HomeMy WebLinkAboutCOW 2019-03-25 Item 4A - Ordinance - Amendment to Airmark Apartments / Hotel Interurban Development AgreementCOUNCIL AGENDA SYNOPSIS
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Meeting Date
Prepared by
M or's review
Council re
03/25/19
NG
/4.9- 14
04/01/19
NG
ITE
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ATION
ITEM No.
3 & 4.A.
SPAN, SPONSOR: NORA GIERLOFF
ORIGINAL AGI.NDA DA'rE: 03/25/19
AGENDA 1.'1E1\1 TITLE Third
Amendment
to the Development Agreement with Southcenter WA LLC
C 1 TEGORY ri araoizon
3/25/19
II Matson
Altg Date
0 ResautIon
Altg Date
12. Ordznance
E Bed Award
!trig Date
8 Public Hearing
E Other
illtg Date
Alts Date
Mtg Date 4/1/19
Mt& Date 3/25/19
SPONSOR Council flUa3ol EIHR IA DCD 'Inane nre NTS
EIP&R EPolzoe PI Court
SP ONS0 le S The owners of the Airmark Apartments/Hotel Interurban have requested an amendment to
SUMMARY their existing development agreement to allow installation of two additional 1,000 square
foot wall signs to aid in marketing the Airmark Apartments.
REVIEW El) BY
C.O.W.
Mtg
I1
CDN Comm
Ej Finance Comm, E Public Safety Comm.
[1] Parks Comm. E Planning Comm.
COMMITTEE CHAIR: QUINN
E] Trans &Infrastructure
DATE: 2/12/19,
Arts Comm.
3/12/19
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMNIrlIEE
Department of Community Development
Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
Expi.NDI1URE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$0 $ $
Fund Source:
Comments.
MTG. DATE
RECORD OF COUNCIL ACTION
3/25/19
MTG. DATE
ATTACHMENTS
3/25/19
Informational Memorandum dated 3/25/19
A. Request o Additional Signage
B. Existing Signage Design and Location
C. Ordinance and Development Agreement in Draft Form
Minutes from Community Development and Neighborhoods Committee meeting 2/12 19
Minutes from Community Development and Neighborhoods Committee meeting 3 2/19
4/1/19
1
2
Allan Ekberg, Mayor
FOR ATUO AD E ORA DU
TO: Committee ofthe Whole
FROM: Jack Pace, 0CQDirector
BY: Nora Gier|offDeputy 0C0Director
[C: Mayor Ekberg
DATE: March 25,2O19
SUBJECT: A^irrnarkApartments Development Agreement Revision Request
ISSUE
The owners ofthe AjrnnarkApartments/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 229 and 239 Andover Park East. The existing DA allows the following sign code
departures:
7\Canopy edge signs that are 3.5feet high ratherthanlfoot and
2) Two wall signs that are 500 square feet each rather than the 150 square foot limit in
commercial zones.
This request is for another change to the development standards section of the DA to allow
installation oftwo additional l,0O0square foot wall signs to increase the visibility ofthe
Airmark Apartments, see Attachment A. Currently the Airmark's only signage is a canopy sign
over the entry door while Hotel Interurban is advertised on wall and canopy signs, see
AttachrnentB.
Staff met with the owners several times and discussed avariety of different sign options aswell
as marketing and promotion assistance before bringing the issue to Committee. The
Community Development and Parks Committee discussed the request at their 2/12/19 meeting
and asked staff to return with options for possible amendments to the DA. At their 3/12/19
meeting they selected from the choices and sent their recommendation to the full Council for a
public hearing.
DISCUSSION
The City would like 10support its businesses sothat they can beassuccessful aspossible. Atthe
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.
The size and type of signs requested are substantially different than what is permitted under
the sign code. However, the current sign code was written with afocus onvisibility from
adjacent streets and does not have provisions for high rise buildings unlike some nearby cities.
