HomeMy WebLinkAboutCOW 2011-08-08 Item 3B - Shoreline Master Program - Attachment 2: Summary of Testimonyv
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ATTACHMENT A TO ISSUE SUMMARY
TO: Jim Haggerton, Mayor
Members of the City Council
Rhonda Berry, City Administrator
FROM: Shelley Kerslake, City Attorney
Kari Sand, Assistant City Attorney
DATE: October b, 2009
RE: Shoreline Master Plan Non conformities and Banking Regulations
Michael R. Kenyon
Bruce L Disend
Shelley M. Kerslake
Sandra S. Meadowcroft
Kari L Sand
Chris D Bacha
Margaret J. King
Bob C.Sterbank
Steve 1. Victor
Renee G.Walls
Sara B. Springer
As currently proposed, the City's Shoreline Master Plan ("SMP") update may cause some
existing structures along the Green/Duwamish River to obtain non conforming status under local
zoning regulations. Potentially affected property owners have raised concerns that this non-
conforming status will adversely affect their ability to use their real property as collateral to
obtain credit or loans from banks and other lenders.
I. OUESTION PRESENTED
Whether non conforming status adversely affects a property owner's ability to use his or
her real property as collateral to obtain credit or loans from banks and other lenders.
H. ANALYSIS
To determine whether banks are less inclined to extend credit or issue loans against non-
conforming structures, we inquired at numerous local lending institutions. Most banking
officials we contacted indicated that it is difficult to generalize in this context; however, in terms
of procedure, most banks establish their own set of underwriting guidelines that are reviewed and
updated regularly, typically quarterly. Over the past year, due to the weakened economy, most
underwriting guidelines have steadily tightened, resulting in more stringent loan qualification
criteria and procedures.
There are numerous criteria that banks consider when evaluating loan applications, such
as, the creditworthiness of the applicant, loan -to -value ratios, and whether the applicant has an
established lending history with the bank. Certain "anomalies," such as a non conforming
structure, may fall outside of a bank's loan underwriting guidelines. This does not necessarily
mean, however, that a bank will reject the loan application. The bank may require a zoning
Kenyan Disend. PLLC I The Municipal Law Firm I I 1 front Street South I Issaquah.WA 98027 -3820 I Tel: (425) 392 -7090 I Fax: (425) 392 -7071 I www.kenyondisend.com
G
opinion letter, which Tukwila planning staff prepare upon request, to address underwriting
concerns. Examples of underwriting concerns include whether a non conforming structure is
allowed to rebuild after a catastrophic event (e.g., a fire), and whether any timing, square footage
limitations or other zoning restrictions apply in the event of a rebuild scenario. These letters
assist the lender in assessing the risks associated with a particular loan application and are just
one of many factors considered.
III. CONCLUSION
The "bottom line" is that it appears there is no "one -size- fits -all" answer in the lending
world, and each bank will apply its own set of criteria based upon a careful review of the unique
facts and circumstances presented by an individual borrower. Thus, creating non conforming
structures through City regulation is not a blanket hindrance to financing. If that were the case,
cities would never change their codes to create non conformities.
Should you have further questions regarding this topic, I may be reached at (206) 433-
1846 or skerslake1@ci.tukwila.wa.us.
I There was some testimony at the public hearing regarding, a question on loan applications asking whether the
property was conforming or not. No bank confirmed that this was an issue at the application stage. Reber, the
banks indicated that the conformity they were looking at was whether the loan was a jumbo loan or a "conforming
loam"
-2-
F:IAPPSICMTUKW[LAW emd1MEM0 SMP Uphte -Non wararWag strnqures.doclW10106M4
i s
Attachment B Joe Desimone 07/12/11 mtg
With City Staff RECEIVED
SUMMARY OF PROPOSED SMP AMENDMENTS 'JUL 14 20fl
COMMUNM
Modification of Water Oriented Use Preference for Commercial/Industrial Properties
North of 126th: Properties north of I -5 that devoted to commercial/industrial uses are not
appropriate for water enjoyment uses. The following amendment provides for consistency
between uses as provided for in Tukwila comprehensive plan policies 11.1.4, 11.1.5. The
amendment also meets the requirement under county planning policy LU -52, b, which
discourages incompatible uses in areas that have been designated manufacturing and Industrial,
centers, MIC
Amend note 8 in the Shoreline Use Matrix, Section 8.3, as follows:
Nonwater- oriented uses may be allowed as a permitted use where
the City determines that water dependent or water enjoyment use
of the shoreline is not feasible due to the configuration of the
shoreline and water body, except that for industrial/commercial
properties north of 1-5• the City need only demonstrate that water
dependent uses are not feasible.
