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HomeMy WebLinkAbout2011-05-23 Committee of the Whole Minutes Tukwila City Council Committee of the Whole Meeting City Hall Council Chambers May 23, 2011 7:00 P.M. MINUTES COMMITTEE OF THE WHOLE MEETING CALL TO ORDER/PLEDGE OF ALLEGIANCE Council President Ekberg called the Tukwila City Council meeting to order at 7:06 p.m. and led the audience in the Pledge of Allegiance. OFFICIALS Present were Allan Ekberg, Council President, Councilmembers Joe Duffie, Joan Hernandez, Dennis Robertson, Kathy Hougardy, De'Sean Quinn. Councilmember Seal was not present. CITY OFFICIALS Jim Haggerton, Mayor; Steve Lancaster, City Administrator; Derek Speck, Economic Development Administrator; Mary Miotke, Information Technology Director; Kimberly Matej, Council Analyst; Melissa Hart, Deputy City Clerk. CITIZEN COMMENTS There were no citizen comments. SPECIAL ISSUES a. A resolution appointing committees to prepare written arguments advocating approval and rejection of proposed formation of a Tukwila Pool Metropolitan Park District Ballot Measure for inclusion in the August 16, 2011 election Voters' Pamphlet. Pursuant to RCW 29.A.32.280, the City shall formally appoint a committee to prepare arguments advocating approval of the measure and a committee to prepare arguments advocating rejection of the measure. The City took steps to advertise the opportunity to participate in the committees by posting a notice on the City website, at City facilities, and announcing it at a Council meeting. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE SPECIAL MEETING THIS EVENING. b. Tukwila Village: Recommendation on developer selection. Derek Speck, Economic Development Administrator, explained that on March 14, 2011 the City Council approved a developer selection process for Tukwila Village. The City issued a Request for Qualifications (RFQ) on March 30, 2011, and closed the application period on April 29, 2011. The City received two applications from developers in response to the RFQ: Trillium Corporation and Tukwila Village Development Associates, LLC. The Senior Housing Assistance Corporation (SHAC) and Pacific Northern are the managing members of the Tukwila Village Development Associates, LLC. He clarified that SHAC is publicly recognized as the Senior Housing Assistance Group (SHAG). Mr. Speck utilized a PowerPoint presentation to review the two applications, in which the following information was highlighted: Developer capabilities Experience Financial capacity Team Developer's concept Tukwila City Council Committee of the Whole Minutes May 23, 2011 Page 2 of 5 The Developer organization: Trillium Corporation is based in Bellingham, Washington, with over 40 years experience. Considered a Master Developer Comparable projects include Cordata, which consisted of 600 acres; residential units (single family, duplex, condominiums, senior care); medical campus; college; retail; industrial; and office space. Denver project was 165 acres; including a rail yard development; 21 city blocks; 2,000 residential units; 3,700,000 square feet of commercial space. Semiahmoo is also a Trillium project consisting of a 1,100 -acre resort, 800 housing units, hotel, and golf course. Tukwila Village Development Associates, LLC is being referenced as Senior Housing Assistance Group (SHAG). Senior Housing Assistance Corporation (SHAC) and Pacific Northern Construction Company (PNCC) are the managing members for the Tukwila Village Development, LLC. SHAG is a private Washington non profit corporation that is currently developing affordable (mixed- income) senior housing. Comparable projects include Arrowhead Gardens in West Seattle. This site consists of 4 acres, 449 senior apartments that are income restricted and 5,500 square feet of commercial /retail space. Linden Place at Bitter Lake is 3.25 acres, 251 senior apartments, 140 family apartments (housing is income restricted), and 18,500 square feet of commercial /retail space. Rainier Court is 7 acres, with 208 senior apartments and 178 family apartments that have income restrictions, and 18,500 square feet of commercial /retail space. Financial Capacity: Both developers appear to have the financial capacity to complete the Tukwila Village project. Developer Team: Trillium: The proposed team is the architectural firm of Collins Woerman and Regency Pacific as the senior housing developer. SHAG: The proposed team is Johnson Braund Design Group, Inc. as the architect, Inter City Contractors, Inc. as the General Contractor; Pacific Northern as Construction