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HomeMy WebLinkAboutPermit PL14-0037 - TUKWILA TSD LLC - HOLIDAY INN POCKET PARK DEVELOPMENT AGREEMENTPOCKET PARK (SOUTHCENTER HOTEL) 90 ANDOVER PK E PL14-0037 L14-0064 DEVELOPMENT AGREEMENT Return Address: CITY CLERK CITY OF TUKWILA 6200 Southcenter Blvd. Tukwila, WA 98188 1111111111 111110 111111 11 20150528000665 CITY OF TUKWIL ORD 92.00 PAGE -001 OF 021 05/28/2015 11:47 KING COUNTY, WA 1 11 Please print or type information WASHINGTON STATE RECORDER'S Cover Sheet (RCW 65.04 Document Title(s) (or transactions contained therein): (all areas applicable to your document must be filled in) 1. City of Tukwila Ordinance 2473 2. 3. 4. Reference Number(s) of Documents assigned or released: Additional reference #'s on page of document Grantor(s) Exactly as name(s) appear on document I. City of Tukwila 2. , Additional names on page of document. Grantee(s) Exactly as name(s) appear on document 1 Tukwila TSD, LLC , 2. , Additional names on page of document. Legal description (abbreviated: i.e. lot, block, plat or section, township, range) Ptn Tract 4, Andover Industrial Park No. 1, Tess S. 28 feet less ST HWY, Vol 66, pg. 36 - (a.k.a.) A portion of the SE 1/4 of the SE 1/4, Sec. 23, T.23N.,R.4E., W.M. Additional legal is on page 13-17 of document. Assessor's Property Tax Parcel/Account Number ❑ Assessor Tax # not yet assigned 0223000040 The Auditor/Recorder will rely on the information provided on this form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. "1 am signing below and paying an additional $50 recording fee (as provided in RCW 36.18.010 and referred to as an emergency nonstandard document), because this document does not meet margin and formatting requirements. Furthermore, 1 hereby understand that the recording process may cover up or otherwise obscure some part of the text of the original document as a result of this request." Signature of Requesting Party Note to submitter: Do not sign above nor pay additional $50 fee if the document meets margin/formatting requirements City of Tukwila Washington Ordinance No. a9 g AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, APPROVING AND AUTHORIZING THE DEVELOPMENT AGREEMENT WITH TUKWILA TSD, LLC, FOR THE SHARED USE OF PARKING IN THE PUBLIC RIGHT-OF-WAY OF CHRISTENSEN ROAD AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST; 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, Tukwila TSD, LLC, desires to build a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, Tukwila TSD, LLC, proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, Tukwila TSD, LLC, also proposes to construct additional parking in the right-of-way, provide monetary compensation to the City for the shared use of parking, and maintain parking in the public right-of-way for the term of the agreement; and WHEREAS, the City of Tukwila and Tukwila TSD, LLC, wish to enter into a Development Agreement for the shared use of parking in the public right-of-way of Christensen Road as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A; and WHEREAS, as required pursuant to Tukwila Municipal Code Section 18.86.050, a public hearing was conducted on the 24th day of November 2014 to take public testimony regarding this Development Agreement, as proposed; and W: Word Processing\Ordinances\DA-Shared use of parking at 90 APE DA 2-27-15 MD:bjs Page 1 of 2 WHEREAS, the City Council finds that the terms of this Development Agreement are necessary to achieve public benefits, to respond to changing community needs and to encourage modifications that adequately achieve the purposes of otherwise applicable City standards; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Development Agreement. The Development Agreement by and between the City of Tukwila and Tukwila TSD, LLC, for the use of shared parking in the public right-of-way of Christensen Road as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A, is hereby approved, and the Mayor is authorized and directed to execute said 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 j T» day of Yrs o.'c Vj , 2015. ATTEST/AUTHENTICATED: D Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: J211 - Rachel B. Turpin, City Attorney Hagge!J'� ayor Exhibit A — Development Agreement Filed with the City Clerk: 3.-I 1-15 Passed by the City Council: G Published: —t G1-� Effective Date: � - Ordinance Number: 2- 4-1 3 W: Word Processing\Ordinances\DA-Shared use of parking at 90 APE DA 2-27-15 MD:bjs Page 2 of 2 15-100 Council Approval 3116115 DEVELOPMENT AGREEMENT Ordinance No. 2473 BY AND BETWEEN THE CITY OF TUKWILA AND TUKWILA TSD LLC, FOR THE SHARED USE OF PARKING IN THE RIGHT-OF-WAY OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST L PREAMBLE 1f THIS DEVELOPMENT AGREEMENT is made and entered into this /0 day of rn , 2015, by and between the City of Tukwila, a noncharter, optional code Washington unicipal corporation, hereinafter the "City," and Tukwila TSD LLC, an S corporation, organized under the laws of the State of Washington, hereinafter the "Developer." II. RECITALS WHEREAS, the Developer desires to develop a new five -story hotel at 90 Andover Park East with 92 guest rooms; and WHEREAS, one parking space per guest room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District; and WHEREAS, the Developer has submitted a site plan showing the required number of parking stalls for the hotel cannot be accommodated as surface parking on the project site; and WHEREAS, the Developer proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, the City of Tukwila is the owner of the Christensen Road right-of-way, which includes undeveloped area adjacent to the project's eastern property line, paved street, parking, and cul-de-sac areas; and WHEREAS, the parking area in the right-of-way of Christensen Road is currently used by members of the public for access to the Green River Trail, shoreline, and parks areas; and WHEREAS, hotel parking spaces are expected to be used primarily in the evening and nighttime hours; parking spaces for trail, shoreline, and parks access are expected to be used during daylight hours; and WHEREAS, the Developer proposes to add parking spaces within the undeveloped right-of- way area adjacent to the hotel site and to reconfigure existing spaces to increase the number of parking spaces that would be shared for hotel use and the public for access to the Green River Trail; and I Si- J a Z,YiSi(12s�--, 1 WHEREAS, all parking spaces within the right-of-way area will be shared and at least four spaces will be designated for non -hotel users to ensure access to the Green River Trail for members of the public; and WHEREAS, the Developer proposes to maintain the parking area within the right-of-way as outlined in Exhibit 2 for the length of this agreement; and WHEREAS, the vision for parking areas within the Transit Oriented Development (TOD) Neighborhood in the Southcenter Subarea Plan is that "parking will be accommodated by a combination of off- and on -street parking spaces/lots" and shared parking facilities. "Such facilities can be shared between public and private uses" (p. 19); and WHEREAS, the Developer proposes to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail; and WHEREAS, implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan include "Seek opportunities for public/private partnerships;" and WHEREAS, a through -way from Andover Park East to Christensen Road will be constructed as part of the project to replace the emergency vehicle maneuvering function of the cul-de-sac; and WHEREAS, uses that provide public access are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan and the proposed development furthers this goal; and WHEREAS, the Washington State Legislature has authorized the execution of a development agreement between a local government and a person having ownership or control of real property within its jurisdiction (RCW 36.70B.170(1)); and WHEREAS, a development agreement must set forth the development standards and other provisions that shall apply to, govern and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement (RCW 36.70B.170(1)); and WHEREAS, for the purposes of this development agreement, "development standards" includes, but is not limited to, all of the standards listed in RCW 36.70B.170(3); and WHEREAS, a development agreement must be consistent with the applicable development regulations adopted by a local government planning under chapter 36.70A RCW (RCW 36.70B.170(1)); and 2 WHEREAS, Tukwila Municipal Code Section 18.86.030 explicitly allows for flexibility in development standards applicable to a property developed under a development agreement "to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards"; and WHEREAS, this Development Agreement by and between the City of Tukwila and the Developer (hereinafter the "Development Agreement"), relates to the development known as the 90 Andover Park East Hotel, which is Located at: 90 Andover Park East (hereinafter the "Subject Property"); and WHEREAS, a development agreement must be approved by ordinance or resolution after a public hearing (RCW 36.70B.200); and WHEREAS, a public hearing for this Development Agreement was held on November 24, 2014, and the City Council approved this Development Agreement by Ordinance No. 2473 on March 16, 2015; and NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows: HI. AGREEMENT Section 1. The Project. The Project is the development and use of the Subject Property, located at 90 Andover Park East in the City of Tukwila and a portion of Christensen Road right-of- way for a 92 -room 5 -story hotel and 45 shared parking spaces on Christensen Road right-of-way, as shown on Exhibit 2. Section 2. The Subject Property. The Subject Property and right-of-way are legally described in Exhibit 1, attached hereto and incorporated herein by this reference. Section 3. Definitions. As used in this Development Agreement, the following terms, phrases and words shall have the meanings and be interpreted as set forth in this Section. a) "Adopting Ordinance" means the Ordinance which approves this Development Agreement, as required by RCW 36.70B.200. b) "Council" means the duly elected legislative body governing the City of Tukwila. c) "Design Guidelines" means the Tukwila Design Manual, as adopted by the City. d) "Director" means the City's Community Development Director. e) "Effective Date" means the effective date of the Adopting Ordinance. 3 1) "Existing Land Use Regulations" means the ordinances adopted by the City Council of Tukwila in effect on the Effective Date, including the adopting ordinances that govern the permitted uses of land, the density and intensity of use, and the design, improvement, construction standards and specifications applicable to the development of the Subject Property, including, but not limited to the Comprehensive Plan, the City's Official Zoning Map and development standards, the Design Manual, the Public Works Standards, SEPA, Concurrency Ordinance, and all other ordinances, codes, rules and regulations of the City establishing subdivision standards, park regulations, building standards. "Existing Land Use Regulations" does not include non -land use regulations, which includes taxes and impact fees. g) "Landowner" is the party who has acquired any portion of the Subject Property from the Developer who, unless otherwise released as provided in this Agreement, shall be subject to the applicable provisions of this Agreement. The "Developer" is identified in Section 5 of this Agreement. h) "Project" means the anticipated development of the Subject Property, as specified in Section 1 and as provided for in all associated permits/approvals, and all incorporated exhibits. i) "Vesting date" means the date a valid and fully complete building permit application for the hotel is submitted to the City of Tukwila. Section 4. Exhibits. Exhibits to this Agreement are as follows: A. Exhibit 1 - Legal description of the Subject Property and the right-of-way. B. Exhibit 2 - Conceptual Site Plan Section 5. Parties to Development Agreement. The parties to this Agreement are: A. The "City" is the City of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188. B. The "Developer" or Owner is a private enterprise which owns the Subject Property in fee, and whose principal office is located at 21109 66th Avenue South, Kent, WA 98032. C. The "Landowner." From time to time, as provided in this Agreement, the Developer may sell or otherwise lawfully dispose of a portion of the Subject Property to a Landowner who, unless otherwise released, shall be subject to the applicable provisions of this Agreement related to such portion of the Subject Property. Section 6. Project is a Private Undertaking. It is agreed among the parties that the Project is a private development and that the City has no interest therein except as explicitly outlined in this Agreement and as authorized in the exercise of its governmental functions. 4 Section 7. Effective Date and Term. This Agreement shall commence upon the effective date of the Adopting Ordinance approving this Agreement, and shall continue in force for a period of 50 years, with the option to extend the Agreement an additional 30 years, unless extended or terminated as provided herein. Following the expiration of the term or extension thereof, or if sooner terminated, this Agreement shall have no force and effect, subject however, to post -termination obligations of the Developer or Landowner. Section 8. Terms. A. Design • The Project at 90 Andover Park East shall be allowed non-exclusive use rights for the parking spaces and drive aisle area of Christensen Road (as depicted in Exhibit 2) to meet minimum parking requirements for the development. This Agreement shall not preclude the City from entering into additional agreements regarding use of this area by other private parties. The Project will be subject to the development regulations in effect at the time of complete permit application submittals. • The site plan attached as Exhibit 2 is included with this Agreement for reference only, and has not yet been approved as of the date of execution of this Agreement. The site plan shall be subject to modifications during review of the required land use permits. • As a result of the cul-de-sac closure, public access through 90 Andover Park East is hereby allowed and provided for. • The Developer shall construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail. • All shared parking stalls will be constructed and maintained to Public Works Infrastructure Design and Construction Standards. • The Developer shall be responsible for making a payment of $93,849 to the City of Tukwila. This payment shall be made prior to the issuance of the building permit for the hotel. B. Construction • The cost of permits and plans required for construction of the parking area shall be borne by the Developer and submitted as part of the permits for the hotel. The parking in the right-of-way must receive final approval by all required City departments prior to issuance of the Certificate of Occupancy for the hotel. C. Maintenance • The parking area shall be subject to inspections every five years. • Developer is solely responsible for the cost and maintenance of the parking spaces. New striping of the parking spaces shall be completed every three years. 5 D. Operations • A total of 92 parking spaces are required for the 92 -room hotel as proposed. The site plan in Exhibit 2 includes 98 parking spaces. All parking spaces within the right-of-way of Christensen Road and the hotel parking lot shall be for the joint use of the hotel users and members of the public and at least four spaces shall be designated for non -hotel users to ensure access to the Green River Trail for members of the public. If the final design of the hotel is for less than 92 rooms, then any additional spaces after calculating one space per room plus two spaces shall be designated for non -hotel users. Section 9. Vested Rights. During the term of this Agreement, unless sooner terminated in accordance with the terms hereof, in developing the Subject Property consistent with the Project described herein, Developer is assured, and the City agrees, that the development rights, obligations, terms and conditions specified in this Agreement, are fully vested in the Developer and may not be changed or modified by the City, except as may be expressly permitted by, and in accordance with, the terms and conditions of this Agreement, including the Exhibits hereto, or as expressly consented thereto by the Developer. Section 10. Minor Modifications. Minor modifications from the approved permits or the exhibits attached hereto may be approved in accordance with the provisions of the City's code, and shall not require an amendment to this Agreement. Section 11. Further Discretionary Actions. Developer acknowledges that the Existing Land Use Regulations contemplate the exercise of further discretionary powers by the City. These powers include, but are not limited to, review of additional permit applications under Shoreline Substantial Development Permit and Design Review. Nothing in this Agreement shall be construed to limit the authority or the obligation of the City to hold legally required public hearings, or to limit the discretion of the City and any of its officers or officials in complying with or applying Existing Land Use Regulations. Section 12. Existing Land Use Fees and Impact Fees. A. Land use fees adopted by the City by ordinance as of the Effective Date of this Agreement may be increased by the City from time to time, and are applicable to permits and approvals for the Subject Property, as long as such fees apply to similar applications and projects in the City. B. All impact fees shall be paid .as set forth in the approved permit or approval, or as addressed in Chapters 16.26 and 9.48 of the Tukwila Municipal Code. IV. GENERAL PROVISIONS Section 1. Assignment of Interests, Rights, and Obligations. This Agreement shall be binding and inure to the benefit of the Parties. No Party may assign its rights under this Agreement without the written consent of the other Party, which consent shall not unreasonably be withheld. This Agreement shall be binding upon and shall inure to the benefit of the heirs, successors, and assigns of the Developer and the City. 6 Section 2. Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein. Section 3. Severability. The provisions of this Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity of its application to other persons or circumstances. Section 4. Termination. This Agreement shall expire and/or terminate as provided below: A. This Agreement shall expire and be of no further force and effect if the Developer fails to submit a complete building permit application for the construction of the hotel within one year, or if the Project construction is not completed within three years, of the effective date of this Agreement; or if at any time after Project construction is completed, Developer fails to maintain the parking areas according to the terms of this Agreement. Nothing in this Agreement shall extend the expiration date of any permit or approval issued by the City for any development. B. This Agreement shall expire and be of no further force and effect if the Developer does not construct the Project as contemplated by the permits and approvals identified in this Agreement, or submits applications for development of the Subject Property that are inconsistent with such permits and approvals. C. This Agreement shall terminate at such time as a change of use occurs at 90 Andover Park East, or at such time as 90 Andover Park East is redeveloped. D. This Agreement shall terminate in the event the Washington State Department of Transportation (WSDOT) widens Interstate 405 in the vicinity of the Subject Property, or should any other project or condition arise that requires reconfiguration of Tukwila Parkway and/or the Project parking area. E. This Agreement shall terminate upon the abandonment of the Project by the Developer. The Developer shall be deemed to have abandoned the Project if/when written notice is provided to the City that the Developer's interest in the Project has been terminated. Said notice shall be given to the City no more than 30 days after the Developer's interest in the Project is terminated. F. This Agreement may terminate pursuant to Section IV.,3, Severability, or Section IV.,10, Default, or as otherwise outlined in this Agreement. G. If the use will continue upon expiration of the term of this Agreement, the Developer shall either negotiate a new agreement with the City or provide documentation showing how the number of parking spaces required by the codes at the time of expiration will be provided. 7 Section 5. Effect upon Termination on Developer Obligations. Termination of this Agreement as to the Developer of the Subject Property or any portion thereof shall not affect any of the Developer's obligations to comply with the City Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or subdivision map or other land use entitlements approved with respect to the Subject Property, any other conditions of any other development specified in the Agreement to continue after the termination of this Agreement or obligations to pay assessments, liens, fees or taxes. Section 6. Effects upon Termination on City. Upon any termination of this Agreement as to the Developer of the Subject Property, or any portion thereof, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the property affected by such termination (provided that vesting of such entitlements, conditions or fees may then be established for such property pursuant to then existing planning and zoning laws). Section 7. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default hereof. Section 8. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. Venue for any action shall lie in King County Superior Court or the U.S. District Court for Western Washington. Section 9. Attorneys' Fees. In the event of any litigation or dispute resolution process between the Parties regarding an alleged breach of this Agreement, neither Party shall be entitled to any award of attorneys' fees. Section 10. Notice of Default/Opportunity to Cure/Dispute Resolution. A. In the event a Party, acting in good faith, believes the other Party has violated the terms of this Agreement, the aggrieved Party shall give the alleged offending Party written notice of the alleged violation by sending a detailed written statement of the alleged breach. The alleged offending Party shall have 30 days from receipt of written notice in which to cure the alleged breach unless the Parties agree, in writing, to additional time. This notice requirement is intended to facilitate a resolution by the Parties of any dispute prior to the initiation of litigation. Upon providing notice of an alleged breach, the Parties agree to meet and agree upon a process for attempting to resolve any dispute arising out of this Agreement. A lawsuit to enforce the terms of this Agreement shall not be filed until the latter of (a) the end of the cure period, or (b) the conclusion of any dispute resolution process. B. After notice and expiration of the ,30 -day period or other time period as agreed to by the Parties, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other party or Landowner to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. In addition, the City may decide to file an action to enforce 8 the City's Codes, and to obtain penalties and costs as provided in the Tukwila Municipal Code for violations of this Development Agreement and the Code. Section 11. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and is not intended to benefit any other person or entity, and no person or entity not a signatory to this Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No other person or entity not a Party to this Agreement may enforce the terms and provisions of this Agreement. Section 12. integration. This Agreement and its exhibits represent the entire agreement of the parties with respect to the subject matter hereof. There are not other agreements, oral or written, except as expressly set forth herein. Section 13. Authority. The Parties each represent and warrant that they have full power and actual authority to enter into this Agreement and to carry out all actions required of them by this Agreement. All persons are executing this Agreement in their representative capacities and represent and warrant that they have full power and authority to bind their respective organizations. Section 14. Covenants Running with the Land. The conditions and covenants set forth in this Agreement and incorporated herein by the Exhibits shall run with the land and the benefits and burdens shall bind and inure to the benefit of the parties. The Developer, Landowner and every purchaser, assignee or transferee of an interest in the Subject Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Subject Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of a Developer contained in this Agreement, as such duties and obligations pertain to the portion of the Subject Property sold, assigned or transferred to it. Section 15. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be amended by mutual consent of all of the parties, provided that any such amendment shall follow the process established by law for the adoption of a development agreement (see RCW 36.70B.200). However, nothing in this Agreement shall prevent the City Council from making any amendment to its Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations affecting the Subject Property as the City Council may deem necessary to the extent required by a serious threat to public health and safety. Nothing in this Development Agreement shall prevent the City Council from making any amendments of any type to the Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations relating to the Subject Property. Section 16. Releases. Developer, and any subsequent Landowner, may free itself from further obligations relating to the sold, assigned, or transferred property, provided that the buyer, assignee or transferee expressly assumes the obligations under this Agreement as provided herein. 9 Section 17. Notices. Notices, demands, correspondence to the City and Developer shall be sufficiently given if dispatched by pre -paid first-class mail to the addresses of the parties as designated under III Agreement, Section 5 Parties to Development Agreement. Notice to the City shall be to the attention of both the Mayor's Office and the City Attorney. Notices to subsequent Landowners shall be required to be given by the City only for those Landowners who have given the City written notice of their address for such notice. The parties hereto may, from time to time, advise the other of new addresses for such notices, demands or correspondence. Section 18. Reimbursement for Agreement Expenses of the City. Developer agrees to reimburse the City for actual expenses incurred over and above fees paid by Developer as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees and reasonable staff and consultant costs not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section, as well as any processing fees owed to the City for the Project, are paid to the City. This Agreement shall be terminated if the Developer does not pay to the City the fees provided for in this section. Upon payment of all expenses, the Developer may request written acknowledgement of all fees. Such payment of all fees shall be paid, at the latest, within 30 days from the City's presentation of a written statement of charges to the Developer Section 19. Police Power. Nothing in this Agreement shall be construed to diminish, restrict or limit the police powers of the City granted by the Washington State Constitution or by general law. Section 20. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party or a Landowner to challenge this Agreement or any provision herein, the City and Developer will collaborate to resolve such legal action. In the event such legal action cannot be resolved, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to Developer and/or Landowner(s). In such event, Developer and/or such Landowners shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to, attorneys' fees and expenses of litigation, and damages awarded to the prevailing party or parties in such litigation. Neither the City nor the Developer and/or Landowner shall settle any lawsuit without the consent of the other. The City and Developer/Landowner shall act in good faith and shall not unreasonably withhold consent to settle. Section 21. No Presumption Against Drafter. This Agreement has been reviewed and revised by legal counsel for both Parties and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreement. Section 22. Headings. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this Agreement. Section 23. Recording. Developer shall record an executed copy of this Agreement with the King County Auditor, pursuant to RCW 36.70B.190, no later than 14 days after the Effective Date. 10 Section 24. Legal Representation. In entering into this Agreement, Developer represents that it has been advised to seek legal advice and counsel from its attorney concerning the legal consequences of this Agreement; that it has carefully read the foregoing Agreement and knows the contents thereof, and signs the same of its own free act; and that it fully understands and voluntarily accepts the terms and conditions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the dates set forth below: APPROVED AS TO FORM: By c C14.A, (5,17 City Attorney Tukwila TSD LLC 21109 66th Avenue South Kent WA 98032 11 STATE OF WASHINGTON ) COUNTY OF ti n C ) SS. On this S'^ day of MoAj , 2015, before me personally appeared DAV%d CV -1n1A1,‘ Y._V O_ , to me known to be the individual that executed the within and foregoing instrument, and acknowledged the said instrument to be his/her free and voluntary act and deed for the uses and purposes therein nt'oned a . on oath stated that he/she is authorized to execute said instrument. 1,4; '‘'''v li ,►4 Notary Public State of Washington LESLIE N MENDEZ MY COMMISSION EXPIRES May 02, 2018 STATE OF WASHINGTON ) ) ss. COUNTY OF _ ) Print name: 1gs\ce-Mevae�- NOTARY PUBLIC in and for the State of Washington Residing at k12IA\' I kj Commission expires: 1-A01 _ 2-01'' T� day of 01 CA - appeared - appeared JIM HAGGERTON, and said person acknowledgYI that he signed this instrument, on oath , 2015, before me personally stated that he was authorized to execute the instrument, and acknowledged as the MAYOR OF THE CITY OF TUKWILA to be the free and voluntary act of said party for the uses and purposes mentioned in this instrument. On this �+irc}OT i s S �► i� {/8 LIG VOCI 14 4 :it: itAt 104P NOTARY PUBLIC in and for the State of Washington Residing at _ v r,00,40, ti)A -Tit Commission expires: Exhibit 1- Legal description of the Subject Property and the right-of-way. Exhibit 2 - Conceptual Site Plan 12 EXHIBIT 1 NOVEMBER 18, 2014 PROJECT NO. 06007 EXHIBIT 1-A LEGAL DESCRIPTION OF PROPERTY TRACT 4, ANDOVER INDUSTRIAL. PARK NO. 1, ACCORDING TQlTiE PLAT THEREOF RECORDED IN VOLUME 66 OF PLATS, PAGE 36, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THE SOUTH 28 FEET THEREOF; AND EXCEPT THAT PORTION THEREOF CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NO. 592245, ACCORDING TO DECREE FILED JANUARY 14, 1963. EXHIBIT 1-B LEGAL DESCRIPTION PARKING EASEMENT NOVEMBER 18, 2014 PROJECT NO. 06007 AN EASEMENT FOR VEHICULAR PARKING PURPOSES OVER, ACROSS AND UPON THE RIGHT-OF-WAY OF CHRISTENSEN ROAD, BEING LOCATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 23, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF ANDOVER PARK EAST WITH THE CENTERLINE OF TUKWILA PARKWAY AS MARKED BY A CONCRETE MONUMENT; THENCE NORTH 84°44'00" EAST ALONG THE CENTERLINE OF TUKWILA PARKWAY 231.72 FEET; THENCE SOUTH 05°16'00" EAST 40.00 FEET TO THE POINT OF INTERSECTION OF THE SOUTH MARGIN OF TUKWILA PARKWAY WITH THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE SOUTHERLY ALONG SAID WEST MARGIN ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 00°13'45", THE CENTER OF WHICH BEARS SOUTH 80°38'25. WEST, AN ARC DISTANCE OF 1.75 FEET TO THE TRUE POINT OF BEGINNING; THENCE EASTERLY. ON A CURVE TO THE LEFT, HAVING A RADIUS OF 35.00 FEET, A CENTRAL ANGLE OF 28°38'13" EAST, THE CENTER OF WHICH BEARS NORTH 23°22'13 EAST, AN ARC DISTANCE OF 17.49 FEET TO A POINT OF TANGENCY; THENCE NORTH 84°44'00" EAST 46.59 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; THENCE. SOUTHERLY AND EASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 16.94 FEET, A CENTRAL ANGLE OF 73°30'10', THE CENTER OF WHICH BEARS NORTH 87°22'15" EAST, AN ARC DISTANCE OF 21.74 FEET TO A POINT OF REVERSE CURVATURE; THENCE EASTERLY AND SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 2.50 FEET, A CENTRAL ANGLE OF 72°45'37", THE CENTER OF WHICH BEARS SOUTH 13°52'05" WEST, AN ARC DISTANCE OF 3.17 FEET TO A POINT OF COMPOUND CURVATURE; THENCE SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 1547.72 FEET, A CENTRAL ANGLE OF 09°37'47, THE CENTER OF WHICH BEARS SOUTH 86°37'42" WEST, AN ARC DISTANCE OF 260.13 FEET; THENCE NORTH 84°06'43" WEST 43.00 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; PAGE 1 (PARKING EASEMENT CONTINUED) THENCE NORTHERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 1504.72 FEET, A CENTRAL ANGLE OF 01°05'52", THE CENTER OF WHICH BEARS NORTH 83°43'52" WEST, AN ARC DISTANCE OF 28.83 FEET TO A POINT OF COMPOUND CURVATURE; THENCE NORTHERLY AND WESTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 93°47'54, THE CENTER OF WHICH BEARS NORTH 84°49'45" WEST, AN ARC DISTANCE OF 40.93 FEET TO THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE NORTH 00°45'11" WEST ALONG SAID WEST MARGIN 152.13 FEET TO THE BEGINNING OF A TANGENT CURVE TO THE LEFT; THENCE CONTINUING NORTH ALONG SAID WEST MARGIN ON A CURVE TO THE LEFT, HAVING A 'RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 08°22'39", THE CENTER OF WHICH BEARS SOUTH 89°14'49" WEST, AN ARC DISTANCE OF 63.97 FEET TO THE TRUE POINT OF BEGINNING. SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. PAGE 2 4 30' ANDOVER PARK EAST rn 0 CV 0 0 z N 0012'09" W 30' EXHIBIT 1-C VEHICULAR PARKING EASEMENT AREA N _84'44)00"_ E - io 231.72 0�1 TIJKWILA PARKWAY o N. 84'44'00" .E R=437.50' R=50.00' A=08'36'24" A=84'56'09" L=65.72' L=74.12' 211.59'. N 89'47'51" E 1"=50' NOV. 2014 PROJECT NO. 06007 PAGE 1 OF 2 1 40' ji /11# I 11M HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CLINTON, WA 98236 425.822.7271 EXHIBIT 1-C CONT'D. VEHICULAR PARKING EASEMENT AREA 231.724,900.'1 3 Q rn C1 L-1 TPOB \ C") CURVE TABLE CURVE DELTA .: LENGTH RADIUS RADIAL BEARING. C1 073'45" 1.75' . '..;437.50' .' S 80'38'25"r.W C2 2818'13" 17.49' 35.00' ' : ;.N. 2322'13".: E :. C3 73'30'10', 21.74' .: :' 16.94',.':: N :87'22'15".':E .' C4 72'45'37" 3.1r . 2.50'. S' 13'52'05" W C5 . 917'47,". ,:::.:; 260.13'; :1547.72'. ° .; . S 86'37'42" . W C6 1'05'52" , : .:`28:83'; . 1504.72'.:. N 83'43'52" ;W C7 93'47'54".. 40:93'.:. ., .25:00' ..N 84.49'45" W C8 822'39".. 63.97'. ..437.50'._ S ,8914'49". W. LINE' . TABLE . NUM :..:: BEARING ..: .DISTANCE L1.: N 84`44'00".E :...:: 46:59'.' L2 N :84'06'43"' W. 43.00' L3, . N'0045'11" W 152.13'. 11"=50' NOV. 2014 PROJECT NO. 06007 PAGE 2 OF 2 V TIM HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CLINTON, WA 98236 425.822.7271 Exhibit 2 W 0 a O 0 Z PROPERTY LINE CUL DE SAC INTO LANDSCAPING • • EXISTING CURB LINE •""-------6"7/ TUKWILA PARKWAY — LANDSCAPING LS PATIO HOTEL =_ 5 -STORY 59,170 5Q. FT. t 92 UNITS4741-2 t=. • • &TYPICAL PARKI G— 'CE 9'X19' 04 Ia b AR IN'. SAC 53 ONS TE PARKING SPACES CHRISTENSEN ROAD 4i OFFITTE P NG f CICICICICjCIcjIrCIC CJC C CICIC CJCIC� SITE PLAN - OPTION 2 1•-5047 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL FROM 24 SPACES TD 27 0 HOLIDAY INN EXPRESS TULWILA. WA TUKWILA TSD L.L.C. Dale S. eeney ARCHITECT 6715 143r0 Phe Se eansrum. WARM' 423- 1/22/15 icA--w� Tukwila City Council Agenda 4\ ti, a Ell' ❖ REGULAR MEETING ❖ pa,,\ r : /z Tim oa David Haggerton, Mayor Councilmembers: + 7oe Duffie + Dennis Robertson Cline, CityAdministrator ❖ Allan Ekberg + Verna Seal Kruller, Council President ❖ Kathy Hougardy ❖ De'Sean Quinn Kate Monday, March 16, 2015; 7:00 PM • Ord #2471 • Res #1857 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL 2. SPECIAL PRESENTATION Residential Focus Areas. Mike Villa, Police Chief 3. CITIZEN COMMENT At this time, you are invited to comment on items not included on this agenda (p/ease limit your comments to five minutes per citizen). To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. 4. CONSENT AGENDA a. Approval of Minutes: 3/2/15 (Regular Mtg.) b. Approval of Vouchers. c. Authorize the Mayor to sign a contract with David Evans and Associates for the BNSF Intermodal Facility Access Project in the amount of $299,999. (Reviewed and forwarded to Consent at the Committee of the Whole meeting on 3/9/15.) P/ease refer to 3/9/15 C.O.W. packet. Q d. Authorize the expenditure of $6,500.00 from lodging tax funds for the purchase of 20 Tight pole banners to be installed around the Starfire Sports Complex. (Reviewed and forwarded to Consent at the Committee of the Whole meeting on 3/9/15) P/ease refer to 3/9/15 C.O.W. packet. Q e. Authorize the Mayor to sign a contract with KPFF Consulting Engineers for the design of the Fort Dent Park BNSF Sewer Relocation Project in the amount of $156,877.00. (Reviewed and forwarded to Consent by Utilities Committee on 3/10/15.) f. Authorize the Mayor to sign a reclaimed water service and use area agreement with King County and Starfire Sports. (Reviewed and forwarded to Consent by Utilities Committee on 3/10/15.) Pg.1 Pg.3 Pg.5 Pg.31 (continued..) REGULAR MEETING Monday, March 16, 2015 Page 2 5. UNFINISHED BUSINESS a. An ordinance relating to contracting indebtedness; providing for the issuance, sale and delivery of not to exceed $6,250,000 aggregate principal amount of Limited Tax General Obligation Bonds to provide funds to pay or reimburse the City for the cost of road construction and improvement projects and to pay the costs of issuance and sale of the bonds; fixing or setting parameters with respect to certain terms and covenants of the bonds; appointing the City's designated representative to approve the terms of the sale of the bonds. b. An ordinance amending Ordinance Nos. 2464 and 2465 to conform debt service payment dates. c. Authorize the Mayor to sign an Interlocal Agreement amending Interlocal Agreement #12-071 with King County to extend animal control services through December 31, 2017. P/ease refer to 3/9/15 C.O.W. packet. Q d. An ordinance approving and authorizing the Development Agreement with Tukwila TSD, LLC, for the shared use of parking in the public right-of-way of Christensen Road as it relates to the planned development of a hotel located at 90 Andover Park East. Pg.55 Pg.79 Pg.89 Pg.91 6. NEW BUSINESS 7. REPORTS a. Mayor b. City Council c. Staff - City Administrator Report d. City Attorney e. Intergovernmental Pg.111 8. MISCELLANEOUS 9. EXECUTIVE SESSION 10. ADJOURNMENT Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice to the City Clerk's Office (206-433-1800 or TukwilaCityClerk@TukwilaWA.gov). This notice is available at www.tukwilawa.aov, and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio/video taped. HOW TO TESTIFY If you would like to address the Council, please go to the podium and state your name and address clearly for the record. Please observe the basic rules of courtesy when speaking and limit your comments to five minutes. The Council appreciates hearing from citizens but may not be able to take immediate action on comments received until they are referred to a Committee or discussed under New Business. COUNCIL MEETINGS No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given. Regular Meetings - The Mayor, elected by the people to a four-year term, presides at all Regular Council Meetings held on the 1st and 3rd Mondays of each month at 7:00 p.m. Official Council action in the form of formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular Council meetings. Committee of the Whole Meetings - Council members are elected for a four-year term. The Council President is elected by the Council members to preside at all Committee of the Whole meetings for a one-year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m. Issues discussed are forwarded to the Regular Council meeting for official action. GENERAL INFORMATION At each Council meeting citizens are given the opportunity to address the Council on items that are not included on the agenda during CITIZENS COMMENTS. Please limit your comments to 5 minutes. Special Meetings may be called at any time with proper public notice. Procedures followed are the same as those used in Regular Council meetings. Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel matters. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the Tukwila Municipal Code states the following guidelines for Public Hearings: 1. The proponent shall speak first and is allowed 15 minutes for a presentation. 2. The opponent is then allowed 15 minutes to make a presentation. 3. Each side is then allowed 5 minutes for rebuttal. 4. Citizens who wish to address the Council may speak for 5 minutes each. No one may speak a second time until everyone wishing to speak has spoken. 5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the question, but may not engage in further debate at this time. 6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss the issue among themselves, or defer the discussion to a future Council meeting, without further public testimony. Council action may only be taken during Regular or Special Meetings. COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor'r review Council review 11/24/14 MD CATEGORY /1 Discussion 3/9/15 12/01/14 MD L Ordinance ❑ Bid Award Mtg Date 03/09/15 MD d, Mtg Date 3/16/15 03/16/15 MD ,Ids c__ L ITEM INFORMATION ITEM No. 5.D. 91 STAFF SPONSOR: JACK PACE ORIGINAL AGENDA DATE: 11/24/15 AGENDA ITEM TITLE An Ordinance and Development Agreement for the proposed Park East. hotel at 90 Andover CATEGORY /1 Discussion 3/9/15 ❑ Motion Mt& Date ❑ Resolution Mtg Date L Ordinance ❑ Bid Award Mtg Date 1Z1 Public Hearing ❑ Other A1tg Date Mtg Date Mtg Date 3/16/15 Mtg Date 11/24/14 SPONSOR ❑ Council MI Mayor ❑ .HR /1 DCD ❑ .Finance ❑ Fire ❑ IT 1 P&R ❑ Police ❑ PW SPONSOR'S Development Agreement for the proposed hotel development at 90 Andover Park East that SUMMARY would allow the shared use of parking in the right-of-way of Christensen Road. The Council is being asked to consider the draft ordinance and the associated development agreement. REVIEWED BY ❑ COW Mtg. ❑ Utilities Cmte DATE: 2/23/15 /1 CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte ❑ Parks Comm. ❑ Planning Comm. COMMII'IEE CHAIR: VERNA SEAL ❑ Arts Comm. RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Department of Community Development Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE RI:QUIRI:D AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/24/14 Discussion and Public Hearing 12/1/14 Discussion and referred back to Community Affairs and Parks Committee 3/9/15 Forward to next Regular Meeting MTG. DATE ATTACHMENTS 3/9/15 Information Memorandums dated dated 2/18/15 and 11/18/14 Parks Commission meeting minutes Memo analyzing the proposal regarding the regulations in the shoreline zone/buffer map Letter from Developer with three alterate site plans Ordinance and Development Agreement Minutes from the Community Affairs and Parks Committee meeting of 2/23/15 3/16/15 Ordinance 91 City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, APPROVING AND AUTHORIZING THE DEVELOPMENT AGREEMENT WITH TUKWILA TSD, LLC, FOR THE SHARED USE OF PARKING IN THE PUBLIC RIGHT-OF-WAY OF CHRISTENSEN ROAD AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, RCW 36.706.170, 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, Tukwila TSD, LLC, desires to build a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, Tukwila TSD, LLC, proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, Tukwila TSD, LLC, also proposes to construct additional parking in the right-of-way, provide monetary compensation to the City for the shared use of parking, and maintain parking in the public right-of-way for the term of the agreement; and WHEREAS, the City of Tukwila and Tukwila TSD, LLC, wish to enter into a Development Agreement for the shared use of parking in the public right-of-way of Christensen Road as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A; and WHEREAS, as required pursuant to Tukwila Municipal Code Section 18.86.050, a public hearing was conducted on the 24th day of November 2014 to take public testimony regarding this Development Agreement, as proposed; and W: Word ProcessinglOrdinances\DA-Shared use of parking at 90 APE DA 2-27-15 MD:bjs Page 1 of 2 93 WHEREAS, the City Council finds that the terms of this Development Agreement are necessary to achieve public benefits, to respond to changing community needs and to encourage modifications that adequately achieve the purposes of otherwise applicable City standards; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Development Agreement. The Development Agreement by and between the City of Tukwila and Tukwila TSD, LLC, for the use of shared parking in the public right-of-way of Christensen Road as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A, is hereby approved, and the Mayor is authorized and directed to execute said 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 , 2015. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Exhibit A — Development Agreement Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing\Ordinances\DA-Shared use of parking at 90 APE DA 2-27-15 MD:bjs 94 Page 2 of 2 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND TUKWILA TSD LLC, FOR THE SHARED USE OF PARKING IN THE RIGHT-OF-WAY OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST I. PREAMBLE THIS DEVELOPMENT AGREEMENT is made and entered into this t y .la: day of , 2015,.by and between the City of Tukwila, a noncharter, optional code Washington municipal corporation, hereinafter the "City," and Tukwila TSD LLC, a (corporation, limited partnership, partnership, etc.) organized under the laws of the State of Washington, hereinafter the "Developer." II. RECITALS WHEREAS, the Developer desires to develop a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, one parking space per guest room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District; and WHEREAS, the Developer has submitted a site plan showing the required number of parking stalls for the hotel cannot be accommodated as surface parking on the project site; and WHEREAS, the Developer proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, the City of Tukwila is the owner of the Christensen Road right-of-way, which includes undeveloped area adjacent to the project's eastern property line, paved street, parking, and cul-de-sac areas; and WHEREAS, the parking area in the right-of-way of Christensen Road is currently used by members of the public for access to the Green River Trail, shoreline, and parks areas; and WHEREAS, hotel parking spaces are expected to be used primarily in the evening and nighttime hours; parking spaces for trail, shoreline, and parks access are expected to be used during daylight hours; and WHEREAS, the Developer proposes to add parking spaces within the undeveloped right-of- way area adjacent to the hotel site and to reconfigure existing spaces to increase the number of parking spaces that would be shared for hotel use and the public for access to the Green River Trail; and 1 95 WHEREAS, all parking spaces within the right-of-way area will be shared and at least four/seven spaces will be designated for non -hotel users to ensure access to the Green River Trail for members of the public; and WHEREAS, the Developer proposes to maintain the parking area within the right-of-way as outlined in Exhibit 2 for the length of this agreement; and WHEREAS, the vision for parking areas within the Transit Oriented Development (TOD) Neighborhood in the Southcenter Subarea Plan is that "parking will be accommodated by a combination of off- and on -street parking spaces/lots" and shared parking facilities. "Such facilities can be shared between public and private uses" (p. 19); and WHEREAS, the Developer proposes to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail; and WHEREAS, implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan include "Seek opportunities for public/private partnerships;" and WHEREAS, a through -way from Andover Park East to Christensen Road will be constructed as part of the project to replace the emergency vehicle maneuvering function of the cul-de-sac; and WHEREAS, uses that provide public access are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan and the proposed development furthers this goal; and WHEREAS, the Washington State Legislature has authorized the execution of a development agreement between a local government and a person having ownership or control of real property within its jurisdiction (RCW 36.70B.170(1)); and WHEREAS, a development agreement must set forth the development standards and other provisions that shall apply to, govern and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement (RCW 36.70B.170(1)); and WHEREAS, for the purposes of this development agreement, "development standards" includes, but is not limited to, all of the standards listed in RCW 36.70B.170(3); and WHEREAS, a development agreement must be consistent with the applicable development regulations adopted by a local government planning under chapter 36.70A RCW (RCW 36.70B.170(1)); and 2 96 WHEREAS, Tukwila Municipal Code Section 18.86.030 explicitly allows for flexibility in development standards applicable to a property developed under a development agreement "to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards"; and WHEREAS, this Development Agreement by and between the City of Tukwila and the Developer (hereinafter the "Development Agreement"), relates to the development known as the 90 Andover Park East Hotel, which is located at: 90 Andover Park East (hereinafter the "Subject Property"); and WHEREAS, a development agreement must be approved by ordinance or resolution after a public hearing (RCW 36.70B.200); and WHEREAS, a public hearing for this Development Agreement was held on November 24, 2014, and the City Council approved this Development Agreement by Ordinance No. on ; and NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows: III. AGREEMENT Section 1. The Project. The Project is the development and use of the Subject Property, consisting of 0.39 acres (approximatelyl 7,000 square feet) in the City of Tukwila located at 90 Andover Park East and a portion of Christensen Road right-of-way for a 92 -room 5 -story hotel and 45(obt4n 2) % `48(op"t0n3) shared parking spaces on Christensen Road right-of-way, as shown on Exhibit 2. Section 2. The Subject Property. The Subject Property and right-of-way are legally described in Exhibit 1, attached hereto and incorporated herein by this reference. Section 3. Definitions. As used in this Development Agreement, the following terms, phrases and words shall have the meanings and be interpreted as set forth in this Section. a) "Adopting Ordinance" means the Ordinance which approves this Development Agreement, as required by RCW 36.70B.200. b) "Council" means the duly elected legislative body governing the City of Tukwila. c) "Design Guidelines" means the Tukwila Design Manual, as adopted by the City. d) "Director" means the City's Community Development Director. e) "Effective Date" means the effective date of the Adopting Ordinance. 3 97 f) "Existing Land Use Regulations" means the ordinances adopted by the City Council of Tukwila in effect on the Effective Date, including the adopting ordinances that govern the permitted uses of land, the density and intensity of use, and the design, improvement, construction standards and specifications applicable to the development of the Subject Property, including, but not limited to the Comprehensive Plan, the City's Official Zoning Map and development standards, the Design Manual, the Public Works Standards, SEPA, Concurrency Ordinance, and all other ordinances, codes, rules and regulations of the City establishing subdivision standards, park regulations, building standards. "Existing Land Use Regulations" does not include non -land use regulations, which includes taxes and impact fees. g) "Landowner" is the party who has acquired any portion of the Subject Property from the Developer who, unless otherwise released as provided in this Agreement, shall be subject to the applicable provisions of this Agreement. The "Developer" is identified in Section 5 of this Agreement. h) "Project" means the anticipated development of the Subject Property, as specified in Section 1 and as provided for in all associated permits/approvals, and all incorporated exhibits. i) "Vesting date" means the date a valid and fully complete building permit application for the hotel is submitted to the City of Tukwila. Section 4. Exhibits. Exhibits to this Agreement are as follows: A. Exhibit 1 - Legal description of the Subject Property and the right-of-way. (Option B. Exhibit 2 - Conceptual Site Plan (Option tion Section 5. Parties to Development Agreement. The parties to this Agreement are: A. The "City" is the City of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188. or3) B. The "Developer" or Owner is a private enterprise which owns the Subject Property in fee, and whose principal office is located at 21109 66th Avenue South, Kent, WA 98032. C. The "Landowner." From time to time, as provided in this Agreement, the Developer may sell or otherwise lawfully dispose of a portion of the Subject Property to a Landowner who, unless otherwise released, shall be subject to the applicable provisions of this Agreement related to such portion of the Subject Property. Section 6. Prolect is a Private Undertaking. It is agreed among the parties that the Project is a private development and that the City has no interest therein except as explicitly outlined in this Agreement and as authorized in the exercise of its governmental functions. 4 98 Section 7. Effective Date and Term. This Agreement shall commence upon the effective date of the Adopting Ordinance approving this Agreement, and shall continue in force for a period of 50 years, with the option to extend the Agreement an additional 30 years, unless extended or terminated as provided herein. Following the expiration of the term or extension thereof, or if sooner terminated, this Agreement shall have no force and effect, subject however, to post -termination obligations of the Developer or Landowner. Section 8. Terms. A. Design • The Project at 90 Andover Park East shall be allowed non-exclusive use rights for the parking spaces and drive aisle area of Christensen Road (as depicted in Exhibit 2) to meet minimum parking requirements for the development. This Agreement shall not preclude the City from entering into additional agreements regarding use of this area by other private parties. The Project will be subject to the development regulations in effect at the time of complete permit application submittals. • The site plan attached as Exhibit 2 is included with this Agreement for reference only, and has not yet been approved as of the date of execution of this Agreement. The site plan shall be subject to modifications during review of the required land use permits. • As a result of the cul-de-sac closure, public access through 90 Andover Park East is hereby allowed and provided for. • The Developer shall construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail. • All shared parking stalls will be constructed and maintained to Public Works Infrastructure Design and Construction Standards. n 6+ • The Developer shall be responsible for making a payment of $93,849(option 2)I $145,897(option 3) to the City of Tukwila. This payment shall be made prior to the issuance of the building permit for the hotel. B. Construction • The cost of permits and plans required for construction of the parking area shall be borne by the Developer and submitted as part of the permits for the hotel. The parking in the right-of-way must receive final approval by all required City departments prior to issuance of the Certificate of Occupancy for the hotel. C. Maintenance • The parking area shall be subject to inspections every five years. • Developer is solely responsible for the cost and maintenance of the parking spaces. New striping of the parking spaces shall be completed every three years. 5 99 D. Operations • A total of 92 parking spaces are required for the 9 room hotel as proposed. The site plan in Exhibit 2 includes 98(option2)1101(op ion3) parking spaces. All parking spaces within the right-of-way of Christensen Road shall be for the joint use of the hotel users and members of the public and at least four(ophon,seven(option3) spaces shall be designated for non -hotel users to ensure access to the Green River Trail for members of the public. If the final design of the hotel is for less than 92 rooms, then any additional spaces after calculating one space per room plus two spaces shall be designated for non - hotel users. Section 9. Vested Rights. During the term of this Agreement, unless sooner terminated in accordance with the terms hereof, in developing the Subject Property consistent with the Project described herein, Developer is assured, and the City agrees, that the development rights, obligations, terms and conditions specified in this Agreement, are fully vested in the Developer and may not be changed or modified by the City, except as may be expressly permitted by, and in accordance with, the terms and conditions of this Agreement, including the Exhibits hereto, or as expressly consented thereto by the Developer. Section 10. Minor Modifications. Minor modifications from the approved permits or the exhibits attached hereto may be approved in accordance with the provisions of the City's code, and shall not require an amendment to this Agreement. Section 11. Further Discretionary Actions. Developer acknowledges that the Existing Land Use Regulations contemplate the exercise of further discretionary powers by the City. These powers include, but are not limited to, review of additional permit applications under Shoreline Substantial Development Permit and Design Review. Nothing in this Agreement shall be construed to limit the authority or the obligation of the City to hold legally required public hearings, or to limit the discretion of the City and any of its officers or officials in complying with or applying Existing Land Use Regulations. Section 12. Existing Land Use Fees and Impact Fees. A. Land use fees adopted by the City by ordinance as of the Effective Date of this Agreement may be increased by the City from time to time, and are applicable to permits and approvals for the Subject Property, as long as such fees apply to similar applications and projects in the City. B. All impact fees shall be paid as set forth in the approved permit or approval, or as addressed in Chapters 16.26 and 9.48 of the Tukwila Municipal Code. IV. GENERAL PROVISIONS Section 1. Assignment of Interests, Rights, and Obligations. This Agreement shall be binding and inure to the benefit of the Parties. No Party may assign its rights under this Agreement without the written consent of the other Party, which consent shall not unreasonably be withheld. This Agreement shall be binding upon and shall inure to the benefit of the heirs, successors, and assigns of the Developer and the City. 6 100 Section 2. Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein. Section 3. Severability. The provisions of this Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity of its application to other persons or circumstances. Section 4. Termination. This Agreement shall expire and/or terminate as provided below: A. This Agreement shall expire and be of no further force and effect if the Developer fails to submit a complete building permit application for the construction of the hotel within one year, or if the Project construction is not completed within three years, of the effective date of this Agreement; or if at any time after Project construction is completed, Developer fails to maintain the parking areas according to the terms of this Agreement. Nothing in this Agreement shall extend the expiration date of any permit or approval issued by the City for any development. B. This Agreement shall expire and be of no further force and effect if the Developer does not construct the Project as contemplated by the permits and approvals identified in this Agreement, or submits applications for development of the Subject Property that are inconsistent with such permits and approvals. C. This Agreement shall terminate at such time as a change of use occurs at 90 Andover Park East, or at such time as 90 Andover Park East is redeveloped. D. This Agreement shall terminate in the event the Washington State Department of Transportation (WSDOT) widens Interstate 405 in the vicinity of the Subject Property, or should any other project or condition arise that requires reconfiguration of Tukwila Parkway and/or the Project parking area. E. This Agreement shall terminate upon the abandonment of the Project by the Developer. The Developer shall be deemed to have abandoned the Project if/when written notice is provided to the City that the Developer's interest in the Project has been terminated. Said notice shall be given to the City no more than 30 days after the Developer's interest in the Project is terminated. F. This Agreement may terminate pursuant to Section IV.,3, Severability, or Section IV.,10, Default, or as otherwise outlined in this Agreement. G. If the use will continue upon expiration of the term of this Agreement, the Developer shall either negotiate a new agreement with the City or provide documentation showing how the number of parking spaces required by the codes at the time of expiration will be provided. 7 101 Section 5. Effect upon Termination on Developer Obligations. Termination of this Agreement as to the Developer of the Subject Property or any portion thereof shall not affect any of the Developer's obligations to comply with the City Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or subdivision map or other land use entitlements approved with respect to the Subject Property, any other conditions of any other development specified in the Agreement to continue after the termination of this Agreement or obligations to pay assessments, liens, fees or taxes. Section 6. Effects upon Termination on City. Upon any termination of this Agreement as to the Developer of the Subject Property, or any portion thereof, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the property affected by such termination (provided that vesting of such entitlements, conditions or fees may then be established for such property pursuant to then existing planning and zoning laws). Section 7. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default hereof. Section 8. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. Venue for any action shall lie in King County Superior Court or the U.S. District Court for Western Washington. Section 9. Attorneys' Fees. In the event of any litigation or dispute resolution process between the Parties regarding an alleged breach of this Agreement, neither Party shall be entitled to any award of attorneys' fees. Section 10. Notice of Default/Opportunity to Cure/Dispute Resolution. A. In the event a Party, acting in good faith, believes the other Party has violated the terms of this Agreement, the aggrieved Party shall give the alleged offending Party written notice of the alleged violation by sending a detailed written statement of the alleged breach. The alleged offending Party shall have 30 days from receipt of written notice in which to cure the alleged breach unless the Parties agree, in writing, to additional time. This notice requirement is intended to facilitate a resolution by the Parties of any dispute prior to the initiation of litigation. Upon providing notice of an alleged breach, the Parties agree to meet and agree upon a process for attempting to resolve any dispute arising out of this Agreement. A lawsuit to enforce the terms of this Agreement shall not be filed until the latter of (a) the end of the cure period, or (b) the conclusion of any dispute resolution process. B. After notice and expiration of the ,30 -day period or other time period as agreed to by the Parties, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other party or Landowner to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. In addition, the City may decide to file an action to enforce 8 102 the City's Codes, and to obtain penalties and costs as provided in the Tukwila Municipal Code for violations of this Development Agreement and the Code. Section 11. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and is not intended to benefit any other person or entity, and no person or entity not a signatory to this Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No other person or entity not a Party to this Agreement may enforce the terms and provisions of this Agreement. Section 12. Integration. This Agreement and its exhibits represent the entire agreement of the parties with respect to the subject matter hereof. There are not other agreements, oral or written, except as expressly set forth herein. Section 13. Authority. The Parties each represent and warrant that they have full power and actual authority to enter into this Agreement and to carry out all actions required of them by this Agreement. All persons are executing this Agreement in their representative capacities and represent and warrant that they have full power and authority to bind their respective organizations. Section 14. Covenants Running with the Land. The conditions and covenants set forth in this Agreement and incorporated herein by the Exhibits shall run with the land and the benefits and burdens shall bind and inure to the benefit of the parties. The Developer, Landowner and every purchaser, assignee or transferee of an interest in the Subject Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Subject Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of a Developer contained in this Agreement, as such duties and obligations pertain to the portion of the Subject Property sold, assigned or transferred to it. Section 15. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be amended by mutual consent of all of the parties, provided that any such amendment shall follow the process established by law for the adoption of a development agreement (see RCW 36.70B.200). However, nothing in this Agreement shall prevent the City Council from making any amendment to its Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations affecting the Subject Property as the City Council may deem necessary to the extent required by a serious threat to public health and safety. Nothing in this Development Agreement shall prevent the City Council from making any amendments of any type to the Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations relating to the Subject Property. Section 16. Releases. Developer, and any subsequent Landowner, may free itself from further obligations relating to the sold, assigned, or transferred property, provided that the buyer, assignee or transferee expressly assumes the obligations under this Agreement as provided herein. 9 103 Section 17. Notices. Notices, demands, correspondence to the City and Developer shall be sufficiently given if dispatched by pre -paid first-class mail to the addresses of the parties as designated in Section 5. Notice to the City shall be to the attention of both the Mayor's Office and the City Attorney. Notices to subsequent Landowners shall be required to be given by the City only for those Landowners who have given the City written notice of their address for such notice. The parties hereto may, from time to time, advise the other of new addresses for such notices, demands or correspondence. Section 18. Reimbursement for Agreement Expenses of the City. Developer agrees to reimburse the City for actual expenses incurred over and above fees paid by Developer as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees and reasonable staff and consultant costs not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section, as well as any processing fees owed to the City for the Project, are paid to the City. This Agreement shall be terminated if the Developer does not pay to the City the fees provided for in this section. Upon payment of all expenses, the Developer may request written acknowledgement of all fees. Such payment of all fees shall be paid, at the latest, within 30 days from the City's presentation of a written statement of charges to the Developer Section 19. Police Power. Nothing in this Agreement shall be construed to diminish, restrict or limit the police powers of the City granted by the Washington State Constitution or by general law. Section 20. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party or a Landowner to challenge this Agreement or any provision herein, the City and Developer will collaborate to resolve such legal action. In the event such legal action cannot be resolved, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to Developer and/or Landowner(s). In such event, Developer and/or such Landowners shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to, attorneys' fees and expenses of litigation, and damages awarded to the prevailing party or parties in such litigation. Neither the City nor the Developer and/or Landowner shall settle any lawsuit without the consent :of the other. The City and Developer/Landowner shall act in good faith and shall not unreasonably withhold consent to settle. Section 21. No Presumption Against Drafter. This Agreement has been reviewed and revised by legal counsel for both Parties and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreement. Section 22. Headings. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this Agreement. Section 23. Recording. Developer shall record an executed copy of this Agreement with the King County Auditor, pursuant to RCW 36.70B.190, no later than 14 days after the Effective Date. 10 104 Section 24. Legal Representation. In entering into this Agreement, Developer represents that it has been advised to seek legal advice and counsel from its attorney concerning the legal consequences of this Agreement; that it has carefully read the foregoing Agreement and knows the contents thereof, and signs the same of its own free act; and that it fully understands and voluntarily accepts the terms and conditions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the dates set forth below: OWNER/DEVELOPER: CITY OF TUKWILA By By Its Managing Member Tukwila TSD LLC 21109 66th Avenue South Kent, WA 98032 STATE OF WASHINGTON ) ) ss. COUNTY OF ) Its Mayor ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney On this day of ,.2015, before me personally appeared , to me known to be the individual that executed the within and foregoing instrument, and acknowledged the said instrument to be his/her free and voluntary act and deed for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 11 105 STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this of �241` 5, before me personally appeared , and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged as the of the City of Tukwila to be the free and voluntary act of said party for the uses and purposes mentioned in this instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 12 106 Exhibit 1 Exhibit 1: Legal Description Legal Description shall be revised based on the final decision by City Council. 107 Exhibit 2 (Option 2) OPTION 2 - CUL DE SAC INTO LANDSCAPING PARK EAST w CC W O 0 Z PROPERTY LINE EXISTING CURB LINE LANDSCAPING } TUK\MLA PARS WAY 1W4 LS PATIO HOTEL 5 -5TO RY 59, 170 SQ. FT. 92 UNITS •AR IN G, =Ct. & TYPICAL PARKIWG 'CE 9'X19' N c� L. 00 4 U J 53 ONSITE PARKING SPACES ICICICICICIC1_AIDSI:AFIN C C C C I I I C C C OF c I cicl c I SI ILI d AC CHRISTENSEN ROAD a 4� OFFSITE PAR NG SITE PLAN - OPTION 2 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL WINN • RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN XPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale Sweeney ARCHITECT 1/22/15 57Th 143rd Place S.E143,6 Place S.E. 9elkwue, WA 88006 425-280-8969 109 1 Exhibit 2(Option3) OPTION 3 - CUL DE SAC INTO PARKING F- a 0 w 0 0 z PROPERTY LINE TUKWILA PAR_ KWAY 11(4 EXISTING CURB LINE HOTEL 5 -STORY 59, 170 SQ. FT. 92 UNITS 3 ONSITE PARKING SPACES Ca 4� OFFSITE PARKING CICICICICICICLAN SCAFINGC Icic SITE PLAN - OPTION 3 I" 50-0" 53 ONSITE PARKING SPACES 48 OFFSITE PARKING SPACES 101 TOTAL cicicicicic RE-STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN tXPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale ,Sweeney ARCHITECT 1/22/15 5715 143rd Place S.E. Bellevue, WA 96006 425-260-8966 110 • 744 a �`�� Monday, J�'"" w\'� 11 cep 91 R. i� IiC) � 19oa_ % Tukwila City Council Agenda ••• COMMITTEE OF THE WHOLE ❖ Jim Haggerton, Mayor Councilmembers: ❖Joe Duffie ❖Dennis Robertson David Cline, CityAdministrator ❖ Allan Ekberg ❖ Verna Seal Kate Kruller, Council President ❖ Kathy Hougardy ❖ De'Sean Quinn March 9, 2015, 7:00 PM Tukwila City Hall Council Chambers 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. SPECIAL PRESENTATION Bond issuance basics and considerations. Susan Musselman and Duncan Brown, Public Financial Management, Inc. 3. CITIZEN COMMENT At this time, you are invited to comment on items rt included on this agenda (please limit your comments to five minutes per citizen). To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. 4. SPECIAL ISSUES a. An ordinance providing for the issuance of $6,250,000 Limited Tax General Obligation (LTGO) Bonds for arterial streets. b. An ordinance amending Ordinance Nos. 2464 and 2465 to conform debt service payment dates. c. Authorization to spend lodging tax funds for street pole banners. d. An Interlocal Agreement extending animal control services. e. A consultant contract for the BNSF Intermodal Facility Access Project.- f. An ordinance approving a Development Agreement with TSD, LLC for shared use of parking in the public right-of-way of Christensen Road. Pg.1 Pg.35 Pg.49 Pg.57 Pg.67 Pg.113 5. REPORTS a. Mayor b. City Council c. Staff d. City Attorney e. Intergovernmental 6. MISCELLANEOUS 7. EXECUTIVE SESSION 8. ADJOURNMENT City Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice to the Clerk's Office (206-433-1800 or TukwilaCityClerk@TukwilaWA.gov). This notice is available at www.tukwilawa.gov, and in altemate formats with advance notice for those with disabilities. Tukwila Council meetings are audio/video taped. HOW TO TESTIFY If you would like to address the Council, please go to the podium and state your name and address clearly for the record. Please observe the basic rules of courtesy when speaking and limit your comments to five minutes. The Council appreciates hearing from citizens but may not be able to take immediate action on comments received until they are referred to a Committee or discussed under New Business. COUNCIL MEETINGS No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given. Regular Meetings - The Mayor, elected by the people to a four-year term, presides at all Regular Council Meetings held on the 1st and 3rd Mondays of each month at 7:00 p.m. Official Council action in the form of formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular Council meetings. Committee of the Whole Meetings - Council members are elected for a four-year term. The Council President is elected by the Council members to preside at all Committee of the Whole meetings for a one-year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m. Issues discussed are forwarded to the Regular Council meeting for official action. GENERAL INFORMATION At each Council meeting citizens are given the opportunity to address the Council on items that are not included on the agenda during CITIZENS COMMENTS. Please limit your comments to 5 minutes. Special Meetings may be called at any time with proper public notice. Procedures followed are the same as those used in Regular Council meetings. Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel matters. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the Tukwila Municipal Code states the following guidelines for Public Hearings: 1. The proponent shall speak first and is allowed 15 minutes for a presentation. 2. The opponent is then allowed 15 minutes to make a presentation. 3. Each side is then allowed 5 minutes for rebuttal. 4. Citizens who wish to address the Council may speak for 5 minutes each. No one may speak a second time until everyone wishing to speak has spoken. 5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the question, but may not engage in further debate at this time. 6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss the issue among themselves, or defer the discussion to a future Council meeting, without further public testimony. Council action may only be taken during Regular or Special Meetings. • _ COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayors review Council review 11/24/14 MD hotel at 90 Andover 12/01/14 MD ❑ Motion Mtg Date ❑ Resolution Mtg Date 03/09/15 MD @ Ordinance 12 Public Hearing Mtg Date Mtg Date 3/9/15 Mtg Date 11/24/14 SPONSOR ❑ Council ❑ Mayor ❑ HR ►1 DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ❑ PW ITEM INFORMATION ITEM No. STAFF SPONSOR: JACK PACE ORIGINAL AGENDA DA 1 E: AGENDA ITEM TITLE An Ordinance and Development Park East. Agreement for the proposed hotel at 90 Andover CATEGORY 0 Discussion 3/9/15 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Bid Award Mtg Date ❑ Other Mtg Date @ Ordinance 12 Public Hearing Mtg Date Mtg Date 3/9/15 Mtg Date 11/24/14 SPONSOR ❑ Council ❑ Mayor ❑ HR ►1 DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ❑ PW SPONSOR'S Development Agreement for the proposed hotel development at 90 Andover Park East that SUMMARY would allow the shared use of parking in the right-of-way of Christensen Road. The Council is being asked to consider the draft ordinance and the associated development agreement. REVIEWED BY ❑ COW Mtg. ❑ Utilities Cmte DATE: 2 /1 CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: VEfRNA SEAL ❑ Arts Comm. RECOMMENDATIONS: SPONSOR/ADMIN. CoMMI1-PEE Department of Community Development Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/24/14 Discussion and Public Hearing 12/1/14 Discussion and referred back to Community Affairs and Parks Committee MTG. DATE ATTACHMENTS 3/9/15 Information Memo dated 3/3/15 Memo to Committee of the Whole 11/24/14 Meeting minutes from Parks Commission meeting 1/21/15 & 2/18/15 Memo analyzing the regulations in the shoreline regulations &shoreline buffer map Letter from Developer with three alterate site plans Meeting minutes from Community Affairs and Parks Committee meeting 2/23/15 Ordinance and Development Agreement TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton City Council Committee of the Whole FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: March 3, 2015 SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the Development Agreement for the proposed hotel development at 90 Andover Park East; allowing the shared use of parking in the right-of-way of Christensen Road? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that the required number of parking stalls cannot be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of-way of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications that provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. This item was previously discussed by the Community Affairs Committee on November 12, 2014; Committee of the Whole held a public hearing on November 24, 2014 and it was referred back to the Community Affairs and Parks Committee on December 1, 2014. See attached memo for the information that was provided to the City Council previously on this item (Attachment A). Additionally, the Parks Commission was briefed on the pocket park proposal on January 21, 2015, and the minutes of the meeting are attached (Attachment B). DISCUSSION City Council asked staff to provide information on how the proposal complies with the City's shoreline regulations and asked the Community Affairs and Parks Committee to further review the proposal and make a recommendation to the Committee of the Whole. Additionally since the last City Council meeting the developer has come back with a couple of additional options for the City to consider, which are also attached. INFORMATIONAL MEMO Page 2 In order to help facilitate decision making on this proposal it may be easier to break down the discussion into following issues: 1. Does the proposal comply with the city's shoreline regulations? 2. Does the city want to allow use of public right-of-way for shared parking for the hotel? 3. How many parking spaces should be shared between the hotel and trail users and how many should be guaranteed for the trail users? 4. What is the appropriate compensation for sharing parking in the right-of-way? 1. Does the proposal comply with the city's shoreline regulations? This area of the shoreline is designated as Urban Conservancy and the shoreline buffer ends on the river side of the existing roadway (Christensen Road). The conceptual site plan showing the hotel location and other site improvements meets the shoreline use, site setback and site configuration requirements. Detailed review of the construction plans will be done during the shoreline substantial development permit review process, which is an administrative decision issued after public notification to the interested agencies and surrounding property owners. The staff report of the shoreline permit is then sent to Department of Ecology for their review. See attached handout explaining the shoreline review process and code criteria along with the map showing the shoreline buffer (Attachment C). 2. Does the city want to allow use of public right-of-way for shared parking for the hotel? The existing site is a former gas station. The fuel canopy and the underground tanks were removed in 2007. In 2008, land use approval was granted for a 12,000 sq. ft. single story retail building that was never constructed. The existing lot is only 50,000 sq. ft. and without the shared parking agreement the likely form of development to occur on this site is single story. The current proposal to share the parking in the right-of-way would allow a five story hotel to be constructed. This form of development fits in with the vision anticipated by the Southcenter Subarea Plan for this area. The previous memo to the City Council (Attachment A) listed the goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan that are achieved by the City entering into this development agreement. The proposal includes: • Shared use of parking in the right-of-way. • Initial term of 50 years with an option to extend for 30 additional years • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway and/or the Project parking area; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. INFORMATIONAL MEMO Page 3 3. How many parking spaces should be shared and how many should be guaranteed for the trail users? Tukwila Municipal Code requires one parking space per hotel room. The developer has stated that the franchise requires one parking space per hotel room plus two additional spaces. Per Smith Travel Research Report for hotels in Tukwila's general market, the occupancy rate for year 2014 varied from 80 to 90 percent during the high season (May through September) with December/January being the lowest around 60 percent; for an average annual room occupancy of 77 percent. The proposed hotel has 53 on-site parking spaces (hotel use only) and would like to share 45 parking spaces within the right-of-way (hotel and trail users). There are currently only 27 parking spaces in the right-of-way and the developer has proposed to add 18 new parking spaces within the undeveloped right-of-way; resulting in 45 spaces in the right-of-way. 41 out of 45 spaces will be shared between the hotel users and trail users and four spaces will be reserved exclusively for trail users. This allows four guaranteed spaces for the trail users but they could also park anywhere on the remaining 41 spaces. There is currently no data on the number of spaces used by trail users. However it can be stated that hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day Tight hours. The proposed hotel has only a small meeting room and no restaurant, therefore the parking demand is anticipated to be less than a hotel with a large meeting room/convention facility. The developer has also provided parking data for the hotels currently operated by them showing that the parking demand is less than one car per occupied room (Attachment D). 4. What is the appropriate compensation for sharing parking in the right-of-way? Since the last meeting the developer has come back with the following options for the City to consider as appropriate compensation for allowing shared use of parking: Option 1: Develop and maintain a public pocket park within the existing cul-de-sac with $10,000 payment to the City. Option 2: Replace the asphalt in the cul-de-sac area with landscaping along with a monetary payment of $93,849 to the City. Option 3: Convert the cul-de-sac into parking area with a monetary payment of $145,897 to the City. INFORMATIONAL MEMO Page 4 Listed below is the summary of compensation for all three options: Compensation for sharing parking in the right-of-way Option 1:Pocket Park Option 2: Cul-de- sac to landscaping Option 3: Cul -de - sac into parking Developer shall develop and maintain a public pocket park x Developer shall maintain the parking area x x x Parking spaces for trail users 41 shared and 4 guaranteed. 