HomeMy WebLinkAboutPCD 2024-05-13 COMPLETE AGENDA PACKETCity of Tukwila
Planning and Community
Development Committee
O Dennis Martinez, Chair
O Tosh Sharp
O Armen Papyan
AGENDA
MONDAY, MAY 13, 2024 — 5:30 PM
Distribution:
D. Martinez
T. Sharp
A. Papyan
Mayor McLeod
M. Wine
A. Youn
L. Humphrey
ON -SITE PRESENCE:
TUKWILA CITY HALL
DUWAMISH CONFERENCE ROOM
6300 SOUTHCENTER BOULEVARD
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Item
Recommended Action
Page
1.
BUSINESS AGENDA
a. Discussion on housekeeping amendments to
a.
Forward to Planning
Pg.1
ADU standards.
Commission
Isaac Gloor, Associate Planner
b. Resolution adopting the 2025 South King Housing
and Homelessness Partners (SKHHP) Work Plan
and Budget.
b.
Forward to 5/20 Regular
Meeting Consent Agenda
Pg.3
Laurel Humphrey, Legislative Analyst
c. Cannabis Retail Considerations.
c.
Discussion Only
Pg.25
Laurel Humphrey, Legislative Analyst
2.
MISCELLANEOUS
Next Scheduled Meeting: June 10, 2024
S. The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance.
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Community Development
FROM: Nora Gierloff, DCD Director
BY: Isaac Gloor, Associate Planner
CC: Thomas McLeod
DATE: May 13, 2024
SUBJECT: Title 18 Housekeeping: Accessory Dwelling Units
ISSUE
Minor housekeeping amendments to Title 18 to update Accessory Dwelling Unit development
standards.
BACKGROUND
In November of 2023, the City Council approved zoning code amendments that altered the
development standards for Accessory Dwelling Units (ADUs) to comply with the recently passed
State Law, known during development as HB 1337. These amendments allow for all parcels
where Single -Family Homes are permitted to now develop up to two ADUs, in either attached or
detached form, without owner occupancy and, if near frequent transit, without additional parking.
Parking standards for single-family homes were not changed, and ADUs are still subject to most
of the same development standards as single-family homes are, including setbacks and
impervious surface limits. While the majority of the changes made were amendments to TMC
18.50, the chapter containing `Supplemental Development Standards', additional areas where
code must be changed to comply with Tukwila's requirements have been identified in the time
since the Council's action.
DISCUSSION
Below is a summary of the identified code sections and proposed changes:
• TMC Table 18-6: Land Uses Allowed by District
o Issue: State law requires that Tukwila permit ADUs anywhere that the City
permits Single -Family Homes. Most of Tukwila's Single -Family Homes are
located within Tukwila's three residential zoning districts: Low -Density
Residential, Medium -Density Residential, and High -Density Residential. The land
use table currently permits ADUs within those districts. However, Tukwila also
permits single-family homes within several other districts, including the Mixed
Use Office (MUO), Office (0), Residential Commercial Center (RCC), and
Neighborhood Commercial Center (NCC) districts. As Table 18-6 does not show
that ADUs are permitted within those districts, Tukwila could not allow a new
ADU to be established within them. This leaves Tukwila out of compliance with
the requirements of State Law.
o Suggested Change: Staff proposes to amend TMC Table 18-6 to include ADUs
as permitted accessory uses within the MUO, 0, RCC, and NCC zoning districts.
While this would permit ADUs within 4 additional zoning districts than what is
currently permitted, the impact is expected to be minor, as these districts do not
currently contain many eligible properties and are unlikely to in the future.
• TMC 18.50.220(B)(3): Accessory Dwelling Unit (ADU) Standards; General Standards
o Issue: This code section establishes the maximum size of detached ADUs,
which, as required by the State, is set at 1000 square feet. However, it also
1
INFORMATIONAL MEMO
Page 2
states that if an ADU is built over a detached garage, the department will not
count the square footage of the detached garage toward the maximum size of an
ADU. While this is accurate, it implies that in other scenarios, the department
would count the square footage of a garage and use that to limit the size of
ADUs. This implicit meaning is unintentional, and if enforced, would violate state
requirements.
o Suggested Change: Staff proposes to amend TMC 18.50.220(B)(3) to remove
the sentence "If built over a detached garage, the detached garage would not
count toward the area limit for the ADU". This change would remove the
implication that other types of garages may count toward ADU area limits. This
sentence is unnecessary, as garages are not habitable and would not count
toward an ADUs floor area in any circumstance.
