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HomeMy WebLinkAboutCAP 2007-08-28 COMPLETE AGENDA PACKET Distribution: City of Tukwila P. Carter S. Kerslake y V. Griffin G. Labanara t a Community Affairs and P. Linder K. Matej X. Mullet C.O'Flaherty May i�z Parks Committee y R. Berry J. Pace 190a Pam Linder, Chair E. Boykan D. Speck Pam Carter J. Cantu R. Still B. Fletcher CC File (cover) Dennis Robertson K. Fuhrer B. Miles V. JessoD C. Lumb AGENDA Tuesday, August 28, 2007 Conference Room #3; 5 PM ITEM ACTION TO BE TAKEN Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. Comprehensive Plan Amendments; a. Forward to 9/10 C.O.W. Pg. 1 Jack Pace, Acting Community Development and 9/17 Regular Director b. Consultant Contract for Shoreline Master b. Forward to 9/10 C.O.W. Pg.39 Program Update; Caro /Lumb, SeniorPianner and 9/17 Regular c. Sign Code Update Timeline Briefing; c. Forward to 9/4 Regular for Pg.47 Brandon Mlles, Assistant Planner briefing to whole Council 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Tuesday, September 11, 2007 The City of Tukwila strives to accommodate those with disabilities. Please contact the City Clerk's Office at 206 433 -1800 for assistance. To: From: Subj ect: Date: City of Tukwila Steven M. Mullet} Mayor Department of Community Development Steve Lancaster, Director Community Affairs and Parks Committee ~ Jack Pace, Acting Director, Department of Community Development '\\ 1) Request"Emergency" status of proposed Comprehensive Plan ame \ ment (Sabey MIC/H to LI) and 2) Proposed Comprehensive Plan Amendment August 28, 2007 BACKGROUND The City of Tukwila received two applications for Comprehensive Plan amendments prior to the December 31, 2006 deadline. The Tukwila City Council held a public meeting on the applications on March 5, 2007, and fonvarded the applications to the Tukwila Planning Commission for a hearing that was held on March 22, 2007. In late March, Open Frame filed an appeal ofthe environmental determination ofthe amendment request pertaining to the future Transit Center location in the Tukwila Urban Center. As the SEP A appeal proceeds independently, the applications are ready to be scheduled for Council hearing and action. On August 13,2007, the City of Tukwila received an application from the Sabey Corporation for a Comprehensive Plan amendment and Rezone from Manufacturing/Industrial Center-Heavy (MIC-H) to Light Industrial (LI), on immediately south of Boeing Field. The location and project area are shown in Attachments A and B. The applicant requests that the Comprehensive Plan amendment request be considered as an "emergency" and reviewed in 2007 with the amendments that are currently under consideration, rather than waiting until 2008 for a new amendment cycle. The Washington Growth Management Act stipulates that jurisdictions may amend their Comprehensive Plans no more frequently than once per year unless it is an emergency as defmed by the jurisdiction. TMC 18.80.020 (Attachment C) describes the docketing procedure, including the criteria for the emergency amendment. The City Council will be requested to take two actions associated with the request from the Sabey Corporation, including: 1) First, to determine whether or not to accept the proposed change as an emergency and consider it in 2007, along with two applications currently in the process, or to hold the application for consideration until 2008, and; 2) Second, if the City Council accepts the "emergency" amendment, to decide whether or not to forward the application to the Planning Commission for further consideration. Rf 08/20/2007 E:\COMP PLAN AMEND 2006-200T\SabevCAP-8.28.07.doc 6300 Southcenter Boulevard, Suite #100 · Tukwila, Washington 98188 · Phone: 206-431-3670 · Fax: 206-431-3665 It should be noted that the City Council will not be deciding on the merits ofthe request at this point. Rather, it would decide whether or not to refer the request to the Planning Commission for further review and a recommendation. If the Council decides to forward the application to the Planning Commission, the Planning Commission would hold a hearing on the new amendment request in October, 2007. The proposal would then join up with two existing amendment requests that have been on hold at the Planning Commission level. After Planning Commission review, the City Council would hold a public hearing and take action prior to December 31, 2007. DISCUSSION: "Emereency" Amendment The Washington Growth Management Act stipulates that jurisdictions may amend their Comprehensive Plans no more frequently than once per year unless it is an emergency as defined by the jurisdiction. TMC 18.80.020 (Attachment C) describes the docketing procedure, including the criteria for the emergency amendment. An emergency amendment is a proposed change or revision that requires "expeditious" action to address one of more of the following criteria: 1) Preserve the health, safety or welfare of the public; 2) Support the social, economic or environmental well-being of the City; 3) Address the absence of adequate and available public facilities or services; 4) Respond to decisions by the Central Puget Sound Growth Management Hearings Board, the state or federal courts, or actions of a state agency or the legislature. The applicant requests that the amendment be handled as an "emergency" and reviewed in 2007 with the existing amendment requests based on the need to act expeditiously to support the economic well-being ofthe City. Attachment D discusses the applicant's Finding of Emergency, including an economic study prepared by ECONorthwest. Although the applicant has asked that this request be considered as an "emergency" in order to have it reviewed in 2007, the proposed amendment only needs to "catch up" with the other amendments that are on hold at the Planning Commission level. The Council could do this by adding the application to the existing docket. Since the City Council has not yet acted on the Comprehensive Plan and Rezone applications for 2007, the Council could decide to have the new application go through review and then make a decision on all three amendments by the December 31, 2007 deadline. As noted in the application, the property is split between Tukwila and Seattle. Taking action to review the amendment in 2007 will ensure that Tukwila's review is coordinated \vith Seattle, and is not delayed by Seattle's process. Finally acting to review the proposed "emergency" amendment in 2007 will allow the City Council to review all three existing applications in a comprehensive manner. Rf E:\COMP PLAN AJvlEND 2006-2007\SabeyCAP-8.28.07.doc 2 08/20/2007 RECOMl\1Ej\T))ATION: "Emen!:ency" Amendment Staff recommends considering the proposed amendment as an "emergency" and including it in the review process for 2007. Staff requests that the CAP forward the issue of whether the proposed amendment is an "emergency" to the COW for a briefing on September 1 0, 2006, and to the Regular Meeting on September 17, 2007 for a decision on whether to include it in the 2007 review process. DISCUSSION: Proposed Amendment ReQuest The applicant proposes a Comprehensive Plan amendment and rezone to redesignate approximately 36.5 acres ofland in the Tukwila Manufacturing/Industrial Center from Manufacturing Industrial Center -Heavy (MICIR) to Light Industrial (Ll). Located immediately south of Boeing Field, the site is currently occupied by the Associated Grocers warehouse and distribution center. The 64 acre Associated Grocers project area is split between Tukwila and Seattle, with approximately 57% (36.5 acres) in Tukwila, and 43% (27.22 acres) in Seattle. lfthe Comprehensive Plan amendment and Rezone are approved, the property would remain split between Seattle and Tukwila. The applicant has been coordinating future development of the property between Tukwila staff and Seattle staff. Once Associated Grocers' lease ends, the applicant intends to redevelop the site into a mixed use development. Although at a conceptual stage, Attachment E shows that the development would be likely to include approximately 700,000square feet of office use, 550,000 square feet of retail use, 80,000 square feet of hotel/lodging, 60,000 square feet of entertainment (theatre) use, and 100, 000 square feet of light industrial use, such as warehousing and manufacturing. By changing the designation from Manufacturing- Industrial Center/-Heavy (M/IC-H) to Light Industrial (LI), property would be removed from the Manufacturing Industrial Center, but could be developed in a wider range of uses. Under the Ll zoning, future development could include varied development, including more retail and office, than under MIC-H. Future development on the property would generate jobs and tax revenue, as well as improve the overall appearance of the area. It could also produce additional traffic impacts, and possibly increase pressure on remaining industrial lands to convert to commercial uses. Depending on what is developed on the site, it could compete with future development opportunities in the Tukwila Urban Center. RECOMl\1ENDATION: Proposed Amendment ReQuest Staff requests that the CAP forward consideration of the proposed Comprehensive Plan amendment and Rezone from MIC-H to Ll to the COW for a briefing on September 10, 2006, and to the Regular Meeting on September 17, 2007 to take comments in a public meeting. Rf E:\C01vIP PLAN AMEi\'D 2006-2007\SabeyCAP-8.28.07.doc 3 08/2012007 Afterwards, the City Council will determine \vhether to forward the application to the Planning Commission for further review in 2007. It should be noted that the City Council will not be deciding on the merits of the request at this point. Rather, it would decide whether or not to refer the request to the Planning Commission for further consideration. After a Planning Commission hearing and recommendation, all three amendment requests would come back to the City Council for public hearing and a decision before December 31, 2007. ATTACHMENTS Attachment A: Attachment B: Attachment C: Comprehensive Plan/Zoning Code Amendment Map Comprehensive Plan/Zoning Code Amendment Aerial 1MC 18.80 Amendments to the Comprehensive Plan and Development Regulations Findings of Emergency (Sabey Corporation, 8/13/07) Conceptual Site Plan Attachment D: Attachment E Rf E:\COMP PLAN AMEND 2006-2007\SabeyCAP-8.28.07.doc 4 0812012007 MIC /H MIC /H MIC /H TU LA SEATTLE 00,//.1/ Af "riff Or/ c f* W rte „iv/Jr, Ati.s /i. �I. I A„, Boeing Access Rd I II I I I I I I I I) 1 City of Tukwila Comp Plan Amendment L07 -066 Rezone L07 -067 Proposed Rezone N Comprephensive Plan Amendment N from MIC /H to LI MIC /H V 1 MIC /H to LI Project Area MIC /H 1 =100' t I Attachment A Attachment B Comprehensive Plan Amendment LO7-066 Rezone L07-067 Proposed Rezone and Comprehensive Plan Amendment from MIC/H to LI TUKWILA MUNICIPAL CODe ATTACHMENT C Chapter 18.80 AMENDMENTS TO THE COMPREHENSIVE PLAN AND DEVELOPMENT REGULATIONS Sections: 18.80.010 Application 18.80.015 Documents to be Submitted with Application 18.80.020 Docket 18.80.030 Notice and Comment 18.80.040 Staff Report 18.80.050 Council Consideration 18.80.060 Council Decision 18.80.010 Application Any interested person (including applicants, citi- zens, Tukwila Planning Commission, City staff and officials, and staff of other agencies) may submit an application for an amendment to either the compre- hensive plan or the development regulations to the Department of Community Development. Such applications are for legislative decisions and are not subject to the requirements or procedures set forth in TMC Chapters 18.104 to 18.116. In addition to the requirements of TMC 18.80.015, the application shall specify, in a format established by the Department: 1. A detailed statement of what is proposed and why; 2. A statement of the anticipated impacts of the change, including the geographic area affected and the issues presented by the proposed change; 3. An explanation of why the current comprehensive plan or development regulations are deficient or should not continue in effect; 4. A statement of how the proposed amendment complies with and promotes the goals and specific requirements of the Growth Management Act; 5. A statement of how the proposed amendment complies with applicable Countywide Planning Policies; 6. A statement of what changes, if any, would be required in functional plans (Le., the City's water, sewer, storm water or shoreline plans) if the proposed amendment is adopted; 7. A statement of what capital improvements, if any, would be needed to support the proposed change, and how the proposed change will affect the capital facilities plans of the City; and 8. A statement of what other changes, if any, are required in other City codes, plans or regulations to implement the proposed change. fOrd. 1770352, 1996j Ord. 175831[part), 1995) 18.80.015 Documents- to be Submitted with Application A. Applications for amendments to the compre- hensive plan or development regulations shall provide the following documents in such quantities as are specified by the Department: 1. An application form provided by the Department. 