41 shared and 4 guaranteed 41 shared and 7 guaranteed Developer shall construct a pedestrian connection between the intersection of Andover Park East and the Green River Trail x x x Members of the public and emergency vehicles will have access through the hotel parking lot. x x x Monetary Payment $10,000 $93,849 $145,897 Pros and Cons A public pocket park in the urban center, which complements the Green River Trail. The impervious surface in the shoreline zone is reduced. The city gets monetary payment of $10,000. The impervious surface in the shoreline zone is reduced. There is opportunity to plant native vegetation in the shoreline zone. The city gets monetary payment of $93,849. There are three additional parking spaces under this option but impervious surface increases. The city gets monetary payment of $145,897. FINANCIAL IMPACT The land is valued at $25 per square feet. The right of way area is 17,103 square feet with a land value of $427,575. The developer had previously provided a cost estimate of $186,037 for the development of the pocket park. All three options listed above cost the developer $186,037. Additionally the developer has estimated about $6000 per year in maintenance costs. There is no negative financial impact to the city under any of the three options. City Council may want to decide what could be done with the monetary payment. This decision could occur separate from the development agreement process. Some options for the City Council to consider are: • Put the money the city's tree mitigation fund • Establish a shoreline restoration fund • Designate the money towards another project in the Urban Center such as Tukwila Pond or pedestrian bridge project. INFORMATIONAL MEMO Page 5 • Designate the money towards any other project on the City's Capital Improvement Program list • Put the money in the City's general fund. RECOMMENDATION Staff recommends that the city enter into the development agreement to share the parking in the right-of-way in order to facilitate the hotel development. Regarding the decision on the appropriate compensation for the shared use of right-of-way staff recommends option 2. Under this option the city will get a monetary payment of $93,849, impervious surface in the shoreline zone is reduced and the city still retains the opportunity to put in a pocket park at a future date. ATTACHMENTS A. Memo to the Committee of the Whole Nov 24, 2014. B. Meeting minutes Parks Commission meeting Jan 21, 2015 and February 18, 2015. C. Memo analyzing the proposal as it relates to the regulations in the shoreline zone along with the buffer map. D. Letter from the Developer with three alternative site plans. E. Meeting minutes Community Affairs and Parks Committee meeting February 23, 2015. F. Ordinance and Development Agreement Attachment A City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: November 18, 2014 (Revised after Community Affairs and Parks Committee meeting on November 12, 2014) SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the proposed Development Agreement for the proposed hotel development at 90 Andover Park East that would allow the shared use of parking in the right-of- way of Christensen Road in exchange for the construction of a public pocket park? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that only 53 parking spaces can be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of- way of Christensen Road in exchange for developing a public pocket park in the cul-de sac area of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. DISCUSSION The proposal reviewed by the Community Affairs and Parks Committee included: • Shared use of parking and drive aisle area in the right-of-way of Christensen Road, with 18 new parking spaces added by the developer within the undeveloped right-of-way area adjacent to the hotel site. The developer would also reconfigure the existing spaces to increase the number of parking spaces in the right-of-way. A total of 45 parking spaces would be available within the right-of-way; out of which 41 will be shared between the hotel use and members of the public with four spaces exclusively reserved for non -hotel users including those who want to access the Green River Trail. • In exchange for the shared parking the developer shall: a) Develop and maintain a public pocket park within the existing cul-de-sac area. b) Maintain the park and the parking area for the term of the agreement. c) Provide public access through the subject property to compensate for the cul-de-sac closure. d) Construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and the Green River Trail. INFORMATIONAL MEMO Page 2 • Initial terra of 50 years with an option to extend for 30 additional years. • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations for the park and the parking areas; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or -condition arise that requires reconfiguration of Tukwila Parkway, -the Project parking area, and/or the Pocket Park; d) If the developer abandons the project; e) The deyeloper shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. This proposal furthers the following goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan: • The Southcenter Subarea Plan envisions that parking will be accommodated by a combination of off -and on -street parking spaces/lots and shared parking facilities within the Transit Oriented Development (TOD) Neighborhood. • The Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and.the Green River...." • The implementation strategies for policy 10:2:1 of the Tukwila Comprehensive Plan includes, "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships". • Uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Pian. The pocket park and shared parking are considered mutually beneficial to the City and the developer for the following reasons: • There are currently only 27 parking spaces in the right of -way area and the proposal will provide 45 parking spaces. • Hotel parking spaces are expected to be used. primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. • The pocket park will complement the Green River Trail. • The proposal facilitates higher intensity development that is envisioned by the Comprehensive Plan for this area. • The cost of construction and maintenance of the pocket park and the parking spaces will be pard for by 'the developer in exchange for the shared use of the parking. • Members of the public and emergency vehicles will have access through the hotel parking lot. INFORMATIONAL MEMO Page 3 Alternative proposal discussed at the Community Affairs and Parks Committee: Committee's Recommendation: At the Community Affairs and Parks Committee an alternative that would allocate the funds specified in the development agreement for the pocket park to go toward a tree planting project in the area of the river bank across Christensen Road was discussed. This alternative was recommended by the Committee as it advances the goals of regional efforts to restore aquatic ecosystems and salmon habitat in the Green-Duwamish watershed, Under this proposal, the developer would provide the money and the City could assume responsibility for the project, either alone or in collaboration with a group already doing this kind of restoration work. The Committee supported the alternative if it did not delay the agreement:or add costs for the developer. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional analysis relating to the alternative proposal. The Committee of the Whole would then select the preferred option. Staff has further reviewed the alternative proposed by the Committee with the City's Public Works and Parks Department and listed below is their response. A map showing the riverbank area in the general vicinity of the subject site is attached to this memo. The total area from south of 1-405 to the bend in the River is approximately 73,000 square feet. The project cost for any shoreline restoration project that includes site preparation and planting is approximately $2 per square foot. Review of the Committee's recommendation by Bob Giberson, Public Works Director: Following projects are underway that might preclude the quick approval of a Green River planting plan adjacent to 90 Andover Park East along the river: a) Green River System Wide Improvement Framework (SWIF) process Will be ongoing through early 2015. It is a US Army Corp of Engineers planning process that is being completed by King County Flood Control District. It involves ongoing engagement with state/federal agencies, business community, environmental community, WRIA9 and other agencies. It will include a prioritized list of capital projects to achieve flood protection goals and vegetation management plans to address large trees and shrubs location with respect to levees. More information about SWIF is available online at http://v w.kingc-ounty.zov/environmentlwlr/sections-programs/iiver- floodptain-sec•tiion/capital -pro j ects/green-river-system-wide--i.mprovement- framework.aspx b) The Tukwila 205 Levee Certification effort will not be completed for at least one year. The biggest unknown to obtain FEMA levee accreditation approval is the scope of repairs and/or improvements. Any required repairs arid/or improvements will jeopardize any recent plantings. c) The TUC Pedestrian/Bicycle Bridge final design may include habitat mitigation near the bend in the river to the south of 90 Andover Park East. The design for this project will be completed in 2015 and constructed by 2017 As an alternative option, it appears that there is sufficient contingency in the pocket park cost estimate to allow the developer to contribute $10;000 towards a planting plan for the riverbank. Once a planting plan is approved by the necessary agencies, the developer's funds can be used as a match to other available funds for a complete habitat enhancement planting effort in this vicinity. INFORMATIONAL MEMO Page 4 Review of the Committee's recommendation by Rick Still, Parks and Recreation Director: Background on why the pocket park is °a valid proposal: a) A system of pocket parks in the Tukwila Urban Center (TUC) is vital to meeting the recreation and social needs of -the community because purchasing larger parcels in this area is cost prohibitive at this time. The few parks currently located in TUC are heavily used by patrons for spending time away from offices on breaks, gaining access to the trail system, meeting people to gather and socialize, for exercise at or to visit as a part of their exercise routine, for access while walking to the train, and to enjoy nature while in an urban setting. b) In 2006, staff met with a developer who introduced the concept of using the Christensen Trail parking area as part of their development located between Christensen Road and Andover Park East. Through discussions with this developer, staff hired a landscape architect to initiate a site study and prepare a conceptual design for a pocket park at the turnaround at the north end of Christensen Road. This conceptual design was utilized with several developers throughout the past seven years. c) The Christensen Road pocket park provides an area on the north end of the TUC where there currently is not a recreational opportunity for the community. The area is easily accessed from local businesses and residential areas near City Hall. Hotel development in this area increases the need for a park since many of the people staying in hotels will be using the trail to access Starfire Sports at Fort Dent Park. The park will help contribute to a more connected community and build a sense of community pride. Staff has looked at ways to accommodate tree planting along the Green River while maintaining construction of the pocket park. Staff believes that with value engineering of the pocket park the developer could reduce the construction 'cost to allow approximately $10,000 for tree plantings along the Green River Trail at Christensen Road. The Committee of the Whole has the following options: 1. Approve the development agreement as originally proposed to allow shared parking in the right-of-way in exchange for building and maintaining a pocket park. 2. Approve the development agreement for the alternative proposed by the Community Affairs and Parks Committee to allow shared parking in the right-of-way in exchange for getting a monetary payment for the Green/Duwamish riverbank planting project. 3. Approve the development agreement as originally proposed with an amendment to include $10,000 payment by the developer towards Green/Duwamish River restoration/planting projects or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. FINANCIAL IMPACT There is no financial impact to the City as all costs associated with the development and maintenance of the pocket park and additional parking shall be borne by the developer. The developer's cost estimate for the development of the pocket park and additional parking area is $186,037. Also, the annual maintenance costs are anticipated to be $6000 per year and subject to inflation over the term of the agreement. The land value of the right -of -area with the shared parking is $427,575 ($25 per square foot for 17,103 square feet total area). INFORMATIONAL MEMO Page 5 RECOMMENDATION The Council is being asked to hold a public hearing on this item and select one of the options listed above. Staff recommends approving the development agreement as originally proposed with an amendment to include $10,000 payment by the developer for the Green/Duwamish River restoration/planting project or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. If the Council selects this option then Section 8 of the Development Agreement will be revised to include a clause stating the developer shall be responsible to make a payment of $10,000 for Green/Duwamish River restoration/planting projects or to implement the goals and policies of the City's Comprehensive Plan related to Urban Forestry. This payment shall be required prior to the issuance of the building permit for the hotel. Also, Exhibit 3 shall be amended to reflect this payment. Staff also recommends adding two items to the 2015 work plan: a) Review current policies regarding non-public uses in the public right-of-way. b) Review policies/projects for restoration/planting projects of the Green/Duwamish riverbank and how the city will implement the goals and policies of City's Comprehensive Plan relating to Urban Forestry. ATTACHMENTS Vicinity Map Draft Ordinance Development Agreement Exhibit 1- Legal Description Exhibit 2 -Conceptual Site Plan Exhibit 3 -Conceptual Site Plan of the Pocket Park; list of park amenities with construction cost estimates; and land valu'e.estimates. Map showing the riverbank in the vicinity of the subject site Minutes from Community Affairs and Parks Committee meeting Nov 12, 2014. Attachment B TUKWILA PARKS COMMISSION PARKS & RECREATION G000 HEAL HY FUN MINUTES January 21, 2015 5:30pm Tukwila Community Center Call to Order: Committee Vice -Chairperson Don Scanlon called the meeting to order at 5:37pm. Attendance: Commissioners — Don Scanlon, Alice Russell, Joanne McManus Staff — Dave Johnson Approval of Minutes: Alice Russell moved to approve the minutes of theNovember 19, 2014 meeting. Joanne McManus seconded the motion. The motion passed unanimously. Business Items r� . A. Project Update — The Commission reviewed the Project Update included in the Agenda Packet. B. Commission Appointments— Staff informed the_Commission that Julie Leehas resigned her position on h�_y ' the Commission due to time constraints and willbegin advertising to fill thevacancy. Hassan Abdi's position on the Commission as a Student Representative expires,in June 2015-las.san will work with staff to recruit a student to replace him Alice Russells term on tl eiCommission expires in March 2015. C. Department Update — Staff informed the Commission of department updates including the MLK Day of Service at TCC and Duwamish Hill Preserve, transfer of Pool operations to the MPD, and recent clean-up work at Crystal Spring Park. Staff provided updates -,and the.dommission offered feedbacktto the staff on the following items: 1. Duwamish.Gardens — Commission aske 'to begin considering names for the site. The Other A. Don Scanlon attende4h.e Citytr=aining on the Open Government Trainings Act on January 12, 2015 and provided a summary toth Commission. Commission would liketo get some historical information about the site. Also suggested the {K f7� -9e �1. idea of holding pub, IFc co stt t_o name the site. olf Cart Purchase4at Foster Golf Links The Commission supports the purchase. Chinook Wind project., The Comniission,supports this project, especially as it ties in with Duwamish Gardens and Duwamish Hill Preserve. .Pocket Park project —The Commission supports the development of the originally proposed •qocket Park design Oa:along Christensen Road. B. Joanne McManus asked staff to look into jackets or some other apparel for the Commissioners as an identifier when meeting with the community and out in the public. C. Don Scanlon noted that due to pollution, nearly all of the coho eggs in the Southgate Creek incubator have died. Don is working with Public Works on this. Adjournment: Alice Russell moved to adjourn at 6:13pm. The motion was seconded byJoanne McManus. The motion passed unanimously. TU KWI LA PARKS COMMISSION PARKS & RECR.EAT ION MINUTES GOOD HEALTHY FUN February 18, 2015 5:30pm Tukwila Community Center Call to Order: Chairperson Sean Albert called the meeting to order at 5:34pm. Attendance: Commissioners — Sean Albert, Don Scanlon, Alice Russell, Joanne McManus Staff— Dave Johnson, Robert Eaton, Ryan Larson Approval of Minutes: Don Scanlon moved to approve the minutes of the January 21, 2015 meeting. Alice Russell seconded the motion. The motion passed unanimously. Business Items A. Project Update — Ryan Larson from the City's Public"Works Department°provided updates to the Commission on the status of the Duwamish Gardens project as well s the potential Chinook Winds site. Dave Johnson presented information to the Commission on the classroomin Phase II of the Duwamish Hill Preserve. Commissioners offered input and`feedback including how ni a and,,attractive it is while also noting the potential for vandalism and wanting the surface to`be "safe for walking Mr. Johnson will tzcforward the feedback to the designer. B. Commission Appointments — Alice Russell's term on the Commission expires in March 2015 and expressed It t=".' "tea` i , ' her desire to not be re -appointed. However, she did agree to reappointment until a replacement is found. Staff noted that searchtfor replacement will begin immediate y. , C. Department Update ,Staff informed the Commission of department updates including the upcoming Dr. Seuss event on 2/26;'andnaintenance closure at the Community Center from March 16-22. . -NZN, ''' D. Park Rules -and Regulations Staff shared the progress of the work of updating the Park Rules and Regulations. Ahce:.Russell moved to app o e the direct on that staff is going on this update. Joanne McManus seconded the motion\The,motion passed unanimously. Other A. Staff presented updated information on the—Development Agreement for the proposed hotel at 90 Andover Park East'(also known` s('Pocket Park"). Much discussion ensued about the 3 different options being presented: 1):Pocket Park;r2) Cul-de-sac to Landscaping, and 3) Cul-de-sac to Parking. Don Scanlon moved to reject option 3:,,Joanne McManus seconded the motion. The motion passed unanimously. Adjournment: Alice Russell moved to adjourn at 7:25pm. The motion was seconded by Joanne McManus. The motion passed unanimously. Attachment C Analysis of the proposal as it relates to the regulations in the shoreline zone State Shoreline requirements are implemented through the Shoreline Overlay District in the Tukwila Zoning Code (Tukwila Municipal Code (TMC) 18.44). Tukwila's shoreline regulations were updated in October, 2011 when the Department of Ecology approved the City's new Shoreline Master Program (SMP) and implementing regulations. If the Council decides to enter into the development agreement for the use of public right-of-way for the hotel development, the project is still subject to obtaining approval of a Shoreline Substantial Development Permit by the Community Development Director and Design Review approval by the Board of Architectural Review. What is the process for the shoreline permit? A Shoreline Substantial Development Permit is required for the construction of a hotel at the property located at 90 Andover Park East. The decision on this permit is made administratively by the Director of the Department of Community Development after the expiration of a 30 day public notice period. As part of that process, a detailed staff report that analyzes the proposal with respect to the City's Shoreline Master Program is prepared and a decision is rendered. The City's decision is sent to the Department of Ecology for its review. There is a 21 day appeal period on Shoreline Substantial Development Permits and no construction may occur during that time. What is the shoreline environment designation around the subject site? The shoreline environment along the west side of the Green/Duwamish river bank from I-405 to the south city limits is Urban Conservancy. The shoreline in this area is part of the Tukwila 205 Levee. What is the shoreline zone and shoreline buffer in this area? The shoreline zone is the entire 200 feet from the ordinary high water mark (OHWM) of the River. Within the 200 foot shoreline jurisdiction, there is a shoreline buffer, which in this area is 125 feet from the OHWM due to the presence of 205 levee. Also, it is important to note that if there is a road that runs parallel to the river through the buffer, the buffer ends on the river side of the existing improved street or roadway. See attached map that shows the shoreline buffer around the subject site. What uses are allowed in the shoreline buffer area? TMC 18.44.050 lists the permitted uses in the shoreline buffer of the Urban Conservancy environment. Parks and maintenance of existing streets and rights-of-way are permitted in the buffer area. Additionally, any proposed project in the shoreline zone is reviewed to ensure that the proposed use is consistent with TMC 18.44.030 - Shoreline Use Matrix and the underlying zoning. The current proposal to build a hotel at the subject site is a permitted use outside the shoreline buffer. What other shoreline requirements will apply to the proposed project? As part of the shoreline permit review process the proposed project will be reviewed to ensure the following code requirements are met: a) TMC 18./11.070 C. i) General Standards to meet standards of the underlying zoning district. ii) Setbacks and site configuration requirements. iii) Height Restrictions of 15 feet within the river buffer area and 45 fret between the outside edge of the buffer and 200 feet of the OHWM. iv) Lighting to meet minimum lighting levels and at the same time preventing spillover on the river channel. v) •.Off street parking and loading — requirements to screen parking, loading or storage facilities located between the river and any building. b) TMC 18.44.080 Vegetation and Landscaping: The project will be reviewed for consistency with the Shoreline Master Program's vegetation and landscaping requirements. Please note that on properties located behind publicly maintained levees, an applicant is not required to remove invasive vegetation or plant native vegetation within the river buffer. However retention of existing trees; planting standards for interior parking lot and yard landscaping standards are required along with specific vegetation management standards including limitations on use of pesticides. c) TMC 18.44.100 Public Access: The project will be reviewed for consistency with the public access requirements. As part of the development agreement, the developer has agreed to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail. d) Analysis of "no net loss of the ecological function" shall be done. This analysis shall take into consideration how much vegetation currently exists within the 200 foot shoreline jurisdiction; what is the condition of the shoreline; and how the proposed project impacts the shoreline. This analysis takes into consideration if any fill is proposed along the shoreline; if any stormwater will be discharged to the river; and if there is any alteration of the vegetation. If any loss of ecological function is anticipated then the loss is mitigated through one or a combination of the mitigation sequencing steps identified in the SMP. Shoreline Buffer: 90 Andover Park East Attachment D January 27, 2015 Ms. Minnie Dhaliwal Planning Supervisor City of Tukwila 6300 Southcenter Boulevard, Suite 100 Tukwila, WA 98188 Sent via email: Minnie.Dhaliwal@TukwilaWA.gov RE: Proposed hotel to be located at 90 Andover Park East by Tukwila TSD LLC Dear Ms. Dhaliwal: We have reviewed the attached three development scenarios that include design options for development of our proposed hotel and the adjacent parking area and/or pocket park that would allow shared use parking in the right-of-way of Christensen Road. We are seeking approval of one of the options so that we may finalize a Development Agreement that would allow shared use parking in exchange for the selected option. We want the City to select the Scenario that is best suited for their needs; however, we are of the opinion that Option 3, which would maximize parking for the park and hotel and allow for development of 101 spaces (53 on-site hotel spaces and 48 off-site spaces along Christensen Road) is the best option for the City, Public, and hotel. The cost for development of this scenario is approximately $40,140 which would include a payment of $145,897 to the City for utilization as deemed most appropriate for the City's needs. The second preferred option is Option 2. This Scenario would include landscaping the cul-de sac area at the north end of Christensen Road which would allow for development of 98 spaces (53 on-site hotel spaces and 45 off-site spaces along Christensen Road). The cost of this scenario is estimated to be $92,188 with a residual amount of $93,849 being paid to the City for utilization as deemed most appropriate for the City's needs. The third preferred option is Option 1. This scenario would include development of the existing cul de sac into a pocket park as initially proposed which would allow for development of 98 spaces (53 on-site hotel spaces and 45 off-site spaces along Christensen Road). The cost of this scenario is estimated to be $186,037 less $10,000 that will be paid to the City for use along the Green River Shoreline or for other appropriate uses. .Ms. Minnie Dhaliwal January 27, 2015 Page 2 The proposed hotel will include 92 rooms with no restaurant and only a board room and one small meeting room which should minimize the amount of parking required (94 spaces required per hotel company). Most of the hotel's parking will be required during the late evening hours with minimal parking needed during daylight hours. We have also attached a summary of three different hotels' parking requirements at various times of the daylight hours. Based on our experience, guests will require minimal parking during the daytime hours which should leave more than adequate parking for the public (see the attached parking summary). Our architect cannot finalize plans until we have approval to proceed. We have already acquired the site and would greatly appreciate a timely decision so that we might move forward with the preliminary design that must then be submitted to the City for.review and approval before we can get building permits. We thank you for your assistance and look forward to expediting the Development Agreement. Sincerely, Parking Stats: Based on the hotels we operate within King County in neighboring cities close to Tukwila and Eastern Washington, this is an example of what we observed from the hotel parking lot. All three hotels include one board room and one hotel also has an additional meeting room that seats 50 persons (p). None of the hotels has a restaurant. The following tables show the occupied rooms for the day and number of cars parked at the designated hours surveyed. Hotel 1 [60] 1 Board room Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 38 20 24 22 11 AM — Cars in lot 3 4 4 2 5 PM — Cars in Lot 1 1 7 3 Hotel 2 [100] 1 Board Room & 1 Meeting Room 50p Friday/Sat Sunday Mon — Wednesday Thursday . Occupied Rooms 26 17 65 51 11 AM — Cars in Lot 7 2 5 4 5 PM — Cars in Lot 3 3 18 6 Hotel 3 [85] 1 Board room Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 65 18 37 32 11 AM — Cars in Lot 6 7 6 4 5 PM — Cars in Lot 5 4 10 7 1- Q W a_ w 0 0 z PROPERTY LINE OPTION I - POCKET PARK EXISTING CURB LINE TUKWILA PARKWAY 114 HOTEL 5 -STORY 59,170 SQ. FT. • 92 UNITS N I I a 53 ONS TE PARKING SPACES C (C I C I C I C I C I C �ANDS�AFING C I C 4fFF ITE PAR NG SITE PLAN - OPTION I I'=50.0' 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN XPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale Sweene. ARCHITECT 1/22/15 5715163rd Placa S.E 13011wIse. WA 95006 625-260$%9 OPTION 2 - CUL DE SAC INTO LANDSCAPING ANDOVER PARK EAST PROPERTY LINE TUKWILA EXISTING CURB LINE �_'1' i PARK i LANDSCAPING \` \ I �. I PATIO HOTEL 5 -STORY 59,170 SQ. FT 92 UNITS LS & TYPICAL PARKING =fRACE 9'X19' b4 53 ONSITE PARKING SPACES 1CICICICICI C LANDSCAPING AR IN I I c I OF SI S AC El, CHRISTENSEN ROAD 41 OFF ITE PAR t'r N SITE PLAN - OPTION 2 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL NG RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TD 27 HOLIDAY INN XPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale ,jweenecJ. ARCHITECT 1/22/15 5715 143rd Place 5.E Bellevue. WA 98006 425260-8969 OPTION 3 - CUL DE SAC INTO. PARKING 1- Q W 1q a a 0 z PROPERTY LINE EXISTING CURB LINE TUKWILA PARS AY nf4 PATIO HOTEL 5 -STORY 59,170 SQ. FT. 92 UNITS WALKWAY ost Aig won • 1L PARKING S'ACES t & TYPICAL PARKING ZZZ4CE 9'X19' 6ccIc N CICIC b4 c J 53 ONSITE PARKING SPACES CC -LANDSCAPING C C C C C C c C C C C CHRISTENSEN ROAD 4>� OFIITE PARKING SITE PIAN -OPTION 3 1•=50.0 53 ONSITE PARKING SPACES 48 OFFSITE PARKING SPACES 101 TOTAL woo MIME RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TD 27 HOLIDAY INN kXPRESS TULWILA, WA TUKWILA TSD L.L.C. Dae ,,jvv necJ, ARCHITECT 1/22/15 5715 143Rd Place S.E. 8e1hevue, WA 98006 425-260-8969 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND TUKWILA TSD LLC, FOR THE SHARED USE OF PARKING IN THE RIGHT-OF-WAY OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST I. PREAMBLE THIS DEVELOPMENT AGREEMENT is made and entered into this day of , 2015, by and between the City of Tukwila, a noncharter, optional code Washington municipal corporation, hereinafter the "City," and Tukwila TSD LLC, a (corporation, limited partnership, partnership, etc.) organized under the laws of the State of Washington, hereinafter the "Developer." II. RECITALS WHEREAS, the Developer desires to develop a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, one parking space per guest room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District; and WHEREAS, the Developer has submitted a site plan showing the required number of parking stalls for the hotel cannot be accommodated as surface parking on the project site; and WHEREAS, the Developer proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, the City of Tukwila is the owner of the Christensen Road right-of-way, which includes undeveloped area adjacent to the project's eastern property line, paved street, parking, and cul-de-sac areas; and WHEREAS, the parking area in the right-of-way of Christensen Road is currently used by members of the public for access to the Green River Trail, shoreline, and parks areas; and WHEREAS, hotel parking spaces are expected to be used primarily in the evening and nighttime hours; parking spaces for trail, shoreline, and parks access are expected to be used during daylight hours; and WHEREAS, the Developer proposes to add parking spaces within the undeveloped right-of- way area adjacent to the hotel site and to reconfigure existing spaces to increase the number of parking spaces that would be shared for hotel use and the public for access to the Green River Trail; and 1 WHEREAS, all parking spaces within the right-of-way area will be shared and at least four/seven spaces will be designated for non -hotel users to ensure access to the Green River Trail for members of the public; and WHEREAS, the Developer proposes to maintain the parking area within the right-of-way as outlined in Exhibit 2 for the length of this agreement; and WHEREAS, the vision for parking areas within the Transit Oriented Development (TOD) Neighborhood in the Southcenter Subarea Plan is that "parking will be accommodated by a combination of off- and on -street parking spaces/lots" and shared parking facilities. "Such facilities can be shared between public and private uses" (p. 19); and WHEREAS, the Developer proposes to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail; and WHEREAS, implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan include "Seek opportunities for public/private partnerships;" and WHEREAS, a through -way from Andover Park East to Christensen Road will be constructed as part of the project to replace the emergency vehicle maneuvering function of the cul-de-sac; and WHEREAS, uses that provide public access are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan and the proposed development furthers this goal; and WHEREAS, the Washington State Legislature has authorized the execution of a development agreement between a local government and a person having ownership or control of real property within its jurisdiction (RCW 36.70B.170(1)); and WHEREAS, a development agreement must set forth the development standards and other provisions that shall apply to, govern and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement (RCW 36.70B.170(1)); and WHEREAS, for the purposes of this development agreement, "development standards" includes, but is not limited to, all of the standards listed in RCW 36.70B.170(3); and WHEREAS, a development agreement must be consistent with the applicable development regulations adopted by a local government planning under chapter 36.70A RCW (RCW 36.70B.170(1)); and 2 WHEREAS, Tukwila Municipal Code Section 18.86.030 explicitly allows for flexibility in development standards applicable to a property developed under a development agreement "to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards"; and WHEREAS, this Development Agreement by and between the City of Tukwila and the Developer (hereinafter the "Development Agreement"), relates to the development known as the 90 Andover Park East Hotel, which is located at: 90 Andover Park East (hereinafter the "Subject Property"); and WHEREAS, a development agreement must be approved by ordinance or resolution after a public hearing (RCW 36.70B.200); and WHEREAS, a public hearing for this Development Agreement was held on November 24, 2014, and the City Council approved this Development Agreement by Ordinance No. on ; and NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows: III. AGREEMENT Section 1. The Project. The Project is the development and use of the Subject Property, consisting of 0.39 acres (approximately17,000 square feet) in the City of Tukwila located at 90 Andover Park East and a portion of Christensen Road right-of-way for a 92 -room 5 -story hotel and 45( phon4) 318.(op ion3) shared parking spaces on Christensen Road right-of-way, as shown on Exhibit 2. Section 2. The Subject Property. The Subject Property and right-of-way are legally described in Exhibit 1, attached hereto and incorporated herein by this reference. Section 3. Definitions. As used in this Development Agreement, the following terms, phrases and words shall have the meanings and be interpreted as set forth in this Section. a) "Adopting Ordinance" means the Ordinance which approves this Development Agreement, as required by RCW 36.70B.200. b) "Council" means the duly elected legislative body governing the City of Tukwila. c) "Design Guidelines" means the Tukwila Design Manual, as adopted by the City. d) "Director" means the City's Community Development Director. e) "Effective Date" means the effective date of the Adopting Ordinance. 3 1) "Existing Land Use Regulations" means the ordinances adopted by the City Council of Tukwila in effect on the Effective Date, including the adopting ordinances that govern the permitted uses of land, the density and intensity of use, and the design, improvement, construction standards and specifications applicable to the development of the Subject Property, including, but not limited to the Comprehensive Plan, the City's Official Zoning Map and development standards, the Design Manual, the Public Works Standards, SEPA, Concurrency Ordinance, and all other ordinances, codes, rules and regulations of the City establishing subdivision standards, park regulations, building standards. "Existing Land Use Regulations" does not include non -land use regulations, which includes taxes and impact fees. g) "Landowner" is the party who has acquired any portion of the Subject Property from the Developer who, unless otherwise released as provided in this Agreement, shall be subject to the applicable provisions of this Agreement. The "Developer" is identified in Section 5 of this Agreement. h) "Project" means the anticipated development of the Subject Property, as specified in Section 1 and as provided for in all associated permits/approvals, and all incorporated exhibits. i) "Vesting date" means the date a valid and fully complete building permit application for the hotel is submitted to the City of Tukwila. Section 4. Exhibits. Exhibits to this Agreement are as follows: A. Exhibit 1 - Legal description of the Subject Property and the right-of-way. (Qption4bi ) B. Exhibit 2 - Conceptual Site Plan (Op i nota not 42 or Option 3 Section 5. Parties to Development Agreement. The parties to this Agreement are: A. The "City" is the City of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188. B. The "Developer" or Owner is a private enterprise which owns the Subject Property in fee, and whose principal office is located at 21109 66th Avenue South, Kent, WA 98032. C. The "Landowner." From time to time, as provided in this Agreement, the Developer may sell or otherwise lawfully dispose of a portion of the Subject Property to a Landowner who, unless otherwise released, shall be subject to the applicable provisions of this Agreement related to such portion of the Subject Property. Section 6. Project is a Private Undertaking. It is agreed among the parties that the Project is a private development and that the City has no interest therein except as explicitly outlined in this Agreement and as authorized in the exercise of its governmental functions. 4 Section 7. Effective Date and Term. This Agreement shall commence upon the effective date of the Adopting Ordinance approving this Agreement, and shall continue in force for a period of 50 years, with the option to extend the Agreement an additional 30 years, unless extended or terminated as provided herein. Following the expiration of the term or extension thereof, or if sooner terminated, this Agreement shall have no force and effect, subject however, to post -termination obligations of the Developer or Landowner. Section 8. Terms. A. Design • The Project at 90 Andover Park East shall be allowed non-exclusive use rights for the parking spaces and drive aisle area of Christensen Road (as depicted in Exhibit 2) to meet minimum parking requirements for the development. This Agreement shall not preclude the City from entering into additional agreements regarding use of this area by other private parties. The Project will be subject to the development regulations in effect at the time of complete permit application submittals. • The site plan attached as Exhibit 2 is included with this Agreement for reference only, and has not yet been approved as of the date of execution of this Agreement. The site plan shall be subject to modifications during review of the required land use permits. • As a result of the cul-de-sac closure, public access through 90 Andover Park East is hereby allowed and provided for. • The Developer shall construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail. • All shared parking stalls will be constructed and maintained to Public Works Infrastructure Design and Construction Standards. • The Developer shall be responsible for making a payment of 8,49(option ;2)7 $145,897(option`3) to the City of Tukwila. This payment shall be made prior to the issuance of the building permit for the hotel. B. Construction • The cost of permits and plans required for construction of the parking area shall be borne by the Developer and submitted as part of the permits for the hotel. The parking in the right-of-way must receive final approval by all required City departments prior to issuance of the Certificate of Occupancy for the hotel. C. Maintenance • The parking area shall be subject to inspections every five years. • Developer is solely responsible for the cost and maintenance of the parking spaces. New striping of the parking spaces shall be completed every three years. 5 D. Operations • A total of 92 parking spaces are required for the 92 -room hotel as proposed. The site plan in Exhibit 2 includes 98(p on2) }I =101(opti_ on3) parking spaces. All parking spaces within the right-of-way of Christensen Road shall be for the joint use of the hotel users and members of the public and at least four(option2) s_even(option3) spaces shall be designated for non -hotel users to ensure access to the Green River Trail for members of the public. If the final design of the hotel is for less than 92 rooms, then any additional spaces after calculating one space per room plus two spaces shall be designated for non - hotel users. Section 9. Vested Rights. During the term of this Agreement, unless sooner terminated in accordance with the terms hereof, in developing the Subject Property consistent with the Project described herein, Developer is assured, and the City agrees, that the development rights, obligations, terms and conditions specified in this Agreement, are fully vested in the Developer and may not be changed or modified by the City, except as may be expressly permitted by, and in accordance with, the terms and conditions of this Agreement, including the Exhibits hereto, or as expressly consented thereto by the Developer. Section 10. Minor Modifications. Minor modifications from the approved permits or the exhibits attached hereto may be approved in accordance with the provisions of the City's code, and shall not require an amendment to this Agreement. Section 11. Further Discretionary Actions. Developer acknowledges that the Existing Land Use Regulations contemplate the exercise of further discretionary powers by the City. These powers include, but are not limited to, review of additional permit applications under Shoreline Substantial Development Permit and Design Review. Nothing in this Agreement shall be construed to limit the authority or the obligation of the City to hold legally required public hearings, or to limit the discretion of the City and any of its officers or officials in complying with or applying Existing Land Use Regulations. Section 12. Existing Land Use Fees and Impact Fees. A. Land use fees adopted by the City by ordinance as of the Effective Date of this Agreement may be increased by the City from time to time, and are applicable to permits and approvals for the Subject Property, as long as such fees apply to similar applications and projects in the City. B. All impact fees shall be paid as set forth in the approved permit or approval, or as addressed in Chapters 16.26 and 9.48 of the Tukwila Municipal Code. IV. GENERAL PROVISIONS Section 1. Assignment of Interests, Rights, and Obligations. This Agreement shall be binding and inure to the benefit of the Parties. No Party may assign its rights under this Agreement without the written consent of the other Party, which consent shall not unreasonably be withheld. This Agreement shall be binding upon and shall inure to the benefit of the heirs, successors, and assigns of the Developer and the City. 6 Section 2. Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein. Section 3. Severability. The provisions of this Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity of its application to other persons or circumstances. Section 4. Termination. This Agreement shall expire and/or terminate as provided below: A. This Agreement shall expire and be of no further force and effect if the Developer fails to submit a complete building permit application for the construction of the hotel within one year, or if the Project construction is not completed within three years, of the effective date of this Agreement; or if at any time after Project construction is completed, Developer fails to maintain the parking areas according to the terms of this Agreement. Nothing in this Agreement shall extend the expiration date of any permit or approval issued by the City for any development. B. This Agreement shall expire and be of no further force and effect if the Developer does not construct the Project as contemplated by the permits and approvals identified in this Agreement, or submits applications for development of the Subject Property that are inconsistent with such permits and approvals. C. This Agreement shall terminate at such time as a change of use occurs at 90 Andover Park East, or at such time as 90 Andover Park East is redeveloped. D. This Agreement shall terminate in the event the Washington State Department of Transportation (WSDOT) widens Interstate 405 in the vicinity of the Subject Property, or should any other project or condition arise that requires reconfiguration of Tukwila Parkway and/or the Project parking area. E. This Agreement shall terminate upon the abandonment of the Project by the Developer. The Developer shall be deemed to have abandoned the Project if/when written notice is provided to the City that the Developer's interest in the Project has been terminated. Said notice shall be given to the City no more than 30 days after the Developer's interest in the Project is terminated. F. This Agreement may terminate pursuant to Section IV.,3, Severability, or Section IV.,10, Default, or as otherwise outlined in this Agreement. G. If the use will continue upon expiration of the term of this Agreement, the Developer shall either negotiate a new agreement with the City or provide documentation showing how the number of parking spaces required by the codes at the time of expiration will be provided. 7 Section 5. Effect upon Termination on Developer Obligations. Termination of this Agreement as to the Developer of the Subject Property or any portion thereof shall not affect any of the Developer's obligations to comply with the City Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or subdivision map or other land use entitlements approved with respect to the Subject Property, any other conditions of any other development specified in the Agreement to continue after the termination of this Agreement or obligations to pay assessments, liens, fees or taxes. Section 6. Effects upon Termination on City. Upon any termination of this Agreement as to the Developer of the Subject Property, or any portion thereof, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the property affected by such termination (provided that vesting of such entitlements, conditions or fees may then be established for such property pursuant to then existing planning and zoning laws). Section 7. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default hereof. Section 8. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. Venue for any action shall lie in King County Superior Court or the U.S. District Court for Western Washington. Section 9. Attorneys' Fees. In the event of any litigation or dispute resolution process between the Parties regarding an alleged breach of this Agreement, neither Party shall be entitled to any award of attorneys' fees. Section 10. Notice of Default/Opportunity to Cure/Dispute Resolution. A. In the event a Party, acting in good faith, believes the other Party has violated the terms of this Agreement, the aggrieved Party shall give the alleged offending Party written notice of the alleged violation by sending a detailed written statement of the alleged breach. The alleged offending Party shall have 30 days from receipt of written notice in which to cure the alleged breach unless the Parties agree, in writing, to additional time. This notice requirement is intended to facilitate a resolution by the Parties of any dispute prior to the initiation of litigation. Upon providing notice of an alleged breach, the Parties agree to meet and agree upon a process for attempting to resolve any dispute arising out of this Agreement. A lawsuit to enforce the terms of this Agreement shall not be filed until the latter of (a) the end of the cure period, or (b) the conclusion of any dispute resolution process. B. After notice and expiration of the ,30 -day period or other time period as agreed to by the Parties, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other party or Landowner to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. In addition, the City may decide to file an action to enforce 8 the City's Codes, and to obtain penalties and costs as provided in the Tukwila Municipal Code for violations of this Development Agreement and the Code. Section 11. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and is not intended to benefit any other person or entity, and no person or entity not a signatory to this Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No other person or entity not a Party to this Agreement may enforce the terms and provisions of this Agreement. Section 12. Integration. This Agreement and its exhibits represent the entire agreement of the parties with respect to the subject matter hereof. There are not other agreements, oral or written, except as expressly set forth herein. Section 13. Authority. The Parties each represent and warrant that they have full power and actual authority to enter into this Agreement and to carry out all actions required of them by this Agreement. All persons are executing this Agreement in their representative capacities and represent and warrant that they have full power and authority to bind their respective organizations. Section 14. Covenants Running with the Land. The conditions and covenants set forth in this Agreement and incorporated herein by the Exhibits shall run with the land and the benefits and burdens shall bind and inure to the benefit of the parties. The Developer, Landowner and every purchaser, assignee or transferee of an interest in the Subject Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Subject Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of a Developer contained in this Agreement, as such duties and obligations pertain to the portion of the Subject Property sold, assigned or transferred to it. Section 15. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be amended by mutual consent of all of the parties, provided that any such amendment shall follow the process established by law for the adoption of a development agreement (see RCW 36.70B.200). However, nothing in this Agreement shall prevent the City Council from making any amendment to its Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations affecting the Subject Property as the City Council may deem necessary to the extent required by a serious threat to public health and safety. Nothing in this Development Agreement shall prevent the City Council from making any amendments of any type to the Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations relating to the Subject Property. Section 16. Releases. Developer, and any subsequent Landowner, may free itself from further obligations relating to the sold, assigned, or transferred property, provided that the buyer, assignee or transferee expressly assumes the obligations under this Agreement as provided herein. 9 Section 17. Notices. Notices, demands, correspondence to the City and Developer shall be sufficiently given if dispatched by pre -paid first-class mail to the addresses of the parties as designated in Section 5. Notice to the City shall be to the attention of both the Mayor's Office and the City Attorney. Notices to subsequent Landowners shall be required to be given by the City only for those Landowners who have given the City written notice of their address for such notice. The parties hereto may, from time to time, advise the other of new addresses for such notices, demands or correspondence. Section 18. Reimbursement for Agreement Expenses of the City. Developer agrees to reimburse the City for actual expenses incurred over and above fees paid by Developer as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees and reasonable staff and consultant costs not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section, as well as any processing fees owed to the City for the Project, are paid to the City. This Agreement shall be terminated if the Developer does not pay to the City the fees provided for in this section. Upon payment of all expenses, the Developer may request written acknowledgement of all fees. Such payment of all fees shall be paid, at the latest, within 30 days from the City's presentation of a written statement of charges to the Developer Section 19. Police Power. Nothing in this Agreement shall be construed to diminish, restrict or limit the police powers of the City granted by the Washington State Constitution or by general law. Section 20. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party or a Landowner to challenge this Agreement or any provision herein, the City and Developer will collaborate to resolve such legal action. In the event such legal action cannot be resolved, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to Developer and/or Landowner(s). In such event, Developer and/or such Landowners shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to, attorneys' fees and expenses of litigation, and damages awarded to the prevailing party or parties in such litigation. Neither the City nor the Developer and/or Landowner shall settle any lawsuit without the consent of the other. The City and Developer/Landowner shall act in good faith and shall not unreasonably withhold consent to settle. Section 21. No Presumption Against Drafter. This Agreement has been reviewed and revised by legal counsel for both Parties and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreement. Section 22. Headings. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this Agreement. Section 23. Recording. Developer shall record an executed copy of this Agreement with the King County Auditor, pursuant to RCW 36.70B.190, no later than 14 days after the Effective Date. 10 Section 24. Legal Representation. In entering into this Agreement, Developer represents that it has been advised to seek legal advice and counsel from its attorney concerning the legal consequences of this Agreement; that it has carefully read the foregoing Agreement and knows the contents thereof, and signs the same of its own free act; and that it fully understands and voluntarily accepts the terms and conditions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the dates set forth below: OWNER/DEVELOPER: CITY OF TUKWILA By By Its Managing Member Tukwila TSD LLC 21109 66th Avenue South Kent, WA 98032 STATE OF WASHINGTON ) ) ss. COUNTY OF ) Its Mayor ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney On this day of _' . s ha , m µ 2015; before me personally appeared , to me known to be the individual that executed the within and foregoing instrument, and acknowledged the said instrument to be his/her free and voluntary act and deed for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 11 STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this a day of _ X2015, before me personally appeared , and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged as the of the City of Tukwila to be the free and voluntary act of said party for the uses and purposes mentioned in this instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 12 Exhibit 1 Exhibit 1: Legal Description Legal Description shall be revised based on the final decision by City Council. Exhibit 2 (Option 2) OPTION 2 - CUL DE SAC INTO LANDSCAPING 1— w ANDOVER PARK EXISTING CURB LINE TUKWILA PARK_ i ,sr PROPERTY LINE LS PATIO HOTEL 5 -STORY 59, 1 70 SQ. FT 92 UNITS LANDSCAPING la I=> -TYPICAL PARKING ua" CE 9'X19' 04 LANDSCAPING AR C C C C C C L 53 ONSITE PARKING SPACES CIC CCC ANDS AF IN c c c C C C C C IN N SITE PLAN - OPTION 2 I ^ = so' -a' 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL OF SI E. S AC S' CHRISTENSEN ROAD OFI'ITE PAR G & HOLIDAY INN XPRESS TULWILA, WA TUKWILATSD L.L.C. Dale 5wee1-1e9 ARCHITECT 5115 143rd Place S.E. Bellevue, WA 98006 425-260-8969 1/22/15 Exhibit 2(Option3) OPTION 3 - CUL DE SAC INTO PARKING EXISTING CURB LINE TUKWILA PARS 1164 PARK EAST w 0 0 Z PROPERTY LINE PATIO HOTEL 5 -STORY 59,170 SQ. FT. 92 UNITS 4 En TYPICAL PARKING 2 CE 9'X19' LANDSCAPING PARKING SA ICa Ib 53 ONSITE PARKING SPACES C I C I C I C I C I ANDSCAFINd c cicicicic c c CHRISTENSEN ROAD a 48 OFIITE PAR NG SITE PLAN - OPTION 3 53 ONSITE PARKING SPACES 48 OFFSITE PARKING SPACES 101 TOTAL NOW RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN liXPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale Sweeney ARCHITECT 1 /22/15 5715 143rd Place S.E. Bellevue, WA 98006 425-260-8969 City of Tukwila Community Affairs & Parks Committee O Verna Seal, Chair O Dennis Robertson O Allan Ekberg AGENDA Distribution: V. Seal D. Robertson A. Ekberg K. !Cruller Mayor Haggerton D. Cline C. O'Flaherty R. Turpin L. Humphrey M. Dhaliwal N. Gierloff MONDAY, FEBRUARY 23, 2015 — 5:30 PM HAZELNUT CONFERENCE Room (formerly known as CR #3) at east entrance of City Hall Item Recommended Action Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. A development agreement for the proposed hotel a. Committee direction on the Pg.1 at 90 Andover Park East. parking issue. Minnie Dhaliwal, Planning Supervisor b. Status on medical cannabis and review of b. Committee direction on Pg.25 recreational marijuana licensing. choice of ordinance (to Nora Gierloff, Community Development Deputy Director continue moratorium or to make a Zoning Code 3. ANNOUNCEMENTS change). 4. MISCELLANEOUS Next Scheduled Meeting: Monday, March 9, 2015 SThe City of Tukwila strives to accommodate those with disabilities. Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk©TukwilaWA.gov) for assistance. TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs and Parks Committee FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: February 18, 2015 SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the Development Agreement for the proposed hotel development at 90 Andover Park East; allowing the shared use of parking in the right-of-way of Christensen Road? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that the required number of parking stalls cannot be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of-way of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications that provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. This item was previously discussed by the Community Affairs Committee on November 12, 2014; Committee of the Whole held a public hearing on November 24, 2014 and it was referred back to the Community Affairs and Parks Committee on December 1, 2014. See attached memo for the information that was provided to the City Council previously on this item (Attachment A). Additionally, the Parks Commission was briefed on the pocket park proposal on January 21, 2015, and the minutes of the meeting are attached (Attachment B). DISCUSSION City Council asked staff to provide information on how the proposal complies with the City's shoreline regulations and asked the Community Affairs and Parks Committee to further review the proposal and make a recommendation to the Committee of the Whole. Additionally since the last City Council meeting the developer has come back with a couple of additional options for the City to consider, which are also attached. 1 INFORMATIONAL MEMO Page 2 In order to help facilitate decision making on this proposal it may be easier to break down the discussion into following issues: 1. Does the proposal comply with the city's shoreline regulations? 2. Does the city want to allow use of public right-of-way for shared parking for the hotel? 3. How many parking spaces should be shared between the hotel and trail users and how many should be guaranteed for the trail users? 4. What is the appropriate compensation for sharing parking in the right-of-way? 1. Does the proposal comply with the city's shoreline regulations? This area of the shoreline is designated as Urban Conservancy and the shoreline buffer ends on the river side of the existing roadway (Christensen Road). The conceptual site plan showing the hotel location and other site improvements meets the shoreline use, site setback and site configuration requirements. Detailed review of the construction plans will be done during the shoreline substantial development permit review process, which is an administrative decision issued after public notification to the interested agencies and surrounding property owners. The staff report of the shoreline permit is then sent to Department of Ecology for their review. See attached handout explaining the shoreline review process and code criteria along with the map showing the shoreline buffer (Attachment C). 2. Does the city want to allow use of public right-of-way for shared parking for the hotel? The existing site is a former gas station. The fuel canopy and the underground tanks were removed in 2007. In 2008, land use approval was granted for a 12,000 sq. ft. single story retail building that was never constructed. The existing lot is only 50,000 sq. ft. and without the shared parking agreement the likely form of development to occur on this site is single story. The current proposal to share the parking in the right-of-way would allow a five story hotel to be constructed. This form of development fits in with the vision anticipated by the Southcenter Subarea Plan for this area. The previous memo to the City Council (Attachment A) listed the goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan that are achieved by the City entering into this development agreement. The proposal includes: • Shared use of parking in the right-of-way. • Initial term of 50 years with an option to extend for 30 additional years • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway and/or the Project parking area; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. 2 INFORMATIONAL MEMO Page 3 3. How many parking spaces should be shared and how many should be guaranteed for the trail users? Tukwila Municipal Code requires one parking space per hotel room. The developer has stated that the franchise requires one parking space per hotel room plus two additional spaces. Per Smith Travel Research Report for hotels in Tukwila's general market, the occupancy rate for year 2014 varied from 80 to 90 percent during the high season (May through September) with December/January being the lowest around 60 percent; for an average annual room occupancy of 77 percent. The proposed hotel has 53 on-site parking spaces (hotel use only) and would like to share 45 parking spaces within the right-of-way (hotel and trail users). There are currently only 27 parking spaces in the right-of-way and the developer has proposed to add 18 new parking spaces within the undeveloped right-of-way; resulting in 45 spaces in the right-of-way. 41 out of 45 spaces will be shared between the hotel users and trail users and four spaces will be reserved exclusively for trail users. This allows four guaranteed spaces for the trail users but they could also park anywhere on the remaining 41 spaces. There is currently no data on the number of spaces used by trail users. However it can be stated that hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. The proposed hotel has only a small meeting room and no restaurant, therefore the parking demand is anticipated to be less than a hotel with a large meeting room/convention facility. The developer has also provided parking data for the hotels currently operated by them showing that the parking demand is less than one car per occupied room (Attachment D). 4. What is theappropriate compensation for sharing parking in the right-of-way? Since the last meeting the developer has come back with the following options for the City to consider as appropriate compensation for allowing shared use of parking: Option 1: Develop and maintain a public pocket park within the existing cul-de-sac with $10,000 payment to the City. Option 2: Replace the asphalt in the cul-de-sac area with landscaping along with a monetary payment of $93,849 to the City. Option 3: Convert the cul-de-sac into parking area with a monetary payment of $145,897 to the City. 3 INFORMATIONAL MEMO Page 4 Listed below is the summary of compensation for all three options: Compensation for sharing parking in the right-of-way Option 1:Pocket Park Option 2: Cul-de- sac to landscaping Option 3: Cul -de - sac into parking Developer shall develop and maintain a public pocket park x Developer shall maintain the parking area x x x Parking spaces for trail users 41 shared and 4 guaranteed. 41 shared and 4 guaranteed 41 shared and 7 guaranteed Developer shall construct a pedestrian connection between the intersection of Andover Park East and the Green River Trail x x x Members of the public and emergency vehicles will have access through the hotel parking lot. x x x Monetary Payment $10,000 $93,849 $145,897 Pros and Cons A public pocket park in the urban center, which complements the Green River Trail. The impervious surface in the shoreline zone is reduced. The city gets monetary payment of $10,000. The impervious surface in the shoreline zone is reduced. There is opportunity to plant native vegetation in the shoreline zone. The city gets monetary payment of $93,849. There are three additional parking spaces under this option but impervious surface increases. The city gets monetary payment of $145,897. FINANCIAL IMPACT The land is valued at $25 per square feet. The right of way area is 17,103 square feet with a land value of $427,575. The developer had previously provided a cost estimate of $186,037 for the development of the pocket park. All three options listed above cost the developer $186,037. Additionally the developer has estimated about $6000 per year in maintenance costs. There is no negative financial impact to the city under any of the three options. City Council may want to decide what could be done with the monetary payment. This decision could occur separate from the development agreement process. Some options for the City Council to consider are: • Put the money the city's tree mitigation fund • Establish a shoreline restoration fund • Designate the money towards another project in the Urban Center such as Tukwila Pond or pedestrian bridge project. 4 INFORMATIONAL MEMO Page 5 • Designate the money towards any other project on the City's Capital Improvement Program list • Put the money in the City's general fund. RECOMMENDATION Staff recommends that the city enter into the development agreement to share the parking in the right-of-way in order to facilitate the hotel development. Regarding the decision on the appropriate compensation for the shared use of right-of-way staff recommends option 2. Under this option the city will get a monetary payment of $93,849, impervious surface in the shoreline zone is reduced and the city still retains the opportunity to put in a pocket park at a future date. ATTACHMENTS A. Memo to Committee of the Whole Nov 24, 2014. B. Meeting minutes Parks Commission meeting Jan 21, 2015. C. Memo analyzing the proposal as it relates to the regulations in the shoreline zone along with the buffer map. D. Letter from the Developer with three alternative site plans. 5 City of Tukwila Attachment A Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: November 18, 2014 (Revised after Community Affairs and Parks Committee meeting on November 12, 2014) SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the proposed Development Agreement for the proposed hotel development at 90 Andover Park East that would allow the shared use of parking in the right-of- way of Christensen Road in exchange for the construction of a public pocket park? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that only 53 parking spaces can be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of- way of Christenseh Road in exchange for developing a public pocket park in the cul-de sac area of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. DISCUSSION The proposal reviewed by the Community Affairs and Parks Committee included: • Shared use of parking and drive aisle area in the right-of-way of Christensen Road, with 18 new parking spaces added by the developer within the undeveloped right-of-way area adjacent to the hotel site. The developer would also reconfigure the existing spaces to increase the number of parking spaces in the right-of-way. A total of 45 parking spaces would be available within the right-of-way; out of which 41 will be shared between the hotel use and members of the public with four spaces exclusively reserved for non -hotel users including those who want to access the Green River Trail. • In exchange for the shared parking the developer shall: a) Develop and maintain a public pocket park within the existing cul-de-sac area. b) Maintain the park and the parking area for the term of the agreement. c) Provide public access through the subject property to compensate for the cul-de-sac closure. d) Construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and the Green River Trail. 7 INFORMATIONAL MEMO Page 2 • Initial term of 50 years with an option to extend for 30 additional years. • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations for the park and the parking areas; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. This proposal furthers the following goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan: • The Southcenter Subarea Plan envisions that parking will be accommodated by a combination of off- and on -street parking spaces/lots and shared parking facilities within the Transit Oriented Development (TOD) Neighborhood. • The Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...." • The implementation strategies for policy 10;2.1 of the Tukwila Comprehensive Plan includes, "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships". • Uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan. The pocket park and shared parking are considered mutually beneficial to the City and the developer for the following reasons: • There are currently only 27 parking spaces in the right of -way area and the proposal will provide 45 parking spaces. • Hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. • The pocket park will complement the Green River Trail. • The proposal facilitates higher intensity development that is envisioned by the Comprehensive Plan for this area. • The cost of construction and maintenance of the pocket park and the parking spaces will be paid for by the developer in exchange for the shared use of the parking. • Members of the public and emergency vehicles will have access through the hotel parking lot. 8 INFORMATIONAL MEMO Page 3 Alternative proposal discussed at the Community Affairs and Parks Committee: Committee's Recommendation: At the Community Affairs and Parks Committee an alternative that would allocate the funds specified in the development agreement for the pocket park to go toward a tree planting project in the area of the river bank across Christensen Road was discussed. This alternative was recommended by the Committee as it advances the goals of regional efforts to restore aquatic ecosystems and salmon habitat in the Green-Duwamish watershed. Under this proposal, the developer would provide the money and the City could assume responsibility for the project, either alone or in collaboration with a group already doing this kind of restoration work. The Committee supported the alternative if it did not delay the agreementor add costs for the developer. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional analysis relating to the alternative proposal. The Committee of the Whole would then select the preferred option. Staff has further reviewed the alternative proposed by the Committee with the City's Public Works and Parks Department and listed below is their response. A map showing the riverbank area in the general vicinity of the subject site is attached to this memo. The total area from south of 1-405 to the bend in the River is approximately 73,000 square feet. The project cost for any shoreline restoration project that includes site preparation and planting is approximately $2 per square foot. Review of the Committee's recommendation by Bob Giberson, Public Works Director: Following projects are underway that might preclude the quick approval of a Green River planting plan adjacent to 90 Andover Park East along the river: a) Green River System Wide Improvement Framework (SWIF) process will be ongoing through early 2015. It is a US Army Corp of Engineers planning process that is being completed by King County Flood Control District. It involves ongoing engagement With state/federal agencies, business community, environmental community, WRIA9 and other agencies. It will include a prioritized list of capital projects to achieve flood protection goals and vegetation management plans to address large trees and shrubs location with respect to levees. More information about SWIF is available online at http://www.ki.ngc-ounty.gov/environment/w1r/sections-programs/river- floodplain-section/capital-proiects/rrreen-river-system-wide.-i mprovement- framework.aspx b) The Tukwila 205 Levee Certification effort will not be completed for at least one year. The biggest unknown to obtain FEMA levee accreditation approval is the scope of repairs and/or improvements. Any required repairs and/or improvements will jeopardize any recent plantings. c) The TUC Pedestrian/Bicycle Bridge final design may include habitat mitigation near the bend in the river to the south of 90 Andover Park East. The design for this project will be completed in 2015 and constructed by 2017 As an alternative option, it appears that there is sufficient contingency in the pocket park cost estimate to allow the developer to contribute $10,000 towards a planting plan for the riverbank. Once a planting plan is approved by the necessary agencies, the developer's funds can be used as a match to other available funds for a complete habitat enhancement planting effort in this vicinity. INFORMATIONAL MEMO Page 4 Review of the Committee's recommendation by Rick Still, Parks and Recreation Director: Background on why the pocket park is a valid proposal: a) A system of pocket parks in the Tukwila Urban Center (TUC) is vital to meeting the recreation and social needs of the community because purchasing larger parcels in this area is cost prohibitive at this time. The few parks currently located in TUC are heavily used by patrons for spending time away from offices on breaks, gaining access to the trail system, meeting people to gather and socialize, for exercise at or to visit as a part of their exercise routine, for access while walking to the train, and to enjoy nature while in an urban setting. b) In 2006, staff met with a developer who introduced the concept of using the Christensen Trail parking area as part of their development located between Christensen Road and Andover Park East. Through discussions with this developer, staff hired a landscape architect to initiate a site study and prepare a conceptual design for a pocket park at the turnaround at the north end of Christensen Road. This conceptual design was utilized with several developers throughout the past seven years. c) The Christensen Road pocket park provides an area on the north end of the TUC where there currently is not a recreational opportunity for the community. The area is easily accessed from local businesses and residential areas near City Hall. Hotel development in this area increases the need for a park since many of the people staying in hotels will be using the trail to access Starfire Sports at Fort Dent Park. The park will help contribute to a more connected community and build a sense of community pride. Staff has looked at ways to accommodate tree planting along the Green River while maintaining construction of the pocket park. Staff believes that with value engineering of the pocket park the developer could reduce the construction cost to allow approximately $10,000 for tree plantings along the Green River Trail at Christensen Road. The Committee of the Whole has the following options: 1. Approve the development agreement as originally proposed to allow shared parking in the right-of-way in exchange for building and maintaining a pocket park. 2. Approve the development agreement for the altemative proposed by the Community Affairs and Parks Committee to allow shared parking in the right-of-way in exchange for getting a monetary payment for the Green/Duwamish riverbank planting project. 3. Approve the development agreement as originally proposed with an amendment to include $10,000 payment by the developer towards Green/Duwamish River restoration/planting projects or to implement the goals and policies of the Comprehensive Plan related to Urban -Forestry. FINANCIAL IMPACT There is no financial impact to the City as all costs associated with the development and maintenance of the pocket park and additional parking shall be borne by the developer. The developer's cost estimate for the development of the pocket park and additional parking area is $186,037. Also, the annual maintenance costs are anticipated to be $6000 per year and subject to inflation over the term of the agreement. The land value of the right -of -area with the shared parking is $427,575 ($25 per square foot for 17,103 square feet total area). 10 INFORMATIONAL MEMO Pages RECOMMENDATION The Council is being asked to hold a public hearing on this item and select one of the options listed above. Staff recommends approving the development agreement as originally proposed with an amendment to include $10,000 payment by the developer for the Green%Duwamish River restoration/planting project or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. If the Council selects this option then Section 8 of the Development Agreement will be revised to include a clause stating the developer shall be responsible to make a payment of $10,000 for Green/Duwainish River restoration/planting projects or to implement the goals and policies of the City's Comprehensive Plan related to Urban Forestry. This payment shall be required prior to the issuance of the building permit for the hotel. Also, Exhibit 3 shall be amended to reflect this payment. Staff also recommends adding two items to the 2015 work plan: a) Review current policies regarding non-public uses in the public right-of-way. b) Review policies/projects for restoration/planting projects of the Green/Duwamish riverbank and how the city will implement the goals and policies of City's Comprehensive Plan relating to Urban Forestry. ATTACHMENTS Vicinity Map Draft Ordinance Development Agreement Exhibit 1- Legal Description Exhibit 2 -Conceptual Site Plan Exhibit 3 -Conceptual Site Plan of the Pocket Park; list of park amenities with construction cost estimates; and land value.estimates. Map showing the riverbank in the vicinity of the subject site Minutes from Community Affairs and Parks Committee meeting Nov 12, 2014. 11 Attachment B TUKWILA PARKS & RECREATION GOOD. HEALTHY FUN PARKS COMMISSION MINUTES January 21, 2015 5:30pm Tukwila Community Center Call to Order: Committee Vice -Chairperson Don Scanlon called the meeting to order at 5:37pm. Attendance: Commissioners — Don Scanlon, Alice Russell, Joanne McManus Staff — Dave Johnson Approval of Minutes: Alice Russell moved to approve the minutes of the November 19, 2014 meeting. Joanne d..... :3':':.x.. McManus seconded the motion. The motion passed unanimously. Business Items A. Project Update — The Commission reviewed the Project Update included in the Agenda Packet. B. Commission Appointments—Staff informed the Commission that Julie Lee has resigned her position on the Commission due to time constraints and willibegin advertising to fill the vacancy. Hassan Abdi's position on the Commission as a Student Representative expires in June 2015 Hassan will work with staff to recruit a student to replace him Alice Russell's term`;;on the'Commission expires in March 2015. C. Department Update — Staff informed the Commission of department updates including the MLK Day of Service at TCC and Duwamish Hill Preserve, transfer of Pool operations to the MPD, and recent clean-up work at Crystal Spring Park. Staff provided updates and the Commission offered feedback to the staff on the following items: 4 ..ri 1. Duwamish Gardens Commission'asked to begin considering names for the site. The Commission would like to get some historical information about the site. Also suggested the idea of holding a public contest to name the site. Golf CartPurchase at'Foster Golf Links The Commission supports the purchase. Chinook Wind. project_' - .:The Commission supports this project, especially as it ties in with Duwamish Gardens and Duwamish Hilf Preserve. Pocket Park project —The Commission supports the development of the originally proposed Pocket Park design "along Christensen Road. Other A. Don Scanlon attended the City training on the Open Government Trainings Act on January 12, 2015 and provided a summary to the Commission. B. Joanne McManus asked staff to look into jackets or some other apparel for the Commissioners as an identifier when meeting with the community and out in the public. C. Don Scanlon noted that due to pollution, nearly all of the coho eggs in the Southgate Creek incubator have died. Don is working with Public Works on this. Adjournment: Alice Russell moved to adjourn at 6:13pm. The motion was seconded by Joanne McManus. The motion passed unanimously. 13 Attachment C Analysis of the proposal as it relates to the regulations in the shoreline zone State Shoreline requirements are implemented through the Shoreline Overlay District in the Tukwila Zoning Code (Tukwila Municipal Code (TMC) 18.44). Tukwila's shoreline regulations were updated in October, 2011 when the Department of Ecology approved the City's new Shoreline Master Program (SMP) and implementing regulations. If the Council decides to enter into the development agreement for the use of public right-of-way for the hotel development, the project is still subject to obtaining approval of a Shoreline Substantial Development Permit by the Community Development Director and Design Review approval by the Board of Architectural Review. What is the process for the shoreline permit? A Shoreline Substantial Development Permit is required for the construction of a hotel at the property located at 90 Andover Park East. The decision on this permit is made administratively by the Director of the Department of Community Development after the expiration of a 30 day public notice period. As part of that process, a detailed staff report that analyzes the proposal with respect to the City's Shoreline Master Program is prepared and a decision is rendered. The City's decision is sent to the Department of Ecology for its review. There is a 21 day appeal period on Shoreline Substantial Development Permits and no construction may occur during that time. What is the shoreline environment designation around the subject site? The shoreline environment along the west side of the Green/Duwamish river bank from 1-405 to the south city limits is Urban Conservancy. The shoreline in this area is part of the Tukwila 205 Levee. What is the shoreline zone and shoreline buffer in this area? The shoreline zone is the entire 200 feet from the ordinary high water mark (OHWM) of the River. Within the 200 foot shoreline jurisdiction, there is a shoreline buffer, which in this area is 125 feet from the OHWM due to the presence of 205 levee. Also, it is important to note that if there is a road that runs parallel to the river through the buffer, the buffer ends on the river side of the existing improved street or roadway. See attached map that shows the shoreline buffer around the subject site. What uses are allowed in the shoreline buffer area? TMC 18.44.050 lists the permitted uses in the shoreline buffer of the Urban Conservancy environment. Parks and maintenance of existing streets and rights-of-way are permitted in the buffer area. Additionally, any proposed project in the shoreline zone is reviewed to ensure that the proposed use is consistent with TMC 18.44.030 - Shoreline Use Matrix and the underlying zoning. The current proposal to build a hotel at the subject site is a permitted use outside the shoreline buffer. 