• TMC 18.50.055(C): Single -Family Dwelling Design Standard Exceptions
o Issue: Washington State allows cities to establish design standards for ADUs,
provided that those standards are no more restrictive than the standards for
single-family dwellings. The TMC does this by establishing design standards for
all new single-family dwellings, as well as accessory dwelling units and other
accessory structures that require a building permit. These standards, as they are
equally applied, comply with State requirements. Prior to the November code
update by Council, Tukwila's Accessory Dwelling Unit standards contained
design requirements that were more restrictive than those for single-family
homes. While those requirements were removed from the code specifically
referencing ADUs, Tukwila's single-family design standards still contain a
reference to the now defunct code section.
o Suggested Change: Staff proposes to correct this scriveners error and remove
TMC 18.50.055(C).
FINANCIAL IMPACT
None.
RECOMMENDATION
The Committee is being asked to forward this issue to the Planning Commission for a
recommendation. It will then be returned to Council in ordinance form for a hearing and
decision.
ATTACHMENTS
None.
2
https://tukwilawa.sharepoint.com/sites/departmentofcommunitydevelopment/DCDPlanning/Current Planning/ISAAC - projects/Zoning Code
Amendments/2024/ADU Housekeeping/PCD Info Memo - ADU Housekeeping.docx
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning & Community Development Committee
FROM: Claire Goodwin , Executive Manager, SKHHP
Laurel Humphrey, Legislative Analyst
DATE: May 7, 2024
SUBJECT: Resolution adopting the 2025 SKHHP Work Plan and Budget
BACKGROUND
The South King Housing and Homelessness Partners (SKHHP) was established through an
interlocal agreement between nine South King County cities and King County to work
together and share resources to increase options for South King County residents to access
affordable housing and preserve existing affordable housing. SKHHP currently has 12
member jurisdictions. Consistent with the SKHHP Interlocal Agreement, the SKHHP 2025
work plan and budget must be adopted by the SKHHP Executive Board and approved by each
member jurisdiction's legislative body.
DISCUSSION
Every year, an annual work plan and budget is developed in collaboration with the SKHHP
Executive Board, Advisory Board, and staff work group to guide the work of SKHHP staff in the
coming year. Pursuant to the SKHHP Interlocal Agreement, each participating jurisdiction
must approve SKHHP's annual budget and work plan. The 2025 Executive Board
recommended work plan was developed through surveys to the Executive and Advisory
Boards on their priorities in February and an interactive in -person discussion with the
Executive Board in March. The draft 2025 work plan and budget was adopted on April 19,
2024 at the Executive Board's regularly scheduled meeting.
The 2025 work plan includes four goals with corresponding action items. Each action item is
prioritized as higher, medium, or lower priority. Indicators are included to measure progress
on the goals. The four goals, which are the same as 2024's goal, include the following:
1. Fund the expansion and preservation of affordable housing
2. Develop policies that expand and preserve affordable housing
3. Serve as an advocate for South King County
4. Manage operations and administration
The 2025 SKHHP operating budget totals $468,237, supporting two full-time staff, and
includes itemization of all categories of budgeted expenses and itemization of each
jurisdiction's contribution, including in -kind services. Operating revenues originate from
SKHHP member contributions. As discussed last year with Council, contributions are
proposed to increase 15% annually for each member jurisdiction through 2026 as approved
by the Executive Board in July 2021 to work towards a balanced budget whereby SKHHP's
revenues can fully support the budgeted expenditures. These projected member
contributions assume no additional staff would be added. Member contributions are based
3
INFORMATIONAL MEMO
Page 2
on population size accordingly, and no members are moving into a new population tier in
2025:
Population tier
2023
Contribution
2024
Contribution
2025
Contribution
2026
Contribution
<10,000
$5,290
$6,084
$6,996
$8,045
10,001- 35,000
$9,919
$11,407
$13,118
$15,085
35,001- 65,000
$19,838
$22,814
$26,236
$30,172
65,000 - 100,000
$34,385
$39,543
$45,474
$52,295
100,000+
$44,965
$51,710
$59,466
$68,386
Salaries and benefits are proposed to increase by 5% in 2025. Interfund IT, which is the
amount paid to SKHHP's administering agency (City of Auburn) for IT services, is proposed to
increase by 11%. Advisory Board compensation, SKHHP staff travel, and supplies remain
unchanged in 2025. Professional services/Misc. is proposed to increase to accommodate
necessary legal assistance for the development and review of SKHHP's housing contracts and
funding documents. This line item also incorporates budgeted expenses for professional
development from 2024 to align with the administering agency's expenditure categories.
SKHHP continues to spend down the fund balance from cost -savings in 2019 and 2020 to
mitigate any additional increases to member contributions.