2. King County Assessor's map(s) which show the location of each property within 300 feet of the property which is the subject of the proposed amendment. 3. Two sets of mailing labels for all property owners and occupants (businesses and residents) , including tenants in multiple occupancy structures, within 300 feet of the subject property. 4. A vicinity map snowing the location of the site. 5. A surrounding area map showing compre- hensive plan designations, zoning designations, shore- line designations, if applicable, and existing land uses within a 1000 foot radius from the site's property lines. 6. A site plan, including such details as may be required by the Department. 7. A landscaping plan, including such details as may be required by the Department. 8. Building elevations of proposed structures, including such details as may be required by the Department. 9. Such photo material transfer or photostat of the maps, site plan and building elevation, including such details as may be required by the Department. 10. Such other information as the applicant determines may be helpful in evaluating the proposal, including color renderings, economic analyses, photos, or material sample boards. B. The Department shall have the authority to waive any of the requirements of this section for proposed amendments which are not site specific or when, in the Department's discretion, such informa- tion is not relevant or would not be useful to considera- tion of the proposed amendment fOrd. 1770 353, 1996) 18.80.020 Docket A. The Department shall maintain a docket of all proposed changes to the Comprehensive Plan and development regulations that are submitted.; If eIther the DepartIIient or the Council determines that a pro- posed cl1ange may be an emergency, the Department shall prepare the staff report described below and forward the proposed change to the Council for immediate consideration, subject to the procedural requirements for consideration of amendments. An emergency amendment is a proposed change or revision that necessitates expeditious action to address one or more of the following criteria: h.:_....... I_...........,,,nn.c: TITLE 18 - ZONING 1. Preserve the health, safety or welfare of the public. 2. Support the social, economic or environ- mental well-being of the City. 3. Address the absence of adequate and avail- able public facilities or services. 4. Respond to decisions by the Central Puget Sound Growth Management Hearings Board, the state or federal courts, or actions of a state agency or the legis- lature. B. Non-emergency changes shall be compiled and submitted to the Council for review on an annual basis in March so that cumulative effects of the proposals can be determined. Proposed changes received by the Department after January 1 of any year shall be held over for the following year's review, unless the Coun- cil or the Department determines the proposed change may be an emergency. (Ord. 2071 91,2004; Ord. 1770954, 1996; Ord. 175891(part), 1995) 18.80.030 Notice and Comment The docket of proposed changes shall be posted in the offices of the Department and made available to any interested person. At least four weeks prior to the Council's annual consideration of the changes proposed on the docket, the City shall publish a notice in a newspaper of general circulation in the City, generally describing the proposed changes including areas affected, soliciting written public input to the Department of Community Development on the proposed changes, and identifying the date on which the Council will consider the proposed changes. (Ord. 1758 91 (part), 1995) 18.80.040 Staff Report A; At least two weeks prior to Council consideration of any proposed amendment to either the comprehensive. plan or development regulations, the Department shall prepare and submit to the Council a staff report which addresses the following: 1. the issues set forth in this chapter; 2. impact upon the Tukwila Comprehensive Plan and zoning code; 3. impact upon surrounding properties, if applicable; 4. alternatives to the proposed amendment; and 5. appropriate code citations and other relevant documents. B. The Department's report shall transmit a copy of the application for each proposed amendment, any written comments on the proposals received by the Department, and shall contain the Department's recommendation on adoption, rejection or . deferral of each proposed change. (Ord. 175891(part), 1995) 18.80.050 Council Consideration A. The City Council shall consider each request for an amendment to either the comprehensive plan or development regulations at a public meeting, at which the applicant will be allowed to make a presentation. Any person submitting a written comment on the proposed change shall also be allowed an opportunity to make a responsive oral presentation. Such oppor- tunities for oral presentation shall be subject to reason- able time limitations established by the Council. B. The Council will consider the following in deciding what action to take regarding any proposed amendment: 1. Is the issue already adequately addressed in the Comprehensive Plan? 2. If the issue is not addressed in the Comprehensive Plan, is there a public need for the proposed change? 3. Is the proposed change the best means for meeting the identified public need? 4. Will the proposed change result in a net benefit to the community? C. Following Council consideration as provided by TMC 18.80.050A and 18.80.050B, the City Council shall take action as follows: 1. refer the proposed amendment to the Planning Commission for further review and a recommendation to the City Council; 2. defer further Council consideration for one or more years to allow the City further time to evalu- ate the application of the existing plan or regulations; or 3. reject the proposed amendment. (Ord.. 185691, 1998; Ord. 1770955, 1996; Ord.. 1758 91 (part), 1995) 18.80.060 Council Decision Following receipt of the Planning Commission's recommendation on a proposed amendment referred to the Commission, the City Council shall hold a public hearing on the proposal, for which public notice has been provided as required under the Public Notice of Hearing chapter of this title. Following the public hearing, the City Council may: 1. adopt the amendment as proposed; 2. modify and adopt the proposed amendment; or 3. reject the proposed amendment. (Ord.. 185692, 1998; Ord. 175891(part), 1995) D.....a 1 A 1 I,lJ:; ATTACHMENTD S~BEY COR POK_i:.T~ON August 13,2007 VIA HAND DELNERY City Council City of Tukwila 6200 Southcenter Boulevard Tukwila, W A 98188 Re: Sabey Corporation Comprehensive Plan Amendment Finding of Emergency Dear Councilmembers: In January of2007, The Sabey Corporation ("Sabey") agreed to acquire the 65-acre property that comprises the Associated Grocers distribution facility in north Tukwila. Although bidders from elsewhere in the United States and around the globe pursued this site, we prevailed in the competition based on our history, understanding and confidence in the future of the City of Tukwila Perhaps uniquely among the group of bidders, we recognized the prominent position this site plays as a gateway to Tukwila. And certainly we were alone among the bidders in understanding the role of this site in the City's long-standing efforts to improve the Highway 99/Tukwila International Blvd. corridor. These factors suggested a different future for the site than for heavy industrial uses - its current zoning designation. We recognized that a change in the designated land use for the property would bring it into conformity with the City's broader planning efforts for North Tukwila, as outlined in the 1995 Comprehensive Plan. Though we recognized that such changes are necessary, we could not put the property under contract - and thereafter close on its purchase -- until after the close of the application process for the 2007 docket of Comprehensive Plan amendments. For this reason, we were not able to file such an application within the nonnal time period. But the City and State Codes provide for "emergency" exceptions to this filing period, and we are writing today to request that the City Council review and approve such an emergency endorsement of this application so it may proceed forward this fall with the other 2007 Comprehensive Plan amendments on the docket. The site uniquely straddles the boundary between Tukwila and Seattle. The location ofthis boundary is a historical relic, and does not reflect good land use planning. The bifurcation of this larger site between two jurisdictions will hinder the opportunity to develop this site for the benefit of the City of Tukwila. The differing regulatory frameworks in Tukwila and Seattle pose challenges to coordinated redevelopment. While this property is Tukwila's northern gateway, occupying a landmark position at the head of the Highway 99/Tukwila International Boulevard corridor, it is effectively an island for the City of Seattle, separated by Boeing Field and Interstate 5 from the rest of the City. The City of Seattle has more important sites and issues to }I /" f I I i RE,l\L ESTATE DEVELOPMENT f / I Sabey Corporation 12201 Tukwila International Blvd. 4th Floor ~A::lttIA W::l~hinntnn 98168-5121 Ii 206/281-8700 main line 206/282-9951 fax line CONSTRUCTION / ,~RCHiTECTURE www_ ~::lhAV_COm Tukwila City Council August 13,2007 Page 2 of7 deal with than this island property at the southern extremity of its municipal boundary. Simply stated, the redevelopment ofthis site may be a higher priority for Tukwila than for Seattle. Hence, we request that the City of Tukwila take a leadership role in the land use planning for the total development in order to insure this unique opportunity. The City Council has not yet acted on the 2007 Comprehensive Plan Amendment docket. Thus, there is an opportunity to fold this proposed amendment in with the current process, and still allow the City Council to consider the entire group of amendments comprehensively. Webster's defines an "emergency" as "an unforeseen combination of circumstances that calls for immediate action." This is such a case. Failure to advance the planning process by Emergency Measures on the Comprehensive Plan Amendment will relinquish key decisions to the City of Seattle, and force the project to work through what may be a two-year timeline with the City of Seattle. Therefore, we are asking that you please take action to place this Comprehensive Plan amendment on the 2007 docket by using your right under law as outlined in the emergency action provision of the Tukwila Code. Since the other amendments on the 2007 docket remain pending before the Council, the inclusion of this one will still permit the City to view the amendments together per state policy. For your reference, I have attached a more comprehensive statement in support of this request. Thank you for your consideration of this request. Sincerely, SABEY CORPORATION 4~<-<- ~~ ~ ' DavidA. Sabey I'UB# Enclosures cc: Hon. Steven Mullet Jack Pace Tukwila City Council August 10, 2007 Page 3 of7 REQUEST The Sabey Corporation ("Applicant") has filed an application for a Comprehensive Plan amendment and rezone to remove an approximately 36acre parcel south of Boeing Field in the City of Tukwila (shown on Exhibit A) from the Greater Duwamish Manufacturing-Industrial Center (MIC). Sabey has also filed a companion application for a rezone of this property to a Light Industrial ("Lr') designation. Sabey requests that the City consider the Comprehensive Plan amendment on its 2007 docket. BACKGROUND