15 What other shoreline requirements will apply to the proposed project? As part of the shoreline permit review process the proposed project will be reviewed to ensure the following code requirements are met: a) TMC 18.44.070 C. i) General Standards to meet standards of the underlying zoning district. ii) Setbacks and site configuration requirements. iii) Height Restrictions of 15 feet within the river buffer area and 45 feet between the outside edge of the buffer and 200 feet of the OHWM. iv) Lighting to meet minimum lighting levels and at the same time preventing spillover on the river channel. v) Off street parking and loading — requirements to screen parking, loading or storage facilities located between the river and any building. b) TMC 18.44.080 Vegetation and Landscaping: The project will be reviewed for consistency with the Shoreline Master Program's vegetation and landscaping requirements. Please note that on properties located behind publicly maintained levees, an applicant is not required to remove invasive vegetation or plant native vegetation within the river buffer. However retention of existing trees; planting standards for interior parking lot and yard landscaping standards are required along with specific vegetation management standards including limitations on use of pesticides. c) TMC 18.44.100 Public Access: The project will be reviewed for consistency with the public access requirements. As part of the development agreement, the developer has agreed to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail. d) Analysis of "no net loss of the ecological function" shall be done. This analysis shall take into consideration how much vegetation currently exists within the 200 foot shoreline jurisdiction; what is the condition of the shoreline; and how the proposed project impacts the shoreline. This analysis takes into consideration if any fill is proposed along the shoreline; if any stormwater will be discharged to the river; and if there is any alteration of the vegetation. If any loss of ecological function is anticipated then the loss is mitigated through one or a combination of the mitigation sequencing steps identified in the SMP. 16 Shoreline Buffer: 90 Andover Park East Attachment D January 27, 2015 Ms. Minnie Dhaliwal Planning Supervisor City of Tukwila 6300 Southcenter Boulevard, Suite 100 Tukwila, WA 98188 Sent via email: Minnie.Dhaliwal@TukwilaWA.gov RE: Proposed hotel to be located at 90 Andover Park East by Tukwila TSD LLC Dear Ms. Dhaliwal: We have reviewed the attached three development scenarios that include design options for development of our proposed hotel and the adjacent parking area and/or pocket park that would allow shared use parking in the right-of-way of Christensen Road. We are seeking approval of one of the options so that we may finalize a Development Agreement that would allow shared use parking in exchange for the selected option. We want the City to select the Scenario that is best suited for their needs; however, we are of the opinion that Option 3, which would maximize parking for the park and hotel and allow for development of 101 spaces (53 on-site hotel spaces and 48 off-site spaces along Christensen Road) is the best option for the City, Public, and hotel. The cost for development of this scenario is approximately $40,140 which would include a payment of $145,897 to the City for utilization as deemed most appropriate for the City's needs. The second preferred option is Option 2. This Scenario would include landscaping the cul-de sac area at the north end of Christensen Road which would allow for development of 98 spaces (53 on-site hotel spaces and 45 off-site spaces along Christensen Road). The cost of this scenario is estimated to be $92,188 with a residual amount of $93,849 being paid to the City for utilization as deemed most appropriate for the City's needs. The third preferred option is Option 1. This scenario would include development of the existing cul de sac into a pocket park as initially proposed which would allow for development of 98 spaces (53 on-site hotel spaces and 45 off-site spaces along Christensen Road). The cost of this scenario is estimated to be $186,037 less $10,000 that will be paid to the City for use along the Green River Shoreline or for other appropriate uses. 19 Ms. Minnie Dhaliwal January 27, 2015 Page 2 The proposed hotel will include 92 rooms with no restaurant and only a board room and one small meeting room which should minimize the amount of parking required (94 spaces required per hotel company). Most of the hotel's parking will be required during the late evening hours with minimal parking needed during daylight hours. We have also attached a summary of three different hotels' parking requirements at various times of the daylight hours. Based on our experience, guests will require minimal parking during the daytime hours which should leave more than adequate parking for the public (see the attached parking summary). Our architect cannot finalize plans until we have approval to proceed. We have already acquired the site and would greatly appreciate a timely decision so that we might move forward with the preliminary design that must then be submitted to the City for review and approval before we can get building permits. We thank you for your assistance and look forward to expediting the Development Agreement. Sincerely, 20 Parking Stats: Based on the hotels we operate within King County in neighboring cities close to Tukwila and Eastern Washington, this is an example of what we observed from the hotel parking lot. All three hotels include one board room and one hotel also has an additional meeting room that seats 50 persons (p). None of the hotels has a restaurant. The following tables show the occupied rooms for the day and number of cars parked at the designated hours surveyed. Hotel 1 [60] 1 Board room Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 38 20 24 22 11 AM — Cars in lot 3 4 4 2 5 PM — Cars in Lot 1 1 7 3 Hotel 2 [100] 1 Board Room & 1 Meeting Room 50p Friday/Sat Sunday Mon — Wednesday Thursday . Occupied Rooms 26 17 65 51 11 AM — Cars in Lot 7 2 5 4 5 PM — Cars in Lot 3 3 18 6 Hotel 3 [85] 1 Board room Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 65 18 37 32 II AM — Cars in Lot 6 7 6 4 5 PM — Cars in Lot 5 4 10 7 21 OPTION 1 - POCKET PARK ANDOVER PARK EAST PROPERTY LINE EXISTING CURB LINE TUKWILA PARK_AY SITE PLAN - OPTION I e 5a -o 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN XPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale Sweeney ARCHITECT 1/22/1 5 5715 143rd Place S.E. Bellevue. WA 98006 425-260-8969 22 OPTION 2 - CUL DE SAC INTO LANDSCAPING ANDOVER PARK EAST PROPERTY LINE EXISTING CURB LINE TUKWILA PARKJ_ LANDSCAPING ger /*° __--- LS t#1 <= I PATIO HOTEL 5 -STORY 59,170 SQ. FT. 92 UNITS AR {IN & TYPICAL PARKING 'CE 9'X19' N b4 0 c 1.7 IlL 53 ONSITE PARKING SPACES C C C C AN1JSCAFIN SITE PLAN - OPTION 2 5O. 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL C c OF SI S'AC CHRISTENSEN ROAD a 4 OFITE PAR NG OM 24 SPACES TO 27 RE -STRIPE EXISTING FOR INCREASED PARKING SPACES HOLIDAY INN XPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale jwee necJ ARCHITECT 1/22/1 5 5714143rd Place S.E. Bellevue, WA 98006 425-260-8969 23 OPTION 3 - CUL DE SAC INTO PARKING ANDOVER PARK EAST PROPERTY LINE EXISTING CURB LINE �'• - TUKWILA PARK n(x PATIO HOTEL 5 -STORY 59, 170 5Q. FT 92 UNITS 4 mon 1i PARKING S' & TYPICAL PARKING 'CE 9'X19' c LANDSCAPING 53 ONSITE PARKING SPACES C LANDS PIIC NG ACES CHRISTENSEN ROAD a 4� OFF'31TE PAR NG IcicicIcicIcicIcIcici SITE PLAN - OPTION 3 I' = 50-0' 53 ONSITE PARKING SPACES 48 OFFSITE PARKING SPACES 101 TOTAL room • 1111111.11 RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN XPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale Sweeney ARCHITECT 1/22/15 5715 143r0 Place S.E. Bellevue, WA 98006 425-260-8969 24 Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Community Affairs and Parks Committee FROM: BY: DATE: SUBJECT: ISSUE Jack Pace, Director DCD Nora Gierloff, Deputy DCD Director February 17, 2015 Medical Cannabis Status and review of Recreational Marijuana Licensing Tukwila's current moratorium on medical cannabis collective gardens and dispensaries will expire on May 27, 2015. Should the moratorium be renewed or should Tukwila modify the zoning code to prohibit these uses? BACKGROUND In 2011, the Washington State legislature passed ESSB 5073, codified as RCW 69.51A, creating rules regarding medical cannabis patients, collective gardens, and medical cannabis dispensaries. The Governor vetoed portions of the bill. The partial veto created conflicts in the remaining portions of the bill but the general assumption is that dispensaries are prohibited by the veto but "qualifying patients" can participate in "collective gardens". The bill allows local jurisdictions to adopt and enforce requirements for zoning, business licensing, health and safety and business taxes related to the "production, processing, or dispensing of cannabis and cannabis products within their jurisdiction" (RCW 69.51A.130). Since August 15, 2011, the City Council has enacted and renewed moratoriums on cannabis collective gardens and dispensaries. The latest renewal, Ordinance 2439, will sunset on May 27, 2015. While the moratorium was enacted and extended, the City waited, expecting the state to provide clarification on the statutes and the conflicts created by the partial veto and to create clarity on the relationship between medical cannabis and recreational marijuana. So far the current legislative session has not resulted in the adoption of any new or clarified regulations for medical cannabis. DISCUSSION The Federal Government's Controlled Substances Act (CSA) prohibits the possession and distribution of marijuana for any purpose. In March, 2014, U.S. District Attorney Jenny Durkin issued a statement that all medical cannabis dispensaries are illegal but the Federal Department of Justice will not focus resources on individuals that are in "clear and unambiguous compliance with existing state laws." This follows US Deputy Attorney General's statement 25 26 INFORMATIONAL MEMO Page 2 before the US Senate in September, 2013 that the Governor of Washington is expected to "implement a strong and effective regulatory and enforcement system to fully protect against the public health and safety harms..." (see Attachment A). The State of Washington is developing a clearly regulated system for recreational marijuana but the State has yet to create laws that provide dear or unambiguous rules for medical marijuana use, production or sale. State law clearly does not allow medical cannabis dispensaries so allowing them would not be legal and disallowing them would be unnecessarily redundant. However, collective gardens remain illegal under federal law and are not subject to a State regulatory system that the Department of Justice has indicated is necessary to avoid DOJ scrutiny. The expectation remains that the future for medical cannabis in Washington State will involve either merging the medical cannabis and recreational marijuana uses into a combined regulatory system or establishing a regulatory system for medical cannabis. The current system with strict regulations on recreational marijuana and essentially no regulation on medical cannabis is untenable. As the recreational marijuana regulatory system matures, the impacts of marijuana production, processing, and retail sales will be better understood. Currently the cities of Kent, Bonney Lake and Woodinville have prohibited collective gardens. Last March the state court of appeals upheld Kent's ordinance. If and when the Federal Government changes the legal status of marijuana and/or if the State of Washington develops a regulatory system for medical cannabis that satisfies the DOJ, the City of Tukwila can choose to revisit allowing medical cannabis collective gardens in the City of Tukwila. At this time, allowing medical cannabis in the City would have the City preempting Federal law. Recreational Marijuana Status At this time there are nineteen active applications for recreational marijuana producers, processors, or retailers within Tukwila but as of January 27, 2015 the Washington State Liquor Control Board (LCB) has yet to issue any licenses for locations within the City. No proposed locations meet both Tukwila's zoning standards (location in Heavy Industrial or Tukwila Valley South zones) and the LCB buffers around schools, parks, etc. Next Steps The Community Affairs and Parks Committee is being asked to choose between renewing the current medical cannabis moratorium or sending an ordinance prohibiting medical cannabis collective gardens and dispensaries to the Planning Commission for a recommendation. Options: 1) Forward the question to the full Council for consideration at the March 9th Committee of the Whole meeting; or 2) Recommend renewing the moratorium on medical cannabis and forward the item to the April 27 Committee of the Whole meeting for a public hearing and adoption at the May 4th Regular Meeting; or 3) Forward an ordinance prohibiting medical cannabis collective gardens and dispensaries to the Planning Commission for a hearing and recommendation at their March 26th Z:\DCD n Clerk's\to Melissa\COW InfoMemo Med Cannabis.docx INFORMATIONAL MEMO Page 3 meeting followed by a hearing at the April 27th Committee of the Whole and adoption at the May 4th Regular Meeting. FINANCIAL IMPACT None RECOMMENDATION Staff recommends option 3, referring an ordinance adopting a Zoning Code prohibition on medical cannabis collective gardens and dispensaries to the Planning Commission for a hearing and recommendation. ATTACHMENTS A. Statement of James M. Cole, Deputy Attorney General Z:\DCD n Clerk's\to Melissa\COW InfoMemo Med Cannabis.docx 27 Department of Justice STATEMENT OF JAMES M. COLE DEPUTY ATTORNEY GENERAL BEFORE THE COMMITTEE ON THE JUDICIARY UNITED STATES SENATE FOR A HEARING ENTITLED "CONFLICTS BETWEEN STATE AND FEDERAL MARIJUANA LAWS" PRESENTED ON SEPTEMBER 10, 2013 Attachment A 29 Testimony of James M. Cole Deputy Attorney General United States Department of Justice Before the United States Senate Committee on the Judiciary September 10, 2013 Good afternoon Chairman Leahy, Ranking Member Grassley, and distinguished Members of the Committee. I am pleased to speak with you about the guidance that the Department recently issued to all United States Attorneys regarding marijuana enforcement efforts. That guidance instructs our prosecutors to continue to enforce federal priorities, such as preventing sales of marijuana by criminal enterprises, preventing violence and the use of firearms in the cultivation and distribution of marijuana, preventing distribution to minors, and preventing the cultivation of marijuana on public lands — priorities that we historically have focused on for many years — and also notes that we will continue to rely on state and local authorities to effectively enforce their own drug laws as we work together to protect our communities. I. Introduction As you know, the relevant federal statute, the Controlled Substances Act of 1970 (CSA), among other prohibitions, makes it a federal crime to possess, grow, or distribute marijuana, and to open, rent, or maintain a place of business for any of these purposes. For many years, all 50 states have enacted uniform drug control laws or similar provisions that mirrored the CSA with respect to their treatment of marijuana and made the possession, cultivation, and distribution of marijuana a state criminal offense. With such overlapping statutory authorities, the federal government and the states traditionally worked as partners in the field of drug enforcement. Federal law enforcement historically has targeted sophisticated drug traffickers and organizations, while state and local authorities generally have focused their enforcement efforts, under their state laws, on more localized and lower -level drug activity. Starting with California in 1996, several states have authorized the cultivation, distribution, possession, and use of marijuana for medical purposes, under state law. Today, twenty-one states and the District of Columbia legalize marijuana use for medical purposes under state law, including six states that enacted medical marijuana legislation in 2013. 1 30 Throughout this time period, the Department of Justice has continued to work with its state and local partners, but focused its own efforts and resources on priorities that are particularly important to the federal government. The priorities that have guided our efforts are: • Preventing the distribution of marijuana to minors; • Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels; • Preventing the diversion of marijuana from states where it is legal under state law in some form to other states; • Preventing state -authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; • Preventing violence and the use of firearms in the cultivation and distribution of marijuana; • Preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use; • Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and • Preventing marijuana possession or use on federal property. Examples of our efforts have included cases against individuals and organizations who were using the state laws as a pretext to engage in large-scale trafficking of marijuana to other states; enforcement against those who were operating marijuana businesses near schools, parks, and playgrounds; and enforcement against those who were wreaking environmental damage by growing marijuana on our public lands. On the other hand, the Department has not historically devoted our finite resources to prosecuting individuals whose conduct is limited to possession of marijuana for personal use on private property. II. The Department's Updated Marijuana Enforcement Guidance In November 2012, voters in Colorado and Washington State passed ballot initiatives that legalized, under state law, the possession of small amounts of marijuana, and made Colorado and Washington the first states to provide for the regulation of marijuana production, processing, and sale for recreational purposes. The Department of Justice has reviewed these ballot initiatives in the context of our enforcement priorities. On August 29, 2013, the Department notified the Governors of Colorado and Washington that we were not at this time seeking to preempt their states' ballot initiatives. We advised the Governors that we expected their states to implement strong and effective regulatory and enforcement systems to fully protect against the public health and safety harms that are the focus 2 31 of our marijuana enforcement priorities, and that the Department would continue to investigate and prosecute cases in Colorado and Washington in which the underlying conduct implicated our federal interests. The Department reserved its right to challenge the state laws at a later time, in the event any of the stated harms do materialize — either in spite of a strict regulatory scheme, or because of the lack of one. That same day, the Department issued a guidance memorandum to all United States Attorneys directing our prosecutors to continue to fully investigate and prosecute marijuana cases that implicate any one of our eight federal enforcement priorities. This memorandum applies to our prosecutors in all 50 states and guides the exercise of prosecutorial discretion against individuals and organizations who violate any of our stated federal interests, no matter where they live or what the laws in their states may permit. Outside of these enforcement priorities, however, the Department will continue to rely on state and local authorities to address marijuana activity through enforcement of their own drug laws. This updated guidance is consistent with our efforts to maximize our investigative and prosecutorial resources during this time of budget challenges, and with the more general message the Attorney General delivered last month to all federal prosecutors, emphasizing the importance of quality priorities for all cases we bring, with an eye toward promoting public safety, deterrence, and fairness. Our updated guidance also makes one overarching point clear: the Department of Justice expects that states and local governments that have enacted laws authorizing marijuana -related conduct will implement effective regulatory and enforcement systems to protect federal priorities and the health and safety of every citizen. As the guidance explains, a jurisdiction's regulatory scheme must be tough in practice, not just on paper. It must include strong enforcement efforts, backed by adequate funding. We are emphasizing comprehensive regulation and well -funded state enforcement because such a system will complement the continued enforcement of state drug laws by state and local enforcement officials, in a manner that should allay the threat that a state -sanctioned marijuana operation might otherwise pose to federal enforcement interests. Indeed, a robust system may affirmatively address those federal priorities by, for example, implementing effective measures to prevent diversion of marijuana outside of the regulated system and to other states, prohibiting access to marijuana by minors, and replacing an illicit marijuana trade that funds criminal enterprises with a tightly regulated market in which revenues are tracked and accounted for. In those circumstances, consistent with the traditional allocation of federal -state efforts in this area, enforcement of state law by state and local law enforcement and regulatory bodies should remain a necessary part of addressing marijuana -related activity. 3 32 III. Conclusion The Department of Justice is committed to enforcing the CSA in all states, and we are grateful for the dedicated work of our Drug Enforcement Administration agents, our federal prosecutors, and our state and local partners in protecting our communities from the dangers of illegal drug trafficking. The Administration also remains committed to minimizing the public health and safety consequences of marijuana use, focusing on prevention, treatment, and support for recovery. As our updated guidance reflects, we are continuing our practice of targeting conduct that implicates federalpriorities and causes harm, regardless of state law. We expect our state and local partners to continue to do so as well. In those jurisdictions that have enacted laws that legalize and seek to regulate marijuana for some purposes, this means that strong and effective regulatory and enforcement systems must address the threat those state laws could pose to public safety, public health, and other law enforcement interests. I look forward to taking your questions. 4 33 TO: Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs and Parks Committee FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: February 18, 2015 SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the Development Agreement for the proposed hotel development at 90 Andover Park East; allowing the shared use of parking in the right-of-way of Christensen Road? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that the required number of parking stalls cannot be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of-way of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications that provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. This item was previously discussed by the Community Affairs Committee on November 12, 2014; Committee of the Whole held a public hearing on November 24, 2014 and it was referred back to the Community Affairs and Parks Committee on December 1, 2014. See attached memo for the information that was provided to the City Council previously on this item (Attachment A). Additionally, the Parks Commission was briefed on the pocket park proposal on January 21, 2015, and the minutes of the meeting are attached (Attachment B). DISCUSSION City Council asked staff to provide information on how the proposal complies with the City's shoreline regulations and asked the Community Affairs and Parks Committee to further review the proposal and make a recommendation to the Committee of the Whole. Additionally since the last City Council meeting the developer has come back with a couple of additional options for the City to consider, which are also attached. INFORMATIONAL MEMO Page 2 In order to help facilitate decision making on this proposal it may be easier to break down the discussion into following issues: 1. Does the proposal comply with the city's shoreline regulations? 2. Does the city want to allow use of public right-of-way for shared parking for the hotel? 3. How many parking spaces should be shared between the hotel and trail users and how many should be guaranteed for the trail users? 4. What is the appropriate compensation for sharing parking in the right-of-way? 1. Does the proposal comply with the city's shoreline regulations? This area of the shoreline is designated as Urban Conservancy and the shoreline buffer ends on the river side of the existing roadway (Christensen Road). The conceptual site plan showing the hotel location and other site improvements meets the shoreline use, site setback and site configuration requirements. Detailed review of the construction plans will be done during the shoreline substantial development permit review process, which is an administrative decision issued after public notification to the interested agencies and surrounding property owners. The staff report of the shoreline permit is then sent to Department of Ecology for their review. See attached handout explaining the shoreline review process and code criteria along with the map showing the shoreline buffer (Attachment C). 2. Does the city want to allow use of public right-of-way for shared parking for the hotel? The existing site is a former gas station. The fuel canopy and the underground tanks were removed in 2007. In 2008, land use approval was granted for a 12,000 sq. ft. single story retail building that was never constructed. The existing lot is only 50,000 sq. ft. and without the shared parking agreement the likely form of development to occur on this site is single story. The current proposal to share the parking in the right-of-way would allow a five story hotel to be constructed. This form of development fits in with the vision anticipated by the Southcenter Subarea Plan for this area. The previous memo to the City Council (Attachment A) listed the goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan that are achieved by the City entering into this development agreement. The proposal includes: • Shared use of parking in the right-of-way. • Initial term of 50 years with an option to extend for 30 additional years • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway and/or the Project parking area; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. INFORMATIONAL MEMO Page 3 3. How many parking spaces should be shared and how many should be guaranteed for the trail users? Tukwila Municipal Code requires one parking space per hotel room. The developer has stated that the franchise requires one parking space per hotel room plus two additional spaces. Per Smith Travel Research Report for hotels in Tukwila's general market, the occupancy rate for year 2014 varied from 80 to 90 percent during the high season (May through September) with December/January being the lowest around 60 percent; for an average annual room occupancy of 77 percent. The proposed hotel has 53 on-site parking spaces (hotel use only) and would like to share 45 parking spaces within the right-of-way (hotel and trail users). There are currently only 27 parking spaces in the right-of-way and the developer has proposed to add 18 new parking spaces within the undeveloped right-of-way; resulting in 45 spaces in the right-of-way. 41 out of 45 spaces will be shared between the hotel users and trail users and four spaces will be reserved exclusively for trail users. This allows four guaranteed spaces for the trail users but they could also park anywhere on the remaining 41 spaces. There is currently no data on the number of spaces used by trail users. However it can be stated that hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day Tight hours. The proposed hotel has only a small meeting room and no restaurant, therefore the parking demand is anticipated to be less than a hotel with a large meeting room/convention facility. The developer has also provided parking data for the hotels currently operated by them showing that the parking demand is less than one car per occupied room (Attachment D). 4. What is the appropriate compensation for sharing parking in the right-of-way? Since the last meeting the developer has come back with the following options for the City to consider as appropriate compensation for allowing shared use of parking: Option 1: Develop and maintain a public pocket park within the existing cul-de-sac with $10,000 payment to the City. Option 2: Replace the asphalt in the cul-de-sac area with landscaping along with a monetary payment of $93,849 to the City. Option 3: Convert the cul-de-sac into parking area with a monetary payment of $145,897 to the City. INFORMATIONAL MEMO Page 4 Listed below is the summary of compensation for all three options: Compensation for sharing parking in the right-of-way Option 1:Pocket Park Option 2: Cul-de- sac to landscaping Option 3: Cul -de - sac into parking Developer shall develop and maintain a public pocket park x Developer shall maintain the parking area x x x Parking spaces for trail users 41 shared and 4 guaranteed. 41 shared and 4 guaranteed 41 shared and 7 guaranteed Developer shall construct a pedestrian connection between the intersection of Andover Park East and the Green River Trail x x x Members of the public and emergency vehicles will have access through the hotel parking lot. x x x Monetary Payment $10,000 $93,849 $145,897 Pros and Cons A public pocket park in the urban center, which complements the Green River Trail. The impervious surface in the shoreline zone is reduced. The city gets monetary payment of $10,000. The impervious surface in the shoreline zone is reduced. There is opportunity to plant native vegetation in the shoreline zone. The city gets monetary payment of $93,849. There are three additional parking spaces under this option but impervious surface increases. The city gets monetary payment of $145,897. FINANCIAL IMPACT The land is valued at $25 per square feet. The right of way area is 17,103 square feet with a land value of $427,575. The developer had previously provided a cost estimate of $186,037 for the development of the pocket park. All three options listed above cost the developer $186,037. Additionally the developer has estimated about $6000 per year in maintenance costs. There is no negative financial impact to the city under any of the three options. City Council may want to decide what could be done with the monetary payment. This decision could occur separate from the development agreement process. Some options for the City Council to consider are: • Put the money the city's tree mitigation fund • Establish a shoreline restoration fund • Designate the money towards another project in the Urban Center such as Tukwila Pond or pedestrian bridge project. INFORMATIONAL MEMO Page 5 • Designate the money towards any other project on the City's Capital Improvement Program list • Put the money in the City's general fund. RECOMMENDATION Staff recommends that the city enter into the development agreement to share the parking in the right-of-way in order to facilitate the hotel development. Regarding the decision on the appropriate compensation for the shared use of right-of-way staff recommends option 2. Under this option the city will get a monetary payment of $93,849, impervious surface in the shoreline zone is reduced and the city still retains the opportunity to put in a pocket park at a future date. ATTACHMENTS A. Memo to Committee of the Whole Nov 24, 2014. B. Meeting minutes Parks Commission meeting Jan 21, 2015. C. Memo analyzing the proposal as it relates to the regulations in the shoreline zone along with the buffer map. D. Letter from the Developer with three alternative site plans. Attachment A City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: November 18, 2014 (Revised after Community Affairs and Parks Committee meeting on November 12, 2014) SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the proposed Development Agreement for the proposed hotel development at 90 Andover Park East that would allow the shared use of parking in the right-of- way of Christensen Road in exchange for the construction of a public pocket park? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that only 53 parking spaces can be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of- way of Christensen Road in exchange for developing a public pocket park in the cul-de sac area of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. DISCUSSION The proposal reviewed by the Community Affairs and Parks Committee iincluded: • Shared use of parking and drive aisle area in the right-of-way of Christensen Road, with 18 new parking spaces added by the developer within the undeveloped right-of-way area adjacent to the hotel site. The developer would also reconfigure the existing spaces to increase the number of parking spaces in the right-of-way. A total of 45 parking spaces would be available within the right-of-way; out of which 41 will be shared between the hotel use and members of the public with four spaces exclusively reserved for non -hotel users including those who want to access the Green River Trail. • In exchange for the shared parking the developer shall: a) Develop and maintain a public pocket park within the existing cul-de-sac area. b) Maintain the park and the parking area for the term of the agreement. c) Provide public access through the subject property to compensate for the cul-de-sac closure. d) Construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and the Green River Trail. 3 INFORMATIONAL. MEMO Page 2 • Initial term of 50 years with an option to extend for 30 additional years. • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations for the park and the parking areas; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. This proposal furthers the following goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan: • The Southcenter Subarea Plan envisions that parking will be accommodated by a combination of off- and on -street parking spaces/lots and shared parking facilities within the Transit Oriented Development (TOD) Neighborhood. • The Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...." • The implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan includes, "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships". • Uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan. The pocket park and shared parking are considered mutually beneficial to the City and the developer for the following reasons: • There are currently only 27 parking spaces in the right of -way area and the proposal will provide 45 parking spaces. • Hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. • The pocket park will complement the Green River Trail. • The proposal facilitates higher intensity development that is envisioned by the Comprehensive Plan for this area. • The cost of construction and maintenance of the pocket park and the parking spaces will be paid for by the developer in exchange for the shared use of the parking. • Members of the public and emergency vehicles will have access through the hotel parking lot. 4 INFORMATIONAL MEMO Page 3 Alternative proposal discussed at the Community Affairs and Parks Committee: Committee's Recommendation: At the Community Affairs and Parks Committee an alternative that would allocate the funds specified in the development agreement for the pocket park to go toward a tree planting project in the area of the river bank across Christensen Road was discussed. This alternative was recommended by the Committee as it advances the goals of regional efforts to restore aquatic ecosystems and salmon habitat in the Green-Duwamish watershed. Under this proposal, the developer would provide the money and the City could assume responsibility for the project, either alone or in collaboration with a group already doing this kind of restoration work. The Committee supported the alternative if it did not delay the agreement or add costs for the developer. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional analysis relating to the alternative proposal. The Committee of the Whole would then select the preferred option. Staff has further reviewed the alternative proposed by the Committee with the City's Public Works and Parks Department and listed below is their response. A map showing the riverbank area in the general vicinity of the subject site is attached to this memo. The total area from south of 1-405 to the bend in the River is approximately 73,000 square feet. The project cost for any shoreline restoration project that includes site preparation and planting is approximately $2 per square foot. Review of the Committee's recommendation by Bob Giberson, Public Works Director: Following projects are underway that might preclude the quick approval of a Green River planting plan adjacent to 90 Andover Park East along the river: a) Green River System Wide Improvement Framework (SWIF) process will be ongoing through early 2015. It is a US Army Corp of Engineers planning process that is being completed by King County Flood Control District. It involves ongoing engagement with state/federal agencies, business community, environmental community, WRIA9 and other agencies. It will include a prioritized list of capital projects to achieve flood protection goals and vegetation management plans to address large trees and shrubs location with respect to levees. More information about SWIF is available online at http://www.ki.ngcounty.gov/environment/w.lr/sec-tions-programs/river- iloodplain-section/capital -projects/green-river-system -wide-i mprovement- framewo rk.aspx b) The Tukwila 205 Levee Certification effort will not be completed for at least one year. The biggest unknown to obtain FEMA levee accreditation approval is the scope of repairs and/or improvements. Any required repairs and/or improvements will jeopardize any recent plantings. c) The TUC Pedestrian/Bicycle Bridge final design may include habitat mitigation near the bend in the river to the south of 90 Andover Park East. The design for this project will be completed in 2015 and constructed by 2017 As an alternative option, it appears that there is sufficient contingency in the pocket park cost estimate to allow the developer to contribute $10,000 towards a planting plan for the riverbank. Once a planting plan is approved by the necessary agencies, the developer's funds can be used as a match to other available funds for a complete habitat enhancement planting effort in this vicinity. 5 INFORMATIONAL MEMO Page 4 Review of the Committee's recommendation by Rick Still, Parks and Recreation Director: Background on why the pocket park is a valid proposal: a) A system of pocket parks in the Tukwila Urban Center (TUC) is vital to meeting the recreation and social needs of the community because purchasing larger parcels in this area is cost prohibitive at this time. The few parks currently located in TUC are heavily used by patrons for spending time away from offices on breaks, gaining access to the trail system, meeting people to gather and socialize, for exercise at or to visit as a part of their exercise routine, for access while walking to the train, and to enjoy nature while in an urban setting. b) In 2006, staff met with a developer who introduced the concept of using the Christensen Trail parking area as part of their development located between Christensen Road and Andover Park East. Through discussions with this developer, staff hired a landscape architect to initiate a site study and prepare a conceptual design for a pocket park at the turnaround at the north end of Christensen Road. This conceptual design was utilized with several developers throughout the past seven years. c) The Christensen Road pocket park provides an area on the north end of the TUC where there currently is not a recreational opportunity for the community. The area is easily accessed from local businesses and residential areas near City Hall. Hotel development in this area increases the need for a park since many of the people staying in hotels will be using the trail to access Starfire Sports at Fort Dent Park. The park will help contribute to a more connected community and build a sense of community pride. Staff has looked at ways to accommodate tree planting along the Green River while maintaining construction of the pocket park. Staff believes that with value engineering of the pocket park the developer could reduce the construction cost to allow approximately $10,000 for tree plantings along the Green River Trail at Christensen Road. The Committee of the Whole has the following options: 1. Approve the development agreement as originally proposed to allow shared parking in the right-of-way in exchange for building and maintaining a pocket park. 2. Approve the development agreement for the alternative proposed by the Community Affairs and Parks Committee to allow shared parking in the right-of-way in exchange for getting a monetary payment for the Green/Duwamish riverbank planting project. 3. Approve the development agreement as originally proposed with an amendment to include $10,000 payment by the developer towards Green/Duwamish River restoration/planting projects or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. FINANCIAL IMPACT There is no financial impact to the City as all costs associated with the development and maintenance of the pocket park and additional parking shall be borne by the developer. The developer's cost estimate for the development of the pocket park and additional parking area is $186,037. Also, the annual maintenance costs are anticipated to be $6000 per year and subject to inflation over the term of the agreement. The land value of the right -of -area with the shared parking is $427,575 ($25 per square foot for 17,103 square feet total area). 6 INFORMATIONAL MEMO Page 5 RECOMMENDATION The Council is being asked to hold a public hearing on this item and select one of the options listed above. Staff recommends approving the development agreement as originally proposed with an amendment to include $10,000 payment by the developer for the Green/Duwamish River restoration/planting project or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. If the Council selects this option then Section 8 of the Development Agreement will be revised to include a clause stating the developer shall be responsible to make a payment of $10,000 for Green/Duwamish River restoration/planting projects or to implement the goals and policies of the City's Comprehensive Plan related to Urban Forestry. This payment shall be required prior to the issuance of the building permit for the hotel. Also, Exhibit 3 shall be amended to reflect this payment. Staff also recommends adding two items to the 2015 work plan: a) Review current policies regarding non-public uses in the public right-of-way. b) Review policies/projects for restoration/planting projects of the Green/Duwamish riverbank and how the city will implement the goals and policies of City's Comprehensive Plan relating to Urban Forestry. ATTACHMENTS Vicinity Map Draft Ordinance Development Agreement Exhibit 1- Legal Description Exhibit 2 -Conceptual Site Plan Exhibit 3 -Conceptual Site Plan of the Pocket Park; list of park amenities with construction cost estimates; and land value estimates. Map showing the riverbank in the vicinity of the subject site Minutes from Community Affairs and Parks Committee meeting Nov 12, 2014. 7 Attachment B TUKWILA PARKS &RECREATION GOOD HEALTHY FUN PARKS COMMISSION MINUTES January 21, 2015 5:30pm Tukwila Community Center Call to Order: Committee Vice -Chairperson Don Scanlon called the meeting to order at 5:37pm. Attendance: Commissioners — Don Scanlon, Alice Russell, Joanne McManus Staff — Dave Johnson Approval of Minutes: Alice Russell moved to approve the minutes of the:''November 19, 2014 meeting. Joanne McManus seconded the motion. The motion passed unanimously. Business Items A. Project Update — The Commission reviewed the ProjectUpdate included in the Agenda Packet. B. Commission Appointments — Staff informed the Commission that Julie Lee has resigned her position on the Commission due to time constraints and will' begin advertising to fill the'06hcancy. Hassan Abdi's position on the Commission as a Student Representative expires in June 2015 ; ,, assan will work with staff to recruit a student to replace him. Alice Russell's term bn the;;tommission expire n,, March 2015. 16011lllh, C. Department Update — Staff informed the Commission of depa;r;tment updates including the MLK Day of Service at TCC and Duwamish Hill Preserve, transfer of Pool operations to the MPD, and recent clean-up work at Crystal Spring Park. IiV Staff provided updates and the Commission offered feedback to the staff on the following items: 1. Duwamish Gardens — Commission asked to begin considering names for the site. The Commission would like to get some historical information about the site. Also suggested the idea of holding a public contest to name the site. '1 1111Gdlfiiart;Purchase at Foster Golf Links - The Commission supports the purchase. Chinooknd project - The Commission supports this project, especially as it ties in with Duwamish Gardens and Duwamish Hill Preserve. I°' Pocket Park project — The Commission supports the development of the originally proposed Pocket Park design along Christensen Road. Other A. Don Scanlon attendedthe City training on the Open Government Trainings Act on January 12, 2015 and provided a summary to the Commission. B. Joanne McManus asked staff to look into jackets or some other apparel for the Commissioners as an identifier when meeting with the community and out in the public. C. Don Scanlon noted that due to pollution, nearly all of the coho eggs in the Southgate Creek incubator have died. Don is working with Public Works on this. Adjournment: Alice Russell moved to adjourn at 6:13pm. The motion was seconded by Joanne McManus. The motion passed unanimously. Attachment C Analysis of the proposal as it relates to the regulations in the shoreline zone State Shoreline requirements are implemented through the Shoreline Overlay District in the Tukwila Zoning Code (Tukwila Municipal Code (TMC) 18.44). Tukwila's shoreline regulations were updated in October, 2011 when the Department of Ecology approved the City's new Shoreline Master Program (SMP) and implementing regulations. If the Council decides to enter into the development agreement for the use of public right-of-way for the hotel development, the project is still subject to obtaining approval of a Shoreline Substantial Development Permit by the Community Development Director and Design Review approval by the Board of Architectural Review. What is the process for the shoreline permit? A Shoreline Substantial Development Permit is required for the construction of a hotel at the property located at 90 Andover Park East. The decision on this permit is made administratively by the Director of the Department of Community Development after the expiration of a 30 day public notice period. As part of that process, a detailed staff report that analyzes the proposal with respect to the City's Shoreline Master Program is prepared and a decision is rendered. The City's decision is sent to the Department of Ecology for its review. There is a 21 day appeal period on Shoreline Substantial Development Permits and no construction may occur during that time. What is the shoreline environment designation around the subject site? The shoreline environment along the west side of the Green/Duwamish river bank from I-405 to the south city limits is Urban Conservancy. The shoreline in this area is part of the Tukwila 205 Levee. What is the shoreline zone and shoreline buffer in this area? The shoreline zone is the entire 200 feet from the ordinary high water mark (OHWM) of the River. Within the 200 foot shoreline jurisdiction, there is a shoreline buffer, which in this area is 125 feet from the OHWM due to the presence of 205 levee. Also, it is important to note that if there is a road that runs parallel to the river through the buffer, the buffer ends on the river side of the existing improved street or roadway. See attached map that shows the shoreline buffer around the subject site. What uses are allowed in the shoreline buffer area? TMC 18.44.050 lists the permitted uses in the shoreline buffer of the Urban Conservancy environment. Parks and maintenance of existing streets and rights-of-way are permitted in the buffer area. Additionally, any proposed project in the shoreline zone is reviewed to ensure that the proposed use is consistent with TMC 18.44.030 - Shoreline Use Matrix and the underlying zoning. The current proposal to build a hotel at the subject site is a permitted use outside the shoreline buffer. What other shoreline requirements will apply to the proposed project? As part of the shoreline permit review process the proposed project will be reviewed to ensure the following code requirements are met: a) TMC 18.44.070 C. i) General Standards to meet standards of the underlying zoning district. ii) Setbacks and site configuration requirements. iii) Height Restrictions of 15 feet within the river buffer area and 45 feet between the outside edge of the buffer and 200 feet of the OHWM. iv) Lighting to meet minimum lighting levels and at the same time preventing spillover on the river channel. v) Off street parking and loading — requirements to screen parking, loading or storage facilities located between the river and any building. b) TMC 18.44.080 Vegetation and Landscaping: The project will be reviewed for consistency with the Shoreline Master Program's vegetation and landscaping requirements. Please note that on properties located behind publicly maintained levees, an applicant is not required to remove invasive vegetation or plant native vegetation within the river buffer. However retention of existing trees; planting standards for interior parking lot and yard landscaping standards are required along with specific vegetation management standards including limitations on use of pesticides. c) TMC 18.44.100 Public Access: The project will be reviewed for consistency with the public access requirements. As part of the development agreement, the developer has agreed to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail. d) Analysis of "no net loss of the ecological function" shall be done. This analysis shall take into consideration how much vegetation currently exists within the 200 foot shoreline jurisdiction; what is the condition of the shoreline; and how the proposed project impacts the shoreline. This analysis takes into consideration if any fill is proposed along the shoreline; if any stormwater will be discharged to the river; and if there is any alteration of the vegetation. If any loss of ecological function is anticipated then the loss is mitigated through one or a combination of the mitigation sequencing steps identified in the SMP. Shoreline Buffer: 90 Andover Park East Attachment D January 27, 2015 Ms. Minnie Dhaliwal Planning Supervisor City of Tukwila 6300 Southcenter Boulevard, Suite 100 Tukwila, WA 98188 Sent via email: Minnie.Dhaliwal@TukwilaWA.gov RE: Proposed hotel to be located at 90 Andover Park East by Tukwila TSD LLC Dear Ms. Dhaliwal: We have reviewed the attached three development scenarios that include design options for development of our proposed hotel and the adjacent parking area and/or pocket park that would allow shared use parking in the right-of-way of Christensen Road. We are seeking approval of one of the options so that we may finalize a Development Agreement that would allow shared use parking in exchange for the selected option. We want the City to select the Scenario that is best suited for their needs; however, we are of the opinion that Option 3, which would maximize parking for the park and hotel and allow for development of 101 spaces (53 on-site hotel spaces and 48 off-site spaces along Christensen Road) is the best option for the City, Public, and hotel. The cost for development of this scenario is approximately $40,140 which would include a payment of $145,897 to the City for utilization as deemed most appropriate for the City's needs. The second preferred option is Option 2. This Scenario would include landscaping the cul-de sac area at the north end of Christensen Road which would allow for development of 98 spaces (53 on-site hotel spaces and 45 off-site spaces along Christensen Road). The cost of this scenario is estimated to be $92,188 with a residual amount of $93,849 being paid to the City for utilization as deemed most appropriate for the City's needs. The third preferred option is Option 1. This scenario would include development of the existing cul de sac into a pocket park as initially proposed which would allow for development of 98 spaces (53 on-site hotel spaces and 45 off-site spaces along Christensen Road). The cost of this scenario is estimated to be $186,037 less $10,000 that will be paid to the City for use along the Green River Shoreline or for other appropriate uses. Ms. Minnie Dhaliwal January 27, 2015 Page 2 The proposed hotel will include 92 rooms with no restaurant and only a board room and one small meeting room which should minimize the amount of parking required (94 spaces required per hotel company). Most of the hotel's parking will be required during the late evening hours with minimal parking needed during daylight hours. We have also attached a summary of three different hotels' parking requirements at various times of the daylight hours. Based on our experience, guests will require minimal parking during the daytime hours which should leave more than adequate parking for the public (see the attached parking summary). Our architect cannot finalize plans until we have approval to proceed. We have already acquired the site and would greatly appreciate a timely decision so that we might move forward with the preliminary design that must then be submitted to the City for review and approval before we can get building permits. We thank you for your assistance and look forward to expediting the Development Agreement. Sincerely, Parking Stats: Based on the hotels we operate within King County in neighboring cities close to Tukwila and Eastern Washington, this is an example of what we observed from the hotel parking lot. All three hotels include one board room and one hotel also has an additional meeting room that seats 50 persons (p). None of the hotels has a restaurant. The following tables show the occupied rooms for the day and number of cars parked at the designated hours surveyed. Hotel 1 [60] 1 Board room Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 38 20 24 22 11 AM — Cars in lot 3 4 4 2 5 PM — Cars in Lot 1 1 7 3 Hotel 2 [100] 1 Board Room & 1 Meeting Room 50p Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 26 17 65 51 11 AM — Cars in Lot 7 2 5 4 5 P — Cars in Lot 3 3 18 6 Hotel 3 [85] 1 Board room Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 65 18 37 32 11 AM — Cars in Lot 6 7 6 4 5 P — Cars in Lot 5 4 10 7 OPTION I - POCKET PARK 0 W 0 z PROPERTY LINE EXISTING CURB LINE TUKWILA PAR - 1184 PATIO HOTEL 5 -STORY 59, 170 SQ. FT. 92 UNITS 53 ONSITE PARKING SPACES 4 OFFSITE PARKING SITE PLAN - OPTION . = 5O -O 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN XPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale 3weene9 ARCHITECT 1 /22/15 5715 143rd Place S.E. Bellevue, WA 98006 425-260-8969 OPTION 2 - CUL DE SAC INTO LANDSCAPING ANDOVER PARK EAST PROPERTY LINE EXISTING CURB LINE TUKWILA PARK - - 1 LS PATIO HOTEL 5 -STORY 59, 170 SQ. FT 92 UNITS LANDSCAPING I a b 6 -TYPICAL PARKING Z/ZegNCE 9'X19' C CIC C C C 0,0 LANDSCAPING AR IN 53 ONSITE PARKING SPACES C LANDS �AFING C C C C C C CICIC C C C C OF S C CHRISTENSEN ROAD a 4� OFFSITE PARKING SITE PLAN - OPTION 2 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL t♦ • 1111111. RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN EXPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale 5weener� ARCHITECT 1 /22/15 5715 143rd Place S.E. Bellevue. WA 98006 425-260-8969 OPTION 3 - CUL DE SAC INTO PARKING 1- a w CI - 11.1 0 0 2 PROPERTY LINE EXISTING CURB LINE TUKWILA PARS 1114 11 PATIO HOTEL 5 -STORY 59, 170 SQ. FT. 92 UNITS 1 A nalla va SPARKING S'ACES Ib &TYPICAL PARKING CE 9'X19' II4 b4 LANDSCAPING C C C 53 ONSITE PARKING SPACES C C LAN SOAPING C I I C C C C CHRISTENSEN ROAD a 481 OFITE PAR NG N SITE PLAN - OPTION 3 53 ONSITE PARKING SPACES 48 OFFSITE PARKING SPACES 101 TOTAL mos RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN liXPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale 5weene9 ARCHITECT 1/22/15 5715 143rd Place S.E. Bellevue, WA 98006 425-260-6969 Minnie Dhaliwal From: David Cline Sent: Tuesday, February 17, 2015 8:43 PM To: Minnie Dhaliwal Cc: Jack Pace Subject: RE: Development Agreement memo to City Council Minnie, Thanks for the memo. A few items. One item we don't discuss is the option of doing nothing, and what are the pros/cons of that idea? As I have had time to reflect on this option, is that the 'value' of this ROW is more than $400K in direct costs, but there may be opportunity costs, such as increasing river buffers, that may be taken away if this ROW is dedicated to parking. Since this is a 40 -year agreement, is there any option for the City to reclaim this ROW in the future, if for example there was a proposal to expand the river buffer in the future? I see that there are options such as a possible future 1-405 widening, that would negate this agreement, but then what would be done with the parking, how would it be replaced? Give me a call tomorrow, maybe with Jack, and we can discuss further. I will be on the road and/or in Olympia for most of the day. Thanks, David From: Minnie Dhaliwal Sent: Friday, February 13, 2015 3:44 PM To: David Cline Cc: Jack Pace Subject: Development Agreement memo to City Council David, I am attaching the memo on the development agreement for the proposed hotel at 90 Andover Park East for shared use of parking in the public right-of-way. This item is scheduled for Community Affairs and Parks Committee review on Feb 23rd and I need to get this memo to Christy by Wednesday Feb 18th. Rick Still, Bob Giberson and Jack Pace have reviewed it. If you have any comments or want any changes please let me know by the morning of Wednesday Feb 18th. Thanks. Minnie 1 TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs and Parks Committee FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: February 10, 2015 SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the Development Agreement for the proposed hotel development at 90 Andover Park East; allowing the shared use of parking in the right-of-way of Christensen Road? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that the required number of parking stalls cannot be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of-way of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications that provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. This item was previously discussed by the Community Affairs Committee on November 12, 2014; Committee of the Whole held a public hearing on November 24, 2014 and it was referred back to the Community Affairs and Parks Committee on December 1, 2014. See attached memo for the information that was provided to the City Council previously on this item. Additionally, the Parks Commission was briefed on the pocket park proposal on January 21, 2015, and the minutes of the meeting are attached. DISCUSSION City Council asked staff to provide information on how the proposal complies with the City's shoreline regulations and asked the Community Affairs and Parks Committee to further review the proposal and make a recommendation to the Committee of the Whole. Additionally since the last City Council meeting the developer has come back with a couple of additional options for the City to consider, which are also attached. INFORMATIONAL MEMO Page 2 In order to help facilitate decision making on this proposal it may be easier to break down the discussion into following issues: 1. Does the proposal comply with the city's shoreline regulations? 2. Does the city want to allow use of public right-of-way for shared parking for the hotel? 3. How many parking spaces should be shared between the hotel and trail users and how many should be guaranteed for the trail users? 4. What is the appropriate compensation for sharing parking in the right-of-way? 1. Does the proposal comply with the city's shoreline regulations? This area of the shoreline is designated as Urban Conservancy and the shoreline buffer ends on the river side of the existing roadway (Christensen Road). The conceptual site plan showing the hotel location and other site improvements meets the shoreline use, site setback and site configuration requirements. Detailed review of the construction plans will be done during the shoreline substantial development permit review process, which is an administrative decision issued after public notification to the interested agencies and surrounding property owners. The staff report of the shoreline permit is then sent to Department of Ecology for their review. See attached handout explaining the shoreline review process and code criteria along with the map showing the shoreline buffer. 2. Does the city want to allow use of public right-of-way for shared parking for the hotel? The existing site is a former gas station. The fuel canopy and the underground tanks were removed in 2007. In 2008, land use approval was granted for a 12,000 sq. ft. single story retail building that was never constructed. The existing lot is only 50,000 sq. ft. and without the shared parking agreement the likely form of development to occur on this site is single story. The current proposal to share the parking in the right-of-way would allow a five story hotel to be constructed. This form of development fits in with the vision anticipated by the Southcenter Subarea Plan for this area. The previous memo to the City Council (attachment A) listed the goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan that are achieved by the City entering into this development agreement. The proposal includes: • Shared use of parking in the right-of-way. • Initial term of 50 years with an option to extend for 30 additional years • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway and/or the Project parking area; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. INFORMATIONAL MEMO Page 3 3. How many parking spaces should be shared and how many should be guaranteed for the trail users? Tukwila Municipal Code requires one parking space per hotel room. The developer has stated that the franchise requires one parking space per hotel room plus two additional spaces. Per Smith Travel Research Report for hotels in Tukwila's general market, the occupancy rate for year 2014 varied from 80 to 90 percent during the high season (May through September) with December/January being the lowest around 60 percent; for an average annual room occupancy of 77 percent. Also, per Trip Generation Manual (Institute of Transportation Engineers), the average weekday peak period trips are .89 vehicles per occupied room during the peak period. The proposed hotel has 53 on-site parking spaces (hotel use only) and would like to share 45 parking spaces within the right-of-way (hotel and trail users). There are currently only 27 parking spaces in the right-of-way and the developer has proposed to add 18 new parking spaces within the undeveloped right-of-way; resulting in 45 spaces in the right-of-way. 41 out of 45 spaces will be shared between the hotel users and trail users and four spaces will be reserved exclusively for trail users. This allows four guaranteed spaces for the trail users but they could also park anywhere on the remaining 41 spaces. There is currently no data on the number of spaces used by trail users. However it can be stated that hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. The proposed hotel has only a small meeting room and no restaurant, therefore the parking demand is anticipated to be less than a hotel with a large meeting room/convention facility. The developer has also provided parking data for the hotels currently operated by them showing that the parking demand is less than one car per occupied room (Attachment D). 4. What is the appropriate compensation for sharing parking in the right-of-way? Since the last meeting the developer has come back with the following options for the City to consider as appropriate compensation for allowing shared use of parking: Option 1: Develop and maintain a public pocket park within the existing cul-de-sac with $10,000 payment to the City. Option 2: Replace the asphalt in the cul-de-sac area with landscaping along with a monetary payment of $93,849 to the City. Option 3: Convert the cul-de-sac into parking area with a monetary payment of $145,897 to the City. INFORMATIONAL MEMO Page 4 Listed below is the summary of compensation for all three options: Compensation for sharing parking in the right-of-way Option 1:Pocket Park Option 2: Cul-de- sac to landscaping Option 3: Cul -de - sac into parking Developer shall develop and maintain a public pocket park x Developer shall maintain the parking area x x x Parking spaces for trail users 41 shared and 4 guaranteed. 41 shared and 4 guaranteed 41 shared and 7 guaranteed Developer shall construct a pedestrian connection between the intersection of Andover Park East and the Green River Trail x x x Members of the public and emergency vehicles will have access through the hotel parking lot. x x x Monetary Payment $10,000 $93,849 $145,897 Pros and Cons A public pocket park in the urban center, which complements the Green River Trail. The impervious surface in the shoreline zone is reduced. The city gets monetary payment of $10,000. The impervious surface in the shoreline zone is reduced. There is opportunity to plant native vegetation in the shoreline zone. The city gets monetary payment of $93,849. There are three additional parking spaces under this option but impervious surface increases. The city gets monetary payment of $145,897. FINANCIAL IMPACT The land is valued at $25 per square feet. The right of way area is 17,103 square feet with a land value of $427,575. The developer had previously provided a cost estimate of $186,037 for the development of the pocket park. All three options listed above cost the developer $186,037. Additionally the developer has estimated about $6000 per year in maintenance costs. There is no negative financial impact to the city under any of the three options. City Council may want to decide what could be done with the monetary payment. This decision could occur separate from the development agreement process. Some options for the City Council to consider are: • Put the money the city's tree mitigation fund • Establish a shoreline restoration fund INFORMATIONAL MEMO Page 5 • Designate the money towards another project in the Urban Center such as Tukwila Pond or pedestrian bridge project. • Designate the money towards any other project on the City's Capital Improvement Program list • Put the money in the City's general fund. RECOMMENDATION Staff recommends that the city enter into the development agreement to share the parking in the right-of-way in order to facilitate the hotel development. Regarding the decision on the appropriate compensation for the shared use of right-of-way staff recommends option 2. Under this option the city will get a monetary payment of $93,849, impervious surface in the shoreline zone is reduced and the city still retains the opportunity to put in a pocket park at a future date. ATTACHMENTS A. Memo to Committee of the Whole Nov 24, 2014. B. Meeting minutes Parks Commission meeting Jan 21, 2015. C. Memo analyzing the proposal as it relates to the regulations in the shoreline zone along with the buffer map. D. Letter from the Developer with three alternative site plans. TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs and Parks Committee FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: February 3, 2015 SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the Development Agreement for the proposed hotel development at 90 Andover Park East allowing the shared use of parking in the right-of-way of Christensen Road? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that the required number of parking stalls cannot be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of-way of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. This item was previously discussed by the Community Affairs Committee on November 12, 2014; Committee of the Whole held a public hearing on November 24, 2014 and it was referred back to the Community Affairs and Parks Committee on December 1, 2014. See attached memo for the information that was provided to the City Council previously on this item. DISCUSSION City Council asked staff to provide information on how the proposal complies with the City's shoreline regulations and asked the Community Affairs and Parks Committee to further review the proposal and make a recommendation to the Committee of the Whole. Analysis of the proposal as it relates to the regulations in the shoreline zone is attached along with a map showing the shoreline zone and river buffer near the subject site. Additionally since the last City Council meeting the developer has come back with a couple of additional options for the City to consider, which are also attached. In order to help facilitate decision making on this proposal it may be easier to break down the discussion into following issues: 1. Does the city want to allow use of public right-of-way for shared parking for the hotel? 2. How many parking spaces should be guaranteed for the trail users? 3. What is the appropriate compensatio1ii or allowing sh ed use of parking? cJAotre INFORMATIONAL MEMO Page 2 Does the city want to allow use of public right-of-way for shared parking for the hotel? The existing site is a former gas station site. The fuel canopy and the underground tanks were removed in 2006. In 2007, land use approval was granted for a 12,000 sq. ft. single story retail building that was never constructed. The existing lot is only 50,000 sq. ft. and if parking was to be accommodated on site then the likely form of development to occur on this site will be single story. The current proposal to share the parking in the right-of-way would allow a five story hotel to be constructed. This form of development fits in with the vision anticipated by the Southcenter Subarea Plan for this area. The previous memo listed the goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan that are achieved by the City entering into this development agreement. The proposal includes: • Shared use of parking in the right-of-way. • Initial term of 50 years with an option to extend for 30 additional years. • The agreernent shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations for the park and the parking areas; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. How many parking spaces should be guaranteed for the trail users? Tukwila Municipal Code requires one parking space per hotel room. The developer has stated that the franchise requires one parking space per hotel room plus two additional spaces. The occupancy rate for year 2014 varied as noted in the table below with an average annual room occupancy of 70 percent. 2014 Hotel Room Occupancy Rate Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 61.6 70.0 72.4 72.6 79.0 89.5 92.9 92.8 86.3 75.6 70.0 62.0 Year To Date Average Hotel Room Occupancy Rate 2012 :2013 2014 71.4 72.8 77.1 Source: Smith Travel Research Report for hotels in Tukwila's general market Shoreline Buffer: 90 Andover Park East —r— Effective Shoreline Buffer Shoreline Jurisdiction January 27, 2015 Ms. Minnie Dhaliwal Planning Supervisor City of Tukwila 6300 Southcenter Boulevard, Suite 100 Tukwila, WA 98188 Sent via email: Minnie.Dhaliwal@TukwilaWA.gov RE: Proposed hotel to be located at 90 Andover Park East by Tukwila TSD LLC Dear Ms. Dhaliwal: We have reviewed the attached three development scenarios that include design options for development of our proposed hotel and the adjacent parking area and/or pocket park that would allow shared use parking in the right-of-way of Christensen Road. We are seeking approval of one of the options so that we may finalize a Development Agreement that would allow shared use parking in exchange for the selected option. We want the Cit tQ e ct the Scenario that is best suited for their needs; however, we are of the opinion that �e�� would maximize parking for the park and hotel and allow for development of 101 spaces (53 on-site hotel spaces and 48 off-site spaces along Christensen Road) is the best option for the City, Public, and hotel. The cost for development of this scenario is Oiindl $40,140 which would include agjff of $145897 to the City for utilization as deemed most appropriate for the City's needs. pti ev1 2 The second preferred option is s�st�ie {7. This Scenario would include landscaping the cul-de sac area at the north end of Christensen Road which would allow for development of 98 spaces (53 on-site hotel spaces and 45 off-site spaces along Christensen Road). The cost of this scenario is estimated to be $92,188 with a residual amount of $93,849 being gifted the City for utilization as deemed most appropriate for the City's needs. 1>� The third preferred option is eSee a -A. This scenario would include development of the existing cul de sac into a pocket park as initially proposed which would allow for development of 98 spaces (53 on-site hotel spaces and 45 off-site space a 9n�� ri t nsen oad). The cost of this scenario is estimated to be $186,037 less $10,000 space the City for use along the Green River Shoreline or for other appropriate uses (C--ettflea-may deter in he Ms. Minnie Dhaliwal January 27, 2015 Page 2 The proposed hotel will include 92 rooms with no restaurant and only a board room and one small meeting room which should minimize the amount of parking required (94 spaces required per hotel company). Most of the hotel's parking will be required during the late evening hours with minimal parking needed during daylight hours. We have also attached a summary of three different hotels' parking requirements at various times of the daylight hours. Based on our experience, guests will require minimal parking during the daytime hours which should leave more than adequate parking for the public (see the attached parking summary). Our architect cannot finalize plans until we have approval to proceed. We have already acquired the site and would greatly appreciate a timely decision so that we might move forward with the preliminary design that must then be submitted to the City for review and approval before we can get building permits. We thank you for your assistance and look forward to expediting the Development Agreement. Sincerely, • J.i;?i I. itteP7—) C,A6 tor Parking Stats: Based on the hotels we operate within King County in neighboring cities close to Tukwila and Eastern Washington, this is an example of what we observed from the hotel parking lot. All three hotels include one board room and one hotel also has an additional meeting room that seats 50 persons (p). None of the hotels has a restaurant. The following tables show the occupied rooms for the day and number of cars parked at the designated hours surveyed. Hotel 1 [60] 1 Board room Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 38 20 24 22 11 AM 3 4 4 2 5PM 1 1 7 3 Hotel 2 [100] 1 Board Room & 1 Meeting Room 50p Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 26 17 65 51 11 AM 7 2 5 4 5PM 3 3 18 6 Hotel 3 [85] 1 Board room Friday/Sat Sunday Mon — Wednesday Thursday Occupied Rooms 65 18 37 32 •11 AM 6 7 ' 6 4 5PM 5 4 10 7 p--6 oto 1 ; r o c KE T P�42 EXISTING CURB LINE TUKWILA PARS 1- a w CC 0 w 0 D z PROPERTY LINE PATIO ................. HOTEL 5—STORY ,159�Q. FT. 92 UNITS 1 LS POC ET ARK -TYPICAL PARKING SCE 9'X19' N CICIC P° C LANDSCAPING W AR IN 53 ONSITE PARKING SPACES CICICIC1C CLC C LAt,]ISA INd CICICIC C C C C C C OF S SI E AC S CHRISTENSEN ROAD 4� OFt1TE PAR NG OPTIoN SITE PLAN - SG ifMC A I" = 50-0" 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL MEI Maw RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN rXPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale ,Sweene9 ARCHITECT 1/22/15 5715 143rd Place S.E. Bellevue, WA 98006 425-260-8969 • 0P`TI0N2 ; Com.L-bE -SA-C. WTO LA1.31)ScikP101C� a w d w 0 0 z PROPERTY LINE EXISTING CURB LINE TUKWILA PAR- utx LANDSCAPING '-TYPICAL PARK CE 9'X19' Lf4L.+4t4S6►•FT ti w U 2 ce V) LJ Q !, d 53 ONSITE PARKING SPACES 4 OFITE PAR NG N b1'i ON 2 SITE PLAN - SCHEME C i. = soy -o„ 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL HOLIDAY INN TULWILA, WA TUKWILA TSD L.L.C. LJ CLw ce rn LJ EXPRESS Dale 5weenecj. ARCHITECT 1/22/15 5715 143rd Place S.E. Bellevue, WA 98006 425-260-8969 oPTiaN3 : CUL'DE-SA-e. )1010 PA-12.KI1$ EXISTING CURB LINE TUKWILA PARS neo Q w w CC 0 w 0 0 Z PROPERTY LINE re PATIO HOTEL 5 -STORY 5„:947.a.563 , FT. 92 UNITS 5 I A\"KW pV ERIMi 1 iPARKING S ' AlCES & TYPICAL PARKING SCE 9'X19' ar b4 LANDSCAPING C 53 ONSITE PARKING SPACES CIC LAt,l1J`CAIIING I Icic C C C C C C w (..1 �w C CHRISTENSEN ROAD C=1 48 OFFITE PAR NG c e-rioN3 SITE PLAN - SCHEME B I" = 50-0" 53 ONSITE PARKING SPACES 48 OFFSITE PARKING SPACES , 101 TOTAL woo RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN 1EXPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale 5wene9 ARCHITECT 1 /22/15 5715 143rd Place S.E. BeIIBWe, WA 98006 425-260-8969 1 1- a , w CC a_ UJ 0 0 z PROPERTY LINE-�� EXISTING CURB LINE TUKWILA PARK — ,8z N HOTEL 5 -STORY 59, 170 SQ. FT. 92 UNITS C C C C C EXISTING CUL-DE-SAC TYPICAL PARKING 53 ONSITE PARKING SPACES C C C�C C1C _AlsDS APIN C C cIClc C C C C C LANDSCAPING C SITE PLAN - SChEME D ,.=50,0" 53 ONSITE PARKING SPACES 45 OFFSITE PARKING SPACES 98 TOTAL CHRISTENSEN ROAD OFFSITE /PAJNG RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN XPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale , jweeney ARCHITECT 1 /22/15 5715 143rd Place S.E. Bellevue, WA 98006 425-260-8969 1- w cri 3- w 0 0 z PROPERTY LINE EXISTING CURB LINE TUKWILA PAR- PATIO HOTEL 5 -STORY 59, 170 SQ. FT. 92 UNITS 52 ONSITE PARKING SPACES 47 OFFSITE 1 PARKIN N ANDSCAPIN SITE PLAN - SCI-1EME E 52 ONSITE PARKING SPACES 47 OFFSITE PARKING SPACES 99 TOTAL RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY INN 1EXPRESS TULWILA, WA TUKWILA TSD L.L.C. Dale .5weene9 ARCHITECT 1/22/15 5775 143rd Place S.E. Bellevue, WA 98006 425-260-8969 Analysis of the proposal as it relates to the regulations in the shoreline zone State Shoreline requirements are implemented through the Shoreline Overlay District in the Tukwila Zoning Code (Tukwila Municipal Code (TMC) 18.44). Tukwila's shoreline regulations were updated in October, 2011 when the Department of Ecology approved the City's new Shoreline Master Program (SMP) and implementing regulations. If the Council decides to enter into the development agreement for the use of public right-of-way for the hotel development, the project is still subject to obtaining approval of a Shoreline Substantial Development Permit by the Community Development Director and Design Review approval by the Board of Architectural Review. What is the process for the shoreline permit? A Shoreline Substantial Development Permit is required for the construction of a hotel at the property located at 90 Andover Park East. The decision on this permit is made administratively by the Director of the Department of Community Development after the expiration of a 30 day public notice period. As part of that process, a detailed staff report that analyzes the proposal with respect to the City's Shoreline Master Program is prepared and a decision is rendered. The City's decision is sent to the Department of Ecology for its review. There is a 21 day appeal period on Shoreline Substantial Development Permits and no construction may occur during that time. What is the shoreline environment designation around the subject site? The shoreline environment along the west side of the Green/Duwamish river bank from I-405 to the south city limits is Urban Conservancy. The shoreline in this area is part of the Tukwila 205 Levee. What is the shoreline zone and shoreline buffer in this area? The shoreline zone is the entire 200 feet from the ordinary high water mark (OHWM) of the River. Within the 200 foot shoreline jurisdiction, there is a shoreline buffer, which in this area is 125 feet from the OHWM due to the presence of 205 levee. Also, it is important to note that if there is a road that runs parallel to the river through the buffer, the buffer ends on the river side of the existing improved street or roadway. See attached map that shows the shoreline buffer around the subject site. What uses are allowed in the shoreline buffer area? TMC 18.44.050 lists the permitted uses in the shoreline buffer of the Urban Conservancy environment. Parks and maintenance of existing streets and rights-of-way are permitted in the buffer area. Additionally, any proposed project in the shoreline zone is reviewed to ensure that the proposed use is consistent with TMC 18.44.030 - Shoreline Use Matrix and the underlying zoning. The current proposal to build a hotel at the subject site is a permitted use outside the shoreline buffer. What other shoreline requirements will apply to the proposed project? As part of the shoreline permit review process the proposed project will be reviewed to ensure the following code requirements are met: a)TMC 18.44.070 C. i) General Standards to meet standards of the underlying zoning district. ii) Setbacks and site configuration requirements. iii) Height Restrictions of 15 feet within the river buffer area and 45 feet between the outside edge of the buffer and 200 feet of the OHWM. iv) Lighting to meet minimum lighting levels and at the same time preventing spillover on the river channel. v) Off street parking and loading — requirements to screen parking, loading or storage facilties located between the river and any building.b) TMC 18.44.080 Vegetation and Landscaping: The project will be reviewed for consistency with the Shoreline Master Program's vegetation and landscaping requirements. Please note that on properties located behind publicly maintained levees, an applicant is not required to remove invasive vegetation or plant native vegetation within the river buffer. However retention of existing trees; planting standards for interior parking lot and yard landscaping standards are required along with specific vegetation management standards including limitations on use of pesticides. c) TMC 18.44.100 Public Access: The project will be reviewed for consistency with the public access requirements. As part of the development agreement, the developer has agreed to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the Green River Trail. d) Analysis of "no net loss of the ecological function" shall be done. This analysis shall take into consideration how much vegetation currently exists within the 200 foot shoreline jurisdiction; what is the condition of the shoreline; and how the proposed project impacts the shoreline. This analysis takes into consideration if any fill is proposed along the shoreline; if any stormwater will be discharged to the river; and if there is any alteration of the vegetation. If any loss of ecological function is anticipated then the loss is mitigated through one or a combination of the mitigation sequencing steps identified in the SMP. Tab 7 - Multi -Segment Seattle Southside Visitor Center For the month of: December 2014 Currency: USD - US Dollar Participation Properties Census Sample Rooms Census Sample 12 1295 1295 26 5367 ? ' 5054 15 � �'r.. 115 ; "7, 1962'3 oi62 23 22 4412 4388 59 56 12608 12336 37 36 6817 6723 25 7 1190 415 11 11 3234 3234 29 28 3753 3659 A blank row indicates insufficient data. Source 2015 STR, Inc. DISCLOSURE Destination Reports are publications of STR, Inc. (Reports containing only North American data) and STR Global Ltd (Reports containing worldwide data) and are intended solely for use by our paid subscribers. Reproduction or distribution of Destination Reports, in whole or part, without written permission of either STR, Inc. or STR Global Ltd. is prohibited and subject to legal action. Site licenses are available. Please consult your contract with STR, Inc. or STR Global, Ltd for the terms and conditions governing the ownership, distribution and use of Destination Reports and their contents. Year to Date - Decembe 2014 vs December 2013 Occ % Current Month - December 2014 vs December 2013 Percent Change from YTD 2013 Occ % 2014 2013 ADR 2014 2013 RevPAR 2014 2013 Occ Percent Change from December 2013 Room Room ADR RevPAR Rev Avail Room Sold City of Kent+ City of SeaTac+ Gr.� , .. . a + C o u a�., ... ,x� 52.5 63.0c .. �.5.. ., 8 49.9 58.9x 61, 56.3 65.1 60.4 53.5 63.4 57.3 74.63 70.46 88.29 84.25 Na.' w! ,�. .tea 1 ..9. . 0 OSt � 6 26 F. 147.23 137.13 151.45 138.46 93.99 89.68 57.74 53.74 107.46 100.48 80.16 77.73 39.15 `55.62 ,° ,aw.. .59 2 1 82.45 101.15 58.34 35.31 68.26 48.36 ....44.57 35.17 49.62 ,.. m1:+'._ yam. . 58.80 77.22 90.08 54.13 28.77 63.74 . �:.' N .. 5.1 7.0 ....... .'t K , -4 ,.. .,.. -0.5 2.7 2.8 14.2 0.1 5.2 5.9 11.3 11.3 0.0 5.1 4.8 12.1 12.1 0.0 7.0 v .........� k ,. s.:.,..•, „....... 4 f. . t .r#. W++.k F v ;xm .. ,_ s, 7 .,,..-,. � i !!b 50,.. 0. 0.7..0...._. 4�1 7.4 6.8 10.0 3.0 2.4 9.4 12.3 12.5 0.2 2.9 4.8 7.8 7.8 0.0 2.9 7.4 22.7 22.7 0.0 14.2 6.9 7.1 7.1 0.0 0.2 3.1 8.5 8.5 0.0 5.2 City of Bellevue+ Downtown Seattle+ SS 90+ Rooms+ SS Under 90 Rooms+ SS w/ Meeting Space+ SS w/o Meeting Space+ 56.0 66.8 62.1 61.2 63.5 60.3 Currency: USD - US Dollar Participation Properties Census Sample Rooms Census Sample 12 1295 1295 26 5367 ? ' 5054 15 � �'r.. 115 ; "7, 1962'3 oi62 23 22 4412 4388 59 56 12608 12336 37 36 6817 6723 25 7 1190 415 11 11 3234 3234 29 28 3753 3659 A blank row indicates insufficient data. Source 2015 STR, Inc. DISCLOSURE Destination Reports are publications of STR, Inc. (Reports containing only North American data) and STR Global Ltd (Reports containing worldwide data) and are intended solely for use by our paid subscribers. Reproduction or distribution of Destination Reports, in whole or part, without written permission of either STR, Inc. or STR Global Ltd. is prohibited and subject to legal action. Site licenses are available. Please consult your contract with STR, Inc. or STR Global, Ltd for the terms and conditions governing the ownership, distribution and use of Destination Reports and their contents. Year to Date - Decembe 2014 vs December 2013 Occ % ADR RevPAR Percent Change from YTD 2013 Room Room Room 2014 2013 2014 2013 2014 2013 Oce ADR RevPAR Rev Avail Sold 68.7 64.3 83.93 78.07 57.63 50.21 6.8 7.5 14.8 14.8 0.0 6.8 77.4 72.3 `� ,103.31 103 31 95.85 79.98 69.29 7.1 `3a0 7.8 15.4 15,4 0.0 7.1 v 7''k `75 8t''t''' 73.. 72:"107 83"1 88 52„ x .79.39 " t 8+2.,, t 1 5g"` Nt 'f Y 5, 0.0r', i. 76.3 75.6 160.07 146.46 122.07 110.69 0.9 9.3 10.3 10.6 0.3 1.2 81.9 79.3 182,39 165.74 149.41 131.43 3.3 10.0 13,7 13.8 0.1 3.4 77.6 73.4 109.74 101.68 85.18 74.63 5.7 7.9 14.1 14.1 0.0 5.8 72.5 67.2 64.13 59.51 46.46 40.02 7.7 7.8 16.1 16.1 0.0 7.7 78.6 75.0 125.60 115.44 98.74 86.54 4.9 8.8 14.1 14.1 0.0 4.9 76.3 71.7 ;. 93.81. 87.51 71.58 62.74 6.4 7.2 14,1 14.1 0.0 6.4 Currency: USD - US Dollar Participation Properties Census Sample Rooms Census Sample 12 1295 1295 26 5367 ? ' 5054 15 � �'r.. 115 ; "7, 1962'3 oi62 23 22 4412 4388 59 56 12608 12336 37 36 6817 6723 25 7 1190 415 11 11 3234 3234 29 28 3753 3659 A blank row indicates insufficient data. Source 2015 STR, Inc. DISCLOSURE Destination Reports are publications of STR, Inc. (Reports containing only North American data) and STR Global Ltd (Reports containing worldwide data) and are intended solely for use by our paid subscribers. Reproduction or distribution of Destination Reports, in whole or part, without written permission of either STR, Inc. or STR Global Ltd. is prohibited and subject to legal action. Site licenses are available. Please consult your contract with STR, Inc. or STR Global, Ltd for the terms and conditions governing the ownership, distribution and use of Destination Reports and their contents. Tab 2 - Trend Seattle Southside+ Seattle Southside Visitor Center For the Month of December 2014 25 20 15 l 10 5! Occupancy (%) This Year Last Year Percent Change ADR This Year Last Year Percent Change Monthly Percent Change Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul -4-Occupancy --ADR -RevPAR Aug Sep Oct Nov Dec Jul Aug Sep 2013 Nov Dec Jan Feb Mar Apr May Jun 2014 Aug Sep Oct Nov Dec Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 89.8 93.2 80.4 72.4 61.5 59.7 616 700 724 72.6 79.0 89.5 92.9 92,8 86.3 75.6 70.0 62.0 85.2 89.8 82.0 68.7 61.5 53.3 57.1 63.3 66.7 64.9 74.8 89,1 89.8 932 80.4 72.4 61.5 59.7 5,4 38 -1.9 53 -0.1 11.9 8.0 10.6 8.6 11.9 5.6 0.5 3.4 -0.4 7.3 4.5 13.9 3.8 Jul Aug Sep 2013 Oct Nov Dec Jan Feb Mar Apr May Jun 2014 Jul Aug Sep Oct Nov Dec 107.75 112.36 99.72 98.05 92.46 86,74 90.12 95.02 94.36 94.84 99.56 116.52 125.98 127.91 115.00 102.60 96.56 90.77 101.60 102.85 97.49 96.15 92.97 87.95 91.77 94.62 92.42 93.58 94.77 100.74 107.75 112.36 99.72 98.05 92.46 86,74 6.1 92 2.3 2.0 -0.5 -1.4 -1.8 0.4 2.1 1.3 5.0 15.7 16.9 13.8 15.3 4,6 4.4 4.6 2013 Jul Aug Sep Oct Nov Dec This Year 96.78 104.70 80.20 71.01 56.82 51.77 Last Year 86.57 92.37 79.96 66.10 5721 46.92 • Percent Change 11.8 13.3 0.3 7.4 -0,7 10.3 Jan Feb Mar 55.54 66.55 68.34 68.81 52.37 59.92 61.64 60.70 6,1 11.1 10.9 13,4 Apr 2014 May Jun Jul Aug Sep 78.64 104.32 117.04 118.69 99.22 70.87 89,78 96.78 104.70 80.20 11.0 16.2 20.9 13.4 23.7 Oct 77,61 71.01 9.3 Nov Dec 67.62 56.24 56.82 51.77 19.0 8.6 This Year Last Year Percent Change Demand This Year Last Year Percent Change Revenue This Year Last Year Percent Change 2013 Jul Aug Sep Oct Nov Dec 235,135 235,135 227,550 235,135 227,550 235,135 235,135 235,135 227,550 235,135 227.550 235,135 0.0 0.0 0.0 0.0 0.0 0.0 2014 Jan Feb Mar Apr May Jun Jul Aug Sep 001 Nov Deo 235,135 212,380 235,135 227,550 235,135 227,550 235,135 235.135 227,580 235,166 227,580 235,166 235,135 212,380 235,135 227,550 235,135 227,550 235,135 235,135 227,550 235,135 227,550 235,135 00 0.0 00 0.0 0.0 0.0 0.0 00 0.0 0.0 00 00 2013 Jul Aug Sep Oct Nov Dec 211,198 219,092 183,015 170,280 139,831 140,335 200,350 211.163 186,628 161,644 140,025 125,427 5.4 3.8 -1.9 5.3 -0.1 11.9 2014 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 144,904 148,744 170,289 165,097 185,720 203,720 218,448 218,185 196,345 177,900 159,355 145,703 134,178.. 