Loading...
HomeMy WebLinkAbout2012-09-10 Committe of the Whole MinutesTukwila City Council Committee of the Whole M City Hall Council Chambers September 10, 2012 7:00 P.M. MINUTES COMMITTEE OF THE WHOLE EXECUTIVE SESSION Start: 6:35 p.m. Council President Seal announced the purpose of the Executive Session is Potential Land Sale Pursuant to RCW 42.30.110(1)(c) and Potential Litigation Pursuant to RCW 42.30.110(1)(i). It will last no more than 30 minutes, and no decisions will be made during the Executive Session. Attendees: Jim Haggerton, Mayor; David Cline, City Administrator; Derek Speck, Economic Development Administrator; Chris Bacha, City Attorney; Tukwila City Councilmembers Joe Duffie, Dennis Robertson, Verna Seal, Kathy Hougardy, De'Sean Quinn, Kate Kruller. Councilmember Ekberg was not present. End: 6:53 p.m. CALL TO ORDER/PLEDGE OF ALLEGIANCE Council President Seal called the Tukwila City Council meeting to order at 7:05 p.m. and led the audience in the Pledge of Allegiance. OFFICIALS Present were Verna Seal, Council President, Councilmembers Joe Duffie, Dennis Robertson, Allan Ekberg, Kathy Hougardy, De'Sean Quinn, Kate Kruller. CITY OFFICIALS Jim Haggerton, Mayor; David Cline, City Administrator; Bruce Linton, Assistant Police Chief; Bob Giberson, Public Works Director; Jack Pace, Community Development Director; Mike Soss, Battalion Chief; Peggy McCarthy, Finance Director; Derek Speck, Economic Development Administrator; Mary Miotke, Information Technology Director; Kimberly Matej, Council Analyst; Melissa Hart, Deputy City Clerk. CITIZEN COMMENTS Jim Curfman, 13928 51 Avenue South, expressed concern about 3 different issues near his home. The first issue relates to a vacant structure at 13906 51 Avenue South. The second issue is regarding abandoned construction debris that was left by a contractor who completed a new house at 13936 51 Avenue South, which was the result of a property subdivision. The third concern is regarding the installation of fencing along a driveway easement. The new driveway is along the side of his residence, and the contractor did not install a boundary fence. He asked if such an installation is a requirement of the City code. Mr. Curfman distributed a copy of photographs depicting the issues and concerns to the Council for their review. He explained Code Enforcement has been contacted several times about these issues, and one property owner meets the bare minimum to satisfy Code Enforcement. Council President Seal thanked Mr. Curfman for bringing these issues to the attention of the City Council, and she stated City Administration would respond to his inquiry. Tukwila City Council Committee of the Whole Minutes September 10, 2012 Page 2 of 8 SPECIAL ISSUES a. Tukwila Village proposed Disposition and Development Agreement. Derek Speck, Economic Development Administrator, explained the City Council selected Tukwila Village Development Associates, LLC (TVDA) as the developer for Tukwila Village on June 6, 2011. Since that time, the City and TVDA have been negotiating a Disposition and Development Agreement (DDA). On December 19, 2011, staff presented the proposed key deal terms to the City Council. City staff and TVDA continued negotiations and work on the project and are now making final edits to a proposed DDA that will be provided to the Council at the September 24, 2012 meeting. 7:10 p.m. Councilmember Ekberg entered the Council Chambers. Mr. Speck utilized a Powerpoint presentation to provide an overview of the project. The City and TVDA have also been negotiating with the King County Library System (KCLS) in order for a KCLS branch library to be built on the site. In June 2012, the King County Library Foundation committed to raising funds so that KCLS could increase the size of the building from 8,000 square feet to 10,000 square feet. On June 25, 2012, the City Council approved key deal terms for the sale of a portion of the Tukwila Village property to KCLS. City staff will bring a proposed property purchase and sale agreement to a future Council meeting after the DDA with TVDA is approved. TVDA is still in negotiations with KCLS for TVDA to provide site work and infrastructure and for cross property easements. Those parties will reach agreement after the DDA is approved. Council approval of the DDA is one step in a multiple step process. The City Council will also be asked to approve the following: 1. Development Agreement (DA). 2. Street Vacation of 41 Avenue South. 3. Boundary Line Adjustments. 