The property is a portion of a larger, 65-acre site that serves as the principal distribution center for Associated Grocers. Of this larger site, approxiniately 29 acres is located in the City of Seattle. Hence, as a site split between two jurisdictions, it faces a unique set of regulatory challenges in the redevelopment process. The site also holds a unique geographic position at the northern gateway to Tukwila's Highway 99 corridor - the northern entrance to the City. Associated Grocers will be relocating from this site at the end of its current lease term, which offers the City the first opportunity in decades to reposition the land use for this gateway location. In many respects, the success of the significant work the City has undertaken in the last 10 years to remake International Boulevard is ultimately dependent upon the establishment ofthis northern gateway. But the bifurcation of this larger site between two jurisdictions may hinder the realization of this opportunity. The differing regulatory frameworks in Tukwila and Seattle pose challenges to coordinated redevelopment. And while this property is Tukwila's northern Gateway, occupying a landmark position at the head of the Highway 99 corridor, it is effectively an island for the City of Seattle, separated by Boeing Field and Interstate 5 from the rest of the City. The impetus for capturing the redevelopment opportunity at this site must be driven by the City of Tukwila. A window of opportunity for such redevelopment exists in the market today. The existing warehouse distribution center use on the property is in decline, development to the south, west and east of the property in the City of Tukwila is tending toward light industrial and commercial uses, the property is well-served by transportation infrastructure, and the property is adjacent to a potential light rail station. Market conditions are favorable. Redevelopment of the property would provide significant benefits to the City of Tukwila. The redevelopment ofthe property will further the City's goals and policies as reflected in the Comprehensive Plan. In addition, the redevelopment ofthe property would greatly enhance the aesthetic qualities of the site, which is situated in a highly visible location at the northern gateway to the City. Redevelopment would also provide employment opportunities to City residents. Additionally, the City would receive substantial increased tax revenue from redevelopment. Tukwila City Council August 10, 2007 Page 4 of7 The late filing of the Comprehensive Plan amendment application was unavoidable. The subject property did not become available for purchase until after the December 2006 deadline for Comprehensive Plan amendments had passed. However, if the Sabey waits until 2008 to begin pursuing land use entitlements for the property, the window of opportunity for redevelopment may have passed. Favorable market conditions may no longer exist. Due to the complexities of the land use permitting for this site, the timing of the City of Tukwila action's on the Comprehensive Plan amendment is crucial. Since, the property is located partially within the City of Tukwila and partially within the City of Seattle, any development must obtain land use approvals from both jurisdictions. The Comprehensive Plan amendment and rezone by the City of Tukwila is the first step in the land use permitting process. Ultimate redevelopment will depend, however, on the successful entitlement of the site in both Tukwila and Seattle. Because ofthe importance of this site to the City of Tukwila - a keystone site at the northern gateway of the City - we believe it is critical that the City ofTukwila take the first step in the entitlement process. As an island property to the City of Seattle, and given the scope and complexity of other land use issues faced by Seattle, this site will attract less focus and attention in the Seattle process, which is not in the interest ofthe City of Tukwila Thus the City of Tukwila should take the lead this year on the redesignation of this site. However, if the City of Tukwila does not act on the Comprehensive Plan amendment application as part of the 2007 docket, then in order for Tukwila to continue to take a leadership role in this redevelopment effort, the City of Seattle process will be delayed by one to two years, due to the permitting time frames of the City of Seattle. Hence, action on this Comprehensive Plan amendment by the City ofTukwila should occur in 2007. Even though the Comprehensive Plan application was filed after the December 2006 deadline, the City Council has yet to act on the docket of amendments for this year. Thus, inclusion of this amendment in this year's docket will allow the City to review all such Comprehensive Plan amendment applications at the same time. For these reasons, an emergency exists. The City Council should consider the Comprehensive Plan amendment on its 2007 docket, concurrent with other pending applications. DISCUSSION City Code and State Law Requirements TMC 918.80.0lD provides: A. The Department shall maintain a docket of all proposed changes to the Comprehensive Plan and development regulations that are submitted. If either the Department or the Council determines that a proposed change may be an emergency, the Department shall prepare the staff report described below and forward the proposed Tukwila City Council August 10, 2007 Page 5 of7 change to the Council for immediate consideration, subject to the procedural requirements for consideration of amendments. An emergency amendment is a proposed change or revision that necessitates an expeditious action to address one or more of the following criteria: I. Preserve the health, safety or welfare of the public. 2. Support the social, economic or environmental well-being of the City. 3. Address the absence of adequate and available public facilities or services. 4. Respond to decisions of by the Central Puget Sound Growth Management Hearings Board, the state or federal courts, or actions of a state agency or the legislature. B. Non-emergency changes shall be compiled and submitted to the Council for review on an annual basis in March so that cumulative effects of the proposals can be. determined. Proposed changes received by the Department after January 1 of any year shall be held over for the following year's review, unless the Councilor the Department determines the proposed change may be an emergency. Only one of these criteria must be met in order to establish an emergency. TMC ~18.80.010. This provision implements the Growth Management Act ("GMA") requirement that comprehensive plans be amended no more than once a year, with some exceptions. RCW 36.70A.130(2)(a). An Emergency Exists As Dermed by Code The proposed comprehensive plan amendment qualifies as an emergency under TMC 18.80.010. Under that section, only one of the listed criteria must be met in order for an emergency to exist. Here, the proposed Comprehensive Plan amendment will support the social, economic and environmental well-being of the City. Social and Economic Well-Being Furtherance of Economic Development Goals The proposed Comprehensive Plan amendment will allow the redevelopment ofthe subject property under the LI zoning designation. Redevelopment of the subject property will further the economic development goals ofthe City as reflected in its Comprehensive Plan. Under Comprehensive Plan Policy 2.1.10, the City should consider land use changes for warehouses if there is a change in sales tax sourcing rules. The property is currently occupied with a warehouse and distribution use. Changes in State sales tax sourcing rules have recently occurred. Specifically, in March 2007, the Legislature passed legislation allowing the State to join the Streamlined Sales Tax Project, which it did in July 2007. Under prior law, the jurisdiction where a product originates receives the sales tax. With the recent change, the Tukwila City Council August 10, 2007 Page 6 of7 jurisdiction where the product is delivered receives the tax. Accordingly, land use changes are appropriate under Policy 2.1.10. The proposal is also consistent with a number of other goals and policies of the Economic Development element of the Tukwila Comprehensive Plan. Comprehensive Plan Goal 2.1 promotes "continuing enhancement of the community's economic well-being." Policy 2.1.12 calls for the City to "[p ]romote Tukwilaas a regional crossroads for commerce." The redevelopment of the subject site will further these goals by bringing new businesses to the City. Furtherance of Community Image Goals The proposal will further Community Image goals and policies of the Comprehensive Plan, including Comprehensive Plan Goal 1.3 (identifiable boundaries for Tukwila) and Policy 1.3.1 (develop a set of gateways). The property has a highly visible location at the northern boundary to the City. The redevelopment of this site - for the first time in 50 years - will trigger the City's design review process, and ensure that new structures at the site will be of a high quality and will respond to and reinforce the gateway attributes of the property. As a result, the prominence and aesthetic qualities of the site will be enhanced significantly. Such enhancement will be critical to the long-term success of the City's determined efforts to reposition the Highway 99 corridor. The property will serve as the northern gateway to the City and the entry to the redeveloped International Boulevard corridor. Furtherance of Transportation Corridors Goals The proposal will further Transportation Corridor Goal 8.1 (transportation corridors that are functional, attractive and diverse). The redevelopment ofthe property will enhance the aesthetic qualities ofthe transportation corridors that form its boundaries, including Airport Way S., E. Marginal Way, S. Norfolk St., and S. Boeing Access Road. The project will provide any traffic improvements required by the City in connection with project development. Furthermore, the site is located adjacent to a potential Link Light Rail station, providing possible connectivity to all points on the light rail network. City Revenue Additionally, the redevelopment of the property will result in substantial additional tax revenue to the City of Tukwila. Please see the attached report from ECONorthwest regarding these potential fiscal impacts. Environmental Well-Being Any development on the site would comply with all applicable environmental regulations. In addition, prior to development, specific development plans would be subject to environmental review under the State Environmental Policy Act. Tukwila City Council August 10, 2007 Page 7 of7 Conclusion For these reasons, the proposed Comprehensive Plan amendment constitutes an emergency as that term is defined under TMC ~18.80.01O.A.2. We request that the City Council take action to place this proposed Comprehensive Plan amendment on the 2007 docket. GMA Requirements Are Met If the Council agrees to consider the proposed Comprehensive Plan amendment on the 2007 docket, it will be considered along with other applications on the docket. The Council will take action on all pending applications at the same time. Accordingly, the requirement of the Growth Management Act that the comprehensive plan be amended once a year is satisfied. RCW 36.70A.130(2)(a). CONCLUSION An emergency exists justifying the consideration of the proposed Comprehensive Plan amendment on the 2007 docket. Accordingly, the City Council should consider the proposed amendment in 2007 rather than delaying consideration of this application until next year. L:\MH GeneraIITerrplates\Letter.do! ECONorthwest ECONOMICS' FINANCE' PLANNING Phone' (541) 687-0051 FAX · (541) 344-0562 info@eugene.econw.com Suite 400 99 W. 10th Avenue Eugene. Oregon 97401.3001 Other Offices Portland · (503) 222.6060 Seattle · (206) 622-2403 August 9,2007 TO: FROM: SUBJECT: Mikel Hansen Terry Moore, Bob Parker, and Beth Goodman ANALYSIS OF IMPACTS OF A COMPREHENSIVE PLAN AMENDMENT AND ZONE CHANGE AT THE ASSOCIATED GROCERS SITE SUMMARY Sabey Corporation is submitting an application for a Comprehensive Plan Amendment and zoning change on the 64-acre Associated Grocers site. The analysis in this memorandum supports that application by addressing specific questions that the City has raised about the proposed changes. This section (two pages) summarizes our answer to those questions; the memorandum that follows this summary provides supporting data and analysis. CONTEXT The subject property is in Tukwila's Manufacturing Industrial Center (MIC). Its plan designation and zoning is MIC/H (Heavy Industrial). Sabey Corporation is requesting a change to Light Industrial (LI), which would allow for the development of office, commercial, and retail space as well as other light industrial uses. Sabey Corporation is planning to develop the property for office, retail, and light industrial. The City of Tukwila is concerned that the type of development proposed for the subject property could (1) discourage or be incompatible with existing uses in the MIC, (2) increase pressure for conversions from heavy industrial to commercial land, (3) decrease the amount of land available for industrial growth, and (4) compete or take market share for retail and commercial developments in Tukwila's Urban Center. IMPACTS TO INDUSTRIAL LAND 1. Will the proposed Comprehensive Plan Amendment significantly impact future industrial development on parcels near the subject property in the MIC? No. The majority of land near the subject property is already being used for commercial or light industrial uses. 2. Will the proposed uses on the subject property be compatible with existing and expected industrial uses in the MIC? Yes. Regional trends and local forecasts indicate that manufacturing employment is growing slowly or decreasing. Official regional, long- term employment forecasts suggest the majority of employment that Tukwila can expect ;c>~r:r-n!;:01l .: [....,..,.......... '-~.J err\.' .:-)~ -~'f ;?