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Home My WebLink AboutCDN 2019-03-12 Item 2A - Development Agreement - Amendment for Airmark Apartments / Hotel InterurbanCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods Committee FROM: Jack Pace, DCD Director BY: Nora Gierloff, Deputy DCD Director CC: Mayor Ekberg DATE: March 12, 2019 SUBJECT: Airmark Apartments Development Agreement Revision Request ISSUE The owners of the Airmark Apartments/Hotel Interurban have requested an amendment to their development agreement to allow additional building signage. BACKGROUND The City has received a request for a third amendment to the development agreement (DA) between the owners of Airmark Apartments/Hotel Interurban and the City of Tukwila for the building at 223 and 229 Andover Park East. The existing DA allows the following sign code departures: 1) Canopy edge signs that are 3.5 feet high rather than 1 foot, and 2) Two wall signs that are 500 square feet each rather than 150 square feet. This request is for another change to the development standards section of the DA to allow installation of two additional 1,000 square foot wall signs to increase the visibility of the Airmark Apartments, see Attachment A. Currently the Airmark's only signage is on a canopy sign over the entry door while Hotel Interurban is advertised on wall and canopy signs, see Attachment B. The additional wall signs requested are twice the size of the signs approved in the prior agreements and more than six times larger than the sign code permits for this site. The proposal would not remove or reduce either of the existing wall signs. In addition, the proposal is to place the "Airmark" portion of the signs above the top of the building parapet. This is prohibited by TMC 19.20.050 A 5.: Wall signs may not extend above the top of the parapet or eave of the roof of the wall on which they are located. Staff has met with the owners several times and offered the following approaches: 1. Administratively changing the design of the wall signs to include mention of the apartments within the 500 sf maximum size allowed previously. 2. Administratively approving changes to the landscape plan to allow for installation of a monument sign, as allowed under the sign code. 1 INFORMATIONAL MEMO Page 2 3. Recommending Council approval of an amendment to the DA to increase the size of the existing wall signs by 250 square feet (the "Hotel" portion of the sign is 200 sf) to add language like "and Flats" or "+ Residences". 4. Recommending Council approval of an amendment to the DA to move one of the wall signs to another building face. 5. Economic Development staff is working with Airmark on marketing and promotion separate from signage changes. The Committee discussed this issue at their 2/12/19 meeting and asked staff to return with options for possible amendments to the DA. DISCUSSION The City would like to support its businesses so that they can be as successful as possible. At the same time, because most would like additional signage, the City needs to set limits so that signs do not overwhelm the commercial areas to the detriment of all businesses. Nearby jurisdictions do not allow the type or size of sign requested by the Airmark owners. Jurisdiction Tukwila SeaTac Renton Bellevue Seattle Maximum Wall Sign Size 150 SF standard code; 500 SF under the Master Sign Program if set back 250' from street; 1,500 SF in MIC/H Zone if on a 100,000 SF wall 10% of building facade 20% of building facade in the City Center 300 SF 672 SF Rooftop Signs Prohibited generally; Master Sign Program allows a 40 SF sign on a sloping roof, below the roof peak Prohibited unless site has no street frontage and is at least 200 feet from a R-O-W, no visible sign supports Prohibited in the City Center and Urban Design area No visible sign supports, must appear to be part of the building Max height of 25 feet Other Requirements 1 wall sign per public entrance; Master Sign Program requires 15 acre site and 200,000 SF of building area Building accent lighting is considered part of sign area Additional options for buildings over 