134,489 156,821 147,599 175,819 202,792. 211,198 219,092 183,015 170,280 139,831 140,335 8.0 10.6 8.6 11.9 5.6 0.5 3.4 -0.4 7.3 4.5 14.0 3.8 2013 Jul Aug Sep Oct Census Props 51 51 51 51 51 51 Census Rooms 7585 7585 7585 7585 7585 7585 % Rooms Participants 91.6 91.6 91.6 91.6 91.6 91.6 51 51 51 51 51 51 5151 51 51 51 51 7585 7585 7585 7585 7585 7585 7585 7585 7586 7586 7586 7586 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 A blank row indcales insufficient data 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Currency: USD - US Dollar Overall Percent Change Year To Date Running 12 Months °Occupancy DADR nRevPAR Year To Date 2012 2013 2014 71.4 68.9 3.6 72.8 77.1 71.4 728 1.9 5.9 Year To Date 2012 2013 2014 95.12 92.55 2.8 98.17 95.12 3.2 105.89 98.17 7,9 2012 Year To Date 2013 2014 67,93 63.78 6,5 71.47 67.93 5.2 81.64 71,47 14.2 2012 Year To Date 2013 2014 2,735,607 2,768,525 2,768,647 2,688,955 2735,607 2,768,525 1.7 12 0,0 2012 1,953,583 .1,853,227 5.4 Year To Date 2013 2,015,449 1,953,583 3.2 2014 2,134,410 2,015,449 5.9 Year To Date 2012 2013 2014 185,821,833 197,857,428 226,020,754 171,510,177 185,821.833 197,857,428 8.3 6.5 14.2 Running 12 Months 2012 2013 2014 71.4 68.9 3.6 72.8 71.4 1.9 77.1 72.8 5.9 Running 12 Months 2012 2013 2014 95.12 92.55 2.8 98,17 95.12 3.2 105.89 98.17 7.9 Running 12 Months 2012 2013 2014 67.93 63.78 6.5 71.47 87.93 5.2 81.64 71.47 142 Running 12 Months 2012 2013 2014 2,735,607 2.688,955 1.7 2,768,525 2,735,607 1.2 2,768,647 2,768,525 0.0 Running 12 Months 2012 2013 2014 1,953,583 2,015,449 2,134,410 1,853,227 1,953,583 2,015,449 5.4 32 5.9 Running 12 Months 2012 2013 2014 185,821,833 197,857,428 226,020,754 171,510,177 185,821,833 197,857,428 8.3 6.5 14.2 Source 2015 STR, Inc. DISCLOSURE Destination Reports are publications of STR, Inc. (Reports containing only Nath American data) and STR Global Ltd (Reports containing worldwide data) and are intended solely for use by our paid subscribers. Reproduction or distribution of Destination Reports, in whole or pan, without written pemossion of either STR, Inc. or STR Global Ltd. is prohibited and subject to legal action. Site licenses are available. Please consul) your contract with STR, Inc. or STR Global, Ltd for the terms and conditions governing the ownership. dislribution and use of Destination Reports and their contents. 2013 2014 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 22,756,107 24,618.066 18,249,910 16,696,143 12,928,767 12.173,213 13,058,551 14,134,146 16,068,604 15,657,033 18,489,932 23,737,379 27,520,284 27,908,615 22,580,634 18,252,162 15,387,834 13,225,580 20,354,592 21,718861 18,194.784 15,541,744 13,017,943 11,031,450 12,313,154 12,724,931 14,492,882 13,811,736 16,663,212 20,429,307 22,756,107 24,618,066 18,249,910 16,696,143 12,928,767 12,173,213 11.8 13.3 0,3 7,4 -0.7 10.3 6.1 11.1 10.9 13.4 11.0 16.2 20.9 13.4 23.7 9.3 19.0 8.6 2013 Jul Aug Sep Oct Census Props 51 51 51 51 51 51 Census Rooms 7585 7585 7585 7585 7585 7585 % Rooms Participants 91.6 91.6 91.6 91.6 91.6 91.6 51 51 51 51 51 51 5151 51 51 51 51 7585 7585 7585 7585 7585 7585 7585 7585 7586 7586 7586 7586 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 91.6 A blank row indcales insufficient data 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Currency: USD - US Dollar Overall Percent Change Year To Date Running 12 Months °Occupancy DADR nRevPAR Year To Date 2012 2013 2014 71.4 68.9 3.6 72.8 77.1 71.4 728 1.9 5.9 Year To Date 2012 2013 2014 95.12 92.55 2.8 98.17 95.12 3.2 105.89 98.17 7,9 2012 Year To Date 2013 2014 67,93 63.78 6,5 71.47 67.93 5.2 81.64 71,47 14.2 2012 Year To Date 2013 2014 2,735,607 2,768,525 2,768,647 2,688,955 2735,607 2,768,525 1.7 12 0,0 2012 1,953,583 .1,853,227 5.4 Year To Date 2013 2,015,449 1,953,583 3.2 2014 2,134,410 2,015,449 5.9 Year To Date 2012 2013 2014 185,821,833 197,857,428 226,020,754 171,510,177 185,821.833 197,857,428 8.3 6.5 14.2 Running 12 Months 2012 2013 2014 71.4 68.9 3.6 72.8 71.4 1.9 77.1 72.8 5.9 Running 12 Months 2012 2013 2014 95.12 92.55 2.8 98,17 95.12 3.2 105.89 98.17 7.9 Running 12 Months 2012 2013 2014 67.93 63.78 6.5 71.47 87.93 5.2 81.64 71.47 142 Running 12 Months 2012 2013 2014 2,735,607 2.688,955 1.7 2,768,525 2,735,607 1.2 2,768,647 2,768,525 0.0 Running 12 Months 2012 2013 2014 1,953,583 2,015,449 2,134,410 1,853,227 1,953,583 2,015,449 5.4 32 5.9 Running 12 Months 2012 2013 2014 185,821,833 197,857,428 226,020,754 171,510,177 185,821,833 197,857,428 8.3 6.5 14.2 Source 2015 STR, Inc. DISCLOSURE Destination Reports are publications of STR, Inc. (Reports containing only Nath American data) and STR Global Ltd (Reports containing worldwide data) and are intended solely for use by our paid subscribers. Reproduction or distribution of Destination Reports, in whole or pan, without written pemossion of either STR, Inc. or STR Global Ltd. is prohibited and subject to legal action. Site licenses are available. Please consul) your contract with STR, Inc. or STR Global, Ltd for the terms and conditions governing the ownership. dislribution and use of Destination Reports and their contents. ittle Southside+ Monthly Percent Change Aug Sep Oct 2013 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -0-Occupancy - ADR -RevPAR Aug Sep Oct Nov Dec 93.2 80.4 72.4 61.5_ 59.7 89.8 82.0 687..E _ 53.3. �� 4 3.8_ -1.9 5.3 0.1 11.9 2014 Jan Feb Mar ^ __ Apr Maj Jun Jul 61.6 _ 70.0 72.4 Aug -- Sep _ Oct Nov Dec 72.6 79.0 89.5 92.9 92.8 86.3 57.1 ,..83.3. - - 75.6 70.0_ 620 74.8 .89.1 8.0 10.6 8.6 11.9 S.6 -. 0.5 3.4 . -0.4 7 3 '32.4 . 615. 59.7_ 7.3 4.5 13.9 3.8 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Currency: USD - US Dollar Overall Percent Change Year To Date Running 12 Months D Occupancy ❑ ADR v RevPAR Year To Date 2012 _ 2013 2014 71.4 72.8 77.1 68.9 71.4_ 3.6 1.9 5.9 V -a, re nate Running 12 Months 2012 _ _ 2013 2014 71.4 72.8 77.1 68.9. 3.6 1.9 5.9 _ _ Running 12 Months 1174 k ,' �:„ I...i 1\`�� ` 1965% w� Tukwila City Council Agenda ``4�L X16 ❖ REGULAR MEETING ❖ �= Jim Haggerton, Mayor Councilmembers: ❖ Joe Duffie + Dennis Robertson David Cline, City Administrator ❖ Allan Ekberg ❖ Verna Seal De'Sean Quinn, Council President ❖ Kathy Hougardy ❖ Kate Kruller Monday, December •3 EXECUTIVE SESSION — 6:00 PM — 7:00 PM ❖ Potential Litigation — Pursuant to RCW 42.30.110(1)(i) (60 minutes) 4 LOCATION: Hazelnut Conference Room (CR #3) 1, 2014; 7:00 PM • Ord #2460 • Res #1851 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL 2. SPECIAL PRESENTATIONS a.. An update on the Puget Sound Emergency Radio Network (PSERN) system implementation. Lora Ue/and, Executive Director, Valley Com. b. An update on the grocery store survey. Brandon Miles, Economic Development Liaison, and Junpei Guo, Economic Development Intern. c. Moss Adams IT operations assessment. David Cline, City Administrator. Pg.1 3. PROCLAMATION A proclamation for Employee Learning Week. Pg.3 4. CITIZEN COMMENT At this time, you are invited to comment on items not included on this agenda (p/ease limit your comments to five minutes per citizen). To comment on an item listed on this agenda, please save your comments until the issue is presented for 'discussion. 5. CONSENT • AGENDA a. Approval of Minutes: 11/17/14 (Regular Mtg.) , , b. Approval of Vouchers. c. An ordinance granting a non-exclusive franchise to McLeodUSA Telecommunications Services, LLC, legally authorized to conduct business in the State of Washington, for the purpose of constructing, operating and maintaining a telecommunications system in certain public rights-of-way in the City; repealing Ordinance No. 1925. (Reviewed and forwarded to Consent by Utilities Committee on 11/17/14.) d. Accept as complete the Andover Park East and Andover Park West Sewer Repair Project (contract #13-084) with Omega Contractors, Inc.; authorize release of retainage, subject to the standard claim and lien release procedures (final cost of project, including retainage: $123,322.97). (Reviewed and forwarded to Consent by Utilities Committee on 11/17/14) Pg.5 Pg.27 (continued..) REGULAR MEETING Monday, December 1, 2014 Page 2 5. CONSENT AGENDA (cont.) e. Accept as complete the 2013 Annual Sewer Program for the sewer repair at 6450 Southcenter Boulevard (contract #13-181) with Green River Construction, Inc.; authorize release of retainage, subject to the standard claim and lien release procedures (final cost of project, including retainage: $138,626.03). (Reviewed and forwarded to Consent by Utilities Committee on 11/17/14.) f. Authorize the Mayor to sign an Interlocal Agreement with the City of SeaTac for probation services. (Reviewed and forwarded to Consent by Finance and Safety Committee on 11/18/14.) g. Authorize the Mayor to sign a contract with Securitas Security Services USA, Inc., for 2015-2016 security services for the Tukwila Municipal Court in the amount of $80,020.00. (Reviewed and forwarded to Consent by Finance and Safety Committee on 11/18/14.) h. Authorize the Mayor to sign Change Order No. 3 to Utility Relocation Agreement #13-121 with Puget Sound Energy for utility relocation relating to the Tukwila Urban Center Transit Center Project in the amount of $147,451.00, with the City's share being $119,435.31. (Reviewed and forwarded to Consent by Transportation Committee on 11/24/14.) Pg.35 Pg.43 Pg.55 Pg.71 6. UNFINISHED BUSINESS a. A resolution of the City Council affirming its commitment to youth engagement and approving the Teens for Tukwila Charter. b. An ordinance approving and authorizing the Development Agreement with Tukwila TSD, LLC, for the shared use of parking in the public right-of-way of Christensen Road and the development of a public pocket park at the north end of Christensen Road, as it relates to the planned development of a hotel located at 90 Andover Park East. c. A resolution updating and clarifying the non -represented employees' compensation and adopting the non -represented salary schedule and benefits summary, effective January 1, 2015. d. Authorize the Mayor to sign a Collective Bargaining Agreement with the United Steelworkers (USW) for the period of January 1, 2014 through December 31, 2016 for Tukwila Police Commanders. Please refer to 11/24/14 CO.W. packet. Q e. An ordinance repealing various ordinances as codified at Tukwila Municipal Code Chapter 5.44, "Tow Truck Businesses." f. An ordinance establishing an exemption from real property taxation for development of qualified multi -family housing; establishing new regulations to be codified in Tukwila Municipal Code Chapter 3.90 relating to the designation of a residential targeted area within the Tukwila Urban Center. Pg.81 Pg.87 Pg.119 Pg.129 Pg.131 Pg.135 (continued..) REGULAR MEETING Monday, December 1, 2014 Page 3 6. UNFINISHED BUSINESS (cont.) g. Authorize the Mayor to sign a contract with PBS Engineering + Environmental for engineering services for the Urban Renewal Demolition Project in the amount of $149,018.60. Please refer to 11/24/14 C.O.W. packet. Q h. An ordinance amending Ordinance Nos. 2298 §1 (part) and 2258 §3, as codified at Tukwila Municipal Code Section 3.54.030, extending the City utility tax sunset provision. i. Tukwila International Boulevard (TIB) redevelopment financing: (1) An ordinance relating to contracting indebtedness; authorizing the issuance of the City's not to exceed $2,250,000 principal amount Limited Tax General Obligation Bond Anticipation Note, 2014 (Taxable Non -Revolving Line of Credit), to provide interim financing to carry out land acquisition and capital costs of redevelopment activities within the City's Urban Renewal Area, and pay the costs of issuance and sale of the Note; fixing the date, form, maturity, interest rate, terms and covenants of the Note; approving the sale and delivery of the Note to the bank identified herein. (2) An ordinance relating to contracting indebtedness; providing for the issuance, sale and delivery of $3,850,000 aggregate principal amount of Limited Tax General Obligation Bonds to provide funds to carry out land acquisition and capital costs of redevelopment activities within t he City's Urban Renewal Area, and to pay the costs of issuance and sale of the bonds; fixing certain terms and covenants of the bonds; and providing for other related matters. Pg.151 Pg.153 Pg.157 Pg.159 Pg.171 7. NEW BUSINESS Authorize the Mayor to sign a Collective Bargaining Agreement with the Tukwila Police Officers Guild for the period of January 1, 2014 through December 31, 2016. Pg.181 8. REPORTS a. Mayor b. City Council c. Staff - City Administrator Report d. City Attorney e. Intergovernmental Pg.185 9. MISCELLANEOUS 10. EXECUTIVE SESSION 11. ADJOURNMENT Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice to the City Clerk's Office (206-433-1800 or TukwilaCityClerk@TukwilaWA.gov). This notice is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio/video taped. HOW TO TESTIFY If you would like to address the Council, please go to the podium and state your name and address clearly for the record. Please observe the basic rules of courtesy when speaking and limit your comments to five minutes. The Council appreciates hearing from citizens but may not be able to take immediate action on comments received until they are referred to a Committee or discussed under New Business. COUNCIL MEETINGS No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given. Regular Meetings - The Mayor, elected by the people to a four-year term, presides at all Regular Council Meetings held on the 1st and 3rd Mondays of each month at 7:00 p.m. Official Council action in the form of formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular Council meetings. Committee of the Whole Meetings - Council members are elected for a four-year term. The Council President is elected by the Council members to preside at all Committee of the Whole meetings for a one-year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m. Issues discussed are forwarded to the Regular Council meeting for official action. GENERAL INFORMATION At each Council meeting citizens are given the opportunity to address the Council on items that are not included on the agenda during CITIZENS COMMENTS. Please limit your comments to 5 minutes. Special Meetings may be called at any time with proper public notice. Procedures followed are the same as those used in Regular Council meetings. Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel matters. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the Tukwila Municipal Code states the following guidelines for Public Hearings: 1. The proponent shall speak first and is allowed 15 minutes for a presentation. 2. The opponent is then allowed 15 minutes to make a presentation. 3. Each side is then allowed 5 minutes for rebuttal. 4. Citizens who wish to address the Council may speak for 5 minutes each. No one may speak a second time until everyone wishing to speak has spoken. 5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the question, but may not engage in further debate at this time. 6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss the issue among themselves, or defer the discussion to a future Council meeting, without further public testimony. Council action may only be taken during Regular or Special Meetings. COUNCIL AGENDA SYNOPSIS Initia/s Meeting Dale Prepared by A1ayors review Council review 11/24/14 MD ‘-in t ❑ Resolution Mtg Dote 12/01/14 MD 44 e- &A AN Date Alts Date 12/1/14 Altg Date 11/24/14 J SP(.)NSOR'S Approval of an Ordinance and Development Agreement for the proposed hotel SUMMARY development at 90 Andover Park East that would allow the shared use of parking in the right-of-way of Christensen Road in exchange for the construction of a public pocket park. The Council is being asked to hold a public hearing and consider the draft ordinance and the associated development agreement. Rt vIE\VED BY ❑ COW Mtg. ❑ Utilities Cmte DATE: 11/12/14 /1 CA&P Cmte ITEM INFORMATION ITEM No. 6.B. 87 STAFF SPONSOR: JACK PACE ORIGINAL AGENDA DATE: 11/24/14 AGENDA PEEN{ TITLE An Ordinance and Development Agreement for the proposed hotel at 90 Andover Park East. CATFIGORY Discussion 11/24/14 ❑ Motion AN Date ❑ Resolution Mtg Dote ►1 Ordinance ❑ .Bid Award Alts Date Public Heating ❑ Other Altg Date AN Date Alts Date 12/1/14 Altg Date 11/24/14 SPONSOR ❑ Council ❑ Payor E HR 4 DCD ❑ .Finance 1 Fire ❑ IT ❑ P&R ❑ Police ❑ Pr SP(.)NSOR'S Approval of an Ordinance and Development Agreement for the proposed hotel SUMMARY development at 90 Andover Park East that would allow the shared use of parking in the right-of-way of Christensen Road in exchange for the construction of a public pocket park. The Council is being asked to hold a public hearing and consider the draft ordinance and the associated development agreement. Rt vIE\VED BY ❑ COW Mtg. ❑ Utilities Cmte DATE: 11/12/14 /1 CA&P Cmte ❑ F&S Cmte ❑ Parks ❑ Transportation Cmte Comm. ❑ Planning Comm. CHAIR: JOE DUFFIE ❑ Arts Comm. COMMITI EE RECOMMENDATIONS: SPONSOR/ADMIN. CoMMI'fl'I Department of Community Development E Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPIsNDI1'URI3 RI ,Li IRI AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/24/14 Forward to next Regular Meeting MTG. DATE ATTACHMENTS 11/24/14 Informational Memorandum dated 11/04/14 Vicinity Map Ordinance in Draft Form Development Agreement with Exhibits 1, 2, 3 Map showing riverbank in the vicinity of the site Minutes from the Community Affairs and Parks Committee meeting of 11/12/14 12/1/14 Final Ordinance with attachments 87 City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, APPROVING AND AUTHORIZING THE DEVELOPMENT AGREEMENT WITH TUKWILA TSD, LLC, FOR THE SHARED USE OF PARKING IN THE PUBLIC RIGHT-OF-WAY OF CHRISTENSEN ROAD AND THE DEVELOPMENT OF A PUBLIC POCKET PARK AT THE NORTH END OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST; 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, Tukwila TSD, LLC, desires to build a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, Tukwila TSD, LLC, proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, Tukwila TSD, LLC, also proposes to develop and maintain a pocket park within the cul-de-sac area of Christensen Road; and WHEREAS, the City of Tukwila and Tukwila TSD, LLC, wish to enter into a Development Agreement for the shared use of parking in the public right-of-way of Christensen Road and the development of a public pocket park at the north end of Christensen Road, as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A; and WHEREAS, as required pursuant to Tukwila Municipal Code Section 18.86.050, a public hearing was conducted on the 24th day of November 2014 to take public testimony regarding this Development Agreement, as proposed; and W: Word Processing\Ordirfances\Public pocket park at 90 APE DA 11-3-14 MD:bjs Page 1 of 2 89 90 WHEREAS, the City Council finds that the terms of this Development Agreement are necessary to achieve public benefits, to respond to changing community needs and to encourage modifications that adequately achieve the purposes of otherwise applicable City standards; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Development Agreement. The Development Agreement by and between the City of Tukwila and Tukwila TSD, LLC, for the use of shared parking in the public right-of-way of Christensen Road and the development of a public pocket park at the north end of Christensen Road, as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A, is hereby approved, and the Mayor is authorized and directed to execute said 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 , 2014. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Rachel Turpin, City Attorney Ordinance Number: Exhibit A — Development Agreement W: Word Processing\Ordinances\Public pocket park at 90 APE DA 11-3-14 MD:bjs Page 2 of 2 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND TUKWILA TSD LLC, FOR THE SHARED USE OF PARKING IN THE RIGHT OF WAY OF CHRISTENSEN ROAD AND THE DEVELOPMENT OF A PUBLIC POCKET PARK AT THE NORTH END OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST I. PREAMBLE THIS DEVELOPMENT AGREEMENT is made and entered into this day of , 2014, by and between the City of Tukwila, a noncharter, optional code Washington municipal corporation, hereinafter the "City," and Tukwila TSD LLC, a (corporation, limited partnership, partnership, etc.) organized under the laws of the State of Washington, hereinafter the "Developer." II. RECITALS WHEREAS, the Developer desires to develop a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, one parking space per guest room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District; and WHEREAS, the Developer has submitted a site plan showing the required number of parking stalls for the hotel cannot be accommodated as surface parking on the project site; and WHEREAS, the Developer proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Rd. to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, the City of Tukwila is the owner of the Christensen Rd. right-of-way, which includes undeveloped area adjacent to the project's eastern property line, paved street, parking, and cul-de-sac areas; and WHEREAS, the parking area in the right-of-way of Christensen Rd. is currently used by members of the public for access to the Green River Trail, shoreline, and parks areas; and WHEREAS, hotel parking spaces are expected to be used primarily in the evening and nighttime hours; parking spaces for trail, shoreline, and parks access are expected to be used during daylight hours; and WHEREAS, the Developer proposes to develop and maintain a public pocket park within the cul-de-sac area as outlined in Exhibit B in exchange for use of the other right-of-way areas on the east side of the project site for parking; and 1 91 WHEREAS, the Developer proposes to add parking spaces within the undeveloped right-of- way area adjacent to the hotel site and to reconfigure existing spaces to increase the number of parking spaces that would be shared for hotel use and the public for access to the Green River Trail; and WHEREAS, all parking spaces within the right-of-way area will be shared and at least four spaces will be designated for non -hotel users to ensure access to the Green River Trail for members of the public; and WHEREAS, the Developer proposes to maintain the parking area within the right-of-way as outlined in Exhibit B for the length of this agreement; and WHEREAS, the vision for parking areas within the Transit Oriented Development (TOD) Neighborhood in the Southcenter Subarea Plan is that "parking will be accommodated by a combination of off- and on -street parking spaces/lots" and shared parking facilities. "Such facilities can be shared between public and private uses" (p. 19); and WHEREAS, the Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...."; and WHEREAS, the Developer proposes to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and Green River Trail; and WHEREAS, implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan include "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships; and WHEREAS, a through -way from Andover Park East to Christensen Rd will be constructed as part of the project to replace the emergency vehicle maneuvering function of the cul-de-sac; and WHEREAS, the pocket park will be a City of Tukwila park that will provide mutual benefits to hotel guests and the public; and WHEREAS, uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan and the proposed development furthers this goal; and WHEREAS, the Washington State Legislature has authorized the execution of a development agreement between a local government and a person having ownership or control of real property within its jurisdiction (RCW 36.70B.170(1)); and 2 92 WHEREAS, a development agreement must set forth the development standards and other provisions that shall apply to, govern and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement (RCW 36.70B.170(1)); and WHEREAS, for the purposes of this development agreement, "development standards" includes, but is not limited to, all of the standards listed in RCW 36.70B.170(3); and WHEREAS, a development agreement must be consistent with the applicable development regulations adopted by a local government planning under chapter 36.70A RCW (RCW 36.70B.170(1)); and WHEREAS, TMC Section 18.86.030 explicitly allows for flexibility in development standards applicable to a property developed under a development agreement "to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards"; and WHEREAS, this Development Agreement by and between the City of Tukwila and the Developer (hereinafter the "Development Agreement"), relates to the development known as the 90 Andover Park East Hotel and Pocket Park, which is located at: 90 Andover Park East (hereinafter the "Subject Property"); and WHEREAS, a development agreement must be approved by ordinance or resolution after a public hearing (RCW 36.70B.200); and WHEREAS, a public hearing for this Development Agreement was held on November 24, 2014, and the City council approved this Development Agreement by Ordinance on ; and NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows: III. AGREEMENT Section 1. The Project. The Project is the development and use of the Subject Property, consisting of 0.39 acres (approximately17,000 square feet) in the City of Tukwila located at 90 Andover Park East and a portion of Christensen Road right-of-way for a ninety-two (92) room five (5) story hotel, a Pocket Park, and forty-five (45) shared parking spaces on Christensen Road right- of-way, as shown on Exhibit B. Section 2. The Subject Property. The Subject Property and right-of-way are legally described in Exhibit A, attached hereto and incorporated herein by this reference. 3 93 Section 3. Definitions. As used in this Development Agreement, the following terms, phrases and words shall have the meanings and be interpreted as set forth in this Section. a) "Adopting Ordinance" means the Ordinance which approves this Development Agreement, as required by RCW 36.70B.200. b) "Council" means the duly elected legislative body governing the City of Tukwila. c) "Design Guidelines" means the Tukwila Design Manual, as adopted by the City. d) "Director" means the City's Community Development Director. e) "Effective Date" means the effective date of the Adopting Ordinance. f) "Existing Land Use Regulations" means the ordinances adopted by the City Council of Tukwila in effect on the Effective Date, including the adopting ordinances that govern the permitted uses of land, the density and intensity of use, and the design, improvement, construction standards and specifications applicable to the development of the Subject Property, including, but not limited to the Comprehensive Plan, the City's Official Zoning Map and development standards, the Design Manual, the Public Works Standards, SEPA, Concurrency Ordinance, and all other ordinances, codes, rules and regulations of the City establishing subdivision standards, park regulations, building standards. "Existing Land Use Regulation" does not include non -land use regulations, which includes taxes and impact fees. g) "Landowner" is the party who has acquired any portion of the Subject Property from the Developer who, unless otherwise released as provided in this Agreement, shall be subject to the applicable provisions of this Agreement. The "Developer" is identified in Section 5 of this Agreement. h) "Project" means the anticipated development of the Subject Property, as specified in Section 1 and as provided for in all associated permits/approvals, and all incorporated exhibits. i) "Vesting date" means the date a valid and fully complete building permit application for the hotel is submitted to the City of Tukwila. Section 4. Exhibits. Exhibits to this Agreement are as follows: a) Exhibit 1 - legal description of the Subject Property and the right-of-way. b) Exhibit 2 - Conceptual Site Plan c) Exhibit 3 - Conceptual Site Plan of the Pocket Park including a list of park amenities; construction and maintenance cost estimates for the Pocket Park and parking area; and land value estimate for the parking and drive -aisle area of Christensen Road right-of-way. 4 94 Section 5. Parties to Development Agreement. The parties to this Agreement are: a) The "City" is the City of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188. b) The "Developer" or Owner is a private enterprise which owns the Subject Property in fee, and whose principal office is located at 21109 66th Avenue South, Kent, WA 98032. c) The "Landowner." From time to time, as provided in this Agreement, the Developer may sell or otherwise lawfully dispose of a portion of the Subject Property to a Landowner who, unless otherwise released, shall be subject to the applicable provisions of this Agreement related to such portion of the Subject Property. Section 6. Project is a Private Undertaking. It is agreed among the parties that the Project is a private development and that the City has no interest therein except as explicitly outlined in this Agreement and as authorized in the exercise of its governmental functions. Section 7. Effective Date and Term. This Agreement shall commence upon the effective date of the Adopting Ordinance approving this Agreement, and shall continue in force for a period of 50 years, with the option to extend the Agreement an additional 30 years, unless extended or terminated as provided herein. Following the expiration of the term or extension thereof, or if sooner terminated, this Agreement shall have no force and effect, subject however, to post -termination obligations of the Developer or Landowner. Section 8. Terms. A. Design • The Project at 90 Andover Park East shall be allowed non-exclusive use rights for the parking spaces and drive aisle area of Christensen Rd (as depicted in Exhibit B) to meet minimum parking requirements for the development. This Agreement shall not preclude the City from entering into additional agreements regarding use of this area by other private parties. The Project will be subject to the development regulations in effect at the time of complete permit application submittals. • The site plan attached as Exhibit B is included with this Agreement for reference only, and has not yet been approved as of the date of execution of this Agreement. The site plan shall be subject to modifications during review of the required land use permits. • As a result of the cul-de-sac closure for use as the pocket park, public access through 90 Andover Park East is hereby allowed and provided for. • The Developer shall construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the proposed pocket park and the Green River Trail. 5 95 • All shared parking stalls will be constructed and maintained to Public Works Infrastructure Design and Construction Standards. • The detailed park design meeting the requirements for approval shall be approved by the Director of the City of Tukwila Parks and Recreation Department as part of the building permit approval process. The Conceptual Plan (Exhibit C) shall be revised to address the following items: a) Specific locations of the trash receptacles and the three outdoor exercise pieces shall be noted. b) A short pathway connecting the trails/walkways shall be included. c) Specifications and details of the monument wall and the outdoor exercise equipment shall be preapproved by the Parks Department. • The Developer shall be responsible for making a payment of $10,000 for the Green/Duwamish River restoration/planting projects or to implement the goals and policies of the City's Comprehensive Plan related to Urban Forestry. This payment shall be made prior to the issuance of the building permit for the hotel. B. Construction • The cost of permits and plans required for construction of the park and parking area shall be borne by the Developer and submitted as part of the permits for the hotel. The pocket park must receive final approval by all required City departments prior to issuance of the Certificate of Occupancy for the hotel. • The Developer is responsible to provide any electrical service that may be necessary for the pocket park. C. Maintenance • The pocket park and the parking area shall be subject to inspections every five years. • Developer is solely responsible for the cost and maintenance of the pocket park and the parking spaces. New striping of the parking spaces shall be completed every three years. • A detailed maintenance plan for the pocket park must be submitted and preapproved by the Parks and Recreation Department before acceptance. D. Operations • A total of 92 parking spaces are required for the 92 -room hotel as proposed. The site plan in Exhibit B includes 98 parking spaces. All parking spaces within the right-of-way of Christensen Road shall be for the joint use of the hotel users and members of the public and at least four spaces shall be designated for non -hotel users to ensure access to the Green River Trail for members of the public. 6 96 Section 9. Vested Rights. During the term of this Agreement, unless sooner terminated in accordance with the terms hereof, in developing the Subject Property consistent with the Project described herein, Developer is assured, and the City agrees, that the development rights, obligations, terms and conditions specified in this Agreement, are fully vested in the Developer and may not be changed or modified by the City, except as may be expressly permitted by, and in accordance with, the terms and conditions of this Agreement, including the Exhibits hereto, or as expressly consented thereto by the Developer. Section 10. Minor Modifications. Minor modifications from the approved permits or the exhibits attached hereto may be approved in accordance with the provisions of the City's code, and shall not require an amendment to this Agreement. Section 11. Further Discretionary Actions. Developer acknowledges that the Existing Land Use Regulations contemplate the exercise of further discretionary powers by the City. These powers include, but are not limited to, review of additional permit applications under SEPA. Nothing in this Agreement shall be construed to limit the authority or the obligation of the City to hold legally required public hearings, or to limit the discretion of the City and any of its officers or officials in complying with or applying Existing Land Use Regulations. Section 12. Existing Land Use Fees and Impact Fees. A. Land use fees adopted by the City by ordinance as of the Effective Date of this Agreement may be increased by the City from time to time, and are applicable to permits and approvals for the Subject Property, as long as such fees apply to similar applications and projects in the City. B. All impact fees shall be paid as set forth in the approved permit or approval, or as addressed in Chapters 16.26 and 9.48 of the Tukwila Municipal Code. IV. GENERAL PROVISIONS Section 1. Assignment of Interests, Rights, and Obligations. This Agreement shall be binding and inure to the benefit of the Parties. No Party may assign its rights under this Agreement without the written consent of the other Party, which consent shall not unreasonably be withheld. This Agreement shall be binding upon and shall inure to the benefit of the heirs, successors, and assigns of the Developer and the City. Section 2. Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein. Section 3. Severability. The provisions of this Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity of its application to other persons or circumstances. 7 97 Section 4. Termination. This Agreement shall expire and/or terminate as provided below: A. This Agreement shall expire and be of no further force and effect if the Developer fails to submit a complete building permit application for the construction of the hotel within one year, or if the Project construction is not completed within three years, of the effective date of this Agreement; or if at any time after Project construction is completed, Developer fails to maintain the Pocket Park and the parking areas according to the terms of this Agreement. Nothing in this Agreement shall extend the expiration date of any permit or approval issued by the City for any development. B. This Agreement shall expire and be of no further force and effect if the Developer does not construct the Project as contemplated by the permits and approvals identified in this Agreement, or submits applications for development of the Subject Property that are inconsistent with such permits and approvals. C. This Agreement shall terminate at such time as a change of use occurs at 90 Andover Park East, or at such time as 90 Andover Park East is redeveloped. D. This Agreement shall terminate in the event the Washington State Department of Transportation (WSDOT) widens Interstate 405 in vicinity of the Subject Property, or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park. E. This Agreement shall terminate upon the abandonment of the Project by the Developer. The Developer shall be deemed to have abandoned the Project if/when written notice is provided to the City that the Developer's interest in the Project has been terminated. Said notice shall be given to the City no more than thirty (30) days after the. Developer's interest in the Project is terminated. F. This Agreement may terminate pursuant to Section IV.3, Severability, or Section IV.10, Default, or as otherwise outlined in this Agreement. G. If the use will continue upon expiration of the term of this Agreement, the Developer shall either negotiate a new agreement with the City or provide documentation showing how the number of parking spaces required by the codes at the time of expiration will be provided. 8 98 Section 5. Effect upon Termination on Developer Obligations. Termination of this Agreement as to the Developer of the Subject Property or any portion thereof shall not affect any of the Developer's obligations to comply with the City Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or subdivision map or other land use entitlements approved with respect to the Subject Property, any other conditions of any other development specified in the Agreement to continue after the termination of this Agreement or obligations to pay assessments, liens, fees or taxes. Section 6. Effects upon Termination on City. Upon any termination of this Agreement as to the Developer of the Subject Property, or any portion thereof, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the property affected by such termination (provided that vesting of such entitlements, conditions or fees may then be established for such property pursuant to then existing planning and zoning laws). Section 7. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default hereof. Section 8. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. Venue for any action shall lie in King County Superior Court or the U.S. District Court for Western Washington. Section 9. Attorneys' Fees. In the event of any litigation or dispute resolution process between the Parties regarding an alleged breach of this Agreement, neither Party shall be entitled to any award of attorneys' fees. Section 10. Notice of Default/Opportunity to Cure/Dispute Resolution. A. In the event a Party, acting in good faith, believes the other Party has violated the terms of this Agreement, the aggrieved Party shall give the alleged offending Party written notice of the alleged violation by sending a detailed written statement of the alleged breach. The alleged offending Party shall have thirty (30) days from receipt of written notice in which to cure the alleged breach unless the Parties agree, in writing, to additional time. This notice requirement is intended to facilitate a resolution by the Parties of any dispute prior to the initiation of litigation. Upon providing notice of an alleged breach, the Parties agree to meet and agree upon a process for attempting to resolve any dispute arising out of this Agreement. A lawsuit to enforce the terms of this Agreement shall not be filed until the latter of (a) the end of the cure period or (b) the conclusion of any dispute resolution process. B. After notice and expiration of the thirty (30) day period or other time period as agreed to by the Parties, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other party or Landowner to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. In addition, the City may decide to file an action to enforce the City's Codes, and to obtain penalties and costs as provided in the Tukwila Municipal Code for violations of this Development Agreement and the Code. 9 99 Section 11. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and is not intended to benefit any other person or entity, and no person or entity not a signatory to this Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No other person or entity not a Party to this Agreement may enforce the terms and provisions of this Agreement. Section 12. Integration. This Agreement and its exhibits represent the entire agreement of the parties with respect to the subject matter hereof. There are not other agreements, oral or written, except as expressly set forth herein. Section 13. Authority. The Parties each represent and warrant that they have full power and actual authority to enter into this Agreement and to carry out all actions required of them by this Agreement. All persons are executing this Agreement in their representative capacities and represent and warrant that they have full power and authority to bind their respective organizations. Section 14. Covenants Running with the Land. The conditions and covenants set forth in this Agreement and incorporated herein by the Exhibits shall run with the land and the benefits and burdens shall bind and inure to the benefit of the parties. The Developer, Landowner and every purchaser, assignee or transferee of an interest in the Subject Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Subject Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of a Developer contained in this Agreement, as such duties and obligations pertain to the portion of the Subject Property sold, assigned or transferred to it. Section 15. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be amended by mutual consent of all of the parties, provided that any such amendment shall follow the process established by law for the adoption of a development agreement (see, RCW 36.70B.200). However, nothing in this Agreement shall prevent the City Council from making any amendment to its Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations affecting the Subject Property as the City Council may deem necessary to the extent required by a serious threat to public health and safety. Nothing in this Development Agreement shall prevent the City Council from making any amendments of any type to the Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations relating to the Subject Property. Section 16. Releases. Developer, and any subsequent Landowner, may free itself from further obligations relating to the sold, assigned, or transferred property, provided that the buyer, assignee or transferee expressly assumes the obligations under this Agreement as provided herein. 10 100 Section 17. Notices. Notices, demands, correspondence to the City and Developer shall be sufficiently given if dispatched by pre -paid first-class mail to the addresses of the parties as designated in Section 5. Notice to the City shall be to the attention of both the Mayor's Office and the City Attorney. Notices to subsequent Landowners shall be required to be given by the City only for those Landowners who have given the City written notice of their address for such notice. The parties hereto may, from time to time, advise the other of new addresses for such notices, demands or correspondence. Section 18. Reimbursement for Agreement Expenses of the City. Developer agrees to reimburse the City for actual expenses incurred over and above fees paid by Developer as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees and reasonable staff and consultant costs not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section, as well as any processing fees owed to the City for the Project, are paid to the City. This Agreement shall be terminated if the Developer does not pay to the City the fees provided for in this section. Upon payment of all expenses, the Developer may request written acknowledgement of all fees. Such payment of all fees shall be paid, at the latest, within thirty (30) days from the City's presentation of a written statement of charges to the Developer Section 19. Police Power. Nothing in this Agreement shall be construed to diminish, restrict or limit the police powers of the City granted by the Washington State Constitution or by general law. Section 20. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party or a Landowner to challenge this Agreement or any provision herein, the City and Developer will collaborate to resolve such legal action. In the event such legal action cannot be resolved, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to Developer and/or Landowner(s). In such event, Developer and/or such Landowners shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to, attorneys' fees and expenses of litigation, and damages awarded to the prevailing party or parties in such litigation. Neither the City nor the Developer and/or Landowner shall settle any lawsuit without the consent of the other. The City and Developer/Landowner shall act in good faith and shall not unreasonably withhold consent to settle. Section 21. No Presumption Against Drafter. This Agreement has been reviewed and revised by legal counsel for both Parties and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreement. Section 22. Headings. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this Agreement. Section 23. Recording. Developer shall record an executed copy of this Agreement with the King County Auditor, pursuant to RCW 36.70B.190, no later than fourteen (14) days after the Effective Date. 11 101 Section 24. Legal Representation. In entering into this Agreement, Developer represents that it has been advised to seek legal advice and counsel from its attorney concerning the legal consequences of this Agreement; that it has carefully read the foregoing Agreement and knows the contents thereof, and signs the same of its own free act; and that it fully understands and voluntarily accepts the terms and conditions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the dates set forth below: OWNER/DEVELOPER: CITY OF TUKWILA By By Its Managing Member Its Mayor Tukwila TSD LLC 21109 66th Avenue South Kent, WA 98032 ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day of , 2014, before me personally appeared , to me known to be the individual that executed the within and foregoing instrument, and acknowledged the said instrument to be his/her free and voluntary act and deed for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. 12 102 Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day of , 2014, before me personally appeared , and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged as the of the City of Tukwila to be the free and voluntary act of said party for the uses and purposes mentioned in this instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 13 103 EXHIBIT 1 NOVEMBER 18, 2014 PROJECT NO. 06007 EXHIBIT 1-A LEGAL DESCRIPTION OF PROPERTY TRACT 4, ANDOVER INDUSTRIAL PARK NO. 1, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 66 OF PLATS, PAGE 36, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THE SOUTH 28 FEET THEREOF; AND EXCEPT THAT PORTION THEREOF CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NO. 592245, ACCORDING TO DECREE FILED JANUARY 14, 1963. 104 EXHIBIT 1-B LEGAL DESCRIPTION PARKING EASEMENT NOVEMBER 18, 2014 PROJECT NO. 06007 AN EASEMENT FOR VEHICULAR PARKING PURPOSES OVER, ACROSS AND UPON THE RIGHT-OF-WAY OF CHRISTENSEN ROAD, BEING LOCATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 23, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON. SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF ANDOVER PARK EAST WITH THE CENTERLINE OF TUKWILA PARKWAY AS MARKED BY A CONCRETE MONUMENT; THENCE NORTH 84°44'00" EAST ALONG THE CENTERLINE OF TUKWILA PARKWAY 231.72 FEET; THENCE SOUTH 05°16'00" EAST 40.00 FEET TO THE POINT OF INTERSECTION OF THE SOUTH MARGIN OF TUKWILA PARKWAY WITH THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE SOUTHERLY ALONG SAID WEST MARGIN ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 00°13'45", THE CENTER OF WHICH BEARS SOUTH 80°38'25" WEST, AN ARC DISTANCE OF 1.75 FEET TO THE TRUE POINT OF BEGINNING; THENCE EASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 35.00 FEET, A CENTRAL ANGLE OF 28°38'13" EAST, THE CENTER OF WHICH BEARS NORTH 23°22'13" EAST, AN ARC DISTANCE OF 17.49 FEET TO A POINT OF TANGENCY; THENCE NORTH 84°44'00" EAST 46.59 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; THENCE SOUTHERLY AND EASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 16.94 FEET, A CENTRAL ANGLE OF 73°30'10", THE CENTER OF WHICH BEARS NORTH 87°22'15" EAST, AN ARC DISTANCE OF 21.74 FEET TO A POINT OF REVERSE CURVATURE; THENCE EASTERLY AND SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 2.50 FEET, A CENTRAL ANGLE OF 72°45'37", THE CENTER OF WHICH BEARS SOUTH 13°52'05" WEST, AN ARC DISTANCE OF 3.17 FEET TO A POINT OF COMPOUND CURVATURE; THENCE SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 1547.72 FEET, A CENTRAL ANGLE OF 09°37'47, THE CENTER OF WHICH BEARS SOUTH 86°37'42" WEST, AN ARC DISTANCE OF 260.13 FEET; THENCE NORTH 84°06'43" WEST 43.00 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; PAGE 1 105 (PARKING EASEMENT CONTINUED) THENCE NORTHERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 1504.72 FEET, A CENTRAL ANGLE OF 01°05'52", THE CENTER OF WHICH BEARS NORTH 83°43'52" WEST, AN ARC DISTANCE OF 28.83 FEET TO A POINT OF COMPOUND CURVATURE; THENCE NORTHERLY AND WESTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 25,00 FEET, A CENTRAL ANGLE OF 93°47'54, THE CENTER OF WHICH BEARS NORTFf 84°49'45" WEST, AN ARC DISTANCE OF 40.93 FEET TO THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE NORTH 00°45'11" WEST ALONG SAID WEST MARGIN 152.13 FEET TO THE BEGINNING OF A TANGENT CURVE TO THE LEFT; THENCE CONTINUING NORTH ALONG SAID WEST MARGIN ON A CURVE TO THE LEFT, HAVING A RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 08°22'39", THE CENTER OF WHICH BEARS SOUTH 89°14'49" WEST, AN ARC DISTANCE OF 63.97 FEET TO THE TRUE POINT OF BEGINNING. SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. PAGE 2 106 30' PARK EAST a) 0 N 0 0 z N 0012'09" W 30' EXHIBIT 1-C VEHICULAR PARKING EASEMENT AREA M54_44'00"E._ 0 231.72 -WKWILA PARKWAY N 84'44'00" E -=7.49'- -�;N- o 0 v;o m R=437.50' �=08'36'24" L=65.72' r G 1"=50' NOV. 2014 PROJECT N0. 06007 18903 0 Fs/STE�`E iIALLRI� PAGE 1 OF 2 J 40' /40 TIM HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CLINTON, WA 98236 425.822.7271 107 EXHIBIT 1-C - CONT'D. VEHICULAR PARKING EASEMENT AREA 231.72' c1 TPOB CURVE TABLE CURVE DELTA LENGTH RADIUS. RADIAL BEARING C1 013'45" 1.75' 437.50' S 80'38'25" W C2 28'3813" 17.49' 35.00' N 23'22'13" E C3 73'3010" 21.74' 16.94' N 87'22'15" E C4 72'45'37" 3.17' 2.50' S 13'52'05" W C5 9'37'47" 260.13' 1547.72' S 86'37'42" W C6 1'05'52" 28.83' 1504.72' N 83'43'52" W C7 93'47'54" 40.93' 25.00' N 84'49'45" W C8 8'22'39" 63.97' 437.50' S. 8914'49" W LINE TABLE NUM BEARING DISTANCE L1 N 84'44'00" E 46.59' L2 N 84'06'43" W 43.00' L3 N 00'45'11" W 152.13' 1"=50' NOV. 2014 PROJECT NO. 06007 0.100. c 2r.— 0 i 1 1 I ,u SAL LA* PAGE 2 OF 2 1) 0 11M HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CLINTON, WA 98236 425.822.7271 108 EXHIBIT 1-D LEGAL DESCRIPTION POCKET PARK EASEMENT NOVEMBER 18, 2014 PROJECT NO. 06007 AN EASEMENT FOR POCKET PARK PURPOSES OVER, ACROSS AND UPON THE RIGHTS-OF-WAY OF TUKWILA PARKWAY AND CHRISTENSEN ROAD, BEING LOCATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 23, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON. SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF ANDOVER PARK EAST WITH THE CENTERLINE OF TUKWILA PARKWAY AS MARKED BY A CONCRETE MONUMENT; THENCE NORTH 84°44'00" EAST ALONG THE CENTERLINE OF TUKWILA PARKWAY 220.02 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTHERLY AND EASTERLY ALONG A NON -TANGENT CURVE TO THE RIGHT, HAVING A RADIUS OF 31.28 FEET, A CENTRAL ANGLE OF 150°25'43", THE CENTER OF WHICH BEARS SOUTH 78°05'28" EAST, AND ARC DISTANCE OF 82.13 FEET; THENCE SOUTH 72°17'22" WEST 1.33 FEET TO THE BEGINNING OF A NON - TANGENT CURVE TO THE RIGHT; THENCE SOUTHERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 29.95 FEET, A CENTRAL ANGLE OF 30°02'29", THE CENTER OF WHICH BEARS SOUTH 72°20'22" WEST, AN ARC DISTANCE OF 15.70 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; THENCE EASTERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 23.34 FEET, A CENTRAL ANGLE OF 45°26'42", THE CENTER OF WHICH BEARS SOUTH 03°19'48" EAST, AN ARC DISTANCE OF 18.51 FEET; THENCE SOUTH 04°19'51" EAST 15.19 FEET; THENCE SOUTH 84°44'00" WEST 40.26 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; THENCE NORTHERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 23.34 FEET, A CENTRAL ANGLE OF 05°24'04", THE CENTER OF WHICH BEARS NORTH 86°14'34" EAST, AN ARC DISTANCE OF 2.20 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; THENCE WESTERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 29.95 FEET, A CENTRAL ANGLE OF 30°34'57", THE CENTER OF WHICH BEARS NORTH 14°04'01" WEST, AN ARC DISTANCE OF 15.99 FEET; THENCE SOUTH 16°30'56" WEST 1.33 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; PAGE 1 109 (POCKET PARK EASEMENT CONTINUED) THENCE WESTERLY AND NORTHERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 31 28 FEET, A CENTRAL ANGLE OF 85°23'35", THE CENTER OF WHICH BEARS NORTH 16°30'56" EAST, AN ARC DISTANCE OF 46.62 FEET TO THE TRUE POINT OF BEGINNING. SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. T PAGE 2 110 30' ANDOVER PARK EAST EXHIBIT 1—E POCKET PARK EASEMENT AREA N 84'44'00"_ E N 0012'09" W rn 0 r 0 0 z 30' 0 R=50.00' Ls.=84'56'09" L=74.12' 267.43 220.02' TUKW ILA PARKWAY N 84'44'00" E 159.38' R=437.50' A=08'36'24" L=65.72' 40' 0 I T.L. NO. 022300-0040-03 N O cc ID re) cc) ca to W N o F— .n Z c» 0 ii z 0 211.59' 1"=50' NOV. 2014 PROJECT NO. 06007 N 89'47'51" E ��AL lANa PAGE 1 OF 2 40' TIM HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CLINTON, WA 98236 425.822.7271 111 EXHIBIT 1—E — CONT'D. POCKET PARK EASEMENT AREA C 1 1`,. / \ / TPOB// \ 220.02' i n1 1 Nl 1 \ L— `\\06' I \ \ I r - v. . C5 0 L3 ------ 1" = 20' --- 1"=20' NOV. 2014 PROJECT NO. 06007 h,/ CURVE TABLE CURVE DELTA LENGTH RADIUS RADIAL BEARING C1 150'25'43" 82.13' 31.28' S 78'05'28" E C2 30'02'29" 15.70' 29.95' S 72'20'22" W C3 45'26'42" 18.51' 23.34' S 0319'48" E C4 05'24'04" 2.20' 23.34' N 8614'34" E C5 30'34'57" 15.99' 29.95' N 14'04'01" W C6 852315" 46.62' 31.28' N 1610'56" E E. �V F s , s• PAGE 2 OF 2 LINE TABLE NUM BEARING DISTANCE L1 S 7217'22" W 1.33' L2 S 0419'51" E 15.19' L3 S 84'44'00" W 40.26' L4 S 1610'56" W 1.33' 11M HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CLINTON, WA 98236 425.822.7271 112 PARK EAST TUKWILA PARKWAY EXHIBIT 2 LS VOF_S A Q' 0 0 z Q TY LINE PATIO HOTEL 5 -STORY 59,170 5Q. FT 92 UNITS & TYPICAL PARKING 'CE 9'X19' I 1 I 1 1 I 1 1 1 It cicicicicicic1c: c 04 44 53 ONSITE PARKING SPACES r W rel.z An cr1cicicicl`ic1c1cicicl 4! SITE PLAN I'=50.0' E S a WRITE P NG HOLIDAY I N EXPRESS TULWILA,n TUKWILAfso L.L.C. J alc Sweenc9 ARCHITECT 5715119ni Plies S.E. Be leN74 WAB0000 126500.9908 10/31/14 113 EXHIBIT 3 PROPOSED POCKET PARK — CHRISTENSEN ROAD Development of the park and parking area will include the installation of: • New graded area for the park • A circular seating wall • Bike rack • Picnic tables • Waste receptacle • Pathways • Three life trail stations (along the adjacent trail) • Evergreen trees to provide screening between the 65th Avenue S bridge, Tukwila Parkway, and the park • Flowering trees • Restriping 27 parking spaces along the east side of Christensen Road • Striping four spaces at the north end of Christensen Road • New pavement and striping for the development of 14 new spaces along the west side of Christensen Road and four spaces at the north end. • Maintaining the parking area, landscaping, irrigation, and waste disposal for the public pocket park (Includes restriping spaces every three years). • Allowing public access to the hotel site as required for park access and egress • Planned access for emergency vehicles • The pocket park will be included within the open space requirements of the City Municipal Code and Christensen Road and the parking spaces will comply with all relevant codes as well as the American with Disabilities Act (ADA). 114 Presentation Overview • Review Process- Development Agreement - public hearing. • Background Information —Site and Project • Options for City Council Department of Community Development Public Hearing November 24, 2014 Development Agreement -City Code and State Law • TMC 18.86 allows the City to use development agreements • RCW 36.70b.170(1) authorizes execution of a development agreement • A public hearing is required. Department of Community Development Public Hearing November 24, 2014 Public Hearing —Development Agreement 90 Andover Park East Photos of the subject site Department of Community Development Public Hearing November 24, 2014 Department of Community Development Public Hearing November 24, 2014 Department of Community Development Public Hearing November 24, 2014 Conceptual Site Plan fore hotel W CC a 0 z TY UNE TUKWILA PARK NAT PATIO HOTEL 5 -STORY 59,!705Q. FT 92 UNMT5 =x 53 ONSITE PARKING SPACES a 49 OFi$ITE PARKING 511T FLAN HOLIDAY I N EXPRESS Department of Community Development Public Hearing November 24, 2014 Development Agreement -terms Shared use of parking and drive aisle area in the right-of- way of Christensen Road, — 18 new parking spaces and reconfigure the existing spaces -a total of 45 parking spaces. — 41 will be shared with 4 for non -hotel users. • In exchange for the shared parking the developer shall: — Develop a public pocket park — Maintain the park and the parking area — Provide public access through the subject property. — Construct a pedestrian connection Department of Community Development Public Hearing November 24, 2014 50 year term with an option to extend for 30 additional years. — Termination clause: — building permit -1 year; or if the construction completed within 3 years; or if the developer does not comply with maintenance obligations for the park and the parking areas — change of use occurs; — WSDOT widens I-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park; — Developer abandons the project; — New agreement if the hotel use is to continue after the expiration of the agreement. Department of Community Development Public Hearing November 24, 2014 Pocket Park: Conceptual Plan TUICWILA POCKET PARK SEPT. 2, 2014 10' Zq• SCALE. i•- icsr Committee's Recommendation: • Committee's Recommendation: An alternative that would allocate the funds specified in the development agreement for the pocket park to go toward a tree planting project in the area of the river bank across Christensen Road was recommended. • The Committee supported the alternative if it did not delay the agreement or add costs for the developer. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional analysis relating to the alternative proposal. The Committee of the Whole would then select the preferred option. Department of Community Development Public Hearing November 24, 2014 Potential Shoreline Restoration area DepartmentCommunity DeVetopnlen Public Hearing November 24, 2014 Further review of the Riverbank Planting alternative • Following projects are underway that might preclude the quick approval of a Green River planting plan adjacent to 90 Andover Park East along the river: — Green River System Wide Improvement Framework (SWIF) process will be ongoing through early 2015. — The Tukwila 205 Levee Certification effort will not be completed for at least one year. — The TUC Pedestrian/Bicycle Bridge final design may include habitat mitigation near the bend in the river to the south of 90 Andover Park East. The design for this project will be completed in 2015 and constructed by 2017 Department of Community Development Public Hearing November 24, 2014 Background on the Pocket Park • A system of pocket parks in the Tukwila Urban Center (TUC) is vital to meeting the recreation and social needs of the community because purchasing larger parcels in this area is cost prohibitive at this time. • In 2006, staff met with a developer who introduced the concept of using the Christensen Trail parking area as part of their development located between Christensen Road and Andover Park East. • The Christensen Road pocket park provides an area on the north end of the TUC where there currently is not a recreational opportunity for the community. Department of Community Development Public Hearing November 24, 2014 Options for the City Council to consider 1. Approve the development agreement as originally proposed to allow shared parking in the right-of-way in exchange for building and maintaining a pocket park. 2. Approve the development agreement for the alternative proposed by the Community Affairs and Parks Committee to allow shared parking in the right-of-way in exchange for getting a monetary payment for the Green/Duwamish riverbank planting project. 3. Approve the development agreement as originally proposed with an amendment to include $10,000 payment by the developer towards Green/Duwamish River restoration/planting projects or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. Department of Community Development Public Hearing November 24, 2014 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/24/14 MD Agreement for the proposed hotel at 90 Andover 12/01/14 MD Motion Date ❑ Resolution Mtg Date ►1 Ordinance ❑ Bid Award Mtg Date L Public Hearing ❑ Other Mtg Date Mtg Date Mtg Mtg Date 12/1/14 Mtg Date 11/24/14 ITEM INFORMATION ITEM No. 3.A. & 4.A. 1 STAFF SPONSOR: JACK PACE ORIGINAL AGENDA DATE: 11/24/14 AGENDA ITEM TITLE An Park Ordinance and East. Development Agreement for the proposed hotel at 90 Andover CATF,GORY ►1 Discussion 11/24/14 • Motion Date ❑ Resolution Mtg Date ►1 Ordinance ❑ Bid Award Mtg Date L Public Hearing ❑ Other Mtg Date Mtg Date Mtg Mtg Date 12/1/14 Mtg Date 11/24/14 SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ Finance ❑ Firs ❑ IT ❑ PSR ❑ Police 4 DCD • PW SPONSOR'S Approval of an Ordinance and Development Agreement for the proposed hotel SUMMARY development at 90 Andover Park East that would allow the shared use of parking in the right-of-way of Christensen Road in exchange for the construction of a public pocket park. The Council is being asked to hold a public hearing and consider the draft ordinance and the associated development agreement. REVIEWED BY ❑ COW Mtg. ❑ Utilities Cmte DA 1'h: 11/12/14 ►1 CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte Comm. ❑) Planning Comm. CHAIR: JOE DUFFIE ❑ Arts Comm. 1 Parks COMMI 1'1'EE RECOMMENDATIONS: SPONSOR/ADMIN. CoMMTTrEE Department of Community Development Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/24/14 MTG. DATE ATTACHMENTS 11/24/14 Informational Memorandum dated 11/04/14 Vicinity Map Ordinance in Draft Form Development Agreement with Exhibits 1, 2, 3 Map showing riverbank in the vicinity of the site Minutes from the Community Affairs and Parks Committee meeting of 11/12/14 12/1/14 1 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: November 18, 2014 (Revised after Community Affairs and Parks Committee meeting on November 12, 2014) SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the proposed Development Agreement for the proposed hotel development at 90 Andover Park East that would allow the shared use of parking in the right-of- way of Christensen Road in exchange for the construction of a public pocket park? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that only 53 parking spaces can be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of- way of Christensen Road in exchange for developing a public pocket park in the cul-de sac area of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. DISCUSSION The proposal reviewed by the Community Affairs and Parks Committee included: • Shared use of parking and drive aisle area in the right-of-way of Christensen Road, with 18 new parking spaces added by the developer within the undeveloped right-of-way area adjacent to the hotel site. The developer would also reconfigure the existing spaces to increase the number of parking spaces in the right-of-way. A total of 45 parking spaces would be available within the right-of-way; out of which 41 will be shared between the hotel use and members of the public with four spaces exclusively reserved for non -hotel users including those who want to access the Green River Trail. • In exchange for the shared parking the developer shall: a) Develop and maintain a public pocket park within the existing cul-de-sac area. b) Maintain the park and the parking area for the term of the agreement. c) Provide public access through the subject property to compensate for the cul-de-sac closure. d) Construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and the Green River Trail. 3 INFORMATIONAL MEMO Page 2 • Initial term of 50 years with an option to extend for 30 additional years. • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations for the park and the parking areas; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. This proposal furthers the following goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan: • The Southcenter Subarea Plan envisions that parking will be accommodated by a combination of off- and on -street parking spaces/lots and shared parking facilities within the Transit Oriented Development (TOD) Neighborhood. • The Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...." • The implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan includes, "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships". • Uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan. The pocket park and shared parking are considered mutually beneficial to the City and the developer for the following reasons: • There are currently only 27 parking spaces in the right of -way area and the proposal will provide 45 parking spaces. • Hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. • The pocket park will complement the Green River Trail. • The proposal facilitates higher intensity development that is envisioned by the Comprehensive Plan for this area. • The cost of construction and maintenance of the pocket park and the parking spaces will be paid for by the developer in exchange for the shared use of the parking. • Members of the public and emergency vehicles will have access through the hotel parking lot. 4 INFORMATIONAL MEMO Page 3 Alternative proposal discussed at the Community Affairs and Parks Committee: Committee's Recommendation: At the Community Affairs and Parks Committee an alternative that would allocate the funds specified in the development agreement for the pocket park to go toward a tree planting project in the area of the river bank across Christensen Road was discussed. This alternative was recommended by the Committee as it advances the goals of regional efforts to restore aquatic ecosystems and salmon habitat in the Green-Duwamish watershed. Under this proposal, the developer would provide the money and the City could assume responsibility for the project, either alone or in collaboration with a group already doing this kind of restoration work. The Committee supported the alternative if it did not delay the agreement or add costs for the developer. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional analysis relating to the alternative proposal. The Committee of the Whole would then select the preferred option. Staff has further reviewed the alternative proposed by the Committee with the City's Public Works and Parks Department and listed below is their response. A map showing the riverbank area in the general vicinity of the subject site is attached to this memo. The total area from south of 1-405 to the bend in the River is approximately 73,000 square feet. The project cost for any shoreline restoration project that includes site preparation and planting is approximately $2 per square foot. Review of the Committee's recommendation by Bob Giberson, Public Works Director: Following projects are underway that might preclude the quick approval of a Green River planting plan adjacent to 90 Andover Park East along the river: a) Green River System Wide Improvement Framework (SWIF) process will be ongoing through early 2015. It is a US Army Corp of Engineers planning process that is being completed by King County Flood Control District. It involves ongoing engagement with state/federal agencies, business community, environmental community, WRIA9 and other agencies. It will include a prioritized list of capital projects to achieve flood protection goals and vegetation management plans to address large trees and shrubs location with respect to levees. More information about SWIF is available online at http://www.kingcounty.gov/environment/w.lr/sections-programs/river- tl oodplain-section/capi tal -projects/green-river-system-wide-i m pravem ent- framework.aspx b) The Tukwila 205 Levee Certification effort will not be completed for at least one year. The biggest unknown to obtain FEMA levee accreditation approval is the scope of repairs and/or improvements. Any required repairs and/or improvements will jeopardize any recent plantings. c) The TUC Pedestrian/Bicycle Bridge final design may include habitat mitigation near the bend in the river to the south of 90 Andover Park East. The design for this project will be completed in 2015 and constructed by 2017 As an alternative option, it appears that there is sufficient contingency in the pocket park cost estimate to allow the developer to contribute $10,000 towards a planting plan for the riverbank. Once a planting plan is approved by the necessary agencies, the developer's funds can be used as a match to other available funds for a complete habitat enhancement planting effort in this vicinity. 5 INFORMATIONAL MEMO Page 4 Review of the Committee's recommendation by Rick Still, Parks and Recreation Director: Background on why the pocket park is a valid proposal: a) A system of pocket parks in the Tukwila Urban Center (TUC) is vital to meeting the recreation and social needs of the community because purchasing larger parcels in this area is cost prohibitive at this time. The few parks currently located in TUC are heavily used by patrons for spending time away from offices on breaks, gaining access to the trail system, meeting people to gather and socialize, for exercise at or to visit as a part of their exercise routine, for access while walking to the train, and to enjoy nature while in an urban setting. b) In 2006, staff met with a developer who introduced the concept of using the Christensen Trail parking area as part of their development located between Christensen Road and Andover Park East. Through discussions with this developer, staff hired a landscape architect to initiate a site study and prepare a conceptual design for a pocket park at the turnaround at the north end of Christensen Road. This conceptual design was utilized with several developers throughout the past seven years. c) The Christensen Road pocket park provides an area on the north end of the TUC where there currently is not a recreational opportunity for the community. The area is easily accessed from local businesses and residential areas near City Hall. Hotel development in this area increases the need for a park since many of the people staying in hotels will be using the trail to access Starfire Sports at Fort Dent Park. The park will help contribute to a more connected community and build a sense of community pride. Staff has looked at ways to accommodate tree planting along the Green River while maintaining construction of the pocket park. Staff believes that with value engineering of the pocket park the developer could reduce the construction cost to allow approximately $10,000 for tree plantings along the Green River Trail at Christensen Road. The Committee of the Whole has the following options: 1. Approve the development agreement as originally proposed to allow shared parking in the right-of-way in exchange for building and maintaining a pocket park. 2. Approve the development agreement for the alternative proposed by the Community Affairs and Parks Committee to allow shared parking in the right-of-way in exchange for getting a monetary payment for the Green/Duwamish riverbank planting project. 3. Approve the development agreement as originally proposed with an amendment to include $10,000 payment by the developer towards Green/Duwamish River restoration/planting projects or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. FINANCIAL IMPACT There is no financial impact to the City as all costs associated with the development and maintenance of the pocket park and additional parking shall be borne by the developer. The developer's cost estimate for the development of the pocket park and additional parking area is $186,037. Also, the annual maintenance costs are anticipated to be $6000 per year and subject to inflation over the term of the agreement. The land value of the right -of -area with the shared parking is $427,575 ($25 per square foot for 17,103 square feet total area). 6 INFORMATIONAL MEMO Page 5 RECOMMENDATION The Council is being asked to hold a public hearing on this item and select one of the options listed above. Staff recommends approving the development agreement as originally proposed with an amendment to include $10,000 payment by the developer for the Green/Duwamish River restoration/planting project or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. If the Council selects this option then Section 8 of the Development Agreement will be revised to include a clause stating the developer shall be responsible to make a payment of $10,000 for Green/Duwamish River restoration/planting projects or to implement the goals and policies of the City's Comprehensive Plan related to Urban Forestry. This payment shall be required prior to the issuance of the building permit for the hotel. Also, Exhibit 3 shall be amended to reflect this payment. Staff also recommends adding two items to the 2015 work plan: a) Review current policies regarding non-public uses in the public right-of-way. b) Review policies/projects for restoration/planting projects of the Green/Duwamish riverbank and how the city will implement the goals and policies of City's Comprehensive Plan relating to Urban Forestry. ATTACHMENTS Vicinity Map Draft Ordinance Development Agreement Exhibit 1- Legal Description Exhibit 2 -Conceptual Site Plan Exhibit 3 -Conceptual Site Plan of the Pocket Park; list of park amenities with construction cost estimates; and land value estimates. Map showing the riverbank in the vicinity of the subject site Minutes from Community Affairs and Parks Committee meeting Nov 12, 2014. 7 � • ll=� 9 R AFF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, APPROVING AND AUTHORIZING THE DEVELOPMENT AGREEMENT WITH TUKWILA TSD, LLC, FOR THE SHARED USE OF PARKING IN THE PUBLIC RIGHT-OF-WAY OF CHRISTENSEN ROAD AND THE DEVELOPMENT OF A PUBLIC POCKET PARK AT THE NORTH END OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST; 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, Tukwila TSD, LLC, desires to build a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, Tukwila TSD, LLC, proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, Tukwila TSD, LLC, also proposes to develop and maintain a pocket park within the cul-de-sac area of Christensen Road; and WHEREAS, the City of Tukwila and Tukwila TSD, LLC, wish to enter into a Development Agreement for the shared use of parking in the public right-of-way of Christensen Road and the development of a public pocket park at the north end of Christensen Road, as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A; and WHEREAS, as required pursuant to Tukwila Municipal Code Section 18.86.050, a public hearing was conducted on the 24th day of November 2014 to take public testimony regarding this Development Agreement, as proposed; and W: Word Processing\Ordinances\Public pocket park at 90 APE DA 11-3-14 MD:bjs Page 1 of 2 11 WHEREAS, the City Council finds that the terms of this Development Agreement are necessary to achieve public benefits, to respond to changing community needs and to encourage modifications that adequately achieve the purposes of otherwise applicable City standards; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Development Agreement. The Development Agreement by and between the City of Tukwila and Tukwila TSD, LLC, for the use of shared parking in the public right-of-way of Christensen Road and the development of a public pocket park at the north end of Christensen Road, as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A, is hereby approved, and the Mayor is authorized and directed to execute said 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 , 2014. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Rachel Turpin, City Attorney Ordinance Number: Exhibit A — Development Agreement W: Word Processing\Ordinances\Public pocket park at 90 APE DA 11-3-14 MD:bjs Page 2 of 2 12 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND TUKWILA TSD LLC, FOR THE SHARED USE OF PARKING IN THE RIGHT OF WAY OF CHRISTENSEN ROAD AND THE DEVELOPMENT OF A PUBLIC POCKET PARK AT THE NORTH END OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST I. PREAMBLE THIS DEVELOPMENT AGREEMENT is made and entered into this r- day of 2014, by and between the City of Tukwila, a noncharter, optional code Washington municipal corporation, hereinafter the "City," and Tukwila TSD LLC, a (corporation, limited partnership, partnership, etc.) organized under the laws of the State of Washington, hereinafter the "Developer." II. RECITALS WHEREAS, the Developer desires to develop a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, one parking space per guest room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District; and WHEREAS, the Developer has submitted a site plan showing the required number of parking stalls for the hotel cannot be accommodated as surface parking on the project site; and WHEREAS, the Developer proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Rd. to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, the City of Tukwila is the owner of the Christensen Rd. right-of-way, which includes undeveloped area adjacent to the project's eastern property line, paved street, parking, and cul-de-sac areas; and WHEREAS, the parking area in the right-of-way of Christensen Rd. is currently used by members of the public for access to the Green River Trail, shoreline, and parks areas; and WHEREAS, hotel parking spaces are expected to be used primarily in the evening and nighttime hours; parking spaces for trail, shoreline, and parks access are expected to be used during daylight hours; and WHEREAS, the Developer proposes to develop and maintain a public pocket park within the cul-de-sac area as outlined in Exhibit B in exchange for use of the other right-of-way areas on the east side of the project site for parking; and 1 13 WHEREAS, the Developer proposes to add parking spaces within the undeveloped right-of- way area adjacent to the hotel site and to reconfigure existing spaces to increase the number of parking spaces that would be shared for hotel use and the public for access to the Green River Trail; and WHEREAS, all parking spaces within the right-of-way area will be shared and at least four spaces will be designated for non -hotel users to ensure access to the Green River Trail for members of the public; and WHEREAS, the Developer proposes to maintain the parking area within the right-of-way as outlined in Exhibit B for the length of this agreement; and WHEREAS, the vision for parking areas within the Transit Oriented Development (TOD) Neighborhood in the Southcenter Subarea Plan is that "parking will be accommodated by a combination of off- and on -street parking spaces/lots" and shared parking facilities. "Such facilities can be shared between public and private uses" (p. 19); and WHEREAS, the Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...."; and WHEREAS, the Developer proposes to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and Green River Trail; and WHEREAS, implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan include "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships; and WHEREAS, a through -way from Andover Park East to Christensen Rd will be constructed as part of the project to replace the emergency vehicle maneuvering function of the cul-de-sac; and WHEREAS, the pocket park will be a City of Tukwila park that will provide mutual benefits to hotel guests and the public; and WHEREAS, uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan and the proposed development furthers this goal; and WHEREAS, the Washington State Legislature has authorized the execution of a development agreement between a local government and a person having ownership or control of real property within its jurisdiction (RCW 36.70B.170(1)); and 2 14 WHEREAS, a development agreement must set forth the development standards and other provisions that shall apply to, govern and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement (RCW 36.70B.170(1)); and WHEREAS, for the purposes of this development agreement, "development standards" includes, but is not limited to, all of the standards listed in RCW 36.70B.170(3); and WHEREAS, a development agreement must be consistent with the applicable development regulations adopted by a local government planning under chapter 36.70A RCW (RCW 36.70B.170(1)); and WHEREAS, TMC Section 18.86.030 explicitly allows for flexibility in development standards applicable to a property developed under a development agreement "to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards"; and WHEREAS, this Development Agreement by and between the City of Tukwila and the Developer (hereinafter the "Development Agreement"), relates to the development known as the 90 Andover Park East Hotel and Pocket Park, which is located at: 90 Andover Park East (hereinafter the "Subject Property"); and WHEREAS, a development agreement must be approved by ordinance or resolution after a public hearing (RCW 36.70B.200); and WHEREAS, a public hearing for this Development Agreement was held on , and the City council approved this Development Agreement by Ordinance on ; and NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows: III. AGREEMENT Section 1. The Project. The Project is the development and use of the Subject Property, consisting of 0.39 acres (approximately17,000 square feet) in the City of Tukwila located at 90 Andover Park East and a portion of Christensen Road right-of-way for a ninety-two (92) room five (5) story hotel, a Pocket Park, and forty-five (45) shared parking spaces on Christensen Road right- of-way, as shown on Exhibit B. Section 2. The Subject Property. The Subject Property and right-of-way are legally described in Exhibit A, attached hereto and incorporated herein by this reference. 3 15 Section 3. Definitions. As used in this Development Agreement, the following terms, phrases and words shall have the meanings and be interpreted as set forth in this Section. a) "Adopting Ordinance" means the Ordinance which approves this Development Agreement, as required by RCW 36.70B.200. b) "Council" means the duly elected legislative body governing the City of Tukwila. c) "Design Guidelines" means the Tukwila Design Manual, as adopted by the City. d) "Director" means the City's Community Development Director. e) "Effective Date" means the effective date of the Adopting Ordinance. f) "Existing Land Use Regulations" means the ordinances adopted by the City Council of Tukwila in effect on the Effective Date, including the adopting ordinances that govern the permitted uses of land, the density and intensity of use, and the design, improvement, construction standards and specifications applicable to the development of the Subject Property, including, but not limited to the Comprehensive Plan, the City's Official Zoning Map and development standards, the Design Manual, the Public Works Standards, SEPA, Concurrency Ordinance, and all other ordinances, codes, rules and regulations of the City establishing subdivision standards, park regulations, building standards. "Existing Land Use Regulation" does not include non -land use regulations, which includes taxes and impact fees. g) "Landowner" is the party who has acquired any portion of the Subject Property from the Developer who, unless otherwise released as provided in this Agreement, shall be subject to the applicable provisions of this Agreement. The "Developer" is identified in Section 5 of this Agreement. h) "Project" means the anticipated development of the Subject Property, as specified in Section 1 and as provided for in all associated permits/approvals, and all incorporated exhibits. i) "Vesting date" means the date a valid and fully complete building permit application for the hotel is submitted to the City of Tukwila. Section 4. Exhibits. Exhibits to this Agreement are as follows: a) Exhibit 1 - legal description of the Subject Property and the right-of-way. b) Exhibit 2 - Conceptual Site Plan c) Exhibit 3 - Conceptual Site Plan of the Pocket Park including a list of park amenities; construction and maintenance cost estimates for the Pocket Park and parking area; and land value estimate for the parking and drive -aisle area of Christensen Road right-of-way. 4 16 Section 5. Parties to Development Agreement. The parties to this Agreement are: a) The "City" is the City of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188. b) The "Developer" or Owner is a private enterprise which owns the Subject Property in fee, and whose principal office is located at 21109 66th Avenue South, Kent, WA 98032. c) The "Landowner." From time to time, as provided in this Agreement, the Developer may sell or otherwise lawfully dispose of a portion of the Subject Property to a Landowner who, unless otherwise released, shall be subject to the applicable provisions of this Agreement related to such portion of the Subject Property. Section 6. Proiect is a Private Undertaking. It is agreed among the parties that the Project is a private development and that the City has no interest therein except as explicitly outlined in this Agreement and as authorized in the exercise of its governmental functions. Section 7. Effective Date and Term. This Agreement shall commence upon the effective date of the Adopting Ordinance approving this Agreement, and shall continue in force for a period of 50 years, with the option to extend the Agreement an additional 30 years, unless extended or terminated as provided herein. Following the expiration of the term or extension thereof, or if sooner terminated, this Agreement shall have no force and effect, subject however, to post -termination obligations of the Developer or Landowner. Section 8. Terms. A. Design • The Project at 90 Andover Park East shall be allowed non-exclusive use rights for the parking spaces and drive aisle area of Christensen Rd (as depicted in Exhibit B) to meet minimum parking requirements for the development. This Agreement shall not preclude the City from entering into additional agreements regarding use of this area by other private parties. The Project will be subject to the development regulations in effect at the time of complete permit application submittals. • The site plan attached as Exhibit B is included with this Agreement for reference only, and has not yet been approved as of the date of execution of this Agreement. The site plan shall be subject to modifications during review of the required land use permits. • As a result of the cul-de-sac closure for use as the pocket park, public access through 90 Andover Park East is hereby allowed and provided for. • The Developer shall construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the proposed pocket park and the Green River Trail. 