4. Police Neighborhood Resource Center Lease. This will be negotiated once the project is further along. The Disposition and Development Agreement is a contract that outlines the roles and responsibilities of the City and TVDA and other conditions for the sale of the Tukwila Village property to TVDA. That agreement reflects the City and TVDA roles as seller and buyer of property. A DDA is significantly more detailed and extensive as compared to a typical property purchase and sale agreement because the DDA includes provisions giving the seller some control over how the property is developed, including the proposed phasing development, plus other rights and responsibilities. This is the first DDA the City has ever considered. As an exhibit of the DDA, the Council will be approving a Preliminary Site Plan. When TVDA submits the project for design review, they will also submit a Proposed Site Plan. The Mayor or his designee will verify that the Proposed Site Plan is substantially similar to the Preliminary Site Plan to ensure the project submitted for design review sufficiently meets the Council's vision for the project. Once the project enters the design review phase, the design approval will go through the City's regular process and be reviewed by staff from various City departments and the Board of Architectural Review (BAR). That review process may necessitate changes to the site plan, but those changes are not expected to be brought back to the City Council. The DDA also provides the BAR the authority for approving the design of the outdoor plaza and indoor commons during the design review process. This is not typically under the BAR's purview; however, it is appropriate in this case since the BAR will be reviewing and approving the overall site plan and design. Staff and TVDA will mutually develop guidelines the BAR will use when reviewing the design of the plaza and commons. The guideline will include a "Statement of Purpose and Design" for the plaza and another for the commons. There will be an opportunity for public input on a draft of the guidelines. Tukwila City Council Committee of the Whole Minutes September 10, 2012 Page 3 of 8 The City and TVDA will jointly form a community organization that will lease the plaza parcel from the developer for $1 per year for 40 years. The DDA states that TVDA will make a one -time contribution of $50,000 to the community organization. Other key terms and conditions to the agreement described above include: Library Architectural Style: The DDA provides for the City to use its best efforts to require KCLS to submit a proposed site plan of the library parcel and a conceptual architectural design for the proposed library building by the time TVDA submits a design review application for the first development phase. Library Parcel: The DDA acknowledges the City's intent to sell a parcel of property, the "Library Parcel," to KCLS for a library branch. Plaza Maintenance and Utilities: The DDA provides for TVDA to maintain the plaza and pay for all related utilities and for the community organization to reimburse TVDA for 50% of the total maintenance costs, plus 100% of the solid waste costs related to users scheduled by the community organization. Commons Maintenance and Utilities: The DDA provides for TVDA to maintain structural components and mechanical systems and exterior of the commons and the community organization to maintain non structural interior components. The community organization will be responsible for all utilities related to the commons. Plaza and Commons Repair: The DDA provides for TVDA to be responsible for repairs to the plaza and commons due to ordinary wear and tear and damage caused by users not scheduled by the community organization. The community organization will be responsible for repairs to the plaza and commons due to damage from scheduled users. South 144 Street Improvements: The DDA provides for TVDA to construct any street frontage improvements requested by TVDA or required by the City. An example of the improvements being considered by TVDA is shown on the concept site plan (page 11 of the agenda packet). The DDA also states that the City will make the South 144 Street project a high priority project and actively seek outside funding. If the road work starts in 2013, it is unlikely the City would be able to secure outside funding for the project. The infrastructure costs would be included in the residual land value analysis. Tukwila International Boulevard Improvements: The DDA includes provisions to enable TVDA to request City approval to construct some on- street parking improvements along Tukwila International Boulevard. Encouraged Uses: All parties have expressed interest to have a coffee shop /cafe and diner -style restaurant as commercial tenants. As an incentive to encourage TVDA to attract these tenants, the DDA states the City and TVDA would identify these spaces and that TVDA cannot lease the spaces to alternative uses for 2 years from the date the City issues the estoppel certificate of completion for the residential component of the first phase. This is not a guarantee those spaces will have the intended uses, but it is a reasonable financial incentive. Quality of Construction Materials: The DDA specifies that