40 feet tall Design Review required, business must occupy at least 75,000 SF in the building to qualify for 2 upper level high rise signs 1 sign per 30 feet of street frontage, No wall signs above 65 feet except hotels or public buildings, max dimension 18' Z:\Council Agenda Items\DCD13-12-19\Memo WA PI DA Amend CDN 3-12-19.docx 2 INFORMATIONAL MEMO Page 3 Tacoma 200 SF per sign, 3 max per business Prohibited except where incorporated into a building to provide an overall finished appearance, wall signs may not extend above the parapet Total wall sign area is 1 SF per linear foot of building wall with a public entrance Even under Tukwila's most permissive standards for the Manufacturing Industrial Center/Heavy Industrial zone the largest signs allowed for this building would be 850 SF for the south wall (wall is 52,000 SF) and 645 SF for the west wall (wall is 38,000 SF and already has a 500 SF sign). For comparison, all of the red "Westfield" monument and wall mounted signs at the mall together total 1,200 SF (not the pole sign). The existing DA has granted the project considerable flexibility on development standards such as height, parking and open space in addition to signage. The most recent request does not clearly identify an additional public benefit that would justify this additional change. In particular, allowing signs of this size and rooftop signs would be a significant policy departure for the City and likely lead to requests from other businesses for similar signage. If the Council is interested in allowing Airmark additional signage policy options include: Number of Wall Signs 1 or 2 Could require 1 existing wall sign to be removed/replaced Size of Signs 500, 750 or 1000 SF Even if the Sign Code is not changed it will set a precedent for other requests Location Above or below parapet An alternate location is on the mechanical penthouse where the temporary signs were located Time Limit 3, 4 or 5 years Allow while the apartments are leasing up and Southcenter is establishing as a residential area, then reevaluate or remove Performance Bond If time limited require a bond to ensure removal at the expiration of the term Copy Limitation Limit sign copy to "Airmark Apartments" RECOMMENDATION If the Committee determines that this request should move forward then select from the above policy options and move this item on to the March 25, 2019 Committee of the Whole meeting for a public hearing. ATTACHMENTS A. Request for Additional Signage through DA Amendment B. Existing Airmark/Hotel Interurban Signage Design and Location C. Draft DA Amendment and Adopting Ordinance Z:\Council Agenda Items\DCD13-12-19\Memo WA PI DA Amend CDN 3-12-19.docx 3 4 January 28, 2019 Dear Councilmen: First of all, we want to thank you for believed in us and supported us to create the first mixed use hi -rise project in the City of Tukwila. This project has been well received by the community. The comments we get on a regular basis from our residents, hotel guests and the surrounding public made us very proud to be the developer of this project. We appreciate all of you, the Councilmen, the City staffs for working with us since 2012. We need your continue support with the success of this project. When we first design this project, we admit we had put way too much attention to the hotel section. Being a seasonal developer for residential projects, we did make a mistake by not emphasize the signage for residential portion. Totally neglected the unique situation we have at this location which has no residential ever existed. For a normal residential project, we do not need to put more than just a building awning type of sign. However, with this project, we finally realized that visible signs are absolutely needed. Because we need to educate the surrounding public, that we have quality living residential units available. For your information, a residential rental project average lease derives from walk-in traffic is 25-35%. With our project, we have 0% since January 2017. People simply do not know the residential portion within the project exists, they believe the whole building