(\:'-'JfLl; ~4UG 1 3 2007. Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 2 in the future is Professional and Business Services and other types of employment that use office space. Boeing Field and Boeing properties separate the subject property from the heaviest industrial uses in the MIC. 3. Is granting the Comprehensive Plan Amendment likely to increase demand for conversion from industrial to commercial uses on areas adjacent to the subject property? Maybe, especially south of the subject site. That land is currently being used, however, for commercial and light industrial purposes. The pressure for conversion of this land to commercial uses is more likely to be affected by regional land prices for industrial land and employment trends than changes to the subject property. 4. Does the proposed development negatively impact the City's policy to have adequate land for industrial growth? Yes and no. Changing the zoning on the proposed development clearly reduces the amount of landfor some industrial uses (the property is roughly 4% of the industrial land in Tukwila), and allows the option to develop more of the land for office and retail uses. But the market trends have been clear for a while: land on and around the subject property is not being used much by heavy industry, and the subject property is now used for light industrial and commercial purposes. There is a reasonable, but not definitive, argument that the change in designation will have little impact on the long-run viability of industrial uses in Tukwila given market forces and the way the MIC/H zone is defined and implemented. IMPACTS TO THE URBAN CENTER 1. How will the uses on the subject site be similar and different from- the uses in the Tukwila Urban Center? The uses in the Tukwila Urban Center include a regional mall, high-density residential development, and a large mixed-use development. The uses on the subject site will be a smaller-scale mixture of retail, commercial, and light industrial uses. Most of the uses will primarily serve people working on or near the site, visitors wanting to stay near Sea-lac International Airport, and people living relatively near the subject site. 2. To what extent will the commercial and retail uses in the proposed development compete with commercial and retail uses in the Tukwila Urban Center and other developments within the City? There is no question that the proposed uses will compete with development in other areas of Tukwila: that is the nature of all types of development, and especially retail. The broader question is whether enough demand exists to support all of the existing and proposed developments.in Tukwila, including development on the subject property. PSRC forecasts strong employment growth in Tukwila for sectors that use office space. Population growth, coupled with increases in disposable income, will create demand for additional retail space. 3. What is the market area for the proposed development compared to the Tukwila Urban Center? The development concept includes two primary uses: employment (office and some industrial) and retail. The employment uses will draw workers from throughout the region. The retail uses will draw from a smaller market area. Since the mix of retailers is not yet specified, we cannot say definitively exactly what the market area will be. Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 3 INTRODUCTION BACKGROUND Sabey Corporation contracted with ECONorthwest to analyze the impacts of a Comprehensive Plan Amendment and zoning change on the 64-acre Associated Grocers distribution site, located in north Tukwila and south Seattle. The subject property is located in Tukwila's Manufacturing/Industrial Center (MIC) The ManufacturinglIndustrial Center (MIC) is an area designated in Tukwila's comprehensive plan as a manufacturing center. It includes land zoned for Manufacturing Industrial Center/Heavy Industrial (MIC/H) and Manufacturing Industrial Center/Light Industrial (MIC/L). The subject property is zoned MIC/H. Figure 1 shows that the subject property is located between Airport Way, Norfolk Road, East Marginal Way, the Duwamish River and the Boeing Access Road. The property is separated from other properties in the MIC by these roads, except along the northwestern edge of the property, which is adjacent to a credit mUon. Figure 1. Subject property and immediate transportation access Source: Johnson Gardner memorandum "Draft Economic and Market Trends Shaping Industrial Land Need in the Duwamish COrridor," May 10,2007 Fifty-five acres of the 64-acre site are occupied by the Associated Grocers headquarters and distribution facility, a light-industrial use that has existed in the heavy-industry zone for the past Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 4 50 years. Associated Grocers is considering changing the location of its facility; it is unclear whether they will continue using the site for more than two to four years. Sabey Corporation is seeking a Comprehensive Plan Amendment and zoning change on the property to bring the zoning in line with historical and likely future uses. The current plan designation is for heavy industrial uses MIC/H on the portion of the site in Tukwila and IG2 on the portion of the site in Seattle). Sabey Corporation is requesting a change in plan designation and zoning to Light Industrial, LI. The purposes and uses permitted in these zones are described in Tukwila's zoning ordinance: . ManufacturinglIndustrial Center Heavy (MICIH) District "...is intended to provide a major employment area containing heavy or bulk manufacturing and industrial uses, distributive and light manufacturing and industrial uses, and other uses that support those industries. This district's uses and standards are intended to enhance the redevelopment of the Duwarnish Corridor." The district allows a wide range of uses and building types: manufacturing, heavy-metal processing, rock crushing and asphalt or concrete manufacturing, offices associated with permitted uses, warehouse and distribution facilities, storage facilities, hotels and motels, and restaurants. . Light Industrial (LI) District"... is intended to provide areas characterized by distributive and light manufacturing uses, with supportive commercial and office uses." The district allows a wide range of uses and building types: manufacturing (similar to manufacturing permitted in MIC/H), many types of office, medical and dental laboratories and offices, retail sales, warehouse and distribution facilities, storage facilities, hotels and motels, and restaurants. Sabey Corporation is considering redeveloping the site for commercial and light-industrial uses. Table I shows Sabey Corporation's concept of the possible uses on the site. The majority of the uses would be office and retail, with a small amount of other commercial and light-industrial uses. Although the Sabey Corporation does not have definite plans for the components of the development, it hopes to develop a mixed-use center that provides opportunities for working, recreation ahd socialization, and shopping in the same area. The development is likely to be pedestrian-oriented and incorporate open space. The site is currently served by bus and SoundTransit may develop the proposed light rail and commuter train station at the Boeing Access Road. Plans to develop this station have been deferred by Sound Transit until financing is available for the station. Table 1. Conceptual development types on the Associated Grocers site Est. Size (Square feet) 700,000 550,000 100,000 80,000 60,000 1,490,000 Possible Use Office Retail Light Industrial Hotel Theatre Total Percent 47% 37% 7% 5% 4% 100% Source: Sabey Corporation model of possible uses Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 5 Previous studies documented regional economic trends in support of the proposed amendments. 1 A Johnson Gardner study made the following findings about regional economic trends: . The subject property has unique qualities that support the change in uses, including the site's size, visibility, multiple modes of access, nearby industries, and the potential for growth in King County. . Growth in manufacturing, particularly heavy-industrial activity, will be stagnant over the medium- and long-term periods in King County and the Puget Sound region. . The combination of increasing costs of industrial land and outflow of traditional heavy industry create disadvantages for future use of the subject property by a new manufacturer or other fIrm that needs traditional industrial space. . Forecasts and plans by the State of Washington, the Puget Sound Regional Council, and the Prosperity Partnership expect heavy industry to continue to be important to the regional economy but expect a long-term decline in heavy manufacturing and are planning to encourage growth in technical and scientific industries. . The current zoning of the property (MIC/H) creates barriers to redeveloping the subject property for uses compatible with the expected regional growth in high-tech, scientific, research, and commercial services industries. PURPOSEOFTHEMEMORANDUM This memorandum provides supporting documentation to Sabey Corporation's application for a Comprehensive Plan Amendment and zoning change on the subject property. It addresses specific questions pertaining to the potential impacts of a Comprehensive Plan Amendment and zoning change on the subject site. In short, the purpose of this memorandum is to describe local industrial, commercial, and retail land-use trends that affect future uses of the site, and how (and whether) the Comprehensive Plan Amendment would impact the city's planning efforts. The City of Tukwila is concerned about the impact of the proposed Comprehensive Plan Amendment on existing industrial land and existing and planned commercial uses within its city limits. The City is especially interested in the potential impacts of the proposed Comprehensive Plan Amendments on the Tukwila Manufacturing/Industrial Center (MIC) and the Tukwila Urban Center (TUC), as well as strategies to mitigate any potential impacts. Specifically, the City is concerned about: . How the proposed Comprehensive Plan Amendment may impact industrial land near the subject property in the MIC . Whether the proposed Comprehensive Plan Amendment may encourage other property owners to apply for conversion of industrial land to commercial land . Compatibility between the proposed uses on the subject property and uses on surrounding industrial lands I Johnson Gardner memorandum "Draft Economic and Market Trends Shaping Industrial Land Need in the Duwamish Corridor," May 