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HomeMy WebLinkAboutPlanning 2011-04-28 Item 4 - MIC UPDATE - STAFF REPORT AND RECOMMENDATIONS D City of Tukwila Jim Haggerton, Mayor Department of Community Development Jack Pace, Director MEMORANDUM To: Tukwila Planning Commission FROM: Rebecca Fox, Senior Planner DATE: April 20, 2011 FILE: L10 -015 Manufacturing Industrial Center Update SUBJECT: Manufacturing Industrial Center Comprehensive Plan Update Issues and Opportunities Report and Staff Recommendations BACKGROUND In October 2010, the Planning Commission began its review of Tukwila's Manufacturing, Industrial Center (MIC) policies and regulations. Washington cities subject to the requirements of the Growth Management Act are periodically required to undertake an overall review and update of their Comprehensive Plans in addition to the annual amendment process. Tukwila is required to complete this process by 2014. Staff is currently updating the Manufacturing and Industrial Center (MIC) element. Tukwila's Manufacturing Industrial Center, the area covered by the MIC /H and MIC /L zoning districts, is an important regional center of industrial activity. It is one of the four regional centers of industrial activity designated in the King County's County Wide Planning Policies. This designation reflects the corridor's history of industrial use and its current importance in the regional economy. Approximately 14, 000 jobs are located in the MIC, which provides a significant portion of Tukwila's economic activity. (Map, Attachment A) City of Tukwila Comprehensive Plan policies establish that the Manufacturing Industrial Center is intended for industrial activity in order to "maximize the employment and economic benefits to the people of Tukwila and the region, while minimizing the impacts on residential neighborhoods." The Zoning Code, which implements the Comprehensive Plan's policies, limits non industrial uses, especially office and retail, which may occur in the MIC, and reserves the land for industrial activities and some limited support for these uses. rf 04/20/2011 WALone, Ranize Proiects\MIC Studv\Planning Commission \4.28.11 Public Hearing \PC_Memo_4- 28- 11.edit.doc 6300 Southcenter Boulevard, Suite #100 Tukwila, Washington 98188 Phone 206 431 -3670 Fax: 206- 431 -3665 ACTIVITIES TO DATE 1. Background Report Staff prepared the Manufacturing/ Industrial Center Background Report, including a review of applicable policies and regulations and an overview of economic and physical conditions. The Planning Commission was briefed on the document in October, 2010. (Attachment B) 2. Public Involvement/ Input on MIC After preparing the Background Report, staff sought public comments from stakeholders and interested individuals in order to: 1) identify issues that affect manufacturing and industrial opportunities in the MIC; and 2) opportunities for promoting further development/ protection of MIC land. Methods used to solicit public involvement include: Information on Manufacturing Industrial Center update, including all materials and meetings, posted on City website httD://www.ci.tukwita.wa.us/dcd/micstudv.html Mailings to property owners, tenants in the MIC, as well as Low Density Residential within 500' of the MIC boundary Targeted mailing to selected MIC businesses Notices in "The Hazelnut" and "Tukwila Reporter" Phone and in- person interviews with stakeholders On -line surveys and comment form Public workshop on Issues and Opportunities recommendations Planning Commission meeting and public hearing 3. Preparation of Issues and Opportunities Report Staff assessed MIC issues and opportunities in light of current and anticipated conditions, the Comprehensive Plan vision, and stakeholder comments, and has prepared the attached Issues and Opportunities Report, including recommendations. (Attachment C) 4. Public Input and Open House on the Issues and Opportunities Report A public workshop and open house on the Issues and Opportunities report was held on April 14, 2011. Attendees commented on the importance of maintaining the health of the industrial MIC, railroad operations near Allentown, interest in finding an alternate route for truck traffic to the BNSF yard, and increasing the amenities for MIC employees such as restaurants/ coffee shops etc. Several written comments were received after the workshop. Summary of the comments and staff responses is included as Attachment D. All the written comments received by the City prior to April 21, 2011 are attached as Attachment E. rf Page 2 of 4 04/20/2011 WALong Range ProjectAMIC Study\Planning CommissionA28.11 Public Hearing\PC_Memo_4 -28 -1 Ledit.doc STAFF RECOMMENDATIONS The Issues and Opportunities