TVDA will utilize high quality construction materials consistent with mixed -use development and market rate residential rental apartment properties. Renegotiation Rights: The City would have the right to renegotiate the agreement if the residual land value analysis results in an average land value of less than $10,000 per residential unit plus an adjustment for commercial space. If TVDA rejects the City's proposal, the agreement for that phase would be terminated. This protects the City from being locked into selling the property at too low of a price. Staff currently estimates this would let the City terminate the agreement with TVDA if it does not result in a land price of at least $4 million. Tukwila City Council Committee of the Whole Minutes September 10, 2012 Page 4 of 8 Termination Rights: Although the City would not desire to terminate the agreement, we would have the right to do so if TVDA is not moving forward with the project prior to conveying the property ownership to TVDA. As an example, if TVDA does not submit an application for design review for the first phase within 90 days from when the City executes and delivers the Development Agreement, the City could terminate the agreement and would retain the property. Clawback/Reversion: If TVDA purchases the property but does not progress with developing it, the City would have the right to repurchase the property. Although, none of the parties intend to use this provision, this protection is important in case unforeseen events occur that prevent TVDA from completing the project. Mr. Speck explained staff is scheduled to return to Council with a proposed Disposition and Development Agreement on September 24, 2012 for discussion and in October 2012 for a decision. Bryan Park, Tukwila Village Development Associates, LLC, expressed his appreciation to the City and staff relating to the process used for development of the agreement. They feel the proposed agreement is fair. He stated TVDA has done a lot more 3- dimensional design during the agreement negotiations than he expected at the beginning when TVDA was selected as the developer for the Tukwila Village site. He commented that the Tukwila Village Development is a public private partnership, and the development process has been better than expected. TVDA has developed an excellent working relationship with the City and King County Library System. This relationship allows for collaboration on the architectural style for the new library, a better understanding of the complex street vacation process, and identification of any potential impacts on neighboring properties. The process has allowed the community to voice their concerns and offer support on all aspects of the project. TVDA and the City have worked hard on the contractual process and they are on the cusp of completing the agreement. Councilmember Robertson asked whether the Board of Architectural Review process will include citizen input. Jack Pace, Community Development Director, stated an application for review by the BAR would follow a process similar to the Council's quasi judicial process. The surrounding property owners would receive notification of the application and notice of a public hearing. The BAR would be provided a staff report along with the application materials approximately one week prior to the public hearing. The BAR would review the application and conduct a public hearing. The design criteria allows the BAR to approve the application, approve with conditions, or deny the application. Council President Seal said she feels the preliminary site plan appears to have been developed based on comments the developer received from the Council and from the community. Councilmember Robertson commented on the other proposed terms relating to South 144 Street and Tukwila International Boulevard improvements. He explained street improvements are big ticket items, and the City's costs associated with those improvements can vary dramatically, depending on grant funding and the design of the improvements. He expects the Council to receive very detailed information, specifically the range of costs associated with the proposed improvements. Mr. Speck spoke to the referenced improvements to Tukwila International Boulevard (TIB). He explained the developer is requesting an access road /off street parking, similar to the one constructed at the Appliance Distributor site. He explained that during the City's TIB improvement project, if a business property met specific criteria such as required set -back from the new property boundaries or width of the building /parcel, an access road with parking was constructed. The developer intends to complete this improvement as part of the project, and he has a construction cost estimate for that specific work. The costs for the infrastructure /frontal improvements for South 140' Street have been included in