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HomeMy WebLinkAboutReg 2010-08-02 Item 6A - Ordinance - Moratorium for Preservation of Industrial Land Within Manufacturing Industrial Center (MIC)1 CAS NUMBER: 10-086 Fund Source: Comments MTG. DATE 08/02/10 MTG. DATE 08/02/10 COUNCIL AGENDA SYNOPSIS Inztzals Meeting Date I Prepared by Mayop=r7Ntew I r ounczl review 08/02/10 I RF 1 j, )j. k ITEM `INFORMATION ORIGINAL AGENDA DATE: AUGUST 2, 2010 AGENDA ITEM TITLE Renew moratorium on acceptance /issuance of applications on certain non- industrial uses within the Manufacturing Industrial Center(MIC). CATI .GORY Discussion Motion Resolution Ordinance n Bid Award Public Hearing Other Mtg Date Mtg Date Mtg Date Mtg Date 08/02/10 Mtg Date Mtg Date 08/02/20 Mtg Date SPONSOR Council Ma Adm Svcs DCD Finance Fire Legal P&R Police PW SPONSOR'S Ordinances #2277 (2/15/10) and #2280 (4/5/10) established and modified a six -month SUMMARY moratorium on accepting applications for certain non industrial uses in the Manufacturing Industrial Center (MIC). The moratorium will expire on 8/15/10. Council will hold a hearing to consider renewing the moratorium for six months to allow staff time to continue to study the issues pertaining to development in the the MIC. REVIEWEID BY COW Mtg CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte n Arts Comm. Parks Comm. Planning Comm. DATE: RECOMMENDAT SPONSOR /ADMIN Department of Community Development COMMI"iTEE N/A COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED 'RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated July 28, 2010, with attachment Ordinance in final form ITEMNO. 2 TO: Status: City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Tukwila City Council FROM: Nora Gierloff, Deputy DCD Director DATE: July 28, 2010 SUBJECT: Manufacturing Industrial Center Study Jim Haggerton, Mayor ISSUE The current moratorium on the acceptance and issuance of applications for certain non- industrial uses within the Manufacturing Industrial Center (MIC) zones will expire soon. Extending the moratorium will permit work to continue on the study addressing issues in the MIC, and allow staff to report back to the Planning Commission in the fourth quarter, 2010. BACKGROUND The DCD work plan includes a study and update of Tukwila's Manufacturing Industrial Center and SEPA Planned Action which was first adopted in 1995. In order to prevent the establishment of incompatible uses during the duration of the study the Tukwila City Council adopted Ordinance No. 2277 on February 16, 2010, which declared an emergency and established a moratorium. The Tukwila City Council amended Ordinance 2277 on April 5, 2010. At that time staff from the Department of Community Development presented the City Council a work plan intended to study and address issues with the City's MIC zones. (Attachment A). DISCUSSION Manufacturing Industrial Centers are designated areas in which the region aims to preserve and enhance concentrated manufacturing and industrial activity. To be eligible, a city commits to discourage incompatible land uses within MIC boundaries. Tukwila's Comprehensive Plan vision for the MIC supports "existing and future industrial activity to maximize employment and economic benefits to the people of Tukwila and the region." The City has periodically received requests to revise its industrial land policies and codes, either to remove land from industrial designation or to allow a wider range of uses in the Manufacturing /Industrial Center. With this in mind, staff is currently reviewing information pertaining to the 965 -acre Manufacturing Industrial Center. This memo contains preliminary information about land use and employment in the Manufacturing and Industrial Center, and is part of the study of the Manufacturing /Industrial Center authorized by Ordinance 2280. In 2010, Tukwila's Manufacturing /Industrial Center (MIC) is characterized by light to heavy manufacturing uses, commercial development that supports industrial activity, storage facilities, office and service development, and some commercial development along the major arterials. Several older single family residences are located in the MIC, as well as Duwamish Riverbend Hill Park, and several designated public wetland habitats. A significant portion of MIC is in governmental use, including the southern third of King County International Airport, the METRO transit bus barn, the US Department of Homeland Security, and the US Postal Service regional processing facility. Group Health provides service jobs. W \2010 InfoMemos \MIC Moratorium Renewal 7- 26- 10.doc 3 4 INFORMATIONAL MEMO Page 2 Since the MIC is an established industrial area, a complete infrastructure system has been in place for many years. East Marginal Way contains