Loading...
HomeMy WebLinkAboutReg 2025-11-17 COMPLETE AGENDA PACKET2 Tukwila City Council Agenda ❖ REGULAR MEETING ❖ ILA-4,- L4 ;s di 90 Thomas McLeod, Mayor Councilmembers •:• Mohamed Abdi •:• Armen Papyan Marty Wine, CityAdministrator •:• Dennis Martinez •:• Hannah Hedrick Tosh Sharp, CounciiPresident •:• Verna Seal •:• Joe Torres Camacho ON -SITE PRESENCE: TUKWILA CITY HALL COUNCIL CHAMBERS 6200 SOUTHCENTER BOULEVARD REMOTE PARTICIPATION FOR THE PUBLIC: 1-253-292-9750, ACCESS CODE: 670077847# Click here to: Join li icrosoft (realms IlI4eetlilnmg For Technical Support: 1-206-433-7155 Monday, November 17, 2025; 7:00 PM 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL 2. LAND ACKNOWLEDGEMENT The City of Tukwila is located on the ancestral lands of the Coast Salish people. We acknowledge their continuing connections to land, waters and culture. We pay our respects to their elders past, present and emerging. 3. PUBLIC COMMENTS including comment on items both on and not on the meeting agenda Those wishing to provide public comments may verbaiiy address the City both on -site at Tukwila City Haii or via phone or Microsoft Teams for up to minutes for items both on and not on the meeting agenda. To provide comment via phone or Microsoft Teams, please email citycounciI tukwilawa.gov with your name and topic by 5:00 p.m. on the Council 5 meeting the date. Please cdeariy indicate that your message is for public comment during meeting, and you wiii receive further instructions. 4. PRESENTATIONS a. Budget Sustainability Update Presentation by Marty Wine, City Administrator Pg.1 5. CONSENT AGENDA a. Approval of Minutes: 11/03/25 (Regular Mtg.) b. Approval of Vouchers c. A resolution of the City Council of the City of Tukwila, Washington, ratifying the appointment of the city's hearing examiner pursuant to Tukwila Municipal Code Chapter 2.76 to preside over hearings related to land use, code enforcement, police forfeitures, and other matters as specified in the Tukwila Municipal Code; ratifying the process for future hearing examiner appointments; and repealing resolution no. 1971. [Reviewed and forwarded to consent by the Planning & Community Development Committee on 11/10/251 Pg.23 6. UNFINISHED BUSINESS a. An ordinance of the City Council of the City of Tukwila, adopting a development agreement between the City of Tukwila, Segale Properties LLC, MAS Tukwila LLC, and their successors and assigns for the Prato District Project (formerly known as the Tukwila South project). Pg.27 7. REPORTS a. Mayor b. City Council c. Staff — City Administrator Report Pg.119 REGULAR MEETING November 17, 2025 Page 2 8. MISCELLANEOUS 9. ADJOURNMENT This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio/video taped, and available at www.tukwilawa.gov If you are in need of translation or interpretation services at a Council meeting, please contact us at 206-433-1800 by 12:00 p.m. on the meeting date. WELCOME TO THE TUKWILA CITY COUNCIL MEETING The Tukwila City Council encourages community participation in the local government process and welcomes attendance and public comment at its meetings. MEETING SCHEDULE Regular Meetings are held at 7:00 p.m. on the 1st and 3rd Mondays of each month. The City Council takes formal action in the form of motions, resolutions and ordinances at Regular Meetings. Committee of the Whole Meetings are held at 7:00 p.m. on the 2nd and 4th Mondays of each month. The City Council considers current issues, discusses policy matters in detail, and coordinates the work of the Council at Committee of the Whole meetings. PUBLIC COMMENTS Members of the public are given the opportunity to address the Council for up to 5 minutes on items both on and not on the meeting agenda during Public Comments. The City Council will also accept comments on an agenda item when the item is presented in the agenda, but speakers are limited to commenting once per item each meeting. When recognized by the Presiding Officer, please go to the podium if on -site or turn on your microphone if attending virtually and state your name clearly for the record. The City Council appreciates hearing from you but may not respond or answer questions during the meeting. Members of the City Council or City staff may follow up with you following the meeting. 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. The City Council Rules of Procedure provide the following guidelines for Public Hearings: 1. City staff will provide a report summarizing and providing context to the issue at hand. 2. City staff shall speak first and be allowed 15 minutes to make a presentation. 3. The applicant is then allowed 15 minutes to make a presentation. 4. Each side is then allowed 5 minutes for rebuttal. 5. After City staff and the applicant have used their speaking time, the Council may ask further clarifying questions of the speakers. 6. Members of the public who wish to address the Council on the hearing topic may speak for 5 minutes each. 7. Speakers are asked to sign in on forms provided by the City Clerk. 8. The Council may ask clarifying questions of speakers and the speakers may respond. 9. Speakers should address their comments to the City Council. 10. If a large number of people wish to speak to the issue, the Council may limit the total amount of comment time dedicated to the Public Hearing. 11. Once the Presiding Officer closes the public hearing, no further comments will be accepted, and the issue is open for Councilmember discussion. 12. Any hearing being held or ordered to be held by the City Council may be continued in the manner as set forth by RCW 42.30.100. For more information about the City Council, including its complete Rules of Procedure, please visit: https//w,tukwilawa.,,q©v/do,pairtiments/citi-courfcili COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/17/25 MW ITEM INFORMATION ITEM No. 4.A. STAFF SPONSOR: MARTY WINE ORIGINAL AGENDA DATE: 11/17/25 AGENDA ITEM TITLE Budget Sustainability Project Update CATEGORY ® Discussion Mtg Date 11/17/25 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ® Mayor ❑ Adnain Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ Pir SPONSOR'S SUM IARY Discussion Only: Council Briefing on Budget Sustainability Efforts and 2027/28 Budget Planning REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: RECOMMENDATIONS: SPONsoR/ADMIN. Mayor's Office/Administration COMMIIIEE Discussion Only COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 8/18/25 City Council Review of Budget Proviso Report (Revenues) 9/15/25 Budget Briefing and Discussion (Work Session) MTG. DATE ATTACHMENTS 11/17/25 Informational memo dated 11/10/25 Powerpoint presentation Expenditure Ideas List TO: City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM Tukwila City Council FROM: Marty Wine, City Administrator Department Directors CC: Mayor Thomas McLeod DATE: November 10, 2025 SUBJECT: Budget Sustainability Project Update ISSUE Consider a status report about the Budget Sustainability Project. BACKGROUND Overall the Budget Sustainability project was launched with the purpose of developing a General Fund Budget the city can maintain into the future. Specifically this is defined as: developing the Mayor's Proposed 2027-28 Budget including a 6-year plan so that the City's recurring general fund revenues exceed ongoing spending each year through 2032; and achieve yearly cost savings or net new revenues of about $5M. The last Council update about this effort was August 18, 2025 when the Revenue Proviso Report was presented to Council, and Council also had a discussion at a Work Sesson on September 15, 2025 on the topic of a Sustainable Budget and Future City Budgets. It was conveyed during the September briefing that in planning the next biennial budget, the Administration needed to show not only revenue- but also expenditure -side and cost reduction options to balance the budget for the long term. Tonight's briefing is intended to share the work- in -progress of what is being considered for the expenditure side of the equation, and the cost reduction ideas being considered in planning for the next biennial budget. Since the adoption of the 2025-26 Biennial Budget in late 2024, it is acknowledged that Tukwila, like most cities, has a challenge in balancing the General Fund budget for the long term. There are multiple contributors to this situation, including expenditures that grow at a faster pace than the rate of our revenue growth, some taxes that are capped below the rates that costs grow, and inflationary pressures on some cost drivers. All cities face this challenge. Over time the erosion of a balanced budget will continually need to be corrected. The out -year, out -of -balance condition can be adjusted through spending reductions or slowing cost growth, or increasing revenues and their growth keeping up with expenditures; and most likely, a combination of those two strategies. The Administration committed in early 2025 to review our overall spending, services and programs, and to build future budgets without using one-time revenues (such as from property sales). Since early in 2025, we have been working to develop and contribute ideas to both reduce costs and expenditures, and also generate new revenue sources to balance the budget for the long term. Five working groups were formed that focused on: salaries and benefits; overall program 2 INFORMATIONAL MEMO Page 2 or expenditure changes; revenue changes (that resulted in the July 2025 council proviso report); capital & utilities (general fund O&M) changes; and "out of the box" or efficiency changes. The Mayor also asked City departments to look at operations more closely to see if, even after all of past spending reductions, there are additional ways departments could permanently reduce costs. From the work of those groups, a list of ideas was brainstormed, identified and prioritized over 50 cost or expenditure -side ideas that could potentially contribute to the city's future financial sustainability. The list was generated to explore the question: What could the city do on the expenditure side of the equation to reduce General Fund costs, reduce long-term spending, and contribute meaningfully to balancing the budget over the long term (next 6 years or permanently)? Ideas were evaluated by rating them according to mandates; risk; cost-effectiveness; level of service to the community; priority; level of impact and equity. After this ranking, ideas were categorized as recommended for action, be explored further, not recommended, or pursue not as part of the budget, but as another way to achieve efficiencies. Over the next few months, this list will be further refined and the Mayor plans to bring recommendations to the City Council for creating a sustainable budget in early 2026. The City's planning for the next biennial budget will begin in Spring 2026. Decisions about changes to expenditures and programs will not be made until early 2026 during the development of the '27/28 budget. DISCUSSION Council is asked to consider and discuss the evolving list of expenditure ideas. FINANCIAL IMPACT This topic is focused on the long-term sustainability of the City's General Fund. The recommended '27/28 Budget will incorporate expenditure- and revenue -side options for budget sustainability. RECOMMENDATION Information Only. The Council will receive an update and additional forecast briefing in early 2026. ATTACHMENTS Powerpoint List of Expenditure Ideas https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/2025 AGENDAS/2025 Agenda Packets/2025 COUNCIL - Agenda Packets/11-17-25 Regular/Info Memo Budget Sustainability 111725.docx 3 4, BUDGET SUSTAINABILITY PROJECT City Council Briefing November 17, 2025 The City of opportunity, the community of choice. Briefing & Discussion • Purpose: Status Report, Plan for'27/28 Biennial Budget • What's the Budget Sustainability effort? • A General Fund budget the city can maintain into the future • Develop Mayor's Proposed 2027-28 Budget including a 6-year plan through 2032 so that: • City recurring general fund revenues exceed ongoing spending each year through 2032 • Yearly cost savings or net new revenues is about $5M • What are ways we can make the city's budget more sustainable long term? • Combination of revenue and expenditure changes will be proposed • Past briefings • July 2025: Revenue Ideas • August 2025: Budget Sustainability Discussion • Tonight — How Expenditure/Cost side changes to contribute to the equation — "the List" 01 Background: Budget Sustainability Challenge • Expenditure growth (3.6%) outpaces normally occurring revenue growth (2.7%) • Main tax revenues (sales & property) do not keep up with inflation • City must adopt a balanced budget • '25/26 budget used one-time revenues to cover operational expenses • General Fund would have been out of balance with a forecasted gap, increasing by about $1.OM annually • Not sustainable over more than just a few years • Budget balance erodes without increased revenue, reduced expenses, or a combination. Recap from 2024: 2025-2030 Forecast Showed Expenditures Exceed Revenues — Includes Property Sales QT- uexe $90 o The first two years _ adopted budget Forecast Looks forward to e`# e egg -term sustai, $85 * 1 on status uo © orations = erne or revenue charges �=t ire` iou years' actuaLs known changes C ate: e ra f 2026 $80 $75 $70 $65 2025 2026 eve $6M 2027 e Excess of Revenues $6M 2028 $7M 2029 $7M 2030 co Commitments for Future Budgets The '25/26 Adopted Budget Things to Review in 2025 • Avoid use of one-time revenues for ongoing expenses • Council Revenue Proviso (July): new/expanded revenue options • Review all city services and programs • Describe trade-offs: service levels and new investment • Financial policies, indirect cost allocation model • Review compensation policy (Res 1951) Revenue Options (Proviso Report) Salary Et Benefit Policies Capital Et Utilities (GF OEtM) Budget Sustainability —Brainstorming Ideas (Groups) • 1 Operating Expense or Program Changes Out of the Box or Efficiency Improvements O Budget Sustainability Expenditures AND Revenues Likely '27/28 Recommendation $3M in spending, $3M in revenues Examples of Expenditure Changes • Changes or reductions to programs or services • Cost of Service & Fee studies • Efficiencies • Review of salary & benefit policies • Other cost control ideas rb if±',, Examples: Revenue Changes • B & O Tax Changes • Public Safety Sales Tax (HB 2015) • 13 Others: Revenue Proviso Report Unlikely to Recommend • Property tax changes e feet • el from Lease to Purchase Consolidate Communications Improve - ecre.ti st - ec • very Property Sales Strategy t- izi feet a icles Update Compensation/Classification Policy e • .rt e t ervice Level rr cti Reduce/Share Printers and Copiers Recommended Expenditure Ideas Employee Benefits Review st - r • if • rs - :Modify I perations Structure Organizational alignment (consolidate departments, streamline management structure, have others provide services) licrt _ t icl_s Transition Emergency Management to Puget Sound Fire Voluntary Separation Incentive Program Expenditure Ideas to Explore Further eek o pensation from Port - ental ousing • rogra of Seattle Consolidate Front Counter Services Exit Leased Parks (Crestview, Duwamish) Foster Golf Course - Redevelop Review Supplemental & Additional Pay Explore yan ay Annexation Salary Freeze & Variations Sell Fort ' ent Park Furloughs Join with neighboring utility districts Provide services to other cities as Fee -for -Service Reduce Non -Police Overtime Usage educe TCC + perating ours/Services (close on weekends) Sell or Lease Tukwila Community Center Streets Service -Level eductions Transfer trail maintenance to agreement with King County Transition Police Services to King County Sheriff Eliminate Non -mandatory Travel Not Recommended Business process re -designs to save/reduce staffing Contract . rt - rvic _ s t • t 'strict Court Cost of Service Studies to Adjust Fees Contain drivers of personnel costs Foster Golf Course as General Fund Ideas with No or Limited Savings elay c. • it.l i • r• - - t • r• j - cts; eli inate eneral Fund CIP projects; build a reserve fund for projects, facility aintenance and future repairs; set aside aintenance and lifecycle costs for capital assets Increase Individual Employee Capacity and Performance Increase f • tr•l anager-Subordinate ratios) Evaluate position vacancies Pursue but not for Budget Sustainability Next Steps & Timeline • Review and cost out ideas • Evaluate how ideas help to meet the budget sustainability problem • Complete report of expenditure ideas • Mayor to City Council: recommendations for creating a sustainable budget early 2026 • City's budget process and planning for '27/28 Budget: April/May 2026 EXTRA SLIDE Revenue Proviso Report (July 2025) "...The City cannot depend exclusively on cost-cutting measures to address future budget deficits. To ensure long-term financial stability... imperative to identify new revenue sources and strengthen existing revenue streams..." Finance Department to present potential revenue options. Report is a starting point, not a recommendation. Highlights • 15 revenue options available in current law. • Builds on community Financial Sustainability Committee report (2023) • Options are analyzed using a standard framework • One component of the larger city-wide effort aimed at creating a sustainable budget. • Report is a technical resource designed to support informed policy deliberation. Budget Sustainability: Expenditure Ideas Sustainable Budget definition: Draft the Proposed 2027-28 budget so that general fund revenues annually exceed generalfund expenditures for operations and capital maintenance for 2027-2032. • Both changes to spending and revenues will be considered, with over 100 ideas for change suggested. • Target range of cost savings and net new revenues is $6M per year. • Any labor impacts would require consultation and bargaining with our labor partners. Ideas were generated by five staff working groups focused on: operating expenditures, out -of -the - box or efficiencyideas, salaries & benefits, revenues, maintaini ngcapital& utilities, and developing department proposals. The list of revenue options was presented to the City Council in July 2025. This expenditure list was generated to explore the question: What could the city do on the expenditure side of the equation to reduce General Fund costs, reduce long-term spending, and contribute meaningfully to balancing the budget over the longterm (next 6years or permanently)? Ideas were evaluated by scoring and ranking them according to: • Mandate: is the service required by law or policy? • Risk: does the idea have liability, safety, financial, environmental risk? • Fiscal impact and cost-effectiveness: what is the 6-year net cost, savings, change in revenue, or change in operating cost? • Efficiency: is the service duplicated elsewhere? • Level of Service: is there an increase or decrease in level of service? • Priority: is it in the city's strategic plan, survey, recent financial sustainability committee recommendations? • Proportionality: what portion of the community is impacted by the idea? • Equity: how does the idea affect vulnerable populations? Afterthis ranking, ideas were categorized as recommended for action, should be explored further, not recommended, or removed from the list due to limited savings but could be considered as process improvements. Here is the list sorted by category: Idea .,Change�Fleet�„Modelfrom„��Lease��to�Purc,f ase.�As„„lea„ses��exp�ire��over„the��, next 5 years, return to a model where city owns and replaces vehicles. This could result in significant savings; negotiate existing vehicle purchases with Enterprise. Consolidate Communications Services currently housed in Police ............... Parks, and the Mayor's Office to a central program for greater efficiency. ............................................................................................................................................................................................................................................................................................................................................................................ Improve Recreation Cost Recovery. Raise cost recovery of various recreation programs, rentals, and/or other services to a minimum level DRAFT 10/16/25 - p. 1 Category Recommended Recommended ............................................................................ Recommended 18 of at least 90% and in some cases to 100% or more. Likely more revenue generator than savings. Property Sales Strategy: Sell Properties not needed for city purposes (not including Foster Golf or Fort Dent) to generate revenue and reduce maintenance and insurance costs. In some cases this would involve costs to relocate City operations or temporarily maintain vacant space. ....................................................................................................................................................................................................................................................................................................................................................................... Right -Sizing Fleet Vehicles. The fleet manager will work with each department to identify the needed technical requirements for vehicles and match the appropriate vehicle type to those functions. Update Compensation/ClassificationPolicy- Resolution 1951.This ...... would re -set comparable jurisdictions and market analyses. It is likely to slow the growth of labor costs rather than create actual savings but could be a significant contri bution to longterm sustainability. If Tukwila's pay and benefits lag other employers, increased turnover resulting in higher recruitment and training costs may occur. Department Service Level Reduction. Achieve General Fund savings in each city department by reducing or changing programs or level of service to customers. Printers and Copiers. Reduce the number of and Copiers. printerscopiersby sharing between different work groups or departments. ....................................................................................................................................................................................................................................................................................................................................................................... Centralize Procurement Services to create potential cost savings through volume purchasing and standardization. It is likely that this would do more to increase efficiency rather than produce significant savings. Employee Benefits Review. This is likely to slow the growth of labor ............. p Y Y costs rather than create actual savings, however that is a significant contribution to longterm sustainability. If Tukwila's benefits lag other employers, we may see increased turnover resulting in higher recruitment and training costs. ....................................................................................................................................................................................................................................................................................................................................................................... Foster Golf Course: Modify Operations Structure to a contract or eliminate General Fund subsidy. Golf is currently managed in an enterprise fund; its operations are to be self-supporting. Organizational alignment ((multiple options: consolidate departments, streamline management structure, others provide services) Police Department Take -Home Vehicles. Use a shared pool of police vehicles rather than assigning them to officers who can drive them to and from work. Two options: either move Patrol back to a hybrid take- home model with 32 vehicles on assigned use only during the workweek or return to a full pooled -vehicle model of 26 units with only on -shift vehicle use. Take-home vehicles are a recruitment and retention advantage. Transition Emergencyto Sound Fire. Request the Emergency ManagementPugetq Regional Fire Authority to provide this service for Tukwila; they may be DRAFT 10/16/25 - p. 2 Recommended Recommended Recommended Recommend or Explore Further Recommended but limited savings Explore Further Explore Further Explore Further Explore Further ............................................................................ Explore Further Explore Further 19 able to provide this service more efficiently with greater regional coordination. Transition Parks & Rec to Tukwila Metro Parks District. With voter approval, expand or enhance Tukwi la Metropolitan Pool District services to include Parks & Rec. Voluntary Separation Incentive Program. A financial incentive of p g combined salary (severance) and/or equivalent benefits to encourage employees to separate from the city. The resulting position vacancy would not be filled to allow for managing staffing levels; manage budget constraints (reduce personnel costs without resorting to layoffs); and allow for workforce restructuring. ....................................................................................................................................................................................................................................................................................................................................................................... Cities Jointly Seek Compensation from Port of Seattle (for airport impacts) ConsolidateFront Counter Services..................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................... Exit Leased Parks (examples: Crestview, Duwamish) Foster Golf Course: Redevelop or gin Use.The 77-acre Redevelop Changegolf course could be redeveloped into approximately 26 acres of residential, 34 acres of shoreline buffer, trail, park and flood zone, and 17 acres of off -channel habitat. If the project is feasible, implementation funding would be needed to move the trail along the river, create a park, and create off -channel habitat. ....................................................................................................................................................................................................................................................................................................................................................................... Furloughs. Temporary measure to bridge to longer -term reductions. Our utilities don't cover the whole city; join with neighboring utility districts Provide services to other cities as Fee -for -Service (examples - police for SeaTac, court services to others, Fleet for SeaTac) Reduce Non -Police Overtime Usage. Management of city departments to eliminate Overtime and/or Comp Time in allowable parameters and per labor agreements. This may affect service levels or require hiring additional staff. ....................................................................................................................................................................................................................................................................................................................................................................... Reduce TCC Operating Hours/Services (close on weekends) Remote work policy. Explore how a revised remote work policy may reduce office space, vehicle requirements, recruitment & retention Rental Housing Program. Endingthis proactive licensing and inspection program would likely result in deteriorating rental housing conditions which would be addressed by the Building Division. Review Supplemental &AdditionalPay. ............................................................................................................................ ....................................................................................................................................................................................................................................................................................................................................................................... Ryan Way Annexation. Tukwila provides all services to this neighborhood that is geographically separate from the rest of the city. If Ryan Way were annexed to Seattle, Tukwila would lose $1.2 M in property taxes and utility fees but would save expenses includingthe cost to extend the water main under 1-5 and construct roadway improvements. DRAFT 10/16/25 - p. 3 Explore Further Explore Further Not Recommended Not Recommended .................................................................................................. Not Recommended Not Recommended Not Recommended Not Recommended Not Recommended Not Recommended Not Recommended Not Recommended Not Recommended Not Recommended Not Recommended 20 Salary Freeze & Variations: forego COLA, step increases ........................................................................................................................................................................................................................................................................................................................................................................ Sell Fort Dent Park. While the City receives no lease revenue from Starfire, it does incur maintenance costs. There are 18 years left on the concessionaire agreement limiting the City's ability to sell the property. SeLL or Lease Tukwila Community ................................................................................................................................................ ........................................................................................................................................................................................................................................................................................................................................................................ Streets Service -Level Reductions. Reduce or eliminate discretionary services in Public Works Streets maintenance program to allow a phase- out of staffing by attrition while preservi ng essential services. Eliminated work could include ornamental landscaping, litter pickup, pressure washing, bus stop cleaning and low priority complaints in See -Click -Fix such as graffiti removal, illegal dumping, vegetation control, etc. Transfer trail maintenance to interlocal County agreement with King g County Transition Police Services to King CountySheriff's Office. Cost savings would be modest with future cost increases unknown. Eliminate Non -mandatory Travel. Repeal Resolution and replace Repeal p it with a more restrictive travel policy; only authorized if required by an external authoritative source. No impact to Council travel policy. ........................................................................................................................................................................................................................................................................................................................................................................ Printers and Copiers. Reduce the number of printers and copiers by sharing between different work groups or departments. Alternative Work Week - 4/32,9/80 days/hours.Explore alternative p work schedules, reduced workweek; facility and utility cost savings Are there business process re -designs that will save funds or reduce staffing? Help from State Auditor's Office Contract Court Services to King County District Court. Studied prior. Based on the costs assessed to the City of Auburn for 2024 by KCDC, there would be no cost savings. ................................................................................................................................................................................................................................................................................................................................................................... Cost of Service Studies to Adjust Fees. Perform studies to determine program costs, identify opportunities for efficiencies, recommend fee adjustments for cost recovery. Examples: Recreation, facility rentals, Rental Housing Program Delay�� Public Works Shops Phase 2 Project. Interim lease revenue for Shops several years. ................................................................................................................................................................................................................................................................................................................................................................... Determine drivers of personnel costs Eliminate Transportation Demand Management Program (grant - funded) Host the TDM Program through another agency. While the 3 FTE are completely grant -supported Tukwila does provide office space, HR support, and management for the team. Only overhead cost savings are expected. ...................................................................................................................................................................................................................................................................................................................................................................... Foster Golf Course - Reclassify Golf Fund as General Fund DRAFT 10/16/25 - p. 4 Not Recommended Not recommended Not Recommended ................................................................................................. Not Recommended Not Recommended Not Recommended Not Recommended but review policy Recommended but limited savings Remove due to no or Limited Savings Remove due to no or Limited Savings Remove due to no or Limited Savings Remove due to no or Limited Savings Remove due to no or Limited Savings Remove due to no or Limited Savings Remove due to no or Limited Savings emove due to no or Limited Savings 21 Grants for water and sewer projects Police Department Attrition Management. Evaluate job vacancies as they occur; would temporarily result in salary savings but would be offset by training and management costs. Police Overtime Reductions. Highest overtime use.. is due to mandatory. training, case completion, and minimum staffing requirements. ....................................................................................................................................................................................................................................................................................................................................................................... Reciprocal Franchise Fee Administration Stormwater and utility fee increases Transition Electrical Inspections to State Labor & Industries. Tukwila could stop providing electrical permits and inspections and let L&I cover Tukwila. Most years have full cost recovery for these permits so that would not generate savings other than overhead. Tukwila can provide faster and more responsive service to contractors than L&I. Provide Police Services to Another CityThe city would recruit and train Y additional officers over a period of years. It's unknown whether we could charge a rate that would compensate for this upfront cost and the ongoing overhead of managing a larger department. ....................................................................................................................................................................................................................................................................................................................................................................... Volunteer Management to Offset Staffing Needs. Develop a comprehensive, citywide volunteer program to supplement limited staffing. While not a direct cost savings in the short term, the program could build a foundation for long-term operational and fiscal sustainability. Delay capital improvement projects; eliminate General Fund CAP projects; build a reserve fund for projects, facility maintenance and future repairs; set aside maintenance and lifecycle costs for capital assets ....................................................................................................................................................................................................................................................................................................................................................................... Increase Individual Employee Capacity and Performance. Through reallocation of duties, refining work plans, and reducing time spent on lower -priority tasks, the City may gain operational efficiencies that increase existing staff capacity and delay workforce expansion. Increase Span of Control (Manager -to -Subordinate ratios) Broadening Span ( g ) g the span of control may yield cost savings through consolidation of supervisory roles, reclassification of non -supervisory managers, or streamlining of job families. However, any changes must be balanced with service delivery needs and union bargaining obligations. ....................................................................................................................................................................................................................................................................................................................................................................... Evaluate position vacancies. Delay, defer, or choose not to fill jobs that become vacant. The City is currently reviewing all vacancies to determine whether and how they should be filled. DRAFT 10/16/25 - p. 5 Remove due to no or Limited Savings Remove due to no or Limited Savings Remove due to no or Limited Savings ..................................................................................................... Remove due to no or Limited Savings Remove due to no or Limited Savings ........................................................................................... Remove due to no or Limited Savings Remove due to no or Limited Savings Remove due to no or limited savings Remove due to no or Limited Savings but pursue Remove from list but pursue Remove from list but pursue Remove from list but pursue 22 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/17/25 NG ITEM INFORMATION ITEM No. 5.C. STAFF SPONSOR: NORA GIERLOFF ORIGINAL AGENDA DATE: 11/17/25 AGENDA ITEM TITLE Hearing Examiner Update Resolution CATEGORY ❑ Discussion Mtg Date ® Motion Mtg Date 11/17/25 ® Resolution Mtg Date 11/17/25 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admn Svcs ® DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PJF SPONSOR'S SUALMARY The intention is to streamline the process to appoint a Hearing Examiner by allowing the Council's approval of the contract serve as the appointment rather than requiring a separate resolution. The Council is being asked to consider and approve the resolution. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ® Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/10/25 COMMITTEE CHAIR: HEDRICK RECOMMENDATIONS: SPONSOR/ADMIN. Department of Community Development COMMII IEE Unanimous Approval; Forward to Consent Agenda COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/17/25 MTG. DATE ATTACHMENTS 11/17/25 Informational Memorandum dated 11/10/25 Draft Resolution Minutes from the 11/10/25 PCD Committee Meeting (distributed separately) 23 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Community Development Committee FROM: Nora Gierloff, DCD Director CC: Mayor Thomas McLeod DATE: November 10, 2025 SUBJECT: Hearing Examiner Resolution ISSUE The intention is to streamline the process to appoint a Hearing Examiner by allowing the Council's approval of the contract serve as the appointment rather than requiring a separate resolution. BACKGROUND Cities and counties in Washington State have statutory authority to establish a hearing examiner system. Under a hearing examiner system, a city or county hires or contracts with a hearing examiner to conduct quasi-judicial hearings, usually in place of local bodies such as the planning commission, the board of adjustment, the board of county commissioners, or the city council. The purpose of having a hearing examiner conduct these hearings is to have a professionally trained individual, typically an attorney, make objective quasi-judicial decisions that are supported by an adequate record and that are free from political influences. Using a hearing examiner system allows local legislative and advisory bodies that might otherwise conduct these hearings to better concentrate on policymaking. It can also potentially reduce local government liability exposure through what should be more consistent and legally sustainable quasi-judicial decisions. The City established a hearing examiner process for certain land use, code enforcement, impact fee, and forfeiture decisions and appeals in 1997 at TMC Chapter 2.76. DISCUSSION The intention is to streamline the process to appoint a Hearing Examiner by allowing the Council's approval of the contract serve as the appointment rather than requiring a separate resolution. Our past practice per TMC 2.76.010 has been to bring a resolution to the Council in addition to a contract for services whenever we change Hearing Examiners. FINANCIAL IMPACT There will be no change to the City's overall cost to conduct these hearings. RECOMMENDATION The Council is being asked to approve the resolution and place this item on the consent agenda at the November 17, 2025 Regular Meeting. ATTACHMENT A. Proposed Resolution 24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RATIFYING THE APPOINTMENT OF THE CITY'S HEARING EXAMINER PURSUANT TO TUKWILA MUNICIPAL CODE CHAPTER 2.76 TO PRESIDE OVER HEARINGS RELATED TO LAND USE, CODE ENFORCEMENT, POLICE FORFEITURES, AND OTHER MATTERS AS SPECIFIED IN THE TUKWILA MUNICIPAL CODE; AMENDING THE PROCESS FOR FUTURE HEARING EXAMINER APPOINTMENTS; AND REPEALING RESOLUTION NO. 1971 WHEREAS, on May 5, 1997, the City Council passed Ordinance No. 1796, establishing the office of Hearing Examiner; and WHEREAS, the City of Tukwila uses the Hearing Examiner to preside over matters such as land use hearings under Tukwila Municipal Code (TMC) Titles 17, 18, 19 and 21; code enforcement appeals under TMC Chapter 8.45; police forfeiture hearings under TMC Title 8; ethics complaints under TMC Chapter 2.95; commercial parking tax appeals under TMC Chapter 3.48; and business license appeals under TMC Chapter 5.04; and WHEREAS, the City of Tukwila contracts for Hearing Examiner services with an experienced provider at competitive hourly rates as memorialized in Contract No. 23-142; and WHEREAS, pursuant to TMC Section 2.76.010, " ... Hearing Examiner shall mean any person appointed by the Mayor, and approved by the City Council, for the purpose of presiding over appeals and other matters ... "; and WHEREAS, pursuant to TMC Section 2.76.020, "The Hearing Examiner shall have the powers and duties assigned to that office by ordinance"; and WHEREAS, as needed, the Department of Community Development selects a qualified practitioner to serve as the Hearing Examiner with experience in providing similar services to other local cities; and 2025 Legislation: Hearing Examiner appointment Version: 11/04/2025 Staff: N. Gierloff Page 1 of 2 25 WHEREAS, the City Council's approval of a contract with the selected practitioner shall indicate their approval of the practitioner appointed to serve, without the need for a separate resolution; and WHEREAS, to allow for efficient and effective operations, the City Council desires to authorize the Department of Community Development in coordination with the City Attorney's Office and the Hearing Examiner to administratively adopt rules of procedure for the Hearing Examiner to follow when hearing matters on behalf of Tukwila and affected City departments; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Resolution No. 1971 Repealed. The City Council hereby repeals Resolution No. 1971 in its entirety. Section 2. Ratification of Contract No. 23-142. The City Council hereby ratifies Contract No. 23-142 for the provision of Hearing Examiner services. Section 3. Future Hearing Examiner Appointments and Approvals. Pursuant to TMC Section 2.76.010, the Mayor shall appoint a qualified and experienced practitioner to serve as the Hearing Examiner for the City, and the City Council's approval of a contract for such services shall indicate the Council's approval of the selected practitioner without the need for a separate resolution. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, a Regular Meeting thereof this day of , 2025. ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk Tosh Sharp, Council President APPROVED AS TO FORM BY: Office of the City Attorney 2025 Legislation: Hearing Examiner appointment Version: 11/04/2025 Filed with the City Clerk: Passed by the City Council: Resolution Number: Staff: N. Gierloff 26 Page 2 of 2 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 9/22/25 DCS 11/10/25 DCS 11/17/25 DCS ITEM INFORMATION ITEM NO. 6.A. STAFF SPONSOR: DEREK SPECK ORIGINAL AGENDA DATE: 9/22/25 AGENDA ITEM TITLE Prato District Development Agreement CATEGORY ® Discussion Mtg Date 9/22/25 ® Motion Mtg Date 11/17 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ® Public Hearing Mtg Date 11/10/25 ❑ Other Mtg Date SPONSOR ❑ Council ® Mayor ❑ Adtrain Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PJF SPONSOR'S SUlLMARY The 2009 Development Agreement governing the Tukwila South subarea expires on December 1, 2025. Segale Properties and City have negotiated a new development agreement for the Prato District. Council is being asked to hold a public hearing and approve the ordinance and associated development agreement. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: N/A COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office COMMIII EE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $0 AMOUNT BUDGETED $o APPROPRIATION REQUIRED $0 Fund Source: N/A Comments: N/A MTG. DATE RECORD OF COUNCIL ACTION 9/22/25 Council discussion at Committee of the Whole MTG. DATE ATTACHMENTS 11/10/25 Informational Memorandum dated 11/03/25 Powerpoint Presentation Draft Ordinance with proposed Prato District Development Agreement & Exhibits 11/17/25 Final Ordinance 27 Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TUKWILA, SEGALE PROPERTIES LLC, MAS TUKWILA LLC, AND THEIR SUCCESSORS AND ASSIGNS FOR THE PRATO DISTRICT PROJECT (FORMERLY KNOWN AS THE TUKWILA SOUTH PROJECT); PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the Prato District Project comprises approximately 333 acres of real property, and Segale Properties LLC, a Washington limited liability company, owns approximately 329 of those acres and MAS TUKWILA LLC, a Washington limited liability company, owns approximately 4 of those acres, which collectively is known as the "Prato District Property"; and WHEREAS, on June 8, 2009, the City of Tukwila passed Ordinance No. 2233, which adopted the Development Agreement by and between the City of Tukwila and Segale Properties LLC (formerly known as La Pianta LLC) (the "Original Agreement") regarding the Tukwila South Project; and WHEREAS, the Original Agreement was revised seven times, with the First, Third, Fourth, and Fifth Amendments recorded at King County recording nos. 20100726001101, 20140624000980, 20250109000508, and 20250606000614, respectively, and two Addenda recorded at King County recording nos. 20130228000691 and 20130228000692, and the Second Amendment, dated November 20, 2012, which remains unrecorded; and WHEREAS, the City of Tukwila owns real property operated as Fire Station 51, located at 17951 Southcenter Parkway, Tukwila, Washington 98188 (King County parcel nos. 3523049008 & 3523049040 (shown as vacant)) within the Prato District Project area, which Segale Properties dedicated to the City pursuant to Section 4.6.2 of the Original Agreement and as further set forth in a Fire Facilities Agreement (Contract No. 14-065); and WHEREAS, the effective date of the annexation of the Tukwila South Property to the City of Tukwila was June 23, 2009, and the Term of the Original Agreement, as revised and extended, which extension also applies to Section 5.2.3. of the Original Agreement, Scope 28 2025 Legislation: Approving New Prato District Development Agreement Version: 11//2025 Staff: N. Gierloff & D. Speck Page 1 of 3 of Vesting, is set to expire on December 1, 2025, based on Ordinance No. 2761, passed on June 2, 2025; and WHEREAS, the City of Tukwila, Segale Properties LLC, and MAS TUKWILA, LLC now seek to enter into a new development agreement, which must be approved by ordinance or resolution after a public hearing, and pursuant to RCW 36.70B.200 and TMC 18.86.050, a public hearing was held for this Ordinance on November 10, 2025; and WHEREAS, the City Council finds that public benefits result from execution of this new Development Agreement, including but not limited to: (a) providing certainty to encourage the required substantial private investment in the planning and development of the Prato District, (b) securing orderly master planned development for public services, infrastructure improvements and facilities planning for the City, (c) encouraging development of private park and open space amenities open to the public in the Prato District, (d) fulfilling and implementing the City's Comprehensive Plan by encouraging both economic development and additional residential development in the City, (e) construction of previously -planned multiple 14-foot wide public trail connections, connecting Southcenter Parkway to the river levee trail, (f) the creation of future private parks and amenity spaces within the new Prato District, and (g) generating City revenues in the form of increased property tax base and construction and sales tax generation as the lands are developed; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Findings Adopted and New Development Agreement Approved. The foregoing recitals are hereby adopted as the Council's legislative findings in support of this Ordinance, and pursuant to RCW 36.70B.170 through .210 and chapter 18.86 TMC, the new Development Agreement between the City of Tukwila, Segale Properties LLC, MAS TUKWILA, LLC, and their successors and assigns, a copy of which is attached hereto as "Exhibit A" and by this reference fully incorporated herein, is hereby approved with a term extending through December 31, 2040. Section 2. Recording Required. Pursuant to RCW 36.70B.190 and TMC 18.86.070, the new Development Agreement, or a memorandum thereof, shall be recorded against the Prato District as a covenant running with the land and shall be binding on the Parties and their heirs, successors and assigns for the term of the new Development Agreement. Segale shall record the new Development Agreement, and exhibits thereto, and shall pay the King County recording fee. Section 3. Corrections by City Clerk or Code Reviser Authorized. 