5 17 • All shared parking stalls will be constructed and maintained to Public Works Infrastructure Design and Construction Standards. • The detailed park design meeting the requirements for approval shall be approved by the Director of the City of Tukwila Parks and Recreation Department as part of the building permit approval process. The Conceptual Plan (Exhibit C) shall be revised to address the following items: a) Specific locations of the trash receptacles and the three outdoor exercise pieces shall be noted. b) A short pathway connecting the trails/walkways shall be included. c) Specifications and details of the monument wall and the outdoor exercise equipment shall be preapproved by the Parks Department. B. Construction • The cost of permits and plans required for construction of the park and parking area shall be borne by the Developer and submitted as part of the permits for the hotel. The pocket park must receive final approval by all required City departments prior to issuance of the Certificate of Occupancy for the hotel. • The Developer is responsible to provide any electrical service that may be necessary for the pocket park. C. Maintenance • The pocket park and the parking area shall be subject to inspections every five years. • Developer is solely responsible for the cost and maintenance of the pocket park and the parking spaces. New striping of the parking spaces shall be completed every three years. • A detailed maintenance plan for the pocket park must be submitted and preapproved by the Parks and Recreation Department before acceptance. D. Operations • A total of 92 parking spaces are required for the 92 -room hotel as proposed. The site plan in Exhibit B includes 98 parking spaces. All parking spaces within the right-of-way of Christensen Road shall be for the joint use of the hotel users and members of the public and at least four spaces shall be designated for non -hotel users to ensure access to the Green River Trail for members of the public. 6 18 Section 9. Vested Rights. During the term of this Agreement, unless sooner terminated in accordance with the terms hereof, in developing the Subject Property consistent with the Project described herein, Developer is assured, and the City agrees, that the development rights, obligations, terms and conditions specified in this Agreement, are fully vested in the Developer and may not be changed or modified by the City, except as may be expressly permitted by, and in accordance with, the terms and conditions of this Agreement, including the Exhibits hereto, or as expressly consented thereto by the Developer. Section 10. Minor Modifications. Minor modifications from the approved permits or the exhibits attached hereto may be approved in accordance with the provisions of the City's code, and shall not require an amendment to this Agreement. Section 11. Further Discretionary Actions. Developer acknowledges that the Existing Land Use Regulations contemplate the exercise of further discretionary powers by the City. These powers include, but are not limited to, review of additional permit applications under SEPA. Nothing in this Agreement shall be construed to limit the authority or the obligation of the City to hold legally required public hearings, or to limit the discretion of the City and any of its officers or officials in complying with or applying Existing Land Use Regulations. Section 12. Existing Land Use Fees and Impact Fees. A. Land use fees adopted by the City by ordinance as of the Effective Date of this Agreement may be increased by the City from time to time, and are applicable to permits and approvals for the Subject Property, as long as such fees apply to similar applications and projects in the City. B. All impact fees shall be paid as set forth in the approved permit or approval, or as addressed in Chapters 16.26 and 9.48 of the Tukwila Municipal Code. IV. GENERAL PROVISIONS Section 1. Assignment of Interests, Rights, and Obligations. This Agreement shall be binding and inure to the benefit of the Parties. No Party may assign its rights under this Agreement without the written consent of the other Party, which consent shall not unreasonably be withheld. This Agreement shall be binding upon and shall inure to the benefit of the heirs, successors, and assigns of the Developer and the City. Section 2. Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein. Section 3. Severabilitv. The provisions of this Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity of its application to other persons or circumstances. 7 19 Section 4. Termination. This Agreement shall expire and/or terminate as provided below: A. This Agreement shall expire and be of no further force and effect if the Developer fails to submit a complete building permit application for the construction of the hotel within one year, or if the Project construction is not completed within three years, of the effective date of this Agreement; or if at any time after Project construction is completed, Developer fails to maintain the Pocket Park and the parking areas according to the terms of this Agreement. Nothing in this Agreement shall extend the expiration date of any permit or approval issued by the City for any development. B. This Agreement shall expire and be of no further force and effect if the Developer does not construct the Project as contemplated by the permits and approvals identified in this Agreement, or submits applications for development of the Subject Property that are inconsistent with such permits and approvals. C. This Agreement shall terminate at such time as a change of use occurs at 90 Andover Park East, or at such time as 90 Andover Park East is redeveloped. D. This Agreement shall terminate in the event the Washington State Department of Transportation (WSDOT) widens Interstate 405 in vicinity of the Subject Property, or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park. E. This Agreement shall terminate upon the abandonment of the Project by the Developer. The Developer shall be deemed to have abandoned the Project if/when written notice is provided to the City that the Developer's interest in the Project has been terminated. Said notice shall be given to the City no more than thirty (30) days after the Developer's interest in the Project is terminated. F. This Agreement may terminate pursuant to Section IV.3, Severability, or Section IV.10, Default, or as otherwise outlined in this Agreement. G. If the use will continue upon expiration of the term of this Agreement, the Developer shall either negotiate a new agreement with the City or provide documentation showing how the number of parking spaces required by the codes at the time of expiration will be provided. 8 20 Section 5. Effect upon Termination on Developer Obligations. Termination of this Agreement as to the Developer of the Subject Property or any portion thereof shall not affect any of the Developer's obligations to comply with the City Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or subdivision map or other land use entitlements approved with respect to the Subject Property, any other conditions of any other development specified in the Agreement to continue after the termination of this Agreement or obligations to pay assessments, liens, fees or taxes. Section 6. Effects upon Termination on City. Upon any termination of this Agreement as to the Developer of the Subject Property, or any portion thereof, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the property affected by such termination (provided that vesting of such entitlements, conditions or fees may then be established for such property pursuant to then existing planning and zoning laws). Section 7. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default hereof. Section 8. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. Venue for any action shall lie in King County Superior Court or the U.S. District Court for Western Washington. Section 9. Attorneys' Fees. In the event of any litigation or dispute resolution process between the Parties regarding an alleged breach of this Agreement, neither Party shall be entitled to any award of attorneys' fees. Section 10. Notice of Default/Opportunity to Cure/Dispute Resolution. A. In the event a Party, acting in good faith, believes the other Party has violated the terms of this Agreement, the aggrieved Party shall give the alleged offending Party written notice of the alleged violation by sending a detailed written statement of the alleged breach. The alleged offending Party shall have thirty (30) days from receipt of written notice in which to cure the alleged breach unless the Parties agree, in writing, to additional time. This notice requirement is intended to facilitate a resolution by the Parties of any dispute prior to the initiation of litigation. Upon providing notice of an alleged breach, the Parties agree to meet and agree upon a process for attempting to resolve any dispute arising out of this Agreement. A lawsuit to enforce the terms of this Agreement shall not be filed until the latter of (a) the end of the cure period or (b) the conclusion of any dispute resolution process. B. After notice and expiration of the thirty (30) day period or other time period as agreed to by the Parties, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other party or Landowner to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. In addition, the City may decide to file an action to enforce the City's Codes, and to obtain penalties and costs as provided in the Tukwila Municipal Code for violations of this Development Agreement and the Code. 9 21 Section 11. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and is not intended to benefit any other person or entity, and no person or entity not a signatory to this Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No other person or entity not a Party to this Agreement may enforce the terms and provisions of this Agreement. Section 12. Integration. This Agreement and its exhibits represent the entire agreement of the parties with respect to the subject matter hereof. There are not other agreements, oral or written, except as expressly set forth herein. Section 13. Authority. The Parties each represent and warrant that they have full power and actual authority to enter into this Agreement and to carry out all actions required of them by this Agreement. All persons are executing this Agreement in their representative capacities and represent and warrant that they have full power and authority to bind their respective organizations. Section 14. Covenants Running with the Land. The conditions and covenants set forth in this Agreement and incorporated herein by the Exhibits shall run with the land and the benefits and burdens shall bind and inure to the benefit of the parties. The Developer, Landowner and every purchaser, assignee or transferee of an interest in the Subject Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Subject Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of a Developer contained in this Agreement, as such duties and obligations pertain to the portion of the Subject Property sold, assigned or transferred to it. Section 15. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be amended by mutual consent of all of the parties, provided that any such amendment shall follow the process established by law for the adoption of a development agreement (see, RCW 36.70B.200). However, nothing in this Agreement shall prevent the City Council from making any amendment to its Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations affecting the Subject Property as the City Council may deem necessary to the extent required by a serious threat to public health and safety. Nothing in this Development Agreement shall prevent the City Council from making any amendments of any type to the Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations relating to the Subject Property. Section 16. Releases. Developer, and any subsequent Landowner, may free itself from further obligations relating to the sold, assigned, or transferred property, provided that the buyer, assignee or transferee expressly assumes the obligations under this Agreement as provided herein. 10 22 Section 17. Notices. Notices, demands, correspondence to the City and Developer shall be sufficiently given if dispatched by pre -paid first-class mail to the addresses ofthe parties as designated in Section 5. Notice to the City shall be to the attention of both the Mayor's Office and the City Attorney. Notices to subsequent Landowners shall be required to be given by the City only for those Landowners who have given the City written notice of their address for such notice. The parties hereto may, from time to time, advise the other of new addresses for such notices, demands or correspondence. Section 18. Reimbursement for Agreement Expenses of the City. Developer agrees to reimburse the City for actual expenses incurred over and above fees paid by Developer as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees and reasonable staff and consultant costs not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section, as well as any processing fees owed to the City for the Project, are paid to the City. This Agreement shall be terminated if the Developer does not pay to the City the fees provided for in this section. Upon payment of all expenses, the Developer may request written acknowledgement of all fees. Such payment of all fees shall be paid, at the latest, within thirty (30) days from the City's presentation of a written statement of charges to the Developer Section 19. Police Power. Nothing in this Agreement shall be construed to diminish, restrict or limit the police powers of the City granted by the Washington State Constitution or by general law. Section 20. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party or a Landowner to challenge this Agreement or any provision herein, the City and Developer will collaborate to resolve such legal action. In the event such legal action cannot be resolved, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to Developer and/or Landowner(s). In such event, Developer and/or such Landowners shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to, attorneys' fees and expenses of litigation, and damages awarded to the prevailing party or parties in such litigation. Neither the City nor the Developer and/or Landowner shall settle any lawsuit without the consent of the other. The City and Developer/Landowner shall act in good faith and shall not unreasonably withhold consent to settle. Section 21. No Presumption Against Drafter. This Agreement has been reviewed and revised by legal counsel for both Parties and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreement. Section 22. Headings. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this Agreement. Section 23. Recording. Developer shall record an executed copy of this Agreement with the King County Auditor, pursuant to RCW 36:70B.190, no later than fourteen (14) days after the Effective Date. 11 23 Section 24. Legal Representation. In entering into this Agreement, Developer represents that it has been advised to seek legal advice and counsel from its attorney concerning the legal consequences of this Agreement; that it has carefully read the foregoing Agreement and knows the contents thereof, and signs the same of its own free act; and that it fully understands and voluntarily accepts the terms and conditions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the dates set forth below: OWNER/DEVELOPER: CITY OF TUKWILA By By Its Managing Member Tukwila TSD LLC 21109 66th Avenue South Kent, WA 98032 STATE OF WASHINGTON ) ) ss. COUNTY OF ) Its Mayor ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney On this day of , 2014, before me personally appeared , to me known to be the individual that executed the within and foregoing instrument, and acknowledged the said instrument to be his/her free and voluntary act and deed for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. 12 24 Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day of , 2014, before me personally appeared , and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged as the of the City of Tukwila to be the free and voluntary act of said party for the uses and purposes mentioned in this instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 13 25 EXHIBIT 1 NOVEMBER 18, 2014 PROJECT NO. 06007 EXHIBIT I -A LEGAL DESCRIPTION OF PROPERTY TRACT 4, ANDOVER INDUSTRIAL PARK NO. 1, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 66 OF PLATS, PAGE 36, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THE SOUTH 28 FEET THEREOF; AND EXCEPT THAT PORTION THEREOF CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NO. 592245, ACCORDING TO DECREE FILED JANUARY 14, 1963. 27 EXHIBIT 1-B LEGAL DESCRIPTION PARKING EASEMENT NOVEMBER 18, 2014 PROJECT NO. 06007 AN EASEMENT FOR VEHICULAR PARKING PURPOSES OVER, ACROSS AND UPON THE RIGHT-OF-WAY OF CHRISTENSEN ROAD, BEING LOCATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 23, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON. SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF ANDOVER PARK EAST WITH THE CENTERLINE OF TUKWILA PARKWAY AS MARKED BY A CONCRETE MONUMENT; THENCE NORTH 84°44'00" EAST ALONG THE CENTERLINE OF TUKWILA PARKWAY 231.72 FEET; THENCE SOUTH 05°16'00" EAST 40.00 FEET TO THE POINT OF INTERSECTION OF THE SOUTH MARGIN OF TUKWILA PARKWAY WITH THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE SOUTHERLY ALONG SAID WEST MARGIN ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 00°13'45", THE CENTER OF WHICH BEARS SOUTH 80°38'25" WEST, AN ARC DISTANCE OF 1.75 FEET TO THE TRUE POINT OF BEGINNING; THENCE EASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 35.00 FEET, A CENTRAL ANGLE OF 28°38'13" EAST, THE CENTER OF WHICH BEARS NORTH 23°22'13" EAST, AN ARC DISTANCE OF 17.49 FEET TO A POINT OF TANGENCY; THENCE NORTH 84°44'00" EAST 46.59 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; THENCE SOUTHERLY AND EASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 16.94 FEET, A CENTRAL ANGLE OF 73°30'10", THE CENTER OF WHICH BEARS NORTH 87°22'15" EAST, AN ARC DISTANCE OF 21.74 FEET TO A POINT OF REVERSE CURVATURE; THENCE EASTERLY AND SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 2.50 FEET, A CENTRAL ANGLE OF 72°45'37", THE CENTER OF WHICH BEARS SOUTH 13°52'05" WEST, AN ARC DISTANCE OF 3.17 FEET TO A POINT OF COMPOUND CURVATURE; THENCE SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 1547.72 FEET, A CENTRAL ANGLE OF 09°37'47, THE CENTER OF WHICH BEARS SOUTH 86°37'42" WEST, AN ARC DISTANCE OF 260.13 FEET; THENCE NORTH 84°06'43" WEST 43.00 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; PAGE 1 28 (PARKING EASEMENT CONTINUED) THENCE NORTHERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 1504.72 FEET, A CENTRAL ANGLE OF 01°05'52", THE CENTER OF WHICH BEARS NORTH 83°43'52" WEST, AN ARC DISTANCE OF 28.83 FEET TO A POINT OF COMPOUND CURVATURE; THENCE NORTHERLY AND WESTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 93°47'54, THE CENTER OF WHICH BEARS NORTH 84°49'45" WEST, AN ARC DISTANCE OF 40.93 FEET TO THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE NORTH 00°45'11" WEST ALONG SAID WEST MARGIN 152.13 FEET TO THE BEGINNING OF A TANGENT CURVE TO THE LEFT; THENCE CONTINUING NORTH ALONG SAID WEST MARGIN ON A CURVE TO THE LEFT, HAVING A RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 08°22'39", THE CENTER OF WHICH BEARS SOUTH 89°14'49" WEST, AN ARC DISTANCE OF 63.97 FEET TO THE TRUE POINT OF BEGINNING. SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. PAGE 2 29 30' 1- N w 3 Y o a CC O z 0 Z a> O iV O 0 z 30' EXHIBIT 1-C VEHICULAR PARKING EASEMENT AREA 267.49 231.72' TUKWILA PARKWAY o'_ oo N 84'44'00" E N 84'44'001S___ 0 R=50.00' A=84'56'09" L=74.12' 159.38' T.L. 90. 022300-0040-03 o N 1' 50' NOV. 2014 PROJECT NO. 06007 211.59' N 89'47'51" E m R=437.50' Q=08'36'24" L=65.72' 40' O/ PAGE 1 OF 2 1/ 40' 11M HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CUNTON, WA 98236 425.822.7271 30 EXHIBIT 1-C -- CONT'O. VEHICULAR PARKING EASEMENT AREA 231.72' ---� ---\ 1 Irn rn C1 C2_. L1, \ TPOB 0 co CURVE TABLE CURVE DELTA LENGTH RADIUS RADIAL BEARING C1 013'45" 1.75' 437.50' S 80'38'25" W C2 28'38'13" 17.49' 35.00' N 23'2213" E C3 73'30'10" 21.74' 16.94' N 8772'15" E C4 72'45'37" 3.17' 2.50' S 13'52'05" W C5 9'37'47" 260.13' 1547.72' S 86'37'42" W C6 1'05'52" 28.83' 1504.72' N 83'43'52" W C7 93'47'54" 40.93' 25.00' N 84'49'45" W C8 8'22'39" 63.97' 4.37.50' S 8914'49" W LINE TABLE NUM BEARING DISTANCE 11 N 84'44'00" E 46.59' L2 N 84'06'43" W 43.00' L3 N 00'4511" W 152.13' 1" = 50' NOV. 2014 PROJECT NO. 06007 r w 1,1,71,,,,. PAGE 2 OF 2 u) U 11M HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD - CLINTON, WA 98236 425.822.7271 31 - EXHIBIT 1-D LEGAL DESCRIPTION POCKET PARK EASEMENT NOVEMBER 18, 2014 PROJECT NO. 06007 AN EASEMENT FOR POCKET PARK PURPOSES OVER, ACROSS AND UPON THE RIGHTS-OF-WAY OF TUKWILA PARKWAY AND CHRISTENSEN ROAD, BEING LOCATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 23, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON. SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF ANDOVER PARK EAST WITH THE CENTERLINE OF TUKWILA PARKWAY AS MARKED BY A CONCRETE MONUMENT; THENCE NORTH 84°44'00" EAST ALONG THE CENTERLINE OF TUKWILA PARKWAY 220.02 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTHERLY AND EASTERLY ALONG A NON -TANGENT CURVE TO THE RIGHT, HAVING A RADIUS OF 31.28 FEET, A CENTRAL ANGLE OF 150°25'43", THE CENTER OF WHICH BEARS SOUTH 78°05'28" EAST, AND ARC DISTANCE OF 82.13 FEET; THENCE SOUTH 72°17'22" WEST 1.33 FEET TO THE BEGINNING OF A NON - TANGENT CURVE TO THE RIGHT; THENCE SOUTHERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 29.95 FEET, A CENTRAL ANGLE OF 30°02'29", THE CENTER OF WHICH BEARS SOUTH 72°20'22" WEST, AN ARC DISTANCE OF 15.70 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; THENCE EASTERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 23.34 FEET, A CENTRAL ANGLE OF 45°26'42", THE CENTER OF WHICH BEARS SOUTH 03°19'48" EAST, AN ARC DISTANCE OF 18.51 FEET; THENCE SOUTH 04°19'51" EAST 15.19 FEET; THENCE SOUTH 84°44'00" WEST 40.26 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; THENCE NORTHERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 23.34 FEET, A CENTRAL ANGLE OF 05°24'04", THE CENTER OF WHICH BEARS NORTH 86°14'34" EAST, AN ARC DISTANCE OF 2.20 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; THENCE WESTERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 29.95 FEET, A CENTRAL ANGLE OF 30°34'57", THE CENTER OF WHICH BEARS NORTH 14°04'01" WEST, AN ARC DISTANCE OF 15.99 FEET; THENCE SOUTH 16°30'56" WEST 1.33 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; PAGE 1 32 (POCKET PARK EASEMENT CONTINUED) THENCE WESTERLY AND NORTHERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 31.28 FEET, A CENTRAL ANGLE OF 85°23'35", THE CENTER OF WHICH BEARS NORTH 16°30'56" EAST, AN ARC DISTANCE OF 46.62 FEET TO THE TRUE POINT OF BEGINNING. SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. PAGE 2 //Of 33 30' ANDOVER PARK EAST rn 0 tV r 0 0 Z 30' N 84'44'00"_ E N 0012'09" W 0 EXHIBIT 1-E POCKET PARK EASEMENT AREA 267.49'---- TUKWILA PARKWAY N 84'44'00" E 159.38' R=437.50' R=50.00' A=0816'24" A=84'56'09" L=65.72' L=74.12' 40' 0 Q T.L. NO, 022300-0040-030 3 CV a M r n t) N Z V) 0 Li0 Q` Z S 0 211.59' 1"=50' NOV. 2014 PROJECT NO. 06007 N 89'47'51" E PAGE 1 OF 2 40' TIMI HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CUNTON, WA 98236 425.822.7271 34 EXHIBIT 1-E - CONVD. POCKET PARK EASEMENT AREA / \ TPOB1 / \ \ / _ , *\� 220.02' I n\ \ ! \ \ \ ; 1N a C5 0 \ i 1"=20' NOV. 2014 PROJECT NO. 06007 CURVE TABLE CURVE DELTA LENGTH RADIUS RADIAL BEARING C1 150'25'43" 82.13' 31.28' S 78'05'28" E C2 30'02'29" 15.70' 29.95' S 7270'22" W C3 45'26'42" 18.51' 23.34' S 0319'48" E C4 05'24'04" 2.20' 23.34' N 8614'34" E C5 30'34'57" 15.99' 29.95' N 14'04'01" W C6 85'23'35" 46.62' 31.28' N 16'30'56" E PAGE 2 OF 2 LINE TABLE NUM BEARING DISTANCE L1 S 7217'22" W 1.33' L2 S 0419'51" £ 15.19' L3 S 84'44'00" W 40.26' L4 S 16'30'56" W 1.33' TIM HANSON AND ASSOCIATES 8255 CIULTUS BAY ROAD CLINTQ'1, WA 98236 425.822.7271 35 1- W C 1 0 z TY LINE TUKWILA PARKWAY LS W OF SI V\ AR IN7 S'AC EXHIBIT 2 PATIO HOTEL 5 -STORY 59, 170 5Q. FT 92 UNITS ........................................................ ......................................................... ........................................................ ......................................................... IgtL V./ .7( 53 ONSITE PARKING SPACES 45 a OFMITE PAR NG N ICICICICICICIANDSCAPINGC SITE PLAN = 50-0• I '1 'I cic1c1c1c1c1c1 C SPACES FROM 24 SPACES TO 27 RE -STRIPE EXISTING FOR INCREASED PARKIN HOLIDAY 1 N EXPRESS TULWILA,A TUKWILA f D L.L.C. Dale SWeeney ARCHITECT 10/31/14 5715 143rd Place S.E. Bellew% WA 88008 425-280-8969 37 EXHIBIT 3 PROPOSED POCKET PARK — CHRISTENSEN ROAD Development of the park and parking area will include the installation of: • New graded area for the park • A circular seating wall • Bike rack • Picnic tables • Waste receptacle • Pathways • Three life trail stations (along the adjacent trail) • Evergreen trees to provide screening between the 65th Avenue S bridge, Tukwila Parkway, and the park • Flowering trees • Restriping 27 parking spaces along the east side of Christensen Road • Striping four spaces at the north end of Christensen Road • New pavement and striping for the development of 14 new spaces along the west side of Christensen Road and four spaces at the north end. • Maintaining the parking area, landscaping, irrigation, and waste disposal for the public pocket park (Includes restriping spaces every three years). • Allowing public access to the hotel site as required for park access and egress • Planned access for emergency vehicles • The pocket park will be included within the open space requirements of the City Municipal Code and Christensen Road and the parking spaces will comply with all relevant codes as well as the American with Disabilities Act (ADA). 39 PICNIC TABLE CIRCULAR SEATING AREA TUKWILA POCKET PARK JEFFREY B. GLANDER & ASSOCIATES, PLLC 1-9907999.7 Arehia ue & Site Plumbs 1621 401 Avow East Olympia, WA 96506 (360) 337-6972 Schematic Cost Estimate ITEM PROPOSED TUKWILA POCKET PARK & PARKING - COST SUMMARY Date: September 4, 2014 QTY. COST TOTAL REMARKS New Concrete Paving Area New Asphalt Paving Area Landscape Area Hardscape Improvements Demolition ($/c.y.) Concrete Walks & Paving ($/s.f) Asphalt Paving ($/s.f.) Seatwall ($/f.s.f.) Picnic Tables (S/ea.) Bike Rack ($/f.s.f.) Trash Receptacles Life Stations ($/fs.f.) Subtotal Landscape Improvements 3,400 700 9,875 2,706 $1.95 3,400 $6.50 700 $3.00 165 $200 3 $2,200 1 $650 1 $750 3 $3,500 $5,277 Sawcut & demo. Existing roadway & curbing 22,100 4" rein. Conc. w/scoring and broom finish 2,100 33,000 18" height, c.i.p.concrete wall & raised planter 6,600 6' length 650 750 10,500 Bed Prep. & Fine Grading Soil Prep Evergreen Trees Deciduous Trees Lawn, Plantings, and Irrigation Subtotal 9,875 $0.10 89 $35.00 7 $250.00 6 $400.00 9,875 $4.00 $80,977 $988 All lawn & planting areas 3,111 3" depth - all lawn & planting areas 1,750 6' Min. Ht. 2,400 2" Cal, 12' Min. Ht. 39,500 Contingency 10% Note: Estimate does not include grading, drainage, or parking Civil Engineering & New Parking Spaces - Right -of -Way Landscape & Architectural Fees Annual Maintenance Total $47,748. $12,872 $25,000 $13,440 $6,000 (Annual fee subject to inflation over term of agreement) $186,037 Sources: Jeffrey B. Glander & Associates (Landscape Architecture & Site Planning) Civil Engineer Tri -States Development. LLC. Dale Sweeney, Architect 43 Land Value estimate for parking and drive aisle area of Christensen Road Approximate land area including right-of-way (s.f.) 17,103 Developer's contracted land cost per square foot $25.00 Land acquisition cost (If 100% use) $427,575 Proposed pocket park & parking cost estimate $186,037 Pocket park & parking as percentage of total cost 43.5% * Ongoing maintenance and striping costs after initial year go on indefinitely 44 Potential Shoreline Restoration Area Shoreline restoration area 73,800 square feet (1.69 acres) 4 -t,1141 Community Affairs & Parks Committee Minutes November 12, 2014 - Page 2 C. Ordinance: Development Agreement for Proposed Hotel at 90 Andover Park East Staff is seeking Council approval of an ordinance to approve a development agreement with Tukwila TSD, LLC for the use of parking in a public right-of-way in exchange for the construction of a public pocket park. Tukwila TSD LLC proposes to build a new five -story hotel at 90 Andover Park East with approximately 90 guest rooms. A site plan demonstrates that the 90 required parking stalls cannot be accommodated, so the developer proposes a shared parking and drive aisle area in the right-of-way of Christenson Road in exchange for developing a public pocket park in the cul-de-sac area nearby. The proposed pocket park will be built and maintained by the developer who will also provide public access through the property and construct a pedestrian connection to the park and the trail. The initial term of the agreement is for 50 years with an option to extend for an additional 30. The agreement includes several termination clauses that protect the City in the event of failure to obtain permits or complete construction, failure to maintain the park and/or parking areas, property redevelopment or use change, and WSDOT actions to widen 1-405. Councilmember Robertson noted that the proposed pocket park is in an isolated area that is already close to an existing natural amenity - the river and trail. He proposed an alternative that would allocate the funds specified in the development agreement for the pocket park to go toward a tree planting project in the area of the river bank across Christensen Road. Tables and benches could be added as well. Planting trees is a key component of regional efforts to restore aquatic ecosystems and salmon habitat in the Green-Duwamish watershed. In this proposal, the developer would provide the money and the City could assume responsibility for the project, either alone or in concert with a group already doing this kind of restoration work. Committee members and staff discussed the original and the alternative proposals. The Committee agreed they do not want to delay the agreement or add costs for the developer. They support the alternative if those conditions are met, and if they are not, they will support the original pocket park. Staff suggested that if there is majority Council direction, then staff could further review the alternative proposed by Councilmember Robertson to include Public Works and Parks. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional analysis relating to the alternative proposal. The Committee of the Whole will select the preferred option. FORWARD TO NOVEMBER 24, 2014 COMMITTEE OF THE WHOLE WITH ADDITIONAL OPTION AS DISCUSSED. D. Ordinance: Multi -family Property Tax Exemption in Tukwila Urban Center. Staff is seeking Council approval of an ordinance to designate a portion of Tukwila's Transit Oriented Development (TOD) District as a "residential targeted area" and approve a multi -family property tax exemption program to incentivize new housing in that area. The proposed area is that portion of the TOD District that lies west of the Green River, comprising 42 parcels and three property tax levy code areas. Qualifying projects would be exempt from ad valorem property taxes for eight years, or for twelve is specific affordable housing criteria are also met. Staff is proposing a sunset clause under which applications will only be accepted through the end of 2016. To address concerns about condominium owners renting out their units the proposed ordinance includes criteria that the exemption can only be used on units used for permanent residential occupancy. 47 Tukwila City Council Agenda o ❖COMMITTEE OF THE WHOLE •❖ 4_'"'"en V %° �19oa Jim Haggerton, Mayor Councilmembers: ❖ Joe Duffle ❖ Dennis Robertson David Cline, City Administrator ❖ Allan Ekberg ❖ Verna Seal De'Sean Quinn, Council President ❖ Kathy Hougardy ❖ Kate Kruller Monday, November 24, 2014, 7:00 PM Tukwila City Hall Council Chambers 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. CITIZEN COMMENT At this time, you are invited to comment on items nit included on this agenda (please limit your comments to five minutes per citizen). To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. 3. PUBLIC HEARINGS a. An ordinance authorizing the 90 Andover Park hotel development. b. An ordinance establishing a multi -family property tax exemption. Pg.1 Pg.49 4. SPECIAL ISSUES i a. An ordinance authorizing the 90 Andover Park hotel development. b. An ordinance establishing a multi -family property tax exemption (Washington Place development). c. A resolution endorsing the Teens for Tukwila charter. . Authorize the Mayor to sign a contract with PBS Engineering + Environmental for Phase 1 of the Motel Demolition Project. e. A resolution establishing the 2015 non -represented employees' wage and benefit schedule. f. A collective bargaining agreement with the United Steelworkers (USW) Police Commanders for 2014-2016. g. An ordinance relating to tow truck licensing. h. An update on the BNSF Intermodal Facility Access Project. i. An ordinance extending the sunset provision on the interfund utility tax. .. Ordinances authorizing the issuance of bonds for the purpose of financing the TIB (Tukwila International Boulevard) Redevelopment Project. Pg.1 Pg.49 Pg.101 P9111 Pg.141 Pg.157 Pg.161 Pg.173 Pg.189 P9.197 5. REPORTS a. Mayor b. City Council c. Staff d. City Attorney e. Intergovernmental 6. MISCELLANEOUS 7. EXECUTIVE SESSION 8. ADJOURNMENT Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice to the City Clerk's Office (206-433-1800 or TukwilaCityClerk@TukwilaWA.gov). This notice is available at www.tukwilawa.gov, and in altemate formats with advance notice for those with disabilities. Tukwila Council meetings are audio/video taped. HOW TO TESTIFY If you would like to address the Council, please go to the podium and state your name and address clearly for the record. Please observe the basic rules of courtesy when speaking and limit your comments to five minutes. The Council appreciates hearing from citizens but may not be able to take immediate action on comments received until they are referred to a Committee or discussed under New Business. COUNCIL MEETINGS No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given. Regular Meetings - The Mayor, elected by the people to a four-year term, presides at all Regular Council Meetings held on the 1st and 3rd Mondays of each month at 7:00 p.m. Official Council action in the form of formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular Council meetings. Committee of the Whole Meetings - Council members are elected for a four-year term. The Council President is elected by the Council members to preside at all Committee of the Whole meetings for a one-year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m. Issues discussed are forwarded to the Regular Council meeting for official action. GENERAL INFORMATION At each Council meeting citizens are given the opportunity to address the Council on items that are not included on the agenda during CITIZENS COMMENTS. Please limit your comments to 5 minutes. Special Meetings may be called at any time with proper public notice. Procedures followed are the same as those used in Regular Council meetings. Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel matters. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the Tukwila Municipal Code states the following guidelines for Public Hearings: 1. The proponent shall speak first and is allowed 15 minutes for a presentation. 2. The opponent is then allowed 15 minutes to make a presentation. 3. Each side is then allowed 5 minutes for rebuttal. 4. Citizens who wish to address the Council may speak for 5 minutes each. No one may speak a second time until everyone wishing to speak has spoken. 5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the question, but may not engage in further debate at this time. 6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss the issue among themselves, or defer the discussion to a future Council meeting, without further public testimony. Council action may only be taken during Regular or Special Meetings. COUNCIL AGENDA SYNOPSIS Initialr Meeting Date Prepared by Mayor's review Council review 11/24/14 MD `'%YID - 12/01/14 MD ❑ Resolution Mtg Date 0 Ordinance ❑ Bid Award Mtg Date /ZI Public Hearing ❑ Other Mtg Date Mtg Date Mtg Date 12/1/14 tYttg Date 11/24/14 SPONSOR ❑ Council ❑ Mayor ❑ FIR 0 DCD ❑ Finance ❑ .Fire ❑ IT ■' P&'R ❑ Police ❑ PW SPONSOR'S Approval of an Ordinance and Development Agreement for the proposed hotel SUMMARY development at 90 Andover Park East that would allow the shared use of parking in the right-of-way of Christensen Road in exchange for the construction of a public pocket park. The Council is being asked to hold a public hearing and consider the draft ordinance and the associated development agreement. ITEM INFORMATION ITEM NO. 3.A. & 4.A. 1 STAFF SPONSOR: JACK PACE ORIGINAL. AGENDA DATE: 11/24/14 AGENDA ITEM TITLE An Ordinance and Development Agreement Park East. for the proposed hotel at 90 Andover CATEGORY Discussion 11/24/14 ❑ Motion Mtg Dale ❑ Resolution Mtg Date 0 Ordinance ❑ Bid Award Mtg Date /ZI Public Hearing ❑ Other Mtg Date Mtg Date Mtg Date 12/1/14 tYttg Date 11/24/14 SPONSOR ❑ Council ❑ Mayor ❑ FIR 0 DCD ❑ Finance ❑ .Fire ❑ IT ■' P&'R ❑ Police ❑ PW SPONSOR'S Approval of an Ordinance and Development Agreement for the proposed hotel SUMMARY development at 90 Andover Park East that would allow the shared use of parking in the right-of-way of Christensen Road in exchange for the construction of a public pocket park. The Council is being asked to hold a public hearing and consider the draft ordinance and the associated development agreement. REVIEWED BY 0 COW Mtg. ❑ Utilities Cmte DA 1'I ;: 11/12/14 11 CA&P Cmte ❑ F&S Cmte ❑ Parks Comm. CHAIR: 30E ■I Transportation Cmte ❑ Arts Comm. • Planning Comm. DUFFIE COMMI II EE RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Department of Community Development Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/24/14 MTG. DATE ATTACHMENTS 11/24/14 Informational Memorandum dated 11/04/14 Vicinity Map Ordinance in Draft Form Development Agreement with Exhibits 1, 2, 3 Map showing riverbank in the vicinity of the site Minutes from the Community Affairs and Parks Committee meeting of 11/12/14 12/1/14 1 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: November 18, 2014 (Revised after Community Affairs and Parks Committee meeting on November 12, 2014) SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the proposed Development Agreement for the proposed hotel development at 90 Andover Park East that would allow the shared use of parking in the right-of- way of Christensen Road in exchange for the construction of a public pocket park? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that only 53 parking spaces can be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of- way of Christensen Road in exchange for developing a public pocket park in the cul-de sac area of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. DISCUSSION The proposal reviewed by the Community Affairs and Parks Committee included: • Shared use of parking and drive aisle area in the right-of-way of Christensen Road, with 18 new parking spaces added by the developer within the undeveloped right-of-way area adjacent to the hotel site. The developer would also reconfigure the existing spaces to increase the number of parking spaces in the right-of-way. A total of 45 parking spaces would be available within the right-of-way; out of which 41 will be shared between the hotel use and members of the public with four spaces exclusively reserved for non -hotel users including those who want to access the Green River Trail. • In exchange for the shared parking the developer shall: a) Develop and maintain a public pocket park within the existing cul-de-sac area. b) Maintain the park and the parking area for the term of the agreement. c) Provide public access through the subject property to compensate for the cul-de-sac closure. d) Construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and the Green River Trail. 3 INFORMATIONAL MEMO Page 2 • Initial term of 50 years with an option to extend for 30 additional years. • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations for the park and the parking areas; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. This proposal furthers the following goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan: • The Southcenter Subarea Plan envisions that parking will be accommodated by a combination of off- and on -street parking spaces/lots and shared parking facilities within the Transit Oriented Development (TOD) Neighborhood. • The Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...." • The implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan includes, "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships". • Uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan. The pocket park and shared parking are considered mutually beneficial to the City and the developer for the following reasons: • There are currently only 27 parking spaces in the right of -way area and the proposal will provide 45 parking spaces. • Hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. • The pocket park will complement the Green River Trail. • The proposal facilitates higher intensity development that is envisioned by the Comprehensive Plan for this area. • The cost of construction and maintenance of the pocket park and the parking spaces will be paid for by the developer in exchange for the shared use of the parking. • Members of the public and emergency vehicles will have access through the hotel parking lot. 4 INFORMATIONAL MEMO Page 3 Alternative proposal discussed at the Community Affairs and Parks Committee: Committee's Recommendation: At the Community Affairs and Parks Committee an altemative that would allocate the funds specified in the development agreement for the pocket park to go toward a tree planting project in the area of the river bank across Christensen Road was discussed. This alternative was recommended by the Committee as it advances the goals of regional efforts to restore aquatic ecosystems and salmon habitat in the Green-Duwamish watershed. Under this proposal, the developer would provide the money and the City could assume responsibility for the project, either alone or in collaboration with a group already doing this kind of restoration work. The Committee supported the alternative if it did not delay the agreement or add costs for the developer. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional analysis relating to the alternative proposal. The Committee of the Whole would then select the preferred option. Staff has further reviewed the alternative proposed by the Committee with the City's Public Works and Parks Department and listed below is their response. A map showing the riverbank area in the general vicinity of the subject site is attached to this memo. The total area from south of 1-405 to the bend in the River is approximately 73,000 square feet. The project cost for any shoreline restoration project that includes site preparation and planting is approximately $2 per square foot. Review of the Committee's recommendation by Bob Giberson, Public Works Director: Following projects are underway that might preclude the quick approval of a Green River planting plan adjacent to 90 Andover Park East along the river: a) Green River System Wide Improvement Framework (SWIF) process will be ongoing through early 2015. It is a US Army Corp of Engineers planning process that is being completed by King County Flood Control District. It involves ongoing engagement with state/federal agencies, business community, environmental community, WRIA9 and other agencies. It will include a prioritized list of capital projects to achieve flood protection goals and vegetation management plans to address large trees and shrubs location with respect to levees. More information about SWIF is available online at http://w-ww.kingcounty.gov/environment/wlr/sections-programs/river- fl oodplain-section/capital-projects/green-river-system-wide-improvement- framework.aspx b) The Tukwila 205 Levee Certification effort will not be completed for at least one year. The biggest unknown to obtain FEMA levee accreditation approval is the scope of repairs and/or improvements. Any required repairs and/or improvements will jeopardize any recent plantings. c) The TUC Pedestrian/Bicycle Bridge final design may include habitat mitigation near the bend in the river to the south of 90 Andover Park East. The design for this project will be completed in 2015 and constructed by 2017 As an alternative option, it appears that there is sufficient contingency in the pocket park cost estimate to allow the developer to contribute $10,000 towards a planting plan for the riverbank. Once a planting plan is approved by the necessary agencies, the developer's funds can be used as a match to other available funds for a complete habitat enhancement planting effort in this vicinity. 5 INFORMATIONAL MEMO Page 4 Review of the Committee's recommendation by Rick Still, Parks and Recreation Director: Background on why the pocket park is a valid proposal: a) A system of pocket parks in the Tukwila Urban Center (TUC) is vital to meeting the recreation and social needs of the community because purchasing larger parcels in this area is cost prohibitive at this time. The few parks currently located in TUC are heavily used by patrons for spending time away from offices on breaks, gaining access to the trail system, meeting people to gather and socialize, for exercise at or to visit as a part of their exercise routine, for access while walking to the train, and to enjoy nature while in an urban setting. b) In 2006, staff met with a developer who introduced the concept of using the Christensen Trail parking area as part of their development located between Christensen Road and Andover Park East. Through discussions with this developer, staff hired a landscape architect to initiate a site study and prepare a conceptual design for a pocket park at the turnaround at the north end of Christensen Road. This conceptual design was utilized with several developers throughout the past seven years. c) The Christensen Road pocket park provides an area on the north end of the TUC where there currently is not a recreational opportunity for the community. The area is easily accessed from local businesses and residential areas near City Hall. Hotel development in this area increases the need for a park since many of the people staying in hotels will be using the trail to access Starfire Sports at Fort Dent Park. The park will help contribute to a more connected community and build a sense of community pride. Staff has looked at ways to accommodate tree planting along the Green River while maintaining construction of the pocket park. Staff believes that with value engineering of the pocket park the developer could reduce the construction cost to allow approximately $10,000 for tree plantings along the Green River Trail at Christensen Road. The Committee of the Whole has the following options: 1. Approve the development agreement as originally proposed to allow shared parking in the right-of-way in exchange for building and maintaining a pocket park. 2. Approve the development agreement for the altemative proposed by the Community Affairs and Parks Committee to allow shared parking in the right-of-way in exchange for getting a monetary payment for the Green/Duwamish riverbank planting project. CtL(4 Lnri Ott mit-' 3. Approve the development agreement as originally proposed with an amendment to include $10,000 payment by the developer towards Green/Duwamish River restoration/planting projects or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. k FINANCIAL IMPACT There is no financial impact to the City as all costs associated with the development and maintenance of the pocket park and additional parking shall be borne by the developer. The developer's cost estimate for the development of the pocket park and additional parking area is $186,037. Also, the annual maintenance costs are anticipated to be $6000 per year and subject to inflation over the term of the agreement. The land value of the right -of -area with the shared parking is $427,575 ($25 per square foot for 17,103 square feet total area). 6 INFORMATIONAL MEMO Page 5 RECOMMENDATION The Council is being asked to hold a public hearing on this item and select one of the options listed above. Staff recommends approving the development agreement as originally proposed with an amendment to include $10,000 payment by the developer for the Green/Duwamish River restoration/planting project or to implement the goals and policies of the Comprehensive Plan related to Urban Forestry. If the Council selects this option then Section 8 of the Development Agreement will be revised to include a clause stating the developer shall be responsible to make a payment of $10,000 for Green/Duwamish River restoration/planting projects or to implement the goals and policies of the City's Comprehensive Plan related to Urban Forestry. This payment shall be required prior to the issuance of the building permit for the hotel. Also, Exhibit 3 shall be amended to reflect this payment. Staff also recommends adding two items to the 2015 work plan: a) Review current policies regarding non-public uses in the public right-of-way. b) Review policies/projects for restoration/planting projects of the Green/Duwamish riverbank and how the city will implement the goals and policies of City's Comprehensive Plan relating to Urban Forestry. ATTACHMENTS Vicinity Map Draft Ordinance Development Agreement Exhibit 1- Legal Description Exhibit 2 -Conceptual Site Plan Exhibit 3 -Conceptual Site Plan of the Pocket Park; list of park amenities with construction cost estimates; and land value estimates. Map showing the riverbank in the vicinity of the subject site Minutes from Community Affairs and Parks Committee meeting Nov 12, 2014. 7 NNIM ►1_� VOb 3SFTh.51211 uasca;Stir* 9 DR FF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, APPROVING AND AUTHORIZING THE DEVELOPMENT AGREEMENT WITH TUKWILA TSD, LLC, FOR THE SHARED USE OF PARKING IN THE PUBLIC RIGHT-OF-WAY OF CHRISTENSEN ROAD AND THE DEVELOPMENT OF A PUBLIC POCKET PARK AT THE NORTH END OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST; 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, Tukwila TSD, LLC, desires to build a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, Tukwila TSD, LLC, proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, Tukwila TSD, LLC, also proposes to develop and maintain a pocket park within the cul-de-sac area of Christensen Road; and WHEREAS, the City of Tukwila and Tukwila TSD, LLC, wish to enter into a Development Agreement for the shared use of parking in the public right-of-way of Christensen Road and the development of a public pocket park at the north end of Christensen Road, as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A; and WHEREAS, as required pursuant to Tukwila Municipal Code Section 18.86.050, a public hearing was conducted on the 24th day of November 2014 to take public testimony regarding this Development Agreement, as proposed; and W: Word Processing\Ordinances\Public pocket park at 90 APE DA 11-3-14 MD:bjs Page 1 of 2 11 WHEREAS, the City Council finds that the terms of this Development Agreement are necessary to achieve public benefits, to respond to changing community needs and to encourage modifications that adequately achieve the purposes of otherwise applicable City standards; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Development Agreement. The Development Agreement by and between the City of Tukwila and Tukwila TSD, LLC, for the use of shared parking in the public right-of-way of Christensen Road and the development of a public pocket park at the north end of Christensen Road, as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A, is hereby approved, and the Mayor is authorized and directed to execute said 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 , 2014. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Rachel Turpin, City Attorney Ordinance Number: Exhibit A — Development Agreement W: Word Processing\Ordinances1Public pocket park at 90 APE DA 11-3-14 MD:bjs Page 2 of 2 12 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND TUKWILA TSD LLC, FOR THE SHARED USE OF PARKING IN THE RIGHT OF WAY OF CHRISTENSEN ROAD AND THE DEVELOPMENT OF A PUBLIC POCKET PARK AT THE NORTH END OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST I. PREAMBLE THIS DEVELOPMENT AGREEMENT is made and entered into this day of 2014, by and between the City of Tukwila, a noncharter, optional code Washington municipal corporation, hereinafter the "City," and Tukwila TSD LLC, a (corporation, limited partnership, partnership, etc.) organized under the laws of the State of Washington, hereinafter the "Developer." II. RECITALS WHEREAS, the Developer desires to develop a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, one parking space per guest room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District; and WHEREAS, the Developer has submitted a site plan showing the required number of parking stalls for the hotel cannot be accommodated as surface parking on the project site; and WHEREAS, the Developer proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Rd. to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, the City of Tukwila is the owner of the Christensen Rd. right-of-way, which includes undeveloped area adjacent to the project's eastern property line, paved street, parking, and cul-de-sac areas; and WHEREAS, the parking area in the right-of-way of Christensen Rd. is currently used by members of the public for access to the Green River Trail, shoreline, and parks areas; and WHEREAS, hotel parking spaces are expected to be used primarily in the evening and nighttime hours; parking spaces for trail, shoreline, and parks access are expected to be used during daylight hours; and WHEREAS, the Developer proposes to develop and maintain a public pocket park within the cul-de-sac area as outlined in Exhibit B in exchange for use of the other right-of-way areas on the east side of the project site for parking; and 1 13 WHEREAS, the Developer proposes to add parking spaces within the undeveloped right-of- way area adjacent to the hotel site and to reconfigure existing spaces to increase the number of parking spaces that would be shared for hotel use and the public for access to the Green River Trail; and WHEREAS, all parking spaces within the right-of-way area will be shared and at least four spaces will be designated for non -hotel users to ensure access to the Green River Trail for members of the public; and WHEREAS, the Developer proposes to maintain the parking area within the right-of-way as outlined in Exhibit B for the length of this agreement; and WHEREAS, the vision for parking areas within the Transit Oriented Development (TOD) Neighborhood in the Southcenter Subarea Plan is that "parking will be accommodated by a combination of off- and on -street parking spaces/lots" and shared parking facilities. "Such facilities can be shared between public and private uses" (p. 19); and WHEREAS, the Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...."; and WHEREAS, the Developer proposes to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and Green River Trail; and WHEREAS, implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan include "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships; and WHEREAS, a through -way from Andover Park East to Christensen Rd will be constructed as part of the project to replace the emergency vehicle maneuvering function of the cul-de-sac; and WHEREAS, the pocket park will be a City of Tukwila park that will provide mutual benefits to hotel guests and the public; and WHEREAS, uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan and the proposed development furthers this goal; and WHEREAS, the Washington State Legislature has authorized the execution of a development agreement between a local .government and a person having ownership or control of real property within its jurisdiction (RCW 36.70B.170(1)); and 2 14 WHEREAS, a development agreement must set forth the development standards and other provisions that shall apply to, govern and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement (RCW 36.70B.170(1)); and WHEREAS, for the purposes of this development agreement, "development standards" includes, but is not limited to, all of the standards listed in RCW 36.70B.170(3); and WHEREAS, a development agreement must be consistent with the applicable development regulations adopted by a local government planning under chapter 36.70A RCW (RCW 36.70B.170(1)); and WHEREAS, TMC Section 18.86.030 explicitly allows for flexibility in development standards applicable to a property developed under a development agreement "to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards"; and WHEREAS, this Development Agreement by and between the City of Tukwila and the Developer (hereinafter the "Development Agreement"), relates to the development known as the 90 Andover Park East Hotel and Pocket Park, which is located at: 90 Andover Park East (hereinafter the "Subject Property"); and WHEREAS, a development agreement must be approved by ordinance or resolution after a public hearing (RCW 36.70B.200); and WHEREAS, a public hearing for this Development Agreement was held on , and the City council approved this Development Agreement by Ordinance on ; and NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows: III. AGREEMENT Section 1. The Project. The Project is the development and use of the Subject Property, consisting of 0.39 acres (approximately17,000 square feet) in the City of Tukwila located at 90 Andover Park East and a portion of Christensen Road right-of-way for a ninety-two (92) room five (5) story hotel, a Pocket Park, and forty-five (45) shared parking spaces on Christensen Road right- of-way, as shown on Exhibit B. Section 2. The Subject Property. The Subject Property and right-of-way are legally described in Exhibit A, attached hereto and incorporated herein by this reference. 3 15 Section 3. Definitions. As used in this Development Agreement, the following terms, phrases and words shall have the meanings and be interpreted as set forth in this Section. a) "Adopting Ordinance" means the Ordinance which approves this Development Agreement, as required by RCW 36.70B.200. b) "Council" means the duly elected legislative body governing the City of Tukwila. c) "Design Guidelines" means the Tukwila Design Manual, as adopted by the City. d) "Director" means the City's Community Development Director. e) "Effective Date" means the effective date of the Adopting Ordinance. f) "Existing Land Use Regulations" means the ordinances adopted by the City Council of Tukwila in effect on the Effective Date, including the adopting ordinances that govern the permitted uses of land, the density and intensity of use, and the design, improvement, construction standards and specifications applicable to the development of the Subject Property, including, but not limited to the Comprehensive Plan, the City's Official Zoning Map and development standards, the Design Manual, the Public Works Standards, SEPA, Concurrency Ordinance, and all other ordinances, codes, rules and regulations of the City establishing subdivision standards, park regulations, building standards. "Existing Land Use Regulation" does not include non -land use regulations, which includes taxes and impact fees. g) "Landowner" is the party who has acquired any portion of the Subject Property from the Developer who, unless otherwise released as provided in this Agreement, shall be subject to the applicable provisions of this Agreement. The "Developer" is identified in Section 5 of this Agreement. h) "Project" means the anticipated development of the Subject Property, as specified in Section 1 and as provided for in all associated permits/approvals, and all incorporated exhibits. i) "Vesting date" means the date a valid and fully complete building permit application for the hotel is submitted to the City of Tukwila. Section 4. Exhibits. Exhibits to this Agreement are as follows: a) Exhibit 1 - legal description of the Subject Property and the right-of-way. b) Exhibit 2 - Conceptual Site Plan c) Exhibit 3 - Conceptual Site Plan of the Pocket Park including a list of park amenities; construction and maintenance cost estimates for the Pocket Park and parking area; and land value estimate for the parking and drive -aisle area of Christensen Road right-of-way. 4 16 Section 5. Parties to Development Agreement. The parties to this Agreement are: a) The "City" is the City of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188. b) The "Developer" or Owner is a private enterprise which owns the Subject Property in fee, and whose principal office is located at 21109 66th Avenue South, Kent, WA 98032. c) The "Landowner." From time to time, as provided in this Agreement, the Developer may sell or otherwise lawfully dispose of a portion of the Subject Property to a Landowner who, unless otherwise released, shall be subject to the applicable provisions of this Agreement related to such portion of the Subject Property. Section 6. Proiect is a Private Undertaking. It is agreed among the parties that the Project is a private development and that the City has no interest therein except as explicitly outlined in this Agreement and as authorized in the exercise of its governmental functions. Section 7. Effective Date and Term. This Agreement shall commence upon the effective date of the Adopting Ordinance approving this Agreement, and shall continue in force for a period of 50 years, with the option to extend the Agreement an additional 30 years, unless extended or terminated as provided herein. Following the expiration of the term or extension thereof, or if sooner terminated, this Agreement shall have no force and effect, subject however, to post -termination obligations of the Developer or Landowner. Section 8. Terms. A. Design • The Project at 90 Andover Park East shall be allowed non-exclusive use rights for the parking spaces and drive aisle area of Christensen Rd (as depicted in Exhibit B) to meet minimum parking requirements for the development. This Agreement shall not preclude the City from entering into additional agreements regarding use of this area by other private parties. The Project will be subject to the development regulations in effect at the time of complete permit application submittals. • The site plan attached as Exhibit B is included with this Agreement for reference only, and has not yet been approved as of the date of execution of this Agreement. The site plan shall be subject to modifications during review of the required land use permits. • As a result of the cul-de-sac closure for use as the pocket park, public access through 90 Andover Park East is hereby allowed and provided for. • The Developer shall construct a pedestrian connection between the intersection of Andover • Park East and Tukwila Parkway to the proposed pocket park and the Green River Trail. 5 17 • All shared parking stalls will be constructed and maintained to Public Works Infrastructure Design and Construction Standards. • The detailed park design meeting the requirements for approval shall be approved by the Director of the City of Tukwila Parks and Recreation Department as part of the building permit approval process. The Conceptual Plan (Exhibit C) shall be revised to address the following items: a) Specific locations of the trash receptacles and the three outdoor exercise pieces shall be noted. b) A short pathway connecting the trails/walkways shall be included. c) Specifications and details of the monument wall and the outdoor exercise equipment shall be preapproved by the Parks Department. B. Construction • The cost of permits and plans required for construction of the park and parking area shall be borne by the Developer and submitted as part of the permits for the hotel. The pocket park must receive final approval by all required City departments prior to issuance of the Certificate of Occupancy for the hotel. • The Developer is responsible to provide any electrical service that may be necessary for the pocket park. C. Maintenance • The pocket park and the parking area shall be subject to inspections every five years. • Developer is solely responsible for the cost and maintenance of the pocket park and the parking spaces. New striping of the parking spaces shall be completed every three years. • A detailed maintenance plan for the pocket park must be submitted and preapproved by the Parks and Recreation Department before acceptance. D. Operations • A total of 92 parking spaces are required for the 92 -room hotel as proposed. The site plan in Exhibit B includes 98 parking spaces. All parking spaces within the right-of-way of Christensen Road shall be for the joint use of the hotel users and members of the public and at least four spaces shall be designated for non -hotel users to ensure access to the Green River Trail for members of the public. 6 18 Section 9. Vested Rights. During the term of this Agreement, unless sooner terminated in accordance with the terms hereof, in developing the Subject Property consistent with the Project described herein, Developer is assured, and the City agrees, that the development rights, obligations, terms and conditions specified in this Agreement, are fully vested in the Developer and may not be changed or modified by the City, except as may be expressly permitted by, and in accordance with, the terms and conditions of this Agreement, including the Exhibits hereto, or as expressly consented thereto by the Developer. Section 10. Minor Modifications. Minor modifications from the approved permits or the exhibits attached hereto may be approved in accordance with the provisions of the City's code, and shall not require an amendment to this Agreement. Section 11. Further Discretionary Actions. Developer acknowledges that the Existing Land Use Regulations contemplate the exercise of further discretionary powers by the City. These powers include, but are not limited to, review of additional permit applications under SEPA. Nothing in this Agreement shall be construed to limit the authority or the obligation of the City to hold legally required public hearings, or to limit the discretion of the City and any of its officers or officials in complying with or applying Existing Land Use Regulations. Section 12. Existing Land Use Fees and Impact Fees. A. Land use fees adopted by the City by ordinance as of the Effective Date of this Agreement may be increased by the City from time to time, and are applicable to permits and approvals for the Subject Property, as long as such fees apply to similar applications and projects in the City. B. All impact fees shall be paid as set forth in the approved permit or approval, or as addressed in Chapters 16.26 and 9.48 of the Tukwila Municipal Code. IV. GENERAL PROVISIONS Section 1. Assignment of Interests, Rights, and Obligations. This Agreement shall be binding and inure to the benefit of the Parties. No Party may assign its rights under this Agreement without the written consent of the other Party, which consent shall not unreasonably be withheld. This Agreement shall be binding upon and shall inure to the benefit of the heirs, successors, and assigns of the Developer and the City. Section 2. Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein. Section 3. Severability. The provisions of this Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity of its application to other persons or circumstances. 7 19 Section 4. Termination. This Agreement shall expire and/or terminate as provided below: A. This Agreement shall expire and be of no further force and effect if the Developer fails to submit a complete building permit application for the construction of the hotel within one year, or if the Project construction is not completed within three years, of the effective date of this Agreement; or if at any time after Project construction is completed, Developer fails to maintain the Pocket Park and the parking areas according to the terms of this Agreement. Nothing in this Agreement shall extend the expiration date of any permit or approval issued by the City for any development. B. This Agreement shall expire and be of no further force and effect if the Developer does not construct the Project as contemplated by the permits and approvals identified in this Agreement, or submits applications for development of the Subject Property that are inconsistent with such permits and approvals. C. This Agreement shall terminate at such time as a change of use occurs at 90 Andover Park East, or at such time as 90 Andover Park East is redeveloped. D. This Agreement shall terminate in the event the Washington State Department of Transportation (WSDOT) widens Interstate 405 in vicinity of the Subject Property, or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park. E. This Agreement shall terminate upon the abandonment of the Project by the Developer. The Developer shall be deemed to have abandoned the Project if/when written notice is provided to the City that the Developer's interest in the Project has been terminated. Said notice shall be given to the City no more than thirty (30) days after the Developer's interest in the Project is terminated. F. This Agreement may terminate pursuant to Section IV.3, Severability, or Section IV.10, Default, or as otherwise outlined in this Agreement. G. If the use will continue upon expiration of the term of this Agreement, the Developer shall either negotiate a new agreement with the City or provide documentation showing how the number of parking spaces required by the codes at the time of expiration will be provided. 8 20 Section S. Effect upon Termination on Developer Obligations. Termination of this Agreement as to the Developer of the Subject Property or any portion thereof shall not affect any of the Developer's obligations to comply with the City Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or subdivision map or other land use entitlements approved with respect to the Subject Property, any other conditions of any other development specified in the Agreement to continue after the termination of this Agreement or obligations to pay assessments, liens, fees or taxes. Section 6. Effects upon Termination on City. Upon any termination of this Agreement as to the Developer of the Subject Property, or any portion thereof, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the property affected by such termination (provided that vesting of such entitlements, conditions or fees may then be established for such property pursuant to then existing planning and zoning laws). Section 7. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default hereof. Section 8. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. Venue for any action shall lie in King County Superior Court or the U.S. District Court for Western Washington. Section 9. Attorneys' Fees. In the event of any litigation or dispute resolution process between the Parties regarding an alleged breach of this Agreement, neither Party shall be entitled to any award of attorneys' fees. Section 10. Notice of Default/Opportunity to Cure/Dispute Resolution. A. In the event a Party, acting in good faith, believes the other Party has violated the terms of this Agreement, the aggrieved Party shall give the alleged offending Party written notice of the alleged violation by sending a detailed written statement of the alleged breach. The alleged offending Party shall have thirty (30) days from receipt of written notice in which to cure the alleged breach unless the Parties agree, in writing, to additional time. This notice requirement is intended to facilitate a resolution by the Parties of any dispute prior to the initiation of litigation. Upon providing notice of an alleged breach, the Parties agree to meet and agree upon a process for attempting to resolve any dispute arising out of this Agreement. A lawsuit to enforce the terms of this Agreement shall not be filed until the latter of (a) the end of the cure period or (b) the conclusion of any dispute resolution process. B. After notice and expiration of the thirty (30) day period or other time period as agreed to by the Parties, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other party or Landowner to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. In addition, the City may decide to file an action to enforce the City's Codes, and to obtain penalties and costs as provided in the Tukwila Municipal Code for violations of this Development Agreement and the Code. 9 21 Section 11. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and is not intended to benefit any other person or entity, and no person or entity not a signatory to this Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No other person or entity not a Party to this Agreement may enforce the terms and provisions of this Agreement. Section 12. Integration. This Agreement and its exhibits represent the entire agreement of the parties with respect to the subject matter hereof. There are not other agreements, oral or written, except as expressly set forth herein. Section 13. Authority. The Parties each represent and warrant that they have full power and actual authority to enter into this Agreement and to carry out all actions required of them by this Agreement. All persons are executing this Agreement in their representative capacities and represent and warrant that they have full power and authority to bind their respective organizations. Section 14. Covenants Running with the Land. The conditions and covenants set forth in this Agreement and incorporated herein by the Exhibits shall run with the land and the benefits and burdens shall bind and inure to the benefit of the parties. The Developer, Landowner and every purchaser, assignee or transferee of an interest in the Subject Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Subject Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of a Developer contained in this Agreement, as such duties and obligations pertain to the portion of the Subject Property sold, assigned or transferred to it. Section 15. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be amended by mutual consent of all of the parties, provided that any such amendment shall follow the process established by law for the adoption of a development agreement (see, RCW 36.70B.200). However, nothing in this Agreement shall prevent the City Council from making any amendment to its Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations affecting the Subject Property as the City Council may deem necessary to the extent required by a serious threat to public health and safety. Nothing in this Development Agreement shall prevent the City Council from making any amendments of any type to the Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations relating to the Subject Property. Section 16. Releases. Developer, and any subsequent Landowner, may free itself from further obligations relating to the sold, assigned, or transferred property, provided that the buyer, assignee or transferee expressly assumes the obligations under this Agreement as provided herein. 10 22 Section 17. Notices. Notices, demands, correspondence to the City and Developer shall be sufficiently given if dispatched by pre -paid first-class mail to the addresses ofthe parties as designated in Section 5. Notice to the City shall be to the attention of both the Mayor's Office and the City Attorney. Notices to subsequent Landowners shall be required to be given by the City only for those Landowners who have given the City written notice of their address for such notice. The parties hereto may, from time to time, advise the other of new addresses for such notices, demands or correspondence. Section 18. Reimbursement for Agreement Expenses of the City. Developer agrees to reimburse the City for actual expenses incurred over and above fees paid by Developer as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees and reasonable staff and consultant costs not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section, as well as any processing fees owed to the City for the Project, are paid to the City. This Agreement shall be terminated if the Developer does not pay to the City the fees provided for in this section. Upon payment of all expenses, the Developer may request written acknowledgement of all fees. Such payment of all fees shall be paid, at the latest, within thirty (30) days from the City's presentation of a written statement of charges to the Developer Section 19. Police Power. Nothing in this Agreement shall be construed to diminish, restrict or limit the police powers of the City granted by the Washington State Constitution or by general law. Section 20. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party or a Landowner to challenge this Agreement or any provision herein, the City and Developer will collaborate to resolve such legal action. In the event such legal action cannot be resolved, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to Developer and/or Landowner(s). In such event, Developer and/or such Landowners shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to, attorneys' fees and expenses of litigation, and damages awarded to the prevailing party or parties in such litigation. Neither the City nor the Developer and/or Landowner shall settle any lawsuit without the consent of the other. The City and Developer/Landowner shall act in good faith and shall not unreasonably withhold consent to settle. Section 21. No Presumption Against Drafter. This Agreement has been reviewed and revised by legal counsel for both Parties and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreement. Section 22. Headings. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this Agreement. Section 23. Recording. Developer shall record an executed copy of this Agreement with the King County Auditor, pursuant to RCW 36:70B.190, no later than fourteen (14) days after the Effective Date. 11 23 Section 24. Legal Representation. In entering into this Agreement, Developer represents that it has been advised to seek legal advice and counsel from its attorney concerning the legal consequences of this Agreement; that it has carefully read the foregoing Agreement and knows the contents thereof, and signs the same of its own free act; and that it fully understands and voluntarily accepts the terms and conditions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the dates set forth below: OWNER/DEVELOPER: CITY OF TUKWILA By By Its Managing Member Its Mayor Tukwila TSD LLC 21109 66th Avenue South Kent, WA 98032 ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day of , 2014, before me personally appeared , to me known to be the individual that executed the within and foregoing instrument, and acknowledged the said instrument to be his/her free and voluntary act and deed for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. 12 24 Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day of 2014, before me personally appeared , and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged as the of the City of Tukwila to be the free and voluntary act of said party for the uses and purposes mentioned in this instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 13 25 EXHIBIT 1 NOVEMBER 18, 2014 PROJECT NO. 06007 EXHIBIT 1-A LEGAL DESCRIPTION OF PROPERTY TRACT 4, ANDOVER INDUSTRIAL PARK NO. 1, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 66 OF PLATS, PAGE 36, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THE SOUTH 28 FEET THEREOF; AND EXCEPT THAT PORTION THEREOF CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NO. 592245, ACCORDING TO DECREE FILED JANUARY 14, 1963. 27 EXHIBIT 1-B LEGAL DESCRIPTION PARKING EASEMENT NOVEMBER 18, 2014 PROJECT NO. 06007 AN EASEMENT FOR VEHICULAR PARKING PURPOSES OVER, ACROSS AND UPON THE RIGHT-OF-WAY OF CHRISTENSEN ROAD, BEING LOCATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 23, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON. SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF ANDOVER PARK EAST WITH THE CENTERLINE OF TUKWILA PARKWAY AS MARKED BY A CONCRETE MONUMENT; THENCE NORTH 84°44'00" EAST ALONG THE CENTERLINE OF TUKWILA PARKWAY 231.72 FEET; THENCE SOUTH 05°16'00" EAST 40.00 FEET TO THE POINT OF INTERSECTION OF THE SOUTH MARGIN OF TUKWILA PARKWAY WITH THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE SOUTHERLY ALONG SAID WEST MARGIN ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 00°13'45", THE CENTER OF WHICH BEARS SOUTH 80°38'25" WEST, AN ARC DISTANCE OF 1.75 FEET TO THE TRUE POINT OF BEGINNING; THENCE EASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 35.00 FEET, A CENTRAL ANGLE OF 28°38'13" EAST, THE CENTER OF WHICH BEARS NORTH 23°22'13" EAST, AN ARC DISTANCE OF 17,49 FEET TO A POINT OF TANGENCY; THENCE NORTH 84°44'00" EAST 46.59 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; THENCE SOUTHERLY AND EASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 16.94 FEET, A CENTRAL ANGLE OF 73°30'10", THE CENTER OF WHICH BEARS NORTH 87°22'15" EAST, AN ARC DISTANCE OF 21.74 FEET TO A POINT OF REVERSE CURVATURE; THENCE EASTERLY AND SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 2.50 FEET, A CENTRAL ANGLE OF 72°45'37", THE CENTER OF WHICH BEARS SOUTH 13°52'05" WEST, AN ARC DISTANCE OF 3.17 FEET TO A POINT OF COMPOUND CURVATURE; THENCE SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 1547.72 FEET, A CENTRAL ANGLE OF 09°37'47, THE CENTER OF WHICH BEARS SOUTH 86°37'42" WEST, AN ARC DISTANCE OF 260.13 FEET; THENCE NORTH 84°06'43" WEST 43.00 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; PAGE 1 28 (PARKING EASEMENT CONTINUED) THENCE NORTHERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 1504.72 FEET, A CENTRAL ANGLE OF O1°05'52", THE CENTER OF WHICH BEARS NORTH 83°43'52" WEST, AN ARC DISTANCE OF 28.83 FEET TO A POINT OF COMPOUND CURVATURE; THENCE NORTHERLY AND WESTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 25,00 FEET, A CENTRAL ANGLE OF 93°47'54, THE CENTER OF WHICH BEARS NORTH 84°49'45" WEST, AN ARC DISTANCE OF 40.93 FEET TO THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE NORTH 00°45'11" WEST ALONG SAID WEST MARGIN 152.13 FEET TO THE BEGINNING OF A TANGENT CURVE TO THE LEFT; THENCE CONTINUING NORTH ALONG SAID WEST MARGIN ON A CURVE TO THE LEFT, HAVING A RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 08°22'39", THE CENTER OF WHICH BEARS SOUTH 89°14'49" WEST, AN ARC DISTANCE OF 63.97 FEET TO THE TRUE POINT OF BEGINNING. SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. 