Report includes a review of current regional and Tukwila policies, Tukwila regulations and consideration of the MIC's boundaries. Staff determined that the regional and Tukwila goals for the MIC are still valid. Rather than suggesting major revisions, staff has recommended specific changes that are within the parameters of the regional policy guidance and that focus on recognizing and improving what is already in place. A summary of staff recommendations, reformatted for discussion, and prepared for the April 14 public workshop /open house, is attached. (Attachment F). Comprehensive Plan (Issues and Opportunities Report, DD. 12 to 16) Recommended actions include: Add a new implementation strategy to reroute BNSF traffic from S. 124 to lessen impacts on the Allentown neighborhood (p. 15) Add a new policy to seek light rail and commuter rail stops in the vicinity of Boeing Access Road (p. 16) Development Regulations (Issues and Opportunities Report. DD. 17 to 27) Recommendations for development regulations are intended to focus the uses in the MIC zone on industrial activity and uses that support it, while allowing limited retail and service primarily for the area employees. These include: require that schools and colleges, currently conditional uses, be oriented toward vocational curricula and associated with an existing industrial or aviation use in light of the need for trained employees; reorganize and clarify manufacturing uses according to their likely impact; make certain uses, such as barber shop, medical services, health clubs, financial services, conditional rather than permitted uses and emphasizing that they are small in scale and intended to serve area employees: make hotel and motel conditional, rather than permitted, uses since they may be incompatible with the noise in the industrial area; delete certain uses that do not support industrial activity, such as dormitories, extended stay hotel /motel, billiard halls and nightclubs; and; require administrative design review for new offices given their characteristics and potential for impacts. A zoning matrix, highlighting current uses in the MIC zones and staff recommendations is Attachment G. rf Page 3 of 4 04/20/2011 WAL.ong Range Projects\MIC Study\Planning Commission \4.28.11 Public Hearing \PC_Memo_4- 28- 11.edit.doc Boundaries (Issues and Options Report, Pp. 27 to 31) One boundary change pertaining to Duwamish Hill Preserve is recommended: remove the Duwamish Hill Preserve from the MIC; rezone the area from Manufacturing Industrial Center /Light (MIC /L) to Low Density Residential (LDR), as is the case for other parks; and add a Public Recreation Overlay in recognition of its park use. (Map, Attachment H) Planned Action Document (Issues and Options Report, pp. 32 to 33): Staff recommends review of the Planned Action document NEXT STEPS The Planning Commission will hold a public hearing on April 28, 2011 to take comments. Following the hearing and discussion on April 28, the Planning Commission will be asked to provide direction to staff: 1) if it would like to hold a work session on May 13, 2011 for additional discussion; and 2) what, if any, additional information will be needed to assist in making a decision/ recommendation. On May 26, 2011, the Planning Commission will finalize its recommendation on possible changes to policies, code and boundaries. The recommendation will be forwarded to the City Council. The City Council will hold a public hearing on June 13, 2011, with final action taken either June 20 or June 27, 2011. ATTACHMENTS A.MIC map B. Background Report C. Issues and Opportunities Report D. Summary of Comments and Staff Responses —April 14 workshop E.Written comments received prior to 4/20/11 F. Sum mary— Recommended changes G.Zoning Matrix with MIC uses and recommended changes H.Recommended Zoning Change Duwamish Hill Preserve rf Page 4 of 4 04/20/2011 WALong Range ProjectsWIC Study\Planning Commission \428.11 Public Hearing \PC_Memo_4- 28- 1 1.edit.doc 5 j `�w, ar�1rIIIIrIE1�•'iirot III.'