the construction cost of the development. Councilmember Ekberg concurred with the statement that the City cares about the development of this property. He asked if the design guidelines for the plaza would be reviewed by the Council. Tukwila City Council Committee of the Whole Minutes September 10, 2012 Page 5 of 8 Mr. Speck clarified the design guidelines would not be brought forward to the Council for review and comments. However, the process can be modified to allow the Council an opportunity to review and comment on the guidelines. Councilmember Ekberg asked for additional information on the formation and vision of the proposed community organization that will manage the plaza and common areas. Mr. Speck explained the idea behind the formation of a community organization is that it would be a 501(c)3 non profit organization that would have a board of directors, which could be a representation of key groups within the City. The community organization will manage and operate the plaza and commons. The City and TVDA's intent is for the community organization to use the revenues it receives from plaza and commons reservations or outside grants to cover its operating, maintenance, and other costs. Councilmember Hougardy asked whether the City would be responsible for any debt incurred by the community organization that they were unable to pay. She also asked if the City has budgeted for any of the proposed improvements to South 144 Street. Mr. Speck clarified the City would not be responsible for the debt incurred by the community organization, and the City has $68,000 in the Capital Improvement Program (CIP) for the South 144 Street improvements. This amount has been budgeted for project analysis by the Public Works Department. Councilmember Quinn asked staff to continue updating the Council on the status of the project, specifically the proposed phasing schedule. He voiced his appreciation of the creative idea on the formation of the community organization, and he is pleased with the positive comments from the developer regarding the City's development process. The Council and citizens have clearly voiced their wants and needs for the project. Councilmember Kruller stated Tukwila Village is a long -time dream for many in the community. She asked staff to continue communicating with the Council on the forward progress of the project. She supports the formation of the community organization, and she looks forward to more details of that plan as they become available. It is her opinion that the conceptual site plan reinforces the City's vision and desires of the other community groups for Tukwila Village. Jim Bernhard, 14241 59th Avenue South, stated he feels the proposed development will be a huge improvement to that area. He asked if the pedestrian crossing identified on the site plan would be a signaled crossing across South 144 Street. Mr. Speck explained the details of the concept of the pedestrian crossing have not been addressed at this time. Details such as signalized crossings will be considered in the future. Sharon Mann, 4452 South 160 Street, expressed her support for the formation of the community organization that will manage the plaza and commons areas. Pam Carter, 4115 South 139 Street, said she supports the formation of the community organization. She feels a non profit organization would have greater flexibility than the City on rental policies and the types of organizations that would be allowed to utilize the space. John Cruce, 13701 43rd Place South, asked what would happen to the current Foster Library building when the new library has been constructed, and whether that area will be incorporated into Tukwila Village. Mr. Speck explained the Foster Library building is owned by the King County Library System, and they will determine the future use of the building. Council President Seal thanked staff for the update, and reminded the Council the proposed DDA will be diiscussed at the September 24, 2012 Council meeting. Tukwila City Council Committee of the Whole Minutes September 10, 2012 Page 6 of 8 b. Discussion regarding content for budget work sessions. Council President Seal stated Councilmember Quinn, as Chair of the Finance and Safety Committee, will lead the discussion on the proposed content for the upcoming Budget Work Sessions. Councilmember Quinn explained the Finance and Safety Committee suggested the Council conduct work sessions to review the 2013 -2014 Biennial Budget. To provide guidance on this discussion, a proposed outline of discussion topics is included on page 17 of the agenda packet. The purpose of the discussion is to identify topics for Council discussion during the work sessions. Peggy McCarthy, Finance Director, explained the work session themes and concepts will be related back to the first workshop the Council conducted in May 2012. Councilmember Quinn said he will present each topic to the Council, with the intention that the Council will have a detailed discussion on each of the agenda topics. He has prepared a revised list of topics for discussion for each of the work sessions. The Councilmembers exchanged comments on the list of topics for discussion, and specifically "Attachment A." Following Council discussion, the schedule was confirmed for the Council budget work sessions: _F irst work session: September 19, 2012 Attachment A with 2011 actuals and 2012 actuals /estimates through the end of the year. Economic update brief overview of the financial status of the City. Second quarter 2012 actual results. Updated results through August 2012 for selected funds. 