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 4. 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 2025 Legislation: Approving New Prato District Development Agreement Version: 11//2025 Staff: N. Gierloff & D. Speck Page 2 of 3 29 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 5. 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 (5) days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, a Regular Meeting thereof this day of , 2025. ATTEST/AUTHENTICATED: Andy Youn-Barnett, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Thomas McLeod, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: Exhibit A — Development Agreement for the Prato District 30 2025 Legislation: Approving New Prato District Development Agreement Version: 11//2025 Staff: N. Gierloff & D. Speck Page 3 of 3 DEVELOPMENT AGREEMENT FOR THE PRATO DISTRICT THIS DEVELOPMENT AGREEMENT ("Agreement") is made and entered into this day of , 2025, by and among the CITY OF TUKWILA ("City"), a non -charter, optional code Washington municipal corporation, SEGALE PROPERTIES LLC, a Washington limited liability company ("Segale") and MAS TUKWILA LLC, a Washington limited liability company ("MAS") (together, the "Parties"). RECITALS WHEREAS, the Washington State Legislature has authorized the execution of development agreements between a local government and a person having ownership or control of real property within its jurisdiction and between a local government and a person owning real property outside its boundaries as part of a proposed annexation, pursuant to RCW 36.70B.170 through RCW 36.70B.210. WHEREAS, on June 10, 2009, the City and Segale (formerly known as La Pianta LLC) entered a Development Agreement (the "Original Agreement") regarding the Tukwila South project, then comprising approximately 512 acres of real property, and recorded the Original Agreement at King County recording no. 20100726001100, and the Original Agreement was revised five times, with the First and Third Amendments recorded at King County recording nos. 20100726001101 and 20140624000980, and two Addenda recorded at King County recording nos. 20130228000691 and 20130228000692, and the Second Amendment, dated November 20, 2012, which remains unrecorded. WHEREAS, the Original Agreement, as revised, is set to expire on December 1, 2025. Any lands included in the Original Agreement but omitted from this Agreement are subject to the December 1, 2025 expiration date of the Original Agreement. The Parties intend that this new Agreement supersede the Original Agreement. WHEREAS, the real property subject to this new Agreement is shown on the vicinity map attached hereto as Exhibit 1, and is legally described in Exhibit 2, and the real property subject to this Agreement is known as the "Prato District." WHEREAS, pursuant to the Original Agreement, many public benefits have been provided to the City including annexation of 259 acres into the City of Tukwila, resulting in City tax revenues from those lands, both before and after development, together with many improvements and enhancements to the infrastructure needed to serve this underutilized and underdeveloped area of the City, including (a) construction and dedication of new South 184th Place, including a 60-foot wide right-of-way, with 2,000 linear feet of new improved three -lane roadway with utilities, (b) net dedication of 6.05 acres of land for Southcenter Parkway with an 83-foot wide right-of-way, (c) dedication of 5.6 acres of land for the City to construct a fire station, (d) contribution of $1.75 million for construction of new fire station, and a $3 million interest -free advance payment of fire impact fees through a Fire Facilities Agreement, (e) construction of a private regional stormwater system that includes capacity and on -going maintenance to also serve City streets of Southcenter Parkway, South 184th Place, and South 200th, at no cost to the City, 1 4917-1761-6759, v. 1 31 (f) dedicated 2.2 miles of linear trail easements along the top of the Green River levee, and (g) constructed 2,200 linear feet of riverward slope and levee to meet Corps of Engineers safety standards from the cross -levee (located near South 196th) to South 204`h, and widened the levee top to accommodate the City's 18-foot wide trail easement from the cross levee to South 204`h WHEREAS, pursuant to the Original Agreement, many public benefits have been provided to the City including improvements to the natural environment, such as: (a) construction of a hydraulic connection to Johnson Creek from the Green River, (b) creation of the Green River Off -Channel Fish Habitat Area, and (c) utilization of the Sensitive Area Master Plan approach to consolidate regional fisheries and wetlands functions and create unencumbered development areas. WHEREAS, as depicted on Exhibit 7B, the current Frager Road right-of-way is fragmented into portions that do not precisely align with adjoining property boundaries. Following the construction of Southcenter Parkway, the depicted right-of-way was initially conveyed from the City to Segale. However, to maintain access to other property owners, the City requested that Segale re -dedicate the Frager Road right-of-way to the City, together with the additional re -aligned right-of-way striped with hashmarks on Exhibit 7B. This history is relevant to the terms of Section 4.4 below. WHEREAS, pursuant to the Original Agreement, the City extended and relocated Southcenter Parkway from South 180th Street to South 200th Street, vacated Frager Road, transferred ownership of the City Detention Pond, approved zoning to enable up to 10.3 million square feet of new development, provided development certainty by vesting the Tukwila South project to the development regulations for the term of the Original Agreement and its extensions, and constructed a new fire station. WHEREAS, development of the Prato District under this Agreement assures additional public benefits will be provided to the City, including: (a) meeting objectives of the City's Comprehensive Plan by encouraging both economic development and additional residential development in the City, (b) construction of previously planned multiple 14-foot wide public trail connections, connecting Southcenter Parkway to the river levee trail, (c) the creation of future private parks and amenity spaces within the new Prato District, and (d) generating City revenues in the form of increased property tax base and construction and sales tax generation as the lands are developed. WHEREAS, the City Council therefore finds public benefit results from execution of this Agreement, including (a) providing certainty to encourage the required substantial private investment in the planning and development of the Prato District, (b) securing orderly master planned development for public services, infrastructure improvements and facilities planning for the City, (c) encouraging development of private park and open space amenities open to the public in the Prato District, and (d) fulfilling and implementing the City's Comprehensive Plan. 4917-1761-6759, v. 1 32 2 WHEREAS, the Prato District is a master planned project for which site grading is ongoing, and most utility installation, including installation of regional stormwater facilities, sewer and water, has already occurred. Site construction was initiated in 2010. WHEREAS, a final plat creating 3 lots and 14 future development tracts was approved and recorded at King County recording no. 20180823000390, and this plat reflects the development and non -development areas associated with protected Native Growth Protection Areas ("NGPA") depicted on the Sensitive/Critical Areas and Development and Non -Development Area map of the Prato District found at Exhibit 3. WHEREAS, a new preliminary plat was filed under L24-0144 and approved on March 31, 2025, showing a total of 63 lots within future development tracts within the Prato District. WHEREAS, Segale intends to develop the Prato District generally consistent with the Tukwila South Master Plan ("Master Plan"). The Master Plan is a conceptual plan, and not a regulatory document, which envisions the creation of a major new employment and housing base. The Master Plan calls for approximately ten million square feet of development that would be accommodated in a combination of campus style research and office environments with a mix of other uses such as retail, residential, commercial, hotel and flex tech. As explained in the Master Plan, "[t]his buildout range and assumed mix of uses within the planning areas should be considered conceptual; ultimately, market forces will determine the specific level of development and the mix of uses over the long term. The potential locations of the various categories of uses shown within the plans on the following pages are also conceptual and will be determined by market forces." The Master Plan is attached as Exhibit 4 to this Agreement and incorporated by this reference. Applicable regulations also control the buildout of the Prato District, including the list of allowed land uses referenced at TMC 18.41.020. WHEREAS, Segale's goals for the Prato District, to be implemented through this Agreement, are for a return on investment, quality public infrastructure and services, certainty regarding the costs, and flexibility in how and when it develops. The City's goals in the development of the Prato District include implementing its Comprehensive Plan, producing positive economic impacts to the City and promoting environmental quality, mitigating financial risk for City funds, and mitigation of project impacts. WHEREAS, a development agreement must be approved by ordinance or resolution after a public hearing. WHEREAS, State Environmental Policy Act ("SEPA") review of the Tukwila South project was extensive and culminated in a Final Environmental Impact Statement, dated July 2005 ("FEIS"), that incorporated a comprehensive Draft Environmental Impact Statement, dated April 2005 ("DEIS") and was followed by two addenda under permit E04-015. The City issued an additional SEPA Addendum (based on a 2040 Horizon Analysis completed by Segale), dated October 6, 2025, to analyze any changed conditions and extend the environmental review through the term of this Agreement. 3 4917-1761-6759, v. 1 33 WHEREAS, a public hearing for this Agreement was held on and the City Council approved this Agreement by Ordinance No. , 2025. on , 2025, WHEREAS, this Agreement constitutes a final land use action pursuant to RCW 36.70C.020 and is subject to review pursuant to RCW 36.70C.005 et seq. NOW, THEREFORE, in consideration of the mutual promises set forth herein and the long-term benefit to both the City and Segale, the Parties hereby agree as follows: II. AGREEMENT 1. Project Description. The development in the Prato District will follow the terms and conditions of this Agreement as well as other applicable development regulations. 2. Planning and Permit Approvals. 2.1 Comprehensive Plan Designation and Zoning. The Prato District lands are within a subarea within the Land Use element of the City's 2024 Comprehensive Land Use Plan, as amended ("Comprehensive Plan"). (a) The City's Comprehensive Plan includes a description of the Tukwila South Overlay district which modifies some areas designated as TVS, HI, LDR, and MUO. There is a matching Tukwila South Overlay in the City's Municipal Code with similar underlying zoning classifications. (b) The Parties acknowledge the overlay combined with underlying zoning has created confusion. (c) The Parties agree that Segale along with the other affected property owners may apply for Zoning and Comprehensive Plan map amendments per the procedures in TMC 18.84 that would eliminate all underlying zoning classifications within the Prato District, and all code cross-references to those underlying zones so as to clarify that the Tukwila South Overlay is a stand-alone zoning classification. The Parties agree that the applicable zoning and development standards for the Prato District lands are currently controlled by the Tukwila South Overlay code, Chapter 18.41 Tukwila Municipal Code (see, Vested Development Regulations below), as an independent zoning classification, meaning that any remaining underlying zoning classifications have no effect. 2.2 Sensitive Areas Master Plan. The Department of Ecology ("DOE") issued a Section 401 water quality certification for the Tukwila South Property (Certification Order No. 2877, dated November 7, 2005) (the "401 Certification"). The City approved a Sensitive Areas Master Plan ("SAMP") for the Tukwila South property on December 29, 2010, under permit L10-014. The SAMP allowed filling wetlands and piping streams to create more contiguous developable area in exchange for a series of mitigation actions. As described in the Memorandum accompanying the SEPA Addendum (2040 Horizon 4917-1761-6759, v. 1 34 4 Analysis), almost all of these mitigations have been completed and their monitoring periods have ended, with minor additional work required in the future. The Parties agree that development of the Prato District is vested to the SAMP, as detailed in Section 5.2 below. Consistent with the vested SAMP and Code, the vested and final critical area buffer widths are further depicted on Exhibit 3 to this Agreement. 2.3 Land Use and Construction Permit Process. Land use and construction permits for development within the Prato District ("Implementing Approval(s)") shall follow the application and processing requirements in effect on the date of complete application, and all Implementing Approval applications will be vested to the substantive standards described in Section 5.2. Applications for Implementing Approvals shall be made on specific parcels of land within the Prato District ("Development Parcels"). All fees not specifically addressed in this Agreement will be paid at the time of permit application or when otherwise due, and in the amounts in effect on the date of application or when otherwise due. It is anticipated that Implementing Approvals will be sought by a prospective or new owner or lessee of all or a portion of the Prato District or a successor or assign of an owner or lessee, who develops and/or occupies a Development Parcel, or develops and/or occupies buildings thereon as part of the Prato District build out ("Parcel Builders"), provided, however, that building tenants are not Parcel Builders. 3. Allowable Development and Measurement of Development Limits. 3.1 Maximum Allowable Development limited by trip ceiling. Except as otherwise provided herein, the maximum allowable development in the Prato District shall be limited to a maximum of 10,166 Net New Trips from onsite development (the "Allowable Development"). (a) The "Trip Ceiling" of 10,166 Net New Trips comprises not more than 2,646 Net New Trips inbound to the Prato District and not more than 7,520 Net New Trips outbound from the Prato District. (b) "Net New Trips" shall be estimated using p.m. peak hour vehicle trips (inbound and outbound) at the perimeter of the Prato District lands, meaning that internal trips shall not count against the Trip Ceiling. (c) Transportation impact fees shall apply only to the Net New Trips allocated to the proposed new development. In the event new development within the Prato District is proposed which exceeds the Trip Ceiling, that new development shall be subject to mitigation and concurrency requirements applicable at the time of application. (d) The 10,166 Net New Trips will be counted for both Segale and MAS (as to its lands) hereunder for the Term of this Agreement. (e) As described in the Tukwila South EIS, the existing development generated a total of 1,241 p.m. peak hour vehicle trips (298 trips inbound and 943 trips outbound) ("Existing Development Trips"). Existing Development Trips shall not count against the Trip Ceiling. Existing Development Trips may be used as a credit against trip generation from new development to the extent existing uses are permanently discontinued 5 4917-1761-6759, v. 1 35 and/or existing structures are removed ("Credit Trips"). The Existing Development Trips are detailed in Exhibit 5. Segale may allocate available Credit Trips to the proposed new individual development, as development occurs, and will use Exhibit 6, described in Section 5.2 to track the use of Credit Trips. 3.2 Maximum Allowable Development is limited by Building Floor Area. Except as otherwise provided herein, the maximum allowable development in the Prato District shall be limited to a maximum development (including any mix of buildings and permitted uses) of 10.3 million square feet of new building floor area. (a) For the purposes of determining the floor area of the Allowable Development, new "Building Floor Area" shall include new floor area generating vehicle trips, but shall not include floor area that does not generate vehicle trips, such as parking areas and mechanical space. 3.3 Maximum Allowable Development is limited by Impervious Surfaces. No more than 85% of the drainage basins served by each stormwater facility may be covered with impervious surfaces. All applications for Implementing Approvals within the Prato District shall include disclosure of the percentage of land covered by impervious surfaces. Following approval of the application, Segale will update the Impervious Surfaces Tracking Spreadsheet found in Exhibit 10. The Impervious Surfaces Tracking Spreadsheet shall be filed with every new application for new or re -development. 3.4 Expansion Areas. Parcels commonly known as Gaco-Mitchell have been evaluated for development together with the Prato District and are possible "Expansion Areas" and are described on Exhibit 7A. In the event that these Expansion Areas are acquired by Segale, Segale will provide notice to the City and seek to amend this Agreement to add the Expansion Areas to the terms of this Agreement. 4. Parties' Obligations Under this Agreement. The Original Agreement established certain roles and responsibilities for the development of the Prato District, including, but not limited to, City commitments for partial funding and construction of certain public infrastructure improvements, and Segale's commitments to participate in the funding of certain public improvements. Much of this work has been completed. The work remaining is listed below. 4.1 Sanitary Sewer System. As outlined in the Tukwila South EIS, additional sewer capacity may be required to serve the Prato District, as the project develops. Sewer Lift Station #2 may need to be upgraded to create sufficient pumping capacity; and the force sewer main along Andover Park West from Minkler Ave to Strander Blvd (the "Force Sewer Main") may need to be upgraded to provide sufficient capacity to carry the additional flows generated by the Prato District. If at any time during the Term (as defined below in Section 9.13) of this Agreement, a capacity analysis of the system shows that any of the Sewer Lift Station #2, the Force Sewer Main, or any other facility within the City's sanitary sewer system necessary to provide service to the Prato District (each a "Facility") is at 80% or more of its capacity, then the City shall promptly initiate its standard process 4917-1761-6759, v. 1 36 6 to consider planning, financing and construction for improvement to the Facility (or more than one) necessary to provide adequate sanitary sewer service to accommodate the Allowable Development. The City will finance the construction of the Facility through bonds or any other source of City capital funding and/or through connection fees, sewer rates or other charges to be paid by all the benefited ratepayers. If the City elects to form a Utility Local Improvement District ("ULID") or other special district to pay for any Facility, then Segale and MAS shall execute a No Protest ULID Agreement for the formation of an ULID to provide said improvements to the City's sanitary sewer system as outlined herein. The No Protest ULID Agreement shall be in a form acceptable to the City. Segale, MAS, and other affected Parcel Builders on Prato District lands shall be responsible for paying citywide sewer system connection charges and fees at the time of each building permit application, subject to the terms of any applicable No Protest ULID Agreement, as described herein, and their participation in any ULID or special district assessment. Construction of the initial Southcenter Parkway sewer line serving the Prato District was included in the cost of the Southcenter Parkway project. Segale or Parcel Builders on Prato District lands shall pay sewer connection fees based on TMC 14.19. As required by Code, notice of sewer availability and connection requirements shall be placed on titles of properties within the Prato District; and Segale or a Parcel Builder will be required to pay any recording fees to the City prior to the City's recording. Other charges may be required under separate laws, e.g., the King County sewage treatment capacity charges. 4.2 Public Access and Open Space and Trails. Restating and adding to requirements from the Original Agreement, open space and trail amenities will be provided as follows. (a) Segale has granted the City an easement for a publicly accessible north -south trail system from S. 180`h Street to S. 204`h Street, located along the Green River within the crown of the levee. Segale shall not be responsible for costs of construction or maintenance of any improvements within the trail easement. It is possible that a third party, such as the local flood control district, will acquire this existing levee with the City easement and other lands, and construct a levee layback project that may change the location of the existing levee. In the event that the levee layback project is pursued, Segale and the City agree to coordinate and cooperate with one another as to the project location, design and related matters. Segale's end goal is to ensure the Prato District integrates with adjoining lands and infrastructure and facilities to best assure an attractive and successful project, and Segale wants to ensure it is provided just compensation for any lands taken for the levee project. The City's end goal is to obtain a new trail easement within the crown of any new levee location at no charge to the City to allow for the publicly accessible north -south trail system described herein. In the event that the levee is reconstructed, and applicable agencies permit a pedestrian trail to be located on the new levee location and Segale controls the lands of the new levee location, then, the Parties shall revise the trail easement to ensure the publicly accessible north -south trail system follows the crown of the new levee configuration. (b) Development projects within the Prato District are required to provide a total of six 14-foot wide publicly accessible pedestrian corridors and connections 7 4917-1761-6759, v. 1 37 from the bike/pedestrian trail described above through the Prato District, in locations approved by Segale and City, to off -site pedestrian trails and City rights -of -way. Two of the six pedestrian corridor locations are to be located north and south of the right-of- way/frontage of South 200`h Street. The remaining four pedestrian locations will be sited and constructed as individual sites are developed. The Original Agreement included two additional trail locations (for a total of eight), which two were to be located at South 180th Street and Segale Park Drive C, which are associated with redevelopment of lands that are not included in this Agreement. 