The 2025 Executive Board recommended operating budget also includes the spend -down of
interest earnings accrued primarily from Housing Capital Fund contributions. Interest earned
between 2019 and 2023 by jurisdiction/entity to be applied to the operating fund balance are
as follows:
Interest Earned by Jurisdiction 2019-2023
Auburn
$8,653
Burien
$6,588
Covington
$8,036
Des Moines
$2,534
Federal Way
$11,276
Kent
$97,962
Maple Valley
--
Normandy Park
$281
Renton
$16,726
SeaTac
--
Tukwila
$975
King County
$488
KCHA
$9
TOTAL
$153,529
4
INFORMATIONAL MEMO
Page 3
To spend the interest earnings requires the approval of each SKHHP member with allocated
accrued interest based on their contributions. With the adoption of the 2025 SKH HP
operating budget which incorporates the interest earnings into the SKHHP operating fund
balance, the City Council is providing authorization for SKHHP to use those funds towards the
operating budget. These funds will assist in future years should there be an economic
recession and members choose to pause an increase in dues.
RECOMMENDATION
Staff recommends Committee approval of the resolution to forward to the May 20, 2024
Regular Consent Agenda.
1. The 2025 SKHHP work plan and budget is consistent with the Interlocal Agreement
and relevant subsequent Companion Agreements between Auburn, Burien,
Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton,
SeaTac, Tukwila, and King County.
2. The 2025 SKHHP work plan and budget incorporates the feedback and priorities of the
SKHHP Executive Board made up of representatives of each participating jurisdiction
and the Advisory Board made up of South King County community members,
representatives of housing organizations, and affordable housing subject matter
experts.
ATTACHMENTS
1.Presentation
2.Draft Resolution
5
6
At
South King Housing and
Homelessness Partners (SKHHP)
2025 Work Plan and Budget
May 13, 2024
SK:I:
CO
id About SKHHP
■ 2019: SKHHP was formed via an Interlocal Agreement
■ Twelve member jurisdictions include:
▪ Auburn Federal Way ° Renton
▪ Burien Kent ° SeaTac
▪ Covington Maple Valley ° Tukwila
▪ Des Moines Normandy Park King County
■ Mission:
• South King County jurisdictions working together and sharing resources to create a
coordinated, comprehensive, and equitable approach to increasing housing stability, reducing
homelessness, and producing and preserving quality affordable housing in South King County.
■ Interlocal agreement requires City Council adoption of annual work plan and budget
SKT'�
itt 2025 Work Plan Development Process
Executive
Board
Survey
Advisory
Board
Survey
Draft review
by Staff
Work Group
Executive
Board
reviews draft
and provides
feedback
Final draft
reviewed by
Advisory
Board and
Staff Work
Group
Final draft
reviewed
and adopted
at April 19
Executive
Board
meeting
Council
adoption
You are here!
SKT'�
O
lilt
likk
2025 Work Plan Goals
• • •
I�
EFL
1. Fund the expansion and preservation of
affordable housing.
2. Develop policies to expand and preserve
affordable housing.
3. Serve as an advocate for South King
County.
4. Manage operations and administration.
I.
id 2025 Operating Budget
• Total operating budget: $468,237
• 68% funds salary and benefits (2 FTEs)
• Revenue:
• Operating revenues come from member jurisdiction annual contributions and based on population tiers
• Executive Board adopted policy in July 2021
• 15% increase in member contributions each year through 2026
• Expenses:
• Professional services/Misc. increasing to accommodate the legal assistance needed for the development
of housing contracts and third -party review of applications
• Incorporates professional development from 2024 budget
• Continuing to spend down cost savings from first two years to balance additional
contribution increases
• Interest earnings incorporated into operating fund balance
SKD
N
jAt Operating Contributions by Population
Member
Jurisdiction
Population Tier
2023
Contribution
2024
Contribution
2025
Contribution
2026
Contribution
<10,000
$5,290
$6,084
$6,996
$8,045
10,001 — 35,000
$9,919
$11,407
$13,118
$15,085
35,001 — 65,000
$19,838
$22,814
$26,236
$30,172
65,000 —100,000
$34,385
$39,543
$45,474
$52,295
100,000+
$44,965
$51,710
$59,466
$68,386
#1, Population by City and Year
SKHHP Member Jurisdictions Population
(OFM 2021 estimate)
Total: 83,950
Auburn
KC: 73,901
Burien 53,290
Covington 20,890
Des Moines 32,820
Federal Way 99,590
Kent 132,400
Maple Valley
Normandy Park 6,740
Renton 106,500
Tukwila 21,970
King County (unincorporated)
Population
(OFM 2022 estimate)
Total: 88,750
KC: 78,690
52,490
21,200
33,160
101,800
137,900
28,920
6,790
107,500
22,620
248,160
Population Population
(OFM 2023 estimate) (OFM 2024 estimate)
Total: 88,820
KC: 78,760
52,560
21,600
33,260
102,000 Data not published
139,100 until June 28, 2024
29,250
6,840
107,900
22,780
249,060
SK:I:
South King Mousing and Homelessness Partners
leth Projected Budget 2024-2026
2024 2025 2026
Estimated beginning fund balance $ 394,534
$ 344,131 $ 285,588
REVENUES
Auburn $ 39,543 $ 45,474 $ 52,295
Burien $ 22,814 $ 26,236 $ 30,171
Covington $ 11,407 $ 13,118 $ 15,086
Des Moines $ 11,407 $ 13,118 $ 15,086
Federal Way $ 51,710 $ 59,466 $ 68,386
Kent $ 51,710 $ 59,466 $ 68,386
Maple Valley $ 11,407 $ 13,118 $ 15,086
Normandy Park $ 6,084 $ 6,996 $ 8,045
Renton $ 51,710 $ 59,466 $ 68,386
SeaTac $ 10,456 $ 13,118 $ 15,086
Tukwila $ 11,407 $ 13,118 $ 15,086
King County $ 51,710 $ 59,466 $ 68,386
Additional King County $ 23,290 $ 15,534 $ 6,614
Interest earnings $ 2,100
Office space (in -kind donation) $ 12,000 $ 12,000 $ 12,000
TOTAL REVENUES $ 368,755 $ 409,694 $ 458,098
Spend down balance $ 50,403 $ 58,543 $ 40,285
TOTAL EXPENSES $ 419,158 $ 468,237 $ 498,383
SK:I:
South King Mousing and Homelessness Partners
DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, ADOPTING THE SOUTH
KING HOUSING AND HOMELESSNESS PARTNERS'