is a hotel. We are requesting an amendment to our Development Agreement. We want to install 2 additional building signs each with 1000 square feet for the residential area. We have attached the proposed sign elevations. We understand the City has sign code. However, we believe the code was established without consideration of hi -rise buildings. With hi -rise, the size of the sign is critical. It is meaningless if people on the street level cannot read. We appreciate your consideration for our request. Again, this is a critical decision which leads the fate of this project. Thank you very much for your time. Best Regards, Christine Lee Attachment A 5 6 ,IA11RMAR1 r ti ==mtual rtf—" in in :u in RI ® ® gE 6E 3E U U FE FE FE 2E FE ® LB U®ru ®;u RI ;u :r EH n: 1411 EiL ,ELIB g] g1 IH RI 14 M i �]�RI EC E I C 9 I C I EI g I_ E 21 m L U Ell ~i 6� 7 111 r1 12 21 a1 EC M 132 I31 Ili gl [8 fH lei I8 Elf—gi1 DI I3'. LU 1 22 R] III m E] 113 EI L33 ELI LU m LU m 133 E] DI El 111 E] ]L3 as RI ID Ea 133133 [3 R1 18 E i ED a III r ID ffi In EU ® RE'® EC re 131 r$ f re ea rH aI N73MICE [H Ri r3; RI a7 in az ® R] rH a] ra 1a 're m ra ® - ra R] Ca ra i37 R3 EC RI ra FIT, DIHI [H RI re RI ra R]'1H 9I CH HI DI RI - SI El ElLUElLU IL]$7IHaIIHaa LEIEU�RIEl E] RI L8 El IS R1 Ls E]'ta E 113 m rH aI LB E] L8 9I at r3x23.® El El [amLU ea is Ea r8 az1 jai U]S]C13 SIraRI 1• •1 A3 RIrH RI LU RI EH RI Ea m m [� R] ra �, za ]� ra •8 rs a] ra Ial E 2-3L&EUrHE DI RIrgIll LEI In LaaLSHIEll urea .• 133 LB 133 Proposed sign on South Elevation sot a EH I I 2 -1I my r b 2 ■ Proposed sign on West Elevation 7 8 8 luawyoenv MMMEM _MUM MA �3LMM wti Ea E) CC () GO o> .et V�Cam r---) CC Kim GCE —r- 0 —r- 0 0 10 I s tmE1131DEIDEI@ElERE 'tEIRE..E1h3.31A1213131110 til-g912111@pa-TEADNHFdllil E03 N' El El 3 A- 13 3 121 iiETMECTIS-IREED.HiE131811il ,RETEEI EDF-111111-113EliEllE1 - MDUE1171ENEIMEElbilalW _gME11_'.E171H.E1121d LIJDEI 7,M[fiD_Elb@ED-ElElpEl'.41,13D B Es El fai_a LEJ a 6.A El :11 E1 g gIMID1DE ,LLIEi1E.E1131E1133 RI Ei pi rti B D-ErEl [i GI @III a OTEL TERURBA , = ... • Vi 4 iJ ll ' N p. Ei LI 'LI j_ 1.1 r ...„.„.. _ F r'l 'FL H H. H H H H J- H .FF • K I IT • • ' I. A I. I:— L LI L LI :ii Ll Li i• _Li 1---,.- • , .• ,.1.., _i E_,_ ._,_ ,..it—,1 .-I LIL; 1 -1 _ . tvEi ET 4 51' E4 x.- . , q - 7 F. = .• Pi F,7 171 71 17 1.71 7i. LLOZ `90 AJenuer s i aII!! F EZ M b/E 81 Z/L Ob fre ry 0 V o u., N 0 0 { 8a lug 8 0 0 t0 LLOZ `90 Nenuer 12 N C 3r co 6 lia *Au J W a AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RELATING TO DEVELOPMENT AGREEMENTS AUTHORIZE❑ PURSUANT TO CHAPTER 18.86 ❑F THE TUKWILA MUNICIPAL CODE; APPROVING AN❑ AUTHORIZING THE THIRD AMENDMENT TO THE 223 ANDOVER PARK EAST DEVELOPMENT AGREEMENT WITH SOUTH CENTER WA, LLC, A WASHINGTON LIMITED LIABILITY COMPANY; PROVIDING FOR SEVERABILITY; AN❑ ESTABLISHING AN EFFECTIVE DATE. WHEREAS, RCW 36.70B.170, et seq. and Tukwila Municipal Code (TMC) Chapter 18.86 authorize development agreements between the City and persons having ownership or control of real property in order to establish development standards to govern and vest the development use and mitigation of real properties; and WHEREAS, the City of Tukwila and South Center WA, LLC entered into a Development Agreement for the 223 Andover Park East Development effective the 19th day of March 2013 (and approved by ❑rdinance No. 2399 on March 18, 2013); and WHEREAS, the City of Tukwila and South Center WA, LLC entered into the First Amendment to the ❑evelopment Agreement for the 223 Andover Park East ❑evelopment effective the 19th day of May 2014 (and approved by Ordinance No. 2438 ❑n May 5, 2014); and WHEREAS, the City of Tukwila and South Center WA, LLC entered into the Second Amendment to the Development Agreement for the 223 Andover Park East Development effective the 24th day of November 2015 (and approved by ❑rdinance No. 2490 on November 16, 2015); and WHEREAS, the City of Tukwila and South Center WA, LLC wish to enter into a Third Amendment to the Development Agreement for the 223 Andover Park East Development, a copy of which is attached hereto as Exhibit A; and WHEREAS, as