4.3 Grading Permit. In accordance with the terms of the Original Agreement, the City reviewed and issued a clearing and grading permit PW10-064. (a) Grading permit PW 10-064 remains active as of the date of execution of this Agreement. The Grading permit PW 10-064 will remain in effect subject to meeting all City requirements, including regular inspections documenting progress toward completion of the scope of work and will function as a master grading permit ("Master Grading Permit"), including, but not limited to, work to prepare building sites, such as when pre -loading of a building site is necessary. Segale will develop a Master Grading Permit tracking spreadsheet and map, tracking all work completed and lands covered by the Master Grading Permit. (b) Parcel Builders will obtain Implementing Approvals for development, tied to lots newly created by phased recording of final plats. Following recording of any final platted lot(s) related to a Parcel Builder's project(s), Segale will provide the City an updated Master Grading Permit tracking spreadsheet and map removing the newly created lot(s) from coverage under the Master Grading Permit. (c) Nothing about the timing for updates to the Master Grading Permit tracking spreadsheet and map restricts the time at which a Parcel Builder may submit its applications for Implementing Approvals. 4.4 Vacation of Remaining Portion of Frager Road/Southcenter Parkway. In the event Segale acquires the Expansion Areas, the City shall vacate and convey to Segale the area described in the attached Exhibit 7B, which is a portion of Frager Road/Southcenter Parkway. The vacation shall be at no cost to Segale, in recognition of the consideration set forth in this Agreement and the value associated with Segale's dedication of a portion of Southcenter Parkway. 4.5 MAS Tukwila Parcel. MAS owns an approximately four -acre parcel, abutting Orillia Road and S 204`h Street, King County Tax Parcel no. 0322049062. The MAS parcel is within the Prato District, such that development of the MAS lands is subject to this Agreement. MAS's rights and obligations under this Agreement match those of other Parcel Builders, except as expressly stated herein. 4.6 Periodic Reports. Every five years, Segale agrees to prepare and submit to the Mayor for review a report that summarizes the progress in implementing this Agreement, including: 4917-1761-6759, v. 1 38 8 (a) The amount of development that has occurred as compared to the Development Limits described in Section 3, and including the number of housing units, and square feet of commercial uses; (b) Community benefits provided and a summary of future planned (c) The trip tracking spreadsheet, compared to the total number of trips (d) The Impervious Surfaces Tracking Spreadsheet, compared to the total impervious surfaces allowed; and (e) Stormwater Monitoring Results based on annual data collection as set forth in Exhibit 11. development; allowed; 5. Development Standards. The Prato District will be developed under the jurisdiction of the City pursuant to the terms and conditions of this Agreement. This Agreement sets forth the development standards, mitigation measures, and other conditions of development. 5.1 Native Growth Protection Areas (NGPA). No development shall be permitted to occur in a Native Growth Protection Area except City -approved trails, the Orillia Road Connector and utilities (including, but not limited to, electrical transmission lines, water and sewer system lines), and access roads for levee maintenance. NGPAs shall be left permanently in an undisturbed vegetated state and shall not be cleared or improved except as necessary to (1) prune or remove dead or diseased trees, (2) remove invasive or exotic vegetation, (3) prune or remove trees or other vegetation presenting a threat to life or safety or growing over roadways, levees, drainage ditches, trails, or other corridors that must be kept clear, (4) maintain mitigation areas, or (5) permit the work expressly described in this Section 5.1. For the purposes of this Agreement, the NGPAs are identified in Exhibit 3 attached hereto. 5.2 Vesting of Development Regulations. Development of the Prato District is vested to the Tukwila Municipal Code ("TMC") development regulations and standards denoted in Exhibit 8 and in effect on the date of mutual execution of this Agreement through the term of this Agreement at Section 9.13 ("Vested Development Regulations"). Development of the Prato District shall not be subject to any amendments to, or replacements of, the Vested Development Regulations. The following is a summary list of the TMC Chapters containing in whole or in part the Vested Development Regulations that are set forth in detail in Exhibit 8: (a) TMC Chapter 9.50 (Concurrency Management) (b) TMC Chapter 14.19 (Sewer Connections — Preliminary Plat of Tukwila South) 9 4917-1761-6759, v. 1 39 (c) TMC Chapter 14.30 (Surface Water Management) (d) TMC Chapter 17.08 (Boundary Line Adjustments and Lot Consolidations) (e) TMC Chapter 17.12 (Detailed Procedures for Short Subdivisions) (f) TMC Chapter 17.14 (Detailed Procedures for Long Subdivisions) (g) TMC Chapter 17.16 (Detailed Procedures for Binding Site Improvement Plans (BSIPs)) (h) TMC Chapter 17.20 (Design and Improvement Standards for the Subdivision of Land) TMC Chapter 17.24 (Procedures for Public Improvements) TMC Chapter 18.02 (Title) TMC Chapter 18.04 (General Provisions) TMC Chapter 18.06 (Definitions) TMC Chapter 18.08 (Districts Established — Map) TMC Chapter 18.09 (Land Uses Allowed by District) TMC Chapter 18.41 (Tukwila South Overlay District) TMC Chapter 18.44 (Shoreline Overlay) TMC Chapter 18.45 (Environmentally Critical Areas) TMC Chapter 18.50 (Supplemental Development Standards) TMC Chapter 18.52 (Landscape Requirements) TMC Chapter 18.56 (Off-street Parking and Loading Regulations) TMC Chapter 18.58 (Wireless Communication Facilities) TMC Chapter 18.60 (Design Review) TMC Chapter 18.64 (Conditional Use Permits) TMC Chapter 18.66 (Unclassified Use Permits) TMC Chapter 18.70 (Nonconforming Lots, Structures and Uses) 4917-1761-6759, v. 1 40 10 (z) TMC Chapter 18.72 (Variances) (aa) TMC Chapter 18.80 (Amendments to the Comprehensive Plan) (bb) TMC Chapter 18.82 (Amendments to Development Regulations) (cc) TMC Chapter 18.84 (Amendments to the Zoning and Comprehensive Plan Maps) (dd) TMC Chapter 18.86 (Development Agreements) (ee) TMC Title 18, Figure 1 (Shoreline Use Matrix) (ff) TMC Title 18, Figure 4 (Location and Measurement, Yards on Lots) (gg) TMC Title 18, Figure 6 (Off -Street Parking Area Dimensions) (hh) TMC Title 18, Figure 7 (Required Number of Parking Spaces for Automobiles and Bicycles) TMC Title 18, Figure 8 (Parking for the Handicapped) TMC Chapter 21.04 (State Environmental Policy Act) City of Tukwila Infrastructure Design and Construction Standards (2025) 5.2.1 Modifications to Vested Development Regulations. A complete copy of the Vested Development Regulations is included as Exhibit 8. The following additional development standards and requirements modify certain elements of the Vested Development Regulations. 5.2.1.1 Stormwater Modifications. The regional stormwater facilities and conveyance systems have been sized and installed to accommodate the stormwater drainage from all future development in Prato District and other lands, as described in the City -approved Technical Information Report for Tukwila South Master Stormwater Infrastructure Plan (Goldsmith, May 2010, as revised) and the Tukwila South 401 Certification. (a) Already Constructed Facilities. Pursuant to the Original Agreement, all of the following have already been constructed: (a) the primary trunk storm drain within Southcenter Parkway from S. 180`h Street to S. 200`h Street (the "Trunk Storm Drain"), (b) a detention/water quality facility for the North Basin ("North Facility") which outflows into the City's S. 180`h Street Pump station (P-15), to route stormwater either to the Green River or into the King County P-17 Pump Station, and (c) a detention/water quality facility for the South Basin ("South Facility") which outflows into the Green River, with emergency overflow to Johnson Creek. The City agrees that the 11 4917-1761-6759, v. 1 41 Trunk Storm Drain and the North and South Facilities are vested to the regulations in place at the time of construction and are currently functioning as designed. Segale agrees to provide within six months of the effective date of this Agreement a Covenant for Operations and Maintenance of the stormwater facilities to include the following terms: (i) permission for the City to access the future flow control valve between the North detention pond and the City's pump station, and to access the existing North and South stormwater facilities; (ii) a requirement for reasonable notice from the City to Segale before exercising the City's right of access to the flow control valve or the stormwater facilities; (iii) permission for the City to use the flow control valve to shut off the flow from the North detention pond to the City's 180th Street pump station such as if (examples only): (1) a shutdown is ordered by the Corps of Engineers or the King County Flood Control District due to flood conditions in the Green River, or (2) the City needs to take the P-15 pump station offline for scheduled improvements, major repairs, or unscheduled emergencies and waters from the North detention pond cannot be diverted to the P-17 pump station; (iv) authorization for the City to inspect the Segale stormwater facilities to ensure compliance with its NPDES permit and the applicable monitoring provisions for those facilities. (b) Extra -Territorial Lands. The Parties acknowledge that the North and South Facilities and stormwater facilities within City streets leading to those ponds were also sized to convey stormwater from certain lands outside the City of Tukwila and stormwater facilities within City streets leading to such ponds were also sized to convey stormwater from these extra -territorial lands to the pond. Any future development located on those lands will be subject to drainage review following any applicable requirements of the permitting jurisdictions with authority over those lands. (c) Future Stormwater Facilities. The Parties acknowledge that new applications for Implementing Approvals in the Prato District will be evaluated for, and shall be required to provide, On -Site Flow Control Best Management Practices pursuant to the Stormwater Manual Core Requirement #9. In addition, the Parties acknowledge that new development permit applications in the Prato District will be evaluated for, and will be required to provide, water quality controls during construction, such as temporary erosion and sedimentation control plans. New development also will provide parcel storm drains for collection and conveyance of runoff from individual 4917-1761-6759, v. 1 42 12 Development Parcels to the already constructed facilities. Segale will remain responsible for ensuring adequate collection, storage, and treatment of all stormwater in the Prato District. Additionally, Segale agrees to install equipment between the North detention pond and the City's 180th Street pump station to allow for flow control and monitoring of discharge quantities. 5.2.1.2 Transportation Concurrency Modifications. All applications for Implementing Approvals within the Prato District that are below the Trip Ceiling will be considered exempt from the road transportation concurrency test required in TMC 9.50.030 and shall instead submit a Trip Generation Report as part of the project application materials submitted for review by the City. Following approval of the application, Segale will use the Trip Generation Report to update the trip tracking spreadsheet found in Exhibit 6 to determine the cumulative Net New Trips and calculate traffic impact fees. A Trip Generation Report and updated trip tracking spreadsheet shall be filed with every new application for new or re -development. 5.2.1.3 Clearing and Grading Design Standard Modifications. The following exceptions to otherwise applicable ordinances shall apply to the Prato District during the Term of this Agreement: (a) A significant tree survey and tree replacement plan are not required within Development Parcels. (b) Slope grading - Slope stability and slope grading limitations shall be evaluated within site development areas based on geotechnical evaluation and applicable codes. (c) A vegetative restoration plan is not required except for the wetland mitigation portions of the NGPAs. (d) Permanent NGPA signs are required. 5.2.1.4 Clearing, Grading and Impervious Area Limitation Allowance/Modification. The Parties agree that 100% of the Development Area, shown on Exhibit 3, may be cleared and graded, and within that Development Area, up to 85% of the land served by each stormwater facility may be covered with impervious surfaces. The land area of the Expansion Areas is included in this Section 5.2.1.4. 5.2.1.5 Floodplain Development Review. Development in any areas of the Prato District lying within a 100-year floodplain, as designated by the Federal Emergency Management Agency ("FEMA"), shall be subject to all laws and regulations governing development within such FEMA-designated 100-year floodplains that are in effect at the time of a complete development application (the "Floodplain Regulations"). (a) Within 12 months of the effective date of this Agreement, Segale will prepare for review by the City a Letter of Map Revision 13 4917-1761-6759, v. 1 43 ("LOMR"). The City shall forward the LOMR to FEMA for review and when the LOMR is approved by FEMA, future building applications will not be subject to the Floodplain Regulations. (b) Applications received prior to the approval of the LOMR will be reviewed against the current approved flood map and required to comply with current Floodplain Regulations as set forth above. The City's floodplain review will utilize the biological evaluation already conducted for the La Pianta Business Campus Development Project and the conclusions provided by the relevant federal agencies between 2005 and 2010. 5.2.2 No Vesting to Process or Procedural Codes. When a different process or procedure is set in this Agreement, for example the processes to be followed for SEPA and for transportation concurrency, the new process or procedure controls. As to all other processes, the Vested Development Regulations as compiled in Exhibit 8 do not include vesting to procedural regulations, such as the decisionmaker for a permit, appeal procedures, procedures to obtain permit extensions and similar matters, and processes shall follow then -current codes. The Tukwila Community Development Director or designee shall be the final decisionmaker for the applicability of City codes and processes to future permit applications. 5.2.3 Impact Fees. Nothing in this Agreement shall preclude the City from assessing duly enacted impact fees at the time of any building permit issuance for any building permit within the Prato District. 5.2.4 Police Power/Pre-emption. Nothing herein relieves Segale of any obligations it may have during the Term to comply with state or federal laws or regulations of any kind. The proposed development shall not be vested against the application of development standards that are imposed by virtue of state or federal pre-emption of the City's regulatory authority. As provided by RCW 36.70B.170(4), the City reserves the authority to impose new or different regulations to the extent required by a serious threat to public health and safety. 5.2.5 Building Codes. The International Building Code, International Fire Code, and other construction codes in effect in the State of Washington and adopted by the City as of the date of the filing of a complete application for a building permit shall apply to all new development and the redevelopment or modification of existing development. 5.2.6 Opting Forward. During the Term of this Agreement, and subject to Segale's approval, Parcel Builders may choose to waive vesting and develop in accordance with one or more Tukwila Municipal Code chapters in effect at the time of filing of a complete permit application on a parcel -by -parcel basis. In the event a Parcel Builder chooses to waive vesting, the Parcel Builder shall inform the City at the time of application, and provide proof of Segale's approval to allow the waiver of vesting. 4917-1761-6759, v. 1 44 14 5.3 Transportation Improvements. 5.3.1 Construction of Orillia Road Connector. As described in the SEPA Addendum and accompanying documentation, there are no changes to the transportation mitigation required under the Original Agreement. That mitigation includes a trigger for Segale to construct, at its own expense, a new, up to four -lane, arterial connector between Orillia Road S. and Southcenter Parkway Extension ("Orillia Road Connector"). That trigger calls for Segale to complete construction of the Orillia Road Connector within 6 years following the time 7500 Net New Trips are generated by the Prato District development (the "Orillia Road Completion Date"). Segale shall, at its own cost, obtain all state, federal, and local permits and approvals required for the Orillia Road Connector. Subject to applicable laws and ordinances and the terms and conditions of this Development Agreement, the City agrees to cooperate with Segale in obtaining such permits and approvals. A diagram of the Orillia Road improvement is attached hereto as Exhibit 9. If the Orillia Road Connector required hereunder cannot be constructed within the time frame set out herein, then, if Segale desires to continue with new development absent the construction of this improvement, Segale may, as an alternative to construction of the Orillia Road Connector, propose to (i) reduce or defer the amount of development proposed in the Prato District; (ii) implement Transportation Demand Management (TDM) strategies; and/or (iii) construct other transportation system improvements ("Alternative Mitigation"). The City may approve such Alternative Mitigation if, with such Alternative Mitigation in place, the project passes a test under the City's transportation concurrency management system, applying the requirements of TMC 9.48 and TMC 9.50. Provided that under no circumstance can implementing Alternative Mitigation measures allow the construction of more than 10.3 million square feet of new Building Floor Area. 6. SEPA Compliance. 6.1 Prior SEPA Documents. Development within the Prato District as contemplated in this Agreement has been addressed and analyzed in prior environmental documents and current SEPA documents, including, but not limited to, environmental impact documents prepared for Tukwila's Comprehensive Plan, the Tukwila South Environmental Impact Statement including the "2040 Horizon Analysis" and a SEPA Addendum (collectively, the "SEPA Documents"). The SEPA Documents shall constitute compliance to the fullest extent possible under SEPA for all Implementing Approvals through 2040. 6.2 Further SEPA Review Required. The City may require additional SEPA review when: (a) an Implementing Approval or requested modification materially exceeds the Project Envelope (hereinafter defined) and the Vested Development Regulations. 15 4917-1761-6759, v. 1 45 (b) the City concludes (pursuant to SEPA, SEPA Rules, and City SEPA regulations) that substantial changes have been made to the Prato District so that, as mitigated, it is likely to have significant adverse impacts not previously analyzed in the SEPA Documents and which impacts cannot be mitigated below a level of significance by applicable local, state or federal regulations. (c) the City concludes (pursuant to SEPA, SEPA Rules, and City SEPA regulations) that there is new information indicating probable significant adverse environmental impacts of the Prato District not previously analyzed in the SEPA Documents that cannot be mitigated below a level of significance by applicable local, state or federal regulations. For purposes of this Agreement, "Project Envelope" means the level and range of development (including maximum structure height, floor area, bulk and use) analyzed within the preferred alternative reviewed in the Tukwila South EIS and any subsequent addenda or SEPA Documents. The Project Envelope includes all of the physical aspects of a general development plan, individual project, or other on -site or off -site physical improvements as disclosed and analyzed in the Tukwila South EIS. As used herein, materially exceeds means the proposal, as mitigated, is likely to have significant adverse impacts not previously analyzed in the SEPA Documents or any other SEPA environmental document prepared for property within the Prato District area, and which impacts cannot be mitigated below a level of significance by applicable local, state or federal regulations. 6.3 Written Notice. If the City determines at any time during the Term that it intends to require additional SEPA review for any Implementing Approval, the City shall give Segale written notice thereof and provide Segale an opportunity to modify the Implementing Approval application so as to render such additional SEPA review unnecessary. 7. Dispute Resolution Process. 7.1 The parties shall use their best efforts to resolve disputes arising out of or related to this Agreement using good faith negotiations by engaging in the following dispute escalation process should any such disputes arise: (a) Level One. Segale's project manager and a City staff or agency member appropriate to the nature of the dispute (selected from among the City's Development Supervisor, Building Official, PSRFA Fire Marshal or City Engineer, or a designee identified by the Administration) shall meet to discuss and attempt to resolve the dispute in a timely manner. If they cannot resolve the dispute within fourteen (14) calendar days after referral of that dispute to Level One, either party may refer the dispute to Level Two. (b) Level Two. Segale's principal and the City's Community Development Director or Public Works Director (or a designee of either of the foregoing identified by the Administration) shall meet to discuss and attempt to resolve the dispute, 4917-1761-6759, v. 1 46 16 in a timely manner. If they cannot resolve the dispute within fourteen (14) business days after referral of that dispute to Level Two, either party may refer the dispute to Level Three. (c) Level Three. Segale's principal (or designee) and the Mayor and the City Administrator (or the City Administrator's designee) shall meet to discuss and attempt to resolve the dispute in a timely manner. Counsel for the parties shall be permitted to attend Level Three meetings. (d) Level Four. In the event the dispute is not resolved at Level Three within fourteen (14) calendar days after referral of that dispute to Level Three, Segale or the City may refer the dispute to mediation, with a mediator acceptable to the other party, or if the parties cannot agree upon a mediator, shall request a mutually acceptable dispute resolution provider to appoint a mediator to assist. Segale and the City shall share equally the compensation, costs, and expenses of the mediator, but each shall be responsible for their own fees and expenses of its own witnesses, exhibits, and counsel. The parties to mediation shall sign an agreement to mediate, which agreement will include a limitation on the admissibility in any future arbitration or court action of anything said, any admission made, and any documents prepared in the course of the mediation. Any settlement reached through mediation shall be documented in writing and signed by the parties. If the parties to the mediation do not reach a settlement within thirty (30) days after submission of the matter to the mediator, then the mediator shall issue a notice of termination of the mediation explaining that the parties were unable to reach agreement. 7.2 Except as otherwise specified in this Agreement, in the event the dispute is not resolved at Level Four within thirty (30) calendar days after referral of that dispute to Level Four, either party may refer the dispute to binding arbitration, as set forth herein. At all times prior to resolution of the dispute, the parties shall continue to perform under this Agreement in the same manner and under the same terms as existed prior to the dispute. 7.3 In the event that a dispute is referred to binding arbitration, the parties agree to the following procedure: (a) Binding arbitration between the parties pursuant to this Section shall be governed by the rules and procedures set forth in this Section. (b) Within seven (7) calendar days of the date the dispute is referred to binding arbitration, each party shall provide the other party with the names of three neutral arbitrators having significant experience in the subject matter of the dispute and in arbitrating disputes. The parties will thereafter attempt in good faith to select an arbitrator from this panel of six candidates. (c) If the parties to the dispute are unable to agree upon a single arbitrator within twenty-eight (28) calendar days of the date the dispute is referred to binding arbitration, then each party shall designate one arbitrator from its panel of three, the two arbitrators selected in that manner will choose a third arbitrator from among the remaining panel members, and this third arbitrator so selected would act as the single arbitrator for the dispute. 