2025 WORK PLAN AND 2025 OPERATING BUDGET.
WHEREAS, on February 21, 2019, the City of Tukwila entered into an Interlocal
Agreement (ILA) with 8 other south King County cities and King County to form the South
King Housing and Homelessness Partners (SKHHP); and
WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must
approve an annual work plan each year to guide the work of SKHHP staff; and
WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must
approve SKHHP's annual budget that includes an itemization of all categories of
budgeted expenses and itemization of each Party's contribution, including in -kind
services; and
WHEREAS, the purpose of the annual work plan and budget is to provide
management and budget guidance, and to implement the overarching SKHHP goals to
work together and share resources to increase the available options for south King
County residents to access affordable housing and to preserve the existing affordable
housing stock; and
WHEREAS, the 2025 work plan includes four goals with corresponding action items
that further SKHHP's mission; and
WHEREAS, on April 19, 2024, the SKHHP Executive Board adopted Resolution No.
2024-02 enacting the 2025 SKHHP Work Plan and Operating Budget effective upon
approval by the legislative body of each party;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
2024 Legislation: 2025 SKHHP
Version: 05/6/2024
Staff: L. Humphrey
Page 1 of 2
15
Section 1. The City Council adopts the 2025 South King Housing and Homelessness
Partners Work Plan and 2025 Operating Budget, hereby incorporated by reference as
"Attachment A."
Section 2. The City of Tukwila will transmit its annual contribution to SKHHP during
the first quarter of each calendar year.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2024.
ATTEST/AUTHENTICATED:
Andy Youn, CMC, City Clerk Mohamed Abdi, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Office of the City Attorney
Attachment A: South King Housing and Homelessness Partners Resolution No. 2024-
02, Adopting the 2025 SKHHP Work Plan and Operating Budget
2024 Legislation: 2025 SKHHP
Version: 05/6/2024
Staff: L. Humphrey
Page 2 of 2
16
RESOLUTION NO. 2024-02
A RESOLUTION OF THE EXECUTIVE BOARD OF THE SOUTH KING HOUSING AND
HOMELESSNESS PARTNERS (SKHHP), ADOPTING THE 2025 SKHHP WORK PLAN AND
OPERATING BUDGET
WHEREAS, pursuant to the Interlocal Agreement, the SKHHP Executive Board approves
an annual work plan and budget each year to guide the work of SKHHP staff; and
WHEREAS, pursuant to the Interlocal Agreement, the annual budget includes an
itemization of all categories of budgeted expenses and itemization of each Party's contribution,
including in -kind services; and
WHEREAS, upon adoption by the Executive Board, the annual work plan and budget will
be transmitted to each participating jurisdiction for approval by their legislative body; and
WHEREAS, the budget will not become effective until approved by the legislative body of
each jurisdiction and adopted by the SKHHP Executive Board; and
WHEREAS, if a party does not approve the work plan or budget in a timely manner, the
Executive Board may adopt the budget and work plan with a two-thirds majority vote; and
WHEREAS, the purpose of the annual work plan and budget is to provide management
and budget guidance, and implement the overarching SKHHP mission to work together and
share resources to increase the available options for South King County residents to access
affordable housing and to preserve the existing affordable housing stock; and
WHEREAS, the 2025 work plan includes four goals with corresponding action items that
further SKHHP's mission.
NOW, THEREFORE, THE EXECUTIVE BOARD RESOLVES as follows:
Section 1. The Executive Board adopts the 2025 SKHHP Work Plan in Attachment A.