Buffer Reduction for Habitat Restoration and Public Shoreline Access: Shoreline properties
with habitat restoration projects or which provide enhanced public shoreline access would be
eligible for a 35% buffer reduction.
Amend Table 3 and Section 7.7 and 7.8 to add the following:
The Planning Director may reduce the standard stream buffer on a
case -by -case basis by up to 35% on a shoreline property on which
a habitat restoration project has been completed or on which the
property owner provides public access that exceeds the public
access standards and incentives in Section 11. So long as the
reduced buffers do not cause any net loss to shoreline functions
and values.
Buffer Reduction for Narrow Properties: Shoreline parcels that would lose a substantial
proportion of their area to the expanded buffers in the SW would be allowed a 35% buffer
reduction.
Amend Table 3 and Section 7.7 and 7.8 to add the following:
The Planning Director may reduce the standard buffer on a case
by -case basis on non levied properties by up to 35% on a shoreline
parcel in the buffer area exceeds one -third of the total area of the
►E
parcel. So long as the reduced buffers do not cause any net loss to
shoreline function and values.
Use of Zoning Code Definition of Accessory Use: The DOE adds a definition of accessory use
that is different than the one in the zoning code. This proposed amendment would replace the
DOE definition with the Tukwila zoning code definition for accessory uses. This amendment
provides for consistency for the definition of Accessory uses within Tukwila's codes
Amend the definition of "Accessory Use" in Section 3 as follows:
Accessory use: An accessory use is a use
incidental and subordinate to the principle use and located on the
same lot or in the same building as the principAl use. Am aeoessery
t a nd e pa fabl m oth uses i
two
use M ""r
it�t �Aeinity.
Parking as a Permitted Use: The DOE required use matrix limits parking areas in
commercial/industrial shoreline environments to the minimum necessary to support permitted or
conditional uses. The proposed amendment would restore parking area uses as permitted by the
underlying commercial/industrial zoning.
Amend the Shoreline Use Matrix, Section 8.3, by removing the use category "Parking
Accessory" from the Use Matrix.
Extension of Time to Obtain Permits to Reconstruct Non Conforming Structure
Accidentally Destroyed. The nonconforming uses and structures can be vacant for up to 24
months whereas for a structure that is accidentally destroyed, a permit application must be filed
within 12 months. Economic conditions may require a longer time period for applying for
reconstruction permits. The proposed amendment would make all time periods consistent at 24
months.
Amend Section 14.5(B)(2) as follows:
Should such structure be destroyed by any accidental means the
structure may be reconstructed to its original dimensions and
location on the lot provided application is made for permits within
Wifelve H- 4 24 months of the date the damage occurred and all
reconstruction is completed within two years of permit issuance. In
the event that the property is redeveloped, such redevelopment
must be in conformity with the provisions of this SMP.
42
Attachment C 07/19/11
Desimone Proposed Language Revisions RECEIVED
SUMMARY OF PROPOSED SMP AMENDMENTS JUG' 19 2011
COMMu
DEVELOPMEN
T
Modification of Water Oriented Use Preference for Commercial/Industrial Properties
North of 126th: Properties north of I -5 that devoted to commercial/industrial uses are not
appropriate for water enjoyment uses. The following amendment provides for consistency
between uses as provided for in Tukwila comprehensive plan policies IL 1.4, 11.1.5. The
amendment also meets the requirement under county planning policy LU -52, b, which
discourages incompatible uses in areas that have been designated manufacturing and Industrial,
centers, MIC
Amend note 8 in the Shoreline Use Matrix, Section 8.3, as follows:
Nonwater- oriented uses may be allowed as a permitted use where
the City determines that water dependent or water enjoyment use
of the shoreline is not feasible due to the configuration of the
shoreline and water body., except that for industrial/commercial
properties north of 1 -5, the C� need only demonstrate that water
dependent uses allowed by the underlining zoning are not feasible.