10, 2007 Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 6 . How the potential commercial development on the subject site will effect other commercial uses in Tukwila ORGANIZATION OF THE MEMORANDUM The remainder of the memorandum is organized as follows: . Framework for evaluation summarizes the procedures and criteria for amending Tukwila's Comprehensive Plan and Zoning Code that are addressed in this memorandum. . Analysis provides answers for each of the questions presented in the Framework section. SCOPE OF THE EVALUATION Sabey Corporation has applied for a Comprehensive Plan Amendment on the subject property. Tukwila has procedures and criteria for amending its comprehensive plan and Zoning Code, which note that "The burden of proof to demonstrate that a change to the Comprehensive Plan or Zoning Code is warranted lies solely upon the proponent.,,2 An application to amend Tukwila's Comprehensive Plan must address the criteria specified by the City in its "Application for a Comprehensive Plan Amendment." This memorandum is not the Sabey Corporation's application, which is being submitted separately and addresses all of the criteria. Rather, this memorandum supports that application by addressing in more detail the following criteria for the Comprehensive Plan Amendment: . Explain why the proposed change is the best means for meeting identified public need and describe other options for meeting the public need. . Explain why the proposed change will result in a net benefit to the community or the type of benefit that can be expected. . Describe the anticipated impacts of the change, including the geographic area affected and the issues presented by the proposed change. . Explain why the current comprehensive plan or development regulations are defective or should not continue in effect. . Describe how the proposed amendment complies with applicable Countywide Planning Policies. . Describe what changes would be required in the Zoning Code. In addition to requesting a change in the Comprehensive Plan, Sabey Corporation will also need to request a change to Tukwila's Zoning Code. An application to amend Tukwila's Zoning Code must address criteria presented in the application for a Zoning Code Amendment. This memorandum addresses the following criteria for the Zoning Code Amendment: . Show that the proposed amendment to the zoning map is consistent with the goals, objectives, and policies of the comprehensive plan. 2 From the City of Tukwila "Comprehensive Plan Amendments" application. Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 7 . Show that the proposed amendment to the zoning map is consistent with the scope and purpose of this title and the description and purpose of the zone classification applied for. . Demonstrate that there are changed conditions since the previous zoning became effective to warrant the proposed amendment to the zoning map. . Describe how the proposed amendment to the zoning map will be in the interest of furthering public health, safety, comfort, convenience and general welfare, and will not adversely affect the surrounding neighborhood, nor be injurious to other properties in the vicinity in which the subject property is located. In meetings between staff at the Sabey Corporation and the City prior to the submission of the Sabey Corporation's application, City staff identified several concerns regarding the impacts of the proposed Comprehensive Plan Amendment. This memorandum addresses concerns the City raised about the proposed Comprehensive Plan Amendment. . What are the potential impacts of the proposed Comprehensive Plan Amendment on industrial land in the Manufacturing/Industrial Center? This section will address the affect that the proposed Comprehensive Plan Amendment may have on industrial land in the MIC, including compatibility issues and increases in pressure to convert land from industrial to commercial uses. It will discuss possible strategies for mitigating these impacts. . What are the potential impacts of the proposed Comprehensive Plan Amendment on uses in Tukwila's Urban Center? This section will address the impact of the proposed amendment and development on existing commercial and retail uses in Tukwila's Urban Center. It will discuss possible strategies for mitigating these impacts. The analysis section of this memorandum addresses these broad questions, and several related ones. ANAL YSIS ECO staff worked With City staff to understand the key issues and analysis required to support the Comprehensive Plan Amendment. This section provides analysis of the two broad questions posed above. The analysis is separated into two parts: impacts of the proposed Comprehensive Plan Amendment on industrial; and impacts of the proposed Comprehensive Plan Amendment on other commercial uses in Tukwila. POTENTIAL IMPACTS OF THE PROPOSED COMPREHENSIVE PLAN AMENDMENT ON INDUSTRIAL LAND IN THE MANUFACTURING/INDUSTRIAL CENTER The City of Tukwila is concerned about the potential impacts of the proposed Comprehensive Plan Amendment on industrial land in the City's Manufacturing/Industrial Center (MIC). The City's questions are: 1. Will the proposed Comprehensive Plan Amendment significantly impact future industrial development on parcels near the subject property in the MIC? Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 8 2. Will the proposed uses on the subject property be compatible with existing and expected industrial uses in the MIC? 3. Is granting the Comprehensive Plan Amendment likely to increase demand for conversion from industrial to commercial uses on areas adjacent to the subject property? 4. Does the proposed development negatively impact the City's policy to have adequate land for industrial growth? 5. How can the impacts of the Comprehensive Plan Amendment be mitigated? The following analysis addresses these questions. The conclusions at the end of this section provides answers to the questions. Industrial land availability in Tukwila Table 2 shows land uses in Tukwila by plan designation and zoning. The City has designated 1,436 acres-more than one-quarter of the City's land-for industrial uses; 1, 168-acres are in the MIC/H zone. An additional 753 acres (14% of the City's land) is in zones that allow a mixture of commercial and industrial uses, and 1, 144-acres (21 % of the City's land) are in commercial zones. The proposed Comprehensive Plan Amendment would change 64 acres of MIC/H land to LI. The City only has 20 acres currently in the LI zone. Table 2. Land by zoning district, gross acres, Tukwila, 2007 Zone Industrial Manufacturing Industrial Center/Heavy Industrial (MIC/H) Heavy Industrial (HI) Manufacturing Industrial Center/Light Industrial (MIC/L) Light Industrial (L1) Mixed Commercial and Industrial Commercial Light Industrial (CILI) Tukwila Valley South (TVS) Commercial Tukwila Urban Center (TUC) Regional Commercial (RC) Regional Commercial Mixed Use (RCM) Office (0) Neighborhood Commercial Center (NCC) Mixed Use Office (MOU) Residential Commercial Center (RCC) Residential Low Density Residential (LDR) High Density Residential (HDR) Medium Density Residential (MDR) Total Acres 1,436 1,168 144 105 20 753 472 281 1,144 853 80 77 53 52 21 8 2,049 1,797 161 91 5,383 Percent 27% 22% 3% 2% 0% 14% 9% 5% 21 % 16% 1% 1% 1% 1% 0% 0% 38% 33% 3% 2% 100% Source: City of Tukwila, 2007 Sabey Corporation Comprehensive Plan Amendment Table 3 shows the distribution of land uses within the Manufacturing/Industrial Center in Tukwila in 2005, the City's key industrial zone. The majority of the land (913 acres) is developed. Other uses include the King County International Airport (175 acres) and vacant land (134 acres). The subject property is 64 acres and represents about 5% of the land within the MIC. Table 3. Land uses in the Manufacturing and Industrial Center, Tukwila, 2005 Acres Percent Developed Land 913 72% Airport 175 14% Vacant Land 134 11% Water 34 3% Right -of -Way 16 1% Total 1,272 100% Source: Tukwila Comprehensive Plan, 2005 and Tukwila City staff, 2007 According to Tukwila City staff, vacant land is defined a s land having an improvement value of less than $5,000. Table 4 shows the distribution of employment for firms located in the Manufacturing/Industrial Center in 2005. About 85% of the more than 18,000 employees in the Center were employed by firms needing industrial land, including processing firms (including manufacturing) and wholesale firms. Table 4. Employment in the Manufacturing and Industrial Center, Tukwila, 2005 Employees Percent Processing 13,845 76% Professional Office 1,887 10% Wholesale 1,644 9% Other 453 2% Retail 362 2% Total 18,191 100% Source: Tukwila Comprehensive Plan, 2005 August 9, 2007 Page 9 In 2007, Associated Grocers employed about 750 people at the subject property, approximately 4% of the employment in the Center. About 400 of the jobs (53 of the jobs were in distribution and 350 of the jobs (47 were office related. These categories of employment do not precisely match the categories presented in Table 4. The distribution employees are probably covered under "Wholesale" in Table 4 and the office- related employees are probably accounted for in "Professional Office in Table 4. The data presented in this section suggest that the proposed change in plan designation on the subject property would affect about 6% of the land area and about 4% of the employment in the MIC. The amount of land zoned in the City Light Industrial (LI) would increase from 20 -acres to 84- acres. Granting the Comprehensive Plan Amendment would result in a change in the composition of economic activity on the site, possibly increasing economic activity on the subject property. The Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 10 existing use of the subject property is light industrial and commercial in nature, and has no heavy industrial component. Sabey Corporation is proposing to increase the share of office and retail jobs and decrease the share of light industrial employment. Assuming the subject site is developed as proposed by Sabey Corporation in Table 1, the subject property may have 2,500 or more employees, more than three-quarters of which would be office jobs. 3 Changes in employment and demand for industrial land A key question is how the Comprehensive Plan Amendment will affect employment and demand for industrial land. External but important to this question are regional employment trends that will shape demand for land and built space in the MICIH zone. The Johnson Gardner memorandum documents the projected change in payroll employment in King County. It states that the Washington Employment Security Department projected that the sectors that will add the most employment in King County over the next ten-years are industries that traditionally use office space. These industries are expected to account for nearly 69% of new job growth in the County. Professional and Business Services are expected to lead job growth and Manufacturing fIrms are expected to account for only 2% of new jobs. Table 5 shows the Washington Employment Security Department projection of job growth in Manufacturing industries for the 2004 to 2014 period. The industries that are projected to add the most jobs are Aerospace (3,000 new jobs), Nonmetallic Mineral Products (1,300 new jobs), and Food Manufacturing (1,200 new jobs). The industries that are projected to loose the most jobs are Printing and Related Support (-700 jobs) and Paper and Paper Products (-200 jobs). 