INFORMATIONAL MEMO
Page 2
The Airmark owners have said that legibility of the proposed apartment signsfronn5outhcenter
Mall and |-5iskey todeveloping public awareness ofthe SouthognterDistrict a5aresidential
neighborhood and leasing their apartments.
The existing DAhas granted the project considerab|eflexbiktvondeve|opnlentstandardssuch
asheight, parking and open space inaddition to s|gnage.The most recent request would bea
significant policy departure for the City and likely lead to requests from other businesses for
similar signage. For that reason the Committee recommended a 5 year time limit on the signs,
at which point they would be required to be removed unless the Council determines that there
isanongoing need given the state ofthe residential rental market.
The following options have been incorporated into the draft DA in Attachment C:
Number of New Wall
Signs
2
Existing Hotel Interurban signs would
remain in place
Size otSigns
l,DOOSFeach
The west elevation would have atota| of
I,SOO5Fofs|gnageincluding the existing
Hotel Interurban sign
Location
Above the parapet
The proposal istohave the "Airrnark"
portion extend above the top ofthe wall
Time Limit
5 years
Allow while the apartments are leasing up
and 5outhcenterisestablishing asa
residential area, then reevaluate orremove
Performance
Guarantee
$30,000
Require afinancial guarantee toensure
removal atthe expiration Ofthe term
Copy Limitation
Yes
Limit sign copy to ''Ai[nOarkApgrtrnents"
RECOMMENDATION
Committee moved this item forward to the March 25, 2019 Committee of the Whole meeting
fora public hearing.
ATTACHMENTS
A. Request for Additional 5ignagethrough DAAmendment
B. ExistingAjmnork/Hote| Interurban SignageDesign and Location
C. Draft OAAmendment and Adopting Ordinance
W:\2U9Info memos�Airmark2PQA Amend COW 3-254gdocx
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 inthe City ufTukwila. This project has been well received bythe 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 ussince ZDl2. Vyeneed your continue support with the success nfthis project.
When we first design this project, we admit we had put way too much attention to the hotel section.
Being aseasonal developer for residential projects, vvedid make omistake bynotemphasbethesignage
for residential portion. Totally neglected the unique situation we have at this location which has no
residential ever existed. For anormal residential project, vvedonot need toput more than just a
building awning type ofsign. However, with this project, wefinally 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 1s25^S5&. With our project, wehave 0% since January 2Ol7. People simply Uonot know
the residential portion within the project exists, they believe thewhole building isa hotel.
VVeare requesting anamendment toour Development Agreement. VVewant toinstall Zadditional
building signs each with 1O8Osquare feet for the residential area. VVehave attached 'the proposed sign
elevations.
yVeunderstand the City has sign code. However, webelieve the code was established without
consideration ofhi-rise buildings. VVithhi'hoe, the size ofthe sign iocritical. 1tismeaningless ifpeople
onthe street level cannot read. Vyeappreciate your consideration for our request. Again, this isa
critical decision which leads the fate ofthis project. Thank you very much for your time.
Best Regards,
Christine Lee
AttachmentA
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Proposed sign on West Elevation
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Attachment B
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RECEIVE
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APPROVED
2'; -N2
Front View
Sc,t22 112' 8 V-0'
Sign
Fabricate and install: (1)
exterior single faced
illuminated Pushed thru
acrylic lettering sign.
1344
Cabmet to be an extruded alernmum
cons(ruction PaIntecl Light Grey 10 match
PfsISt; (cuter TED) (satin Sivirrir,
O ARMARK APARTMENTS' lettociroand
ScoreImes Ic ho routed out at aluncnur,
face with Acryllm Dear lotto, step
routed pushed thru aluminum Oce, letter
edge, to be sanded trotted edge, Faces
ci letttms tot p.,) first surfacc applmd
opaque 3M Scotchcal vinyl- Motto Block
03650-22. Back with e 331,30 of Pansloc,Pt
Polycarbonato
• Backlit :lleinination Of letter:no to be LED s
white 5100k Power iupplies to be
mounted or ten cabinet. Power spin by
others.
