately 400,000 sq. ft. of retail space and several restaurants on the site. Staff have been working with Mr. Wig to incorporate elements of the Tukwila Urban Center plan into the site design and have been working with him on how the proposedSAOwill impact his proposed development. The current SAO under section TMC18.45.080 C.2.c. pennits off-site mitigation if a number of criteria can be met. 63tJO.Sqachce[lcer.jjou'~X<jra,,~uice#100.Tukwiia, Wasizingcon 98i88 · Phone: 206-431-3670 · Fax: 206-43i-3UUJ November 3, 2004 COUJlcil ofthe Whole J.c. Penny Property DISCUSSION Issue 1: Use of CitvProoertv for Off-site M iti!!ation Mr. Wig has been.working with the State Department of Ecology and the U.S. Army Corps of Engineers on the best approach to mitigation if the wetlands on the J.C. Penny site are filled. The general consensus of the State and Federal agencies is that the wetlands are of poor quality, not good candidates for enhancement on-site and that the best form of mitigation would be to mitigate off-site at another wetland. Mr. Wig would like to enhance the wetland at Tukwila Pond as his mitigation for alterations to the wetlands on the J.C. Penny site. It is a policy decision for the Council. on whether it is acceptable to permit mitigation of private development on City-owned property. The direction from the Council on this question will shape how developmenttakes place on the J.C. Penny site, and possibly other properties throughout the City. The draft mitigation plan pr()posed by Mr. Wig utilizes Tukwila Pond to provide enhancements to the Pond's wetland functions and values in lieu of on-site mitigation. This draft conceptual mitigation plan has been reviewed twice by the City's wetland consultant and comments provided to Mr. Wig's wetland consultant so thatthe conceptual mitigation plan can be refined. Data will be collected overthe winter at Tukwila Pond to assist in determining whether the mitigation plan will be successful. Until. that data has been analyzed the mitigation plan can be approved in concept only. The overall environmental impacts of development at the J.C. Penny site will be reviewed through SEPA, with additional emphasis on transportation and wetland issues. Before further review is conducted, staff needs guidance from the Council on whether it is acceptable to locate the wetland mitigation on a City-owned site. . Issue 2: Prooosed Sensitive Areas Ordinance: The current sensitive areas ordinance does not permit the majority of the rear portion of the J.C. Penny site to be developed, due to the type of wetlands and their location on the property. The proposed sensitive area ordinance includes language that would permit the alteration, with mitigation, of isolated wetlands formed on fill material in highly disturbed environmental conditions that have low wetland functions. The type of wetlands on the J.C. Penny site appear to fit this particular alteration option. The exact text of the proposed code language reads: "Isolated wetlands formed on fill material in highly disturbed environmental conditions and assessed as having low wetland functions may be altered and/or relocated under this chapter. These wetlands may include artificial hydrology or wetlands unintentionally created as the result of construction activities. The determination that a wetland is isolated is made through the Type 2 permit process. A mitigation or enhancement plan must be developed and must comply with the standards of mitigation required in this chapter." 2 q:\J.c.PCI1I1)'\COW 11-8.doc No\'ember 3.2004 Council of the Whole J.e. Penny Property The Council completed its initial review of the draft SAO and set a date for a work session on specific issues forNovember 23,2004. During its review of the "Wetland Uses, Alterations, and Mitigation" sectionofthe draft SAO, the Council discussed the subsection quoted above and did not indicate any desired changes to this section. A date for adoption of the revised SAD has not been established. Mr. .Wig has indicated he needs to. make a decision on whether to proceed with purchase of the J.C. Penny site by mid-November. Staff has prepared a Resolution that authorizes the Mayor to enter into an agreement with Wig Properties forthe use of Tukwila Pond as off-site mitigation. The Resolution also recognizes thatthe City Council is considering changes to the SAD that would make the proposed project possible. RECOMMENDATION Place the attached Resolution on the Council agenda for action on November 15, 2004. Attachments: October26, 2004 CAP Minutes 3 q:\J. C:PennY'.COW II-S.doc 0 a /:y: =i 1908 a City of Tuloin. Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE MAYOR TO NEGOTIATE AN AGREEMENT WITH WIG PROPERTIES, LLC, FOR USE OF CITY -OWNED PROPERTY AT TUKWILA POND. WHEREAS, the City of Tukwila owns property identified by the attached Exhibit A and referred to hereafter as the "Tukwila Pond Property and j' WHEREAS, the Tukwila Pond Property is deemed to have significant value as bird and wildlife habitat; and WHEREAS, portions of the Tukwila Pond Property are subject to a "Conservation Easement" intended to preserve the ecological system thereof, a copy of which is attached hereto as Exhibit B; and WHEREAS, much of the wetland area and associated habitat is significantly f degraded due to poor water quality; invasive, non -native vegetation; and lack of appropriate native vegetation; and WHEREAS, the City of Tukwila wishes to preserve and improve the habitat and related ecological and other values provided by the Tukwila Pond Property; and WHEREAS, Wig Properties has proposed development of property lying approximately 310 feet southwest of the Tukwila Pond Property and within the same watershed, which property is identified as the "JC Penny's Site" by Exhibit A; and WHEREAS, the Wig Properties proposed development site contains approximately 1.16 acres of wetland; and WHEREAS, Wig Properties has proposed that it mitigate the adverse impacts of developing these wetlands by enhancing wetlands at the Tukwila Pond Property at a ratio of 3 to 1; and WHEREAS, off -site mitigation of wetland impacts would provide significant benefits to Wig Properties' development proposal; and WHEREAS, the Tukwila City Council is considering amendments to the City's Sensitive Areas Ordinance that would make it possible to mitigate the impacts of filling these wetlands at the Tukwila Pond Property; and WHEREAS, the potential of off -site mitigation for the Wig Properties development proposal occurring at the Tukwila Pond Property provides a unique opportunity to r improve the overall functions and values of wetlands and wildlife habitat on publicly- ;i owned property within a heavily urbanized area; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: TukwilaPond 11/12/04 Page 1 of 2 Section 1. The Mayor of the City of Tukwila is hereby authorized to enter into an agreement with Wig Properties or its designee, allowing the use of a portion of the Tukwila Pond Property for mitigation of wetland impacts associated with development of the "JC Penny's Site," identified by Exhibit A. Section 2. Any agreement for use of the Tukwila Pond Property for such mitigation shall be consistent with all applicable City of Tukwila ordinances and regulations, including the Tukwila Sensitive Areas Ordinance in force at the time of development approval. Section 3. Any agreement for use of the Tukwila Pond Property for such mitigation shall incorporate measures approved by the Director of the Department of Community Development to ensure the long -term ecological success of the mitigation program. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2004. Al"1 AUTHENTICATED: rf- y Jim Haggerton, Council President Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Office of the City Attorney Resolution Number: Tukwila Pond 11/12/04 Page 2 of 2 Tukwila Pond Property Aerial Photo Declaration of Conservation Easement Community and Parks Committee October 26, 2004 Present: Pam Linder, Chair; Joe Duffie, Dave Fenton Carol Lumb, Stacy Hansen, Evie Boykan, Bruce Fletcher, Rick Still, Malcolm Neely, Steve Lancaster, Bob Giberson, Jim Morrow, Gail Labanara, Marty O'Brien, Tracy Galloway, Rhonda Berry, Paul Surek, Mayor Mullet, Lucy Lauterbach; Mon Wig, Leshya Wig, Richard Freiheit, Chad Armour-Penney's Development; Michelle Roedel,.Gretchen Muller-Backyard Wildlife Habitat 1. BackvardWildlife Fair Gretchen spoke of some of the benefits the fair has brought to Tukwila. Theeventbrings abroad spectrum of regional media and people to Tukwila, and many of them are pleasantly surprised that the city is more than Southcenter. People who have come are from Bellingham, Olympia, Duval.and Whidbey Island and they are part of the 3,000 people who have visited the fair in the past.. Over 47% of Washington residents enj oy wildlife viewing, and that excludes hunters and fishers. There are also some state programs that would be great tie- ins if the fair were to expand..Watchable.Wildlife, for example, has state marketing and promotional programs