required pursuant to TMC Section 18.86.050, a public hearing was conducted on the 25th day of March 2019 to take public testimony regarding this Third Amendment to the Development Agreement as proposed; W. Legislative aevelopment1223 APE DA-Third Amendment 3-4-19 NG.bjs Review and analysis by Barbara Saxton Page 1 of 2 13 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The Third Amendment to the 223 Andover Park East Development Agreement by and between the City of Tukwila and South Center WA, LLC, a copy of which is attached hereto as Exhibit A, is hereby approved and the Mayor is authorized and directed to execute said Third Amendment to Development Agreement on behalf of the City of Tukwila. Section 2. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2019. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Exhibit A: Third Amendment to Development Agreement by and between the City of Tukwila and South Center WA, LLC for the 223 Andover Park East Development W: Legislative oevelopment1223 APE DA-Third Amendment 3-4-19 NG:bjs Review and analysis by Barbara Saxton 14 Page 2 of 2 THIRD AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND SOUTH CENTER WA, LLC FOR THE 223 ANDOVER PARK EAST DEVELOPMENT THIS THIRD AMENDMENT TO DEVELOPMENT AGREEMENT (the "Third Amendment") is made and entered into this day of April 2019, by and between the CITY OF TUKWILA ("City"), a non -charter, optional code Washington municipal corporation, and SOUTH CENTER WA, LLC, a Washington limited liability company ("Developer"). I. RECITALS WHEREAS, the City of Tukwila and South Center WA, LLC entered into a Development Agreement for the 223 Andover Park East Development effective the 19th day of March, 2013, and approved by Ordinance No. 2399; and WHEREAS, the City of Tukwila and South Center WA, LLC entered into the First Amendment to the Development Agreement for the 223 Andover Park East Development effective the 19th day of May 2014 and approved by Ordinance No. 2438; and WHEREAS, the City of Tukwila and South Center WA, LLC entered into the Second Amendment to the Development Agreement for the 223 Andover Park East Development effective the 24th day of November 2015 and approved by Ordinance No. 2490; and WHEREAS, Developer has completed construction of the project and received a certificate of occupancy; and WHEREAS, the First Amendment to the Development Agreement stipulated a maximum of two wall signs with a maximum area of 500 square feet each which have been approved by the City and installed on the building; and WHEREAS, Developer has requested another amendment to the development standards provisions listed under section 4.2 of the Development Agreement in order to add additional signage to the structure; and WHEREAS, the project is a pioneer in the effort to establish the Southcenter District as a residential neighborhood and advertising the availability of apartments will help to realize that goal; and 1 15 WHEREAS, due to the benefits as described in the Development Agreement the City desires the proposed development to proceed; and WHEREAS, as required pursuant to TMC 18.86.050 the City conducted a public hearing on the 25th day of March 2019 to take testimony regarding this Third Amendment to the Development Agreement; and WHEREAS, the City Council, pursuant to City Ordinance No. approved this Third Amendment to the Development Agreement as proposed and authorized execution of this Third Amendment to the Development Agreement; and WHEREAS, the Parties desire to enter into this Third Amendment to the Development Agreement upon the terms and conditions as set forth herein, NOW, THEREFORE, in consideration of the mutual promises set forth herein and the long-term benefit to both the City and the Developer, the Parties hereby agree as follows: II. AGREEMENT 1. Signage: Section 4.2 of the Development Agreement is hereby amended to add XX wall signs to the previous sign allowance. Additional wall signs): • May be up to XX square feet; and 121 May (not) extend above the parapets of the walls on which they are attached; and • Are limited to the copy "XX"; and • Must be removed within XX years of the effective date of this Amendment. tl Removal to be guaranteed by a bond or cash assignment of $50,000 to be received by the City prior to issuance of the sign permits. The remaining requirements of Section 4.2 remain in full force and effect. 