HomeMy WebLinkAbout2015-05-05 Finance and Safety MinutesCity of Tukwila
• Finance and Safety Committee
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
May 5, 2015 — 5:30 p.m.; Hazelnut Conference Room
PRESENT
Councilmembers: Kathy Hougardy, Chair; Joe Duffie, De'Sean Quinn
Staff: Derek Speck, Brandon Miles, Laurel Humphrey
Guests: Christine and Omar Lee
CALL TO ORDER: Committee Chair Hougardy called the meeting to order at 5:35 p.m.
I. PRESENTATIONS No presentations.
II. BUSINESS AGENDA
A. Washington Place Development
Staff provided an update regarding the request from Omar and Christine Lee that the City
reduce or defer fees and taxes for their mixed -use development project at 223 Andover Park
East known as Washington Place. The project is viewed by the City as an excellent fit for the
vision of the Transit Oriented Development (TOD) area and several significant City actions
have been completed to encourage its progress, including modifications to development
standards as reflected in an amended development agreement, approval of multi - family tax
exemption within the TOD, and various land use and construction permit approvals. The
development agreement expires at the end of 2015 if a building permit is not issued. Staff
has estimated that over $1.5 million in building and impact fees will be required from this
project under normal circumstances, and the developers have asked if there are ways to
reduce this amount. Staff summarized the fee - related issues as follows:
Building Permit Fees: Building permit fees go into the City's general fund and are used to
support construction related services and indirect costs, applied to all projects uniformly.
Building fees are adopted by Council resolution and staff does not have the authority to reduce
or waive them.
Impact Fees: Impact fees are used to fund capital projects related to expanding capacity for
traffic, parks and fire services, and staff has authority to adjust these fees on a case by case
basis. Following objective analysis in August 2014, a reduction of nearly $300,000 in impact
fees was determined to be applicable to this project, and a second round of analysis is
currently underway since this is a new type of development for the City.
If the Council desired to amend code or policies leading to a reduction of building and /or
impact fees for this project, these reductions would have to be applied City -wide. Analysis
leading to this type of amendment would require considerable staff time and Council review.
Fee Deferral: A fee deferral program is an option that allows developers to pay certain fees,
normally due upon permit issuance, closer to the time when revenues can be collected from
the project. A fee deferral program in the TOD is consistent with State law and could provide
an incentive for further development consistent with the City's goals in that area. Several
potential requirements and terms as described in the info memo were reviewed for the
committee. Deferral of impact fees would not impact the City's ability to move forward with
capital projects funded by these fees but instead reimburse the City for funds paid via bonds
Finance & Safety Committee Minutes May 5, 2015 - Page 2
or the general fund. Establishing a fee deferral program would require code amendment, and
staff is seeking Council direction on this issue prior to the development of any draft
ordinances.
Committee members asked clarifying questions about the information presented. Committee
Chair Hougardy asked Omar and Christine Lee for input, and they described the financial
difficulties of a project like this in Tukwila, which has significantly lower rents than in Seattle
and Bellevue. They assert that the hotel will be built but the residential aspect hangs in the
balance. The Lees also shared a powerpoint presentation with graphic renderings and
descriptions of amenities in the proposed development.
Committee members stated continued enthusiasm for this project but acknowledged the
importance of fairness, noting the City's inability to give special treatment to one developer.
The Committee recommends that staff pursue the fee deferral proposal further and will share
this recommendation with the Committee of the Whole. If there is consensus from the full
Council, staff will develop the ordinances required and return to Committee. The Committee
is not supportive of amending code or polices leading to the reduction of building and /or impact
fees at this time. They requested additional City Attorney input into the developer's request
for fee reductions. UNANIMOUS APPROVAL TO FORWARD DISCUSSION TO MAY 11,
2015 COMMITTEE OF THE WHOLE.
B. Resolution: Expressing Support for Combatting Commercial Sexual Exploitation
This Council- initiated resolution expresses support for combating commercial sexual
exploitation through comprehensive demand enforcement, deterrence and prevention, as well
as support for the "Buyer Beware" initiative led by the King County Prosecuting Attorney's
Office. There is increasing emphasis by law enforcement and service agencies locally and
nationally to combat trafficking and sexual exploitation by pursuing and deterring the buyers
of sex and not punishing those children and vulnerable adults who are victimized by the
industry. Buyer Beware is a partnership between law enforcement, attorney, and service
organizations to make progress in this area via education and intervention programs.
UNANIMOUS APPROVAL. FORWARD TO MAY 11, 2015 COMMITTEE OF THE WHOLE.
III. MISCELLANEOUS
Staff provided follow up to the April 7, 2015 meeting in which the Committee heard a request
from the owners of ABC Towing for the City to look into its policies regarding the Police
Department's contract with a Renton -based towing company. Their position was that sales tax
on towing services is collected based on the location from which the truck is dispatched, and
therefore the City would benefit from using a Tukwila company for this service. Staff was able
to confirm that the current contract was established in 1998 and last amended in 2007. The
City does not have a policy nor does state law require periodic contract rebidding for services.
The Committee asked that the Police Department provide additional information regarding the
current contract as well as the impacts that would occur if it were to be rebid.
Meeting adjourned at 7:20 p.m.
Next meeting: Tuesday, May 19, 2015 - 5:30 p.m. - Hazelnut Conference Room
Committee Chair Approval
Minutes by LH