sufficient capacity to meet the MIC's anticipated transportation needs, although there can be congestion during peak hours. Pedestrian and bicycle facilities are planned to enhance transportation infrastructure along East Marginal Way. The MIC is an important source of direct (property tax) and indirect (sales tax) revenues received by Tukwila. There are currently 131 businesses located in the Manufacturing /Industrial Center. In 2009, "covered" employment was approximately 14, 353, more than half of this in the manufacturing sector. Businesses and Jobs Data from City of Tukwila business licenses and the Puget Sound Regional Council (PSRC) provide information on employment trends between 1995 and 2009/2010. PSRC data pertain to positions that are covered by the Washington Unemployment Insurance Act (i.e. "covered employment. Major Employers Although there have been variations over the years, total number of jobs in the MIC, which was 14, 353 in 2009, is virtually the same as in 1995. Manufacturing remains the largest employment sector, but it has declined by 40% between 1995 and 2009. Manufacturing shrank from 12, 276 in 1995 to 7, 337 in 2009, going from 86% of covered employment in the MIC to 51%. Although a smaller factor in employment that manufacturing, the service sector was responsible for the majority of job growth in the MIC between 1995 and 2009. Service employment, such as health care and software, grew from 339 in 1995 to 2, 681 in 2009. Government jobs, such as the US Postal Service and Homeland Security, also increased. Aerospace, including Boeing, represents the largest category of manufacturing. Although aerospace, including the Boeing Company, had a larger presence in the MIC a couple decades ago, levels over the past decade appear to be relatively steady or increasing, even in light of two economic downturns. Although its total employment has declined by 19% between 1995 and 2010, Boeing remains by far the largest single employer in the MIC (as reported by Tukwila business licenses.) Three large employers, including Boeing, Group Health Cooperative and King County Metro (bus facility) provided 90% of jobs in the MIC in 2010. (Source: Tukwila Business Licenses) The MIC has generally avoided incompatible retail expansion, but growth in the services sector merits further monitoring. Wages Manufacturing jobs are the best paid in the MIC. In 2008, the average manufacturing wage ($95,087) was nearly twice that of a job in the service industry ($49,096). Land Use Permits A total of approximately 200 land use decisions were issued between 1990 and 2010. Shoreline permits were approximately 15% of the total land use permits. W12010 InfoMemosIMIC Moratorium Renewal 7- 26- 10.doc INFORMATIONAL MEMO Page 3 Approximately 50% of them were environmental reviews for development that was covered under SEPA Planned Action review document. Prepared in 1999, the SEPA Planned Action document anticipated and allowed for environmental impacts of future development by completing project level environmental review during the time that the MIC Plan was originally prepared Building Permits Approximately 3000 building, mechanical, electrical and public works permits were issued between 1990 and 2010. Changes in recording permit information over time make it difficult to draw clear conclusions about trends from the data, but the majority of the permits were for tenant improvements, mechanical upgrades, and similar improvements. Approximately 1% of development permits were issued for new construction. The highest -value permits were for projects involving improvements or new construction for Boeing Company facilities, the development of Internet data farms, new construction for the Museum of Flight, and the Aviation High School. The two former types of development are industrial in nature, while the latter represents non industrial cultural and educational activities. City of Tukwila Code and Policy Changes The Comprehensive Plan and development code amendment process is an opportunity to propose changes to Tukwila's Comprehensive Plan and regulations in order to address changing conditions, new legal requirements, and ongoing work. Some recent changes affecting the MIC include: 2010 Significant portions of Tukwila's MIC lie along the shoreline, and are subject to the Shoreline Management Plan. Recently- adopted Shoreline policies call for increased buffer widths for new construction from 50' to 100.' Buffer reductions will be allowed in exchange for enhancements to the shoreline environment and for establishing a gentler slope to the shoreline edge. 2007 -33 acres were removed from eastern edge of the MIC, in the Manufacturing Industrial Center /Heavy (MIC /H) zone, and rezoned as Light Industry (LI). The single -owner site