HomeMy WebLinkAboutCAP 2016-11-28 Item 2A - Development Agreement - Affordable Housing with Bellwether HousingCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Community Affairs and Parks
FROM: Jack Pace, Director, Department of Community Development
BY: Moira Bradshaw, Senior Planner
CC: Mayor Ekberg
DATE: November 22, 2016
SUBJECT: Potential Development Agreement for Affordable Housing in the TIB
Neighborhood
ISSUE
Should the City Council consider a Development Agreement with Bellwether Housing, who
would like to develop an affordable housing project on a site on TIB?
BACKGROUND
Bellwether Housing is a nonprofit housing developer that builds and manages affordable
apartments. They have been operating since 1980 and currently serve 3,200 residents. They
are interested in expanding beyond Seattle and have an option to buy property on TIB. The City
has the authority to establish development standards and other provisions that would apply to a
site-specific development and vest the project. (Development Agreements, TIVIC 18.86)
Bellwether would like the City to enter into a development agreement with them that would
modify the site's existing Regional Commercial (RC) development regulations to allow them to
achieve a project that is financially viable.
DISCUSSION
There are two elements to the decision: the process to create a development agreement and
the substance or standards within the agreement.
Process
The applicant would like a development agreement for the following reasons:
1. Bellwether has a two part down payment that becomes partially nonrefundable after
December 28 and then fully nonrefundable after January 23.
2. In September of 2017, King County levy money will likely be available for affordable
housing projects that are in transit oriented areas. This money is finite and will likely
not be available for an additional four years after the 2017 call for projects.
3. Prices continue to rise in the TIB area fueled by continued economic expansion in the
Seattle area and local speculation about upcoming zoning changes. These forces
make buying land and affordable housing more expensive .
4. Bellwether's option to purchase the subject site expires the first of May and 90 days
are needed to for the lending process and to finalize the sale.
5. The City is beginning its review of regulations related to the TIB area and revised
standards will be developed in stages throughout 2017 with legislative action not
expected until 2018.
INFORMATIONAL MEMO
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Standards
A development agreement may allow standards that are different from those otherwise
imposed. Modifications of those standards are allowed to provide flexibility in order to achieve
public benefits - in this case affordable housing and development that sets a higher standard for
apartments, and responds to changing community needs. The subject site is in a Regional
Commercial district, which was in place before the transit facility was built for the TIB corridor.
The subject site fronts on TIB and is bordered by RC on its north and south sides and MDR and
LDR districts to the east. The eastern properties also have the commercial redevelopment
overlay, meant to encourage the consolidation and redevelopment of the lots with the land that
fronts TIB. The developer would be asking for modification of the existing Zoning Code
standards for use, height, recreation space, and parking.
Given that these two elements are policy in nature, staff is seeking direction from the Council as
to whether there is consensus to continue working on this project.
FINANCIAL IMPACT
Staff time to develop the agreement.
RECOMMENDATION
The Committee is being asked to forward this item to the December 12, 2016 Committee of the
Whole for discussion and consensus to as to whether staff should move forward with
discussions with Bellwether. If consensus is reached, many additional steps remain for Council
review and approval, including a development agreement that would need to be decided by the
Council after a public hearing.
WA2016 Info MernosOellweatherdoc
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