2012 estimate of annual results for the General Fund. Reserve policy. Council to provide budget direction to staff on themes, process, key goals and concepts. Second work session: October 9, 2012 Discussion of the 6 -year Finance Plan: Attachment A review and discussion of the "Big 5 Departments" Public Works; Parks and Recreation; Community Development; Fire and Police. _T hird work session: October 10, 2012 Continue review and discussion of the "Big 5 Departments." Discuss the proposed CIP projects. Summarized City Budget and Financial Planning Model. _F ourth work session: October 11, 2012 Re -cap of the information discussed at the previous work sessions. Council discussion, initiatives and recommended changes. Ms. McCarthy provided the Council with the proposed schedule for distribution and review of the 2013- 2014 Biennial Budget. October 1, 2012 Proposed Preliminary Budget distributed to the City Council. October 22, 2012 Preliminary Budget, including the Mayor's budget message will be presented to the Council. November 2012 The Council will conduct a public hearing on the preliminary budget. Kimberly Matej, Council Analyst, explained the proposed work session schedule and budget distribution is a new process that is based on the Council's request for additional time to review the preliminary budget information. Tukwila City Council Committee of the Whole Minutes September 10, 2012 Page 7 of 8 REPORTS a. Mayor Mayor Haggerton said there has been an announcement of the opening of a new Tukwila business, Total Wine and More. They will have a soft opening on September 20, 2012, with the grand opening and ribbon cutting on October 4, 2012. On September 7, 2012, two representatives from the Museum of Flight visited City Hall to discuss with the Mayor the news article that was published in "The Seattle Times" on September 9, 2012. b. City Council Councilmember Hougardy attended the September 7, 2012 Community Schools Collaboration open house event. She reminded the Council of the Restore the Duwamish Shoreline Challenge launch event to be held on September 14, 2012 at 1:00 p.m. at the Gateway Corporate Center. Councilmember Quinn hosted the September 8, 2012 Council Coffee Chat. A few of the topics of discussion during the Coffee Chat included concerns that the Tukwila School District was proceeding with actions to acquire some of the parking lot at the Riverton Church to create a pedestrian walking area, whether the City has an interest in preserving the structures at the old Carosino farm, and the opening of a disc golf course. Councilmember Kruller stated she would support an off -leash dog park and a Ultimate Frisbee course. She reminded the Council of the Employee Appreciation Wellness Fair on September 20, 2012 to be held at the Tukwila Community Center. Council President Seal attended the September 6, 2012 Equity and Diversity Commission meeting, and she reminded the Council of the September 22, 2012 Community Heritage and Culture Celebration event that will be held at Foster High School. c. Staff There was no report. d. City Attorney The City Attorney's presence is not required at Committee of the Whole meetings. e. Intergovernmental Kimberly Matej, Council Analyst, reminded the Council of the Open Public Meetings Act. She asked the Council to be mindful of the number of Councilmembers who will be attending City events. She requested that she be contacted if four or more Councilmembers are planning to attend the upcoming Strategic Plan event so the meeting can be properly noticed by the City Clerk's Office. MISCELLANEOUS Councilmember Ekberg announced his family and a few of his neighbors hosted an event for a local Burmese family on September 9, 2012. He stated it truly takes a village to help the City's immigrant population transition into society. Tukwila City Council Committee of the Whole Minutes September 10, 2012 Page 8 of 8 ADJOURNMENT 9:32 p.m. COUNCIL PRESIDENT SEAL DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. k i Qma. 2 Verna Seal, Council President ,1 1- �5A-. Melissa Hart, Deputy City Clerk APPROVED AND SIGNED BY THE COUNCIL PRESIDENT ON 10/01/2012 AVAILABLE ON THE CITY'S WEBSITE 10/02/2012