2. This Third Amendment shall be recorded against the Property as a covenant running with the land. 3. Except as amended herein, the terms and provisions of the Development Agreement remain in full force and effect. 2 16 IN WITNESS WHEREOF, the parties have caused this Third Amendment to be executed, effective on the day and year set forth on the first page hereof. CITY OF TUKWILA, a Washington municipal corporation By: Allan Ekberg Its: Mayor Date: ATTEST/AUTHENTICATED: APPROVED AS TO FORM: Christy O'Flaherty, MMC, City Clerk City Attorney SOUTH CENTER WA, LLC, a Washington limited liability company By: Omar Lee Its: Manager Date: 3 17 STATE OF WASHINGTON } )ss COUNTY OF On , 20 , before me, the undersigned, a Notary Public, personally appeared ALLAN EKBERG, personally known to me (or proved to me on the basis of satisfactory evidence) as the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same in his authorized capacity as MAYOR OF THE CITY OF TUKWILA, and that by his signature on the instrument the entity upon behalf of which he acted, executed the instrument. WITNESS my hand and official seal. Print Name: NOTARY PUBLIC in and for the State of Washington, residing at My commission expires: STATE OF WASHINGTON 7 }ss COUNTY OF On , 20 , before me, the undersigned, a Notary Public, personally appeared OMAR LEE, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same in his authorized capacity, as MANAGER OF SOUTH CENTER WA, LLC, and that by his signature on the instrument the entity upon behalf of which he acted, executed the instrument. WITNESS my hand and official seal. Print Name: NOTARY PUBLIC in and for the State of Washington, residing at My commission expires: 4 18 City of Tukwila City Council Community Development & Neighborhoods Committee COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE Meeting Minutes February 12, 2019 _ 5:30 p.m. - Hazelnut Conference Room, City Han Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Verna Seal Staff: Nora Gierloff, Ryan Larsen, Brandon Miles, Laurel Humphrey Guests: Christine Lee, Omar Lee, Caleb Lee CALL TO ORDER: Chair Quinn called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Lodging Tax Funding Agreement: Museum of Flight Staff is seeking Council approval of an agreement with the Museum of Flight for $100,000 in lodging tax funding. Funds will be used to support marketing and events for the Smithsonian's 2019 traveling exhibit, "Destination Moon - The Apollo 11 Mission." The City's Lodging Tax Advisory Committee and City Council have already approved the application, but the contract must be approved in a separate step as it is over the $40,000 Administration signing authority. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 19, 2019 REGULAR CONSENT AGENDA. B. Request for Development Agreement Amendment -Airmark Apartments The owners of the Airmark Apartments/Hotel Interurban at 223 and 229 Andover Park East have requested a third amendment to their development agreement to allow additional signage to better promote the apartment Living opportunity in the building. The proposed signage is twice the size of the signs approved in the existing development agreement, over six times Larger than allowed in the code, and would be placed above the top of the building parapet, which is also not permitted in the current sign code. Planning staff met with the owners to come up with solutions as outlined in the memo. Economic Development staff are also offering marketing and promotion support. Committee members discussed the request and acknowledged that the sign code did not anticipate high rise buildings in the urban center and so advocated finding a solution in this case. The Committee directed staff to return with additional options regarding a temporary sign provision in the development agreement. RETURN TO COMMITTEE. 19