Manager and Independent Living Associated and Senior Housing Assistance Group as the property managers. Development Concept: 1 Use I Units Trillium SHAG 1 I Library I SF up to 20,000 I 10,000 I Police NRC 1 SF 1 2,000 I 2,000 1 Retail 1 SF 1 Unspecified 1 7,000 1 Office /Health Center SF 1 20,000 40,000 1 20,000 1 Outdoor Plaza SF 20,000 1 20,000 Indoor Commons I SF Unspecified I 2,000 I Apartments Units 1 300-600 I 382 1 Apartment Comparison (number of units): 1 Restrictions I Example Max Income I Trillium I SHAG* 1 1 Senior" I I I(*Min. Age 61) 1 Unrestricted I No limit 1 150-300 I 67 80% of Average $54,800 /two persons 41 Median Income (AMI) 160% of AMI I $41,100 /two persons 1 I 130 150% of AMI I $34,250/two persons 1 I 83 1 1 TOTALI 150-300 1 321 1 1 None (Family) I I I Unrestricted I No limit 1 150-300 I 49 I 80% of AMI $54,800 /two persons I I 0 60% of AMI 1 $41,100 /two persons I 0 1 150% of AMI 1 $34,250/two persons 1 12 I TOTAL 300-600 1 382 Tukwila City Council Committee of the Whole Minutes May 23, 2011 Page 3 of 5 Other Considerations: Zoning: SHAG's concept includes a request for building height increase of 5 -feet, from the current 65 -feet up to 70 -feet in height, to add 1 additional level of housing. Trillium's concept 300 -600 apartments could require changes to the City's current zoning code for the maximum number of units. City Revenue: SHAG qualifies for tax credits; therefore, they could pay a higher purchase price for the land. Trillium does not qualify for property tax exemption therefore the City would receive higher property tax revenue. Mr. Speck explained SHAG's experience and concept are more predictable and certain relating to the Tukwila Village Project. Councilmember Duffie explained that he is concerned about whether the citizens of Tukwila have been informed about the Tukwila Village presentation and developer selection. He felt that the lack of audience members attending the Council meeting was due to a lack of notification. Mr. Speck explained that staff outreach has included an informational mass email to the 200+ individuals who have registered to receive updates on the Tukwila Village Project. He also stated that the Tukwila International Boulevard Action Committee and the Southwest King County Chamber of Commerce received the presentation on the two developer applications. The developer applications were posted on the City's website, at least four and two Tukwila residents reviewed the applications, and two of them provided staff written comments on the applications. Chris Benner, Vice President Real Estate Development, Trillium, 1329 State Street, Bellingham, thanked the Council for the opportunity to submit an application for the Tukwila Village Project. He explained Trillium Corporation was introduced to the project through their architect, Collins Woerman, and Trillium reviewed the previous developer's design concept, project site, and history of the vision of Tukwila Village. The design team focused the application on the big picture for Tukwila and the possible future development along the Tukwila International Boulevard corridor. They have been contacted by surrounding property owners about the potential redevelopment of the area, and they hope to continue working with property owners. They feel the area is a wonderful site with all of the transportation elements needed to make the project successful. They respect the Council for their continued support of the project. Bryan Park, 13906 SW 216 Street, Vashon, Tukwila Village Development Associates, LLC, stated they are very excited about the Tukwila Village development opportunity. He explained they provided a great deal of specificity in the analysis and proposal for the development of the project. They tried to address the questions as presented in the Request for Qualifications, in particular the relationship of the proposal to the vision that was expressed in the development process with Tarragon. The application submitted by SHAG proposes to create a community place, that includes senior housing and non -age restricted housing. They are flexible in how the housing component should be allocated (market rate, income restricted, senior and family housing) and tried to focus the application on the vision the City created for Tukwila Village, subject to the current state of the economy. They propose completing the project in phases, with the initial phase to include the public plaza and the 80% market -rate housing. This type of approach is used to better understand the demand based on the current market. Sharon