1/ Old PAGE 2 29 EXHIBIT 1-C VEHICULAR PARKING EASEMENT AREA 267.49 _ - N 231.72' o11 TUKWILA PARKWAY o 00 141 N 84'44'00" E r R=50.00' &=84'56'09" L=74.12' ANDOVER PARK EAST T.L. NO. 022300-0040-03 to 'cV 0 O Z 30' 211.59' N 89'47'51" E 1"=50' NOV. 2014 PROJECT NO. 06007 PAGE 1 OF 2 40' 11M HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CUNTON, WA 95236 425.822.7271 30 EXHIBIT 1-C - CONT'D. VEHICULAR PARKING EASEMENT AREA 231.72' C1 TPOB CURVE TABLE CURVE DELTA LENGTH RADIUS RADIAL BEARING C1 013'45" 1.75' 437.50' S 80'38'25" W C2 28'38'13" 17.49' 35.00' N 2312'13" E C3 73'30'10" 21.74' 16.94' N 8722'15" E C4 72'45'37" 3.17' 2.50' S 13'52'05" W C5 9'37'47" 260.13' 1547.72' S 86'37'42" W C6 1'05'52" 28.83' 1504.72' N 83'43'52" W C7 93'47'54" 40.93' 25.00' N 84'49'45" W C8 8'22'39" 63.97' 437.50' S 8914'49" W LINE TABLE NUM BEARING DISTANCE 11 N 84'44'00" E 46.59' 12 N 84'06'43" W 43.00' 13 N 00'4511" W 152.13' 1"=50' NOV. 2014 PROJECT NO. 06007 if 0 co CA l , I PAGE 2 OF 2 a v TIM HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CUNTON, WA 98236 425.822.7271 31 EXHIBIT 1-D LEGAL DESCRIPTION POCKET PARK EASEMENT NOVEMBER 18, 2014 PROJECT NO. 06007 AN EASEMENT FOR POCKET PARK PURPOSES OVER, ACROSS AND UPON THE RIGHTS-OF-WAY OF TUKWILA PARKWAY AND CHRISTENSEN ROAD, BEING LOCATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 23, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON. SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF ANDOVER PARK EAST WITH THE CENTERLINE OF TUKWILA PARKWAY AS MARKED BY A CONCRETE MONUMENT; THENCE NORTH 84°44'00" EAST ALONG THE CENTERLINE OF TUKWILA PARKWAY 220.02 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTHERLY AND EASTERLY ALONG A NON -TANGENT CURVE TO THE RIGHT, HAVING A RADIUS OF 31.28 FEET, A CENTRAL ANGLE OF 150°25'43", THE CENTER OF WHICH BEARS SOUTH 78°05'28" EAST, AND ARC DISTANCE OF 82.13 FEET; THENCE SOUTH 72°17'22" WEST 1.33 FEET TO THE BEGINNING OF A NON - TANGENT CURVE TO THE RIGHT; THENCE SOUTHERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 29.95 FEET, A CENTRAL ANGLE OF 30°02'29", THE CENTER OF WHICH BEARS SOUTH 72°20',22" WEST, AN ARC DISTANCE OF 15.70 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; THENCE EASTERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 23.34 FEET, A CENTRAL ANGLE OF 45°26'42", THE CENTER OF WHICH BEARS SOUTH 03°19'48" EAST, AN ARC DISTANCE OF 18.51 FEET; THENCE SOUTH 04°19'51" EAST 15.19 FEET; THENCE SOUTH 84°44'00" WEST 40.26 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; THENCE NORTHERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 23.34 FEET, A CENTRAL ANGLE OF 05°24'04", THE CENTER OF WHICH BEARS NORTH 86°14'34" EAST, AN ARC DISTANCE OF 2.20 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; THENCE WESTERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 29.95 FEET, A CENTRAL ANGLE OF 30°34'57", THE CENTER OF WHICH BEARS NORTH 14°04'01" WEST, AN ARC DISTANCE OF 15.99 FEET; THENCE SOUTIH 16°30'56" WEST 1.33 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE RIGHT; PAGE 1 32 (POCKET PARK EASEMENT CONTINUED) THENCE WESTERLY AND NORTHERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 31.28 FEET, A CENTRAL ANGLE OF 85°23'35", THE CENTER OF WHICH BEARS NORTH 16°30'56" EAST, AN ARC DISTANCE OF 46.62 FEET TO THE TRUE POINT OF BEGINNING. SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. PAGE 2 33 30' ANDOVER PARK EAST rn 0 (V r 0 0 z 30' N 84'44'0C_ E N 0012'09" W 0 EXHIBIT 1-E POCKET PARK EASEMENT AREA i 267.4'______ ;---- 220.02 TUKWLA PARKWAY N 84'44'00" E R=437.50' R=50.00' A=08'36'24" d=84'56'09" L=65.72' L=74.12' T.L. NO. 022300-0040-03 N co M OD 6 A N 1"=50' NOV. 2014 PROJECT NO. 06007 211.59' N 89'47'51" E ANY PAGE 1 OF 2 jO/Pfr N 00'45'11" W 40' 40' 11M HANSON AND ASSOCIATES 8255 CULIUS BAY ROAD CLINTON, WA 98236 425.822.7271 34 EXHIBIT 1-E - CONT*D. POCKET PARK EASEMENT AREA 1"-20' NOV. 2014 PROJECT NO. 06007 CURVE TABLE CURVE DELTA LENGTH RADIUS RADIAL BEARING C1 150'25'43" 82.13' 31.28' S 78'05'28" E C2 30'02'29" 15.70' 29.95' S 7270'22" W C3 4526'42 18.51' 23.34' S 0319'48" E C4 05'24'04" 2.20' 23.34' N 8614'34" E C5 30'34'57" 15.99' 29.95' N 14'04'01" W C6 85'23'35" 46.62' 31.28' N 16'30'56" E PAGE 2 OF 2 LINE TABLE NUM BEARING DISTANCE 11 S 7217'22" W 1.33' 12 S 0419'51" E 15.19' L3 S 84'44'00" W 40.26' L4 S 16'30'56" W 1.33' 11M HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CLINTON, WA 98236 425.822.7271 35 PARK EAST TUKWILA PARS EXHIBIT 2 POC ARK W DF. SI _ LS 111 INI� SAC I 1SL re 0 Z TY LINE PATIO HOTEL 5 -STORY 59,170 5Q. PT 92 UNITS '- TYPICAL PARKING 'CE 9'X19' 04 04 I I I I I I I IV 53 ONSITE PARKING SPACES ICICICCICC[CJDCICEICciC(_)ASAPN SITE PLAN I'=50-0' N cicrIcricrIcicrIc 45 CHRIS a DFFtITE PAR NG S S FROM 24 SPACES TO 27 RE -STRIPE EXISTING FOR INCREASED PARKING SP HOLIDAY 1 N EXPRESS TULWILA,A TUKWILA SD L.L.C. Daie Sweenej, ARCHITECT 10/31/14 5715 143rd Plein S.E. Bellevue. WA 98006 425-260-8969 37 EXHIBIT 3 PROPOSED POCKET PARK — CHRISTENSEN ROAD Development of the park and parking area will include the installation of: • New graded area for the park • A circular seating wall • Bike rack • Picnic tables • Waste receptacle • Pathways • Three life trail stations (along the adjacent trail) • Evergreen trees to provide screening between the 65th Avenue S bridge, Tukwila Parkway, and the park • Flowering trees • Restriping 27 parking spaces along the east side of Christensen Road • Striping four spaces at the north end of Christensen Road • New pavement and striping for the development of 14 new spaces along the west side of Christensen Road and four spaces at the north end. • Maintaining the parking area, landscaping, irrigation, and waste disposal for the public pocket park (Includes restriping spaces every three years). • Allowing public access to the hotel site as required for park access and egress • Planned access for emergency vehicles • The pocket park will be included within the open space requirements of the City Municipal Code and Christensen Road and the parking spaces will comply with all relevant codes as well as the American with Disabilities Act (ADA). 39 PICNIC TABLE EVERGREEN TREE CIRCULAR SEATING (360) 3374972 TUKWILA POCKET PARK Schematic Cost Estimate ITEM PROPOSED TUKWILA POCKET PARK & PARKING - COST SUMMARY Date: September 4, 2014 QTY. COST TOTAL REMARKS New Concrete Paving Area New Asphak Paving Area Landscape Area Hardscape Improvements Demolition ($/c.y.) Concrete Walks & Paving ($/s.f) Asphalt Paving ($/s.f.) Seatwall ($/fs.f.) Picnic Tables (S/ea.) Bike Rack ($/f.s.f.) Trash Receptacles Life Stations ($/fs.f.) Subtotal Landscape Improvements 3,400 700 9,875 2,706 $1.95 3,400 $6.50 700 $3.00 165 $200 3 $2,200 1 $650 1 $750 3 $3,500 $5,277 Sawcut & demo. Existing roadway & curbing 22,100 4" rem. Conc. w/scoring and broom finish 2,100 33,000 18" height, c.i.p.concrete wall & raised planter 6,600 6' length 650 750 10,500 Bed Prep. & Fine Grading Soil Prep Evergreen Trees Deciduous Trees Lawn, Plantings, and Irrigation Subtotal 9,875 $0.10 89 $35.00 7 $250.00 6 $400.00 9,875 $4.00 $80,977 $988 Al lawn & planting areas 3,111 3"depth - all lawn & planting areas 1,750 6 Min. Ht. 2,400 2" CaL, 12' Min. Ht. 39,500 Contingency 10% Note: Estimate does not include grading, drainage, or parking Civil Engineering & New Parking Spaces - Right -of -Way Landscape & Architectural Fees Annual Maintenance Total $47,748 $12,872 $25,000 $13,440 $6,000 (Annual fee subject to inflation over term of agreement) $186,037 Sources: Jeffrey 13. Glander & Associates (Landscape Architecture & Site Planning) Civil Engineer Tri -States Developn>ent. LLC. Dale Sweeney, Architect 43 Land Value estimate for parking and drive aisle area of Christensen Road Approximate land area including right-of-way (s.f.) 17,103 Developer's contracted land cost per square foot $25.00 Land acquisition cost (If 100% use) $427,575 Proposed pocket park. & parking cost estimate $186,037 Pocket park & parking as percentage of total cost 43.5% * Ongoing maintenance and striping costs after initial year go on indefinitely 44 Potential Shoreline Restoration Area Shoreline restoration area = 73,800 square feet (1.69 acres) 45 • Community Affairs & Parks Committee Minutes November 12, 2014 - Page 2 C. Ordinance: Development Agreement for Proposed Hotel at 90 Andover Park East Staff is seeking Council approval of an ordinance to approve a development agreement with Tukwila TSD, LLC for the use of parking in a public right-of-way in exchange for the construction of a public pocket park. Tukwila TSD LLC proposes to build a new five -story hotel at 90 Andover Park East with approximately 90 guest rooms. A site plan demonstrates that the 90 required parking stalls cannot be accommodated, so the developer proposes a shared parking and drive aisle area in the right-of-way of Christenson Road in exchange for developing a public pocket park in the cul-de-sac area nearby. The proposed pocket park will be built and maintained by the developer who will also provide public access through the property and construct a pedestrian connection to the park and the trail. The initial term of the agreement is for 50 years with an option to extend for an additional 30. The agreement includes several termination clauses that protect the City in the event of failure to obtain permits or complete construction, failure to maintain the park and/or parking areas, property redevelopment or use change, and WSDOT actions to widen 1-405. Councilmember Robertson noted that the proposed pocket park is in an isolated area that is already close to an existing natural amenity - the river and trail. He proposed an alternative that would allocate the funds specified in the development agreement for the pocket park to go toward a tree planting project in the area of the river bank across Christensen Road. Tables and benches could be added as well. Planting trees is a key component of regional efforts to restore aquatic ecosystems and salmon habitat in the Green-Duwamish watershed. In this proposal, the developer would provide the money and the City could assume responsibility for the project, either alone or in concert with a group already doing this kind of restoration work. Committee members and staff discussed the original and the alternative proposals. The Committee agreed they do not want to delay the agreement or add costs for the developer. They support the alternative if those conditions are met, and if they are not, they will support the original pocket park. Staff suggested that if there is majority Council direction, then staff could further review the alternative proposed by Councilmember Robertson to include Public Works and Parks. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional analysis relating to the alternative proposal. The Committee of the Whole will select the preferred option. FORWARD TO NOVEMBER 24, 2014 COMMITTEE OF THE WHOLE WITH ADDITIONAL OPTION AS DISCUSSED. D. Ordinance: Multi -family Property Tax Exemption in Tukwila Urban Center. Staff is seeking Council approval of an ordinance to designate a portion of Tukwila's Transit Oriented Development (TOD) District as a "residential targeted area" and approve a multi -family property tax exemption program to incentivize new housing in that area. The proposed area is that portion of the TOD District that lies west of the Green River, comprising 42 parcels and three property tax levy code areas. Qualifying projects would be exempt from ad valorem property taxes for eight years, or for twelve is specific affordable housing criteria are also met. Staff is proposing a sunset clause under which applications will only be accepted through the end of 2016. To address concerns about condominium owners renting out their units the proposed ordinance includes criteria that the exemption can only be used on units used for permanent residential occupancy. 47 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Committee of the Whole FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: November 18, 2014 (Revised after Community Affairs and Parks Committee meeting on November 12, 2014) SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the proposed Development Agreement for the proposed hotel development at 90 Andover Park East that would allow the shared use of parking in the right-of- way of Christensen Road in exchange for the construction of a public pocket park? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that the required number of parking stalls cannot be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of-way of Christensen Road in exchange for developing a public pocket park in the cul- de sac area of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. DISCUSSION The proposal reviewed by the Community Affairs and Parks Committee included: • Shared use of parking and drive aisle area in the right-of-way of Christensen Road, with 18 new parking spaces added by the developer within the undeveloped right-of-way area adjacent to the hotel site. The developer would also reconfigure the existing spaces to increase the number of parking spaces in the right-of-way. A total of 45 parking spaces would be available within the right-of-way; out of which 41 will be shared between the hotel use and members of the public with four spaces exclusively reserved for non -hotel users including those who want to access the Green River Trail. • In exchange for the shared parking the developer shall: a) Develop and maintain a public pocket park within the existing cul-de-sac area. b) Maintain the park and the parking area for the term of the agreement. c) Provide public access through the subject property to compensate for the cul-de-sac closure. d) Construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and the Green River Trail. INFORMATIONAL MEMO Page 2 • Initial term of 50 years with an option to extend for 30 additional years. • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the constructuon of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations for the park and the parking areas; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to contunue after the expiration of the agreement. This proposal furthers the following goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan: • The Southcenter Subarea Plan envisions that parking will be accommodated by a combination of off- and on -street parking spaces/lots and shared parking facilities within the Transit Oriented Development (TOD) Neighborhood. • The Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...." • The implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan includes, "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships". • Uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan. The pocket park and shared parking are considered mutually beneficial to the City and the developer for the following reasons: • There are currently only 27 parking spaces in the right of -way area and the proposal will provide 45 parking spaces. • Hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. • The pocket park will complement the Green River Trail. • The proposal facilitates higher intensity development that is envisioned by the Comprehensive Plan for this area. • The cost of construction and maintenance of the pocket park and the parking spaces will be paid for by the developer in exchange for the shared use of the parking. • Members of the public and emergency vehicles will have access through the hotel parking lot. 4 INFORMATIONAL MEMO Page 3 Alternative proposal discussed at the Community Affairs and Parks Committee: Committee's Recommendation: At the Community Affairs and Parks Committee an alternative that would allocate the funds specified in the development agreement for the pocket park to go toward a tree planting project in the area of the river bank across Christensen Road was discussed. This alternative was recommended by the Committee as it advances the goals of regional efforts to restore aquatic ecosystems and salmon habitat in the Green-Duwamish watershed. Under this proposal, the developer would provide the money and the City could assume responsibility for the project, either alone or in collaboration with a group already doing this kind of restoration work. The Committee supported the alternative if it did not delay the agreement or add costs for the developer. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional analysis relating to the alternative proposal. The Committee of the Whole would then select the preferred option. Staff has further reviewed the alternative proposed by the Committee with the City's Public Works and Parks Department and listed below is their response. A map showing the riverbank area in the general vicinity of the subject site is attached to this memo. The total area from south of 1-405 to the bend in the River is approximately 73,000 square feet. The project cost for any shoreline restoration project that includes site preparation and planting is approximately $2 per square foot. Review of the Committee's recommendation by Bob Giberson, Public Works Director: Following projects are underway that might preclude the quick approval of a Green River planting plan adjacent to 90 Andover Park East along the river: a) Green River System Wide Improvement Framework (SWIF) process will be ongoing through early 2015. It is a US Army Corp of Engineers planning process that is being completed by King County Flood Control District. It involves ongoing engagement with state/federal agencies, business community, environmental community, WRIA9 and other agencies. It will include a prioritized list of capital projects to achieve flood protection goals and vegetation management plans to address large trees and shrubs location with respect to levees. More information about SWIF is available online at http://www.kingcounty.gov/environment/wlr/sections-programs/river- floodplain-section/capital projects/green-river-system-wide-improvement- framework.aspx b) The Tukwila 205 Levee Certification effort will not be completed for at least one year. The biggest unknown to obtain FEMA levee accreditation approval is the scope of repairs and/or improvements. Any required repairs and/or improvements will jeopardize any recent plantings. c) The TUC Pedestrian/Bicycle Bridge final design may include habitat mitigation near the bend in the river to the south of 90 Andover Park East. The design for this project will be completed in 2015 and constructed by 2017 As an alternative option, it appears that there is sufficient contingency in the pocket park cost estimate to allow the developer to contribute $10,000 towards a planting plan for the riverbank. Once a planting plan is approved by the necessary agencies, the developer's funds can be used as a match to other available funds for a complete habitat enhancement planting effort in this vicinity. INFORMATIONAL MEMO Page 4 Review of the Committee's recommendation by Rick Still, Parks and Recreation Director: Back•. u ��• why the pocket park is a valid proposal: a) In 200., staff met with a developer who introduced the concept of using the C istensen Trail parking area as part of their development located between Christensen Road and Andover Park East. Through discussions with this developer, staff hired a landscape architect to initiate a site study and prepare a conceptual design for a pocket park at the turnaround at the north end of Christensen Road. This conceptual design was utilized with several developers throughout the past seven years. A system of pocket parks in the Tukwila Urban Center (TUC) is vital to meeting the recreation and social needs of the community because purchasing larger parcels in this area are cost prohibitive at this time. The few parks currently located in TUC are heavily used by patrons for spending time away from offices on breaks, gaining access to the trail system, meeting people to gather and socialize, for exercise at or to visit as a part of their exercise routine, for access while walking to the train, and to enjoy nature while in an urban setting. c) The Christensen Road pocket park provides an area on the north end of the TUC where there currently is not a recreational opportunity for the community. The area is easily accessed from local businesses and residential areas near City Hall. Hotel development in this area increases the need for a park since many of the people staying in hotels will be using the trail to access Starfire Sports at Fort Dent Park. The park will help contribute to a more connected community and build a sense of community pride. Staff has looked at ways to accommodate tree planting along the Green River while maintaining construction of the pocket park. Staff believes that with value engineering of the pocket park the developer could reduce the construction cost to allow approximately $10,000 for tree plantings along the Green River Trail at Christensen Road. The Committee of the Whole has the following options: 1. Approve the development agreement as originally proposed to allow shared parking in the right-of-way in exchange for building and maintaining a pocket park. 2. Approve the development agreement for the alternative proposed by the Community Affairs and Parks Committee to allow shared parking in the right-of-way in exchange for getting a monetary payment for the riverbank planting project. If this option is selected then the Development Agreement (Exhibit A) will be revised to take out any reference to the pocket park, instead a clause will be added stating the developer shall be responsible for making a payment of $150,000 for the river bank planting project. 3. Approve the development agreement as originally proposed with an amendment to include $10,000 payment by the developer towards the riverbank planting project. If this option is selected then the Development Agreement (Exhibit A) will be revised to include a clause stating the developer shall be responsible to make a payment of $10,000 for the Green River restoration/planting project. 4. Do not enter into any development agreement to share the parking in the right-of-way. 5. Send the proposal back to the Committee of the Whole for further discussion. FINANCIAL IMPACT There is no financial impact to the City as all costs associated with the development and maintenance of the pocket park and additional parking shall be borne by the developer. The developer's cost estimate for the development of the pocket park and additional parking area INFORMATIONAL MEMO Page 5 (Exhibit C) is $186,037. Also, the annual maintenance costs are anticipated to be $6000 per year and subject to inflation over the term of the agreement. The land value of the right -of -area with the shared parking is $427,575 ($25 per square foot for 17,103 square feet total area). RECOMMENDATION The Council is being asked to hold a public hearing on this item and select one of the options listed above. Staff recommends option 3. Bed on the option selected by the Council staff will bring back the revised development agreement for adoption at the subsequent December 1, 2014, Regular Meeting. ATTACHMENTS Vicinity Map Draft Ordinance Exhibit A- Development Agreement Exhibit 1- Legal Description Exhibit 2 -Conceptual Site Plan Exhibit 3 -Conceptual Site Plan of the Pocket Park; list of park amenities with construction cost estimates; and land value estimates. Map showing the riverbank in the vicinity of the subject site Minutes from Community Affairs and Parks Committee meeting Nov 12, 2014. Memo dated Nov 18, 2014, from Councilmember Robertson to the City Council members EXHIBIT 1 NOVEMBER 18, 2014 PROJECT NO. 06007 EXHIBIT 1-A LEGAL DESCRIPTION OF PROPERTY TRACT 4, ANDOVER INDUSTRIAL PARK NO. 1, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 66 OF PLATS, PAGE 36, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THE SOUTH 28 FEET THEREOF; AND EXCEPT THAT PORTION THEREOF CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NO. 592245, ACCORDING TO DECREE FILED JANUARY 14, 1963. NtN11111 !IH 01/41 •a 8903 0.1 c,J �► a " wAtpNN IZUGUISIO 11 1g//' EXHIBIT 1-B LEGAL DESCRIPTION PARKING EASEMENT NOVEMBER 18, 2014 PROJECT NO. 06007 AN EASEMENT FOR VEHICULAR PARKING PURPOSES OVER, ACROSS AND UPON THE RIGHT-OF-WAY OF CHRISTENSEN ROAD, BEING LOCATED IN THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 23, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON. SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF ANDOVER PARK EAST WITH THE CENTERLINE OF TUKWILA PARKWAY AS MARKED BY A CONCRETE MONUMENT; THENCE NORTH 84°44'00" EAST ALONG THE CENTERLINE OF TUKWILA PARKWAY 231.72 FEET; THENCE SOUTH 05°16'00" EAST 40.00 FEET TO THE POINT OF INTERSECTION OF THE SOUTH MARGIN OF TUKWILA PARKWAY WITH THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE SOUTHERLY ALONG SAID WEST MARGIN ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 00°13'45", THE CENTER OF WHICH BEARS SOUTH 80°38'25" WEST, AN ARC DISTANCE OF 1.75 FEET TO THE TRUE POINT OF BEGINNING; THENCE EASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 35.00 FEET, A CENTRAL ANGLE OF 28°38'13" EAST, THE CENTER OF WHICH BEARS NORTH 23°22'13" EAST, AN ARC DISTANCE OF 17.49 FEET TO A POINT OF TANGENCY; THENCE NORTH 84°44'00" EAST 46.59 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; THENCE SOUTHERLY AND EASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 16.94 FEET, A CENTRAL ANGLE OF 73°30'10", THE CENTER OF WHICH BEARS NORTH 87°22'15" EAST, AN ARC DISTANCE OF 21.74 FEET TO A POINT OF REVERSE CURVATURE; THENCE EASTERLY AND SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 2.50 FEET, A CENTRAL ANGLE OF 72°45'37", THE CENTER OF WHICH BEARS SOUTH 13°52'05" WEST, AN ARC DISTANCE OF 3.17 FEET TO A POINT OF COMPOUND CURVATURE; THENCE SOUTHERLY ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 1547.72 FEET, A CENTRAL ANGLE OF 09°37'47, THE CENTER OF WHICH BEARS SOUTH 86°37'42" WEST, AN ARC DISTANCE OF 260.13 FEET; THENCE NORTH 84°06'43" WEST 43.00 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; PAGE 1 (PARKING EASEMENT CONTINUED) THENCE NORTHERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 1504.72 FEET, A CENTRAL ANGLE OF 01°05'52", THE CENTER OF WHICH BEARS NORTH 83°43'52" WEST, AN ARC DISTANCE OF 28.83 FEET TO A POINT OF COMPOUND CURVATURE; THENCE NORTHERLY AND WESTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 93°47'54, THE CENTER OF WHICH BEARS NORTH 84°49'45" WEST, AN ARC DISTANCE OF 40.93 FEET TO THE WEST MARGIN OF CHRISTENSEN ROAD; THENCE NORTH 00°45'11" WEST ALONG SAID WEST MARGIN 152.13 FEET TO THE BEGINNING OF A TANGENT CURVE TO THE LEFT; THENCE CONTINUING NORTH ALONG SAID WEST MARGIN ON A CURVE TO THE LEFT, HAVING A RADIUS OF 437.50 FEET, A CENTRAL ANGLE OF 08°22'39", THE CENTER OF WHICH BEARS SOUTH 89°14'49" WEST, AN ARC DISTANCE OF 63.97 FEET TO THE TRUE POINT OF BEGINNING. SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. PAGE 2 4 12s) N 0 0 z 30' 30' ANDOVER PARK EAST N 0012'09" W EXHIBIT 1—C VEHICULAR PARKING EASEMENT AREA N - - -231.72'84'00 E - 267.49'0 r -- ---\ t 2. TUKWILA PARKWAY o _;07- .. s N 84'44'00" E ► - -7 R= 50.00' A= 84'56'09" L=74.12' R=437.50' A=08'36'24" L=65.72' T.L. NO. 022300-0040-03 211.59' N 89'47'51" E 1"=50' NOV. 2014 PROJECT NO. 06007 PAGE 1 OF 2 40' TIM HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CLINTON, WA 98236 425.822.7271 EXHIBIT 1—C — CONT'D. VEHICULAR PARKING EASEMENT AREA 231.72' c1 $� O o;a .rn TPOB CURVE TABLE CURVE DELTA LENGTH RADIUS RADIAL BEARING C1 0'13'45" 1.75' 437.50' S 80'38'25" W C2 28'38'13" 17.49' 35.00' N 23'22'13" E C3 73'30'10" 21.74' 16.94' N 8722'15" E C4 72'45'37" 3.17' 2.50' S 13'52'05" W C5 9'37'47" 260.13' 1547.72' S 86.37'42" W C6 1'05'52" 28.83' 1504.72' N 83'43'52" W C7 93'47'54" 40.93' 25.00' N 84'49'45" W C8 8'22'39" 63.97' 437.50' S 8914'49" W LINE TABLE NUM BEARING DISTANCE Li N 84'44'00" E 46.59' L2 N 84'06'43" W 43.00' L3 N 00'45'11" W 152.13' 1"=50' NOV. 2014 PROJECT NO. 06007 C2— T:1f C�\\ c � I I • • 18903 s/STE4E ��%AL LM PAGE 2 OF 2 r w 0 11M HANSON AND ASSOCIATES 8255 CULTUS BAY ROAD CLINTON, WA 98236 425.822.7271 Minnie Dhaliwal From: Bob Giberson Sent: Monday, November 17, 2014 10:38 AM To: Minnie Dhaliwal Subject: RE: Development agreement for 90 Andover Park East Minnie, As promised last week regarding riverbank reforestation in place of a pocket park, I will summarize some key points and possibilities below. Several pending projects are underway that might preclude the quick approval of a Green River planting plan adjacent to 90 Andover Park East along the river. First, the SWIF process will be ongoing through early 2015. Second, The Tukwila 205 Levee Certification effort will not be completed for at least 1 year. Third, the TUC Pedestrian/Bicycle Bridge final design may include habitat mitigation near the bend in the river to the south of 90 Andover Park East. As an expedient option, it appears that there is sufficient contingency in the pocket park cost estimate to allow the developer to contribute $10,000 towards a Green River planting plan. Once a planting plan is approved by the necessary agencies, the developer's funds can be used as a match to other available funds for a complete habitat enhancement planting effort in this vicinity. Bob Giberson, P.E. Public Works Director, City of Tukwila 6300 Southcenter Blvd, Suite 100 Tukwila, WA 98188 (206) 433-0179 (main) (206) 431-2457 (desk) The City of opportunity, the community of choice 1 4/.;) PROPOSED TUKWILA POCKET PARK & PARKING - COST SUMMARY Schematic Cost Estimate ITEM Date: September 4, 2014 QTY. COST TOTAL REMARKS New Concrete Paving Area New Asphalt Paving Area Landscape Area Hardscape Improvements Demolition ($/c.y.) Concrete Walks & Paving ($/s.f.) Asphalt Paving ($/s.f.) Seatwall ($/f.s.f.) Picnic Tables (S/ea.) Bike Rack ($/f.s.f.) Trash Receptacles Life Stations ($/f.s.f.) Subtotal Landscape Improvements 3,400 700 9,875 2,706 $1.95 3,400 $6.50 700 $3.00 165 $200 3 $2,200 1 $650 1 $750 3 $3,500 $5,277 Sawcut & demo. Existing roadway & curbing 22,100 4" rein. Conc. w/scoring and broom finish 2,100 33,000 18" height, c.i.p.concrete wall & raised planter 6,600 6' length 650 750 10,500 Bed Prep. & Fine Grading Soil Prep Evergreen Trees Deciduous Trees Lawn, Plantings, and Irrigation Subtotal 9,875 $0.10 89 $35.00 7 $250.00 6 $400.00 9,875 $4.00 $80,977 $988 All lawn & planting areas 3,111 3" depth - all lawn & planting areas 1,750 6' Min. Ht. 2,400 2" Cal., 12' Min. Ht. 39,500 $47,748 Contingency 10% $12,872 Note: Estimate does not include grading, drainage, or parking Civil Engineering & New Parking Spaces - Right -of -Way $25,000 Landscape & Architectural Fees $13,440 Annual Maintenance $6,000 (Annual fee subject to inflation over term of agreement Total $186,037 The total amount includes $10,000 payment for the Green/Duwamish River restoration/planting projects or to implement the goals and policies of the City's Comprehensive Plan related to Urban Forestry. Sources: Jeffrey B. Glander & Associates (Landscape Architecture & Site Planning) Civil Engineer Tri -States Development. LLC. Dale Sweeney, Architect 117 Land Value estimate for parking and drive aisle area of Christensen Road Approximate land area including right-of-way (s.f.) 17,103 Developer's contracted land cost per square foot $25.00 Land acquisition cost (If 100% use) $427,575 Proposed pocket park & parking cost estimate $186,037 Pocket park & parking as percentage of total cost 43.5% * Ongoing maintenance and striping costs after initial year go on indefinitely 118 Potential Shoreline Restoration Area Shoreline restoration area = 73,800 square feet (1.69 acres) CIRCULAR SEATtNG AREA PICNIC TABLE TUK POCKET PARK Duwamish Shoreline Restoration Budget Estimate* (Assume purchase all materials) Item Unit Unit rate Quantity Extended cost Comments Labor/professional services Contracted/purchased Steep banks: hand removal, ivy, blackberries, spraying knotweed, applying jute matting, planting day $1,580.00 10 $15,800.00 Earth Corps Rates Blackberry removal with machine (flat areas) day $1,500.00 2 $2,250.00 contracted labor Grubbing roots and planting volunteer labor Subtotal labor $18,050.00 Materials jute matting for steep slopes roll 900 sq ft $70.00 17 $1,190.00 cardboard sq ft $0.25 15000 $3,750.00 plants - trees (top of bank) 1 gal $4.50 67 $300.00 plants - shrubs (top of bank) 1 gal $4.50 600 $2,700.00 plants - groundcover/forbs (top of bank) 1 gal $4.50 3750 $16,875.00 willow/dogwood stakes (on banks) each $1.50 1600 $2,400.00 mulch, wood chips 3" depth cy $26.00 140 $3,640.00 wood chip delivery each $170.00 7 $1,190.00 weekly watering (hand watering with water truck) cf $0.05 300000 $15,000.00 assumes 1 inch per week, for 10 weeks, no labor cost signage (4x4 post, sign fabrication) Is $215.00 1 $215.00 assumes Parks Dept installation Subtotal materials $47,260.00 Total $65,310.00 Price/sq ft Not accurate number, as some costs are not divisible, such as delivery, $2.18 mobilization Assumes 600 foot frontage and 50 ft deep shoreline (total of 30,000 sq ft). Assume half of sq footage is on steep slope 90 Andover Park East Developer Agreement Staff Pocket Park 2006 1st developer Benefits Public Public places to gather Trail access Work out stations Lunch spot Residents use trail to area Local business will use Hotel users will use and access trail North end of TUC park system Developer builds Developer maintains park and asphalt Benefits Developer Immediate access to hotel patron Access trail to Fort Dent Park Parking needs met Support river quality Codiga, Duwamish Gardens, Chinook Wind FGL, Green River Trail (Christianson Rd.) Commit to tree plan Commit to enhance river trees with other Projects along the river Councilmember Trees for shade for water temperature/quality Last month's SWIF meeting Fish have a cooler river that enhances survival rate Trees in lieu of pocket park provides No direct benefits to the developer Left with cul-de-sac Parking needs met Solutions: 1 Council approves the exchange of ROW (parking) for a public benefit a. Determine what the public benefit is later b. Use $10,000 of value engineering for trees in the immediate area c. Use $150,000 for a river enhancement program and no mini park 2 Council does NOT approve the exchange of ROW (parking) for a public benefit a. Development doesn't happen b. Development is reduced c. Development is stalled Exhibit 2 ANDOVER PARK EAST PROPERTY LINE CUL DE SAC INTO LANDSCAPING EXISTING CURB LINE i_ TUKWILA PARKW A Y LS w PATIO HOTEL 5 -STORY 59,170 5Q. FT. 92 UNITS LANDSCAPING & TYPICAL PARKING FACE 9'X19' CICICICICICI 04 LANDSCAPING ARG N Ir / a 53 ONSITE PARKING SPACES 41 OFF23ITE PAR NG OF SI AC CHRISTENSEN ROAD C C C A SUFI CIC c I cic1c1c1c1c1cicicici SITE PLAN -OPTION 2 1 • — 50-0• 53 ONSITE PARKING SPACES N 45 OFFSITE PARKING SPACES 98 TOTAL NNE sift ACES FROM 24 SPACES TO 27 RE -STRIPE EXISTING FOR INCREASED PARKING HOLIDAY INN XPRESS TULWILA, WA TUKWILA TSD L.L.C. Date .5weeney ARCHITECT 1/22/15 571E 143rd Place S.E. 8allawe, WA 98006 425260-8969 Cost Estimate for Hypothetical Tree Replacement Assume 10 trees ( mix of native trees 6-8 ft tall, B&B) in 500 sq foot planting area Labor/professional services Unit Cost No. Units Extended Cost Mobilization/transport of materials hour $65.00 1.0 $65.00 Hand removal, invasives hour $60.00 0.5 $30.00 Incorporating compost hour $60.00 0.5 $30.00 Planting hour $60.00 1.0 $60.00 mulching hour $60.00 0.5 $30.00 Subtotal labor $215.00 Materials compost, 3 inch depth cy $25.00 4 $100.00 trees 1 gallon $6.00 10 $60.00 mulch, bark 3" deep * cy $33.00 4 $132.00 $0.00 Subtotal materials $292.00 Total $507.00 per tree SW. H:/SMP/cost estimate shoreline buffer restoration $50.70 11/17/2014 Cost Estimate for Hypothetical Tree Replacement Assume 10 trees ( mix of native trees 6-8 ft tall, B&B) in 500 sq foot planting area Labor/professional services Unit Cost No. Units Extended Cost Mobilization/transport of materials hour $65.00 1.0 $65.00 Hand removal, invasives hour $60.00 0.5 $30.00 Incorporating compost hour $60.00 0.5 $30.00 Planting hour $60.00 2.0 $120.00 mulching hour $60.00 1.0 $60.00 Subtotal labor $305.00 Materials compost, 3 inch depth cy $25.00 4 $100.00 trees (mix of B&B native species 6-8 ft tall, wholesale) 2 inch caliper $45.00 10 $450.00 mulch, bark 3" deep * cy $33.00 4 $132.00 $0.00 Subtotal materials $682.00 Total $987.00 per tree SW. H:/SMP/cost estimate shoreline buffer restoration $98.70 11/18/2014 To: Jim Haggerton, De'Sean Quinn From: Dennis Robertson Date: November 18, 2014 Subject: Proposed pocket park as mitigation/payment for a proposed hotel at 90 Andover Park . Issue A pocket park proposal as part of the developer mitigation/payment for use of a portion of City owned Christianson Road for hotel parking has violated several of the processes normally followed in City capital projects. Background The Planning Department brought the proposed project description, proposed ordinance, and developer agreement to CAP on November 12th, 2014. This is the first time the project had been discussed with the committee. I questioned the value of the pocket park and proposed an alternative use for the hotel developer's money, that of providing shade trees for the Green River Trail and river fish habitat. The Committee was told there was not time to do staff work on such alternatives and bring the item back to committee. It was stated that the project must go to November 24th COW and the subsequent December 1St Regular Meeting in order to meet developer deadlines. The project concept involved using a portion of the existing Christianson Trail public parking area for part of the hotel's parking requirement. This concept has been in work since 2006 according to a Park's and Recreation Director's memo. The CAP committee voted to support the alternative I proposed rather than the pocket park (using the money the pocket park would cost to plant shade trees in the river buffer area adjacent to the proposed hotel). However, if staff was unable to work out the necessary details for the tree planting the committee would support the proposed pocket park. Post CAP Discussion Staff arranged for a working meeting of myself, Planning Director and staff, Parks Director and staff, and Public Works Director on Friday, November 18. I explained my proposal for using the developer's payment to plant river shade trees and added that a pocket park was not needed in this location. Also, since a portion of the Christianson Road cul de sac to be used for the pocket park is within the 125 foot river buffer the Tukwila SMP must be considered. I explained that Section 6.12 Shoreline Use Preferences of the SMP states planting trees in a river buffer area is prioritized as a higher valued activity than providing public access or public recreation. I also shared that if trees could not be planted in 2015 because of other planned 2015 activities (205 levee certification as an example) then the developer's money for the pocket park (approximately $150,000.) could be set aside until the trees could be planted. The Parks and Recreation Director said that I was wrong. That the proposed pocket park met a long known need for recreation in this particular location and would serve citizens better than my proposed tree planting. Discussion We were both wrong, for two reasons. First, bringing the proposal to CAP with no time for further committee discussion or work violates the normal working relationship between Council and Administration. Normally, allowing items brought to a committee with no time for subsequent committee work and interaction with staff has been reserved for 'emergency items.' This project has been in work since 2006. No information was presented at the November 12th CAP meeting that justified an 'emergency' status. To move it directly forward in the manner that it was invalidates the committee process. Second, having the developer build the proposed pocket park on City property and provide ongoing maintenance is compensation for allowing the developer to use City owned Christianson Road for hotel parking. That is why there is a proposed developer's agreement and ordinance. The proposed pocket park is worth approximately $150,000. In addition, there is a multi-year requirement to provide maintenance for the pocket park and parking spots worth $6,000 per year. The combined value of the development and maintenance should logically be considered revenue for the City's General Fund. The proposed $150,000 expenditure is a significant amount and justifies the pocket park being in the City's CIP. However, there is no such pocket park in the 2013-2014 or 2015-2016 CIP. Therefore, my conclusion that both myself and the Parks and Recreation Director erred is based upon: 1. We participated in a CAP committee process that not only did not allow us time to fully discuss or work out all the alternatives in the proposal and it violated the normal working arrangement between the Administration and Council committees. 2. We both proposed projects (pocket park and tree planting) that should be considered capital projects and thus go through the normal CIP vetting process. If the two proposed projects (pocket park and tree planting) were to go through the normal process the pro's and con's of these projects versus other uses of the capital dollars would be fully aired and discussed. For example: The Parks and Recreation Director in a November 17 memo to Minnie Dhallwal justified the proposed pocket park stating: (a) "The Christianson Road pocket park provides an area on the north end of the TUC where there currently is not a recreational opportunity for the community." If the proposed pocket park had went through the normal CIP vetting process I would have argued that the Green River Trail with a grass area containing picnic tables and garbage receptacles, etc. is less than 50 feet from the proposed pocket park location. The Nelson Landing Park with picnic tables is 200 feet from the proposed pocket park. Finally, the larger Bicentennial Park is only a third of a mile down the Green River Trail from the proposed pocket park. Clearly, a pocket park is not needed in this location. (b) The Parks and Recreation Director also stated in the memo, "The area is easily accessed from local businesses and residential areas near City Hall." However, the City Hall residential area is on the other side of I405 and is approximately a third of a mile from the proposed pocket park. But, the City Hall location is directly across 65th Avenue from and very close to Tukwila Park which has a gazebo, walking trails, picnic tables and tennis courts. Finally, there is Ikawa (pocket) Park on City Hall property. The point here is the relative priorities of all proposals, including the pocket park one, need to be vetted against other projects competing for scarce capital dollars. As an example, the 53rd Avenue Residential Street project could definitely use the $150,000 the hotel developer is willing to pay to utilize Christianson Road for hotel parking. In conclusion, I believe that this project needs to be reviewed by the Mayor and our Council President to understand why it did not follow our normal process for Council committees and was not transparently included in our recent CIP discussions. Dennis Robertson Tukwila Council Member City of Tukwila Jim Haggerton, Mayor Parks & Recreation Department Rick Still, Director TO: Minnie Dhaliwal, Planning Supervisor FROMRick Still, Parks and Recreation Director DATE: November 17, 2014 SUBJECT: Development Agreement for 90 Andover Park East ISSUE Development and maintenance of a Pocket Park in lieu of using the park parking spaces for the 90 Andover Park East development. BACKGROUND In 2006, staff met with a developer who introduced the concept of using the Christianson Trail parking area as part of their development located between Christianson Road and Andover Park East. Through discussions with this developer, staff hired a landscape architect to initiate a site study and prepare a conceptual design for a pocket park at the turnaround at the north end of Christianson Road. This conceptual design was utilized with several developers throughout the past seven years. A system of pocket parks in the Tukwila Urban Center (TUC) is vital to meeting the recreation and social needs of the community because purchasing larger parcels in this area are cost prohibitive at this time. The few parks currently located in TUC are heavily used by patrons for spending time away from offices on breaks, gaining access to the trail system, meeting people to gather and socialize, for exercise at or to visit as a part of their exercise routine, for access while walking to the train, and to enjoy nature while in an urban setting. The Christianson Road pocket park provides an area on the north end of the TUC where there currently is not a recreational opportunity for the community. The area is easily accessed from local businesses and residential areas near City Hall. Hotel development in this area increases the need for a park since many of the people staying in hotels will be using the trail to access Starfire Sports at Fort Dent Park. The park will help contribute to a more connected community and build a sense of community pride. DISCUSSION Staff has looked at ways to accommodate tree planting along the Green River while maintaining construction of the pocket park. Staff believes that with value engineering of the pocket park the developer could reduce the construction cost to allow for approximately $10,000 tree plantings along the Green River Trail at Christianson Road. RECOMMENDATION Staff recommends allowing the development agreement to continue as it currently is written with the understanding that measures will be taken to make adjustments to the pocket park design to accommodate funding towards tree planting along the Green River. GOOD HEALTHY FUN 12424 42nd Ave. S. • Tukwila, Washington 98168 • Phone: 206-768-2822 • Fax: 206-768-0524 GOOD HEALTHY FUN 12424 42nd Ave. S. • Tukwila, Washington 98168 • Phone: 206-768-2822 • Fax: 206-768-0524 Minnie Dhaliwal From: Laurel Humphrey Sent: Thursday, November 13, 2014 2:36 PM To: Minnie Dhaliwal; Jack Pace Subject: review minutes Hello, please let me know if you have time to review this portion of last night's meeting summary... this is a time crunch so if you can't get to it today let me know. Laurel A. Ordinance: Development Agreement for Proposed Hotel at 90 Andover Park East Staff is seeking Council approval of an ordinance to approve a development agreement with Tukwila TSD, LLC for the use of parking in a public right-of-way in exchange for the construction of a public pocket park. Tukwila TSD LLC proposes to build a new five -story hotel at 90 Andover Park East with approximately 90 guest rooms. A site plan demonstrates that the 90 required parking stalls cannot be accommodated, so the developer proposes a shared parking and drive aisle area in the right-of-way of Christenson Road in exchange for developing a public pocket park in the cul-de-sac area nearby. The proposed pocket park will be built and maintained by the developer who will also provide public access through the property and construct a pedestrian connection to the park and the trail. The initial term of the agreement is for 50 years with an option to extend for an additional 30. The agreement includes several termination clauses that protect the City in the event of failure to obtain permits or complete construction, failure to maintain the park and/or parking areas, property redevelopment or use change, and WSDOT actions to widen 1-405. Councilmember Robertson noted that the proposed pocket park is in an isolated area that is already close to an existing natural amenity - the river and trail. He proposed an alternative that would allocate the funds specified in the development agreement toward a tree planting project in the area of the river bank across Christensen Road. Tables and benches could be added as well. Planting trees is a key component of regional efforts to restore aquatic ecosystems and salmon habitat in the Green-Duwamish watershed. In this proposal, the developer would provide the money and the City could assume responsibility for the project, either alone or in concert with a group already doing this kind of restoration /work. Committee members and staff discussed the original and the alternative proposals. The Committee agreed they do not want to delay the agreement or add costs for the developer. They support the alternative if those conditions are met, and if they are not, they will support the original pocket park. Staff suggested that if there is majority Council direction, the agreement could be amended and funds could be collected prior to the issuance of building permits. The Committee agreed to forward the item for Committee of the Whole discussion to include the original proposal and additional cost and design estimates relating to the alternative proposal. The Committee of the Whole will select the preferred option. FORWARD TO NOVEMBER 24, 2014 COMMITTEE OF THE WHOLE WITH ADDITIONAL OPTION AS DISCUSSED. Laurel Humphrey Council Analyst I City of Tukwila 620o Southcenter Blvd I Tukwila, WA 98188 Phone: 206.433.8993 http://tulcwilawa.gov The city of opportunity, the community of choice. 1 print your name, address, and ZIP+4 in this box • City of Tukwila Dept. Community Development 6300 Southcenter Blvd, Suite 100 Tukwila, WA 98188 SES COMPLETE THIS SECTION ■ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. • Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Department of Ecology NW Regional Office 3190 - 160th Ave. SE Bellevue, WA 98008 COM .=LETE THIS SECTION ON DELIVERY Altfr B. Recei4c0( D. Is delivery adds If YES, enter Agent ddresseE C. Dat f‘ eliver) es differentfronfEtje 1? 0 Yes Ty address bel�J 0 No ykijc lR,d' 3. Service Type Certified Mall 0 Express. Mail ❑ Registered g[Return Receipt for MerchandisE ❑ Insured Mail 0 C.O.D. 4. Restricted Delivery? (Extra Fee) 0 Yes Number 7009 2250 0002 2865 7557 r from service label) DC Cnrr., 4Q11 Cehr. ien. ,rinA irtnerte nes a. 4 GA ,1r City of Tukwila Community Affairs & Parks Committee O Joe Duffle, Chair O Dennis Robertson O Verna Seal otscs AoV °6' 0 A ' A Distribution: J. Duffle D. Robertson V. Seal D. Quinn Mayor Haggerton D. Cline C. O'Flaherty R. Turpin L. Humphrey N. Gierloff N. Robinson M. Dhaliwal D. Speck WEDNESDAY, NOVEMBER 12, 2014 — 5:30 PM HAZELNUT CONFERENCE Room (formerly known as CR #3) at east entrance of City Hall Item Recommended Action Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. An Interlocal Agreement with the City of Seattle for a. Forward to 11/17 Consent Pg.1 hearing examiner services. Agenda. Nora Gierloff, Deputy Community Development Director b. A resolution approving the Teens for Tukwila b. Forward to 11/24 C.O.W. Pg.7 charter. and 12/1 Regular Mtg. Nate Robinson, Recreation Program Specialist, Teens c. An ordinance approving a Development Agreement c. Forward to 11/24 C.O.W. Pg.13 for the proposed hotel at 90 Andover Park East. and 12/1 Regular Mtg. Minnie Dhaliwal, Planning Supervisor d. An ordinance establishing an exemption from d. Forward to 11/24 C.O.W. Pg.41 real property taxation for development of qualified multi -family housing in a targeted area in the and 12/1 Regular Mtg. Tukwila Urban Center. Derek Speck, Economic Development Administrator 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Tuesday, November 25, 2014 ft) The City of Tukwila strives to accommodate those with disabilities. Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk©TukwilaWA.gov) for assistance. City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Community Affairs and P ks FROM: Jack Pace, DCD Director I BY: Nora Gierloff, Deputy D Director DATE: November 5, 2014 SUBJECT: Hearing Examiner Interlocal Agreement ISSUE The current Interlocal Agreement with the City of Seattle for Hearing Examiner services runs through December 31, 2016. The agreement needs to be modified to reflect an increase in their hourly rates starting in 2015. BACKGROUND Tukwila has contracted with the City of Seattle for Hearing Examiner services since 2005. DISCUSSION The City of Seattle has performed these services for Tukwila in an efficient and cost effective manner for many years. There is no increase in cost for the remainder of 2014 though Seattle will be raising its hourly rate from $105 to $115 in 2015. FINANCIAL IMPACT For land use cases the cost of the Hearing Examiner is passed through to the applicant. Other Departments budget for these costs. RECOMMENDATION The Committee is being asked to forward this agreement to the Consent Agenda at the November 17, 2014 regular meeting for approval. ATTACHMENT A. Draft Interlocal Agreement 1 1 INTERLOCAL AGREEMENT BETWEEN THE CITY OF TUKWILA AND THE CITY OF SEATTLE FOR HEARING EXAMINER SERVICES This INTERLOCAL AGREEMENT ("Agreement") is made and entered into pursuant to the Interlocal Cooperation Act, Chapter 39.34 of the Revised Code of Washington, by and between the City of Tukwila, a Washington municipal corporation ("Tukwila"), and the City of Seattle, a Washington municipal corporation acting through its Office of Hearing Examiner ("Seattle"), for Tukwila's utilization of Seattle's hearing examiner services. WHEREAS, Tukwila is in need of the services of a hearing examiner; and WHEREAS, Seattle has the experience, personnel, and willingness to provide hearing examiner services, NOW, THEREFORE, in consideration of the terms and conditions set forth herein, it is agreed by and between Tukwila and Seattle as follows: 1. Statement of Purpose. The purpose of this Agreement is for Seattle to provide hearing examiner services to Tukwila. 2. Scope of Services. Seattle shall provide hearing examiner services and accompanying support services for Tukwila as required by Tukwila. 3. Compensation. Tukwila shall pay Seattle $105.00 per hour for Seattle's hearing examiner services through December 31, 2014 and $115.00 per hour for hearing examiner services rendered during the remaining term of this agreement. Tukwila shall pay Seattle $30.00 per hour for any support services requested by Tukwila. Seattle shall be reimbursed for any direct expenses advanced on Tukwila's behalf including mailing and copying charges. If Seattle is required to provide any copying services in the performance of this Agreement, Tukwila shall pay Seattle $0.15 per page for the copies. Drug asset forfeiture hearings shall have a one-hour minimum hearing examiner service charge unless Tukwila notifies Seattle of the hearing cancellation at least 24 hours prior to the scheduled hearing time. Seattle shall not bill for travel time between Seattle and Tukwila. Tukwila will pay a $20.00 flat fee for round trip travel to Tukwila, together with mileage at the current government reimbursement rate. Each individual providing hearing examiner services under this Agreement shall separately present to Tukwila a monthly statement detailing the mileage and number of trips to Tukwila for which the individual is eligible for reimbursement. Each individual providing hearing examiner services under this Agreement shall be paid directly and monthly within thirty (30) days after Tukwila receives the individual's detailed request ATTACHMENT A 3 for reimbursement. Seattle retains the right to increase its hourly rate in 2015, which will require amendment of this Agreement. 4. Method of Payment. Seattle shall bill Tukwila on a monthly basis for work performed. Within thirty 30 days of receiving Seattle's invoice, Tukwila shall issue a check to Seattle for services rendered. 5. Scheduling Services. Seattle's hearing examiner services shall be scheduled on a case by case basis. Tukwila shall contact Seattle to schedule appropriate dates and times. 6. Hearing Location. Hearings shall be held at Tukwila City Hall. Seattle shall provide the necessary recording equipment in order to record the hearings. The hearings may be held in the day or evening as required by Tukwila. 7. Hearing Decision. Hearings shall be conducted in compliance with the Tukwila Municipal Code. Upon conclusion of the hearing, Seattle shall issue a written decision. This decision shall make findings of fact and conclusions of law based on the Tukwila Municipal Code. The written decision shall be issued within fifteen (15) business days of the hearing unless unusual circumstances exist. 8. Duration. This Agreement shall take effect upon execution of the Agreementby both parties, and the appointment of the hearing examiner by the Mayor of Tukwila and the approval of the Tukwila City Council. This Agreement shall remain in effect through December 31, 2016 and shall be subject to renewal by mutual agreement. 9. Termination. Either party may terminate this Agreement by giving thirty (30) days written notice of termination to the other party. 10. Indemnification and Hold Harmless. Seattle shall defend, indemnify, and hold harmless Tukwila and its officers, agents, and employees from any and all claims, actions, suits, liability, loss, costs, expenses, and damages of any nature whatsoever, by reason or arising out of any negligent action or omission of Seattle, its officers, agents and employees in relation to the Agreement. Likewise, Tukwila shall defend, indemnify, and hold harmless Seattle and its officers, agents, and employees from any and all claims, actions,. suits, liability, loss, costs, expenses, and damages of any nature whatsoever, by reason or arising out of any negligent action or omission of Tukwila, its officers, agents, and employees in relation to this Agreement. Except as provided below, in the event the parties are determined jointly liable to any claimant or litigant, each party shall bear responsibility for its own defense, including the payment of all attorney fees and costs associated therewith, and shall satisfy any judgment or settlement to the extent fault is allocated to such party.. Seattle does not assume liability or responsibility for, or in any way release Tukwila from, any liability or responsibility that arises, in whole or in part, from the existence or effect of Tukwila's ordinances, code, policies, rules, or regulations. If any cause, claim, or action of 4 any kind is commenced in which the enforceability and/or validity of any Tukwila ordinance, code, policy, or regulation, including its constitutionality, is at issue, Tukwila shall defend the same at its sole cost and expense, and if judgment is entered, or damages are awarded against Seattle, or against Seattle and Tukwila jointly, Tukwila shall promptly satisfy the same. 11. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of the Agreement, the parties specifically understand and agree that venue shall be exclusively in King County, Washington. 12. Administrator. No administrator is needed for this Agreement. 13. Records Retention and Transference. Seattle may retain records up to one year from the date of final disposition after which Seattle shall transfer the records to Tukwila. 14. Notices. All notices required or permitted pursuant to this Agreement shall be addressed as follows: City of Seattle Office of Hearing Examiner PO Box 94729 Seattle WA 98124 City of Tukwila Office of the City Clerk 6200 Southcenter Blvd Tukwila WA 98188 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed. CITY OF TUKWILA Jim Haggerton, Mayor Dated: Approved as to Form Tukwila City Attorney CITY OF SEATTLE OFFICE OF HEARING EXAMINER Sue A. Tanner, Hearing Examiner Dated: 9 / l 9 / / `f 5 TO: City of Tukwila Jim Haggerfon, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs & Parks FROM: Rick Still, Parks & Recreation Director BY: Tracy Gallaway, Parks & Recreation Superintendent Nate Robinson, Teen Programs Specialist DATE: November 5, 2014 SUBJECT: Teens for Tukwila Charter ISSUE Establishing a partnership between the Tukwila City Council and the Teens for Tukwila youth group. BACKGROUND Teens for Tukwila are a group of high school students, primarily from Foster High School, who want to make a positive impact on the Tukwila community. They are learning to become leaders and a partnership with City Council is something the group desires. Teens for Tukwila have established themselves as a group of teens making a positive impact in the Tukwila community. The group has completed multiple community service projects in Tukwila and around the region. Local projects include a clean-up at Cascade View Park, yard work for a Tukwila senior citizen, homework help and participation in the after school program at Showalter Middle School, and serving Tent City residents when they were in Tukwila. The group has established relationships with State Representative Steve Bergquist, Representative Zach Hudgins, and Senator Bob Hasegawa through participation in the annual Youth Action Day event held at the Capital Campus in Olympia. The group has met with multiple City Council members and has given two "year in review" presentations at City Council meetings. DISCUSSION The teen members created the Charter that sets forth the guidelines of a successful partnership with Teens for Tukwila could look like for their involvement in providing a teen voice and perspective on community/teen related topics. RECOMMENDATION It is the recommendation of the Parks & Recreation Department that the Council consider this item at the November 24, 2014 Committee of the Whole Meeting and subsequent December 1, 2014 Regular Meeting. ATTACHMENTS Draft Resolution Teens for Tukwila Charter 7 1 RAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AFFIRMING ITS COMMITMENT TO YOUTH ENGAGEMENT AND APPROVING THE TEENS FOR TUKWILA CHARTER. WHEREAS, young people are valued members of the community and have much to offer as valuable participants in the work of local government; and WHEREAS, youth engagement is supported by the City of Tukwila's Strategic Plan, Goal 2, "A Solid Foundation for all Tukwila Residents;" and WHEREAS, City leaders desire to foster meaningful opportunities for youth to make a difference in those areas that are important to them; and WHEREAS, Tukwila's youth are uniquely positioned to offer valuable insight into the creation of youth -friendly City processes and culture; and WHEREAS, Teens for Tukwila is an established and effective youth leadership development group that provides its members with opportunities for learning, advocacy and public service; and WHEREAS, the City Council desires to establish a partnership with Teens for Tukwila that is founded upon mutual respect and a shared commitment to community service; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: The City Council is dedicated to fostering civic engagement and youth leadership in Tukwila and approves the Teens for Tukwila Charter as a framework for effective collaboration. W:\Word Processing\Resolutions\Teens for Tukwila Charter 11-4-14 LH:bjs Page 1 of 2 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2014. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk De'Sean Quinn, Council President APPROVED AS TO. FORM BY: Rachel Turpin, City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment: Teens for Tukwila — City Council Charter, October 2014 W:\Word Processing\Resdutions\Teens for Tukwila Charter 11-4-14 LH:bjs 10 Page 2 of 2 r TUKWILA. PARKS &. RECREATION Teens for Tukwila City Council Charter October 2014 Teens for Tukwila is a group of Tukwila residents and high school students established through the Tukwila Parks and Recreation Department. Teens for Tukwila's mission is to strengthen our community. Teens for Tukwila shall: 1. Meet annually with Washington State elected officials at Youth Action Day. 2. Annually give a Year in Review presentation to the City of Tukwila City Council. 3. Participate in community, private, and global projects and partnerships. 4. Perform functions as may be required from partnerships. I.e. World Vision—Youth Em- powerment Program, Imagine Scholars, and future partners. 5. Be open to Tukwila teens (High School age) who have a passion for their community. 6. Consist of equally ranked members. 7. Determine the content, time, and place of its meetings. 8. Report to the City Council bi-monthly (during the school year) on its activities and recom- mendations via email and/or in person. 9. Review and change this charter when needed. 10. Bring the concerns of the community to the City Council's attention 11. Teens for Tukwila would like the City Council to create trainings and/or workshops for the group to attend in order to gain knowledge of the role of City Council. 12. Have a trial period, during the 2014-2015 school year, before a decision is made to partner with the City Council long term. 13. Remain known as Teens for Tukwila and represent itself, and make decisions regarding the group. 14. Work hand-in-hand with the City Council in service to the community. mimmor Tukwila Community Center 12424 - 42nd Ave. S. Tukwila, WA 206-768-2TCC www.tukwilawa.gov 11 TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs and Parks Committee FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: November 4, 2014 SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the proposed Development Agreement for the proposed hotel development at 90 Andover Park East that would allow the shared use of parking in the right-of- way of Christensen Road in exchange for the construction of a public pocket park? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that the required number of parking stalls cannot be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of-way of Christensen Road in exchange for developing a public pocket park in the cul- de sac area of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. DISCUSSION The proposal includes: • Shared use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East. The developer shall add 18 new parking spaces within the undeveloped right-of-way area adjacent to the hotel site and reconfigure the existing spaces to increase the number of parking spaces in the right-of-way. A total of 45 parking spaces would be available within the right-of-way; out of which 41 will be shared between the hotel use and members of the public with four spaces exclusively reserved for non -hotel users including those who want to access the Green River Trail. • In exchange for the shared parking the developer shall: a) Develop and maintain a public pocket park within the existing cul-de-sac area. b) Maintain the park and the parking area for the term of the agreement. c) Provide public access through the subject property to compensate for the cul-de-sac closure. d) Construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and the Green River Trail. 13 INFORMATIONAL MEMO Page 2 Initial term of 50 years with an option to extend for 30 additional years. • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations for the park and the parking areas; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. This proposal furthers the following goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan: • The Southcenter Subarea Plan envisions that parking will be accommodated by a combination of off- and on -street parking spaces/lots and shared parking facilities within the Transit Oriented Development (TOD) Neighborhood. • The Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...." • The implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan includes, "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships". • Uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan. The pocket park and shared parking are considered mutually beneficial to the City and the developer for the following reasons: • There are currently only 27 parking spaces in the right of -way area and the proposal will provide 45 parking spaces. • Hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. • The pocket park will complement the Green River Trail. • The proposal facilitates higher intensity development that is envisioned by the Comprehensive Plan for this area. • The cost of construction and maintenance of the pocket park and the parking spaces will be paid for by the developer in exchange for the shared use of the parking. • Members of the public and emergency vehicles will have access through the hotel parking lot. 14 INFORMATIONAL MEMO Page 3 FINANCIAL IMPACT There is no financial impact to the City as all costs associated with the development and maintenance of the pocket park and additional parking shall be borne by the developer. The developer's cost estimate for the development of the pocket park and additional parking area (Exhibit C) is $186,037. Also, the annual maintenance costs are anticipated to be $6000 per year and subject to inflation over the term of the agreement. The land value of the right -of -area with the shared parking is $427,575 ($25 per square foot for 17,103 square feet total area). RECOMMENDATION The Council is being asked to approve the development agreement and hold a public hearing on this item at the November 24, 2014, Committee of the Whole meeting and subsequent December 1, 2014, Regular Meeting. ATTACHMENTS Vicinity Map Draft Ordinance Exhibit A- Development Agreement Exhibit 1- Legal Description Exhibit 2 -Conceptual Site Plan Exhibit 3 -Conceptual Site Plan of the Pocket Park; list of park amenities with construction cost estimates; and land value estimates. 15 VICINITY MAP FT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, APPROVING AND AUTHORIZING THE DEVELOPMENT AGREEMENT WITH TUKWILA TSD, LLC, FOR THE SHARED USE OF PARKING IN THE PUBLIC RIGHT-OF-WAY OF CHRISTENSEN ROAD AND THE DEVELOPMENT OF A PUBLIC POCKET PARK AT THE NORTH END OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, RCW 36.706.170, 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, Tukwila TSD, LLC, desires to build a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, Tukwila TSD, LLC, proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, Tukwila TSD, LLC, also proposes to develop and maintain a pocket park within the cul-de-sac area of Christensen Road; and WHEREAS, the City of Tukwila and Tukwila TSD, LLC, wish to enter into a Development Agreement for the shared use of parking in the public right-of-way of Christensen Road and the development of a public pocket park at the north end of Christensen Road, as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A; and WHEREAS, as required pursuant to Tukwila Municipal Code Section 18.86.050, a public hearing was conducted on the 24th day of November 2014 to take public testimony regarding this Development Agreement, as proposed; and W: Word Processing\Ordinances\Public pocket park at 90 APE DA 11-3-14 MD:bjs Page 1 of 2 19 WHEREAS, the City Council finds that the terms of this Development Agreement are necessary to achieve public benefits, to respond to changing community needs and to encourage modifications that adequately achieve the purposes of otherwise applicable City standards; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Development Agreement. The Development Agreement by and between the City of Tukwila and Tukwila TSD, LLC, for the use of shared parking in the public right-of-way of Christensen Road and the development of a public pocket park at the north end of Christensen Road, as it relates to the planned development of a hotel located at 90 Andover Park East, a copy of which is attached hereto as Exhibit A, is hereby approved, and the Mayor is authorized and directed to execute said 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 , 2014. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel Turpin, City Attorney Exhibit A — Development Agreement Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing\Ordinances\Public pocket park at 90 APE DA 11-3-14 MD:bjs 20 Page 2 of 2 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND TUKWILA TSD LLC, FOR THE SHARED USE OF PARKING IN THE RIGHT OF WAY OF CHRISTENSEN ROAD AND THE DEVELOPMENT OF A PUBLIC POCKET PARK AT THE NORTH END OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST I. PREAMBLE THIS DEVELOPMENT AGREEMENT is made and entered into this .. day of f T 2014, by and between the City of Tukwila, a noncharter, optional code Washington municipal corporation, hereinafter the "City," and Tukwila TSD LLC, a (corporation, limited partnership, partnership, etc.) organized under the laws of the State of Washington, hereinafter the "Developer." II. RECITALS WHEREAS, the Developer desires to develop a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, one parking space per guest room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District; and WHEREAS, the Developer has submitted a site plan showing the required number of parking stalls for the hotel cannot be accommodated as surface parking on the project site; and WHEREAS, the Developer proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Rd. to meet the parking requirements for the proposed hotel at 90 Andover Park. East; and. WHEREAS, the City of Tukwila is the owner of the Christensen Rd. right-of-way, which includes undeveloped area adjacent to the project's eastern property line, paved street, parking, and cul-de-sac areas; and WHEREAS, the parking area in the right-of-way of Christensen Rd. is currently used by members of the public for access to the Green River Trail, shoreline, and parks areas; and WHEREAS, hotel parking spaces are expected to be used primarily in the evening and nighttime hours; parking spaces for trail, shoreline, and parks access are expected to be used during daylight hours; and WHEREAS, the Developer proposes to develop and maintain a public pocket park within the cul-de-sac area as outlined in Exhibit B in exchange for use of the other right-of-way areas on the east side of the project site for parking; and 21 WHEREAS, the Developer proposes to add parking spaces within the undeveloped right-of- way area adjacent to the hotel site and to reconfigure existing spaces to increase the number of parking spaces that would be shared for hotel use and the public for access to the Green River Trail; and WHEREAS, all parking spaces within the right-of-way area will be shared and at least four spaces will be designated for non -hotel users to ensure access to the Green River Trail for members of the public; and WHEREAS, the Developer proposes to maintain the parking area within the right-of-way as outlined in Exhibit B for the length of this agreement; and WHEREAS, the vision for parking areas within the Transit Oriented Development (TOD) Neighborhood in the Southcenter Subarea Plan is that "parking will be accommodated by a combination of off- and on -street parking spaces/lots" and shared parking facilities. "Such facilities can be shared between public and private uses" (p. 19); and WHEREAS, the Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...."; and WHEREAS, the Developer proposes to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and Green River Trail; and WHEREAS, implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan include "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships; and WHEREAS, a through -way from Andover Park East to Christensen Rd will be constructed as part of the project to replace the emergency vehicle maneuvering function of the cul-de-sac; and WHEREAS, the pocket park will be a City of Tukwila park that will provide mutual benefits to hotel guests and the public; and WHEREAS, uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan and the proposed development furthers this goal; and WHEREAS, the Washington State Legislature has authorized the execution of a development agreement between a local government and a person having ownership or control of real property within its jurisdiction (RCW 36.70B.170(1)); and 2 22 WHEREAS, a development agreement must set forth the development standards and other provisions that shall apply to, govern and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement (RCW 36.70B.170(1)); and WHEREAS, for the purposes of this development agreement, "development standards" includes, but is not limited to, all of the standards listed in RCW 36.70B.170(3); and WHEREAS, a development agreement must be consistent with the applicable development regulations adopted by a local government planning under chapter 36.70A RCW (RCW 36.70B.170(1)); and WHEREAS, TMC Section 18.86.030 explicitly allows for flexibility in development standards applicable to a property developed under a development agreement "to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards"; and WHEREAS, this Development Agreement by and between the City of Tukwila and the Developer (hereinafter the "Development Agreement"), relates to the development known as the 90 Andover Park East Hotel and Pocket Park, which is located at: 90 Andover Park East (hereinafter the "Subject Property"); and WHEREAS, a development agreement must be approved by ordinance or resolution after a public hearing (RCW 36.70B.200); and WHEREAS, a public hearing for this Development Agreement was held on , and the City council approved this Development Agreement by Ordinance on ; and NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows: III. AGREEMENT Section 1. The Project. The Project is the development and use of the Subject Property, consisting of 0.39 acres (approximately17,000 square feet) in the City of Tukwila located at 90 Andover Park East and a portion of Christensen Road right-of-way for a ninety-two (92) room five (5) story hotel, a Pocket Park, and forty-five (45) shared parking spaces on Christensen Road right- of-way, as shown on Exhibit B. Section 2. The Subject Property. The Subject Property and right-of-way are legally described in Exhibit A, attached hereto and incorporated herein by this reference. 3 23 Section 3. Definitions. As used in this Development Agreement, the following terms, phrases and words shall have the meanings and be interpreted as set forth in this Section. a) "Adopting Ordinance" means the Ordinance which approves this Development Agreement, as required by RCW 36.70B.200. b) "Council" means the duly elected legislative body governing the City of Tukwila. c) "Design Guidelines" means the Tukwila Design Manual, as adopted by the City. d) "Director" means the City's Community Development Director. e) "Effective Date" means the effective date of the Adopting Ordinance. f) "Existing Land Use Regulations" means the ordinances adopted by the City Council of Tukwila in effect on the Effective Date, including the adopting ordinances that govern the permitted uses of land, the density and intensity of use, and the design, improvement, construction standards and specifications applicable to the development of the Subject Property, including, but not limited to the Comprehensive Plan, the City's Official Zoning Map and development standards, the Design Manual, the Public Works Standards, SEPA, Concurrency Ordinance, and all other ordinances, codes, rules and regulations of the City establishing subdivision standards, park regulations, building standards. "Existing Land Use Regulation" does not include non -land use regulations, which includes taxes and impact fees. g) "Landowner" is the party who has acquired any portion of the Subject Property from the Developer who, unless otherwise released as provided in this Agreement, shall be subject to the applicable provisions of this Agreement. The "Developer" is identified in Section 5 of this Agreement. h) "Project" means the anticipated development of the Subject Property, as specified in Section 1 and as provided for in all associated permits/approvals, and all incorporated exhibits. i) "Vesting date" means the date a valid and fully complete building permit application for the hotel is submitted to the City of Tukwila. Section 4. Exhibits. Exhibits to this Agreement are as follows: a) Exhibit 1 - legal description of the Subject Property and the right-of-way. b) Exhibit 2 - Conceptual Site Plan c) Exhibit 3 - Conceptual Site Plan of the Pocket Park including a list of park amenities; construction and maintenance cost estimates for the Pocket Park and parking area; and land value estimate for the parking and drive -aisle area of Christensen Road right-of-way. 4 24 Section 5. Parties to Development Agreement. The parties to this Agreement are: a) The "City" is the City of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188. b) The "Developer" or Owner is a private enterprise which owns the Subject Property in fee, and whose principal office is located at 21109 66th Avenue South, Kent, WA 98032. c) The "Landowner." From time to time, as provided in this Agreement, the Developer may sell or otherwise lawfully dispose of a portion of the Subject Property to a Landowner who, unless otherwise released, shall be subject to the applicable provisions of this Agreement related to such portion of the Subject Property. Section 6. Project is a Private Undertaking. It is agreed among the parties that the Project is a private development and that the City has no interest therein except as explicitly outlined in this Agreement and as authorized in the exercise of its governmental functions. Section 7. Effective Date and Term. This Agreement shall commence upon the effective date of the Adopting Ordinance approving this Agreement, and shall continue in force for a period of 50 years, with the option to extend the Agreement an additional 30 years, unless extended or terminated as provided herein. Following the expiration of the term or extension thereof, or if sooner terminated, this Agreement shall have no force and effect, subject however, to post -termination obligations of the Developer or Landowner. Section 8. Terms. A. Design • The Project at 90 Andover Park East shall be allowed non-exclusive use rights for the parking spaces and drive aisle area of Christensen Rd (as depicted in Exhibit B) to meet minimum parking requirements for the development. This Agreement shall not preclude the City from entering into additional agreements regarding use of this area by other private parties. The Project will be subject to the development regulations in effect at the time of complete permit application submittals. • The site plan attached as Exhibit B is included with this Agreement for reference only, and has not yet been approved as of the date of execution of this Agreement. The site plan shall be subject to modifications during review of the required land use permits. • As a result of the cul-de-sac closure for use as the pocket park, public access through 90 Andover Park East is hereby allowed and provided for. • The Developer shall construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the proposed pocket park and the Green River Trail. 5 25 • All shared parking stalls will be constructed and maintained to Public Works Infrastructure Design and Construction Standards. • The detailed park design meeting the requirements for approval shall be approved by the Director of the City of Tukwila Parks and Recreation Department as part of the building permit approval process. The Conceptual Plan (Exhibit C) shall be revised to address the following items: a) Specific locations of the trash receptacles and the three outdoor exercise pieces shall be noted. b) A short pathway connecting the trails/walkways shall be included. c) Specifications and details of the monument wall and the outdoor exercise equipment shall be preapproved by the Parks Department. B. Construction • The cost of permits and plans required for construction of the park and parking area shall be borne by the Developer and submitted as part of the permits for the hotel. The pocket park must receive final approval by all required City departments prior to issuance of the Certificate of Occupancy for the hotel. • The Developer is responsible to provide any electrical service that may be necessary for the pocket park. C. Maintenance • The pocket park and the parking area shall be subject to inspections every five years. • Developer is solely responsible for the cost and maintenance of the pocket park and the parking spaces. New striping of the parking spaces shall be completed every three years. • A detailed maintenance plan for the pocket park must be submitted and preapproved by the Parks and Recreation Department before acceptance. D. Operations • A total of 92 parking spaces are required for the 92 -room hotel as proposed. The site plan in Exhibit B includes 98 parking spaces. All parking spaces within the right-of-way of Christensen Road shall be for the joint use of the hotel users and members of the public and at least four spaces shall be designated for non -hotel users to ensure access to the Green River Trail for members of the public. 6 26 Section 9. Vested Rights. During the term of this Agreement, unless sooner terminated in accordance with the terms hereof, in developing the Subject Property consistent with the Project described herein, Developer is assured, and the City agrees, that the development rights, obligations, terms and conditions specified in this Agreement, are fully vested in the Developer and may not be changed or modified by the City, except as may be expressly permitted by, and in accordance with, the terms and conditions of this Agreement, including the Exhibits hereto, or as expressly consented thereto by the Developer. Section 10. Minor Modifications. Minor modifications from the approved permits or the exhibits attached hereto may be approved in accordance with the provisions of the City's code, and shall not require an amendment to this Agreement. Section 11. Further Discretionary Actions. Developer acknowledges that the Existing Land Use Regulations contemplate the exercise of further discretionary powers by the City. These powers include, but are not limited to, review of additional permit applications under SEPA. Nothing in this Agreement shall be construed to limit the authority or the obligation of the City to hold legally required public hearings, or to limit the discretion of the City and any of its officers or officials in complying with or applying Existing Land Use Regulations. Section 12. Existing Land Use Fees and Impact Fees. A. Land use fees adopted by the City by ordinance as of the Effective Date of this Agreement may be increased by the City from time to time, and are applicable to permits and approvals for the Subject Property, as long as such fees apply to similar applications and projects in the City. B. All impact fees shall be paid as set forth in the approved permit or approval, or as addressed in Chapters 16.26 and 9.48 of the Tukwila Municipal Code. IV. GENERAL PROVISIONS Section 1. Assignment of Interests, Rights, and Obligations. This Agreement shall be binding and inure to the benefit of the Parties. No Party may assign its rights under this Agreement without the written consent of the other Party, which consent shall not unreasonably be withheld. This Agreement shall be binding upon and shall inure to the benefit of the heirs, successors, and assigns of the Developer and the City. Section 2. Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein. Section 3. Severability. The provisions of this Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity of its application to other persons or circumstances. 7 27 Section 4. Termination. This Agreement shall expire and/or terminate as provided below: A. This Agreement shall expire and be of no further force and effect if the Developer fails to submit a complete building permit application for the construction of the hotel within one year, or if the Project construction is not completed within three years, of the effective date of this Agreement; or if at any time after Project construction is completed, Developer fails to maintain the Pocket Park and the parking areas according to the terms of this Agreement. Nothing in this Agreement shall extend the expiration date of any permit or approval issued by the City for any development. B. This Agreement shall expire and be of no further force and effect if the Developer does not construct the Project as contemplated by the permits and approvals identified in this Agreement, or submits applications for development of the Subject Property that are inconsistent with such permits and approvals. C. This Agreement shall terminate at such time as a change of use occurs at 90 Andover Park East, or at such time as 90 Andover Park East is redeveloped. D. This Agreement shall terminate in the event the Washington State Department of Transportation (WSDOT) widens Interstate 405 in vicinity of the Subject Property, or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park. E. This Agreement shall terminate upon the abandonment of the Project by the Developer. The Developer shall be deemed to have abandoned the Project if/when written notice is provided to the City that the Developer's interest in the Project has been terminated. Said notice shall be given to the City no more than thirty (30) days after the Developer's interest in the Project is terminated. F. This Agreement may terminate pursuant to Section IV.3, Severability, or Section IV.10, Default, or as otherwise outlined in this Agreement. G. If the use will continue upon expiration of the term of this Agreement, the Developer shall either negotiate a new agreement with the City or provide documentation showing how the number of parking spaces required by the codes at the time of expiration will be provided. 