Section 2. The Executive Board adopts the 2025 SKHHP Operating Budget in Attachment B.
Section 3. Each party's contribution to SKHHP's operating budget will be transmitted on an
annual basis during the first quarter of the calendar year.
Section 4. This Resolution will take effect and be in full force upon approval by the legislative
body of each participating jurisdiction.
Dated and signed this day of , 2024.
NANCY BACKUS, CHAIR, SOUTH KING HOUSING AND HOMELESSNESS PARTNERS
Resolution No. 2024-02
April 19, 2024
Page 1 of 7
17
RESOLUTION 2024-02 — ATTACHMENT A
SKHHP 2025 WORK PLAN
PURPOSE
Establish a 2025 SKHHP work plan and budget that is guided by Executive Board priorities, is
consistent with the SKHHP Interlocal Agreement, and furthers SKHHP's mission.
BACKGROUND
Established by an interlocal agreement, SKHHP jurisdictions work together and share resources to
increase options for South King County residents to access affordable housing and preserve existing
affordable housing. The 2025 SKHHP work plan builds on work done in previous years and was
developed in collaboration with the Executive Board, Advisory Board, and staff work group.
The work plan is organized into four goals with corresponding action items. Each action is identified by
priority as follows:
• Higher — Identified as higher priority by Executive Board or is necessary to carry out the Interlocal
Agreements
• Medium — Identified as mid -level priority
• Lower — Identified as lower priority
Quarterly budget and progress reports on the status of the work plan elements will be submitted to the
SKHHP Executive Board and the legislative body of each member jurisdiction as follows:
Quarter 1: May I Quarter 2: August I Quarter 3: November I Quarter 4: February
In accordance with the Interlocal Agreement, the 2025 SKHHP work plan and budget will be approved
by the SKHHP Executive Board and the legislative body of each member jurisdiction.
SKHHP MISSION
South King County jurisdictions working together and sharing resources to create a coordinated,
comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and
producing and preserving quality affordable housing in South King County.
GOALS & ACTIONS
Goal
Actions
1.
Fund the expansion and preservation of
affordable housing.
1 through 5
2.
Develop policies to expand and preserve
affordable housing.
6 through 10
3.
Serve as an advocate for South King County.
11 through 15
4.
Manage operations and administration.
16 through 20
Resolution No. 2024-02
April 19, 2024
Page 2 of 7
18
Goal 1
Fund the expansion and preservation of affordable housing.
Actions
Priority of Actions
••• = Higher
•• = Medium
• = Lower
1. Pool resources from member cities for the Housing Capital Fund,
including SHB 1406 funds, HB 1590 funds, and general funds.
•••
2. Develop and execute contract documents and covenants for projects
ready to move forward (Burien Family Housing — 2022; Kent
Multicultural Village — 2023; Skyway Affordable Housing and Early
Learning Center — 2023).
•••
3. Facilitate approval from participating Councils of recommended
projects from 2024 Housing Capital Fund funding round and preparing
contract documents and covenants if any projects are ready to move
forward.
•••
4. Manage 2025 Housing Capital Fund funding round including adopting
annual guidelines, updating application materials, soliciting proposals,
and facilitating project selection.
•••
5. Encourage investment in South King County by private investors,
lenders, and philanthropies.
••
Indicators
o Number of housing units or number of projects funded with financial support from SKHHP
o Number of housing units preserved with financial support from SKHHP
o Total dollar amount pooled by member jurisdictions for Housing Capital Fund
o Total dollar amount from new sources of revenue added to the Housing Capital Fund
o Geographic diversity of applications received for annual Housing Capital Fund funding round
Resolution No. 2024-02
April 19, 2024
Page 3 of 7
19
AtL
Goal 2
Develop policies to expand and preserve affordable housing.
Actions
Priority of Actions
••• = Higher
•• = Medium
• = Lower
6. Facilitate implementation of any subregional housing preservation
strategies.
•••
7. Facilitate technical assistance and updates to the Affordable Housing
Inventory Dashboard.
•••
8. Build relationships with developers to learn from their perspective the
ways to encourage housing development, especially affordable housing.
••
9. Convene land use planners to increase coordination and collaboration
on housing policy and planning.
•
10. Develop SKHHP Executive Board briefings on key housing and
homelessness topics, especially as they relate to the goals of the work
plan.
•
Indicators
o Number of subregional housing preservation strategies facilitated or supported
o Successful update of data to the Affordable Housing Inventory Dashboard
o Number of relationships built with developers
o Number of Executive Board briefings on key housing and homelessness topics
Resolution No. 2024-02
April 19, 2024
Page 4 of 7
20
• • •
Goal 3
Serve as an advocate for South King County.