■■ .I a "v kk lit OEM �II� a, min I I mil .1 lislh:u 'loom, 5 ILE IN O' `i'� j 111 1111 )FY Attachment B Tukwila Manufacturing ndustrial Center Comprehensive Plan Update Background Report October 2010 W: \Long Range Projects \MIC Study \Planning Commission \DraftMICBackgroundRpt.doc Page 1 of 14 Sections: 1. Background 2. Purpose of the Report 3. Regulatory Context 4. City of Tukwila Code and Policy Review 5. Land Use 6. Transportation/ Utilities 7. Employment 8. Permitting and Development 9. Preliminary Issues and Opportunities Attachments: A. MIC Map (City of Tukwila B. Land Area by Zone (City of Tukwila) C. Covered Employment Estimates 1995 -2010 (Puget Sound Regional Council) D. Largest Employers 1990 -2010 (City of Tukwila Business Licenses) E. Average Wage Estimates -2008 (Puget Sound Regional Council) F. Summary of Development and Land Use Permit Activity- 1990 -2010 (City of Tukwila) G. Value of Permits 1990 -2010 (City of Tukwila) H. MIC Parcel Size I. MIC Ratio of Building to Land Value W: \Long Range Projects \MIC Study \Planning Commission \DraftMICBackgroundRpt.doc Page 2 of 14 Section 1: BACKGROUND Tukwila's Manufacturing/ Industrial Center is an important regional center of industrial activity. It one of four such centers designated in King County. The Manufacturing/ Industrial Center (MIC) is an area that is meant to preserve and enhance manufacturing and industrial activity, and the land that allows these activities to operate. Tukwila's MIC is one of the few remaining concentrations of industrial land in the urban Puget Sound region. Tukwila's MIC is approximately 966 acres along the Duwamish River, bounded generally by the City of Seattle on the north, South 125 Street on the south, the BNSF Burlington Northern railway right -of -way on the east, and the Duwamish River on the west. The MIC is home to over 14, 000 jobs, and provides a significant portion of Tukwila's economic activity, see Attachment A. City of Tukwila Comprehensive Plan policies establish that the Manufacturing Industrial Center is intended for industrial activity in order to "maximize the employment and economic benefits to the people of Tukwila and the region, while minimizing the impacts on residential neighborhoods." The Zoning Code, which implements the Comprehensive Plan's policies, limits non industrial uses, especially office and retail, which may occur in the MIC, and reserves the land for industrial activities and some limited support for these uses. New housing is not permitted. Section 2: PURPOSE OF THE REPORT This background report is being undertaken as part of the City's required update of the Comprehensive Plan. It is a review of the applicable policies and regulations in effect and an overview of past and present economic and physical conditions. Staff is identifying key issues that affect industrial businesses and lands in the Manufacturing/ Industrial Center. Issues will be considered in light of: 1) The Comprehensive Plan's ongoing 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 2) Periodic requests to allow non industrial uses to locate or expand there. This information will form a basis for staff's discussions with stakeholders in order to evaluate whether City of Tukwila actions, such as modifications to existing plans, for example the 1998 MIC Strategic Plan or development codes, are needed to help maintain most effectively the Manufacturing/ Industrial Center's important industrial land and business resource. Section 3: REGULATORY CONTEXT As a significant source of employment and economic activity, Tukwila's Manufacturing Industrial Center is important not only to the City of Tukwila, but also within the region. Future land use in the MIC is guided by its designation for continued manufacturing and industrial activities through the Puget Sound Regional Council's VISION 2040 Plan, King County's Countywide Planning Policies and Tukwila's Comprehensive Plan, Shoreline W: \Long Range Projects\MIC Study \Planning Commission \DraftMICBackgroundRpt.doc Page 3 of 14 Management Plan and development regulations acting in coordination. These policies and regulations are summarized below. A. VISION 2040 —PuiRet Sound Regional Council The Puget Sound Regional Council (PSRC) is the regional transportation and growth planning agency for King, Pierce, Snohomish and Kitsap counties. Per Washington's Growth Management Act, the PSRC is charged with developing planning policies for the four county region. The Puget Sound Regional Council recently adopted VISION 2040, a long -range growth management, transportation and economic development strategy to accommodate the additional 1.7 million people and 1.2 million new jobs expected to be in the region by the year 2040. The goals of VISION 2040 promote the well -being of people and communities, economic vitality, and a healthy environment. A central concept of VISION 2040 and its Regional Growth Strategy is to concentrate housing and job growth into defined areas, called centers. This includes identifying regional manufacturing /industrial centers as locations for industrial land and employment. The Puget Sound Regional Council sets criteria and standards that determine if a geographic area qualifies as a Manufacturing/ Industrial Center. In exchange for accepting growth, a Manufacturing/ Industrial Center is meant to receive transportation benefits and additional funding. As it developed its