8 28 Section 5. Effect upon Termination on Developer Obligations. Termination of this Agreement as to the Developer of the Subject Property or any portion thereof shall not affect any of the Developer's obligations to comply with the City Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or subdivision map or other land use entitlements approved with respect to the Subject Property, any other conditions of any other development specified in the Agreement to continue after the termination of this Agreement or obligations to pay assessments, liens, fees or taxes. Section 6. Effects upon Termination on City. Upon any termination of this Agreement as to the Developer of the Subject Property, or any portion thereof, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the property affected by such termination (provided that vesting of such entitlements, conditions or fees may then be established for such property pursuant to then existing planning and zoning laws). Section 7. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default hereof. Section 8. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. Venue for any action shall lie in King County Superior Court or the U.S. District Court for Western Washington. Section 9. Attorneys' Fees. In the event of any litigation or dispute resolution process between the Parties regarding an alleged breach of this Agreement, neither Party shall be entitled to any award of attorneys' fees. Section 10. Notice of DefaultlOpportunity to Cure/Dispute Resolution. A. In the event a Party, acting in good faith, believes the other Party has violated the terms of this Agreement, the aggrieved Party shall give the alleged offending Party written notice of the alleged violation by sending a detailed written statement of the alleged breach. The alleged offending Party shall have thirty (30) days from receipt of written notice in which to cure the alleged breach unless the Parties agree, in writing, to additional time. This notice requirement is intended to facilitate a resolution by the Parties of any dispute prior to the initiation of litigation. Upon providing notice of an alleged breach, the Parties agree to meet and agree upon a process for attempting to resolve any dispute arising out of this Agreement. A lawsuit to enforce the terms of this Agreement shall not be filed until the latter of (a) the end of the cure period or (b) the conclusion of any dispute resolution process. B. After notice and expiration of the thirty (30) day period or other time period as agreed to by the Parties, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other party or Landowner to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. In addition, the City may decide to file an action to enforce the City's Codes, and to obtain penalties and costs as provided in the Tukwila Municipal Code for violations of this Development Agreement and the Code. 9 29 Section 11. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and is not intended to benefit any other person or entity, and no person or entity not a signatory to this Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No other person or entity not a Party to this Agreement may enforce the terms and provisions of this Agreement. Section 12. Integration. This Agreement and its exhibits represent the entire agreement of the parties with respect to the subject matter hereof. There are not other agreements, oral or written, except as expressly set forth herein. Section 13. Authority. The Parties each represent and warrant that they have full power and actual authority to enter into this Agreement and to carry out all actions required of them by this Agreement. All persons are executing this Agreement in their representative capacities and represent and warrant that they have full power and authority to bind their respective organizations. Section 14. Covenants Running with the Land. The conditions and covenants set forth in this Agreement and incorporated herein by the Exhibits shall run with the land and the benefits and burdens shall bind and inure to the benefit of the parties. The Developer, Landowner and every purchaser, assignee or transferee of an interest in the Subject Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Subject Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of a Developer contained in this Agreement, as such duties and obligations pertain to the portion of the Subject Property sold, assigned or transferred to it. Section 15. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be amended by mutual consent of all of the parties, provided that any such amendment shall follow the process established by law for the adoption of a development agreement (see, RCW 36.70B.200). However, nothing in this Agreement shall prevent the City Council from making any amendment to its Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations affecting the Subject Property as the City Council may deem necessary to the extent required by a serious threat to public health and safety. Nothing in this Development Agreement shall prevent the City Council from making any amendments of any type to the Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations relating to the Subject Property. Section 16. Releases. Developer, and any subsequent Landowner, may free itself from further obligations relating to the sold, assigned, or transferred property, provided that the buyer, assignee or transferee expressly assumes the obligations under this Agreement as provided herein. 10 30 Section 17. Notices. Notices, demands, correspondence to the City and Developer shall be sufficiently given if dispatched by pre -paid first-class mail to the addresses of the parties as designated in Section 5. Notice to the City shall be to the attention of both the Mayor's Office and the City Attorney. Notices to subsequent Landowners shall be required to be given by the City only for those Landowners who have given the City written notice of their address for such notice. The parties hereto may, from time to time, advise the other of new addresses for such notices, demands or correspondence. Section 18. Reimbursement for Agreement Expenses of the City. Developer agrees to reimburse the City for actual expenses incurred over and above fees paid by Developer as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees and reasonable staff and consultant costs not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section, as well as any processing fees owed to the City for the Project, are paid to the City. This Agreement shall be terminated if the Developer does not pay to the City the fees provided for in this section. Upon payment of all expenses, the Developer may request written acknowledgement of all fees. Such payment of all fees shall be paid, at the latest, within thirty (30) days from the City's presentation of a written statement of charges to the Developer Section 19. Police Power. Nothing in this Agreement shall be construed to diminish, restrict or limit the police powers of the City granted by the Washington State Constitution or by general law. Section 20. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party or a Landowner to challenge this Agreement or any provision herein, the City and Developer will collaborate to resolve such legal action. In the event such legal action cannot be resolved, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to Developer and/or Landowner(s). In such event, Developer and/or such Landowners shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to, attorneys' fees and expenses of litigation, and damages awarded to the prevailing party or parties in such litigation. Neither the City nor the Developer and/or Landowner shall settle any lawsuit without the consent of the other. The City and Developer/Landowner shall act in good faith and shall not unreasonably withhold consent to settle. Section 21. No Presumption Against Drafter. This Agreement has been reviewed and revised by legal counsel for both Parties and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreement. Section 22. Headings. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this Agreement. Section 23. Recording. Developer shall record an executed copy of this Agreement with the King County Auditor, pursuant to RCW 36.70B.190, no later than fourteen (14) days after the Effective Date. 11 31 Section 24. Legal Representation. In entering into this Agreement, Developer represents that it has been advised to seek legal advice and counsel from its attorney concerning the legal consequences of this Agreement; that it has carefully read the foregoing Agreement and knows the contents thereof, and signs the same of its own free act; and that it fully understands and voluntarily accepts the terms and conditions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the dates set forth below: OWNER/DEVELOPER: CITY OF TUKWILA By By Its Managing Member Its Mayor Tukwila TSD LLC 21109 66t Avenue South Kent, WA 98032 ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day of 2014, before me personally appeared , to me known to be the individual that executed the within and foregoing instrument, and acknowledged the said instrument to be his/her free and voluntary act and deed for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. 12 32 Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this - dayof 2014, before me personally appeared , and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged as the of the City of Tukwila to be the free and voluntary act of said party for the uses and purposes mentioned in this instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 1.3 33 EXHIBIT1 err LEGAL DESCRIPTION OF PROPERTY TRACT 4, ANDOVER musnum. PARK NO.1, ACCORDING TO THE PLATTHEREOF RECORDED IN VOLUME66 OP PUTS, PAGE( 36, RECORDS OF KING COUNTY, WASi1 NGTON; EXCEPT THE SOUTH 26 PE IHEREOP AND IDLCP7rTHAT PORTION THEREOP CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NO.592245, ACCORDING TO DECREE FILED JANUARY 14,1963. 7C l 1P 1 k. 1 ±v ;. ' N..4. -<_ -[ 4.c C' %‘.%:‘ t> C.. r G: \ 34 ANDOVER PARK EAST TY LINE TUKWILA PARKWAY wri• EXHIBIT 2 LS W OF SI Lat. Ad.1.111711INNIgNle 111 AR IN S AC MIN PATIO HOTEL 5 -STORY 59, I 70 SQ. FT 92 UNITS & TYPICAL PARKING MACE 9'X19' 0 0 N cis 0 0 53 ONSITE PARKING SPACES CLICICIC AtsID4APIIN Ic LANDSCAPING 45 SITE PLAN " E4:7-0" CHRISTENSEN ROAD OFTVITE PARKING RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY 1 N EXPRESS TULWILA, NA TUKVVILA SD L.L.C. Da ARCH ITECT 10/31/14 5715 143rd Place S.E. Bellevue, WA 98008 425-260-8969 35 EXHIBIT `. PROPOSED POCKET PARK — CHRISTENSEN ROAD Development of the park and parking area will include the installation of: • New graded area for the park • A circular seating wall • Bike rack • Picnic tables • Waste receptacle • Pathways • Three life trail stations (along the adjacent trail) • Evergreen trees to provide screening between the 65th Avenue S bridge, Tukwila Parkway, and the park • Flowering trees • Restriping 27 parking spaces along the east side of Christensen Road • Striping four spaces at the north end of Christensen Road • New pavement and striping for the development of 14 new spaces along the west side of Christensen Road and four spaces at the north end. • Maintaining the parking area, landscaping, irrigation, and waste disposal for the public pocket park (Includes restriping spaces every three years). • Allowing public access to the hotel site as required for park access and egress • Planned access for emergency vehicles • The pocket park will be included within the open space requirements of the City Municipal Code and Christensen Road and the parking spaces will comply with all relevant codes as well as the American with Disabilities Act (ADA). 36 TUKWILA POCKET PARK Schematic Cost Estimate ITEM PROPOSED TUKWILA POCKET PARK & PARKING - COST SUMMARY Date: September 4, 2014 QTY. COST TOTAL REMARKS New Concrete Paving Area New Asphah Paving Area Landscape Area Hardscape Improvements Demolition ($/c.y.) Concrete Walks & Paving ($/s.f.) Asphalt Paving ($/s.f.) Seatwall ($/f.s.f.) Picnic Tables (S/ea.) Bike Rack ($/f.s.f.) Trash Receptacles Life Stations ($/f.s.E) Subtotal Landscape Improvements 3,400 700 9,875 2,706 $1.95 $5,277 Sawcut & demo. Existing roadway & curbing 3,400 $6.50 22,100 4" rein. Conc. w/scoring and broom finish 700 $3.00 2,100 165 $200 33,000 18" height, c.i.p.concrete wall & raised planter 3 $2,200 6,600 6' length 1 $650 650 1 $750 750 3 $3,500 10,500 Bed Prep. & Fine Grading Soil Prep Evergreen Trees Deciduous Trees Lawn, Plantings, and Irrigation Subtotal 9,875 $0.10 89 $35.00 7 $250.00 6 $400.00 9,875 $4.00 $80,977 $988 All lawn & planting areas 3,111 3" depth - all lawn & planting areas 1,750 6' Min. Ht. 2,400 2" Cal., 12' Min. Ht. 39,500 Contingency 10% Note: Estimate does not include grading, drainage, or parking Civil Engineering & New Parking Spaces - Right -of -Way Landscape & Architectural Fees Annual Maintenance Total $47,748 $12,872 $25,000 $13,440 $6,000 (Annual fee subject to inflation over term of agreement) $186,037 Sources: Jeffrey B. Glander & Associates (Landscape Architecture & Site Planning) Civil Engineer Tri -States Development. LLC. Dale Sweeney, Architect 39 Land Value estimate for parking and drive aisle area of Christensen Road Approximate land area including right-of-way (s.f.) 17,103 Developer's contracted land cost per square foot $25.00 Land acquisition cost (If 100% use) $427,575 Proposed pocket park & parking cost estimate $186,037 Pocket park & parkingas percentage of total cost 43.5% * Ongoing maintenance and striping costs after initial year go on indefinitely 40 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Community Affairs and Parks Committee FROM: Economic Development Administrator DATE: November 5, 2014 SUBJECT: Multi -Family Residential Property Tax Incentive ISSUE The Council is being asked to designate a portion of Tukwila's Transit Oriented Development District as a "residential targeted area" and approve a multi -family property tax exemption program as an incentive to encourage construction of new apartments and condominiums. BACKGROUND State law (RCW 84.14) allows cities to exempt qualified multi -family housing from property taxes within certain "residential targeted areas" as designated by the cities as an incentive to encourage residential development and redevelopment of market rate and affordable housing in urban centers. If a project meets the criteria, the qualified residential units would be exempt from ad valorem property taxes for eight years. If the project also provides affordable housing, it would be exempt for twelve years. The exemption applies to the ad valorem property taxes received by all taxing districts, not just the City. The property tax exemption applies to the qualified housing units only, not on the value of the land or commercial improvements. Once the exemption period ends, the structures are placed on the property tax rolls based on their original new construction valuation. In addition to being located within a residential targeted area, the projects must meet other State eligibility criteria such as having four or more units, meeting all city building codes, and being completed within three years of conditional approval of the exemption. Cities may add additional criteria such as height, density, public benefit features, income limits for occupants, limits on rents or sales prices, etc. The exemption may apply to ownership and/or rental units. Attached is a report by the Washington State Department of Commerce entitled "Multi -Unit Housing Tax Incentives 2007-2010" which provides a good summary of the State's intent and history of the program. The report only provides a overview since it reflects only those cities that voluntarily reported. The Puget Sound Regional Council also published a summary of the multi -family property tax exemption incentive (attached). Many cities in the State and King County have adopted ordinances establishing the exemption incentive in their cities. Attached is a list of many cities who have adopted programs. A subset of the cities who adopted programs have approved qualified projects. Within King County, five cities have projects that are currently receiving exemptions under this program. The cities are: Burien, Kirkland, Renton, Seattle, and Shoreline. Attached is a table showing the number of multi -family projects in King County currently receiving property tax exemptions. It is important to note that the table shows number of projects, not dwelling units. Some of the projects have hundreds of dwelling units and total number of units is in the 41 INFORMATIONAL MEMO Page 2 thousands. The table does not reflect projects that have been conditionally approved by cities but are still under construction and so have not started receiving the exemption. DISCUSSION The multi -family property tax exemption can be an effective tool for encouraging residential development in urban centers. Staff recommends the City implement the incentive for the portion of the Tukwila Urban Center's Transit Oriented Development district (TOD district) that lies west of the Green River. This targeted area would comprise 42 parcels and three property tax levy code areas. A table showing the 2014 property tax levies by taxing district is attached. The purpose of the incentive is to "prime the pump" and get new construction of multi -family residential started - not to provide an ongoing subsidy. Therefore staff recommends the program include a "sunset clause" and only accept applications through the end of 2016, which is basically two years. After one or two projects are completed and rented, we may learn that the rents are high enough to justify additional development without needing the incentive. There are a number of benefits to the City for adopting the program but the main question is about the City's vision for the urban center and whether the City wants to encourage construction of new multi -family residential in the TOD district. Here are some reasons why we should: 1. Residents in the TOD district help create a more "downtown" feel and sense of place which strengthens Tukwila's identity. 2. Multi -family residential in the TOD district is a housing option that some of our current residents would like to have. 3. New apartments in the TOD district would be a step toward condominiums which may lead to a higher percentage of home ownership in Tukwila. 4. Residents in our TOD district and an improved identity strengthen the economy of our retail area by providing a sense of place that attracts additional customers. 5. Housing in the TOD district will help the City achieve its residential growth targets and goals outlined in the City's Housing and Urban Center Element of the Comprehensive Plan. 6. Housing in the TOD district will help the City meet its obligations under the State's Growth Management Act as a designated urban center and continue receiving additional credit when applying for State and Federal infrastructure grants. 7. Housing in the TOD district will help the City meet its obligation under the King County Countywide Planning Policies. 8. Housing in the TOD district will help implement the City's intent as described in the recently adopted Southcenter Plan which states the community intent to "stimulate pioneering residential and office development in walking distance of the Southcenter transit center..." If the Council agrees the City should encourage construction of new multi -family residential in the TOD district, the next question is then whether the City should offer a multi -family property tax exemption as an incentive. Attached is a chart showing the value of the exemption to the property owner for project assessed values ranging from $1 million to $100 million. It is important to note that the exemption does not reduce or take away property taxes currently received by the City or other taxing districts. However, it does delay when the agencies would start receiving property tax on the new construction by eight or twelve years. This is significant for the City because the City needs those property taxes to be able to provide police, fire, and other services to the residents of the new development. Whether other agencies will provide Monuments and Settings\derek-s\Desktop\ordinance MFPTE memo.doc 42 INFORMATIONAL MEMO Page 3 services to the residents of the new development would depend on the agency's services. For example, it is unlikely many school children will live in the new residential units in the TOD district but it is likely those residents would use public transit. Whether the tax exemption value received by the property owner is an opportunity cost to the City and taxing districts depends on whether the project would occur on its own without the incentive. If the project would happen on its own, then the property tax exemption is an opportunity cost to the City and other taxing districts. If the project would not happen without the incentive, then the exemption is not an opportunity cost since there would have been no new construction. It is difficult to answer that question with certainty but staff believes the exemption is a necessary incentive for the first one or two projects to be built. Following are three examples indicating why the incentive is necessary: • Over the past decade, Economic Development staff has spoken with multi -family residential housing developers who expressed reluctance to develop since there are no existing rents on new apartments or condos near this TOD district, especially for an urban product. Without rent comparables, proposed projects appear risky and are hard to finance. • In 2014 the City hired Heartland, LLC to perform a financial analysis of the Washington Place development which is proposed in the TOD district. Heartland concluded that "...even under optimistic circumstances, the project would not meet financial expectations of market based investors or lenders." [It should be noted that the developers for that project are seeking funding through the Federal government's foreign investor visa program which may reduce their borrowing costs.] • At the Soundside Alliance meeting on economic development held recently, Legacy Partners, the new developer for the apartment and senior housing phases of Burien Town Square mentioned the property tax exemption as a key incentive for that development. Washington Place: It is important to note that staff is not recommending this incentive program strictly for Washington Place. Even if Washington Place were not in the pipeline, Department of Community Development and Economic Development staff would recommend this incentive. The recently adopted Southcenter Plan also recommends the City provide incentives to encourage new multi -family residential development. Because the Washington Place project has expressed a strong desire to apply for the incentive, staff has brought it forward at this time. Regardless of whether Washington Place receives the incentive, other properties that meet the criteria could apply. Staff is not aware of any other development proposals that would meet the criteria at this time. Transient Occupancy: One of the concerns raised in the public discussion on this incentive is whether owners of the apartments or condominiums could rent out their units for short term stays. If they did this repeatedly, it clearly would not meet the intent of the incentive. For example, we have heard of investors in condominiums in Canada who purchased entire floors of units and then rented them out for short term stays much like a hotel. In order to protect against this, the proposed ordinance includes criteria that the exemption is only on units used for "permanent residential occupancy". As that term is defined it would require apartments to be rented for terms of at least one month or it would allow condominium owners to rent out their units for no more than 30 days per calendar year. C:\Documents and Settings\derek-s\Desktop\Ordinance MFPTE memo.doc 43 INFORMATIONAL MEMO Page 4 The state law suggests jurisdictions considering a tax exemption program hold a public hearing prior to adopting the program. On November 3, 2013 the City Council approved a resolution setting the public hearing for the Council meeting on November 24, 2014. FINANCIAL IMPACT If the Council approves a multi -family property tax exemption program, there would be no reduction to current property tax revenues. If a project is approved that would have been built anyway, then the property taxes on the qualified new construction would be an opportunity cost. If the project would not have been built, then it is not an opportunity cost. Staff believes it is likely the exemption incentive is necessary for the first one or two multi -family residential projects in the TOD district to be built in the next few years. BUDGET IMPACT This specific item does not have a budget impact. RECOMMENDATION The Council is being asked to hold a public hearing at the November 24, 2014 Committee of the Whole meeting and consider this item at the December 1, 2014 Regular Meeting. ATTACHMENTS Draft ordinance with Figure A (map of proposed "Residential Targeted Area") WA State Dept of Commerce report on Multi -unit Housing Tax Incentives Puget Sound Regional Council article on Multi -family Tax Exemption List of cities that adopted multi -family property tax exemption incentive programs Table of multi -family projects in King County receiving property tax exemption 2014 Property Tax Levies by Taxing District Example of multifamily property tax exemption value C:\Documents and Settings\derek-s\Desktop\Ordinance MFPTE memo.doc 44 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; ESTABLISHING AN EXEMPTION FROM REAL PROPERTY TAXATION FOR DEVELOPMENT OF QUALIFIED MULTI -FAMILY HOUSING; ESTABLISHING NEW REGULATIONS TO BE CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTER 3.90 RELATING TO THE DESIGNATION OF A RESIDENTIAL TARGETED AREA WITHIN THE TUKWILA URBAN CENTER; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Chapter 84.14 RCW authorizes cities to provide for exemptions from ad valorem property taxation on qualified multi -family housing developments located in designated residential targeted areas in order to encourage more desirable and convenient residential units in urban centers; and WHEREAS, the King County Countywide Planning Policies (KCCPP), developed pursuant to the Washington State Growth Management Act, have established standards for cities to plan for their share of regional growth and affordable housing; and WHEREAS, the Tukwila Urban Center is one of the region's designated urban centers and lies within an urban growth area; and WHEREAS, the City intends to assist in achieving its residential growth targets and goals in the City's Housing and Urban Center Element of the City's Comprehensive Plan by encouraging new multi -family housing in the Tukwila Urban Center; and WHEREAS, the Tukwila Urban Center currently lacks sufficient available, desirable and convenient residential housing, including affordable housing, to meet the needs of the public who would be likely to live in the urban center, if the affordable, desirable, attractive, and livable places to live were available; and W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 1 of 12 45 WHEREAS, the Tukwila Urban Center qualifies as an urban center for purposes of RCW 84.14.010 and Tukwila has a desire to stimulate new construction of multi -family housing within that portion of the Tukwila Urban Center's Transit Oriented Development district that lies west of the Green River; and WHEREAS, the tax incentive provided by Chapter 84.14 RCW encourages increased residential opportunities, including affordable housing opportunities, and will stimulate the construction of new multi -family housing within the residential targeted area and will benefit and promote public health, safety, and welfare by encouraging residential development and redevelopment of that area of the City; and WHEREAS, on November 24, 2014, the Tukwila City Council, after giving public notice as required by RCW 84.14.040, held a public hearing to consider adoption of the proposed ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Designation of Residential Targeted Area. The City Council hereby designates the boundary of the residential targeted area as that portion of the Tukwila Urban Center zone's Transit Oriented Development district that lies west of the Green River as shown in Figure A and attached hereto and as further specified in Tukwila Municipal Code Section 3.90.030. Section 2. Regulations Established. Tukwila Municipal Code (TMC) Chapter 3.90, "Multi -Family Residential Property Tax Exemption," is hereby established to read as follows: CHAPTER 3.90 MULTI -FAMILY RESIDENTIAL PROPERTY TAX EXEMPTION Sections: 3.90.010 Purpose 3.90.020 Definitions 3.90.030 Residential Targeted Area — Criteria — Designation — Recession 3.90.040 Tax Exemption for Multi -Family Housing in Residential Targeted Areas Authorized 3.90.050 Project Eligibility 3.90.060 Application Procedure — Fee 3.90.070 Application Review — Issuance of Conditional Certificate — Denial — Appeal 3.90.080 Extension of Conditional Certificate 3.90.090 Final Certificate — Application — Issuance — Denial — Appeal 3.90.100 Annual Certification 3.90.110 Appeals to the Hearing Examiner W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 2 of 12 46 Section 3. Tukwila Municipal Code (TMC) Section 3.90.010 is hereby established to read as follows: 3.90.010 Purpose The purposes of this chapter are: 1. To encourage increased residential opportunities, including affordable housing opportunities, and to stimulate the construction of new multi -family housing within a portion of the Tukwila Urban Center's Transit Oriented Development district. 2. To accomplish the planning goals required under the Washington State Growth Management Act, Chapter 36.70A RCW and Countywide Planning Policies as implemented by the City's Comprehensive Plan. Section 4. TMC Section 3.90.020 is hereby established to read as follows: 3.90.020 Definitions As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings: A. "Administrator" shall mean the Economic Development Administrator of the City of Tukwila or his/her designee. B. "Affordable housing" means residential housing that is rented by a person or household whose monthly housing costs, including utilities other than telephone, do not exceed 30 percent of the household's monthly income. For the purposes of housing intended for owner occupancy, "affordable housing" means residential housing that is within the means of low- or moderate -income households. C. "High cost area" means a county where the third quarter median house price for the previous year as reported by the Washington Center for Real Estate Research at Washington State University is equal to or greater than 130 percent of the statewide median house price published during the same time period. D. "Household" means a single person, family, or unrelated persons living together. E. "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 80 percent of the median family income, adjusted for family size, for the county where the project is located, as reported by the United States Department of Housing and Urban Development. For cities located in high-cost areas, "low-income household" means a household that has an income at or below 100 percent of the median family income adjusted for family size, for the county where the project is located. W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 3 of 12 47 F. "Moderate -income household" means a single person, family, or unrelated persons living together whose adjusted income is more than 80 percent but is at or below 115 percent of the median family income, adjusted for family size, for the county where the project is located, as reported by the United States Department of Housing and Urban Development. For cities located in high-cost areas, "moderate -income household" means a household that has an income that is more than 100 percent, but at or below 150 percent, of the median family income adjusted for family size, for the county where the project is located. G. "Multi -family housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multi -family units may result from new construction or rehabilitation or conversion of vacant, underutilized, or substandard buildings to multi -family housing. H. "Owner" means the property owner of record. I. "Owner occupied" means a residential unit that is rented for fewer than 30 days per calendar year. J. "Permanent residential occupancy" means multi -family housing that is either owner occupied or rented for periods of at least one month. K. "Residential targeted area" means the area within the boundary as designated by TMC Section 3.90.030. L. "Urban Center" means a compact, identifiable district where urban residents may obtain a variety of products and services. An urban center must contain: 1. Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies; 2. Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and 3. A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office or both uses. Section 5. TMC Section 3.90.030 is hereby established to read as follows: 3.90.030 Residential Targeted Area — Criteria — Designation — Recession A. The boundary of the residential targeted area is that portion of the Tukwila Urban Center zone's Transit Oriented Development district that lies west of the Green River as shown in Figure A. B. If a part of any legal lot is within the residential targeted area, then the entire lot shall be deemed to lie within such residential targeted area. W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 4 of 12 48 Section 6. TMC Section 3.90.040 is hereby established to read as follows: 3.90.040 Tax Exemption for Multi -Family Housing in Residential Targeted Areas Authorized A. Duration of Exemption. The value of improvements qualifying under this chapter will be exempt from ad valorem property taxation, as follows: 1. For 8 successive years beginning January 1 of the year immediately following the calendar year of issuance of the certificate of tax exemption; or 2. For 12 successive years beginning January 1 of the year immediately following the calendar year of issuance of the certificate of tax exemption, if the property otherwise qualifies for the exemption under Chapter 84.14 RCW and meets the conditions in this subsection. For the property to qualify for the 12 -year exemption under this subsection, the applicant must commit to renting or selling at least 20 percent of the multi -family housing units as affordable housing units to low- and moderate - income households. In the case of the projects intended exclusively for owner occupancy, the minimum requirement of this subsection may be satisfied solely through housing affordable to moderate -income households. B. Limits of Exemption. 1. The property tax exemption does not apply to the value of land or to the value of non -housing -related improvements not qualifying under RCW 84.14. 2. This chapter does not apply to increases in assessed valuation made by the assessor on non -qualifying portions of building and value of land, nor to increases made by lawful order of the King County Board of Equalization, the Department of Revenue, or King County, to a class of property throughout the county or specific area of the county to achieve uniformity of assessment of appraisal required by law. 3. The property tax exemption only applies to the value of improvements used for permanent residential occupancy. Section 7. TMC Section 3.90.050 is hereby established to read as follows: 3.90.050 Project Eligibility A. To be eligible for exemption from property taxation under this chapter, the residential units must satisfy all of the following criteria: 1. The units must be located in the residential targeted area. 2. The units must be within a residential or mixed-use structure containing at least four dwelling units. 3. The units must have an average size of at least 500 square feet per unit. W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 5 of 12 49 4. A minimum of 15 percent of the units must be at least 900 square feet and contain at least two bedrooms. 5. The units must be designed and used for permanent residential occupancy. 6. Each unit must have its own private bathroom and private kitchen. Residential projects that utilize common kitchens and/or common bathrooms are not eligible. 7. The entire property shall comply with all applicable zoning requirements, land use regulations, environmental requirements, building codes and fire code requirements, as outlined in the Tukwila Municipal Code. 8. The units must be constructed and receive a certificate of occupancy after this ordinance takes effect 9. The units must be completed within 3 years from the date of issuance of the conditional certificate of acceptance of tax exemption by the City, or within authorized extension of this time limit. B. In addition to the requirements listed in TMC Section 3.90.050 (A), residential units that request the 12 -year property tax exemption, as permitted by TMC Section 3.90.040 (A)(2), must also satisfy the following requirements: 1. The mix and configuration of housing units (e.g., studio, one -bedroom, two- bedroom, etc.) used to meet the requirement for affordable units under TMC Section 3.90.050 shall be substantially proportional to the mix and configuration of the total housing units in the project. 2. For owner -occupied projects, the contract with the City required under TMC Section 3.90.070 shall identify which units meet the affordability criteria. Section 8. TMC Section 3.90.060 is hereby established to read as follows: 3.90.060 Application Procedure — Fee A. The owner of property applying for exemption under this chapter shall submit an application to the Administrator, on a form established by the Administrator. The owner shall verify the contents of the application by oath or affirmation. The application shall contain the following information: 1. A brief written description of the project, including phasing if applicable, that states which units are proposed for the exemption and whether the request is for 8 or 12 years. 2. Preliminary schematic site and floor plans of the multi -family units and the structure(s) in which they are proposed to be located. W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 6 of 12 50 4 3. A table of all units in the project listing unit number, square footage, unit type (studio, one bedroom, etc.), and indicating those proposed for the exemption. 4. If applicable, information describing how the applicant will comply with the affordability requirements in TMC Sections 3.90.040 and 3.90.050. 5. A statement from the owner acknowledging the potential tax liability when the property ceases to be eligible for exemption under this chapter. 6. Any other information deemed necessary or useful by the Administrator B. At the time of application under this section, the applicant shall pay to the City an initial application fee of $500 or as otherwise established by ordinance or resolution. If the application is denied, the City may retain that portion of the application fee attributable to its own administrative costs and refund the balance to the applicant. C. The complete application shall be submitted any time before, but no later than, the date the certificate of occupancy is issued under Title 16 of the Tukwila Municipal Code. D. After December 31, 2016, the City will no longer accept applications. Section 9. TMC Section 3.90.070 is hereby established to read as follows: 3.90.070 Application Review — Issuance of Conditional Certificate — Denial — Appeal A. The Administrator shall approve or deny an application under this chapter within 90 days of receipt of the complete application. The Administrator shall use the criteria listed in TMC Chapter 3.90 and Chapter 84.14 RCW to review the proposed application. If the application is approved, the owner shall enter into a contract with the City regarding the terms and conditions of the project and eligibility for exemption under this Chapter. The Mayor shall be the authorized signatory to enter into the contract on behalf of the City. Following execution of the contract, the Administrator shall issue a conditional certificate of acceptance of tax exemption. The certificate must contain a statement by the Administrator that the property has complied with the required finding indicated in RCW 84.14.060The conditional certificate shall expire 3 years from the date of approval unless an extension is granted as provided in this chapter. B. If the application is denied, the Administrator shall issue a Notice of Denial stating in writing the reasons for the denial and send the Notice of Denial to the applicant's last known address within 10 days of the denial. W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 7 of 12 51 C. An applicant may appeal the Administrator's notice of denial of the application to the City Council by filing a notice of appeal with the City Clerk within 30 days of receipt of the Administrator's notice of denial and paying a fee of $500 or as otherwise established by ordinance or resolution. The appellant shall provide a statement regarding the basis for the appeal. The closed record appeal before the City Council shall be based upon the record before the Administrator, and the Administrator's decision shall be upheld unless the applicant can show that there is no substantial evidence on the record to support the Administrator's decision. The City Council decision on appeal is final. Section 10. TMC Section 3.90.080 is hereby established to read as follows: 3.90.080 Extension of Conditional Certificate The conditional certificate may be extended by the Administrator for a period not to exceed 24 consecutive months. The applicant shall submit a written request stating the grounds for the extension, together with a fee as established by ordinance or resolution. The Administrator may grant an extension if the Administrator determines that: 1. The anticipated failure to complete construction or rehabilitation within the required time period is due to circumstances beyond the control of the owner; 2. The owner has been acting and could reasonably be expected to continue to act in good faith and with due diligence; and 3. All the conditions of the original contract between the owner and the City will be satisfied upon completion of the project. Section 11. TMC Section 3.90.090 is hereby established to read as follows: 3.90.090 Final Certificate — Application — Issuance — Denial — Appeal A. After completion of construction as provided in the contract between the owner and the City, after issuance of a certificate of occupancy and prior to expiration of the conditional certificate of exemption, the applicant may request a final certificate of tax exemption. The applicant shall file with the Administrator such information as the Administrator may deem necessary or useful to evaluate eligibility for the final certificate, and shall include: 1. A statement of expenditures made with respect to each multi -family housing unit, including phasing if applicable, and the total expenditures made with respect to the entire property. 2. A description of the completed work and a statement of qualification for the exemption. 3. A statement that the work was completed within the required 3 -year period or any approved extension. W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 8 of 12 52 4. If applicable, information on the applicant's compliance with the affordability requirements in TMC Sections 3.90.040 and 3.90.050. B. Within 30 days of receipt of all materials required for a final certificate, the Administrator shall determine whether the completed work is consistent with the application and contract approved by the Mayor and is qualified for limited exemption under Chapter 84.14 RCW, and which specific improvements completed meet the requirements of this chapter and the required findings of RCW 84.14.060. C. If the Administrator determines that the project has been completed in accordance with TMC Section 3.90.090 (A), the City shall file a final certificate of tax exemption with the assessor within 10 days of the expiration of the 30 -day period provided under TMC Section 3.90.090 (B). D. The Administrator is authorized to cause to be recorded, or to require the applicant or owner to record, in the real property records of the King County Department of Records and Elections, the contract with the City required under TMC Section 3.90.070 and such other document(s) as will identify such terms and conditions of eligibility for exemption under this chapter as the Administrator deems appropriate for recording, including requirements under this chapter relating to affordability of units. E. The Administrator shall notify the applicant in writing that the City will not file a final certificate if the Administrator determines that the project was not completed within the required 3 -year period or any approved extension, or was not completed in accordance with TMC Section 3.90.090 (B); or if the Administrator determines that the owner's property is not otherwise qualified under this chapter or if the owner and the Administrator cannot agree on the allocation of the value of the improvements allocated to the exempt portion of rehabilitation improvements, new construction and multi -use new construction. F. The applicant may appeal the City's decision to not file a final certificate of tax exemption to the City's Hearing Examiner within 30 days of issuance of the Administrator's notice as outlined in TMC Section 3.90.110. Section 12. TMC Section 3.90.100 is hereby established to read as follows: 3.90.100 Annual Certification A. A residential unit or units that receive a tax exemption under this chapter shall continue to comply with the contract and the requirements of this chapter in order to retain its property tax exemption. B. Within 30 days after the first anniversary of the date the City filed the final certificate of tax exemption and each year for the tax exemption period, the property owner shall file a certification with the Administrator, verified upon oath or affirmation, which shall contain such information as the Administrator may deem necessary or useful, and shall include the following information: W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 9 of 12 53 1. A statement of occupancy and vacancy of the multi -family units during the previous year. 2. A certification that the property has not changed use since the date of filing of the final certificate of tax exemption and continues to be in compliance with the contract with the City and the requirements of this chapter. 3. A description of any improvements or changes to the property made after the filing of the final certificate or last declaration, as applicable. 4. If applicable, information demonstrating the owner's compliance with the affordability requirements of TMC Sections 3.90.040 and 3.90.050, including: a. The total monthly rent or total sale amount of each unit; and b. The income of each renter household at the time of initial occupancy and the income of each initial purchaser of owner -occupied units at the time of purchase for each of the units receiving a tax exemption. 5. The value of the tax exemption for the project. . 6. Any additional information requested by the City in regard to the units receiving a tax exemption (pursuant to meeting any reporting requirements under Chapter 84.14 RCW). C. Failure to submit the annual declaration may result in cancellation of the tax exemption pursuant to this section. D. For the duration of the exemption granted under this chapter, the property shall have no violation of applicable zoning requirements, land use regulations, building codes, fire codes, and housing codes contained in the Tukwila Municipal Code for which the designated City department shall have issued a Notice and Order and that is not resolved within the time period for compliance provided in such Notice and Order. E. For owner -occupied affordable units, in addition to any other requirements in this Chapter, the affordable owner -occupied units must continue to meet the income eligibility requirements of TMC Section 3.90.040. In the event of a sale of an affordable owner -occupied unit to a household other than an eligible household, or at a price greater than prescribed in the contract referenced in TMC Section 3.90.070, the property tax exemption for that affordable owner -occupied unit shall be canceled pursuant to this section. F. For property with renter -occupied dwelling units, in addition to any other requirements in this chapter, the affordable renter -occupied units must continue to meet the income eligibility requirements of TMC Section 3.90.040. In the event of a rental of an affordable renter -occupied unit to a household other than an eligible household, or at a rent greater than prescribed in the contract referenced in TMC Section 3.90.040, the property tax exemption for the property shall be canceled pursuant to this section. W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 10 of 12 54 G. If the owner converts the multi -family housing to another use, the owner shall notify the Administrator and the County Assessor within 60 days of the change in use. Upon such change in use, the tax exemption shall be canceled pursuant to this section. H. The Administrator shall cancel the tax exemption for any property or individual unit that no longer complies with the terms of the contract or with the requirements of this chapter. Upon cancellation, additional taxes, interest and penalties shall be imposed pursuant to state law. Upon determining that a tax exemption shall be canceled, the Administrator shall notify the property owner by certified mail, return receipt requested. The property owner may appeal the determination by filing a notice of appeal within 30 days of the date of notice of cancellation, specifying the factual and legal basis for the appeal. The appeal shall be heard by the Hearing Examiner pursuant to TMC Section 3.90.110. Section 13. TMC Section 3.90.110 is hereby established to read as follows: 3.90.110 Appeals to the Hearing Examiner A. The City's Hearing Examiner is provided jurisdiction to hear appeals of the decisions of the Administrator to deny issuance of a final certificate of tax exemption or cancel tax exempt status. All appeals shall be closed record and based on the information provided to the Administrator when the administrative decision was made. B. The Hearing Examiner's procedures, as adopted by City Council resolution, shall apply to hearings under this chapter to the extent they are consistent with the requirements of this chapter and Chapter 84.14 RCW. The Hearing Examiner shall give substantial weight to the Administrator's decision and the burden of proof shall be on the appellant. The decision of the Hearing Examiner constitutes the final decision of the City. An aggrieved party may appeal the decision to Superior Court under RCW 34.05.510 through 34.05.598 if the appeal is properly filed within 30 days of the date of the notification by the City to the appellant of that decision. Section 14. 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 15. 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. W: Word Processing\Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 11 of 12 55 Section 16. 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 , 2014. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel Turpin, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: Figure A, "City of Tukwila Multi -Family Property Tax Exemption Residential Targeted Area" W: Word Processing \Ordinances\Property tax exemption for qualified multi -family housing 11-4-14.doc DS:bjs Page 12 of 12 • 56 Raker BI City of Tukwila Multi -Family Property Tax Exemption Residential Targeted Area Target Parcels ZoningCode TUC-TOD Zone Figure A 57 Department of Commerce Innovation is in our nature. Multi -Unit Housing Tax Incentives 2007-2010 Report to the Governor Rogers Weed, Director 59 ACKNOWLEDGEMENTS Washington State Department of Commerce Karen J. Larkin, Assistant Director, Local Government & Infrastructure Division Leonard Bauer, Managing Director, Growth Management Services Ike Nwankwo, Technical & Financial Assistance Manager, Growth Management Services Linda Weyl, Administrative Assistant, Growth Management Services Special thanks to the cities and counties who participated in this study. Washington State Department of Commerce Growth Management Services 1011 Plum Street SE P.O. Box 42525 Olympia, WA 98504 www.commerce.wa., gov/growth To obtain a copy of this report in an altemate format, please call (360) 725-3066 Multi -Unit Housing Tax Incentives 2007-2010 60 TABLE OF CONTENTS INTRODUCTION 4 BACKGROUND INFORMATION 4 ESSHB 1910 (2007) 4 DEPARTMENT OF COMMERCE ROLE: ANNUAL REPORT 6 ANNUAL REPORT SUMMARY 6 ANALYSIS / EVALUATION 8 RECOMMENDATIONS/CONCLUSIONS 14 LIST OF REPORTS 2007 Multi Family Tax Exemption Report 7 2008 Multi Family Tax Exemption Report 7 2009 Multi Family Tax Exemption Report 8 2010 Multi Family Tax Exemption Report 8 LIST OF TABLES Table 1: Comparison of New Housing Units in Cities Using Property Tax Exemptions 2007 - 2010.10 Table 2: Percentage of Total Housing Units Built Using Property Tax Exemptions 2007 - 2010 11 Table 3: Comparison of Affordable and Market Rate Housing Units 12 Table 4: Percentage of Affordable vs. Market Rate Housing Units 13 Multi -Unit Housing Tax Incentives 2007-2010 3 61 Introduction The purpose of this report is to evaluate the uses and the effects of the multi -unit housing tax incentives approved by the 2007 Legislature as Engrossed Second Substitute House Bill 1910 (ESSHB 1910). It later was codified as RCW 84.14. This report was requested by the Governor in her partial veto of the legislation. Background Information The Washington Growth Management Act (GMA) was passed by the Washington State Legislature in 1990. The GMA sets out 14 goals to guide planning in Washington State. Among the top goals are reduction of urban sprawl, concentrated urban growth, economic development and affordable housing (RCW 36.70A.020). In 1995 the Legislature found that planning solutions to solve the problems of urban sprawl often lack incentive and implementation techniques needed to encourage residential redevelopment in urban centers. Subsequently, they authorized a 10 -year property -tax exemption (RCW 84.14). The tax incentive created by this legislation intends to help stimulate new or enhanced residential opportunities in urban centers and achieve the housing goal mandated by the GMA. In 2007 the Legislature modified the law to allow the tax break to run for eight years, or twelve years if the development contains twenty percent affordable housing 1. The Legislature also lowered the population requirement for cities to be eligible for the program from 30,000 to 15,000. They added a reporting requirement. The changes were intended to become effective immediately. When the legislation reached the Governor's desk, she expressed concerns that the program was expanded to include more cities without any evidence of its effectiveness in increasing affordable housing and was done without including counties in the decision making. She signed the bill but vetoed Section 12 which would have made the legislation effective immediately. She also asked the Department of Commerce to analyze the required annual reports from cities to evaluate its use and effects and assess the need for legislation to alter the exemption program. (Appendix #1) ESSHB 1910 (2007) This tax incentive program adopted by the 2007 Legislature was titled "AN ACT relating to tax incentives for certain multiple -unit dwellings in urban centers that provide affordable housing." It became effective on July 22, 2007 following the Governor's signature and partial veto. The following is a summary of the changes made by the Legislature and their stipulations: • Cities eligible to offer the multi -unit housing property tax exemption are those with a population of at least 15,000 people. If there is no city with a population of at least 15,000 in a county planning under the GMA, then the largest city or town located in that 1 "Affordable Housing" is defined in the legislation as residential housing that is rented by a person or household whose monthly housing costs, including utilities other than telephone, do not exceed thirty percent of the household's monthly income. For the purposes of housing intended for owner occupancy, "affordable housing" means residential housing that is within the means of low or moderate -income households. Multi -Unit Housing Tax Incentives 2007-2010 62 4 county is eligible. The legislation also allows cities with populations of at least 5,000 to participate, if they are located within "buildable lands" counties (King, Pierce, Snohomish, Kitsap, Thurston and Clark). • Participating cities may offer a 12 -year tax exemption if the developer chooses to build, develop, or rehabilitate at least 20 percent of the units as affordable housing. Developers choosing not to include affordable housing receive only 8 years of tax exemption. • New, rehabilitated or converted multifamily housing projects in targeted residential areas are eligible for the property tax exemption. The property tax exemption may be applied to new housing construction and the increased value of a building due to rehabilitation. The exemption does not apply to the land or the non -housing related improvements. • If the property changes use before the end of the exemption period, or no longer complies with guidelines established by the city for participation in the tax exemption program, then back taxes are recovered based on the difference between the taxes paid and taxes that would have been paid without the tax exemption program. • All projects receiving tax exemption must be multiple -unit housing of four or more units that is located in a residential targeted area as designated by the city. The housing must meet the guidelines as adopted by the city which may include density, size, parking, low- income occupancy and other adopted requirements. At least fifty percent of the space must be for permanent residential occupancy. New construction must be completed within three years of the application's approval unless an extension of up to two years has been authorized by the local jurisdiction. The property to be rehabilitated must be vacant at least 12 months prior to application. The applicant must enter into a contract with the city to agree to terms and conditions. Beginning in 2007, all cities issuing tax exemptions must report annually to the Department of Commerce regarding tax exempt properties. The annual report must include the following: 1. Total number of tax exemptions granted and the total value of those exemptions; 2. Total number of units produced and the total development cost of each unit; 3. Total monthly rent of each unit or the total sale price of each unit; 4. Income of each renter at occupancy of a rental unit, and the income of each initial purchaser of a homeownership unit if the project is using the 12 -year exemption with at least 20 percent of its units rented or sold to income -eligible tenants. When this tax exemption program was initially adopted in 1995 (RCW 84.14), only three cities were eligible; those with populations of 150,000 or more (Seattle, Tacoma and Spokane). Three subsequent amendments reduced the minimum city size, thus increasing the number of cities Multi -Unit Housing Tax Incentives 2007-2010 5 63 eligible to utilize the tax exemption program. After the program was amended again in 2007 (ESSHB 1910), reducing the population threshold to 15,000, more cities became eligible and by 2010, more than 90 cities were eligible to participate. Department of Commerce Role: Annual Report After signing the legislation, the Governor directed Commerce to analyze the required reports from cities and evaluate the tax exemption's use and effects and to assess the need for legislation to alter the program. After the legislation's effective date of July 22, 2007, Commerce convened an advisory group comprised of staff from the cities of Seattle, Tacoma, Spokane, Lakewood and King County Suburban Cities (represented by ARCH - A Regional Coalition for Housing) to help develop the reporting process. It should be noted that Tacoma has had the tax abatement program in place since it was approved in 1995 and Seattle since 1998. After several meetings and discussions, the "Department of Commerce, Multi -Unit Housing Tax Exemption Annual Report Form" (Appendix #2) was developed and approved by the committee. Commerce received the first set of annual reports required under this program in December 2007. Also, during the four-year period 2007-10, cities participating and/or interested in the tax exemption program sought and received assistance from Commerce staff on several issues related to the program. Most of the assistance requests involved clarification or interpretation of the legislation. Commerce consulted with the appropriate Assistant Attorney General to provide needed assistance. (Appendix #3). Commerce sent out reminder notices to participating jurisdictions each year about the December 31 deadline for required annual reports . (Appendix #4). In addition, a survey went to the larger participating cities asking for key information and suggestions that would enhance the review, evaluation and analysis of the program and the resulting recommendations. (Appendix #5) Annual Report Summary Many of the eligible cities either chose not to participate or did not file the required annual report. Commerce received 19 reports in 2007, 13 in 2008, 20 in 2009, and 19 in 2010. Most of the reports showed no activity had taken place. A few jurisdictions filed the annual report in one of the four years and some reported in three of the four years. The majority of reporting jurisdictions (mostly larger ones) submitted annual reports in all four years. The Governor's directive was to analyze and evaluate this tax exemption program for its uses and effects. To accomplish that, Commerce had to focus only on annual reports that included development activities such as approvals or final tax exemption certificate(s) issued under the program. During the Reporting Period 2007-10, 10 jurisdictions submitted such reports: the cities of Seattle, Tacoma, Spokane, Everett, Renton, Shoreline, Wenatchee and Moses Lake, Burien and Kirkland. Multi -Unit Housing Tax Incentives 2007-2010 64 The Annual Report Summaries for 2007, 2008, 2009 and 2010 from these jurisdictions are shown here. 2007 Multi Family Tax Exemption Report 2008 Multi Family Tax Exemption Report Tax Exemption Information Development Cost Information Affordability Requirements Cities that Provided Data as Required by 84814/100 Multi Family Tax Exemption Certificates issued Total Value of the Tax Exemptions Issued Development Cost/Unit Total Units Total Development Costs Number of Affordable/Workforce Rental Units Number of Units Sold or Rented at Market Rate Prices Renton 2 1,957,342 159,370 260 41,436,292 0 260 Seattle 4 8,870,011 140,743 484 68,119,612 319 165 Shoreline 1 1,394,277 132,000 88 11,616,000 0 88 Spokane 45 16,368,800 137,197 168 23,049,074 29 139 Tacoma 8 4,440,410 200,211 139 27,829,342 0 139 Wenatchee 1 40,737 19,783 23 455,009 0 23 Moses Lake 0 0 0 0 $ - 0 0 Everett 0 0 0 0 $ - 0 0 Totals 61 33,071,577 1162 172,505,329 348 814 2008 Multi Family Tax Exemption Report Multi -Unit Housing Tax Incentives 2007-2010 7 65 Tax Exemption Information Development Cost Information Affordability Requirements Cities that Provided Data as Required by 848 4V100 Multi Family Tax Exemption Certificates issued Total Value of the Tax Exemptions Issued Development Cost/Unit Total Units Total Development Costs Number of Affordable/Workforce Rental Units Number of Units Sold or Rented at Market Rate Prices Renton 2 4,310,638 199,735 245 48,935,075 0 245 Seattle 3 22,651,870 240,908 156 37,581,648 109 47 Shoreline 0 0 0 0 - 0 0 Spokane 11 20,839,100 213,066 222 15,844,884 43 169 Tacoma 16 13,616,830 149,835.00 616 92,298,360 0 616 Wenatchee 0 0 0 0 $ - 0 0 Moses Lake 0 0 0 0 $ - 0 0 Everett 0 0 0 0 $ - 0 0 Totals 32 61,418,438 1239 194,650,967 152 1077 Multi -Unit Housing Tax Incentives 2007-2010 7 65 2009 Multi Family Tax Exemption Report 2010 Multi Family Tax Exemption Report Tax Exemption Information Development Cost Information Affordability Requirements Cities that Provided Data as Required by 84141'00 Multi Family Tax Exemption Certificates issued Total Value of the Tax Exemptions Issued Development Cost/Unit Total Units Total Development Costs Number of AffordableANorkforce Rental Units Number of Units Sold or Rented at Market Rate Prices Renton 2 6,666,649 175,086 532 93,145,648 92 440 Seattle 6 22,488,921 167,392 1,310 166,314,980 657 653 Shoreline 0 0 0 0 - 0 0 Spokane 44 11,676,500 288,702 44 12,702,907 0 44 Tacoma 16 6,224,244 205,470 205 42,121,350 0 205 Wenatchee 0 0 0 0 - 0 0 Moses Lake 1 768,228 ?? 96 ?? 96 0 Everett 2 329,061 289,000 31 8,959,000 0 31 Totals 71 48,153,603 230,760 2218 323,243,885 845 1373 2010 Multi Family Tax Exemption Report Multi -Unit Housing Tax Incentives 2007-2010 66 8 Tax Exemption Information Development Cost Information Affordability Requirements Cities That Provided Data as Required by 8414100 Multi Family Tax Exemption Certificates Issued Total Value of the Tax Exem• ptions Issued Development Cost/Unit Total Units Total Development Costs Number of Affordable/Workforce Rental Units Number of Units Sold or Rented at Market Rate Prices Renton 1 45,530,100 194,518 440 85,587,920 0 440 Seattle 7 17,586,163 211,478 1,023 216,341,994 261 762 Shoreline 0- - 0 - 0 0 Spokane 17 4,001,850 364,914 19 6,933,366 6 13 Tacoma 1 14,036,200 180,000 8 1,440,000 0 8 Wenatchee 0 -- 0 - 0 0 Moses Lake 0 -- 0 - 0 0 Everett 1 447, 965.62 350,905 40 14,036,200 8 32 Kirkland 1 402,538 230,760 52 11,999,520 5 47 Burien 1 31,555,903 192,976 124 23,929,024 0 124 Totals 29 113,560,720 1582 360,268,024 280 1426 Multi -Unit Housing Tax Incentives 2007-2010 66 8 These Annual Report Summaries show that these 10 cities issued 193 tax exemption certificates during the reporting period. The projected value of the exemptions over the 8, 10 or 12 -year term is more than $255 million. They produced 6,326 housing units, of which 1,625 are considered affordable housing. ANALYSIS/EVALUATION The Governor requested a report on the effectiveness of property tax exemptions in general and the effect of changes provided in ESSHB 1910 in particular. The response to her request focuses on four questions: 1. Do property tax exemptions generate new housing? 2. Do property tax exemptions generate affordable housing? 3. Did ESSHB1910 increase the number of cities that provide property tax exemptions? 4. Is consultation with counties necessary in tax exemption decision making? 1. Do property tax exemptions generate new housing? This question focuses on the general effectiveness of property tax exemptions as an incentive to generate housing, particularly in high-cost areas and within the downtown of relatively large cities. One way to answer the question is by comparing the number of housing units created using tax exemptions to the total number of new housing units in each of the participating cities. Table 1 below compares the number of housing units generated using property tax exemptions to the total number of new housing units produced from 2007 to 2010 in the participating cities. The numbers of tax exemption housing units are provided in the annual reports from participating cities. The number of total new housing units2 was derived from the State of Washington's Office of Financial Management (OFM). Each year, OFM updates the population estimate of Washington cities. Their estimate is based on the number of housing units in each city. The data is available online at http://www.ofm.wa.gov/pop/april1/default.asp. 2 Some of the total new housing units derived from the OFM website were adjusted by the reporting cities Multi -Unit Housing Tax Incentives 2007-2010 9 67 Table 1 Comparison of New Housing Units in Cities Using Property Tax Exemptions 2007 to 2010 Total New Housing Housing Without Tax Housing With % Housing Without % Housing With Tax Exemptions Tax Exemptions Tax Exemptions Exemptions Renton 3,775 2,298 1,477.00 61% 39% Seattle 16,549 13,576 2,973.00 82% 18% Shoreline 738 650 88 88% 12% Spokane 1,712 1,259 453 74% 26% Tacoma 2,426 1,458 968 60% 40% Everett 1,161 1,090 71 94% 6% Wenatchee 310 287 23 93% 7% Kirkland 1,123 1,071 52 95% 5% Burien 529 405 124 77% 23% Total 28,323 22,094 6,229 78% 22% It should be noted that Moses Lake did not report additional data; therefore, only data from the other nine jurisdictions were used in the following evaluation. Between 2007 and 2010, nine cities provided property tax exempt certificates. These certificates include over 6,000 housing units. During that same period, these cities added more than 28,000 housing units. The number of housing units created using property -tax exemptions represents 22 percent of the total new housing units generated in the nine participating cities from 2007 to 2010. Between 2007 and 2010 approximately 100,978 housing units were added in Washington overall, according to OFM's estimate. Approximately 28 percent of all these new housing units were built in the nine participating cities. The number of units produced using property tax exemptions represents more than 6 percent of the total new housing units produced in the state of Washington during the same four-year period. Table 2 below illustrates the percentage of new housing units built using property tax exemptions. The gray portion of each column is the percentage of the total new housing units built using property tax exemptions. The black portion represents the percentage of new housing units built without exemptions. Large portions of the new housing units built in Renton and Tacoma from 200710 2010 were built using property tax exemptions. Multi -Unit Housing Tax Incentives 2007-2010 68 10 Table 2 Percentage of Total Housing Units Built Using Property Tax Exemptions 2007-2010 120% 100% 80% 60% 40% 20% 0% ■ % Housing Without Tax Exemptions % Housing With Tax Exemptions .tee �e �e� hea ore\ co �r 5� �aoo�a e`e�� gree a Seca Q)‘). 0 Property tax exemptions appear to have some impact on the generation of new housing units. At least in the participating cities, about one in five housing units built between 2007 and 2010 relied upon property tax exemptions. On average, new housing units exempt from property taxes represent 22 percent of the total new housing units in the participating cities. The impact is particularly noticeable in Renton and Tacoma, where housing with tax exemptions account for nearly 40 percent of the total housing units constructed from 2007 to 2010. In Spokane and Burien, it accounts for 26 percent and 23 percent, respectively. In Seattle it accounts for 18 percent and in Everett and Kirkland it accounts for less than 10 percent of the total new housing units. 2. Do property tax exemptions generate new affordable housing? Property tax exemptions appear to generate affordable housing units only when municipal ordinances require that they do and with additional incentives added. Seattle requires affordable housing to be provided in both the 8 -year and the 12 -year programs (the 8 -year exemption only applies to homeownership projects with less than 20 percent affordable units, but they still must be sold to an income -qualified buyer). The other jurisdictions do not have those requirements. As a result, 26 percent of the housing units built in Seattle using property tax exemptions were affordable. In Spokane and Everett, the numbers of affordable units were lower - 17 percent and 11 percent, respectively. Kirkland reported that 10 percent of the units were affordable, and in Renton only 6 percent. The other cities did not report any affordable units during the 2007-10 period. Table 3 below compares the number of affordable and market rate housing units. The information was derived from the annual reports submitted by each of the participating cities. Multi -Unit Housing Tax Incentives 2007-2010 11 69 Table 3 Comparison of Affordable and Market Rate Housing Units 2007 - 2010 Total Units Affordable Market Rate % Affordable % Market Rate Renton 1477 92 1385 6% 96% Seattle 2,973 1346 1627 26% 74% Shoreline 88 0 88 0 100% Spokane 453 78 375 17% 83% Tacoma 968 0 968 0% 100% Everett 71 8 63 11% 89% Wenatchee 23 0 23 0 100% Kirkland 52 5 47 10% 90% Burien 124 0 124 0% 100% Totals 6,118 1524 4589 25% 75% Seattle 2,973 1346 1627 45% 55% Remainder 3,145 178 2962 6% 94% Table 4 below illustrates the percentage of affordable housing units to market rate housing units in each of the participating cities. The gray portion of each column represents the percentage of housing units that were rented or sold at market rate prices. The black portion represents the percentage rented or sold that was affordable to lower-income households. Multi -Unit Housing Tax Incentives 2007-2010 70 12 l Table 4 Percentage of Affordable vs. Market Rate Housing Units 2007-2010 120% 100% 80% 60% 40% 20% 0% ■ % Affordable n % Market Rate •c% �a • .ems �a�� oe \41 Approximately 87 percent of the total affordable housing units are located within the city of Seattle. In the other cities, only 6 percent of the housing units were affordable. This fact underscores the point that property tax exemptions generate affordable housing units only when municipal ordinances require that they do — Seattle requires affordable housing for both the 8 - year and the 12 -year. 3. Did ESSHB 1910 increase the number of cities that provide property tax exemptions? ESSHB 1910 decreased the population threshold for cities to qualify for property tax exemptions from 30,000 people to 15,000 people. The reduction made 19 cities eligible to participate in the incentive program, only two of which provided property tax exemptions during the first three years: Wenatchee and Moses Lake. During the fourth year, none of the 19 cities provided exemptions. Based on the annual reports, reducing the population threshold to 15,000 did not have a significant impact on the number of cities participating in the property tax incentive program. A variety of factors may have impeded the participation of smaller cities. For instance, the changes took effect amidst a national housing crisis. This undoubtedly had an impact on the number of property tax exemptions that were issued. Additionally, it has only been four years since the new law was passed and some of these smaller jurisdictions may not have had time and resources to review, design and approve the tax exemption program for use in their jurisdictions. 4. Is consultation with counties necessary in tax exemption decision making? The tax exemption program affects tax revenues of the state, county, and districts such as library, park, and school districts. Involving all governmental entities affected by the exemption program would help ensure full consideration of their perspectives. This issue of consultation with counties was discussed by the Advisory Group convened by Commerce to develop the process for annual report. The need to involve counties was vital, the group concluded. Multi -Unit Housing Tax Incentives 2007-2010 13 71 However, it was pointed out that informal coordination was happening at staff level and it is the county assessor that processes the tax exemptions. Survey responses from key cities indicate that some informal consultation with counties took place. Everett reported that they did consult Snohomish County when the program was initially established. The county supported the program, because they agreed that it would lead to construction of housing that eventually would be paying property taxes, and without it, the housing would not be built. Everett also pointed out that since the city would be providing services to the housing, there was very little impact on the county from the program. Seattle similarly reported good coordination with King County and Renton informally consulted with the King County Department of Assessments when the Multi -Family Housing Property Tax Exemption program was established there in 2003. RECOMMENDATIONS/CONCLUSIONS Establish a formal process in statute for early notification regarding this tax exemption. A formal early notification process should be established and added to the legislation even though an informal process was undertaken by participating jurisdictions. This would require any jurisdiction participating in the tax exemption program to officially notify their county of their intention to offer property tax exemption as authorized under RCW 84.14. This early notification should include the projected amount of the tax exemption and the sunset date. Is the property tax exemption effective? (a) Housing as Economic Development Tool - The Case for Market Rate Housing: Housing (especially multi -unit) - affordable or not - provides a broad range of benefits to the communities in which it is located. It can enrich these communities, fill diverse and significant market needs and most importantly, provide economic benefits through its construction. Jurisdictions benefit from the construction of new housing units or rehabilitation of existing properties through the jobs created to produce or rehabilitate them. Economic benefits also result from the creation of the products that go into these buildings and the jobs related to the design, finance and management of the projects. In addition to the job creation and tax revenue benefits at the local level, new multi -unit construction also produces "ripple effects" as the construction wages generated by the project are spent on local goods and services and as the new residents begin spending in the local economy. According to the National Association of Homebuilders, a typical 100 -unit housing development project generates, over 10 years, 445 jobs, $15.5 million in local income, and $2.6 million in local taxes. Once the project is completed, ongoing economic benefits are generated in the form of property taxes, employment for people who work to manage and maintain the units, and consumer spending by the occupants. Benefits are also generated by the more efficient delivery of services from both the public and private sectors because of the greater densities associated with multi -unit developments. The multi -unit housing authorized under this legislation is required to be located in designated Multi -Unit Housing Tax Incentives 2007-2010 72 14 centers within the Urban Growth Areas (UGAs). If these UGAs are appropriately sized and designated, and services and facilities provided effectively and efficiently, additional benefits and efficiencies would be realized depending on the scale of the development. These include sprawl reduction, more efficient land uses resulting in greater densities, more efficient multi- modal traffic/transportation (transit, light rail, pedestrian), lower carbon footprint, more efficient infrastructure and utilities (cost effective sewer, roads, water, gas) and other services such as parks, schools, library, police and fire. In a mixed-use project in a town center as authorized in this legislation, new businesses, retail, restaurants and professional services attracted to these new mixed used buildings would generate significant revenues for the community in the form of sales tax and business and occupation licenses and fees. This is in addition to the benefits from construction activities. In Everett, the downtown is the only center in which the multi -unit property tax exemption is allowed, unlike some other cities where the exemption is much more broadly available across their communities. Everett purposely kept the area narrow to encourage market rate housing in their downtown. The downtown had experienced very little housing development over the preceding 20 years, most of which was subsidized low income housing. The city had been successful in getting low income housing without the tax exemption program, and really needed market -rate housing to create more balance in the downtown center. This program successfully attracted developers to the area. Each of the developers who has used the program, either with or without the affordable housing option, indicated they could not have developed their projects without the benefit of the tax exemption. According to the City of Everett, the program as amended in 2007 is producing both market rate and affordable housing: "We believe this is one of the best innovations ever to come out of the legislature in support of GMA. The intent was to stimulate housing development in centers. The 8/12 year compromise bill was a win for both the cities that need more affordable housing, and the cities that need housing of all types in their urban centers. Our recommendation is to leave the program alone with respect to the affordable housing issue. It has worked well in Everett to encourage both affordable and market rate housing that would never have been built without the property tax exemption. The program has tipped the balance so that housing can be viable as part of the redevelopment of our downtown"3. Seattle has noticed significantly more program interest by private developers due to the economic downturn. The program helps projects reach financial feasibility in the current economic climate. (b) Workforce Housing — The Case for Affordable Housing: In her veto message and directives to Commerce, the Governor emphasized the need for "evidence of the effectiveness of the tax exemption program in increasing affordable housing". The 2007 — 2010 Multi Family Tax Exemption Tables on pages 7-8 show that a total of 6,201 housing units were produced under the program and 1,625 of these were affordable housing. Most of these affordable units are located in Seattle, Renton and Spokane. s Information contained in a report submitted by Allan Giffen, Director of Planning and Community Development, City of Everrett. Multi -Unit Housing Tax Incentives 2007-2010 15 73 All eight cities that issued tax exemption certificates adopted ordinances providing for the 8 -year and the 12 -year tax exemption program. ESSHB 1910 requires 20 percent affordable housing set-aside for the 12 -year exemption but not for the 8 -year. Seattle, however, requires affordable housing be provided in both the 8 -year and the 12 -year programs. It is important to point out that Seattle, Renton, Spokane, Everett and Kirkland produced affordable housing during this reporting period and the other jurisdictions did not. In Seattle, the explanation is that only projects with affordable housing are eligible to participate in either the 8 or 12 year program. Additionally, a number of Seattle non-profit housing developers have used the tax exemption along with other public funds, and these funding sources require greater affordability than the tax exemption program. Finally, Seattle granted a tax exemption certificate to the Linden 143, a for-profit project financed with low income housing tax credits. This project has 476 units, all of which are affordable to households at or below 60% of median income. Since July 22, 2007 (the effective date of the 8 -year and 12 -year exemptions under RCW 84.14), Renton has received two exemption applications. One (Second & Main Apartments) was for the 8 -year exemption and the other (Liberty Square Apartments) was for the 12 -year exemption. The city noted that Liberty Square would not have been possible without other public funds such as equity tax credit investors and below-market rate financing (including federal low-income housing tax credits, tax-exempt bond financing, Washington State Housing Trust Fund, King County housing development funds and City of Renton CDBG funds). According to the City of Renton, no developer has expressed an interest in using the 12 -year exemption by itself without other significant public subsidies. The primary reason is that the value of the additional 4 -year exemption does not adequately offset the projected lost revenue associated. For example, meeting the affordable housing requirements for at least 20 percent of the units for 12 years, the exemption benefit is too "shallow" to facilitate affordable housing by itself. There is also the obvious reality that development in general is significantly lower due to the national housing crisis and economic recession. It should be noted, however, that jurisdictions such as Burien and possibly others in which no affordable housing was produced during this reporting period may have projects with affordable units in the pipeline. These units will be reported when the projects are completed and tax exemption certificates issued. Everett did not produce any affordable housing until this reporting period. Based on the information reported to Commerce by the participating cities, the tax exemption program is producing housing in a few, mostly larger jurisdictions (see Table 3 above). Both market rate and affordable housing are being produced but market rate housing production outpaces affordable housing during this reporting period (see Table 4). This could change next reporting period if the affordable units now in the pipeline are completed and included in the next annual report to Commerce. Multi -Unit Housing Tax Incentives 2007-2010 74 16 It is our conclusion that the tax exemption program is working for these local governments and they are using it as needed to achieve different objectives. Some, including Renton, Tacoma and Burien, are developing market rate housing in targeted areas and others, like Seattle, are producing affordable housing. The program is achieving both policy goals included in the 2007 legislation (ESSHB 1910). ACTION OPTIONS: 1. To continue providing for both policy goals, no change to the legislation is currently needed. Leave the tax exemption program as amended, which allows participating jurisdictions the option to use the 8 year program for market rate housing, the 12 year program that requires some affordable housing, or both for a mix of housing. 