Actions
Priority of Actions
••• = Higher
•• = Medium
• = Lower
11. Coordinate with the Advisory Board in collaboration with housing
organizations and stakeholder groups to provide education and
engagement opportunities for elected officials and community
members.
••
12. Work collaboratively with public funders at the state and local levels to
promote shared affordable housing goals and equitable geographic
distribution of resources.
• •
13. Represent SKHHP at relevant local and regional meetings and forums
that help advance SKHHP's mission and provide a voice for increasing
access to safe, healthy, and affordable housing in South King County.
•
14. Meet with legislators as opportunities arise to inform about SKHHP's
mission, goals, and the Housing Capital Fund.
•
15. Connect affordable housing developers with property owners who
intend to sell naturally occurring affordable housing in coordination
with member cities.
•
Indicators
o Number of events or engagement opportunities Advisory Board members organize or
support
o Number of meetings, forums, or events attended that advance SKHHP's mission
o Number of meetings with legislators that promote SKHHP and South King County
o Number of affordable housing developers connected with property owners intending to sell
naturally occurring affordable housing
Resolution No. 2024-02
April 19, 2024
Page 5of7
21
ER -
NM
Goal 4
Manage operations and administration.
Actions
Priority of Actions
••• = Higher
•• = Medium
• = Lower
16. Develop annual work plan and budget.
•••
17. Generate and distribute quarterly progress reports to SKHHP Executive
Board and member jurisdictions.
•••
18. Work with administering agency to maintain records and produce
regular financial reports for the SKHHP Housing Capital Fund and SKHHP
Operating Account.
•••
19. Organize and host monthly Executive and Advisory Board public
meetings.
•••
20. Maintain and update the SKHHP website.
••
Indicators
o Work plan and budget adopted
o Quarterly progress reports prepared and presented to Executive Board
o Financial reports and public records maintained
o Monthly Executive and Advisory Board meetings held
o Website maintained
Resolution No. 2024-02
April 19, 2024
Page 6 of 7
22
RESOLUTION 2024-02 — ATTACHMENT B
2025 SKHHP Operating Budget
Estimated beginning fund balance - January 1, 2025 $ 344,131
Estimated ending fund balance - December 31, 2025 $ 285,588
REVENUES
Auburn $ 45,474
Burien $ 26,236
Covington $ 13,118
Des Moines $ 13,118
Federal Way $ 59,466
Kent $ 59,466
Maple Valley $ 13,118
Normandy Park $ 6,996
Renton $ 59,466
SeaTac $ 13,118
Tukwila $ 13,118
King County* $ 59,466
Additional King County* $ 15,534
Office space (in -kind donation) $ 12,000
TOTAL REVENUES $ 409,694
Spend down balance $ 58,543
TOTAL $ 468,237
EXPENSES
Salaries and benefits $ 320,611
Interfund IT $ 35,000
Advisory Board compensation $ 14,400
Office space (in -kind donation) $ 12,000
Professional services/Misc. $ 37,500
Travel $ 5,250
Supplies $ 2,000
Subtotal $ 426,761
Administering agency - 10% admin fee** $ 41,476
TOTAL $ 468,237
*King County contribution based on the population of unincorporated King County is shown as increasing at the same rate as other partner
jurisdictions and the additional allocation decreasing to maintain a total contribution of $75,000 per year.
**10% administrative fee is calculated as a percentage of operating costs which excludes in -kind donations and carry -forwards.
Resolution No. 2024-02
April 19, 2024
Page 7 of 7
23
24
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning & Community Development Committee
FROM: Laurel Humphrey, Legislative Analyst
CC: Mayor McLeod
DATE: May 1, 2024
SUBJECT: Cannabis Retail Zoning Considerations
ISSUE
The City Council requested a briefing on considerations regarding expanding zoning for cannabis
retail establishments.
BACKGROUND
Initiative 502 passed in November 2012 and created a comprehensive regulatory approach on
cannabis with state -licensed producers, processors and retailers. Initiative 502 received a yes vote in
all but one Tukwila precinct. HB 2870 created a Marijuana Social Equity Program in 2020 to address
historic racial inequity in enforcement of marijuana laws. In 2022 2SHB 1210 replaced all references to
"marijuana" in state statutes and regulations with the word "cannabis."
• On September 3, 2013, the City Council adopted Ordinance 2407 to implement Initiative 502,
determining that cannabis retailers, producers and processors are permitted uses in Tukwila
Valley South and Heavy Industrial Zones, subject to the 1,000-foot exclusion rule.
• In 2015, 2SSB 5052 and HB 2136 allowed cities to reduce buffers from 1000 to 100 feet around all
entities except elementary and secondary schools and public playgrounds.
• In 2017, the City Council received two separate requests to expand permitted cannabis retail
zones but denied both on February 13, 2017.
• In September 2019, the Finance Committee discussed revenue and zoning considerations and
decided against recommending any changes to the City Council at that time.