17 4917-1761-6759, v. 1 47 (d) Upon selection of the arbitrator, said arbitrator shall determine the question(s) raised within fourteen (14) calendar days, unless a different period of time is otherwise agreed upon by the parties in writing, provided that issues of arbitrability may not be decided by the arbitrator. Said arbitrator shall then give both parties reasonable notice of the time (which time shall be within thirty (30) calendar days of the arbitrator's determination of the questions raised, unless a different period of time is otherwise agreed upon by the parties), and place of hearing evidence and argument; take such evidence as the arbitrator deems relevant, with witnesses required to be sworn; and hear arguments of counsel or others. (e) After consideration of all evidence, testimony and arguments, said single arbitrator shall, within thirty (30) days of completion of the hearing, promptly state such decision or award in writing. Said decision or award shall be final, binding, and conclusive on all parties to the arbitration when delivered to them, except as provided in Subsection 7.3(h). Until the arbitrator issues the first decision or award upon any question submitted for the arbitration, performance under the Agreement shall continue in the manner and form existing prior to the rise of such question. After delivery of said first decision or award, each party shall forthwith comply with said first decision or award immediately after receiving it. (f) Segale and the City shall share equally the compensation, costs, and expenses of the arbitrators, but each shall be responsible for their own fees and expenses of its own witnesses, exhibits, and counsel. Segale and the City shall pay the compensation, costs and expenses of the single arbitrator or the additional arbitrator in the board of arbitrators in equal shares. (g) The arbitrator shall have the authority to enter awards of equitable remedies consistent with the obligations of the City and Segale under this Agreement. (h) The arbitrator shall not have the authority to enter any award, the satisfaction of which by the party to be bound, would be impermissible under any law, regulation, or funding agreement to which the bound party is subject. The determination of any such impermissibility shall be made by a court of competent jurisdiction within the State of Washington and under the laws of the State of Washington. Any such determination shall be appealable. 7.4 Nothing in this Section 7 shall preclude either party from seeking injunctive or equitable relief prior to the initiation or completion of this dispute resolution process. 8. Original Agreement Superseded; Amendments to Agreement. This Agreement supersedes and replaces the Original Agreement between the Parties and contains all terms, conditions and provisions agreed upon by the Parties hereto, and this Agreement shall not be modified except by written amendment executed by the Parties. (a) Major Amendments. Amendments to this Agreement that materially modify the intent and policy of the Agreement are Major Amendments and must 4917-1761-6759, v. 1 48 18 be approved by the Parties and the City Council consistent with state law. An example of a Major Amendment is a proposal to increase impacts from the Prato District, such as by increasing the current Trip Ceiling. (b) Minor Amendments. Amendments that do not materially modify the intent of this Agreement shall be considered a "Minor Amendment" and shall be processed pursuant to TMC 18.108.010 as a Type 1 decision. An example of a Minor Amendment is a revision to the dispute resolution process. (c) Amendment Process. An amendment to this Agreement may be requested by Segale or by the City pursuant to the notice provisions herein. The determination regarding whether an amendment to this Agreement is Minor or Major shall rest solely with the Community Development Director without any right to appeal by any Party. In no case may any Party amend this Agreement without the written consent of all other Parties; provided, that MAS's agreement to execute any amendment to this Agreement shall not be unreasonably withheld. 9. General Provisions. 9.1 Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Washington. 9.2 Recording. This Agreement or a memorandum thereof shall be recorded against the Prato District as a covenant running with the land and shall be binding on the Parties and their heirs, successors and assigns for the Term of this Agreement. Segale shall record this Agreement, and exhibits thereto, and shall pay the King County recording fee. 9.3 Agreement Binding on Successors; Respective Obligations of Segale and Parcel Builders. This Agreement shall be binding upon and shall inure to the benefit of the heirs, successors and assigns of Segale, and upon the City, except as limited and conditioned in this Agreement. Segale's general duties and obligations under this Agreement for the Prato District are not intended to be delegated to Parcel Builders unless a particular duty or obligation, specifically and directly related to the Development Parcel in question, is expressly imposed by the City as a term or condition of an Implementing Approval for that Parcel. 9.4 Parcel Builders' Obligations; Notice to City re Parcel Builder; Declaration of Covenants for Prato District. The Parties acknowledge that development of the Prato District may involve transfer of undeveloped or partially developed Development Parcels in the Prato District or the Expansion Areas, each a Development Parcel, to one or more Parcel Builders. Those Parcel Builders will in turn own, develop and/or occupy portions of the Prato District and buildings thereon as part of the Prato District. Parcel Builders shall be obligated with respect to all conditions of Implementing Approvals applicable to their respective Development Parcels, unless such an obligation is specifically identified in this Agreement or in the Implementing Approval as that of Segale. Segale anticipates an owners' association will be created, and private covenants will be adopted for the Prato District and enforced by the owners' association. 19 4917-1761-6759, v. 1 49 9.5 Interpretation; Severability. 9.5.1 Interpretation. The parties intend this Agreement to be interpreted to the full extent authorized by law as an exercise of the City's authority to enter into development agreements pursuant to RCW 36.70B.170 et seq., and this Agreement shall be construed to exclude from the scope of this Agreement and to reserve to the City, only that police power authority which is prohibited by law from being subject to a mutual agreement with consideration. If any Vested Development Regulations conflict with an otherwise applicable provision of the Tukwila Municipal Code, the Vested Development Regulations shall control. 9.5.2 Severability. If any provisions of this Agreement are determined to be unenforceable or invalid in a final decree or judgment by a court of law, then the remainder of this Agreement not decreed or adjudged unenforceable or invalid shall remain unaffected and in full force and effect. In that event, this Agreement shall thereafter be modified, as provided immediately hereafter, to implement the intent of the parties to the maximum extent allowable under law. The parties shall diligently seek to agree to modify the Agreement consistent with the final court determination, and no party shall undertake any actions inconsistent with the intent of this Agreement until the modification to this Agreement has been completed. If the parties do not mutually agree to modifications within forty-five (45) days after the final court determination, then either party may initiate the arbitration process under Section 7 for determination of the modifications that will implement the intent of this Agreement and the final court decision. 9.6 Authority. Each party respectively represents and warrants that it has the power and authority, and is duly authorized, to enter into this Agreement on the terms and conditions herein stated, and to deliver and perform its obligations under this Agreement. 9.7 Exhibits and Appendices Incorporated. Exhibits 1 through 11 are incorporated herein by this reference as if fully set forth. 9.8 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. 9.9 Time of the Essence. Time is of the essence of this Agreement and of every provision hereof. Unless otherwise set forth in this Agreement, the reference to days shall mean calendar days. If any time for action occurs on a weekend or legal holiday in the State of Washington, then the time period shall be extended automatically to the next business day. 9.10 Entire Agreement. This Agreement represents the entire agreement of the parties with respect to the subject matter hereof. There are no other agreements, oral or written, except as expressly set forth herein and this Agreement supersedes all previous agreements, oral or written. 4917-1761-6759, v. 1 50 20 9.11 Default and Remedies. 9.11.1 Cures Taking More Than Thirty Days. Except as expressly provided otherwise in this Agreement, no party shall be in default under this Agreement unless it has failed to perform as required under this Agreement for a period of thirty (30) days after written notice of default from any other party. Each notice of default shall specify the nature of the alleged default and the manner in which the default may be cured satisfactorily. If the nature of the alleged default is such that it cannot be reasonably cured within the thirty (30) day period, then commencement of the cure within such time period and the diligent prosecution to completion of the cure shall be deemed a cure. 9.11.2 Rights of Non -Defaulting Party. A party not in default under this Agreement shall have all rights and remedies provided by law or equity, including, without limitation, damages, specific performance, or writs to compel performance or require action consistent with this Agreement. 9.11.3 Attorneys' Fees. In any action to enforce or determine a party's rights under this Agreement, the prevailing party shall be entitled to attorney's fees and costs. 9.12 Relief Against Defaulting Party or Portion of Prato District. In recognition of the anticipated transfers by Segale of parcels of the Prato District to Parcel Builders, remedies under this Agreement shall be tailored to the Prato District or parties as provided below. 9.12.1 Relief Limited to Affected Development Parcel. Any claimed default shall relate as specifically as possible to the portion or Development Parcel of the Prato District involved, and any remedy against any party shall be limited, to the extent possible, to the owners of such portion or Development Parcel of the Prato District. 9.12.2 Relief Limited to Affected Owner. To the extent possible, the City shall seek only those remedies that do not adversely affect the rights, duties or obligations of any other nondefaulting owner of portions of the Prato District under this Agreement, and shall seek to utilize the severability provisions set forth in this Agreement. 9.13 Term. The Term of this Agreement expires on December 31, 2040 ("Term"). 9.14 No Third -Party Beneficiary. This Agreement is made and entered into for the sole protection and benefit of the parties hereto and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. Parcel Builders in Tukwila South shall be deemed to be successors under this provision. 9.15 Interpretation. This Agreement has been reviewed and revised by legal counsel for both parties, and no presumption or rule construing ambiguity against the drafter of the document shall apply to the interpretation or enforcement of this Agreement. 21 4917-1761-6759, v. 1 51 9.16 Notice. All communications, notices, and demands of any kind that a party under this Agreement requires or desires to give to any other party shall be in writing and either (i) delivered personally, (ii) sent by email with an additional copy mailed first class, or (iii) deposited in the U.S. mail, certified mail postage prepaid, return receipt requested, and addressed as follows: If to the City: City of Tukwila 6200 Southcenter Boulevard Tukwila, Washington 98188 Attn: Mayor's Office and Director of Community Development Email: If to Segale: Segale Properties LLC P.O. Box 88028 Tukwila, Washington 98138-2028 Attn: Mr. Mark A. Segale Email: msegale@segaleproperties.com If to MAS: MAS Tukwila LLC 2711 West Valley Highway North #200 Auburn, Washington 98001 Attn: Matthew Jacobsen, Manager Email: mjacobsen@fnw-inc.com Notice by hand delivery, or email shall be effective upon receipt, provided that notice by email shall be accompanied by mailed notice as set forth herein. If deposited in the mail, certified mail, return receipt requested, notice shall be deemed delivered forty- eight (48) hours after deposited. Any party at any time by notice to the other party may designate a different address or person to which such notice or communication shall be given. 9.17 Delays. If either party is delayed in the performance of its obligations under this Agreement due to Force Majeure, then performance of those obligations shall be excused for the period of delay. For purposes of this Agreement, economic downturns, loss in value of Segale assets, inability to obtain or retain financing, do not constitute a force majeure event. 9.18 Indemnification. Except as otherwise specifically provided elsewhere in this Agreement and any exhibits hereto, each party shall protect, defend, indemnify and hold harmless the other party and their officers, agents, and employees, or any of them, from and against any and all claims, actions, suits liability, loss, costs, expenses, and damages of any nature whatsoever, which are caused by or result from any negligent act or omission of the party's own officers, agents, and employees in performing services pursuant to this Agreement. In the event that any suit based upon such a claim, action, loss, or damage is brought against a party, the party whose negligent action or omissions gave rise to the claim shall defend the other party at the indemnifying party's sole cost and 4917-1761-6759, v. 1 52 22 expense; and if final judgment be rendered against the other party and its officers, agents, and employees or jointly the parties and their respective officers, agents, and employees, the parties whose actions or omissions gave rise to the claim shall satisfy the same; provided that, in the event of concurrent negligence, each party shall indemnify and hold the other parties harmless only to the extent of that party's negligence. The indemnification to the City hereunder shall be for the benefit of the City as an entity, and not for members of the general public. 9.19 Prato District Is a Private Undertaking. The Prato District is a private development and the City has no interest therein except as authorized in the exercise of its governmental functions. [End of Agreement with incorporated exhibits and signatures on the following pages] LIST OF EXHIBITS TO THE DEVELOPMENT AGREEMENT Exhibit 1: Exhibit 2: Exhibit 3: Exhibit 4: Exhibit 5: Exhibit 6: Exhibit 7A: Exhibit 7B: Exhibit 8: Exhibit 9: Exhibit 10: Exhibit 11: Prato District Vicinity Map Property Legal Descriptions Prato District Sensitive/Critical Areas and Development and Non - Development Area Map Mixed -Use Development Master Plan Calculation of Existing Development Trips Prato District Credit Trip Ceiling Tracker Expansion Areas Legal Description Frager Road/Southcenter Parkway R.O.W. Vested Development Regulations Proposed Orillia Road Connector Impervious Area Tracking Map and Tukwila South -Prato District Impervious Surfaces Tracking Spreadsheet Stormwater Monitoring 23 4917-1761-6759, v. 1 53 In Witness Whereof, the parties have caused this Agreement to be executed, effective on the day and year set forth on the first page hereof. CITY OF TUKWILA, a Washington municipal corporation By: Mayor Date: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney SEGALE PROPERTIES LLC, a Washington limited liability company By: Metro Land Development, Inc. Its: Manager By: Mark A. Segale, President Date: MAS TUKWILA LLC, a Washington limited liability company By: Date: 4917-1761-6759, v. 1 54 24 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me , to me known to be the mayor of CITY OF TUKWILA, a Washington municipal corporation, that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said Washington municipal corporation for the uses and purposes therein mentioned, and on oath stated that is authorized to execute said instrument. GIVEN under my hand and official seal this day of , 2025. (Print name of notary) NOTARY PUBLIC in and for the State of Washington, residing at My commission expires 25 4917-1761-6759, v. 1 55 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me Mark A. Segale, to me known to be the person who signed as President of Metro Land Development, Inc., the manager of SEGALE PROPERTIES LLC, a Washington limited liability company, that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said limited liability company, for the uses and purposes therein mentioned, and on oath stated that said individual is authorized to execute said instrument. GIVEN under my hand and official seal this day of , 2025. (Print name of notary) NOTARY PUBLIC in and for the State of Washington, residing at My commission expires 4917-1761-6759, v. 1 56 26 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me , to me known to be a of MAS TUKWILA LLC, a Washington limited liability company, that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said limited liability company, for the uses and purposes therein mentioned, and on oath stated that said individual is authorized to execute said instrument. GIVEN under my hand and official seal this day of , 2025. (Print name of notary) NOTARY PUBLIC in and for the State of Washington, residing at My commission expires 27 4917-1761-6759, v. 1 57 EXHIBIT 1 Prato District Vicinity Map COLOR COPY OF EXHIBIT 1 IS ON FILE WITH THE CITY 58 i', err/l r/,/ v'71J1' Ii�n�Pi',i:181Y14�`'�1i�d�wl�Iuum1, �IIua1II11111 1111IIVI VpVp11111111 II''ii iii1i10IIIIIIIII IIIIIIIIIIIIII IIIII II Ill uuWllwla ° II S 2O4TH ST ill II�mliidyli�iiiiiiiiiiil 11120 luu 6"'1SO'l'H ST PRATO DISTRICT VICINITY MAP EXHIBIT 1 LAST REVISED: 2.24.25 a°�� IN'Yrr� r'r !l �f' 59 EXHIBIT 2 Property Legal Descriptions 60 EXHIBIT 2 PROPERTY LEGAL DESCRIPTIONS TUKWILA SOUTH FINAL PLAT PHASE 1 THE PLAT OF TUKWILA SOUTH PHASE 1 AS FILED IN VOLUME 284 OF PLATS AT PAGE 72 AND RECORDED UNDER KING COUNTY RECORDING NUMBER 20180823000390. PARCEL - 352304-9109 PARCEL "B" CITY OF TUKWILA BOUNDARY LINE ADJUSTMENT NO L16-0070 AS RECORDED UNDER KING COUNTY RECORDING NUMBER 20170605900032. PARCEL - 032204-9062 PARCEL - A, CITY OF TUKWILA BOUNDARY LINE ADJUSTMENT NO. L16-0075 AS RECORDED UNDER KING COUNTY RECORDING NUMBER 20170501900005. PARCEL - 032204-9102 BEGINNING AT A STONE MONUMENT WHICH IS THE SOUTHEAST CORNER OF SECTION 3, TOWNSHIP 22 NORTH, RANGE 4 EAST OF THE W.M,; THENCE SOUTH 89° 36'00"WEST ALONG THE SOUTH LINE OF SAID SECTION 3, A DISTANCE OF 1326.60 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 89° 36'00"WEST ALONG SAID SECTION LINE 866.40 FEET; THENCE NORTH 26° 08'00"EAST 1477.50 FEET TO THE SOUTH LINE OF SOUTH 204TH STREET; THENCE SOUTH 89° 37'00"EAST ALONG SAID ROAD, 791.30 FEET; THENCE SOUTH 35° 36'00"WEST 973.80 FEET ALONG THE WEST BANK OF DRAINAGE DITCH; THENCE SOUTH 00° 38'00WEST 522.90 FEET ALONG THE WEST BANK OF DRAINAGE DITCH TO THE POINT OF BEGINNING. SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON. 61 PARCEL - 352304-9124 NEW PARCEL "C" CITY OF TUKWILA BOUNDARY LINE ADJUSTMENT NO. L17-0004, CITY OF SEATAC LOT LINE ADJUSTMENT NO. SUB17-0005 RECORDING NO 20170605900031. TOGETHER WITH: THAT PORTION OF VACATED ROAD ADJACENT PER SEA TAC ORDINANCE NO. 17-1012 AS RECORDED UNDER KING COUNTY RECORDING NO. 20180112000792 (BEING A PORTION OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER AND NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 35, TOWNSHIP 23 NORTH, RANGE 4 EAST OF THE W.M, KING COUNTY, WASHINGTON. 62 EXHIBIT 3 Prato District Sensitive/Critical Areas and Development and Non -Development Areas Map 63 1S 2125 a 0 z _O <0 wU O za w= a O0 w 0 ow 0Q zz J a ww Z a 20 U7 LL < 00 wuJ W w z< w+_ wm cm H co X w SEGALE PROPERTIES LLC 64 fi MP'SLIe201£0\530d 1N3W33dfV tld\SsNIMtltlg 1501-1\Otli\11,131/11d013A30 £ \9b101\0102\: ]lip" b G �� EXHIBIT 4 Mixed -Use Development Master Plan COLOR COPY OF EXHIBIT 4 IS ON FILE WITH THE CITY 65 EXHIBIT 4 COLLiNSWOERM. TABLE OF CONTENTS PAGE NUMBER 1 3 7 15 19 --'- ---- . ,.AS_._- 21 A COLLNISWOERMAKI This Master Plan document defines the goals, objectives and vision of Segale Properties to transition almost 500 acres of mostly undeveloped property in Tukwila, Washington, to a memorable regional destination that can compete nationally and internationally for employers and goods and services. With nearly 500 acres of land five minutes from SeaTac Airport and adjacent to 1-5, the Tukwila South project site is the largest private development parcel in the greater Seattle area. Properly planned and implemented, the project will provide 25,000 new jobs and join the University of Washington, Microsoft and Boeing Everett as the region's fourth major,"non-Central Business District" employment center. It will become a major new urban node in the region and provide significant benefits to the city of Tukwila and improve the quality of life of its residents. Because of the sheer size of the site, the implementation of this vision will span many development cycles over 25 to 30 years. The initial value created by early development efforts will allow infill development in future cycles that will continue to build value for the property and increase density over time. The Tukwila South development strategy emphasizes multiple uses, including 5 to 10 million square feet of office technology / flex -tech space, 1 to 2 million square feet of goods and services, and 700 to 1,900 units of housing. These uses will be grouped in fine-grained, pedestrian -oriented districts. A well -planned multi -use environment will also help mitigate development risk as the markets for various uses fluctuate from development cycle to development cycle. The Tukwila South Master Plan's measures to protect and enhance the site's natural environment include the enhancement of Johnson Ditch into a fish -friendly tributary, the creation of back -water fish habitat in the Green River, and the restoration of a 32-acre wetland complex. The project's design will integrate its transportation infrastructure, develop shared parking concepts, and create internal natural environments with visual connections to the green amenity of its western hillside and the open space amenity of the Green River to the east. COLLINSWOERMAFI THE MASTER PLAN AND THE CITY'S COMPREHENSIVE PLAN The Tukwila South Master Plan's vision and guiding principles mirror and reinforce those set out in the City ofTukwila's Comprehensive Plan. As described in this document, Tukwila South will substantially aid the City in creating "safe and secure places to live"and "an economy that provides jobs, ways to get around, schools, and recreational opportunities" all identified as core reasons for the creation of its Comprehensive Plan. The Master Plan also allows the City opportunities to satisfy the Growth Management Act requirements set out in the Comp Plan's introduction, including the identification of"Urban Growth Areas that can accommodate at least 20 years of new population and employment" and the identification and protection of"open space corridors of regional significance." Most importantly, it materially assists what is identified as the Comp Plan's primary charge: to preserve and enhance"Tukwila's long-term economic growth and community viability and identity" The Master Plan represents a rare opportunity to create a strong and appealing identity for the site itself and serve as a highly visible, memorable gateway to the city of Tukwila as a whole. Southcenter Parkway (57th Avenue S) will be expanded and extended through the site in a new alignment; this will provide an improved connection to the area from the Tukwila Urban Center. Improved east -west access will be provided by realignment of 5 178th Street; a future east -west access from Orillia Road to the site will also be developed to accommodate full buildout. Some modification of the western hillside will occur, but the majority of the hillside will remain untouched as an amenity. Portions of the hillside on the north end of the property will be graded and re-lansdscaped to accomodate the relocation of 5 178th Street and to provide fill material for the project. On the south end of the site, north