is in the vicinity of Boeing Field, generally bounded by East Marginal Way South, South Norfolk Street, Airport Way South and Boeing Access Road. The property also included an additional 29 acres in the City of Seattle. (Ordinances #2185 and #2186) 2001 —The Manufacturing Industrial Center /Light (MIC /L) Zoning category was revised to allow office uses up to 20, 000 feet as a permitted use, and offices over 20, 000 as a conditional use (Ordinance #1954) Recent Proiects and Preliminary Issues for consideration: Tukwila's Manufacturing Industrial Center is a dynamic place. Although some firms have been in Tukwila for many years, approximately 13% of business licenses are new each year. This implies that the MIC continues to attract industrial firms. Boeing Plant #2 will be demolished. Once contaminated soil problems are resolved, a large amount of industrial property will be available for redevelopment. Will development be manufacturing or other uses? Environmental cleanup sites can represent opportunities for redevelopment. The Aviation High School will be constructed on the former Rhone Poulenc site. W:12010 InfoMemosIMIC Moratorium Renewal 7- 26- 10.doc 5 6 INFORMATIONAL MEMO Page 4 The recent closure of the South Park/116` Avenue Bridge has produced minimal impacts due to Tong -term decreases in traffic along East Marginal Way. By contrast, the private bridge at S. 102 across property belonging to the Boeing Company has experienced an increase in traffic. This should be monitored. The Boeing Access Road bridge is deteriorating and needs replacement. If it were to close suddenly due to a natural disaster or if its operations were restricted, impacts to traffic would be significant. Grant funds are being sought, but at this point funding is not available. There are no current plans for a light rail stop at Boeing Access Road, but increased development could prompt a future change. Public Involvement: The public involvement element in the Manufacturing Industrial Center study has begun. The public is being notified of the Manufacturing Industrial Center study via the City of Tukwila website, the Hazelnut and the "Tukwila Reporter," with a call for expression of interest in receiving information and becoming involved. The majority of public involvement activities will occur after background data analysis is completed. RECOMMENDATION The Council is being asked to hold a public hearing and approve an ordinance, at the August 2, 2010 Regular Meeting, extending the Moratorium on certain uses in the Manufacturing Industrial Center for six months to allow further progress on the study of the Manufacturing Industrial Center. ATTACHMENTS A. MIC Study Work Plan B. MIC Moratorium Renewal Ordinance W12010 InfoMemosIMIC Moratorium Renewal 7- 26- 10.doc Product: Background Report MANUFACTURING /INDUSTRIAL CENTER STUDY Product: Summary of Issues /Opportunities affecting the MIC Rf 1 C \temp\XPgipwi se \CC- -MIC- Scope -7.27 10 ATTACH.A. doc 1.57 18 PM ATTACHMENT A Purpose Update information pertaining to MIC Consider economic activity, development and development codes in the MIC in light of the Comprehensive Plan's vision for the MIC that supports "existing and future industrial activity to maximize employment and economic benefits to the people of Tukwila and the region," and pressure on the MIC to allow non- industrial uses to locate /expand Recommend modifications /actions as indicated STUDY ELEMENTS: 1. Background Overview of Economic and Physical Conditions, Policy and Regulations Update, collect background data for the MIC as available, including such elements as: employment, land use, pelinitting and development land valuation/sales transportation recreation utilities Review current policy and regulatory framework for M /IC Review Comprehensive Plan implementation to date 2. Issues and Opportunities Identify and briefly describe issues that affect manufacturing and industrial opportunities in the MIC, and opportunities for promoting further development /protection of MIC land. Trends Industrial areas and sectors Region Summary of recent Events /Current Issues in and affecting the MIC, including topics such as: o Demolition of Boeing Plant #2 o Duwamish cleanup, brownfields, o Transportation, including public transit i.e. possible future light rail stations, peak demand vs. pass through, closure of First Avenue South bridge, update Transportation Model. o Possible annexation of North Highline area Public /Stakeholder input regarding issues and opportunities affecting the MIC 7 8 ATTACHMENT A 3. Recommendations: Review and assess current and anticipated conditions, Comprehensive Plan vision, issues and stakeholder comments. Recommend appropriate City approach to development, development codes, and economic activity in the