3 The estimate of 2,500 employees is based on the amount of space by type that the Sabey Corporation is considering building on the subject property (shown Table 1) and the employment densities presented on page 45 of the Puget Sound Regional Council's document "Industrial Land Supply and Demand in the Central Puget Sound Region," Sabey Corporation Comprehensive Plan Amendment August9,2007 Page 11 Table 5. Manufacturing employment forecast, King County, 2004-2014 Estimated Employment Change 2004 to 2014 Industry 2004 2009 2014 Number Percent AAGR Manufacturing 103,500 115,000 110,400 6,900 7% 0.6% Durable Goods 76,700 87,600 83,200 6,500 8% 0.8% Aerospace 37,300 45,000 40,300 3,000 8% 0.8% Nonmetallic Mineral Products 3,100 4,000 4,400 1,300 42% 3.6% Wood Products 1,300 1,800 1,800 500 38% 3.3% Machinery 5,200 5,700 5,700 500 10% 0.9% Fabricated Metal Products 6,100 6,700 6,500 400 7% 0.6% Electrical Equipment and Appliances 1,700 1,900 2,000 300 18% 1.6% Misc. Manufacturing 5,500 5,500 5,800 300 5% 0.5% Computer and Electronic Products 9,100 9,400 9,300 200 2% 0.2% Furniture & Related Prod. 2,600 2,700 2,800 200 8% 0.7% Primary Metals 900 900 800 -100 -11% -1.2% Other Transportation Equipment 3,900 4,000 3,800 -100 -3% -0.3% Non Durable Goods 26,800 27,400 27,200 400 1% 0.1% Food Manufacturing 12,200 13,000 13,400 1,200 10% 0.9% Chemicals 1,800 2,000 2,000 200 11% 1.1% Petroleum & Coal Prod. 200 200 200 0 0% 0.0% Plastics & Rubber Prod. 3,100 3,100 3,100 0 0% 0.0% Textile & Apparel 2,200 2,400 2,100 -100 -5% -0.5% Paper & Paper Prod. 2,000 1,800 1,800 -200 -10% -1.0% Printing & Related Support 5,300 4,900 4,600 -700 -13% -1.4% Source: Washington Employment Security Department The Puget Sound Regional Council (PSRC) projects employment for small areas in the Puget Sound Region. Table 6 shows the PSRC's long-term forecast for employment in the Tukwila Forecast Analysis Zones (FAZ) for the 2000 to 2040 period. The PSRC projects that the Tukwila FAZs will add about 27,500 jobs over the 40-year period. The forecast shows that the majority of new jobs will be in Services, including Finance and Insurance and Real Estate. Employment in Manufacturing is forecast to decline by more than 3,600 jobs. Employment in Wholesale Trade, Transportation Services, Communications, and Utilities (WTCU) is forecast to grow by more than 1,800 jobs. Some or most of the employment growth in WTCU sectors will choose to locate on industrial land. Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 12 Table 6. Employment forecast, Tukwila FAZs, 2000-2040 2000 2040 Change Number Percent Total MFG WTCU Retail FIRES Gov/ED Emp. 11,369 6,302 11,226 13,113 2,278 44,288 7,761 8,147 12,460 41,267 2,199 71,834 -3,608 1,845 1,234 28,154 -32% 29% 11% 215% -79 27,546 -3% 62% Source: Puget Sound Regional Council Notes: The PSRC uses Census tracts as the geographic basis of the Forecast Analysis Zones (FAZ). The Census tracts do not generally follow political boundaries. As a result, the forecast in Table 6 may include areas outside of Tukwila and/or may exclude areas inside the city limits. Table 6 includes the South Tukwila and North TukwilalRiverton FAZs MFG is manufacturing WTCU includes wholesale trade, transportation services, communications, and utilities FIRES includes finance and insurance, real estate, and services Gov/ED includes govemment and education The predicted employment shifts are already beginning to take place. According to Tukwila's Comprehensive Plan, Boeing controls 750 acres within the ManufacturingJIndustrial Center. With the move of their corporate headquarters out the region, Boeing is in the process of converting its facilities into an aerospace research and development engineering campus, including office, laboratory, and manufacturing space. According to staff with the City of Tukwila, Boeing's current activities within the MIC are predominantly light industrial in nature, including manufacturing airplane components from carbon fiber, assembling plane parts that were manufactured elsewhere, and software development for research and development. Boeing is likely to have low to moderate growth on its land within the MIC. The PSRC employment forecasts suggest that employment in manufacturing in Tukwila will decrease throughout the 2000-2040 planning horizon. The MIC/H zone primarily targets manufacturing. Declining manufacturing employment strongly suggests declining demand for land and built space. The proposed Comprehensive Plan Amendment recognizes these trends and would provide land for the office and retail sectors where PSRC projects most of the employment growth will occur. Potential impacts of the Comprehensive Plan Amendment on land near the subject property in the MIC The subject property is located on the eastern edge of the MIC. It is bounded by East Marginal Way S and the Duwamish River on the west, Norfolk Road and Boeing Field on the north, Airport Way on the east, and the Boeing Access Road to the south. The property is located near the southern edge of properties zoned MIC/H, and the freeway borders the property to the east. The only parcel that the subject site is directly adjacent to is a credit union, to the north. Other surrounding uses include Boeing facilities, a restaurant, and the Museum of Flight. Existing uses near the subject property are light industrial and commercial in nature, rather than heavy industrial. Thus, several conditions suggest that the change in use at the subject property would not necessarily cause other properties in the MIC area to become less desirable for the kinds of uses allowed in the MIC: . The subject property is at the edge of the MIC, not in the center Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 13 . The subject property is bounded mainly by roads, which reduce direct impacts on surrounding property. Where it touches other parcels, the uses are already commercial (a credit union, a restaurant, and the Museum of Flight), not industrial. . Independent of the MIC/H designation, the de facto land uses in the MIC/H area would be better characterized as Light Industrial, and would not conflict with LI uses. The majority of the current uses on land within the MIC can be described as light industrial, as defined in the Tukwila Comprehensive Plan. There is comparatively little heavy industrial activity on land in the MIC in Tukwila. The closest large-scale heavy industrial activity is Delta Marine, a ship building firm located along the west side of Duwamish River outside of Tukwila. . Boeing controls most of the land in the MIC/H (approximately 750 acres) and, thus, largely has control of its own destiny. Boeing's use of its facilities within the MIC have changed substantially over the past fifteen years. It has already shifted most of its properties to the Light Industrial end of allowable uses in the MIC/H. It may choose to continue that trend, but it is unlikely to be forced in that direction by a rezoning of the subject property to LI. Its current uses are not only compatible with but may be possibly enhanced by the type of development proposed on the subject site. The proposed Comprehensive Plan Amendment for the subject property is a symptom of the increasing importance of services that require office space, such as Professional and Technical Services, in the regional and local economy. Granting the proposed Comprehensive Plan Amendment on the subject property will not change long-term decline in the demand for heavy- industrial uses, employment, and land. Denying the proposed Comprehensive Plan Amendment, however, could result in the long-term underutilization or even disuse (if Associated Grocers relocates) of the subject property. A key concern of the City is whether this Comprehensive Plan Amendment will lead to other proposed Comprehensive Plan Amendments in the MIC/H resulting in a "domino" effect in the area. Our evaluation is that the Comprehensive Plan Amendment on the subject site will not itself, result in such an effect. First, the site is relatively isolated from other sites in the area. Second, the development concept would support many existing uses in the area. Third, while manufacturing employment is projected to decline, there will still be a projected 7,800 manufacturing jobs in the Tukwila area in 2040. However, if the PSRC's employment forecast for the Tukwila FAZs is correct, the trends towards decreasing manufacturing employment may result in lower demand for industrial land and an increase in the pressure to convert heavy industrial land to light industrial or commercial uses. According to the PRCS's forecast Tukwila will experience changes in the composition of its workforce, most notably a decrease in manufacturing employment. The result of this change may be a decrease in the demand for industrial land, especially heavy industrial land. Change of employment and land uses in the MIC The shift from heavy industrial uses to light industrial and commercial uses in the portion of the MIC near the subject site, including Boeing's land, has already occurred without Comprehensive Plan Amendments. The regional employment trends discussed above and in the Johnson Gardner study describe trends away from heavy industrial employment in the region and in Tukwila. The types of firms that are most likely to be attracted to the region require commercial office or Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 14 campus-style development, including high-tech, scientific, research, and other "creative" industries. Aside from the subject property, the non-Boeing land that is most likely to be under pressure to convert from heavy industrial to commercial uses are the parcels south of the subject site, east of the Duwamish River between Tukwila International Boulevard, East Marginal Way South, and Interstate 5. The existing uses on these sites are largely commercial in nature, including office buildings and a hotel. It may be that allowing the subject property to convert from a designation of heavy industrial to light industrial will increase pressure on these parcels to convert to commercial uses. On the other hand, some of the existing uses are commercial. Allowing the conversion of the subject property may create an opportunity to develop a commercial and light industrial gateway into Tukwila, encouraging redevelopment of existing commercial and industrial uses. Mitigating the impacts of the Comprehensive Plan Amendment One of the City's concerns is the conversion of industrial land to commercial uses. We have noted that broader forces than local zoning are driving such conversions. The state projects that future employment growth in Manufacturing--especially heavy manufacturing-will be stagnant and that the majority of employment growth will be in Services--especially Professional and Business Services. The PSRC's forecast of employment in Tukwila shows that these trends are expected to impact Tukwila. Thus, two reinforcing economic factors are reinforcing changes in local land markets: . Manufacturing is growing slowly if at all. And the growth that is occurring is looking more and more like the kinds of activities that would be called Light Industrial: flex- space in business parks that mix office and manufacturing / assembly uses. . Professional services are growing rapidly. Those uses need office space. Office space can be stacked, so it can have more employment density. It does not conflict with surrounding amenity (like industrial uses can): it seeks surrounding amenity (especially professional and retail services). It can afford to pay two, three, or four times as much for land as manufacturing and warehousing, which are land intensive. The result is that in metropolitan areas around the country, former industrial land near rejuvenating downtowns is converting to commercial uses. It is not that manufacturing would not like to have that land-it would. Rather, it is that it cannot afford to pay the prices that commercial uses can pay and still be profitable. Manufacturing moves farther out, abetted by cheaper land that is still well served by highways. If future Comprehensive Plan Amendments are a concern to the City, the City can slow the conversion of land in the MIC to light industrial and commercial uses by identifying the key industrial sites and adopting more aggressive policies to preserve these sites. CONCLUSION: IMPACTS TO INDUSTRIAL LAND 1. Will the proposed Comprehensive Plan Amendment significantly impact future industrial development on parcels near the subject property in the MIC? No. The Sabey Corporation Comprehensive Plan Amendment August9,2007 Page 15 majority of land near the subject property is already being used for commercial or light industrial uses. 2. Will the proposed uses on the subject property be compatible with existing and expected industrial uses in the MIC? Yes. Regional trends and local forecasts indicate that manufacturing employment is growing slowly or decreasing. Official regional, long- term employment forecasts suggest the majority of employment that Tukwila can expect in the future is Professional and Business Services and other types of employment that use office space; Boeing Field and Boeing properties separate the subject property from the heaviest industrial uses in the MIC. 3. Is granting the Comprehensive Plan Amendment likely to increase demand for conversion from industrial to commercial uses on areas adjacent to the subject property? Maybe, especially south of the subject site. That land is currently being used, however, for commercial and light industrial purposes. The pressure for conversion of this land to commercial uses is more likely to be affected by regional land prices for industrial and employment trends than changes to the subject property. 