of S 200th Street, it is expected that portions of the hillside will be graded to accommodate development. Special design consideration will be covered by residential design guidelines to be developed and adopted prior to residential development. On -site amenities will include landscaped open space, plazas and courtyards, and a pedestrian/bicycle pathway along the Green River. Because the Tukwila South Master Plan is organized around a combination of campus -type research and office environments and districts, the quality of building design will likely be substantially higher than that found in the surrounding industrial and retail uses. Building design, construction, and materials will be of institutional quality, and coordinated through comprehensive urban design principles. The Master Plan is consistent with City goals calling for zoning and development regulations that encourage growth in certain areas, promote economic use of industrial lands outside the MIC, and retain large parcels in order to facilitate their efficient use, Tukwila South is one of the areas considered for new employment and residential growth in the Comprehensive Plan. A mix of uses will be oriented along Southcenter Parkway. The density of development on the site will support transit use and a secondary onsite street system will be developed with pedestrian circulation in mind, with features such as sidewalks and appropriate signage for pedestrians. The site will be organized around pedestrian -oriented circulation systems, with simplified vehicular circulation, to foster linkages within the campus(es). COLLINSV,VO-Pte1AN COLLNISWOERMAKI DEVE LOPMENT CO CEPT The Tukwila South Master Plan is intended to provide a framework to guide long- term development of the approximately 500 acre site and create the opportunity for an economic engine that would result in new jobs for the region. Between 10 and 14 million square feet of development will be created in a combination of campus office and research environments, and districts that will include retail, residential, hotel and recreational uses. Given its prominent Mt. Rainier views, location adjacent to the Green River and the Southcenter shopping district, the site offers the potential for a truly distinctive"signature" property. The underlying feature of the Master Plan is that larger campus areas will be positioned to accommodate national and international companies specializing in emerging technology industries drawn to a campus setting with expansion potential. A retail village on the north end of the site could contain a range of supporting retail, residential, hotel and recreational uses and will also serve as a gateway to the site from the Tukwila Urban Center. The close proximity to Sea-Tac airport and direct access to the regional transportation infrastructure network (I-5, 1-405, and SR 167) create multi -modal transportation options. In the development's campus environment, buildings will frame open spaces with central plazas and public gathering spaces. Pedestrian -oriented internal circulation and simplified vehicular circulation will promote ease of movement and foster a sense of integration while providing access to recreational, retail, restaurant, and hospitality amenities. Building design, construction, and materials will be coordinated through comprehensive design principles. The development concept for the overall site provides opportunity for between 10 and 14 million square feet of a mix of uses including those related to employment, housing, and goods and services. Table 1 shows the assumed range of uses for development scenarios of 10 million square feet and 14 million square feet. This buildout range and assumed mix of uses within the planning areas should be considered conceptual; ultimately, market forces will determine the specific level of development and the mix of uses over the long term. The potential locations of C O'_ L'. N S \VO c R!N A N SMMIM the various categories of uses shown within the plans on the following pages are also conceptual and will be determined by market forces, Land uses related to employment could include, for example, research and development, office, light manufacturing, limited distribution, and hotel uses. Land uses related to goods and services could include retail and restaurant uses. Housing could consist of a mix of small -lot single-family, townhomes, and multifamily (rental and for sale) units. The natural boundaries presented by the hillside on the west and the Green River on the east drive the site's north -south orientation. The development concept features public and private amenities such as plazas, landscaped open space areas, and pedestrian/bicycle pathways that link the campus to adjacent areas. There will be opportunities for new public access to the Green River and connections to the existing Green River Trail. In the future, there may be a possibility for a pedestrian crossing to Briscoe Park. Alignment of Southcenter Parkway along the west edge of the site and further away from the Green River will afford greater opportunities for open space areas and public river access. The central and southern portions of the site will serve as the campus development's core, anchored by retail and service areas. Design guidelines will acknowledge and address residential uses to the west of Orillia Road. The northern end of the site will include a mix of employment, specialty goods and services and housing that will complement the central campus and reflect a dynamic urban character in its range of retail, residential, hotel, and recreational uses. The architectural scale of the majority of the campus, at buildout, will be three -to six -story structures with both surface and structured parking, with the possibility of heights of up to eight stories in denser, more urban - oriented areas. These structures will relate to each other in the context of the landscape, and their design and construction will be coordinated by comprehensive design principles. Development of individual projects will be subject to the City ofTukwila's permit process to ensure a coordinated approach to campus development, including access/circulation, open space and compatibility among uses. DESIGN PRINCIPLES Design principles are abstract representations of strategies that help guide development for the site. The principles identified in this document grew out of multiple charettes, discussions and meeting between consultants and the Segale family to help define the overall development framework for the Tukwila South property. GATEWAYS The Tukwila South property has an opportunity to highlight its most important points of entry as gateways. These gateways can be functional, symbolic, and memorable aspects for the property. These areas, defined as the yellow circles in the graphic, become the"front porch"for the project. CR_AT NGD S T T CTS Walkability is a key factor in establishing boundaries. There is a national standard for retail malls, which dictates the distance from anchor to anchor should be no more than a 10-minute walk. As represented by the orange circles, each district should be walkable. AMENITY SYSTEMS Amenities such as trails, plazas and open spaces are critical components to a project. Integrating multiple amenities creates "systems" that work together. Developable open space including green areas, hard - surfaced urban plazas, street parks, and pocket parks will be incorporated into the project; with pathways and wayfinding systems that help pedestrians navigate throughout the project. The opportunity exists to create trails to allow for runners, walkers and hikers to utilize the hillside's topography. CONNECTIONS The Tukwila South property has an opportunity to plan for future regional transit connections to Seattle Tacoma International Airport and regional mass transit to the north. The cities of Tukwila and SeaTac, the Port of Seattle and Sound Transit have undertaken a feasibility analysis to develop a people mover system from the airport light rail station through Tukwila South to the commuter rail station at the Tukwila TOD. Tukwila should continue to pursue such opportunities COLLINS., HOUSING OPPORTUNITIES The diverse topography, location, views to Mt. Rainier, and market demands allow the Segale property to accommodate a wide variety of housing environments. This range could include a mix of single-family and multi -family units of low, mid and high-rise structures totaling 1,900 units across the site. Locations of uses shown on this plan are conceptual and will be determined by market fortes. LOW=R S Structures 1 to 3 stories in height; including for -rent and for -sale units of single-family lots, detached townhouses, and flats above retail. Low-rise units would be organized to create neighborhoods within the hillside and areas that are adjacent to the Green River. CoLL'.NSWCcR!NAN Structures 3 to 6 stories in height; including for- rent and for -sale units. Integration with goods and services allow for mid -rise units to integrate with a mix of uses. For example, possible configuration would include housing units constructed over retail. H,GH=RISE Structures 6 stories or greater in height; including for -rent and for -sale units. The opportunity exists for high-rise structures, most likely in the redevelopment of the Segale Business Park in the latter stages of the project's development. RETAIL OPPORTUNITIES There are opportunities to attract and accommodate retail users in three diverse marketplaces: 1. Retail as a catalyst for the market. A one of a kind user is just that...one of a kind. There may be only one chance for this user to locate regionally, and this property has the flexibility to meet the needs of an end user that is currently not in the Northwest marketplace. Locatlons of uses shown on tns plan are cenceocual and will be determined by market forces, RETAIL VILLAGI 2. Retail as it relates to demand from the market. Current and future demand is for a grocery store -anchored village center with a collection of unique and general goods and services, with the ability to grow with market demands. Additionally, large-scale "big -box" area retailers may need more space and would move out of the city otherwise. The northern end of the site offers the uppu rtunity to create a retail village that includes specialty retail and goods and services to support the proposed uses and the underserved surrounding neighborhoods. The success of the Tukwila Urban Center to the north and the realignment of S 178th Street allow for the retail village to represent the front door for the property. Uses are expected to include a grocery store, drug store, and smaller retailers that will serve the surrounding neighborhoods. A retail village on the north end of the site could contain a range of supporting retail, residential, hotel and recreational uses and will also serve as a gateway to the site from the Tukwila Urban Center. 3. Retail as an amenity for the market. Addressing the demands of other uses within or surrounding the property that are complementary to the Tukwila Urban Center shopping district's. COLLINS., R=T __ OPPORTUNITIES (CONTINUED) USES INCLUDE: Bookstores Furniture Stores Financial Institutions Video Stores Toy Stores Service Businesses Sporting Goods Coffee Shops Print Shops Clothing Stores Florists Real Estate Offices Hardware Shops Child Care Travel Agencies Grocery Stores Restaurants Gas Stations Antiques / Art Galleries Drug Stores Big Box Retail Jewelers Residential Ivlulti-family Medical/Dental Offices Audio /Video Stores Leisure Entertainment Representative uses for the retail village, retail district, large-scale retail users, gateway retail and retail center. Game Arcades Residential Units Movie Theaters Office Museum Studios (Art, Photography) Bowling Alley / Pool Hall Music/ Night Club Sports / Exercise Club Restaurants Locations of uses shown on this plan are conceptual fae and will be determined by market forces RETAIL DISTRICT GATEWAY R ETA I ‘.T DRLLARD Adjacent to the"retail village" additional uses would allow for a synergistic multi -use environment for inulti- family residential units, neighborhood retail and office uses that are envisioned as a 24/7 urban environment. _=ERG= SCA1 = RFTAII 1SFR National retailers not currently in the local marketplace or relocation of existing large-scale retailers looking for expansion opportunities. Additional smaller users and service users may be in this area. CO'_L'.NSwOER!NAN & S 200TH ST The intersection of Orillia Road and 5 200th Street allows for the opportunity to create a retail gateway for the property due to the high visibility along Orillia Road. RETAIL CENTER ATS 200TH & SCvT-C=NT_R PARKWAY The intersection of the realignment of Southcenter Parkway and 5 200th Street allows for the opportunity to create a retail center that could serve the surrounding campus office uses. REGIONAL EMPLOYMENOPPORTUNITIES Numerous areas on the site could accommodate national and international companies specializing in emerging technology industries drawn to a campus setting with expansion potential; a range of supporting retail, residential, hotel and recreational uses; adjacent amenities; close proximity to Sea-Tac airport; and direct access to the regional transportation infrastructure network (1-5, 1-405, and SR 167) and multi -modal transportation options. Given its location adjacent to the Green River and the Tukwila Urban Center and its prominent Mt. Rainier views, the site offers such users the potential for a truly distinctive"signature" property. Lo_ations of uses shown on this plan arc conceptual and will be determined sy market forces. "To create a campus, there must be a cohesive environment, appropriate building placements that frame organized open spaces, logical pedestrian circulation to the core of the campus and simplified vehicular circulation. Access to amenities (restaurants, hotels, retail, etc.) that are close to the workplace allow for employees to shop during lunch hours or breaks without a car. This also allows employees to collaborate with other team members within the campus, as opposed to accessing their cars, which can be Inconvenient; to interact with other parts of their business. Another consideration in the development of campuses is the regulation of the overall look of structures. Design standards allow for similar construction of residential retail or office buildings. The buildings will be uniform in their quality of design, construction, and material so that the development is cohesive in nature" (Source: Mike Sheridan,"Urbanizing the Campus": Urban Land Institute, Nov/Dec 2001) LIS=SINCLUDE: Professional Orrice Research & Development Hotels Day Care Facilities Parking Facilities Administrative Conference /Convention Space Medical and Dental Offices Residential Units Flex -Tech Retail Restaurants Health Care Services Government Services Light Manufacturing Uses Service Commercial Business Services Representative uses for this district COLLINS., SHORELINE USES The Tukwila South property's eastern edge is formed by the Green River, from S 180th Street along the north end, to 5 200th Street on the south end. Development within 200 feet along the Green River is regulated by the following shoreline regulations: RIVER ENVIRONMENT :THE AREA BETWEEN THE MIEAN HIGH WA:ER MARK AND THE LOW IMPACT ENVIRONMENT, HAVING THE MOST ENVIRONME:NTALLY PROTECTIVE LAND USE REGULATIONS The river environment will contain no uses or structures other than the following: public and/or private trails; recreation amenities such as benches, tables, viewpoints, and picnic shelters (not to exceed 15 feet in height); support facilities for pollution control such as runoff ponds and filter systems, provided they are at or below grade; information and direction signs; diking for bank stabilization, erosion control, and flood control purposes; bridges, fire lanes and dike maintenance roads; plaza connectors between buildings and dikes (not exceeding the height of the dike). The uses within the river environment will provide access and enhance pedestrian access along the river. LOW IMPACT ENVIRONMENT: THE AREA BETWEEN THE RIVER ENVIRONMENT AND 100 FEET FROM THE MEAN HIGH WATER MARK Uses in the underlying zoning district will be allowed; however, structures will not exceed 35'in height unless a variance is granted. HIGH IMPACT ENVIRONMENT: THE AREA BETWEEN] 100 FEET AND 200 FEET FROM THE MIEAN HIGH ------ MARK HAVING THE LEAST ENVIRONMENTALLY PROTECTIVE LAND LISE REGULATION All uses allowed in the underlying zoning district will be allowed within the high -impact environment. COLLN,VOERMAN e' 20' ee' This page intentionally left blank. COLLINSWOE.V. Communities are not instant creations of urban designers. They are places that grow and evolve as changing needs, opportunities and personalities contribute to their form. The best communities build on their history and background while creating a bold vision for the future. BACKGROUND The Tukwila South project represents an opportunity for the City to enhance its competitive position in the regional marketplace. At approximately 500 acres, the site's sheer size, combined with the consolidated land ownership, existing lower density uses, and proximity to the airport, it is certain to attract attention from national and international companies seeking expansion opportunities. The property currently contains a mix of industrial and agricultural uses with a high potential for redevelopment and the ability to transition to a dynamic urban multi -use district as it phases out its existing, lower - density uses. The Segale family has been systematically assembling property within the Tukwila South area for over 50 years. While there have been discussions about development and markets that could havefilled the property with many of the retail and industrial uses common to this part of theValley, the land has yet to see its first significant development. The guiding principles developed for the project arose from the history of the Segale family, the natural beauty of Puget Sound and the site's key characteristics. With this background as our starting point, we have created the following ten guiding principles for the Tukwila South Master Plan. It is from these that our development plan has been conceived. Additional information on the background of these principles are located within the appendix of this Master Plan. CowNSWCERiasu PRINCIPLE #1: LONG=TERM VISION The development of Tukwila South will be guided by a long-term vision that will create a different, more cohesive development pattern than if the property was developed on a parcel -by -parcel basis. A long-term vision requires a commitment to make decisions and investments that support its development. The Segale family has committed to this long-term vision and to building out the site's central infrastructure including temporary and permanent stormwater and erosion control, mitigation for environmental impacts, mass grading and relocation of the existing flood protection barrier dike as the initial phase. This investment will ensure the long-term plan is implemented. PRINCIPLE #2: CREATING A DESTINATION The Tukwila South project will become a regional destination. Tukwila South is a regionally visible site. The site is considered "close in" in real estate terms and is adjacent to one of the region's largest retail destinations. Many of the valley's residents and businesses move through or around the site daily. Its access and visibility from the valley and eastern edge neighborhoods make it a natural regional destination. The site's initial value is enhanced by its proximity to significant regional investments such as SeaTac Airport, the Southcenter retail district, and 1-405, 1-5, SR 167 and many other local arterials. The Master Plan will ensure these assets are leveraged. PRINCIPLE33 BUILDINGVALUE Development decisions will be weighed by their ability to maximize the site's potential to create value. Tukwila South's full potential can only be reached through the implementation of a long-term strategic vision that uses each newly -developed parcel to lift the value of the remaining parcels. This vision and Master Plan will span many development cycles. Early developments will include low-cost surface parking lots and lower density commercial uses that will allow room for future infill development and redevelopment when structured parking makes economic sense. As the value of the land increases, redevelopment of surface parking lots and infill sites will follow to maximize future density. This can only occur because a significant share of the site is in single ownership. At just under 500 acres, Tukwila South could include regional employment, housing, and goods and services. Multi -use districts will allow many of these uses to work together by sharing infrastructure, parking, and access. These districts will enable the creation of a highly desirable, fine-grained pedestrian environment. When housing, jobs, and goods and services are located appropriately, a community is created. PRINCIPLE .... MULTI -USE Tukwila South will include employment, goods and services, and housing. The project will be multi -use and include a wide range of businesses instead of focusing on industrial and retail users. Residential is also being considered to bring additional vitality to the area. A development strategy that emphasizes multiple uses will increase the rate of development and create a more desirable environment for each use: retail supports housing and jobs, housing supports retail and jobs, jobs support retail and housing. This diversity of uses will support the creation of destination districts, increase the project's overall value, and enhance the vitality of the city of Tukwila. The market value of office and hotel uses will be increased by having retail and restaurant uses nearby. A well -planned multi -use environment will also help mitigate development risk as the markets for various uses Fluctuate from development cycle to development cycle. Careful consideration of use adjacencies is essential to ensure efficient sharing of amenities, parking and infrastructure. Initial planning configurations must also keep future infill development opportunities in mind to ensure judicious use of each square foot of the project's land. PRINCIPLE #5. INCREASING DENSITY OVERTIME Tukwila South will be planned to accommodate increased density over time. As noted in the discussion of Principle #3, the surface parking lots dictated by today's market opportunities for employment, goods and services, and housing will provide the basis for each developing district, enabling its evolution overtime into a denser environment. With each development, the district will become more desirable. This increase in value will allow infill development in the early -phase parking lots and redevelopment of lower density commercial uses. Early -phase uses must, therefore, be carefully chosen to complement each other and serve as engines for future development. It is essential to pick the right retailers, the right employment clusters, and the right mix of housing to create the synergy necessary to allow all of the uses to thrive. PRINCIPLE #6: QUALITY ENVIRONMENT Tukwila South will create a memorable and regionally identifiable place. Tukwila South will build on the Northwest tradition of quality outdoor environments by integrating its iconic outdoor spaces with high quality indoor spaces. Quality building materials combined with traditional Puget Sound building elements (canopies, lush landscaping, etc.) will create memorable and regionally identifiable environments that help attract world - class talent. Growth in the regional economy is expected to come in four major sectors: aerospace, life sciences, information technology, and trade and logistics. Due to its size and location, Tukwila South is perfectly situated to bring these new types of jobs to the city of Tukwila. COLUNSVJ, Because these businesses need to attract the best and brightest, they demand a very high quality work environment. Tukwila South offers the opportunity to live and work in a single location, increasingly associated with a high quality of life. Beautifully designed public spaces will be required to connect jobs with goods and services, and goods and services and jobs with housing. The people who work at Tukwila South will want a development environment that is clean, safe, well organized, and convenient. More than that, like many who live and work in the Northwest, they value quality outdoor environments. Tukwila South's outdoor and indoor environments will be Integrated wherever possible, and the project's amenities will provide a variety of on -site recreational opportunities and connections to the site's outdoor environments. The buildings and the spaces between the buildings will be designed to work together. Institutional - quality building materials and landscape design will support memorable buildings that become Tukwila