Buffer Reduction for Habitat Restoration and Public Shoreline Access: Shoreline properties
with habitat restoration projects or which provide enhanced public shoreline access would be
eligible for a 35% buffer reduction.
Amend Table 3 and Section 7.7 and 7.8 to add the following:
The Planning Director may reduce the standard stream buffer on a
case -by -case basis by up to 35% on a shoreline property on which
a habitat restoration project has been completed or on which the
property owner provides public access that exceeds the public
access standards and incentives in Section 11.
So long as the reduced buffers do not cause any net loss to
shoreline functions and values and that the buffer reductions will
not result in any adverse impacts to river. If the existing buffer is
vegetated a buffer enhancement plan may be required to
demonstrate how functions and values of the buffer and river will
be improved. If the buffer is not vegetated or has been disturbed
the enhancement plan shall be required to show how the measures
will improve and enhance the buffers function and values while
providing additional protection to the river. All enhancement plans
are subject to approval of the planning director.
43
Buffer Reduction for Narrow Properties: Shoreline parcels that would lose a substantial
proportion of their area to the expanded buffers in the SMP would be allowed a 35% buffer
reduction.
Amend Table 3 and Section 7.7 and 7.8 to add the following:
The Planning Director may reduce the standard buffer on a case
by -case basis on non levied properties by up to 35% on a shoreline
parcel in the buffer area exceeds one -third of the total area of the
parcel. So long as the reduced buffers do not cause any net loss to
shoreline function and values and that the buffer reductions not
result in any adverse impacts to the river. If existing buffer is
vegetated a buffer enhancement plan shall be required to
demonstrate how functions and values of the buffer and river shall
be improved. If the buffer is not vegetated or has been disturbed
the enhancement plan shall be required to how the measures will
improve and enhance the buffers functions and values while
providing additional protection to the river. All enhancement plans
are subject to approval of the planning director.
Use of Zoning Code Definition of Accessory Use: The DOE adds a definition of accessory use
that is different than the one in the zoning code. This proposed amendment would replace the
DOE definition with the Tukwila zoning code definition for accessory uses. This amendment
provides for consistency for the definition of Accessory uses within Tukwila's codes
Amend the definition of "Accessory Use" in Section 3 as follows:
Accessory use: An accessory use is a use
incidental and subordinate to the principle use and located on the
same lot or in the same building as the principAl use. I B ey
inune
Parking as a Permitted Use: The DOE required use matrix limits parking areas in
commercial/industrial shoreline environments to the minimum necessary to support permitted or
conditional uses. The proposed amendment would restore parking area uses as permitted by the
underlying commercial/industrial zoning.
Amend the Shoreline Use Matrix, Section 8.3, by removing the use category "Parking
Accessory" from the Use Matrix.
Extension of Time to Obtain Permits to Reconstruct Non Conforming Structure
Accidentally Destroyed. The nonconforming uses and structures can be vacant for up to 24
months whereas for a structure that is accidentally destroyed, a permit application must be filed
within 12 months. Economic conditions may require a longer time period for applying for
reconstruction permits. The proposed amendment would make all time periods consistent at 24
months.
Amend Section 14.5(B)(2) as follows:
Should such structure be destroyed by any accidental means the
structure may be reconstructed to its original dimensions and
location on the lot provided application is made for permits within
twelve (12) 24 months of the date the damage occurred and all
reconstruction is completed within two years of permit issuance. In
the event that the property is redeveloped, such redevelopment
must be in conformity with the provisions of this SMP.
45
m