4. Does the proposed development negatively impact the City's policy to have adequate land for industrial growth? Yes and no. Changing the zoning on the proposed development clearly reduces the amount of landfor some industrial uses (the property is roughly 4% of the industrial land in Tukwila), and allows the option to develop more of the land for office and retail uses. But the market trends have been clear for a while: land on and around the subject property is not being used much by heavy industry, and the subject property is now used for light industrial and commercial purposes. There is a reasonable, but not definitive, argument that the change in designation will have little impact on the long-run viability of industrial uses in Tukwila given market forces and the way the MIC/H zone is defined and implemented. POTENTIAL IMPACTS OF THE PROPOSED COMPREHENSIVE PLAN AMENDMENT ON USES IN TUKWILA'S URBAN CENTER The City of Tukwila is concerned about the potential impacts of the proposed Comprehensive Plan Amendment on existing commercial uses in the City's Urban Center. The City staff asked ECO to address the following questions: 1. How will the uses on the subject site be similar and different from the uses in the Tukwila Urban Center? 2. To what extent will the commercial and retail uses in the proposed development compete with commercial and retail uses in the Tukwila Urban Center and other developments within the City? 3. What is the market area for the proposed development compared to the Tukwila Urban Center. Proposed uses compared to other commercial uses in Tukwila The Comprehensive Plan Amendment proposes a mix of uses for the subject property: . 700,000 square feet of office development Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 16 . 550,000 square feet of retail development, plus an 80,000 square foot hotel and a 60,000 square foot theater . 100,000 square feet of light-industrial development These uses amount to approximately 1.49 million square feet of built space on the site. A key question is: To what extent will the conceptual mix of uses compete with other commercial centers in Tukwila? In other words, the City's concern is whether the proposed Comprehensive Plan Amendment would draw demand for development in other areas of Tukwila to the subject property. Such an outcome could be inconsistent with several of the City's ongoing planning efforts. Tukwila's Urban Center has more than 850 acres. Some of the development efforts going on in Tukwila's Urban Center include: . The Southcenter Mall, which has 1.3 million square feet of occupied retail space and is completing a 400,000 square foot addition, which is 95% leased. In addition, the former Mervyn's site is being redeveloped, adding 50,000 square feet to create a site with 100,000 square feet of retail space. Southcenter Mall is a regional retail center that attracts shoppers from around the region and as far away as Alaska. . The South Center Square, which is a new retail development south of the Southcenter Mall with big box development and smaller stores. Its 200,000 square feet of retail space is 90% leased. South Center Square will provide additional regional draw that complements the existing retail development at Southcenter Mall. . Residential development in Tukwila Urban Center, which will include high-density, multi-family residential developments of up to five stories over ground floor retail on the eastern edge of the Urban Center. Three-hundred condominiums are already being developed. The residential development will change the uses in Tukwila's Urban Center from an entirely retail and commercial area to more of a mixed-use area. Table 7 presents an estimate of need for commercial and industrial built space based on the PRCS's forecast for employment in the Tukwila area for 2000 to 2040.4 Table 7 shows that the Tukwila area will need the most built space (9 million square feet) for Finance and Insurance, Real Estate, and other Services. Employment in these sectors requires office space. Tukwila will have a need for about 2.2 million square feet of additional retail space. As a regional center for retail, Tukwila is likely to have additional demand for retail space because people from the Seattle region (and further) come to Tukwila to shop. Tukwila is likely to have demand for about 1.6 million square feet of built space for the Warehousing, Transportation, Communications, and Utilities sectors. These sectors typically require industrial land. Table 7 shows the demand for built space for Manufacturing decreasing by about 2.1 million square feet and Government and Education decreasing slightly. 4 The estimate is based the employment densities presented on page 45 of the Puget Sound Regional Council's document "Industrial Land Supply and Demand in the Central Puget Sound Region." The estimates for need for built space were developed by multiplying the change in employment by the number of square feet needed per employee by each type of employment. Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 17 Table 7. Estimated need for commercial and industrial built space to accommodate new employment, Tukwila area, 2000 to 2040 Type of employment FIRES Retail WTCU Gov/Ed Manufacturing Total Needed space (square feet) 9,150,050 2,149,628 1,610,685 (25,675) (2,117,896) 14,441,512 Source: PSRC Employment Forecast, 2000 to 2040; Metro "puget Sound Regional Council's document "Industrial Land Supply and Demand in the Central puget Sound Region"; ECONorthwest Comparison of the market area of the proposed use and other commercial development A "primary market area" is generally considered the area in which most of the demand (typically around 70%) for a product will originate. The extent of a market area for retail businesses depends on the products or services they offer and the location of competing businesses. People will not typically drive past one convenience store to get to a similar store in a different area, but they will travel farther for a special service or niche product that cannot be easily obtained elsewhere. Thus, the primary market area for a convenience store is the surrounding neighborhood, while the primary market area for a specialty retailer can extend for miles and could include the entire metropolitan Seattle region. In a downtown area it is common to see retail businesses that sell a wide variety of products and services that have local or regional market areas, depending on the type of product sold and the location and quality of competitive businesses offering the same product. Tukwila already understands the regional nature of its retail market area: Tukwila is a retail destination for much of the Seattle metropolitan area, due to the concentration of retail in Southern Tukwila, especially Westfield's Southcenter Mall, which is the hrrgest indoor mall in Washington State and attracts over 11 million visitors each year. The market area includes not only the residents of Tukwila, therefore, but also residents of the Seattle metropolitan area and beyond. The question for the City of Tukwila is how having a secondary retail location north of the Southcenter area would compete with other developments within the City. This section addresses that question. In Tukwila, the subject property would compete primarily with the Southcenter Mall and South Center Square. Regionally, the site would also compete with other commercial areas in the Seattle area that are either in the planning stages or have already developed. Because Tukwila has much faster north-south traffic flows than east-west traffic flows, the area of competition extends farther to the north and south than it does to the east and west. Areas of potential competition include: Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 18 . The Landing (2 miles from Tukwila). The Landing is a mixed-use development under development in Renton, south of Lake Washington. When completed in 2008, The Landing will include about 600,000 square feet of retail space and 990 residential units. . Kent Station (6 miles from Tukwila). Kent Station, developed in 2005-2006, includes 470,000 square feet of office, retail, entertainment, and education space and a 30,000 square foot civic plaza. . Factoria Mall (8 miles from Tukwila). Factoria Mall, approximately 510,000 square feet of retail space, is planning the Factoria Town Square addition to add 685 housing units and 151,000 square feet of retail space. . Downtown Seattle (10 miles from Tukwila). The downtown has extensive office and retail space including City Centre, Pacific Place, and Westlake Center. . Bellevue Square (14 miles from Tukwila). The Bellevue Square Mall is upgrading to include 2,500,000 square feet of hotel, office, and retail space; it currently is 1,300,000 square feet. The Bellevue is a 130,000 square foot high-end retail development currently being constructed next door. . Bellevue Place (14 miles from Tukwila). Bellevue Place has 500,000 square feet of office, retail, restaurant, and hotel space, and is currently constructing a 351-room addition to the hotel. . Lincoln Square (14 miles from Tukwila). Lincoln Square is a 1.4 million square foot office, retail (310,000 square feet), hotel, and 148-room residential tower development currently expanding to include a 525,000 square foot office tower to house the corporate headquarters of Eddie Bower. . The Bravern (14 miles from Tukwila). The Bravem is a 1,600,000 square foot development in Bellevue that will include retail, office, and condominiums, scheduled to open in 2009. . Bellevue Crossroads (15 miles from Tukwila). Bellevue Crossroads is a 550,000 square foot retail development in East Bellevue. It is likely that the subject property will attract a market primarily made up of light industrial and office employees, rather than the larger metropolitan market captured by the Southcenter retail cluster. ECONorthwest's report "Tukwila Urban Center Market Analysis" (2002) forecast demand for built space in Tukwila's Urban Center to 2020. The report focused on demand for built space in Tukwila's Urban Center, not the entire City of Tukwila. The report forecast the following demand for the types of space: . Retail. The report forecast demand for between 1.5 million square feet to 3.8 million square feet of additional retail in Tukwila by 2020. The report said that demand for retail space in Tukwila would depend on three future conditions: (1) population in the retail market area, (2) consumer spending trends, and (3) the degree to which the Tukwila Urban Center maintains its market share of regional retail demand. The report said that regional competition could result in a decrease in demand for retail space in the Tukwila Urban Center. Sabey Corporation Comprehensive Plan Amendment August 9, 2007 Page 19 . Office. The report forecast demand for about 1 million square feet of office space in Tukwila's Urban Center by 2020. At the time the report was written, the central Puget Sound market area had suffered setbacks in demand for office space.s . Light Industrial and Warehouse. The report forecast need for approximately 600,000 square feet of new light industrial and warehouse space in Tukwila to 2020. This estimate is dependent on the availability of light industrial land and the extent to which higher- value retail uses compete for available land in the Urban Center. Since the completion of this report in 2002, Tukwila and surrounding cities have experienced retail and commercial development, as well as substantial residential development. Tukwila's Urban Center has continued to be a regional retail draw because (1) the economy has been relatively good, and (2) property owners and developers, such as Westfield, have invested in new