Comprehensive Plan in the 1990s, the City of Tukwila sought and received designation as a Manufacturing/ Industrial Center for its primary industrial area located along the Duwamish /East Marginal Way corridor. The location and number of regional Manufacturing/ Industrial Centers in King County were determined through a joint local and countywide adoption process. Tukwila's MIC is one of four centers designated in King County. The Puget Sound Regional Council offers the following definition of a Manufacturing/ Industrial Center, which applies to Tukwila's MIC: Manufacturing /industrial centers are major, existing regional employment areas of intense, concentrated manufacturing and industrial land uses which cannot be easily mixed at higher densities with other uses. To preserve land at these centers for manufacturing, industry and related uses, large retail uses or nonrelated offices are discouraged. Provision of adequate public facilities and services, including good access to the region's transportation system, is very important to the success of manufacturing /industrial centers. B. Countvwide Planning Policies and Designation of Manufacturing /Industrial Center As required by the Washington Growth Management Act, King County's Countywide Planning Policies (CPPs) address growth management issues in King County. They are more specific than the Puget Sound Regional Council's VISION 2040. Adopted and ratified by the King County cities in 1994 and updated periodically, the CPPs provide a countywide vision. They serve as a framework for each jurisdiction, including Tukwila, to develop its own comprehensive plan, consistent with the overall vision for the future of King County and the region. W: \Long Range Projects \MIC Study \Planning Commission \DraftMlC Background Rpt.doc Page 4 of 14 King County's Countywide Planning Policies identify four manufacturing /industrial centers, including Tukwila's Manufacturing Industrial Center (MIC). Within the boundaries of these centers, policies promote the preservation and aggregation of land parcels for manufacturing and industrial use and also discourage other uses that are not compatible with manufacturing and industrial activities. The CPPs identify Manufacturing/ Industrial Employment Centers as key components of the regional economy. CPPs define Manufacturing/ Industrial Centers as areas with a significant amount of manufacturing, industrial, and advanced technology employment. Per the CPP's, jurisdictions with Manufacturing /Industrial Centers must have zoning and detailed plans in place to achieve certain goals by 2010, that include: a. Preserve and encourage the aggregation of vacant or non manufacturing /industrial land parcels sized for manufacturing /industrial uses; b. Discourage land uses which are not compatible with manufacturing, industrial and advanced technology uses; c. Accommodate a minimum of 10,000 jobs; and d. Limit the size of offices and retail unless as an accessory use. If they meet certain employment levels and employment density, MICs should receive improved transit service, and help in indentifying and allocating funding for transportation improvements, and other services. C. Tukwila Comprehensive Plan —Goals and Policies The Tukwila Comprehensive (Comp) Plan is a long -range policy plan designed to articulate a vision of how Tukwila will grow in ways that sustain its citizens' values. The City first adopted the Comp Plan in 1995 as required by the state Growth Management Act of 1990. The Comprehensive Plan makes basic policy choices and provides a flexible framework for adapting to real conditions over time. It sets forth the goals and policies the City uses to guide future decisions about how much growth Tukwila should plan for and where it should be located. The Comp Plan also describes in a general way how the City will address the effects of growth on transportation and other City facilities. It is the basis for zoning and capital improvements. As conditions change, amendments to the Comprehensive Plan may be considered, subject to criteria that support the overall benefit of the community. The City of Tukwila's Comprehensive Plan views the retention of industrial land and activity as very important to Tukwila's continued well being. it establishes four fundamental objectives for Tukwila, upon which all goals and policies are based, including to "redevelop and reinvigorate the industrial uses along East Marginal Way." Citywide policies that affect the MIC are found in the Economic Development, Natural Environment and Transportation elements. Policies directly affecting the W: \Long Range Projects\MIC Study \Planning Commission \DraftMICBackgroundRpt.doc Page 5 of 14 Manufacturing/ Industrial Center are concentrated in the Manufacturing/ Industrial Center element. This element articulates the following overall goal for the Manufacturing/ Industrial Center: Goal 11.1 Support for existing industrial activities in the Manufacturing/ Industrial Center and development of new industrial activity in order to maximize the employment and economic benefits to the people of Tukwila and the region, while minimizing impacts on residential neighborhoods. Policies that support the primary goal include the following: Support New Development These policies are designed to take advantage of the development and improvement opportunities offered by the Manufacturing/ Industrial Center, and to realize its full revenue and employment potential. 11.1.1 Support the efforts of existing industries to expand and new industrial businesses to develop in the Manufacturing /Industrial Center by providing them with economic data, information on available development sites, help in understanding and getting through the permit processes, and other appropriate assistance. 11. 1.2 Assist landowners in remediating site problems caused by contaminated soil. Simplify Permit Processing These policies aim at reducing unpredictable permit conditions and permit review time. 11.1.3 Develop appropriate permit processes that minimize lengthy public review and simplify the development permit process, while providing meaningful opportunities for citizen input and protecting the environment. 11. 1.4 Tailor Manufacturing Industrial Center shoreline requirements to achieve consistency between Shoreline and MIC element goals and policies. Protect the Land Resource The land in the Manufacturing/ Industrial Center must be used effectively to allow it to generate its potential of high -wage jobs and public revenue. 11.1.5 Allow uses that are commonly associated with manufacturing and industry, including those directly supporting such activity, such as offices and laboratories, while limiting unrelated uses. 11.1.6 Develop and designate appropriate zoning, buffers, mitigation and access opportunities where manufacturing zoning directly abuts or impacts residential zoning so that MIC uses may operate without significant degradation of the residential environment. W: \Long Range Projects\MIC Study \Planning Commission \DraftMICBackgroundRpt.doc Page 6 of 14 Improve Duwamish River Access The Duwamish River as a natural amenity can be an asset to the industrial community. 11. 1.7 Support the Duwamish River becoming a natural feature amenity in the MIC. 11.1.8 Improve public access and use of the west side of the river, protecting owner's rights to reasonable use and enjoyment, improve employee access to the east side of the river, and emphasize restoration on both sides of the river. Improve Transportation Flow Work with other governmental agencies to address transportation problems. 11.1.9 Reduce reliance on the single- occupancy vehicle for transportation of employees in and out of the MIC. Continue Intergovernmental Coordination Work with other jurisdictions as required to ensure that the economic purpose of the MIC is fulfilled. 11.1.10 Make appropriate adjustments to the boundaries between Tukwila, King County and Seattle. 11.1.11 Work with other jurisdictions to bring about necessary changes in laws and regulations and to develop other approaches to solving common problems. D. Zonino Tukwila land use regulation is based on the Tukwila Comprehensive Plan, and implemented by the Tukwila Zoning Code (Tukwila Municipal Code Title 18), and the Shoreline Master Plan. The Manufacturing Industrial Center zoning boundaries are shown in Attachment A. The Comprehensive Plan and Zoning Code designate all land in the MIC as either Manufacturing Industrial Center /Light (TMC 18.36) or Tukwila Manufacturing Center /Heavy (TMC 18.38), see Attachment B. The purposes of these zones are shown below: Manufacturing Industrial Center /Light (MIC /L) "This district is intended to provide a major employment area containing distributive light manufacturing and industrial uses and other uses that support those industries. This district's uses and standards are intended to enhance the redevelopment of the Duwamish Corridor. Manufacturing Industrial Center /Heavy (MIC /H) "This district is—intended to provide a major employment area containing heavy or bulk manufacturing and industrial uses, distributive and light manufacturing and industrial uses, and other uses that support those industries. This district's uses and standards are intended to enhance the redevelopment of the Duwamish Corridor." W: \Long Range ProjectsWIC Study \Planning Commission \DraftmiCBackgroundRpt.doc Page 7 of 14 Retail and Office