MIC. Recommended actions could include Comprehensive Plan/Zoning map changes, code changes, updates to the Planned Action, etc. as appropriate. Product: Assessment and recommended actions —Short, Medium and Long -term PUBLIC INVOLVEMENT: It is expected that public involvement will occur primarily after the Background Report is completed. Staff will identify interested MIC stakeholders (land owners, tenants, businesses, other), and solicit their involvement and opinions. Public involvement activities will include some of the following as appropriate: Informational postings on City website Surveys Mailings Notices in "The Hazelnut" Open house Phone interviews TIME FRAME /RESOUCES It is expected that the study will be conducted over the next year using primarily in -house staff resources. Rf 2 C: \temp\XPgrpwise \CC- -MIC- Scope -7.27 10 ATTACH.A.- .docl:57 18 PM City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RENEWING A MORATORIUM RELATING TO THE PRESERVATION OF INDUSTRIAL LAND WITHIN THE CITY'S MANUFACTURING INDUSTRIAL CENTER, RENEWING A SIX MONTH MORATORIUM ON THE ACCEPTANCE OF APPLICATIONS FOR AND ISSUANCE OF LAND USE, BUILDING, AND DEVELOPMENT PERMITS, BUSINESS LICENSES AND /OR APPROVALS FOR ANY CHANGE IN USE FOR CERTAIN NON- INDUSTRIAL USES WITHIN THE MANUFACTURING INDUSTRIAL CENTER ZONE; REPEALING ORDINANCE NO. 2277; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila has the authority to adopt a moratorium pursuant to RCW 35A.63.220; and WHEREAS, the City of Tukwila contains one of four manufacturing and industrial centers (MIC) in King County; and WHEREAS, these MIC areas are key components of the regional economy and are designated via a regional process through the Countywide Planning Policies; and WHEREAS, on February 16, 2010, the Tukwila City Council adopted Ordinance No. 2277, which declared an emergency and established a moratorium on the acceptance and issuance of applications for certain non- industrial uses within the Manufacturing Industrial Center zones; and WHEREAS, on April 5, 2010, the Tukwila City Council, following a public hearing, adopted Ordinance No 2280, which adopted findings of fact to justify the moratorium adopted by Ordinance No. 2277 and which also amended Ordinance No. 2277, and WHEREAS, on April 5, 2010, staff from the Department of Com nunity Development presented the City Council a work plan intended to study and address issues with the City's MIC zones; and WHEREAS, Department of Community Development staff is currently working to complete a land use inventory of the current businesses and uses located in the City's MIC zones. This research has included review of City business license data and data available from the King County Assessor's Office; and WHEREAS, the City intends to engage stakeholders in the MIC area as we move forward with the City's study of issues in the MIC; and WHEREAS, a staff report of the issues in the MIC is scheduled to go before the Planning Commission and City Council in the fall of 2010; and WHEREAS, the current moratorium will expire before staff can report back to the Planning Commission and City Council on proposed land use recommendations within the MIC areas; and WHEREAS, an extension of the moratorium is necessary to protect the public welfare; W \Word Processing \Ordinances \M1C Moratorium Renewal.docx NG:mrh 7/27/2010 Page 1 of 2 9 10 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Moratorium Renewed. The City hereby renews the moratorium previously imposed regarding the preservation of industrial land within the City's Manufacturing Industrial Center, and upon the receipt and processing of business license applications, building permit applications, land use applications, and any other permit application. Section 2. Public Hearing. Pursuant to RCW 35A.63.220 and following adequate public notice, a public hearing was held on August 2, 2010 to hear testimony regarding the City's moratorium. Section 3. Duration. The moratorium renewed herein shall be in effect until January 25, 2011, unless extended by the City Council, pursuant to State law. Section 4. Findings of Fact. The City Council adopts the findings of fact contained in Ordinance No. 2280, by this reference, as well as the "Whereas" clauses herein. Section 5. Repealer. Ordinance No. 2277 is hereby repealed. Section 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid, unconstitutional or unenforceable for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 7. Effective Date. This ordinance or a surrunary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2010 ATTEST/ AUTHENTICATED• Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney W \Word Processing \Ordinances \MIC Moratorium Renewal.docx NG:mrh 7/272010 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2