Mann, 4452 South 160 Street, stated that Mr. Speck conducted a presentation to the Tukwila International Boulevard Action Committee, and the committee concurs with the staff recommendation of moving forward with the SHAG proposal. She feels SHAG is ready to start the project now, and they have detailed information about the proposed development. Ms. Mann urged SHAG to include more retail /commercial space to attract a coffee shop or local restaurant to the area. At this time, the City does not have any senior housing options for the community, and the proposed development would satisfy the need. She hopes that Trillium Corporation continues to engage with the other property owners along Tukwila International Boulevard for possible future redevelopment. Tukwila City Council Committee of the Whole Minutes May 23, 2011 Page 4 of 5 Pam Carter, 4115 South 139 Street, indicated she feels both developers are an excellent choice for the Tukwila Village project. However, it is her opinion that SHAG can provide the community the certainty needed to move the project forward. She hopes Trillium will continue to show interest in the Tukwila International Boulevard corridor and continue working with the property owners for possible redevelopment. She urged the Council to accept the staff recommendation. The Councilmembers exchanged comments and asked clarifying questions of staff on the above topic. COUNCIL CONSENSUS EXISTED TO FORWARD THE STAFF RECOMMENDATION TO SELECT TUKWILA VILLAGE DEVELOPMENT ASSOCIATES, LLC AS THE TUKWILA VILLAGE DEVELOPER TO THE NEXT REGULAR MEETING. REPORTS a. Mayor Mayor Haggerton participated in the May 17, 2011, Peace Officers' Memorial Service, and later that afternoon he attended the Seattle Sounders event at Seattle Bank where he met Sounders Forward Fredy Montero. On May 19, 2011 he attended the King County Flood Control Advisory meeting, and later that afternoon he attended the Cascade Water Alliance meeting. He also attended the Way Back Inn facility tour on May 20, 2011. Mayor Haggerton reminded the Council of the May 30, 2011 Memorial Day Event at the Museum of Flight. b. City Council Councilmember Duffie attended the May 17, 2011 Peace Officers' Memorial Service and the Armed Forces Celebration at the Museum of Flight on May 21, 2011. Councilmember Hernandez attended the Peace Officers' Memorial Service on May 17, 2011 and the Historical Society Meeting on May 19, 2011. On May 20, 2011, she participated in the Way Back Inn facility tour and attended the Rainier Symphony dedication concert to Bev Willison on May 22, 2011. c. Staff Steve Lancaster, City Administrator, explained that Resolution No. 1741, which opposes federal preemption of local land use authority related to railroads, and urges the United States Congress to clarify its intent regarding local authority, which was passed at the May 16, 2011 Regular Meeting, has been delivered to the offices of Senators Patty Murray and Maria Cantwell, and Representatives Adam Smith and Jim McDermott in Washington D.C. He also announced that Burlington Northern Santa Fe Railroad (BNSF) recently applied for a demolition permit from the City. BNSF is requesting permission to demolish an existing structure on a recently acquired piece of land in the Allentown area. He explained he will continue to update the Council as more information becomes available regarding this issue. d. City Attorney The City Attorney's presence is not required at Committee of the Whole meetings. e. Intergovernmental There was no report. Tukwila City Council Committee of the Whole Minutes May 23, 2011 Page 5 of 5 MISCELLANEOUS Mayor Haggerton announced that Nick Olivas, Fire Chief, was presented with his 30 -year pin during the Executive Staff meeting earlier in the day. Councilmember Hernandez explained that 4Culture was trying to lobby support for Senate Bill 5958, which would provide local government funding for tourism promotion, workforce housing, art and heritage programs and community development. She stated if anyone was interested in offering support, she could provide more information. Council President Ekberg announced there is Council consensus to have a budget workshop, and he indicated he would work with City administration to schedule the meeting. ADJOURNMENT 8:31 p.m. COUNCIL PRESIDENT EKBERG DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOU"ED TO CONVENE A SPECIAL MEETING. IA 9 r Allan Ekberg, Council President Melissa Hart, Deputy City Clerk APPROVED AND SIGNED BY THE COUNCIL PRESIDENT ON 06106/2011 AVAILABLE ON THE CITY'S WEBSITE 06/07/2011