• In June 2021, the Finance & Governance Committee discussed revenue potential and decided
against recommending any changes to the City Council.
DISCUSSION
Zoning
Currently, cannabis retail, production and processing are only permitted in the Tukwila Valley South
and Heavy Industrial Zones. (Read more in the 8/26/13 staff report).
Current Licenses
Through the 1-502 rulemaking process, the Liquor and Cannabis Board adopted regulations on the
number of retail store licenses for jurisdictions, determining a maximum of two for Tukwila. All
cannabis licensing is regulated and enforced by the Washington State Liquor and Cannabis Board.
There are currently active licenses for Tukwila's two retail allotments: Mount Baker Retail Partnership,
LLC (12539 E Marginal way S) and Dash & Wrigley LLC (13003 Tukwila International Boulevard).
Neither of these are operating. Licensed retailers are required to be open and operational, but
licenses can be held without opening if they obtain a title certificate relieving them of the requirement
to be open based on a moratorium, ban, or other zoning restriction, or if the business is temporarily
discontinued while they move locations.
25
INFORMATIONAL MEMO
Page 2
Sales and Excise Tax Revenue
The state cannabis excise tax and its distribution has changed over time and can be altered in any
future legislative session. The State currently taxes cannabis through a single excise tax of 37% at the
time of retail sale, in addition to the regular state and local sales tax, and $30M of that revenue is
shared with cities, towns and counties. There are two components to the distributions: 1) per capita
share to all jurisdictions that allow the siting of producers, processors and retailers; 2) retail share to
all jurisdictions where licensed retailers are physically located and in proportion to total statewide
retail sales. Tukwila does not have any cannabis businesses and therefore does not receive sales -
based revenue. Tukwila's per capita distribution has been:
Year*
Revenues
2023
36,302
2022
32,334
2021
24,013
2020
23,479
2019
23,123
2018
23,364
*State Fiscal Year: July 1 - June 30
Beyond the excise tax, cannabis retail operations would generate sales tax. For every $1 million in
cannabis sales, the City could expect to receive $8,585 in sales tax revenue. Staff looked up average
retail sales within 5-miles of a cannabis retailer in the Ikea District of Renton, and for Jan -December
2023 the average per store was $4.1 million. Hypothetically, if two retailers in Tukwila had combined
yearly sales of $8M, the City would receive $68,680 of sales tax in addition to the increased excise
revenue described above.
It is difficult to estimate what Tukwila would receive for its tax share if the two state -issued licenses
were active businesses. The excise tax formula depends not only on population but also on cannabis
retail sales as a proportion of total retail sales, as well as the number/total population of cities and
counties that prohibit marijuana. MRSC used to offer an estimate calculator but discontinued it due
to complexity of the formula. While the revenue potential is difficult to predict, we can look to
neighboring jurisdictions for insight, while recognizing that their larger residential populations result
in greater shares than Tukwila would receive in similar circumstances. The chart below shows the
2023 cannabis excise revenue for neighboring cities with open retailers:
City (number of locations)
Population
2023 Cannabis Revenue*
Burien (2)
50,216
$163,047
Auburn (4)
83, 757
$246,135
Des Moines (2)
32, 177
$123,131
Renton (4)
102,716
$295,597
*State Fiscal Year: July 1 - June 30
26
INFORMATIONAL MEMO
Page 3
Crime & Safety around Retail Locations
Cannabis stores are frequent targets for theft, typically in the form of armed robberies or smash and
grab burglaries, due to federal banking restrictions that require them to do business primarily in cash.
Congress has been working on the SAFER (Secure and Fair Enforcement Regulation) Banking Act
which would address this issue, and has shown bipartisan support. In Washington State, a bill that
would have added a 12-month sentence enhancement for smash and grab convictions was
introduced but not passed in the most recent state legislative session.
40
35
30
25
20
15
10
5
0
Smash and Grab Burglaries, WA State
Cannabis Stores
2017 2018 2019 2020 2021 2022 2023
Source: Uncle Ike's i502 Robbery Tracker
The below table shows calls for service at certain retailers in nearby cities from 2019-2023.
Auburn
Burien
Des Moines
Renton
Evergreen Market
Lucid
The Stash Box
The Joint
Kush 21
Greenside
Buddy's
Emerald Haze
Evergreen Market North
Evergreen Market South
2019
47
22
16
17
33
83
20
35
38
33
2020
36
39
20
19
44
78
13
40
17
36
2021
48
15
21
18
34
69
17
30
13
39
2022
56
14
16
21
36
52
20
28
12
30
2023
55
18
14
16
20
64
17
33
14
35
Through the code update process the City Council could consider establishing permitting
requirements designed to address theft and crime concerns.