South's image in the Puget Sound. Establishing dear boundaries and gateways for the project will help define Tukwila South in its environment. PRINCIPLE #7: CONNECTIONS Tukwila South will connect externally to neighboring and regional assets, as well as internally by connecting its districts and their uses. The Tukwila South Master Plan connects the project to its surroundings on many different levels: Extending Southcenter Parkway through the site to 5 200th Street not only connects the property to regional infrastructure, but allows efficient circulation for the site's users and creates a new gateway to the Tukwila Urban Center. Relocating S 178th Street connects adjacent neighborhoods to Tukwila South's new neighborhood goods and services and provides an access point with greater capacity and safety. CO LLINSWO ERMAN Selecting retailers compatible with Southcenter's existing tenants will allow Tukwila South to connect to Tukwila's reputation as a regional retail center. — The five-minute connection to SeaTac Airport will draw airport tenants, travelers and businesses seeking international relationships to Tukwila South. A future non -auto -based transportation link will further enable the growth of airport -dependent users. Providing pedestrian connections throughout the project — from district to district, district to trails and amenities, and district to surrounding neighborhoods — will encourage non -auto -based trips and attract residents and employers. Strategically locating public parking will create a"park-once" environment that makes it easy for pedestrians to connect to site amenities, goods and services, jobs, and housing. pm-0pH#8: Av"ImvITI Tukwila South will create a comprehensive amenity system that leverages the site's assets. The Tukwila South project is perfectly positioned between two of the area's most striking natural amenities: the wooded hillside to the west, and the Green River to the east. Each of these offers almost unlimited recreational opportunities, as well as views of the river valley and Mt, Rainier. The appropriate mix of goods and services on the site will be viewed as an amenity to housing and office users that will allow Tukwila South to be highly competitive in the Puget Sound marketplace, and the pedestrian quality of the project's secondary road system will foster an activated streetscape that will make Tukwila South highly desirable. Finally, the Master Plan will ensure the site's access to nearby amenities such as SeaTac Airport and Tukwila Urban Center's retail hub will be easy and convenient. PRINCIPLE #9: IMPLEMENTATION STRATEGY Development must be strategically phased to successfully transition Tukwila South from an agricultural and industrial property to an urban destination. While many of the site's infrastructure and planning features will be designed and built in the initial phase, flexibility must be maintained throughout the vertical development of the districts and the secondary roadway and amenity systems. This flexibility is required to meet changing market conditions. The Infrastructure Development Phase is expected to take three years and is scheduled for the years 2006-2008. At the end of this phase, all of the site's spine infrastructure will be in place. Discussions with potential tenants and development partners have been ongoing concurrent with the planning and infrastructure development efforts. Completing the site's infrastructure all at once will create a sense of certainty about the development's future. The site's first new tenants will take occupancy soon after the completion of infrastructure development. PRINCIPLE � 10: ENVIRONMENTAL STEWARDSHIP The Tukwila South project has a huge stake in protecting and enhancing the site's natural environment. The Segale family takes its role as stewards ofTukwila South's environment seriously not only because it is the right thing to do, but because sustainable projects have greater market acceptance. Environmental enhancements include: Protection and enhancement of pasture wetland and improvement of ditches conveying natural drainage into streams capable of supporting fish rearing and creating nearby "flood -flow refuge"fish habitat within the Green River channel. — Tributary stream fish habitat with associated restored wetlands and flood flow refuge on the Green River mainstem were historically present throughout the lower Green River basin, but are now missing and therefore habitat -limiting for fish and a variety of wildlife. Provisions for the re-creation of valuable habitats out of degraded agricultural ditches. In the process, the aquatic habitat enhancement plan will mitigate for filling peripheral and isolated wetlands and ditches now located in active croplands. Enhancement of Johnson Creek into a fish -friendly tributary connected to the Green River. — Creation of back -water fish habitat in the Green River. Restoration of a wetland complex of approximately 32 acres associated with the tributary drainage of the Green River that was historically present, but now absent in the basin. Sustainable planning concepts will include: Integrated transit environments "Park -once" site organization and pedestrian environments Shared parking concepts Redevelopment of surface parking lots Creating internal natural environments with visual connections to natural amenities COLLMSVJ, COLLNISWOERMAKI COLLNISWOERMAKI NA! iA NV= H 0 ' INTRODUCTION The Tukwila South property Is defined by a steep hillside to the west and the Green River to the east. Concentrated wetland areas and agricultural ditches are found throughout the property's valley floor. Due to the space constraints set by the hillside and the Green River, some of the wetlands and ditches will be impacted in order to achieve project objectives. Due to these impacts, this section summarizes the proposed enhancements and open space network for the property. OPEN SPACE NETWORK concentrated area of pasture wetland will be protected and enhanced, in combination with improving the associated ditches conveying natural drainage into streams capable of supporting fish rearing and creating nearby "flood -flow refuge"fish habitat within the Green River channel. — Tributary stream fish habitat with associated restored wetlands and flood flow refuge on the Green River mainstem were historically present throughout the lower Green River basin, but are now missing and therefore habitat -limiting for fish and a variety of wildlife. The Master Plan will provide for the re-creation of these valuable habitats out of degraded agricultural ditches. In the process, the aquatic habitat enhancement plan will mitigate for filling peripheral and isolated wetlands and ditches now located in active croplands. If residential uses occur on the site, neighborhood parks or access to existing parks in the area will be provided. Existing Johnson Ditch, looking west COLUNSWDERMAN Existing agricultural uses along 5 204th Street, looking northeast Existing agricultural uses along the Green River, looking south Overall Natura Cnvironment Lnhancemwtts fopen spce Network', Work with the City of Tukwila to build / create a pedestrian bridge from the property to Briscoe Park and the Green River Trail network. Enhancement of Johnson Creek into a fish -friendly tributary connected to the Green River — Creation of back -water fish habitat in the Green River Restoration of a wetland complex of approximately 32 acres associated with the tributary drainage of the Green River that was historically present, but now absent in the basin — Preservation of approximately 50-60 acres of hillside along the western valley wall HILLSIDE Portions of the hillside on the north end of the property will be graded and re - landscaped to accommodate the relocation of 5 178th Street and to provide fill material for the project. On the south end of the site, north of S 200th Street, it is expected that portions of the hillside will be graded to accommodate development. Special design consideration will be covered within the design guidelines for this area. The Tukwila South Project Sensitive Area Master Plan Overlay (SAMP) will result in greater environmental benefits than could be achieved under standard TMC Sensitive Areas Ordinance (SAO) provisions. The Tukwila South project site is uniquely suited to provide substantial local and regional habitat benefits. The site contains Johnson Ditch, a degraded tributary to the Green River, that could be restored to functioning fish habitat. Johnson Ditch is adjacent to over 30 acres of poor -quality wetlands now in cropland production that could be rehabilitated as habitat. The project is adjacent to the Green River where it is confined within levees that have eliminated most off -channel habitat necessary for anadromous salmon, affording an opportunity to create this type of habitat, which regional Green River studies have identified as a high priority for salmon population restoration. The purpose of the Tukwila SAO under TMC 18.45.010 is to protect the environment, human life, and property; to designate and classify ecologically sensitive and hazardous areas and protect these areas and their functions and values; and to allow for reasonable use of public and private property. By using the Master Plan provisions of the SAO, the Tukwila South project developed a proposal consistent with project function and needs, substantially enhancing regional fisheries and wetland functions, and preserving water quality. The net gain in environmental benefits using the SAMP is far greater from both within -site and regional habitat benefits than could be achieved using standard TMC SAO provisions. By focusing on creating a net environmental benefit as promoted by the SAMP Overlay Provisions, rather than on mitigation using like -kind and avoidance measures emphasized by standard TMC SAO requirements, the Tukwila South project will convert poor quality agricultural ditches and poor quality agricultural cropland wetlands into higher quality fish habitat and associated wetlands. Rather than avoiding or retaining ditches providing little or no fish access and impairing the quality of water delivered to the Green River, the project will create a out - migration holding, summer rearing, winter refuge, and upstream migration holding fish habitat in the Green River. The need for this type of off -channel habitat at this location is recognized by the Green River Habitat Limiting Factors Analysis for Washington Resource Inventory Area (WRIA) 9. Rather than avoiding Johnson Ditch and leaving it and poor - quality buffers in place as required under standard TMC SAO provisions, the project will relocate and restore Johnson Creek in a larger channel with greatly enhanced fish passage to the Green River through a fish passable floodgate, further opening up off -channel habitat now regionally limiting to anadrornous and resident fish in the Green River. The SAMP calls for the project to rehabilitate more than 32 acres of degraded cropland wetlands and connect them in a habitat corridor through the Johnson Creek channel to the Green River. Existing conditions COL UNs0OrR0L§N Relocation of the flood protection barrier dike from 5 196`h Street to the southern boundary of the site (approximately 120 to 140 feet north of 5 204:h Street) will create contiguous buildable area and allow development of a large-scale campus environment. At its existing location, the flood protection barrier dike precludes development south of the dike due to the infeasibility of obtaining flood insurance. The flood protection barrier dike will be relocated in the initial phase of the project and will provide emergency flood protection to the entire site. It will extend from the Green River levee, across the valley at a corresponding elevation (35 feet). As indicated, the relocated flood protection dike will separate the proposed realigned Johnson Creek and wetland rehabilitation area (described below) from the developed portions of the site, and will provide for continuation of the existing hydrologic support to these areas. EX1x TOM EDrsa s tifaO t-- ExlxTpss wsourw ' tTYejeeLi RELOCATED FL461 PROTECTION BARRIER n:xr Cross sectiun of relocated fluud protectiun barrier dike and relucated Juhnsun Creek .. c'_ c. n: sac - z m r,. u Plan view of relucated fluud prutectlon barrier dike and relocated Johnson Creek HABITAT PROTECTION The Tukwila South Master Plan includes a number of activities that have the potential to directly or indirectly affect fish. These include: Extension and expansion of Southcenter Parkway Realignment of 5 178' Street Relocation of the existing flood protection barrier dike Cconstruction of one new stormwater outfall into the Green River Relocation of a portion of the Green River levee and construction of a new off -channel rearing area for salmonids Relocation and enhancement ofJohnson Ditch including a new stream outfall location — Filling or culverting of five fish -bearing agricultural ditches Mass grading to increase site elevations Section 18.45.160 of the Tukwila Municipal Code (TMC) provides an alternative method for preservation of existing individual wetlands, watercourses, and their buffers in situations where a master plan for alteration and mitigation would result in improvements to water quality, fish and wildlife habitat, and hydrology beyond those that would occur through strict application of the provisions of the TMC. The proponent for the Tukwila South project will develop the site and mitigate environmental impacts under a Sensitive Areas Master Plan (SAMP) as allowed by the TMC. WATER QUALITY The construction and developed conditions water quality evaluation concluded there is a reasonable expectation of preserving or slightly enhancing most aspects of water quality important to fish habitat. The quality improvements are expected from enhanced riparian functions and reduced agricultural chemical use. While fecal coliform and zinc concentrations may increase slightly, coliforms do not affect fish habitat quality, and the level of zinc would be well below the level regarded as safe for freshwater aquatic life by the State of Washington. FISHERIES Under the SAMP, the loss of agricultural ditches would be mitigated by rehabilitation of wetlands and creation and enhancement of stream channels.The natural landscape would have approximately 3.8 acres of additional open -water habitat compared to existing conditions. About4.5 acres of new open -water habitat would be created at the Green River Off -channel Habitat Restoration Area and 0.34 acres at Johnson Creek to mitigate fill of 1.07 acres of agricultural ditch. In addition, approximately 32.4 acres of wetlands associated with Johnson Creek would be planted and graded to enhance functional benefits, and new riparian buffers would be created adjacent to each open water area where none exists near watercourses under existing conditions. SECT ION a - R Green River Habitat Creation Area (Cross Section) mu!NSWOERS..N COLLNIS,V0En1i. INTRODUCTION The Infrastructure Development Phase is expected to take three years (currently projected for the year 2006-2008 time period), and will include the following elements: Implementation of a mass grading program to establish site grades and construct the major infrastructure elements The extension and expansion of Southcenter Parkway in a new alignment along the base of the western hillside through the Tukwila South planning area Realignment of 5 178" Street to intersect with Southcenter Parkway at Segale Park Drive C Installation of sanitary sewer, water, and other utilities within Southcenter Parkway Relocation of the existing flood protection barrier dike from S 196' Street to the southern boundary of the site (north of 5 204" Street) Installation of a temporary construction stormwater management system, including a polymer treatment system for stormwater runoff Installation of a comprehensive permanent stormwater control and water quality system for the entire site, including two new stormwater outfalls into the Green River Implementation of a natural resource mitigation plan, of which the primary features include: creation of an off -channel habitat restoration area adjacent to the Green River; rehabilitation of a wetland complex associated with tributary drainage to the Green River; and restoration ofJohnson Ditch into a fish -friendly tributary connected with the Green River It may be necessary in the future to relocate an existing fire station closer to the project, or within the property. SOOT -CENTER PARKWAY 8 S 178TH STREET REALIGNMENT NT The location of the expanded Southcenter Parkway is a critical elernentofthe Master Plan. The goal is to move the new alignment toward the toe of the eastern hillside. This creates the largest contiguous parcels for development, and allows travellers on Southcenter Parkway to not only experience the development, but the hillside as an amenity and open space. This location for the high -capacity boulevard also allows space for a secondary road system that will create additional transportation capacity as the project develops. S 178th Street will be realigned for better east- west circulation and enhanced safety. COLLINSWOERIv.AN GRADING PLAN TheTukwila South Master Plan proposes to establish site grades as part of an overall mass earthwork program at the outset of Year 1. On -site movement of approximately 1.5 million cubic yards of earthwork would be necessary to establish site grades and for construction of major infrastructure components. A temporary access road under 5 200" Street would be constructed to facilitate transport of material between the north and south portions of the site. The major areas proposed for excavation include the northwest portion of the site and the proposed Green River Off -Channel Habitat Restoration Area. Major fill areas for the excavated material include the new site for the flood protection barrier dike and the other areas across the site to establish the sub -grade for future development. It is anticipated that approximately 400,000 cubic yards of imported fill would be required. Beginning in the second year of construction, an additional approximately 500,000 cubic yards of clean fill dirt would be imported for preloading and to establish finished grades, as needed for specific development projects on the site. The mass earthwork program would accomplish the following goals: Balance the movement of earthwork on -site as much as practical, and limit the degree of import and export of material from the site. Establish cohesive sub -grades for the planned extension of Southcenter Parkway and 5 178th Street realignment. Provide a feasible subgrade for future site development under the Master Plan. Ensure a cohesive elevation for the planned utility connections (e.g., wastewater) to allow drainage to stormwater control and conveyance facilities. Allow installation of the comprehensive stormwater control system that is intended to serve the site at full buildout. Allow relocation of the flood protection barrier dike. Allow implementation of key features of the proposed natural resource mitigation plan in the initial phase. By the year 2008, construction of the first phase of development will have begun. The extension and realignment of Southcenter Parkway will be finished, mitigation for environmental impacts will have been constructed, and all of the stormwater detention and water quality infrastructure will be in place. This page intentionally left blank. COLLNIS,V0En1i. THE STARTING POINT The Tukwila South project has the opportunity to transition the property from an agricultural and industrial property to an urban destination that will attract users and visitors beyond those who live and/or work there. The synergistic mix of uses and the full range of planned activities will allow the Segale family to build a community over time. While we believe this property will develop in phases, the market may require that development occur in multiple locations at the same time. This is why the commitment was made to develop the infrastructure first. This will allow the property to address the total market from Day One. N aoncdatiwoillnbeodf utseersmhinoed nboy nmtahriks Pt aorcaeres.cncpt"' THE STARTING POINT- PHASE Due to the proximity of the Tukwila Urban Center, current market demands indicate a need for neighborhood -oriented retail. It is likely the first phase of development would occur on the north and central portions of the property. COLLINSWOEWAN THE NET STEP = PHASE '_ Expansion and market demands will allow the campus environment to expand to the south toward S 200th Street. Conceptual Phase Development Program 200,000 sr Retail - Grocery Store -Drug Store -Restaurants - Dry Cleaners - Deli -Neighborhood Services 200 Residential Units Up to 250,000 sf Office and Research & Development THE FINAL STEP _ PHASE ? Due to the existing uses within the Segale Business Park, it is likely this area would be the last to redevelop. This page intentionally left blank. COLLiNISWDERM. COLLNISWOERMAKI 1 APPENDIX BACKGROUND GROUND The Segale family has been systematically assembling this parcel for more than 50 years. While there have been discussions about development and markets that could have filled the property with many of the retail and industrial uses common to this part of the valley, the land has yet to see its first significant development. Due to the fact the Segale family has entered into the entitlement process and is prepared to build this unique regional asset, the City of Tukwila and the Segale family share in the opportunity to shepherd its development. Both parties also share in the responsibility to meet the site's full potential as an exciting and robust new regional employment center. Outlined below are the site's context elements that, taken together, create a glimpse of that potential: Heritage of the Segale family: The family has lived on the property for three generations and has assembled the property over the last 50 years. Heritage of the Green RiverValley: The Kent Valley has long drawn institutional real estate investors in industrial and large retail developments. The new kinds of development Tukwila South introduces to the valley will benefit from the same advantages (outlined below) that have contributed to the success of the area's traditional uses. Natural beauty: With commanding views of Mt. Rainier from the property's mile -long hillside as well as views of the Green River and sweeping vistas of greenery, Tukwila South offers wonderful opportunities for amenities and recreation, Puget Sound and Northwest traditions: The region's pioneering culture is nationally recognized for its ability to create new industries from scratch as well as reinvent established industries. Tukwila South has the opportunity to furtherthis tradition by establishing a major new employment center based on jobs that create intellectual property. Authenticity: Tukwila South must be authentic to its physical and historical context, and to the opportunities that will drive its success. It must reflect the values of the Northwest culture: community, sustainability, diversity, and healthy life-style. Tukwila Urban Center: The regional mall and the surrounding retail uses represent one of four major retail environments in the greater Puget Sound area. Home to in excess of 3 million square feet of goods and services, our neighbor to the north is already considered a regional destination. SeaTac: Within a 5-minute drive, SeaTac International Airport is the largest investment of public transportation infrastructure in five Western states. More than 25 million travellers use SeaTac every year. Adjacency to transportation infrastructure: Located at the crossroads of the state's two busiest interstate highways, Tukwila South offers potential businesses and residents several convenient access points to both 1-5 and I-405. Agricultural and wetlands to the near south: Because of the site's size, large undeveloped tracts of land wit be set aside for wetlands protection and enhancement, and stormwater management. Diversity: South King County currently supports one of the region's most economically and socially diverse populations. New jobs, goods and services, housing, and public services will need to address this diverse citizenship and create a welcoming place for all. With this background as our starting point, we have created guiding principles for the Tukwila South Master Plan. It is from these that our development plan has been conceived. This page intentionally left blank. COLLINSWOERMA N Calculation of Existing Development Trips co co S ZIaIHXi Exhibit 5: Calculation of Existing Development Trips Effective Date: April 10, 2025 Existing Uses 2009 EIS _ _� - Summary of Trips by Land Use from Exhibit 11 in 2009 DA Inbound Former Segale Business Park (Clarion) warehouse 910,140 98 office 124,704 61 manufacturing 149,034 37 Gaco Mitchell (warehouse) Gaco Mitchell Outbound Total 298 397 298 359 RESIDENTIAL 66 103 OFFICE WAREHOUSING DRIVING RANGE 