2. If the policy goal of achieving affordable housing units is considered a higher priority, the legislation could be amended to require that to receive the 8 -year tax exemption, a minimum percentage of the housing units within a development (perhaps 10 or 15 percent) be affordable units. However, it should be noted that this approach could have an adverse impact on achieving market rate housing in some areas. Multi -Unit Housing Tax Incentives 2007-2010 17 75 Puget Sound Regional Council Housing Innovprogramations Featured Tool: Multifamily Tax Exemption* A state law (RCW 84.14) helps cities attract residential development. Cities may exempt multifamily housing from property taxes in urban centers with insufficient residential opportunities. The city defines a residential target area or areas within an urban center; approved project sites are exempt from ad valorem property taxation on the residential improvement value for a period of eight or 12 years. The 12 -year exemption requires a minimum level of affordable housing to be included in the development (at least 20% of the units or 100% if the building is solely owner -occupied). The eight-year exemption leaves the public benefit requirement—in both type and size—to the jurisdiction's discretion. The eight-year exemption carries no affordable housing requirement. Cities must pass an enabling ordinance to enact the MFTE and to allow applications for the exemption. What issue does a multifamily tax exemption address? This tool encourages multifamily development and redevelopment in compact mixed-use districts (urban centers) where housing and affordable housing options are deficient. Through the multifamily tax exemption, a jurisdiction can incentivize dense and diverse housing options in urban centers lacking in housing choices or affordable units. MFTE can also apply to rehabilitating existing properties and redeveloping vacant or underused properties. Where is the multifamily tax exemption most applicable? Cities planning under the Growth Management Act (RCW 36.70a) that have designated urban centers with a deficiency of housing opportunities are eligible to implement this tool. In King, Pierce, Snohomish and Kitsap counties, cities must have at least 5,000 in population. Cities must designate eligible areas that contain urban centers. Urban centers—in the context of the MFTE-enabling legislation—have a particular meaning: "...a compact identifiable district where urban residents may obtain a variety of products and services. An urban center must contain: (a) Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies; (b) Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and (c) A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office, or both, use." (RCW 84.14.010) Based on the state law, designated districts are commercial or business districts with some mix of uses. Such areas may exist in downtowns, commercial corridors, or other intensively developed neighborhoods. Examples of designated districts throughout the central Puget Sound region are listed in the model policies, regulations and other information section below. Tool Profile Focus Areas • Urban Centers • Transit Oriented Development • Expensive Housing Markets Housing Types • Multifamily • Ownership • Rental • Market Rate • Subsidized Affordability Level • 80 to 120% AMI • Less than 80% AMI Goal • Affordability * Tool considered very effective for producing units at less than 80% AMI. Case Studies • Burien Multifamily Tax Exemption • Lynnwood Multifamily Tax Exemption • Tacoma Multifamily Tax Exemption MFTEs have been effective in producing multifamily units in the region's larger cities. Since its inception, the MFTE law has been expanded to include smaller cities. The effectiveness of this tool in larger jurisdictions could make it an attractive tool for smaller and moderate-sized cities that meet the population threshold. Multifamily tax exemptions can encourage relatively dense attached flats or townhomes, in mixed-use projects or residential complexes, which means this tool is particularly useful in urban centers and transit -oriented Puget Sound Regional Council 1 77 developments. Dense development is also economically efficient in expensive housing markets, and can reduce housing costs. What do I need to know about using or developing a multifamily tax exemption? The MFTE implementation process is guided by state law in RCW 84.14. In general, the process includes preparing a resolution of intent to adopt a designated area, holding a public hearing and adopting and implementing standards and guidelines to be utilized in considering applications for the MFTE. Among other criteria, the designated area must lack "sufficient available, desirable, and convenient residential housing, including affordable housing, to meet the needs of the public who would be likely to live in the urban center, if the affordable, desirable, attractive, and livable places to live were available" (RCW 84.14.040). A property owner applying for an MFTE must meet the criteria (per RCW 84.14.030) summarized here: • The new or rehabilitated multiple -unit housing must be located in city -designated residential target areas within the urban center. • The project must meet local government requirements for height, density, public benefit features, number and size of proposed development, parking, income limits for occupancy, limits on rents or sale prices, and other adopted requirements. • At least 50% of the space in the new, converted or rehabilitated multiple -unit housing must be for permanent residential occupancy. Existing occupied multifamily developments must also provide a minimum of four additional multifamily units. • New construction multifamily housing and rehabilitation improvements must be completed within three years from approval. • The applicant must enter into a contract with the city containing terms and conditions satisfactory to the local government. The exemption is recorded with the County Assessor. Developments that violate the terms of the exemption are required to pay back the exempted tax amounts, plus interest, and a penalty fee. Cities considering the program need to weigh the temporary (8-12 years) loss of tax revenue against the potential attraction of new investment to targeted areas. MFTE projects could be catalysts for other private investment if they help prove an area is desirable. Pairing the MFTE with other tools that affect density and cost reductions may help the city achieve higher density and affordable housing in designated mixed-use and commercial areas. These tools include: Featured Tools: • Density Bonuses • Transit Oriented Development Overlays • Parking Reductions Other Tools: • Mixed -Use Development • No Maximum Densities • Planned Action EIS (see in particular the SEPA residential and mixed-use exemption option) Creating a Multifamily Tax Exemption Program A typical planning process (gathering information, conducting public outreach and considering ordinances), together with the specific requirements of state law, will guide the development of an MFTE program: Determine Residential Target Areas. Cities will need to consider the state law's "urban center" definition which addresses existing commercial businesses, mixed uses and infrastructure. Analysis. To support the urban center and residential target area designations, a jurisdiction should map or collect data on current uses, services and capital facilities. The data and analysis should demonstrate that the area lacks Puget Sound Regional Council 78 2 4 sufficient residential housing, including affordable housing. Estimating the tax revenue and other cost -benefit implications of the MFTE program can help to determine whether the program would help achieve housing goals. For example, prior to adopting an MFTE ordinance, the City of Lynnwood prepared an analysis of tax revenue that would be foregone should the ordinance be adopted. In terms of other cost -benefits, jurisdictions can calculate the short-term construction and sales tax revenues and employment gains that stem from the development. (See case studies below.) Conduct Public Outreach. The MFTE statute suggests that a jurisdiction considering an MFTE program issue a resolution of intention to designate an urban center and residential target area(s). The resolution should also identify the time and place of a hearing. Cities must hold a public hearing on the proposed MFTE ordinance and follow notification schedules listed in the statute. While crafting the ordinance, cities will also want to involve stakeholders, including developers of multifamily and condominium housing, affordable housing developers and advocacy groups, and major land owners and businesses in the residential target areas. See Citizen Education and Outreach for strategies to involve the public and stakeholders. Determine Standards. The state affords jurisdictions wide latitude to design their MFTE laws to meet local planning goals. Proposals must meet local zoning and development standards and any affordability and occupancy criteria the jurisdiction sets. Based on the intent of the MFTE, key decisions to shape the ordinance include: • Encouraging more versus Tess participation from developers. The threshold number of units to qualify for the exemption and public benefit requirements could influence the level of participation by developers. A low threshold and limited public benefit requirements, for example, might make the program more accessible to developers, but yield a smaller return in public benefit for foregone revenue. A high threshold and demanding public benefit requirement, however, might make the program unattractive to developers. Striking a balance between requirements, goals and attractiveness is essential to a successful MFTE program. • Encouraging affordable housing versus market -rate housing. RCW 84.14 allows cities to provide a bonus for affordable housing provision by allowing 12 years of tax exemption, versus the eight years offered for market -rate developments. Cities could further encourage developers to opt for the 12 -year exemption by setting a threshold number of units or public benefit to attract development. Offering other incentives (e.g., density bonuses, flexible single family development regulations) along with the MFTE can strengthen interest in affordable development in the city. • Encouraging more rental or ownership housing. The law provides incentives for affordable multifamily rental housing where the whole development is eligible for the tax exemption if at least 20% of the units are affordable to low- and moderate -income households. To receive the 12 -year exemption, buildings intended to be entirely owner -occupied must price all of their units affordably for moderate -income households. Setting a threshold number of rental versus ownership units could influence the type of tax exemption applications received in favor of a particular tenure. • Ensuring that affordability endures. Affordable units may be at risk of losing their affordable status both at the end of the MFTE time period and during its existence if a developer decides to opt out of the program. Requiring affordability covenants for these units is one method for preserving affordability. Implementation. State law requires an application process and procedures. Cities will need to allocate staff and resources to reviewing applications. A fee may be charged for the request. The agency has 90 days to approve or deny the application. Monitoring. The law requires regular reporting by applicants and by cities. Upon construction and annually thereafter, the property owner must file reports containing information such as occupancy, vacancy, and other items required by the city. Cities will also want to make sure that these requirements are not too onerous. In some Puget Sound Regional Council 3 79 cases, partnerships between non -profits and for -profits to ensure secure income certifications and monitoring may be helpful. Cities must report to the State of Washington Department of Commerce annually by December 31 regarding certificates granted, unit types, monthly rent and sales costs, and other information. Cities could use these regular reports to monitor the success of the program and build supporting data for future program goals. Some cities establish a sunset clause by which time the city may re -adopt or let expire the tax exemption program. Model Policies, Model Regulations, Other Information State of Washington: RCW 84.14 See adopted ordinances of the following cities at: http://www.mrsc.org/codes.aspx • Bremerton: Downtown Core and Multiple Residential Zones • Burien: Downtown Commercial Zone • Everett: Downtown and vicinity • Kirkland: Central Kirkland/Houghton; Totem Lake and North Rose Hill; Juanita; and NE 85th Street • Lynwood: City Center • Puyallup: central business district (CBD) and certain areas south of the CBD • SeaTac: 154th Street and SeaTac/Airport Station Areas • Seattle: 39 neighborhoods or districts • Shoreline: Ridgecrest District • Tacoma: 17 mixed-use centers designated on the Generalized Land Use Plan and in the Comprehensive Plan Puget Sound Regional Council 4 80 4 4 Cities That Have Adopted Multi -Family Property Tax Exemption Programs • Auburn Municipal Code Ch. 3.94 - Multifamily Property Tax Exemption - http://www. co depubli shing. co m/wa/auburn/html/auburn03 /auburn03 94. html#3.94 • Bellingham Municipal Code Ch. 17.82.030 - Tax Exemptions for Multi -Family Housing in Targeted Residential Areas http://www.cob.org/web/bmcode.nsf/f6281a531e9ead4588257384007b2367/a4131 7c553ccbb848825680f00835eac!OpenDocument • Bremerton Municipal Code Ch. 3.78 - Multifamily Property Tax Exemption http://www. codepublishing.com/wa/Bremerton/html/Bremerton03Bremerton 0378.html#3.78 • Burien Municipal Code §19.45.030 — Tax exemptions for multi -family housing in residential target areas http://www.burienwa.gov/DocumentView.aspx?DID=364 • Des Moines Municipal Code Ch. 3.96 - Multifamily Tax Exemption http://www.codepublishing.com/wa/desmoines/html/DesMoines03/DesMoine s0396.html • Everett Municipal Code Ch. 3.78 Multifamily Housing Property Tax Exemption http://www.mrsc.org/mc/everett/everet03/everet0378.html • Federal Way Municipal Code Ch. 3.30 Multifamily Dwelling Unit Limited Property Tax Exemption http://www.codepublishing.com/WA/FederalWay/html/FederalWay03/Feder alWay0330.html#3.30 • Kenmore Municipal Code Ch 3.65 - Multifamily Housing Property Tax Exemption http://www.codepublishing.com/wa/Kenmore/html/Kenmore03/Kenmore036 5.html • Kent Municipal Code Ch. 3.25 Multifamily Dwelling Tax Exemptions http://www.codepublishing.com/WA/Kent/html/Kent03/Kent0325.html#3.25 • Kirkland Municipal Code Ch. 5.88 Multifamily Housing Property Tax Exemption http://kirklandcode.ecitygov.net/kirk_htm/Kirk05.html#5.88 • Lakewood Municipal Code Ch. 3.64 - Tax Incentive Urban Use Center Development http://www.municode.cityoflakewood.us/show-chapter.php?chap=232 • Longview Municipal Code Chapter 16.60 PROPERTY TAX INCENTIVES IN RESIDENTIAL TARGETED AREAS http://www.codepublishing.com/wa/longview/html/Longviewl6/Longview1660. html • Lynnwood Municipal Code Ch. 3.82 - Multiple -Unit Housing Property Tax Exemption http://www.mrsc.org/mc/lynnwood/Lynnwood03/Lynnwood0382.html • Marysville Municipal Code Chapter 3.103 MULTIFAMILY HOUSING PROPERTY TAX EXEMPTION http://www.codepublishing.com/wa/marysville/html/Marysville03/Marysv ille03103.html • Mercer Island Municipal Code Chapter 4.50 MULTIFAMILY HOUSING PROPERTY TAX EXEMPTION http://www.codepublishing.com/WA/Mercerlsland/html/Mercerlsland04/ MercerI s land04 5 0. html • Moses Lake Municipal Code Ch. 18.23- Multi -family Housing Tax Exemption — http://ci. moses-lake.wa.us/files/documents/municipal_ code/CHAP1823 .pdf 81 • Mountlake Terrace Chapter 3.95 PROPERTY TAX ABATEMENT PROGRAM FOR QUALIFIED MULTIFAMILY RESIDENTIAL DEVELOPMENT - http://www. codepublishing. com/WA/MountlakeTerrace/html/MountlakeTerrace03/Mou ntlakeTerrace03 95 . html • Newcastle Municipal Code Chapter 3.60 URBAN CENTER DEVELOPMENT - http: //www. co depublishing. co m/ WA/Newcastle/html/Newcastle03 /Newcast le03 60. html #3.60 • Olympia Municipal Code Ch. 5.86 - Multi -family Dwelling Tax Exemptions http://www.codepublishing.com/wa/olympia/html/Olympia05/Olympia0586. html#5.86 • Puyallup Municipal Code Ch. 3.70 - Property Tax Incentives in Residential Targeted Areas http://www.codepublishing.com/WA/Puyallup/html/Puya11up03/Puyallup0370.ht ml#3.70 • Renton Municipal Code, section 4-1-220 PROPERTY TAX EXEMPTION FOR MULTI -FAMILY HOUSING IN RESIDENTIAL TARGETED AREAS: http://www. codepublishing.com/WA/Renton/html/Renton04/Renton0401/Rento n0401220.html • SeaTac Municipal Code Ch. 3.85 Multi -Family Property Tax Exemption http://www.codepublishing.com/wa/seatac/html/Seatac03/Seatac0385.html • Seattle Municipal Code Chapter 5.72 MULTIFAMILY HOUSING PROPERTY TAX EXEMPTION http://clerk.ci.seattle.wa.us/scripts/nph- brs. exe?s 1=&s2=tax+exemption+multi- family&S3=&Sect4=AND&1=20&Sect3=PLURON&Sects=CODE 1 &d=CODE&p=l &u =%2F%7Epublic%2Fcode l .htm&r=0&Sect6=HITOFF&S • Shoreline Municipal Code Chapter 3.27 PROPERTY TAX EXEMPTION - http://www. codepublishing. com/wa/shoreline/html/Shoreline03/Shoreline0327.html#3.2 7 • Spokane Municipal Code Ch. 8.15- Multiple -family Housing Property Tax Exemption http://www. spokanecity.org/services/documents/smc/?Chapter=08.15 • Tacoma Municipal Code §13.17.030 - Tax Exemption for Multi -family Housing in Target Areas - http://www.mrsc.org/ords/t3c13-17.pdf and Economic Evaluation of Property Tax Exemption Program - http://www.cityoftacoma.org/Page.aspx?nid=456 • Vancouver Municipal Code Ch. 3.22 - Multifamily Housing Tax Exemption http://www.cityofvancouver.us/MunicipalCode.asp?menuid=10462&submen uID=10478&title=title_3 &chapter=22&VMC=index.html • Walla Walla Municipal Code Ch.2.28 — Multi -Family Housing Tax Incentives http://www.codepublishing.com/WA/WallaWalla/WallaWalla02/WallaWallaO 228.html#2.28 • Wenatchee Municipal Code Ch. 5.88 — Property Tax Exemptions for Eligible Improvements in Residentially Deficient Urban Centers http://www.codepublishing.com/WA/Wenatchee/html/Wenatchee05/Wenatchee0 588.html#5.88 and Multi -family Housing Tax Incentive - http://www.wenatcheewa. gov/Index.aspx?page=347 • Yakima Municipal Code Ch. 11.63 — Downtown Redevelopment Tax Incentive Program — http://www. codepublishing.com/ WA/Yakima/Yakimal 1 /Yakimal 163.html# 11.63 82 Projects Currently Receiving Multi -Family Property Tax Exemptions in King County As of November 2014 AUTHORIZING ENTITYCITY (CITY) TOTAL PROJECTS TYPE OF PROJECT(S) EXEMPTION TERM Residential Rental Residential For -Sale Mixed Use BURIEN KIRKLAND RENTON SEATTLE SHORELINE Data provided by King County Assessor's Office 11/5/14 2014 Property Tax Levies By Taxing District Levy Code Area Consolidated levy State school fund $ County $ Port $ 2340 2380 2390 2.47044 • 1.51605 0.21533 2.47044 1.51605 0.21533 2.47044 1.51605 0.21533 Subtotal $ City $ Renton School District $ Tukwila School District $ Hospital $ Library $ EMS $ Flood Control Zone $ Ferry $ Tukwila Pool Metropolitan Park District $ Number of parcels in target area 4.20182 2.97799 5.40495 0.50000 0.56175 0.33500 0.15369 0.00349 0.14944 4.20182 2.97799 5.89098 0.56175 0.33500 0.15369 0.00349 0.14944 4.20182 2.97799 5.89098 0.50000 0.56175 0.33500 0.15369 0.00349 0.14944 14.28813 14.27416 14.77416 11 6 25 (1) Levy rate is shown in dollars per thousand of valuation (2) The three levy code areas within the proposed multi -family property tax exemption residential targeted area are #s 2340, 2380, and 2390. (3) Code area 2340 is south of Strander Blvd. (4) Code area 2380 is north of Blacks Road. (5) Code area 2390 is south of Blacks Road and north of Strander. (6) Updated by Office of Economic Development 11/5/14 84 Multi -Family Property Tax Exemption Example of Annual Value to Property Owner Levy Rate Assessed Value of Qualifying Residential Portion $1 Million $100 Million Consolidated levy State school fund $ 2.47044 $ 2,470 $ 247,044 County $ 1.51605 $ 1,516 $ 151,605 Port $ 0.21533 $ 215 $ 21,533 Subtotal $ 4.20182 $ 4,202 $ 420,182 City $ 2.97799 $ 2,978 $ 297,799 Renton School District $ $ - $ - Tukwila School District $ 5.89098 $ 5,891 $ 589,098 Hospital $ 0.50000 $ 500 $ 50,000 Library $ 0.56175 $ 562 $ 56,175 EMS $ 0.33500 $ 335 $ 33,500 Flood Control Zone $ 0.15369 $ 154 $ 15,369 Ferry $ 0.00349 $ 3 $ 349 Tukwila Pool Metropolitan Park District $ 0.14944 $ 149 $ 14,944 $ 14.77416 $ 14,774 $ 1,477,416 Savings to property owner: $ 14,774 $ 1,477,416 (1) Levy rate is shown in dollars per thousand of valuation and reflect 2014 rates. (2) This table shows the annual value (or savings) received by a property owner who is approved for a property tax exemption on the value of multi -family (3) residential development. This table shows two examples: a development (4) valued at $1 million and a development valued at $100 million. (5) Per Office of Economic Development 11/5/14 { 85 July 22, 2014 Ms. Jaimie Reavis Assistant Planner City of Tukwila 6300 Southcenter Boulevard, Suite 100 Tukwila, WA 98188-2544 Transmitted via email: Jaimie.Reavis@TukwilaWA.gov Dear Ms. Reavis: Tri -States Development, LLC and the City of Tukwila are preparing to enter a development agreement that would require Tri -States Development to develop a pocket park at the north end of Christensen Road in return for the shared use of up to 45 off-site parking spaces along Christensen Road. The additional shared parking spaces would allow for development of approximately a 92 -room, limited -service hotel at 501 Tukwila Parkway in Tukwila, Washington. According to Dale Sweeney, Architect for Tri -States Development, LLC, each parking space requires an area that measures 9 feet by 18 feet, for a total area of 162 square feet. For 45 parking spaces, this would require a land area equal to 7,290 square feet (45 x 162). Tri -States Development. LLC. is currently under contract to acquire the subject site from John C, Radovich Development Company for $1.260,000. The land area for the site is 50,415 square feet, or roundly $25.00 per square foot. If Tri -States was able to acquire the additional land for the parking spaces, we would expect to pay the current contract price of approximately $25.00 per square foot, or $182,250 (7,290 * $25.00). However, because use of the parking area will not be exclusive to guests of the hotel, we are of the opinion that its value to the hotel should be something less than 100 percent of the estimated cost. We are prepared to invest roundly $120,000, or approximately 65 percent of the estimated land cost to develop the pocket park at the north end of Christensen Road. Please let us know if this is acceptable and we can proceed with a development agreement. Sincerely, Ray Patel Tri -States Development, LLC 21109 66'h Avenue S. Kent, WA 98032 c,«-czxoy Pc/ * X37 DRAFT 9-4-2014: PROPOSED POCKET PARK — CHRISTENSEN ROAD Tukwila TSD LLC and the City of Tukwila are preparing to enter a mutually beneficial development agreement that would require Tukwila TSD LLC to develop and maintain a pocket park and 45 -parking spaces in Tukwila, at the north end of Christensen Road in return for the shared use of 45 off-site parking spaces along the east, north, and west side of Christensen Road. Currently, Christensen Road terminates at a cul-de-sac located at the north end of Christensen Road. The shared use of the parking spaces would allow the hotel developer to provide adequate parking per City code (hotel to have 53, on-site parking spaces) for development of a 92 -room nationally branded hotel to be located immediately south of Tukwila Parkway, east of Andover Park East, and west of Christensen Road, at 501 Tukwila Parkway. Christensen Road, the parking spaces, and the new pocket park area will remain the property of the City of Tukwila and The City, public, and hotel will have shared use of the pocket park and parking. As such, the City will maintain any and all liabilities associated with the property and provide lighting along Christensen Road, including power required for maintenance. Development of the park and parking area will include the installation of: • New graded area for the park • A circular seating wall • Bike rack • Picnic tables • Waste receptacle • Pathways • Three life trail stations (along the adjacent trail) • Evergreen trees to provide screening between the 65th Avenue S bridge, Tukwila the park • Flowering trees • Restriping 27 parking spaces along the east side of Christensen Road • Striping four spaces at the north end of Christensen Road • New pavement and striping for the development of 14 new spaces along the Christensen Road • Maintaining the parking area, landscaping, irrigation, and waste disposal for the park (Includes restriping spaces every three years). • Allowing public access to the hotel site as required for park access and egress • Planned access for emergency vehicles Parkway, and west side of public pocket The pocket park will be included within the open space requirements of the City Municipal Code and Christensen Road and the parking spaces will comply with all relevant codes as well as the American with Disabilities Act (ADA). The pocket park and parking are considered mutually beneficial for the following reasons. • The north end of Christensen Road is presently not well maintained • There are currently only 27 parking spaces; the new park will provide 45 parking spaces 0 • The planned park will provide a beautiful setting that will complement the Green River Trail and allow the public an additional area to enjoy • Maintenance of the park and parking spaces will be maintained by the hotel owner • Cost of the park and parking spaces will be paid for by the developer in exchange for shared use with the City and public • Most of the hotel's demand for parking will be required during the late afternoon and evening hours The following photos show the current condition of the area and parking. Looking southwest along Christensen Road — existing parking — striping hardly visible Looking north at cul-de-sac where pocket park would be developed & existing trail Looking North — trail & cul-de-sac A rendering of the planned pocket park and parking spaces and a site plan for the hotel are provided on the following pages. A development cost estimate for the pocket park and parking is attached following the artist's rendering and hotel site plan. TUKWILA POCKET PARK TUKWILA PARKWAY wr PATIO HOTEL 5-5TOI 59.d 5Q. FT 92 POCKET PARK SHORELINE BUFFER LS 1 TYPI AL PARKING 9'X19' C 1 SITE PLAN ACT 17 N 111 b 4/ 04 53 ONSITE PARKING SPACES CCCCC ANDSCAF'N 2 VOFSIE ARI • S'AC S I- W a a >2 t...1""` R a CHRISTENSEN ROAD a OFFSIT PARKING P. CES Schematic Cost Estimate ITEM PROPOSED TUKWILA POCKET PARK & PARKING - COST SUMMARY Date: September 4, 2014 QTY. COST TOTAL REMARKS New Concrete Paving Area New Asphalt Paving Area Landscape Area Hardscape Improvements Demolition ($/c.y.) Concrete Walks & Paving ($/s.f.) Asphalt Paving ($/s.£) Seatwall ($/£s.£) Picnic Tables (S/ea.) Bike Rack ($/£s.£) Trash Receptacles Life Stations ($/£s.£) Subtotal Landscape Improvements 3,400 700 9,875 2,706 $1.95 3,400 $6.50 700 $3.00 165 $200 3 $2,200 1 $650 1 $750 3 $3,500 $5,277 Sawcut & demo. Existing roadway & curbing 22,100 4" rein. Conc. w/scoring and broom knish 2,100 33,000 18" height, c.ip.concrete wall & raised planter 6,600 6' length 650 750 10,500 Bed Prep. & Fine Grading Soil Prep Evergreen Trees Deciduous Trees Lawn, Plantings, and Irrigation Subtotal 9,875 $0.10 89 $35.00 7 $250.00 6 $400.00 9,875 $4.00 $80,977 $988 All lawn & planting areas 3,111 3" depth - all lawn & planting areas 1,750 6' Min. Ht. 2,400 2" Cal., 12' Min. Ht. 39,500 Contingency 10% Note: Estimate does not include grading, drainage, or parking Civil Engineering & New Parking Spaces Landscape & Architectural Fees Annual Maintenance Total $47,748 $12,872 $25,000 $13,440 $6,000 (Annual fee subject to inflation over term of agreement) $186,037 Sources: Jeffrey B. Glander & Associates (Landscape Architecture & Site Planning) Civil Engineer Tri -States Development. LLC. Dale Sweeney, Architect j City of Seattle r Greg Nickels, Mayor Seattle Public Utilities Chuck Clarke, Director May 7, 2007 RECEIVED 'MAY 0 9 2007, utvaopmeir Steve Lancaster SEPA Responsible Official for City of Tukwila 6300 Southcenter Boulevard Tukwila, WA 98188 RE: Determination of Nonsignificance Addendum E06-006 (SEPA/Environmental Review) Demolition Permit UST Removal Permit (D06-075) Gas Station, for Shell Oil Products Dear Mr. Lancaster: Thank you for sending Seattle Public Utilities a copy of your DNS Addendum for this project. This letter is to provide notice that Seattle Public Utilities operates a 60" inch concrete cylinder water transmission pipeline within Andover Park East in the vicinity of this project. This pipeline supplies water to South King County (Including Tukwila and the Airport). I have enclosed a copy of our map book sheets showing the approximate location of the 60" inch concrete cylinder pipeline. If there is to be operation of heavy equipment, excavation or construction performed in the area of our pipe, Seattle Public Utilities should be included in the pre -construction process, plan review and the actual construction. Information needed by SPU • Three copies of scalable Plan, Section and Profile drawings that show the planned improvements in proximity to our pipe. These plans will be reviewed for comment by SPU Operations staff & engineers. • The planned start and finish dates. Information you may need • Record plans of our facilities can be obtained from the City of Seattle Vault which is located at the 47th floor of the Seattle Municipal Tower, 700 5th Ave., Suite 4700, Seattle, 98124. The phone number there is 206-684-5132. • Any work in close proximity to our pipeline (including locating by potholing) must be supervised by SPU. Call SPU's Lake Youngs Headquarters at 206-684-3933 at least 48 hours in advance. • Pipe protection may be necessary if heavy equipment crosses the pipe. Typical temporary bridging would be timbers and steel plate. If anyone connected with this project should need additional information please contact me at 206-684- 5969 or e-mail bob.oambill(a).seattle.gov. Sincerely, Bob Gambill Sr. Real Property Agent Enclosure: Map book page 334 showing approximate location of the Cedar River Pipe Line. Seattle Municipal Tower, 700 Fifth Avenue, Suite 4900, PO Box 34018 Seattle, WA 98104 Tel: (206) 684-5851, TTY/TDD: (206) 233-7241, Fax: (206) 684-4631. Internet Address: http://www.seattle.gov/util/ An equal employment opportunity, affirmative action employer, Accommodations for people with disabilities provided upon request. trti4j.i.g.:11g;];:;;;•.P e• -•.•'S IOtn• t, \ \ ; .... u -s Zu-s =C, c". n. cc 1 I ed / .. 0 ''>. 0 Ki 1. in . 1$' . 0 .• X . ••• C.▪ . •-•.• CC Sal TIUKVVILA PARKWAY cc • %• .0 oc 0 1 -re to, ft ▪ 0 . ............. _ ...... M NIIV4 1/3.ACKINV N) .. • ............. ...4„,_ <:. '.." Co ., • 0›... 6 - • ) 0., • ,i, ‘2,2 i ..';',.• i.....1 _, -I- / ' 0:* ..‘" • _, 3-, ...., ,r- •",..., '',* ' 0 0-. L.1-5 ..0 ..2' ..P ▪ c-... .--, , :-, ,=, • = ..e -:- * ,..„, Il.a..1 ........ eitti of Aiwa a Department Of Community Development AFFIDAVIT OF DISTRIBUTION I, _Teri Svedahl , HEREBY DECLARE THAT: Associated File Number (s): L14-0064 Notice of Application Notice of Decision x Notice of Public Hearing Af(/'7 i)-__, Notice of Public Meeting Determination of Non- Significance Mitigated Determination of Non - Significance Determination of Significance & Scoping Notice Short Subdivision Agenda Notice of Application for Shoreline Mgmt Permit Shoreline Mgmt Permit Board of Appeals Agenda Packet Board of Adjustment Agenda Packet Official Notice Notice of Action Other: Was mailed to each of the addresses listed/attached on this _7th _ day of _November 2014 Project Name: 90 Andover Park East Development Agreement Project Number: PL14-0037 Associated File Number (s): L14-0064 Mailing requested by: Jai ie avis Mailer's signature: Af(/'7 i)-__, W:\USERS\TERI\TEMPLATES-FORMS\AFFIDAVIT OF DISTRIBUTION.DOC U.S. Postal Servics CERTIFIED MAIL,,:, RECEIPT (Domestic Mail Only; No Insurance Coverage Profit For delivery information visit our website at www.usps.como Postage Certified Fee Retum Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endorsement Required) Total Postai Sent To Street, Apt. Ni or PO Box No, City, State, Zit 5tk Department of Ecology NW Regional Office 3190 - 160th Ave. SE Bellevue, WA 98008 PS Form 3800. August 2006 See Reverse for Instructions City of Tukwila Notice of Hearing 90 Andover Park East Development Agreement roject Location Project Description: Public Hearing for a development agreement to use right-of- way to meet parking requirements for a new, 92 -room hotel in exchange for con- struction of a pocket park within the cul-de-sac of Christensen Rd. Applicant: Tukwila TSD LLC Property Owner: John C. Radovich LLC Project Planner: Jaimie Reavis, (206)431-3659 You are welcome to attend and provide testimony on the application at a public hearing on the project scheduled for November24, 2014 at 7:00 p.m. The hearing will take place at 6200 Southcenter Blvd, Tukwila, WA. File; L14-0064 Please call (206) 431-3659 or (206) 431-3670 to confirm the hearing date. You may request a copy of any decision, information on hearings, and your appeal rights by calling 206-431-3659. City of Tukwila Notice of Hearing 90 Andover Park East Development Agreement Project Location Project Description: Public Hearing for a development agreement to use right-of- way to meet parking requirements for a new, 92 -room hotel in exchange for con- struction of a pocket park within the cul-de-sac of Christensen Rd. Applicant: Tukwila TSD LLC Property Owner: John C. Radovich LLC Project Planner: Jaimie Reavis, (206)431-3659 You are welcome to attend and provide testimony on the application at a public hearing on the project scheduled for November 24, 2014 at 7:00 p.m. The hearing will take place at 6200 Southcenter Blvd, Tukwila, WA. File; L14-0064 Please call (206) 431-3659 or (206) 431-3670 to confirm the hearing date. You may request a copy of any decision, information on hearings, and your appeal rights by calling 206-431-3659. City of Tukwila Notice of Hearing 90 Andover Park East Development Agreement Project Location Project Description: Public Hearing for a development agreement to use right-of- way to meet parking requirements for a new, 92 -room hotel in exchange for con- struction of a pocket park within the cul-de-sac of Christensen Rd. Applicant: Tukwila TSD LLC Property Owner: John C. Radovich LLC Project Planner: Jaimie Reavis, (206)431-3659 You are welcome to attend and provide testimony on the application at a public hearing on the project scheduled for November24, 2014 at 7:00 p.m. The hearing will take place at 6200 Southcenter Blvd, Tukwila, WA. File; L14-0064 Please call (206) 431-3659 or (206) 431-3670 to confirm the hearing date. You may request a copy of any decision, information on hearings, and your appeal rights by calling 206-431-3659. City of Tukwila Notice of Hearing 90 Andover Park East Development Agreement Project Location Project Description: Public Hearing for a development agreement to use right-of- way to meet parking requirements for a new, 92 -room hotel in exchange for con- struction of a pocket park within the cul-de-sac of Christensen Rd. Applicant: Tukwila TSD LLC Property Owner: John C. Radovich LLC Project Planner: Jaimie Reavis, (206)431-3659 You are welcome to attend and provide testimony on the application at a public hearing on the project scheduled for November24, 2014 at 7:00 p.m. The hearing will take place at 6200 Southcenter Blvd, Tukwila, WA. File; L14-0064 Please call (206) 431-3659 or (206) 431-3670 to confirm the hearing date. You may request a copy of any decision, information on hearings, and your appeal rights by calling 206-431-3659. AGENCY US ARMY CORP OF ENGINEERS FEDERAL HIGHWAY ADMIN OFFICE OF ARCHAEOLOGY WSDOT NW REGION DEPT OF NATURAL RESOURCES WA STATE COMMUNITY DEV DEPT OF ECOLOGY WA STATE ATTORNEY GENERAL KC ASSESSOR'S OFFICE KC METRO TRANSIT/SEPA OFFICIAL KC DEPARTMENT OF NAT'L RESOURCES FOSTER LIBRARY FOSTER LIBRARY QWEST COMMUNICATIONS SEATTLE CITY LIGHT PUGET SOUND ENERGY SEATTLE PLANNING & DEVELOPMENT CO M CAST BP OLYMPIC PIPELINE SEATTLE PUBLIC UTILITIES WASTE MANAGEMENT KC CHAMBER OF COMMERCE MUCKLESHOOT Cultural Resources Program MUCKLESHOOT Fisheries Program MUCKLESHOOT Wildlife Program DUWAMISH INDIAN TRIBE PUGET SOUND CLEAN AIR AGENCY SOUND TRANSIT/SEPA OFFICIAL DUWAMISH RIVER CLEAN UP COALITION WA ENVIRONMENTAL COUNCIL PEOPLE FOR PUGET SOUND FUTUREWISE attn DEVELOPMENT SERVICES NW REGIONAL OFFICE ECOLOGY DEPARTMENT ACCOUNTING DIVISION ENVIRONMENTAL PLANNING ANDY LEVESQUE ENVIRONMENT & SAFETY DIV WATER DEPARTMENT JALAINE MADURA, SEPA SEATTLE SO. CONVENTION & VISITORS Laura Murphy Karen Walter Mike Middleton SEPA REVIEW UNION STATION address 4735 E MARGINAL WY S 711 S CAPITOL WAY, STE 501 PO BOX 48343 PO BOX 330310, MS 240 PO 47015 PO BOX 48300 3190 160th AVE SE PO BOX 40117 500 4th AVE, RM# 709A 201 S JACKSON ST., MS KSC-TR-0431 201 S JACKSON ST., STE 600 4060 S 144th STREET 4060 S 144th STREET 23315 66th AVE S PO BOX 34023 PO BOX 90868 PO BOX 34019 12645 STONE AVE N 2319 LIND AVENUE SW PO BOX 34018 8111 -1st AVE S 14220 Interurban Ave S # 134 39015 172nd AVE SE 39015 172nd AVE SE 39015 172nd AVE SE 4705 W MARGINAL WAY SW 1904 3rd AVENUE, STE 105 401 S JACKSON STREET 210 S Hudson Street, Ste 332 1402 THIRD AVE, STE# 1400 1402 - 3rd Ave, Ste 1400 816 SECOND AVENUE, STE 200 city st zip SEATTLE WA 98124 OLYMPIA WA 98501 OLYMPIA WA 98504 SEATTLE WA 98133 OLYMPIA WA 98504 OLYMPIA WA 98504 BELLEVUE WA 98008 LACEY WA 98504 SEATTLE WA 98104 SEATTLE WA 98104 SEATTLE WA 98104 TUKWILA WA 98168 TUKWILA WA 98168 KENT WA 98032 SEATTLE WA 98124 BELLEVUE WA 98009 SEATTLE WA 98124 SEATTLE WA 98133 RENTON WA 98055 SEATTLE WA 98124 SEATTLE WA 98108 Tukwila WA 98168 AUBURN WA 98092 AUBURN WA 98092 AUBURN WA 98092 SEATTLE WA 98106 SEATTLE WA 98101 SEATTLE WA 98104 SEATTLE WA 98134 SEATTLE WA 98101 SEATTLE WA 98101 SEATTLE WA 98104 0 0 NAME JAMES NELSON SEATTLE CITY OF SPU-WTR EXTENDED STAY HOTELS STANFORD TUKWILA HOTEL CORP LOWE'S HOME CENTERS LLC JOHN C RADOVICH L L C BETA TUKWILA LLC PIETROMONACO/PB L L C HOME ELECTRIC COMPANY TUKWILA COMMUNITY MEMBER TUKWILA COMMUNITY MEMBER TUKWILA COMMUNITY MEMBER TUKWILA COMMUNITY MEMBER TUKWILA COMMUNITY MEMBER TUKWILA COMMUNITY MEMBER TUKWILA COMMUNITY MEMBER ADDRESS 16113 W VALLEY HWY PO BOX 34018 PO BOX 49550 1610 BOUNDARY BLVD 1000 LOWE'S BLVD NBTA 2835 82ND AVE SE STE 300 18827 BOTHELL WAY NE # 110 7900 SE 28TH ST STE 310 3414 NE 55TH 120 ANDOVER PARK E 116 ANDOVER PARK E 15901 W VALLEY HWY 101 ANDOVER PARK E 112 ANDOVER PARK E 90 ANDOVER PARK E 15635 W VALLEY HWY CITY ST TUKWILA WA SEATTLE WA CHARLOTTE NC AUBURN WA MOORESVILLE NC MERCER ISLAND WA BOTHELL WA MERCER ISLAND WA SEATTLE WA TUKWILA WA TUKWILA WA TUKWILA WA TUKWILA WA TUKWILA WA TUKWILA WA TUKWILA WA ZIP 98188 98124 28277 98001 28117 98040 98011 98040 98105 98188 98188 98188 98188 98188 98188 98188 IC( /1,6 - Full Name Full Primary Address Imagistics International 116 ANDOVER PARK E TUKWILA WA 98188-2901 Pitney Bowes 116 ANDOVER PARK E TUKWILA WA 98188-2998 Wallbeds Northwest 116 ANDOVER PARK E #110 TUKWILA WA 98188-2955 ZZ Business Print & Design 116 ANDOVER PARK E #130 TUKWILA WA 98188-2901 Pitney Bowes 116 ANDOVER PARK E #120 TUKWILA WA 98188-2955 FEDEX OFC & PRINT SVCS #5173 116 ANDOVER PARK E TUKWILA WA 98188-2901 6C-/, a.2felo/s Full Name Full Primary Address Victor's Restaurant 15901 W VALLEY HWY TUKWILA WA 98188-5530 Best Western Southcenter 15901 W VALLEY HWY TUKWILA WA 98188-5530 Best Western River's Edge 15901 W VALLEY HWY TUKWILA WA 98188-5530 Best Western River's Edge 15901 W VALLEY HWY TUKWILA WA 98188-5530 O Sushi & Grill 15901 W VALLEY HWY TUKWILA WA 98188-5530 ARBOR WOODS LLC 15901 W VALLEY HWY TUKWILA WA 98188-5530 GREAT AMERICAN ESTATE ROADSHOW 15901 WEST VALLEY HWY TUKWILA WA 98188-5530 STANFORD TUKWILA HOTEL CORP 15901 WEST VALLEY HWY TUKWILA WA 98188-5530 t/-016 AGENCY LABELS (X) US Corps of Engineers (X )Federal HWY Admin ( ) Federal Transit Admin, Region 10 ( ) Dept of Fish & Wildlife Section 1 FEDERAL AGENCIES ( ) US Environmental Protection Agency (E.P.A.) 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SHORELINE NOD REQUIRES RETURN RECEIPT ( ) Dept of Ecology, SEPA **Send Electronically (X ) Office of Attorney Generali ( ) Office of Hearing Examiner ( ),KC Boundary Review Board ( ) Fire District # 11 ( ) Fire District # 2 ( ) KC Wastewater Treatment Div ( ) KC Dept of Parks & Recreation (x ) KC Assessor's Office Section 3 KING COUNTY AGENCIES ( ) Health Department ( ) Port of Seattle ( ) KC Dev & Enviro Services-SEPA Info Center ( x) KC Metro Transit Div-SEPA Official, Environmental Planning ( ) KC Dept of Natural Resources (x) KC Dept of Natural Resources, Andy Levesque ( ) KC Public Library System X) Foster Library ( ) Renton Library ( ) Kent Library ( ) Seattle Library Section 4 DOLS/LIBRARIES (X) Westfield Mall Library ( ) Tukwila School District ( ) Highline School District ( ) Seattle School District ( ) Renton School District (x .) QWEST Communications 1 (x ) Seattle City. Light (x') Puget Sound Energy ( ) Highline Water District -% (x ) Seattle Planning &Dev/urate_ r.Dept 1 (x ) Comcast 5 UTILITIES (x ) BP Olympic Pipeline ( ) Val-Vue Sewer District ( ) Water District # 20 ( ) Water District # 125 ( ) City of Renton Public Works ( ) Bryn Mawr-Lakeridge Sewer/Water Dist (x. ) Seattle Public. Utilities (x ) Waste Management ( ) Tukwila City Departments ( ) Public Works ( ) Fire ( ) Police ( ) Finance ( ) Planning ( ) Building ( ) Parks & Rec ( ) Mayor ( ) City Clerk Section 6 CITY AGENCIES ( ) Kent Planning Dept ( ) Renton Planning Dept ( ) City of SeaTac ( ) City of Burien ( ) City of Seattle ( ) Strategic Planning *Notice of all Seattle Related Projects ( ) Puget Sound Regional Council (x ) SW KC Chamber of Commerce (x ) iMuckleshoot Indian Tribe * (x ) Cultural Resources (x ) Fisheries Program (x ) Wildlife Program (x ) Duwamish Indian Tribe * Section 7 OTHER LOCAL AGENCIES (x ) Puget Sound Clean Air Agency, (x) Sound Transit/SEPA (x ) Duwamish River Clean Up Coalition *, (x ) Washington Environmental Council (x ) People for Puget Sound * (x) Futurewise * send notice of all applications on Green/Duwamish River ( ) Seattle Times Section 8 MEDIA ( ) Highline Times P:Admin\Admin Forms\Agency Checklist ooD58�U1� �� 9���l� 06b s�'boU 3v�w,c,,)� 1qa1 wv� 22 0006O io<A,‘\1\iN, vy,ooco o \-t_Lt Ap-� ovv /-a_ c qX,1 n 2Z-5 bb6f732) obi o_pkt TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Community Affairs and Parks Committee FROM: Jack Pace, Director Department of Community Development BY: Minnie Dhaliwal, Planning Supervisor DATE: November 4, 2014 SUBJECT: Development Agreement for the proposed hotel at 90 Andover Park East. ISSUE Should the City Council approve the proposed Development Agreement for the proposed hotel development at 90 Andover Park East that would allow the shared use of parking in the right-of- way of Christensen Road in exchange for the construction of a public pocket park? BACKGROUND Tukwila TSD LLC is proposing to develop a new five story hotel at 90 Andover Park East with approximately 90 guest rooms. One parking space per room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District. The developer has submitted a site plan showing that the required number of parking stalls cannot be accommodated on the project site. Therefore the developer is proposing shared use of parking and drive aisle area in the right-of-way of Christensen Road in exchange for developing a public pocket park in the cul- de sac area of Christensen Road. TMC 18.86 allows the City to use development agreements to provide flexibility to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards. DISCUSSION The proposal includes: • Shared use of parking and drive aisle area in the right-of-way of Christensen Road to meet the parking requirements for the proposed hotel at 90 Andover Park East. The developer shall add 18 new parking spaces within the undeveloped right-of-way area adjacent to the hotel site and reconfigure the existing spaces to increase the number of parking spaces in the right-of-way. A total of 45 parking spaces would be available within the right-of-way; out of which 41 will be shared between the hotel use and members of the public with four spaces exclusively reserved for non -hotel users including those who want to access the Green River Trail. • In exchange for the shared parking the developer shall: a) Develop and maintain a public pocket park within the existing cul-de-sac area. b) Maintain the park and the parking area for the term of the agreement. c) Provide public access through the subject property to compensate for the cul-de-sac closure. d) Construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and the Green River Trail. INFORMATIONAL Mk 0 r ' Page 2 • Initial term of 50 years with an option to extend for 30 additional years. • The agreement shall terminate if any of the following terms are not met: a) The applicant fails to submit a complete building permit application for the construction of the hotel within one year; or if the construction is not completed within three years; or if the developer does not comply with maintenance obligations for the park and the parking areas; b) If the property is redeveloped or a change of use occurs; c) If WSDOT widens 1-405 or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park; d) If the developer abandons the project; e) The developer shall renegotiate a new agreement or provide documentation showing how the number of parking spaces required by code will be provided if the hotel use is to continue after the expiration of the agreement. This proposal furthers the following goals and policies of the City's Comprehensive Plan and the Southcenter Subarea Plan: • The Southcenter Subarea Plan envisions that parking will be accommodated by a combination of off- and on -street parking spaces/lots and shared parking facilities within the Transit Oriented Development (TOD) Neighborhood. • The Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize, protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...." • The implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan includes, "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships". • Uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan. The pocket park and shared parking are considered mutually beneficial to the City and the developer for the following reasons: • There are currently only 27 parking spaces in the right of -way area and the proposal will provide 45 parking spaces. • Hotel parking spaces are expected to be used primarily in the evening and night time hours and parking for the trail access is expected to be used during day light hours. • The pocket park will complement the Green River Trail. • The proposal facilitates higher intensity development that is envisioned by the Comprehensive Plan for this area. • The cost of construction and maintenance of the pocket park and the parking spaces will be paid for by the developer in exchange for the shared use of the parking. • Members of the public and emergency vehicles will have access through the hotel parking lot. INFORMATIONAL MEMO; Page 3 FINANCIAL IMPACT There is no financial impact to the City as all costs associated with the development and maintenance of the pocket park and additional parking shall be borne by the developer. The developer's cost estimate for the development of the pocket park and additional parking area (Exhibit C) is $186,037. Also, the annual maintenance costs are anticipated to be $6000 per year and subject to inflation over the term of the agreement. The land value of the right -of -area with the shared parking is $427,575 ($25 per square foot for 17,103 square feet total area). RECOMMENDATION The Council is being asked to approve the development agreement and hold a public hearing on this item at the November 24, 2014, Committee of the Whole meeting and subsequent December 1, 2014, Regular Meeting. ATTACHMENTS Vicinity Map Draft Ordinance Exhibit A- Development Agreement Exhibit 1- Legal Description Exhibit 2 -Conceptual Site Plan Exhibit 3 -Conceptual Site Plan of the Pocket Park; list of park amenities with construction cost estimates; and land value estimates. VICINITY MAP DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TUKWILA AND TUKWILA TSD LLC, FOR THE SHARED USE OF PARKING IN THE RIGHT OF WAY OF CHRISTENSEN ROAD AND THE DEVELOPMENT OF A PUBLIC POCKET PARK AT THE NORTH END OF CHRISTENSEN ROAD, AS IT RELATES TO THE PLANNED DEVELOPMENT OF A HOTEL LOCATED AT 90 ANDOVER PARK EAST I. PREAMBLE THIS DEVELOPMENT AGREEMENT is made and entered into this day of , 2014, by and between the City of Tukwila, a noncharter, optional code Washington municipal corporation, hereinafter the "City," and Tukwila TSD LLC, a (corporation, limited partnership, partnership, etc.) organized under the laws of the State of Washington, hereinafter the "Developer." II. RECITALS WHEREAS, the Developer desires to develop a new five -story hotel at 90 Andover Park East with over 90 guest rooms; and WHEREAS, one parking space per guest room is required for lodging uses in the Tukwila Urban Center Transit Oriented Development District; and WHEREAS, the Developer has submitted a site plan showing the required number of parking stalls for the hotel cannot be accommodated as surface parking on the project site; and WHEREAS, the Developer proposes non-exclusive use of parking and drive aisle area in the right-of-way of Christensen Rd. to meet the parking requirements for the proposed hotel at 90 Andover Park East; and WHEREAS, the City of Tukwila is the owner of the Christensen Rd. right-of-way, which includes undeveloped area adjacent to the project's eastern property line, paved street, parking, and cul-de-sac areas; and WHEREAS, the parking area in the right-of-way of Christensen Rd. is currently used by members of the public for access to the Green River Trail, shoreline, and parks areas; and WHEREAS, hotel parking spaces are expected to be used primarily in the evening and nighttime hours; parking spaces for trail, shoreline, and parks access are expected to be used during daylight hours; and WHEREAS, the Developer proposes to develop and maintain a public pocket park within the cul-de-sac area as outlined in Exhibit B in exchange for use of the other right-of-way areas on the east side of the project site for parking; and 1 WHEREAS, the Developer proposes to add parking spaces within the undeveloped right-of- way area adjacent to the hotel site and to reconfigure existing spaces to increase the number of parking spaces that would be shared for hotel use and the public for access to the Green River Trail; and WHEREAS, all parking spaces within the right-of-way area will be shared and at least four spaces will be designated for non -hotel users to ensure access to the Green River Trail for members of the public; and WHEREAS, the Developer proposes to maintain the parking area within the right-of-way as outlined in Exhibit B for the length of this agreement; and WHEREAS, the vision for parking areas within the Transit Oriented Development (TOD) Neighborhood in the Southcenter Subarea Plan is that "parking will be accommodated by a combination of off- and on -street parking spaces/lots" and shared parking facilities. "Such facilities can be shared between public and private uses" (p. 19); and WHEREAS, the Southcenter Element of Tukwila's Comprehensive Plan includes policy 12.2.1 to "Recognize., protect and enhance the open space network by augmenting existing parks, enhancing access to passive and active recreation areas such as Tukwila Pond, Minkler Pond and the Green River...."; and WHEREAS, the Developer proposes to construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the pocket park and Green River Trail; and WHEREAS, implementation strategies for policy 10.2.1 of the Tukwila Comprehensive Plan include "Look for opportunities for pocket park development" and "Seek opportunities for public/private partnerships; and WHEREAS, a through -way from Andover Park East to Christensen Rd will be constructed as part of the project to replace the emergency vehicle maneuvering function of the cul-de-sac; and WHEREAS, the pocket park will be a City of Tukwila park that will provide mutual benefits to hotel guests and the public; and WHEREAS, uses that provide public access and public recreation are prioritized in the Urban Conservancy Environment in the Shoreline Element of the Tukwila Comprehensive Plan and the proposed development furthers this goal; and WHEREAS, the Washington State Legislature has authorized the execution of a development agreement between a local government and a person having ownership or control of real property within its jurisdiction (RCW 36.70B.170(1)); and 2 / WHEREAS, a development agreement must set forth the development standards and other provisions that shall apply to, govern and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement (RCW 36.70B.170(1)); and WHEREAS, for the purposes of this development agreement, "development standards" includes, but is not limited to, all of the standards listed in RCW 36.70B.170(3); and WHEREAS, a development agreement must be consistent with the applicable development regulations adopted by a local government planning under chapter 36.70A RCW (RCW 36.70B.170(1)); and WHEREAS, TMC Section 18.86.030 explicitly allows for flexibility in development standards applicable to a property developed under a development agreement "to achieve public benefits, respond to changing community needs, or encourage modifications which provide the functional equivalent or adequately achieve the purposes of otherwise applicable City standards"; and WHEREAS, this Development Agreement by and between the City of Tukwila and the Developer (hereinafter the "Development Agreement"), relates to the development known as the 90 Andover Park East Hotel and Pocket Park, which is located at: 90 Andover Park East (hereinafter the "Subject Property"); and WHEREAS, a development agreement must be approved by ordinance or resolution after a public hearing (RCW 36.70B.200); and WHEREAS, a public hearing for this Development Agreement was held on , and the City council approved this Development Agreement by Ordinance on ; and NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows: III. AGREEMENT Section 1. The Proiect. The Project is the development and use of the Subject Property, consisting of 0.39 acres (approximately17,000 square feet) in the City of Tukwila located at 90 Andover Park East and a portion of Christensen Road right-of-way for a ninety-two (92) room five (5) story hotel, a Pocket Park, and forty-five (45) shared parking spaces on Christensen Road right- of-way, as shown on Exhibit B. Section 2. The Subject Property. The Subject Property and right-of-way are legally described in Exhibit A, attached hereto and incorporated herein by this reference. 3 Section 3. Definitions. As used in this Development Agreement, the following terms, phrases and words shall have the meanings and be interpreted as set forth in this Section. a) "Adopting Ordinance" means the Ordinance which approves this Development Agreement, as required by RCW 36.70B.200. b) "Council" means the duly elected legislative body governing the City of Tukwila. c) "Design Guidelines" means the Tukwila Design Manual, as adopted by the City. d) "Director" means the City's Community Development Director. e) "Effective Date" means the effective date of the Adopting Ordinance. f) "Existing Land Use Regulations" means the ordinances adopted by the City Council of Tukwila in effect on the Effective Date, including the adopting ordinances that govern the permitted uses of land, the density and intensity of use, and the design, improvement, construction standards and specifications applicable to the development of the Subject Property, including, but not limited to the Comprehensive Plan, the City's Official Zoning Map and development standards, the Design Manual, the Public Works Standards, SEPA, Concurrency Ordinance, and all other ordinances, codes, rules and regulations of the City establishing subdivision standards, park regulations, building standards. "Existing Land Use Regulation" does not include non -land use regulations, which includes taxes and impact fees. g) "Landowner" is the party who has acquired any portion of the Subject Property from the Developer who, unless otherwise released as provided in this Agreement, shall be subject to the applicable provisions of this Agreement. The "Developer" is identified in Section 5 of this Agreement. h) "Project" means the anticipated development of the Subject Property, as specified in Section 1 and as provided for in all associated permits/approvals, and all incorporated exhibits. i) "Vesting date" means the date a valid and fully complete building permit application for the hotel is submitted to the City of Tukwila. Section 4. Exhibits. Exhibits to this Agreement are as follows: a) Exhibit 1 - legal description of the Subject Property and the right-of-way. b) Exhibit 2 - Conceptual Site Plan c) Exhibit 3 - Conceptual Site Plan of the Pocket Park including a list of park amenities; construction and maintenance cost estimates for the Pocket Park and parking area; and land value estimate for the parking and drive -aisle area of Christensen Road right-of-way. 4 Section 5. Parties to Development Agreement. The parties to this Agreement are: a) The "City" is the City of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188. b) The "Developer" or Owner is a private enterprise which owns the Subject Property in fee, and whose principal office is located at 21109 66th Avenue South, Kent, WA 98032. c) The "Landowner." From time to time, as provided in this Agreement, the Developer may sell or otherwise lawfully dispose of a portion of the Subject Property to a Landowner who, unless otherwise released, shall be subject to the applicable provisions of this Agreement related to such portion of the Subject Property. Section 6. Project is a Private Undertaking. It is agreed among the parties that the Project is a private development and that the City has no interest therein except as explicitly outlined in this Agreement and as authorized in the exercise of its governmental functions. Section 7. Effective Date and Term_. This Agreement shall commence upon the effective date of the Adopting Ordinance approving this Agreement, and shall continue in force for a period of 50 years, with the option to extend the Agreement an additional 30 years, unless extended or terminated as provided herein. Following the expiration of the term or extension thereof, or if sooner terminated, this Agreement shall have no force and effect, subject however, to post -termination obligations of the Developer or Landowner. Section 8. Terms. A. Design • The Project at 90 Andover Park East shall be allowed non-exclusive use rights for the parking spaces and drive aisle area of Christensen Rd (as depicted in Exhibit B) to meet minimum parking requirements for the development. This Agreement shall not preclude the City from entering into additional agreements regarding use of this area by other private parties. The Project will be subject to the development regulations in effect at the time of complete permit application submittals. • The site plan attached as Exhibit B is included with this Agreement for reference only, and has not yet been approved as of the date of execution of this Agreement. The site plan shall be subject to modifications during review of the required land use permits. • As a result of the cul-de-sac closure for use as the pocket park, public access through 90 Andover Park East is hereby allowed and provided for. • The Developer shall construct a pedestrian connection between the intersection of Andover Park East and Tukwila Parkway to the proposed pocket park and the Green River Trail. 5 • All shared parking stalls will be constructed and maintained to Public Works Infrastructure Design and Construction Standards. • The detailed park design meeting the requirements for approval shall be approved by the Director of the City of Tukwila Parks and Recreation Department as part of the building permit approval process. The Conceptual Plan (Exhibit C) shall be revised to address the following items: a) Specific locations of the trash receptacles and the three outdoor exercise pieces shall be noted. b) A short pathway connecting the trails/walkways shall be included. c) Specifications and details of the monument wall and the outdoor exercise equipment shall be preapproved by the Parks Department. B. Construction • The cost of permits and plans required for construction of the park and parking area shall be borne by the Developer and submitted as part of the permits for the hotel. The pocket park must receive final approval by all required City departments prior to issuance of the Certificate of Occupancy for the hotel. • The Developer is responsible to provide any electrical service that may be necessary for the pocket park. C. Maintenance • The pocket park and the parking area shall be subject to inspections every five years. • Developer is solely responsible for the cost and maintenance of the pocket park and the parking spaces. New striping of the parking spaces shall be completed every three years. • A detailed maintenance plan for the pocket park must be submitted and preapproved by the Parks and Recreation Department before acceptance. D. Operations • A total of 92 parking spaces are required for the 92 -room hotel as proposed. The site plan in Exhibit B includes 98 parking spaces. All parking spaces within the right-of-way of Christensen Road shall be for the joint use of the hotel users and members of the public and at least four spaces shall be designated for non -hotel users to ensure access to the Green River Trail for members of the public. 6 Section 9. Vested Rights. During the term of this Agreement, unless sooner terminated in accordance with the terms hereof, in developing the Subject Property consistent with the Project described herein, Developer is assured, and the City agrees, that the development rights, obligations, terms and conditions specified in this Agreement, are fully vested in the Developer and may not be changed or modified by the City, except as may be expressly permitted by, and in accordance with, the terms and conditions of this Agreement, including the Exhibits hereto, or as expressly consented thereto by the Developer. Section 10. Minor Modifications. Minor modifications from the approved permits or the exhibits attached hereto may be approved in accordance with the provisions of the City's code, and shall not require an amendment to this Agreement. Section 11. Further Discretionary Actions. Developer acknowledges that the Existing Land Use Regulations contemplate the exercise of further discretionary powers by the City. These powers include, but are not limited to, review of additional permit applications under SEPA. Nothing in this Agreement shall be construed to limit the authority or the obligation of the City to hold legally required public hearings, or to limit the discretion of the City and any of its officers or officials in complying with or applying Existing Land Use Regulations. Section 12. Existing Land Use Fees and Impact Fees. A. Land use fees adopted by the City by ordinance as of the Effective Date of this Agreement may be increased by the City from time to time, and are applicable to permits and approvals for the Subject Property, as long as such fees apply to similar applications and projects in the City. B. All impact fees shall be paid as set forth in the approved permit or approval, or as addressed in Chapters 16.26 and 9.48 of the Tukwila Municipal Code. IV. GENERAL PROVISIONS Section 1. Assignment of Interests, Rights, and Obligations. This Agreement shall be binding and inure to the benefit of the Parties. No Party may assign its rights under this Agreement without the written consent of the other Party, which consent shall not unreasonably be withheld. This Agreement shall be binding upon and shall inure to the benefit of the heirs, successors, and assigns of the Developer and the City. Section 2. Incorporation of Recitals. The Recitals contained in this Agreement, and the Preamble paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein. Section 3. Severability. The provisions of this Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this Agreement, or the validity of its application to other persons or circumstances. 7 Section 4. Termination. This Agreement shall expire and/or terminate as provided below: A. This Agreement shall expire and be of no further force and effect if the Developer fails to submit a complete building permit application for the construction of the hotel within one year, or if the Project construction is not completed within three years, of the effective date of this Agreement; or if at any time after Project construction is completed, Developer fails to maintain the Pocket Park and the parking areas according to the terms of this Agreement. Nothing in this Agreement shall extend the expiration date of any permit or approval issued by the City for any development. B. This Agreement shall expire and be of no further force and effect if the Developer does not construct the Project as contemplated by the permits and approvals identified in this Agreement, or submits applications for development of the Subject Property that are inconsistent with such permits and approvals. C. This Agreement shall terminate at such time as a change of use occurs at 90 Andover Park East, or at such time as 90 Andover Park East is redeveloped. D. This Agreement shall terminate in the event the Washington State Department of Transportation (WSDOT) widens Interstate 405 in vicinity of the Subject Property, or should any other project or condition arise that requires reconfiguration of Tukwila Parkway, the Project parking area, and/or the Pocket Park. E. This Agreement shall terminate upon the abandonment of the Project by the Developer. The Developer shall be deemed to have abandoned the Project if/when written notice is provided to the City that the Developer's interest in the Project has been terminated. Said notice shall be given to the City no more than thirty (30) days after the Developer's interest in the Project is terminated. F. This Agreement may terminate pursuant to Section IV.3, Severability, or Section IV.10, Default, or as otherwise outlined in this Agreement. G. If the use will continue upon expiration of the term of this Agreement, the Developer shall either negotiate a new agreement with the City or provide documentation showing how the number of parking spaces required by the codes at the time of expiration will be provided. 8 Section 5. Effect upon Termination on Developer Obligations. Termination of this Agreement as to the Developer of the Subject Property or any portion thereof shall not affect any of the Developer's obligations to comply with the City Comprehensive Plan and the terms and conditions or any applicable zoning code(s) or subdivision map or other land use entitlements approved with respect to the Subject Property, any other conditions of any other development specified in the Agreement to continue after the termination of this Agreement or obligations to pay assessments, liens, fees or taxes. Section 6. Effects upon Termination on City. Upon any termination of this Agreement as to the Developer of the Subject Property, or any portion thereof, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the property affected by such termination (provided that vesting of such entitlements, conditions or fees may then be established for such property pursuant to then existing planning and zoning laws). Section_7. Specific Performance. The parties specifically agree that damages are not an adequate remedy for breach of this Agreement, and that the parties are entitled to compel specific performance of all material terms of this Agreement by any party in default hereof. Section 8. Governing Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. Venue for any action shall lie in King County Superior Court or the U.S. District Court for Western Washington. Section 9. Attorneys' Fees. In the event of any litigation or dispute resolution process between the Parties regarding an alleged breach of this Agreement, neither Party shall be entitled to any award of attorneys' fees. Section 10. Notice of DefaultlOpportunity to Cure/Dispute Resolution. A. In the event a Party, acting in good faith, believes the other Party has violated the terms of this Agreement, the aggrieved Party shall give the alleged offending Party written notice of the alleged violation by sending a detailed written statement of the alleged breach. The alleged offending Party shall have thirty (30) days from receipt of written notice in which to cure the alleged breach unless the Parties agree, in writing, to additional time. This notice requirement is intended to facilitate a resolution by the Parties of any dispute prior to the initiation of litigation. Upon providing notice of an alleged breach, the Parties agree to meet and agree upon a process for attempting to resolve any dispute arising out of this Agreement. A lawsuit to enforce the terms of this Agreement shall not be filed until the latter of (a) the end of the cure period or (b) the conclusion of any dispute resolution process. B. After notice and expiration of the thirty (30) day period or other time period as agreed to by the Parties, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other party or Landowner to this Agreement may, at its option, institute legal proceedings pursuant to this Agreement. In addition, the City may decide to file an action to enforce the City's Codes, and to obtain penalties and costs as provided in the Tukwila Municipal Code for violations of this Development Agreement and the Code. 9 Section 11. No Third -Party Beneficiaries. This Agreement is for the benefit of the Parties hereto only and is not intended to benefit any other person or entity, and no person or entity not a signatory to this Agreement shall have any third -party beneficiary or other rights whatsoever under this Agreement. No other person or entity not a Party to this Agreement may enforce the terms and provisions of this Agreement. Section 12. Integration. This Agreement and its exhibits represent the entire agreement of the parties with respect to the subject matter hereof. There are not other agreements, oral or written, except as expressly set forth herein. Section 13. Authority. The Parties each represent and warrant that they have full power and actual authority to enter into this Agreement and to carry out all actions required of them by this Agreement. All persons are executing this Agreement in their representative capacities and represent and warrant that they have full power and authority to bind their respective organizations. Section 14. Covenants Running with the Land. The conditions and covenants set forth in this Agreement and incorporated herein by the Exhibits shall run with the land and the benefits and burdens shall bind and inure to the benefit of the parties. The Developer, Landowner and every purchaser, assignee or transferee of an interest in the Subject Property, or any portion thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Subject Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of a Developer contained in this Agreement, as such duties and obligations pertain to the portion of the Subject Property sold, assigned or transferred to it. Section 15. Amendment to Agreement; Effect of Agreement on Future Actions. This Agreement may be amended by mutual consent of all of the parties, provided that any such amendment shall follow the process established by law for the adoption of a development agreement (see, RCW 36.70B.200). However, nothing in this Agreement shall prevent the City Council from making any amendment to its Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations affecting the Subject Property as the City Council may deem necessary to the extent required by a serious threat to public health and safety. Nothing in this Development Agreement shall prevent the City Council from making any amendments of any type to the Comprehensive Plan, Zoning Code, Official Zoning Map or development regulations relating to the Subject Property. Section 16. Releases. Developer, and any subsequent Landowner, may free itself from further obligations relating to the sold, assigned, or transferred property, provided that the buyer, assignee or transferee expressly assumes the obligations under this Agreement as provided herein. 10 i Section 17. Notices. Notices, demands, correspondence to the City and Developer shall be sufficiently given if dispatched by pre -paid first-class mail to the addresses of the parties as designated in Section 5. Notice to the City shall be to the attention of both the Mayor's Office and the City Attorney. Notices to subsequent Landowners shall be required to be given by the City only for those Landowners who have given the City written notice of their address for such notice. The parties hereto may, from time to time, advise the other of new addresses for such notices, demands or correspondence. Section 18. Reimbursement for Agreement Expenses of the City. Developer agrees to reimburse the City for actual expenses incurred over and above fees paid by Developer as an applicant incurred by City directly relating to this Agreement, including recording fees, publishing fees and reasonable staff and consultant costs not otherwise included within application fees. This Agreement shall not take effect until the fees provided for in this section, as well as any processing fees owed to the City for the Project, are paid to the City. This Agreement shall be terminated if the Developer does not pay to the City the fees provided for in this section. Upon payment of all expenses, the Developer may request written acknowledgement of all fees. Such payment of all fees shall be paid, at the latest, within thirty (30) days from the City's presentation of a written statement of charges to the Developer Section 19. Police Power. Nothing in this Agreement shall be construed to diminish, restrict or limit the police powers of the City granted by the Washington State Constitution or by general law. Section 20. Third Party Legal Challenge. In the event any legal action or special proceeding is commenced by any person or entity other than a party or a Landowner to challenge this Agreement or any provision herein, the City and Developer will collaborate to resolve such legal action. In the event such legal action cannot be resolved, the City may elect to tender the defense of such lawsuit or individual claims in the lawsuit to Developer and/or Landowner(s). In such event, Developer and/or such Landowners shall hold the City harmless from and defend the City from all costs and expenses incurred in the defense of such lawsuit or individual claims in the lawsuit, including but not limited to, attorneys' fees and expenses of litigation, and damages awarded to the prevailing party or parties in such litigation. Neither the City nor the Developer and/or Landowner shall settle any lawsuit without the consent of the other. The City and Developer/Landowner shall act in good faith and shall not unreasonably withhold consent to settle. Section 21. No Presumption Against Drafter. This Agreement has been reviewed and revised by legal counsel for both Parties and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreement. Section 22. Headings. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this Agreement. Section 23. Recording. Developer shall record an executed copy of this Agreement with the King County Auditor, pursuant to RCW 36.70B.190, no later than fourteen (14) days after the Effective Date. 11 Section 24. Legal Representation. In entering into this Agreement, Developer represents that it has been advised to seek legal advice and counsel from its attorney concerning the legal consequences of this Agreement; that it has carefully read the foregoing Agreement and knows the contents thereof, and signs the same of its own free act; and that it fully understands and voluntarily accepts the terms and conditions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the dates set forth below: OWNER/DEVELOPER: CITY OF TUKWILA By By Its Managing Member Its Mayor Tukwila TSD LLC 21109 66th Avenue South Kent, WA 98032 ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day of , 2014, before me personally appeared , to me known to be the individual that executed the within and foregoing instrument, and acknowledged the said instrument to be his/her free and voluntary act and deed for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute said instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 12 / \ STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day of , 2014, before me personally appeared , and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument, and acknowledged as the of the City of Tukwila to be the free and voluntary act of said party for the uses and purposes mentioned in this instrument. Print name: NOTARY PUBLIC in and for the State of Washington Residing at Commission expires: 13 EXHIBIT 1 ExmBrr LEGAL DESCRIPTION OF PROPERTY TRACT 4, ANDOVER INDUSTRIAL PARK NO.1, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 66 OF PLATS, PAGE(S) 36, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THE SOUTH 28 FEET THEREOF; AND EXCEPT THAT PORTION THEREOF CONDEMNED IN ICING COUNTY SUPERIOR COURT CAUSE No. 592245, ACCORDING TO DECREE FILED JANUARY 14,1963. CcKtotb,-} 1) Le_ +c : rs "ILA- r k - •-,,0 C.- A t...o ex-cc_Co : c - t 1- LI! a w 0 z TY LINE TUKWILA PARK_ WAY 107-r i EXHIBIT 2 HOTEL 5 -STORY 59, 170 SQ. FT 92 UNITS ............................. ............................. ............................. ............................. 53 ONSITE PARKING SPACES 4E C C I C I ANDS�C APING SITE PLAN = 5a-0• N RE -STRIPE EXISTING FOR INCREASED PARKING SPACES FROM 24 SPACES TO 27 HOLIDAY I N EXPRESS TULWILA, WA TUKWILA SD L.L.C. Dade Sweeney ARCHITECT 10/31/14 5715 143rd Place S.E. Bellevue, WA 98006 425-260-8969 / \ / PROPOSED POCKET PARK — CHRISTENSEN ROAD Development of the park and parking area will include the installation of: EXHIBIT 3 • New graded area for the park • A circular seating wall • Bike rack • Picnic tables • Waste receptacle • Pathways • Three life trail stations (along the adjacent trail) • Evergreen trees to provide screening between the 65th Avenue S bridge, Tukwila Parkway, and the park • Flowering trees • Restriping 27 parking spaces along the east side of Christensen Road • Striping four spaces at the north end of Christensen Road • New pavement and striping for the development of 14 new spaces along the west side of Christensen Road and four spaces at the north end. • Maintaining the parking area, landscaping, irrigation, and waste disposal for the public pocket park (Includes restriping spaces every three years). • Allowing public access to the hotel site as required for park access and egress • Planned access for emergency vehicles • The pocket park will be included within the open space requirements of the City Municipal Code and Christensen Road and the parking spaces will comply with all relevant codes as well as the American with Disabilities Act (ADA). i % Schematic Cost Estimate ITEM PROPOSED TUKWILA POCKET PARK & PARKING - COST SUMMARY Date: September 4, 2014 QTY. COST TOTAL REMARKS New Concrete Paving Area New Asphalt Paving Area Landscape Area Hardscape Improvements Demolition ($/c.y.) Concrete Walks & Paving ($/s.f.) Asphalt Paving ($/s.f.) Seatwall ($/f.s.f.) Picnic Tables (S/ea.) Bike Rack ($/f.sof ) Trash Receptacles Life Stations ($/f.s.f) Subtotal Landscape Improvements 3,400 700 9,875 2,706 $1.95 3,400 $6.50 700 $3.00 165 $200 3 $2,200 1 $650 1 $750 3 $3,500 $5,277 Sawcut & demo. Existing roadway & curbing 22,100 4" rein. Conc. w/scoring and broom finish 2,100 33,000 18" height, c.i.p.concrete wall & raised planter 6,600 6' length 650 750 10,500 Bed Prep. & Fine Grading Sod Prep Evergreen Trees Deciduous Trees Lawn, Plantings, and Irrigation Subtotal 9,875 $0.10 89 $35.00 7 $2.50.00 6 $400.00 9,875 $4.00 $80,977 $988 All lawn & planting areas 3,1 I 1 3" depth - all lawn & planting areas 1,750 6' Min. Ht. 2,400 2" Cal., 12' Min. Ht. 39,500 Contingency 10% Note: Estimate does not include grading, drainage, or parking Ciw7 Engineering & New Parking Spaces - Right -of -Way Landscape & Architectural Fees Annual Maintenance Total $47,748 $12,872 $25,000 $13,440 $6,000 (Annual fee subject to inflation over term of agreement) $186,037 Sources: Jeffrey B. Glander & Associates (Landscape Architecture & Site Planning) Civil Engineer Tri -States Development. LLC. Dale Sweeney, Architect 1 / Land Value estimate for parking and drive aisle area of Christensen Road Approximate land area including right-of-way (s.f.) 17,103 Developer's contracted land cost per square foot $25.00 Land acquisition cost (If 100% use) $427,575 Proposed pocket park & parking cost estimate $186,037 Pocket park & parking as percentage of total cost 43.5% * Ongoing maintenance and striping costs after initial year go on indefinitely Jaimie Reavis From: Bob Giberson Sent: Thursday, January 09, 2014 1:15 PM To: Jaimie Reavis Cc: Robin Tischmak; Joanna Spencer; Minnie Dhaliwal Subject: RE: Development Agreement - Hotel at SE corner Tukwila Pky and APE FYI, the City Attorney's Office feels the proposed uses are generally in conformance with the WSDOT turnback conditions (deed restrictions). Bob Giberson, P.E. Public Works Director, City of Tukwila 6300 Southcenter Blvd, Suite 100 Tukwila, WA 98188 (206) 433-0179 (main) (206) 431-2457 (desk) The City of opportunity, the community of choice From: Jaimie Reavis Sent: Thursday, January 02, 2014 10:50 AM To: Bob Giberson Cc: Robin Tischmak; Joanna Spencer; Minnie Dhaliwal Subject: RE: Development Agreement - Hotel at SE corner Tukwila Pky and APE Bob, Please send me the information you receive from the City Attorney's Office on whether the pocket park can be considered to be compliance with the agreement we have with WSDOT. Thank you, Jaimie Reavis Assistant Planner l City of Tukwila 6300 Southcenter Blvd, Suite 1001 Tukwila, WA 98188 ph: (206) 431-36591fx: (206) 431-3665 Jaimie.Reavis@TukwilaWA.gov 1 www.tukwilawa.gov The City of opportunity, the community of choice. From: Bob Giberson Sent: Monday, December 30, 2013 12:45 PM To: Jaimie Reavis Cc: Robin Tischmak; Joanna Spencer; Minnie Dhaliwal Subject: RE: Development Agreement - Hotel at SE corner Tukwila Pky and APE 1 Jaimie: See attached highlighted paragraph of Quit Claim Deed. If the City Attorney's Office is comfortable with this pocket park being considered in compliance with the requirement for the conveyed property to be used as "public road purposes and for purposes related thereto...", then Public Works can agree to exchanging the cul-de-sac for ingress/egress easement, storm drainage improvements, conditional use of the right-of-way for parking, etc. I marked up the area of the "T -Line" (Christensen Road) conveyance to show the approximate new centerline of Tukwila Parkway/66th Ave S and the cul-de-sac. Bob Giberson, P.E. Public Works Director, City of Tukwila 6300 Southcenter Blvd, Suite 100 Tukwila, WA 98188 (206) 433-0179 (main) (206) 431-2457 (desk) The City of opportunity, the community of choice From: Jaimie Reavis Sent: Monday, December 23, 2013 11:57 AM To: Bob Giberson Cc: Robin Tischmak; Joanna Spencer; Minnie Dhaliwal Subject: Development Agreement - Hotel at SE corner Tukwila Pky and APE Hi Bob, I left the attached documents on your chair. Please let me know if we should proceed with the development agreement for this project, for use of Christensen ROW for parking and development of a park. Thank you, Jaimie Reavis Assistant Planner I City of Tukwila 6300 Southcenter Blvd, Suite 1001 Tukwila, WA 98188 ph: (206) 431-36591fx: (206) 431-3665 Jaimie.Reavis@TukwilaWA.gov 1 www.tukwilawa.Rov The City of opportunity, the community of choice. 2 QUIT CLAIM DEED State of Washington SR 405 — Green River Interchange Recording No. 8005280642 Planner Map is available upon request from the City Clerk's Office. QUIT CLAIM DEED-- IN THE MATTER OF SR 405 (PSH No. 1), Green River Interchange (Turnbacks) KNOW ALL MEN BY THESE PRESENTS, that the STATE OF WASHINGTON, for and in accordance with that Agreement of the parties entitled GM 913, dated the 4th day of January, 1980, hereby conveys and quitclaims unto THE CITY OF TUKWILA, a municipal corporation of the State of Washington, all its right, title and interest, in and to the following described real property situated in King County, State of Washington: Those portions of Sections 23 and 24, Township 23 North, Range 4 East, W.M., lying within the T -Line right of way of State Highway Route No. 405, and within the Y -Line right of way of said Highway, all as shown hatched on Exhibit "A", being sheet 2 of that certain plan entitled "SR 405, Green River Interchange," attached hereto and by this reference made a part hereof. The grantee herein, its successors or assigns, is subject to and/or will maintain the control of ingress and egress to, from and between the lands herein conveyed and the lands adjacent thereto, as indicated by the prohibition of access symbol appearing on said Exhibit "A". The grantee herein, its successors and assigns, agrees as a condi- tion of this conveyance that the above described property is to be used for public road purposes and for purposes related thereto and, should any portion of those parts of said property that were acquired by the State of Washington for a consideration derived from the state motor vehicle fund be no longer used for public road purposes or such related purposes, all rights in and to such a portion as herein conveyed shall become null and void and title to said portion shall immediately revert to and revest in the grantor herein. The lands herein described are not required for State highway put= poses and are conveyed pursuant to the provisions of Chapter 78, Laws of 1977, First Extraordinary Session. Dated at Olympia, Washington, this 271 day of 19 gO . 1% EXCISE TAX NOT REQUIRED King Co. Records Division By , Deputy STATE OF WASHINGTON. w ��► va.�•x Q W. A. BULLEY, Secretary Transportation I.C. #7-A-00303 Page 1 of 2 Pages APPROVED AS TO FORM: By: Assistah Attorney General REVIEWED AS TO FORM:. N ODN THE CITY OF TUKWILA !'.,•. ,;.r. c:!.. O C CO STATE OF WASHINGTON ) ss County of Thurston On this Z day of %� , 19so, D, before me personally appeared W. A. BULLEY, known to me as the Secretary of Trans- portation, Washington State Department of Transportation, and executed the foregoing instrument, acknowledging said instrument to be the free and voluntary act and deed of the State of Washington, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute said instrument. Given under• my hand and official seal the day and year last above written. SO con • AO qO S. G FILED tor Record at Request 01 x04, V Notary Public in and for the of Washington, residing at Olym rlease return to: STA1T: OF wAs}TING oil Dr'1'n:ti,.x.mt of 'i ran ,t.,i)r1,.:lon Land l,.?'r.iaer.c•.,,t .i:h�iai�.n Highwcr dm:nistr;::: ;;� Cui'ding Olympia. Washington (33504 Page 2 of 2 Pages I.C. 1/7-A-00303