as well as small business growth opportunities. School children are educated about wildlife. Tukwila received recognition from the State Senate for the fair. Michelle asked the Committee for a commitment of city funds of$10,000, excluding in-kind help. They need money to help their marketing and program funds, and they hope to hire a part- time person to manage the project this year.. Both Michelle and Gretchen have busy full time jobs that prevent them from putting too much time in on the fair. If they are unable to get funding by January, they may be forced to hook up with another already-established event at Woodland Park zoo or in Olympia. The Committee supported the request for $10,000 and said they would take therequest to the Council as part ofthe budget review. Alan said some funds may be able to be taken from Tourism and Marketing, as this event does bring people into the city. Recommend $10.000 SUDoort for BackvardWildlife Fair. 2.2005-2006 Human ServicesProe:rams The Human Services Advisory Board members each spent 19. hours reading through proposals from social agencies that wanted funds from Tukwila. After analyzing and discussing the options, they rated the proposals and the past performa..ice from the agencies that have worked for us before. The result was that they recommended twenty nine agencies be. funded. The agencies ranged from support for self-sufficiency; positive family relationships; urgent basic needs; and information and referrals. They leave some contingency funds, which in2004 they used for rental assistance. Four programs are aimed at limited English speakers. Auorove recommendations for fundine:: send to COW for Council aDDroval. .~.' .3. Develooment ofJC Pennev's site The architect for the proposed new development at the 11\ old Penney's warehouse on SouthcenterParkway spoke about the developer Mon Wig. Mon Wig has built several buildings and small malls in Lakewood and Olympia. There are wetlands on the back portion of this Penney's property, and the developer hopes to be able to fill them in and mitigate the wetland by improving Tukwila pond. Richard said Mon Wig builds developments and holds them instead of selling them. His buildings are always high quality, and Mon has always shown creativity and persistence in development. He and the architect have done about 25 projects together.Mon said when he develops somewhere and gets to know the city, he Community and Parks Committee October 26,2004 Page 2 generally does more than one developmentthere, as he's done in both Lakewood and Olympia. Theirplans are to widen Minkler to the end of their building site, which will include two two- story buildings and a parking garage along with retail development. To be able to do that, they'll want to use the L16acres in Type Jwetlands on the site. Changes in the SAO the Council is now considering will be needed in order to mitigate off site. Both their environmental engineer and the Army Corps of Engineers have recommended mitigation off site, as the wetland were only created from fill that was put in some years ago. They would replace invasive grasses at Tukwila pond with nativeplantings. MonWig expressed concern with the City Council approving the SAOchanges in mid November and the pond mitigation plan at the end of November. He is trying to close on the property in January, and needs bank financing and appraisals before then. Steve Lancastersaid our wetland consultant is working to make sure the mitigation plan at Tukwila Pond will work. One issue there is that monitoring will be needed to see what the problems are, and that can take some time. A solution to moving ahead could be to authorize the mayor to .enter into an agreement for use of the property. The Committee wanted to be sure the Council can get through theSAO in a timely manner, and discussed the possibility of needing an extraCouncil meeting to get through some of the tough issues in the SAO. Intent to proceed to lettinC SA() review done:infonnation. 4. BudletReview The Committee reviewed Evie's and Stacy's Human Services budget, and the Parks and Golf budgets. One concern was funding the Wildlife Habitat Fair. Alan said Tourism could fund a portion ofthe $10,000 request, and the other funding would have to be found elsewhere. Bruce wants to replace some fitness equipment in the weight room, and thinks the additional revenue needed will come from user fees, which he's estimated conservatively. . Prolress made on budeet review: reschedule. \>;Uommittee chair approval . -.