42,746 5 14 19 MANUFACTURING 42,430 5 14 18 LIGHT INDUSTRIAL In Out Total 5 2 7 79 384 463 138 420 558 36 45 81 37 66 103 3 26 29 298 943 1,241 Prato District (Segale and MAS) seattle tractor (light industrial) 29,086 3 26 29 old construction office 8,595 4 21 25 OFFICE 160,898 driving range 13,195 36 45 81 WAREHOUSING 1,279,922 981 warehouse 284,606 30 93 124 981 office 27,599 14 66 79 residental (7) 22,681 5 2 7 total sq. ft. 1,654,816 298 943 1,241 (1) The purpose of this spreadsheet is to show the calculation of Existing Development Trips for the 2025 Development Agreement between the City, Segale Properties, and MAS. The Existing Development Trips were based on land use at the time of the 2009 Development Agreement and EIS. (2) Although the former Segale Business Park is now owned by others (Clarion, Continental Mills, etc.) and not subject to the 2025 Development Agreement, those Existing Development Trips are shown here for historical context. (3) Trips are all PM Peak Hour trips. Prato District Credit Trips Ceiling Tracker 9 1fflIHX1 Exhibit 6, Page 1: Prato District Credit Trips Tracker Effective Date April 10, 2025 Existing Uses Existing Development Trips Credit Trips from Demolished Uses Sq. Ft. Inbound Outbound Total Clarion (Former Segale Business Park) warehouse 910,140 98 298 397 office 124,704 61 298 359 manufacturing 149,034 37 66 103 Subtotal 1,183,878 196 662 859 Gaco 42,746 5 14 19 Mitchell 42,430 5 14 18 Prato (SegaLe and MAS) Sq. Ft. Inbound Outbound Total seattle tractor (light industrial) 29,086 3 26 29 old construction office 8,595 4 21 25 Construction office 8,595 4 21 25 driving range 13,195 36 45 81 Driving range 13,195 36 45 81 981 warehouse 284,606 30 93 124 Warehouse 0 0 0 0 981 office 27,599 14 66 79 Office 0 0 0 0 residentaL (7) 22,681 5 2 7 ResidentiaL (7 homes) 22,681 5 2 7 Subtotal 385,762 92 253 345 Subtotal 44,471 45 68 113 Total 1,654,816 298 943 1,241 Total Credit Trips 44,471 45 68 113 (1) The purpose of this spreadsheet is to track the number of available Credit Trips aLLowed under the 2025 DeveLopment Agreement between the City, SegaLe Properties, and MAS. Under the DA, Segale Properties may use the available trips as credits instead of paying traffic impact fees on that number of trips for new deveLopment in the Prato District. (2) SegaLe Properties may assign Existing Development Trips as a credit against trip generation from new development to the extent existing uses are permanently discontinued and/or existing structures are removed. SegaLe and City wiLL update this information when structures are demoLished and when new development uses Credit Trips to reduce traffic impact fees. (3) The Existing Development Trips were based on the 2009 EIS. After the expiration of the 2009 Development Agreement, Credit Trips onLy apply for the Prato District. The Existing DeveLopment Trips for non -Prato District properties are shown above for historicaL context. Credit Trips Tracking Sq. Ft. Inbound Outbound Total Total Credit Trips 44,471 45 68 113 Used for Construction Office (PL10-005) - - - - Subtotal Available Credit Trips 44,471 45 68 113 Notes: Office (PL10-005) did not receive trip credits. Exhibit 6, Page 2: Prato District Trip Ceiling Tracker Effective Date : April 10, 2025 Sq. Ft. Inbound Outbound Total Trip Ceiling (Net New Trips) per DA 10,300,000 2,646 7,520 10,166 Total Trip Credits (from demolished uses) 44,471 45 68 113 Trip Ceiling with Trip Credits 2,691 7,588 10,279 Segale New Construction Since 2009 Office (PL10-005) Subtotal New Construction Trips Remaining Under Ceiling and Credits 55,462 18 111 129 55,462 18 111 129 2,673 7,477 10,150 (1) The purpose of this spreadsheet is to track the number of net remaining PM peak hour trips allowed under the Trip Ceiling plus Credit Trips according to the 2025 Development Agreement. Per the 2025 DA, the Trip Ceiling and Credit Trips only apply to property in the Prato District. (2) The trip ceiling is from the 2009 EIS and 2025 development agreements. (3) New construction will be added to this list when it a building permit is issued and may be deleted from this list if never completed. 103 EXHIBIT 7A Expansion Areas Legal Description 104 EXHIBIT 7A EXPANSION AREAS LEGAL DESCRIPTION EXPANSION PARCEL #1: 352304-9014 THAT PORTION OF GOVERNMENT LOT 6 IN SECTION 35, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., LYING EASTERLY OF ANNA MESS COUNTY ROAD (SOUTHCENTER PARKWAY, FORMERLY 57TH AVENUE SOUTH) AND SOUTHWESTERLY OF A LINE, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE SOUTHEASTERLY MARGIN OF SAID ANNA MESS COUNTY ROAD (SOUTHCENTER PARKWAY, FORMERLY 57TH AVENUE SOUTH), WHICH POINT IS MARKED BY AN IRON PIPE AND FROM WHICH POINT THE SOUTHWEST CORNER OF SAID GOVERNMENT LOT 6 BEARS SOUTH 00° 58' 10" WEST 313.17 FEET SOUTH AND NORTH 89° 01' 50" WEST 505.54 FEET, SAID DISTANCES BEING MEASURED RESPECTIVELY AT RIGHT ANGLES TO AND ALONG THE SOUTH BOUNDARY LINE OF SAID GOVERNMENT LOT, THENCE SOUTH 67° 36' 00" EAST 380.45 FEET TO AN IRON PIPE; THENCE CONTINUING SOUTH 67° 36' 00" EAST 50 FEET, MORE OR LESS, TO THE BANK OF GREEN RIVER; SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING STATE OF WASHINGTON. EXPANSION PARCEL #2: 352304-9081 THAT PORTION OF GOVERNMENT LOT 7 IN SECTION 35, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., DESCRIBED AS FOLLOWS: BEGINNING AT A POINT FROM WHICH THE NORTHWEST CORNER OF SAID GOVERNMENT LOT 7 BEARS SOUTH 00° 58' 10" WEST 313.17 FEET AND NORTH 89° 01' 50" WEST, 505.54 FEET, SAID DISTANCES BEING MEASURED RESPECTIVELY AT RIGHT ANGLES TO AND ALONG THE NORTH BOUNDARY LINE OF SAID GOVERNMENT LOT, SAID POINT BEING MARKED BYA CONCRETE MONUMENT SET BY R. W. JONES AND ASSOC. ENGINEERS AND SURVEYORS ON OCTOBER 4, 1996; THENCE SOUTH 67° 36' 00" EAST 248.63 FEET; THENCE SOUTH 23° 57' 22" WEST 352.69 FEET TO THE TRUE POINT OF BEGINNING; THE NORTH 66° 02' 38" WEST 250 FEET, MORE OR LESS TO THE EAST LINE OF ANNA MESS COUNTY ROAD (SOUTHCENTER PARKWAY, FORMERLY 57TH AVENUE SOUTH); THENCE NORTH 23° 27' 22" EAST 5.14 FEET TO THE NORTH GOVERNMENT LOT 7; THENCE SOUTH 89° 01' 50" EAST TO BANK OF GREEN RIVER; THENCE SOUTHWESTERLY ALONG SAID RIVER BANK, TO A POINT THAT BEARS SOUTH 66° 02' 38" EAST FROM THE TRUE POINT OF BEGINNING; THENCE NORTH 66° 02' 38" WEST TO THE TRUE POINT OF BEGINNING; SITUATE IN THE CITY OF TUKWILA, COUNT OF KING, STATE OF WASHINGTON. 105 EXPANSION PARCEL #3: 352304-9082 THAT PORTION OF GOVERNMENT LOT 7, SECTION 35, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., DESCRIBED AS FOLLOWS: BEGINNING ON THE EASTERLY MARGIN OF ANNA MESS COUNTY ROAD (SOUTHCENTER PARKWAY, FORMERLY 57TH AVENUE SOUTH) IN GOVERNMENT LOT 7, IN SAID SECTION AT A POINT SOUTH 89°03'20" EAST 1,656.75 FEET AND NORTH 00°56'40" EAST 1,048.79 FEET NORTH OF THE SOUTHWEST CORNER OF THE SOUTHWEST 1/4 OF SAID SECTION 35; THENCE SOUTH 08°13'05" EAST 36.70 FEET; THENCE SOUTH 19°59'25" WEST 520.10 FEET; THENCE SOUTH 73°05'40" EAST 233.32 FEET; THENCE NORTH 16°29'55" EAST 474.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 16°29'55" EAST 100 FEET; THENCE SOUTH 64° 17'20" EAST 232.26 FEET TO THE BANK OF GREEN RIVER, THENCE NORTHERLY ALONG SAID BANK OF GREEN RIVER TO A LINE ESTABLISHED BY DEED RECORDED UNDER KING COUNTY RECORDING NO. 7308030425; THENCE ALONG SAID LINE NORTH 66°02'38" WEST 250 FEET TO A POINT OF THE EASTERLY MARGIN OF COUNTY ROAD WHICH BEARS SOUTH 25°01'18" WEST 5.14 FEET FROM THE NORTH LINE OF SAID GOVERNMENT LOT 7; THENCE SOUTH 25°01'18" WEST ALONG SAID ROAD MARGIN TO A POINT SOUTH 89°03'20" EAST 1,656.75 FEET AND NORTH 00°56'40" EAST 1,048.79 FEET NORTH OF THE SOUTHWEST CORNER OF THE SOUTHWEST 1/4 OF SAID SECTION 35; THENCE SOUTH 08°13'05" EAST 36.70 FEET; THENCE SOUTH 19°59'25" WEST TO A POINT WHICH BEARS NORTH 66°02'38" EAST FROM THE TRUE POINT OF BEGINNING; THENCE SOUTH 66°02'38" EAST 211.14 FEET TO THE TRUE POINT OF BEGINNING; SITUATE IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON. 106 EXHIBIT 7B Frager Road/Southcenter Parkway R.O.W. 107 EXHIBIT 7B FRAGER ROAD / SOUTHCENTER PARKWAY R.O.W. ,0001111111Nolloohl SCALE 1" = 100' SAT-2 LOT 2 FDT- 7 8700400100 FDT-3 8700400060 3523049014 3523049081 3523049082 LEGEND DENOTES FRAGMENTED PART TO TO SEGALE PROPERTIES LLC AT TIME OF FUTURE VACATION DENOTES AREA GRANTED BACK TO SEGALE PROPERTIES LLC AS TAKEN FROM ORIGINAL PARCEL NO. 3523049017 (NOW PARCEL NO. 8700400100) H:\PARKWAY 2013\PARKWAY 2011\dwg\FRAGER RD FUTURE VACATION SKETCH 2025.dwg 108 EXHIBIT 8 Vested Development Regulations ON FILE WITH CITY accessible on this site: https://records.tukwilawa.gov/WebLink/1 /edoc/432185/page 1.aspx 109 EXHIBIT 9 Proposed Orillia Road Connector 110 L 1 EXHIBIT 9 ORILLIA ROAD CONNECTOR TUKWILA SOUTH DEVELOPMENT AGREEMENT SEGALE I' ER Nl ES 111 EXHIBIT 10 Impervious Area Tracking Map and Tukwila South -Prato District Impervious Surfaces Tracking Spreadsheet COLOR COPY OF EXHIBIT 10 IS ON FILE WITH THE CITY 112 V,V,V,V,V,G 016llllil Illm m I dill °II S 204TH ST A I�� V�'�M VwA' „0, VIA KORTrH �'ETRIiNT1O'N ill PONO EXHIBIT 10 IMPERVIOUS AREA TRACKING MAP 5Il9�m'n"'Y� 113 EXHIBIT 10 Tukwila South -Prato District Impervious Surfaces Tracking Spreadsheet Notes: * The `Allowed Impervious Total Area" for each basin was determined by the Technical Information Report (TIR, dated May 2010, revised March 4, 2011), approved as part of the PW10-064 Grading Permit, which approved 85% coverage in each individual basin. ** Basin areas are calculated only within the project boundary and exclude any off -site impervious assumptions. North Basin Allowed Impervious Total Area (acres): 95.21 South Basin Allowed Impervious Total Area (acres): 141.48 Total Allowed Impervious Area (acres) 236.69 North Basin Development (Maximum allowed impervious area: 95.21 acres) Project Name Permit Approval # Date Impervious Area Total Developed Basin Impervious Area (in acres) Total Remaining Impervious Area Allowed (in acres)° 95.21° South Basin Development (Maximum allowed impervious area: 141.48 acres) Project Name Permit Approval # Date Impervious Area Total Developed Basin Impervious Area (in acres) Total Remaining Impervious Area Allowed (in acres) 141.48j 114 EXHIBIT 11 Stormwater Monitoring 115 EXHIBIT 11 Stormwater Monitoring To ensure that future development supports the current water quality goals of the State of Washington and preserve the City's ability to manage its municipal separate stormwater system ("MS4"), key water quality and quantity metrics will be monitored and reported as part of the Periodic Review. Background Information The below stormwater monitoring framework is intended to provide the City with data to assist in its evaluation of ultimate City discharges to the Green River and to separate North Pond discharge constituents from State discharges from Interstate-5 or other runoff to the S. 180th St pump station. The level of development of Tukwila South to date has consisted of grading and construction of Utilities and Stormwater Infrastructure. Throughout and following this grading and infrastructure development, the site remains in a temporary erosion sediment control condition ("TESC Condition') prior to land use development. While the site remains in TESC Condition there is no stormwater discharge to surface waters (i. e. the Green River) other than periodic pumping from the South Stormwater Facility to the river. All designed outlets from the North and South facilities remain inactive and site runoff is drained or pumped to the South Stormwater Facility for storage and treatment prior to this periodic pumping to the river. Until Tukwila South activates the permanent designed outfalls from the facilities, the site remains in TESC Condition. Testing of the five metrics listed above will be tested in addition to turbidity and pH consistent with the requirements of the Dept. of Ecology's Construction Stormwater General Permit ("CSWGP') at least once annually during any of these periodic pumped discharges. The site will remain in TESC Condition until a level of land use development necessitates the activation of the permanent design outfall systems from the facilities and there are no longer pollution generating activities causing high turbidity and pH concerns from sitework construction. Following the activation of the permanent design outfall systems from the facilities and approval from Ecology for the Notice of Termination form under the CSWGP, procedures for sampling and testing the five metrics listed below shall commence at both facilities. Until that time, testing will only occur at the South Stormwater Facility. Exhibit 11 - Page 1 116 Testing Requirements The following list of water quality metrics shall be tested for, measured, and reported on: Metric Unit of Measure Current Standard References Total Suspended Solids mg/L (ppm) 25 mg/L (during construction phase) Within the Mean range from 1.0 to 202.0 mg/L King County Streams Monitoring, Green 0311, Construction Stormwater General Permit SOP Temperature Degrees Celsius 17.5 degrees Celsius (highest 7-DAD max) WAC 173-201A-200, EAP011 Version 2.1 Dissolved Oxygen mg/L (ppm) 10 mg/L or 90% saturation WAC 173-201A-200, EAP023, Version 2.5 Alkalinity / Acidity pH 6.5-8.5; human -caused variation of <0.5 WAC 173-201A-200, EAP031 Version 1.5 Conductivity mSTEMS/cm Within the Mean range from 44.4 to 225.0 mSIEMS/cm King County Streams Monitoring, Green 0311, EAP032 Version 2.2 This testing shall be performed annually, at a minimum, during the first fall storm event of each year ("first flush"). The first fall storm event is defined as the first occurrence of precipitation after October 1st that results in a discharge. First flush samples shall be collected within 24 hours of start of discharge and follow the Department of Ecology's stormwater monitoring guidance for each parameter contained in Ecology's Environmental Assessment Program (EAP). Standard Operating Procedures (SOP) can be found in the Statewide River and Stream Ambient Water Quality Monitoring publication. • Monitoring the South Stormwater Facility discharges to the Green River shall demonstrate consistency with the above standards. • Monitoring of the North Stormwater Facility will commence upon activation of the permanent design outfall systems from the facilities and approval from Ecology for the Notice of Termination (NOT) form under the CSWGP. Flow Monitoring Requirements Following the activation of the permanent design outfall system for the North Storm Water Facility (North Pond), Segale agrees to collect and provide flow data from North Pond discharges to the City's MS4 system. • Data reporting will be annual and will include total annual and maximum daily discharge from the North Pond. 4919-0557-8096, v. 1 Exhibit 11 - Page 2 117 118 Thomas McLeod, Mayor TO: Mayor's Office - Marty Wine, City Administrator The city of opportunity, the community of choice Mayor McLeod Councilmembers FROM: Marty Wine, City Administrator DATE: November 10, 2025 SUBJECT: City Administrator's Report The City Administrator Report is meant to provide the Council, staff, and the community with an update on the activities of the City and on issues that concern Tukwila. Please let me know if you have any questions or need additional information about any of the following items. �. Intergovernmental Update • ICMA Annual Conference: City Administrator Marty Wine attended the International City/County Management Association (ICMA) Annual conference October 25 - 28 where she attended sessions about focused on equity in community outreach, civility, and was recognized for 30 years of local government public service. • Cascadia Innovation Corridor Conference: Mayor McLeod and Director Miles participated in the Cascadia Innovation Corridor Conference October 28 - 29. • Meeting with Tukwila School District: Mayor McLeod met with Tukwila School District Superintendent Dr. Conzie Pedroza on October 30. • Aerospace & Advanced Manufacturing Expo: On October 30, the Cities of Auburn, Kent, Renton, and Tukwila hosted the Future in Flight Aerospace &Advanced Manufacturing Expo at Showare Center. The Expo was a field trip for high school students to learn about careers in aerospace and was initiated and sponsored by our aerospace employers in Kent Valley. The expo was a crazy whirlwind - nearly 800 students, 40 exhibitors (30 were air and space companies), and a steady hum of activity from start to finish. Some students from Foster High School attended. • Human Services Planners Regional Strategy Meeting: On October 30 Human Services staff participated in North, East, and South King County Human Services Planners regional strategy meeting regarding SNAP freeze and city responses • Meeting with Sound Transit: Mayor McLeod and Director Miles met with Dow Constantine, Executive Director of Sound Transit on October 31. • Puget Sound Fire Badge Pinning Ceremony: Councilmembers Martinez and Seal and City Administrator Wine attended the Puget Sound Fire Badge Pinning Ceremony on November 4. Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 119 City Administrator's Report November 10, 2025 Page 2 • Tukwila School District Planners Meeting: On November4 Human Services staff participated in Tukwila School District monthly planners meeting. • King County City Managers/City Administrators Meeting: City Administrator Wine and Deputy City Administrator/Parks & Rec Director Pete Mayer participated in the monthly King County City Managers/City Administrators meeting on November 5. Topics included city budget challenges and state legislative agendas. • Seattle Sports Commission Study Mission: On November 5-6 Mayor McLeod and Director Miles participated in a Seattle Sports Commission Study Mission in preparation for the FIFA 2026 World Cup. • Indigent Defense Caseload Standards: On behalf of member cities, Sound Cities Association sent a letter to the Washington State Legislature requesting the Legislature explore funding options, workforce development pathways, and other resources for cities to assist in adhering to the new indigent defense caseload standards. • Shoreline Master Program: Community Development staff attended Ecology's webinar on new requirements for the upcoming Shoreline Master Program update to address the impact of sea level rise and increased storm severity. II. Community Events • Protecting Immigrant Rights Seminar: Human Services staff participated in seminar on October 30 about State & Local Strategies for protecting Immigrant Rights. • Halloween Carnival: Parks & Recreation staff hosted the annual Halloween Carnival on October 30 where 2,000 people were in attendance. • Community Leaders Roundtable: The Inclusion & Engagement Manager, in partnership with the Tukwila Library, hosts a monthly roundtable of community leaders. On November 6 the group visited the Oceania NW Village Market - a food pantry and hot meal program. • Sustainable Transportation: Transportation Demand Management staff organized a Transportation Drop -in for Highline College students on November 6 where they provided sustainable transportation information, promoted the South King County Trips program, and distributed ORCAcards. • Shop with a Cop: The Police Department will pick up to 12 children to go shopping for their families for the holidays, the event will be held on December 13. III. Staff Updates Public Safety • The Police Department is planning the various retail emphasis in preparation for the upcoming holiday shopping season. Project Updates • The People's Project: The Inclusion & Engagement Manager visited five Foster High School Civics classes to involve students in The People's Project - a participatory design initiative. Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 120 City Administrator's Report November 10, 2025 Page 3 • 4Culture Building for Equity: The Parks and Recreation Department was recently awarded a Project Development Grant which will be utilized to perform a feasibility analysis of converting Old Fire Station #52 into usable recreation and/or cultural programming space. • Gilliam Creek Erosion Repair: The project which repaired a large scour hole at the upstream end of the 9' diameter culvert beneath South 66th Street was completed this week and will increase bank protection during future storm events. • 2025 Annual Small Drainage: Roadside drainage improvements were completed at locations on Macadam Road South and both sides of South 144th Street. • Utility Billing Vendor Selection Process: Utility Billing is nearing completion of its vendor selection process to replace Eden. The final vendor recommendation is expected after one remaining demonstration to the team. • 2025 Year -End Process: Finance has initiated the 2025 year-end process. Citywide communication will be issued outlining cutoff deadlines for key transactions. Boards, Commissions and Committees We welcome the City Council to encourage community members to apply for vacant Board & Commission positions. • Arts Commission: The next meeting is scheduled for November 19, 2025. 2 Resident position terms expire March 31, 2026. VACANT: 1 Resident Position. • Civil Service Commission: The next meeting is scheduled for November 20, 2025. 1 resident position term expires March 31, 2026. No vacancies. • COPCAB: The next meeting is scheduled for December 11, 2025. 3 resident position terms expire March 31, 2026. VACANT: 1 Business position and Student Representative. • Equity & Social Justice Commission: The next meeting is scheduled for December 4, 2025. 1 City Employee position term expires March 31, 2026. 2 Education position terms expire March 31, 2026. 1 Community position term expires March 31, 2026. No vacancies. • Human Services Advisory Board: The next meeting is scheduled for December 4, 2025. 1 Resident position term expires March 31, 2026. 1 School District position term expires March 31, 2026. 1 Medical/Health position term expires March 31, 2026. No vacancies. • Library Advisory Board: The next meeting is scheduled for December 2, 2025. 3 Resident position terms expire March 31, 2026. VACANT: 1 Resident position and Student Representative. • Lodging Tax Advisory Committee: The next meeting is scheduled for November 14, 2025. All positions are 1-year terms. Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 121 City Administrator's Report November 10, 2025 Page 4 VACANT: 1 Business Collecting Tax Representative & 1 Business Funded by Tax Representative. • Park Commission: The next meeting is scheduled for November 12, 2025. 2 Community position terms expire March 31, 2026. VACANT: 1 Community position and Student Representative. • Planning Commission: November 13, 2025 and December 11, 2025 meetings canceled. VACANT: 1 Business position. IV. Date of Inquiry Inquiry Response Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 122 Tentative Agenda Schedule MEETING 1— REGULAR MEETING 2— C.O.W. MEETING 3 — REGULAR MEETING 4 — C.O. W. NOVEMBER 3 Nov 3, 2t25 Work Session Nov 3, 2t25 IRegaullair Meeting NOVEMBER 10 Nov 1 , 2t25 Committee of the Wholle / SlpecGall Meeting NOVEMBER 17 Nov 17, 2 t25 Work Session Nov 17, 2t2!S IRegaullair Meeting NOVEMBER 24 SPECIAL ISSUES - House Bill 2015 Criminal Justice Sales Tax Ordinance. Special Meeting to follow Committee of the Whole Meeting. CONSENT AGENDA - House Bill 2015 Criminal Justice Sales Tax Ordinance. MEETING 1— REGULAR MEETING 2— C.O.W. MEETING 3 — REGULAR MEETING 4 — C.O. W. DECEMBER 1 WORK SESSION - Follow up on Flock Cameras. - Resolution establishing 2026 Washington State Legislative Agenda. REGULAR MEETING APPOINTMENT - Oath of Office — Jane Ho and Hannah Hedrick. CONSENT AGENDA - Authorize the Mayor to sign a grant agreement for the Transportation Demand Management Program for 2025-2027. - Authorize the Mayor to accept the Flood Control District Flood Reduction Grant for the Gilliam Creek Fish Barrier Removal design project, in the amount of $750,000.00. - Authorize the Mayor to accept the King County Open Space -River Corridors Grant for the Chinook Wind Extension design/construction in the amount of $1,000,000.00. - Resolution for 2025 Fleet Surplus. - Ordinance updating Equity and Social Justice Commission membership. - Resolution amending the Change & Petty Cash Funds. DECEMBER 8 SPECIAL ISSUES - Ordinance amending the Business & Occupational (B&O) Tax. - Resolution updating Compensation Policy. - Ordinance recodifying and enacting Tukwila Municipal Code. REPORTS - Quarterly Business & Occupational (B&O) Report. DECEMBER 15 WORK SESSION REGULAR MEETING PRESENTATION - Resolutions of Service Appreciation for outgoing Elected Officials. CONSENT AGENDA - 2025-2026 Office of Public Defense Grant Agreement. - Amendment to DSHS Olympic Heritage Agreement #25-046. PUBLIC HEARING - Ordinance recodifying and enacting new Tukwila Municipal Code. UNFINISHED BUSINESS - Ordinance recodifying and enacting new Tukwila Municipal Code. - Ordinance amending the Business & Occupation (B&O) Tax. - Resolution amending the Compensation Policy. NEW BUSINESS - A resolution establishing 2026 Washington State Legislative Agenda. DECEMBER 22 123