Use in the MIC: Both Manufacturing Industrial Center /Light (MIC /L) and Manufacturing Industrial Center /Heavy (MIC /H) allow certain non industrial uses, including retail sales and office. Each zone treats these uses somewhat differently. Retail activity that is intended to serve other permitted uses and /or their employees in the immediate area is a conditional use in both the MIC /L and MIC /H. The MIC /L zone allows offices that are smaller than 20,000 square feet as a permitted use. The MIC /H zone requires that offices be associated with another permitted use, such as an administrative office for an existing manufacturing facility. The MIC /L zone considers offices greater than 20,000 square feet as a conditional use. MIC /H allows offices not associated with a permitted use under specific conditions, subject to set size and location restrictions. Residential uses are not permitted in the MIC. E. Environmental Review Planned Action In 1998, the City Council adopted a Strategic Implementation Plan for the MIC and an accompanying Planned Action Environmental Impact Statement that that analyzed anticipated development alternatives in the MIC area and streamlined SEPA review for development in that corridor. The "Planned Action" option for State Environmental Policy Act (SEPA) review is allowed by the Washington Growth Management Act in sub areas, such as the MIC, that have an adopted plan for development. Planned action environmental review is a voluntary process meant to eliminate unnecessary regulatory barriers, shorten the review process, and provide more predictable review through development standards. Tukwila has received 44 planned action requests to date, with 36 approved. To be eligible for planned action environmental review, proposed projects must meet some basic qualifications, including: 1) The action is a "permitted use" or "accessory use" located within the MIC /L or MIC /H zones. 2) The action is: a. Not an "essential public facility" per RCW 36.707A.200; b. Not a conditional or unclassified use, in the MIC /L or MIC /H zones; c. Not a development that extends waterward of the ordinary high water mark; d. Not a development associated with the 16 Avenue Bridge construction activities. F. Shoreline Master Plan and Shoreline Overlav District The Duwamish River, running through Tukwila and the Manufacturing/ Industrial Center, is designated a Shoreline of Statewide Significance. Land within 200' of the Duwamish River lies within the shoreline jurisdiction, and is subject to the Shoreline Master Program, in conformance with the Washington State Shoreline Management Act (Chapter 90.58 RCW) and its implementing regulations (WAC 173 -26). The Shoreline Master Program (SMP) is intended WALong Range Projects \MIC Study \Planning Commission \DraftM]C Background Rpt.doc Page 8 of 14 to guide new shoreline development, redevelopment and promote reestablishment of natural shoreline functions, where possible. Consistent with the Growth Management Act requirement to integrate the SMP and the Comprehensive Plan, the City adopted its updated Comprehensive Plan in 1995 and incorporated the required elements of a SMP into the Comprehensive Plan. Further direction for implementing the required elements of the SMP is provided through Zoning Code Chapter 18.44 and the design review process. Over a period of years, the City of Tukwila has been updating its existing SMP, originally adopted in 1974, as required by state law. The Tukwila City Council adopted a revised SMP in December, 2009. The SMP is currently under review by the Washington State Department of Ecology, with final adoption anticipated at a later date. Until final approval is given, Tukwila's current SMP and Comprehensive Plan policies and development regulations pertaining to the shoreline area remain in effect. As part of the Master Program update, new Shoreline Overlay District regulations will be implemented. The new Master Plan establishes new shoreline environments within the MIC, including High Intensity Environment north of the turning basin, and Urban Conservancy south of the turning basin. The Plan addresses a number of issues including shoreline stabilization, protecting existing and new development from high river flows, and restoring important habitat. Other important aspects of the update recommend increasing buffers along the river, increasing public access opportunities, preserving native vegetation, and removal of invasive plants. The City's vision for future land use, based on its overall Comprehensive Plan, includes maintenance and further development of its urban character, particularly its identity as a regionally significant center for manufacturing, industrial, and