• Nousi kabine.r flush tu face of canopy oph
DO) sD8 toggle bolts or (10) 3/8" rap
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APARTMENTS
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RECEIVED
AtJ6 17 2017
13
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!— ALUMINUM STORE
FRONT SYSTEM
0 Plan View
View
obit Staten Sno :tye :4 SB
Front View- Porte Cochere
Sign 2
Fabricate and install: (1) exterior single
faced illuminated pan channel lettering
sign.
0 "kOl a Ire` CCL) tarn' lctr't Inn to cc r+an Chennei
alai nynt constrt,chcn, yctrrea Cpatco.,, tc> notch
9,934 fray!, .c trim c 3'J tc Ira ti!,tc�
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by U_ttcr, bitriunt c)livintr.II I: -tint' to , _„canopy
_c,'f; +l�cn at n 'Slrav_t. C_ n
,i ;t ; rt.r
n View
_--HOTEL INTERURBAN
- Porte Cochere Elevation
• 0
Attachment C
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, RELATING TO DEVELOPMENT
AGREEMENTS AUTHORIZED PURSUANT TO CHAPTER
18.86 OF THE TUKWILA MUNICIPAL CODE; APPROVING
AND 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;
AND 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 Ordinance No. 2399 on March 18, 2013); 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
on 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 Ordinance 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 Development\223 APE DA-Third Amendment 3-4-19
NG:bjs Review and analysis by Barbara Saxton Page 1 of 2
11
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 Development\223 APE DA-Third Amendment 3-4-19
NG:bjs Review and analysis by Barbara Saxton Page 2 of 2
12
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
and
WHEREAS, as a mixed -use high rise the building has unique signage needs;
1
13
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
WHEREAS, the additional signs are justified for a five-year period during the
development of a critical mass of residential buildings in the Southcenter Area and
the lease up of the project's apartments; and
WHEREAS, at the expiration of the five-year period the Developer must
remove the signage or ask the City to reconsider and extend its use, and
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
Signage: Section 4.2 of the Development Agreement is hereby
amended to add 2 wall signs to the previous sign allowance.
Additional wall signs:
gj May be up to 1,000 square feet each; and
121 May extend above the parapets of the walls on which they are
attached; and
21 Are limited to the copy "Airmark Apartments"; and
211 Must be removed within 5 years of the effective date of this
Amendment.
pl Removal to be guaranteed by a bond or cash assignment of
$30,000 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
14
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.
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
15
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 )
)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
16
04,4A
Ar"
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 Hall
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 largerthan
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.
17
City of Tukwila
City Council Community Development & Neighborhoods Committee
COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE
Meeting Minutes
March 12, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Verna Seal
Staff: David Cline, Jack Pace, Nora Gierloff, 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: Starfire Sports
Staff is seeking Council approval of an agreement with Starfire Sports $44,500 in lodging tax
funding to be used to support Starfire's tournament schedule 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 MARCH 18, 2019 REGULAR CONSENT AGENDA.
B. 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 Eargerthan
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. On February 12, the Committee directed staff to return
with additional options including a temporary sign provision in the development agreement.
Staff presented several options for Committee consideration relating to number of signs, size,
location, time limit, and copy. Staff recommends requiring a performance bond if the sign is to
be time limited. Committee members discussed the options and decided to recommend
allowing two additional signs up to 1000 sf, time limited to 5 years after which they would be
reevaluated. They acknowledged staff's concern about setting a precedent but agreed that this
is a unique situation that can be handled with the development agreement process.
Councilmember Seal noted that the sign code needs to be re-evaluated as more high-rises
develop. Councilmember Robertson requested that the DA language be more specific about
what happens after 5 years. Chair Quinn asked that the DA include language about the
uniqueness of the development as another strategy to address precedent -setting concerns.
UNANIMOUS APPROVAL. FORWARD TO MARCH 25, 2019 COMMITTEE OF THE WHOLE.
18