RECOMMENDATION
This is intended to provide a discussion opportunity for the Committee. If a majority of the City
Council wishes to update the zoning for cannabis -related business, it is a significant work item that
would require ordinance development, Planning Commission review, and a public outreach and
hearing process. This could be added to the Department of Community Development work plan for
the second half of 2025, following the adoption of the Comprehensive Plan and updated middle
housing regulations.
ATTACHMENTS
Cannabis Excise Tax Excerpt from Revenue Guide for Washington Cities & Towns
Map (distributed separately)
27
CANNABIS (MARIJUANA) EXCISE TAX
Quick Summary
• A portion of the state's cannabis excise tax is distributed to cities and counties depending on their
cannabis policies.
• Two separate components:
Per capita share distributed to all cities and counties that do not prohibit cannabis businesses.
Retail share distributed to cities and counties where cannabis retailers are located, in proportion
to statewide cannabis revenues.
• No clear guidance on use of revenues, but stated intent of 1-502 is that cannabis legalization will
"[allow] law enforcement resources to be focused on violent and property crimes [and generate] new
state and local tax revenue for education, health care, research, and substance abuse prevention."
RCW: 69.50.540(2)(g)
Initiative 502 (1-502), which was approved by voters in 2012, legalized recreational cannabis and authorized
cannabis excise taxes. Cannabis excise taxes are imposed and collected by the State of Washington; as of
2022, the state imposes a 37% cannabis excise tax on the retail sale of cannabis, cannabis concentrates, and
cannabis -infused products (RCW 69.50.535 and WAC 314-55-089).
Cities and counties may not impose additional local excise taxes upon the sale of cannabis. However, the
state shares some of the excise tax revenues with cities and counties, as mandated by 1-502.44 Beginning
in 2022, counties receive a percentage of the excise tax revenues (after various deductions), which means
these revenues will fluctuate with cannabis sales activity. Previously, the excise tax distributions were fixed by
legislative appropriation.
Cannabis excise tax distributions depend in significant part upon local cannabis policies and regulations. The
regulatory approach that each county adopts, as well as the number of cannabis retailers located within each
county's unincorporated areas, will determine whether the county receives any cannabis excise tax revenue
(and how much).
Eligibility and Distribution Formula
There are two separate components to cannabis excise tax distributions:
• Per capita share: Distributed on a strictly per capita (population) basis to all cities, towns, and counties that
allow the siting of cannabis producers, processors, AND retailers. Any jurisdiction that prohibits cannabis
producers, processors, OR retailers is not eligible.
• Retail share: Distributed to all cities, towns, and counties where licensed cannabis retailers are physically
located, and in proportional share to total statewide cannabis retail sales. For counties, the retail share only
includes unincorporated areas only and does not include any retailers physically located in any city located
within the county.
44 The intent of 1-502 states, among other things, that it will "[generate] new state and local tax revenue" [emphasis added],
although it does not specify how the revenue will be shared with local governments or how much will be shared.
Table of Contents
28 Revenue Guide for Washington Counties I NOVEMBER 2023
131
The different distribution formulas mean that some jurisdictions will receive both the per capita and retail
distributions, while others may receive only one or the other, and some jurisdictions will receive neither. The
chart below shows a few hypothetical scenarios to illustrate the differences.
Hypothetical Cannabis Excise Tax Distribution Scenarios
County allows cannabis production, processing, and retail and has at
least one retailer located within the unincorporated area.
County prohibits cannabis entirely and has no retailers located within
the unincorporated area.
County took no action to prohibit cannabis, but no cannabis retailers
are located within the unincorporated area.
County prohibits cannabis producers and processors but allows retailers
and has at least one retailer located within the unincorporated area.
County currently prohibits new cannabis businesses but has existing
retailers within unincorporated areas that are grandfathered in.
County prohibits cannabis retail and has no retailers within the
unincorporated area but allows cannabis production and processing.
Eligible for per
capita share?
Yes
No
Yes
No
No
No
Eligible for
retail share?
Yes
No
No
Yes
Yes
No
Each year by September 15, the LCB must provide the state treasurer with the annual distribution amount for
each county and city. For the most recent legislative appropriations and distribution estimates, refer to our
annual Budget Suggestions publication, released every year at the end of July.
Use of Revenues
The restrictions on the use of cannabis excise tax revenues are somewhat murky, as there is no clear statute
stating how the funds must be used. However, the notes in RCW 69.50.540 reference RCW 69.50.101 and the
stated intent of 1-502, which states that cannabis legalization will "[allow] law enforcement resources to be
focused on violent and property crimes [and generate] new state and local tax revenue for education, health
care, research, and substance abuse prevention."
Timing of Receipts
Payments are distributed quarterly on the last business day of March, June, September, and December. The
State Treasurer's Office distributes both the "per capita" and "retail" shares together in one payment using
the same BARS code.
Table of Contents
Revenue Guide for Washington Counties I NOVEMBER 2023
132 29
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