commercial development. A challenge lies ahead in determining how best to accommodate new and redevelopment near the shoreline in a manner consistent with both the Comprehensive Plan and the Shoreline Master Program. Section 4: City of Tukwila Code and Policv Review The underlying premise of the MIC update is the affirmation of the area's role as a focus for manufacturing and industrial activities, and as an important resource for industrial property. Through the Comprehensive Plan and development code update and amendment process, the community considers modifications to Tukwila's Comprehensive Plan and regulations in order to address changing conditions, new legal requirements and ongoing work. Some recent Comprehensive Plan and zoning changes affecting the MIC include: 2010 Significant portions of Tukwila's MIC lie along the shoreline, and are subject to the SMP. Recently adopted Shoreline policies for the new High Intensity and Urban Conservancy environments in the MIC 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. W: \Long Range Projects\MIC Study \Planning Commission \DraftMICBackgroundRpt.doc Page 9 of 14 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) 2003 —The Manufacturing Industrial Center /Heavy (MIC /H) Zoning category was revised to allow new office developments not associated with other permitted uses, subject to certain size and location restrictions (Ordinance #2028). 2001 —The Manufacturing Industrial Center /Light (MIC /L) Zoning category was revised to allow office uses up to 20,000 square feet as a permitted use, and offices over 20,000 as a conditional use (Ordinance #1954). Section 5: Land Use The MIC's physical environment is shaped by the Duwamish River and its shoreline area, along with the filled upland areas that have been developed for heavy industrial use. The Duwamish River was channelized and dredged to enable navigation between Elliott Bay and the turning basin. Beyond the river's steep banks, the land is generally flat. Approximately 1,174 acres or 25% of all land in Tukwila is zoned for industrial use, see Attachment B. The majority of industrially -zoned land is located in Tukwila's Manufacturing Industrial Center. 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. The area has a pattern of large lot ownership and a mixture of industrial activity with some vacant or under utilized facilities. This pattern indicates the continued presence of the Boeing Company, the MIC's major property owner, and the decline of other heavy industrial companies in the area. A significant portion of MIC is in governmental use, including the southern third of King County International Airport which is the second largest property owner in the MIC, the METRO transit maintenance facility, the US Department of Homeland Security, and the US Postal Service regional processing facility. Group Health is a large employer, providing warehouse, lab and service jobs. The Duwamish River runs through the MIC. The river supports the Muckleshoot Indian Tribe's salmon fishery, and several water dependent uses. Parks and open space include the Duwamish Hill Preserve, and several designated public wetland habitats. Several older single family residences are located in the MIC. W: \Long Range Projects\MIC Study \Planning Commission \DraftM]CBackgroundRpt.doc Page 10 of 14 The highly industrialized and modified portion of the Duwamish, including some property in the MIC, has also been the location of significant discharge of pollutants. This has resulted in portions of the river being designated as Federal Superfund sites. Remediation, source control and disposal activities are ongoing throughout the area. Section 6: Transportation /Utilities Since the MIC is an established industrial area, a complete infrastructure system has been in place for many years. 1 -5 SR -599, Tukwila International Boulevard and East Marginal Way provide regional road access. The Tukwila Comprehensive Plan sets "Level of Service E" as the standard on roads in the Manufacturing/ Industrial Center. East Marginal Way contains sufficient capacity to meet the MIC's anticipated transportation needs. Pedestrian and bicycle facilities are planned to supplement transportation infrastructure along East Marginal Way. The MIC is served by water, sewer and storm drainage area -wide systems that are considered generally adequate to support buildout. Concurrency standards ensure adequate service and fair -share participation by properties that had not supported the area -wide system when it was developed. Section 7: Employment The MIC is an important source of direct (property tax) and indirect (sales tax) revenues received by Tukwila. Tukwila business license records indicate that 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. 