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Home My WebLink AboutCOW 2016-12-12 Item 4A - Discussion - Proposed Bellwether Housing Development AgreementCOUNCIL AGENDA SYNOPSIS Iaitials Meeting Date Prepared by ORIGINAL AGENDA DATE: 12/12/16 Mayor's review c-ii review 12/12/16 MCB 12/12/16 _ -I1? ❑ Resolution Aftg Date ❑ Ordinance r Itg Date .Award ❑ Public Hearin, 1g Date ❑ Other Msg Date Cl "I'IZGoRY 11 Discussion • Bid Altg Date Mtg Dose SPONSOR ❑ Council ❑ Mayor ❑ HR • DCD ❑ Finance ❑ .Fire ❑ TS • P &R ❑ Police • PTY' SPONSOR'S Staff is requesting Council consensus to proceed with a development agreement that SUMMARY generally uses the urban renewal overlay standards as a template. Bellwether Housing has an option on a parcel that is zoned Regional Commercial in the TIB neighborhood. They would like to provide housing for low wage workers who make 30-60% of area median income. The RC zoning does not meet their needs and changes to Zoning Code standards are required in order to create a housing development that is feasible for them. lil:4'IL'IXfED BY ❑ COW Mtg. i f Utilities Cmte DATE: 11/28/16 le CA &P Cmte ❑ F &S Cmte 0 Transportation Cmte ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: QUINN ❑ Arts Comm. RECOMMENDATIONS: SPONSOR/ADMIN. ComminvI ITEM INFORMATION ITEM No. 4.A. 1 STAFF SPONSOR: MOIRA BRADSHAW ORIGINAL AGENDA DATE: 12/12/16 AGENDA ITEM Tn I.i. Development Agreement for Bellwether Affordable Housing 12/12/16 ❑ Motion AItg Date ❑ Resolution Aftg Date ❑ Ordinance r Itg Date .Award ❑ Public Hearin, 1g Date ❑ Other Msg Date Cl "I'IZGoRY 11 Discussion • Bid Altg Date Mtg Dose SPONSOR ❑ Council ❑ Mayor ❑ HR • DCD ❑ Finance ❑ .Fire ❑ TS • P &R ❑ Police • PTY' SPONSOR'S Staff is requesting Council consensus to proceed with a development agreement that SUMMARY generally uses the urban renewal overlay standards as a template. Bellwether Housing has an option on a parcel that is zoned Regional Commercial in the TIB neighborhood. They would like to provide housing for low wage workers who make 30-60% of area median income. The RC zoning does not meet their needs and changes to Zoning Code standards are required in order to create a housing development that is feasible for them. lil:4'IL'IXfED BY ❑ COW Mtg. i f Utilities Cmte DATE: 11/28/16 le CA &P Cmte ❑ F &S Cmte 0 Transportation Cmte ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: QUINN ❑ Arts Comm. RECOMMENDATIONS: SPONSOR/ADMIN. ComminvI Department of Community Development Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRI.:I) AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 12/12/16 MTG. DATE ATTACHMENTS 12/12/16 Informational Memorandum dated 11/22/16 Minutes from the Community Affairs and Parks Committee meeting of 11/28/16 Powerpoint Presentation 1 City 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 apartrnents. 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, TMC 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. 3 INFORMATIONAL MEMO Page 2 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. 4 W:12016 Info MernosTeiiweather.doc Bellwether Housing 36 30 3334 1900 $26M bellwether Years In Business Properties Managed Residents Last Year Apartments Managed Annual Budget (2017) Diverse Neighborhoods: Downtown Seattle, Capitol Hill, South Lake Union, Queen Anne, Wallingford, University District, Rainier Valley, Northgate bellwether Housing beliwether Some of our collaborative service partners: Asian Counseling and Referral Services City of Seattle Aging and Disability Services King County Disability Division Red Cross Language Link Sound Mental Health Washington State Department of Health Wellspring Family Services YMCA of Greater Seattle YWCA of Seattle Refugee Women's Allliance El Centro de la Raza Muslim Housing Services Hearing, Speech and Deafness Center Jewish Family Services Seattle Humane Society Seattle Public Library Providence Health & Services Arbora Court 4731 15'" Avenue NE, Seattle, WA 98105 beliwether Arbora Court is made possible by a generous below- market sale of land by the University Christian Church. The building is under construction and will be completed in early 2018. Communities Served: Low - income individuals and families, with 40 units set aside for families transitioning out of homelessness. Neighborhood: University District, close to grocery stores, restaurants, a public library, a community center, high - quality public schools, and many transit opportunities. Unit Mix: 133 units • 24 studios • 37 open one - bedrooms • 19 one - bedrooms • 33 two - bedrooms • 20 three - bedrooms Rose Street Apartments 8124 Rainier Ave S, Seattle, WA 98118 bellwether Rose Street Apartments is a lively 71 -unit apartment building in the Rainier Beach neighborhood. The building includes retail store -front spaces along Rainier Ave South that are home to a locally -owned restaurant, tutoring center, and hair salon. Communities Served: Lower income Individuals and families with children, with four units set aside for households supporting a developmentally disabled family member. Neighborhood: The Rainier Beach neighborhood of Seattle is on major Metro routes serving downtown and is near light rail. It is located within walking distance of grocery stores, schools, a library and a community center. Unit mix: 71 units at 50 -60% AMI • 41 one - bedroom units • 30 two - bedroom units