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. see Attachment C. Maior Emplovers 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 than 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. WALong Range Projects\MIC Study \Planning Commission \DraftMICBackgroundRpt.doc Page 11 of 14 Aerospace, including Boeing, represents the largest category of manufacturing. The decline in aerospace employment from 2000 -04 was much smaller in the Tukwila MIC than was the case regionally, and the rebound was notably stronger (thus the concentration of aerospace into MICs). 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 and property owner in the MIC (as reported by Tukwila business licenses.) Three large employers, including Boeing, Group Health Cooperative and King County Metro transit facility provided 90% of jobs in the MIC in 2010, see Attachment D. The MIC has generally avoided incompatible retail expansion, but growth in the services sector merits further monitoring. WaRes 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), see Attachment E. Section 8: Permitting and Development Land Use Permits A total of approximately 200 land use decisions were issued between 1990 and 2010 in the MIC. Shoreline permits were approximately 15% of the total land use permits, see Attachment F. 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 in the MIC 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 centers, new construction for the Museum of Flight, and the future Raisbeck Aviation High School. The two former types of W: \Long Range Projects\MIC Study \Planning Commission \DraftM[CBackgroundRpt.doc Page 12 of 14 development are distinctly industrial in nature, while the latter represent cultural and educational activities that are oriented toward aviation and technology industries, see Attachment G. Development Potential The larger industrial parcels, such as are found in much of the Manufacturing Industrial Center, are especially suited to traditional industrial use. The majority of parcels in the MIC are over three acres in area. Approximately 80% of parcels located north of the Duwamish turning basin are between eight and 116 acres in size, see Attachment H. A ratio of improvements to land less than 1 is typical of many industrial uses, such as warehousing, storage or some manufacturing that require significant amounts of land, but may have relatively low value buildings. When the assessed value of improvements is less than the value of the land i.e. with an improvement to land ratio less than 1, property may be sought for redevelopment, including change of use from industrial to commercial. Over half of parcels in the MIC have land values that are higher than the value of buildings or improvements on site, see Attachment I. Because industrial land value is typically lower in value than commercial land, there is constant pressure by non industrial uses to locate in these zones, including the MIC. There is also periodic interest in rezones. Section 9: Preliminary Issues and Opportunities In addition to the information derived from the background report Staff will review industrial trends and seek information from survey results, public comments and conversations with stakeholders to determine key issues. Based on the work to date the following issues and opportunities will be carried forward into the public process for discussion and analysis. 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 owned by the Boeing Company will be available for redevelopment. The MIC contains several sites with contaminated soils or similar issues. Environmental cleanup sites can represent both challenges and opportunities for redevelopment. The Raisbeck Aviation High School will be constructed on the former Rhone Poulenc site. W: \Long Range Projects\MIC StudyTianning Commission\ D raftM] CBackground Rpt. doc Page 13 of 14 The recent closure of the South Park /116 Avenue Bridge has produced minimal impacts due to long -term decreases in traffic along East Marginal Way. By contrast, the private bridge at S. 102 across private property belonging to the Boeing Company has experienced an increase in traffic. A replacement for the South Park /116 Avenue Bridge has recently received full funding. Traffic impacts to the private bridge 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 long -term future change. Eventual roadway improvements are planned along Tukwila International Boulevard north to the Duwamish River. BNSF is seeking and considering alternate means of access to its large -scale regional center. WALong Range Projects \MIC Study \Planning Commission \DraftMlC Background Rpt.doc Page 14 of 14