development in the Urban Center. Tukwila's Urban Center is still among the strongest regional retail centers but that other retail developments (Renton, Seattle, Bellevue, and elsewhere) keep adding competing retail. Overall, retail development on the subject property and other retail development in progress in Tukwila will almost certainly increase retail sales in Tukwila as a whole. How that increase gets distributed within Tukwila's subareas is complex. In theory, changes in retail activity in Tukwila could be explained through competition and market capacity, which might show economic activity in Tukwila's Urban Center decreasing, or through market synergies and complements, which might show economic activity in Tukwila's Urban Center increasing. Whether retail sales in Tukwila's Urban Center will be the same, greater, or less than they would have been in the absence of Tukwila South or the development of the subject property is a question beyond the scope of this analysis. Notwithstanding these caveats, the type and scope of retail development at the subject property will certainly not be the cause of a collapse at Tukwila Urban Center, but it will probably compete with Tukwila's Urban Center for some business. Role of the proposed development in the community The Associated Grocers site will playa very different role in the community than does the Southcenterl Tukwila Urban Center area. The Southcenter area has been nationally marketed as a retail destination; it receives over 11 million visitors every year. It is located at a highly- trafficked interstate intersection, and is near to the Sea- Tac International Airport. Southcenter is known for its shopping, restaurants, and is beginning to develop nearby high-density multi- family residential development as well. The proposed zone change would result in intensification of employment on the subject site and creation of an employment center, and to a lesser extent, a retail center. The majority of the Associated Grocers site is proposed office and light industrial space, and the retail and hotel space will complement that development, but not create a new retail destination for the larger metropolitan market that comes to Southcenter. Because of the scale of the proposed retail uses, 5 Since the completion of this report, demand for office space in the Puget Sound Region has increased. According to C.B. Richard Ellis, the Regional office vacancy rate in second quarter 2007 was 10.5%, down from approximately 17% in second quarter 2003. The second quarter 2007 vacancy rate in downtown Seattle was 8.6% and 5.1 % in Bellevue's central business district. Sabey Corporation Compre.hensive Plan Amendment August 9, 2007 Page 20 the primary market area would be much smaller than those of Southcenter and the Tukwila Urban Center. Given the amount of employment in the area, demand would primarily come from workers in the district. The Associated Grocers site is likely to form a type of transition or buffer zone between the heavy industrial land uses in northern Tukwila and the residential and retail areas in central and southern Tukwila. The light industrial and office uses can buffer the existing residential area from industrial uses, and the commercial and entertainment uses can attract residents on evenings and weekends to an area of the city that is primarily occupied during daytime hours. The commercial and entertainment uses will act as a gateway to the residential part of Tukwila, but the development includes no residential units. CONCLUSION: IMPACTS TO THE URBAN CENTER 1. How will the uses on the subject site be similar and different from the uses in the Tukwila Urban Center? The uses in the Tukwila Urban Center include a regional mall, high-density residential development, and a large mixed-use development. The uses on the subject site will be a smaller-scale mixture of retail, commercial, and light industrial uses. Most of the uses will primarily serve people working on or near the site, visitors wanting to stay near Sea-Tac International Airport, and people living relatively near the subject site. 2. To what extent will the commercial and retail uses in the proposed development compete with commercial and retail uses in the Tukwila Urban Center and other developments within the City? There is no question that the proposed uses will compete with development in other areas of Tukwila: that is the nature of all types of development, and especially retail. The broader question is whether enough demand exists to support all of the existing and proposed developments in Tukwila, including development on the subject property. PSRC forecasts strong employment growth in Tukwila for sectors that use office space. Population growth, coupled with increases in disposable income, will create demand for additional retail space. The retail development at the subject property is one-quarter of the size of the development proposed in Tukwila South, which means that it will compete less both in scale, type, and proximity with the Tukwila Urban Center. 3. What is the market area for the proposed development compared to the Tukwila Urban Center? The development concept includes two primary uses: employment (office and some industrial) and retail. The employment uses will draw workers from throughout the region. The retail uses will draw from a smaller market area. Since the mix of retailers is not yet specified, we cannot say definitively exactly what the market area will be. STATE OF WASHINGTON DEVELOPMENT DEPARTMENT OF ECOLOGY Northwest Regional Office 0 3190 160th Avenue SE 0 Bellevue, Washington 98008 -5452 e (425) 649 -7000 July 26, 2007 Rebecca Fox City of Tukwila 6300 Southcenter Blvd. Tukwila, WA 98188 Dear Rebecca, As per your request, I have enclosed a copy of Ecology's Administrative Requirements for Recipients of Grants and Loans, 2005, also known as the "Yellow Book I hope that you are able to utilize this to answer any eligibility questions you may have as you continue through the application process. Also, remember that I am always available to assist you with any questions or concerns you may have while filling out your application. You may contact me by phone at (425) 649 -7056 or by email at chro461(a ecv.wa. aov. Sincerel Enclosure Christopher M. Pierc( Environmental Planner Grant Officer Solid Waste and Financial Assistance Program RECEIVED Attachment E Marginal Way 8.8.2007 FULLER SEARS 41(Well-4 5.4p.r CONCEPTUAL SITE PLAN SOUTH SEATTLE SITE altOtitr ;;;IRL&I "1,0Villlsyorno, ,V.P001 01j r oI 44Eitierdr. SECONDARY CIRCULATION SABEY CORP. PRIMARY CIRCULATION PERIMETER ROADWAYS MIXED USE SCHEME* OFFICE 700,000 S.F. RETAIL 550,000 S.F. HOTEL 80,000 S.F. THEATER 60,000 S.F. LT. INDUSTRIAL 100,000 S.F. THIS IS A CONCEPTUAL SITE PLAN FOR A NON-PROJECT ACTION. INTERNAL CIRCULATION, BUILDING SIZE AND LOCATIONS, AND TYPE AND SQUARE FOOTAGE OF PROPOSED USES MAY VARY FROM THOSE SHOWN WITH DEVELOPMENT AND REVIEW OF PROJECT-LEVEL PLANS. City of Tukwila Steven M. Mullet, Mayor Department of Community Development Steve Lancaster, Director INFORMATION MEMO To: From: Date: Subject: Community Affairs and Parks Committee Members f Jack Pace, Acting Director, Department of Community Developmen August 15,2007 Renew Consultant Contract for Shoreline Master Program Update ISSUE Approve the continued use ofESA Adolfson consulting firm to assist the Department of Community Development with the update of the Tukwila Shoreline Master Program (SMP). BACKGROUND The City applied for and received a 2005-2007 Grant of $65,000 from the Washington State Department of Ecology to assist in the update of the City's Shoreline Master Program. Ofthe initial grant award, almost $48,000 was used for consultant services, with the remainder used to support in-house staff. The City has been awarded an additional $38,000 in grant funds for 2007-2008 to assist in the completion of the SMP, which is now due to Ecology by June 30, 2008. DISCUSSION ESA Adolfson was hired in 2006 to assist DCD staff with the update of its Shoreline Management Program (SMP). The consultants have provided a number of products, as specified in the first contract, that are part of the SMP update - Inventory and Characterization Report, Restoration Plan, and a Cumulative Impacts Analysis. They also were actively involved in the preparation of a Staff Draft Shoreline Management Program, which was submitted to the Department of Ecology on June 29, 2007, as required by the City's contract agreement with Ecology. The City has received additional funding of$38,000 from Ecology to complete the update of its SMP. The majority of the additional funding, $31,000, with a contingency of $4,000, has been allocated for consultant services. This will allow ESA Adolfson to attend public meetings, Planning Commission and City Council meetings to provide technical support to staff as we move into the public review phase of the project. Some of the monies will be used for ESA Adolfson to assist staff with any needed revisions to the Staff Draft SMP once comments are received from Ecology. CL Page 1 of2 08!14120071:l5:00PM q:\2005 Shoreline Grant\ Consultant Contract\2007-2008 Contract\8-28-07 CAP Memo.doc 6300 Southcenter Boulevard, Suite #100 . Tukwila, Washington 98188 · Phone: 206-431-3670 · Fax: 206-431-3665 Community Affairs and Parks Committee Consultant for Shoreline Master Program Update August 15,2007 RECOMMENDATION Forward the request for consultant approval to the September 10,2007 Committee of the Whole meeting for its review and approval for placement on the Consent Agenda for the City Council meeting on September 17, 2007. Attachment: 2007-2008 ESA Adolfson Contract CL Page 2 of2 q:\2005 Shoreline Grant\Consultant Contract\2007-2008 Contract\8-28-07 CAP Memo.doc 08/14/2007 1: 15:00 PM Contract No. CONTRACT FOR SERVICES This Agreement is entered into by and between the City of Tukwila, Washington, a noncharter optional municipal code city hereinafter referred to as lithe City", and ESA Adolfson, hereinafter referred to as "the Contractor", whose principal office is located at 5309 Shilshole Ave. N.W.. Suite 200. Seattle. WA 98107. WHEREAS, the City has determined the need to have certain services performed for its citizens but does not have the personnel or expertise to perform such services; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be Performed bv Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all Federal, State, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference. The total amount to be paid shall not exceed $35.000.00. 3. Contractor Bude:et. The Contractor shall apply the funds received under this Agreement within the maximum limits set forth in this Agreement. The Contractor shall request prior approval from the City whenever the Contractor desires to amend its budget in any way. 4. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing July L 2007 .and ending June 30. 2008 unless sooner terminated under the provisions hereinafter specified. 5. Independent Contractor. Contractor and City agree that Contractor is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. 6. Indemnification. The Contractor shall indemnify, defend and hold harmless the City, its officers, agents and employees, from and against any and all claims, losses or liability, including attomey's fees, arising from injury or death to persons or damage to property occasioned by any act, omission or failure of the Contractor, its officers, agents and employees, in performing the work required by this Agreement. With respect to the performance of this Agreement and as to claims against the City, its officers, agents and employees, the Contractor expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the obligation to indemnify, defend and hold harmless provided for in this paragraph extends to any claim. brought by or on behalf of any employee of the Contractor. This waiver is mutually negotiated by the parties. This paragraph shall not apply to any damage resulting from the sole negligence of the City, its agents and employees. To the extent any of the damages referenced by this paragraph were caused by or resulted from the concurrent negligence of the City, its agents or employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of the Contractor, its officers, agents, and employees. 7. Record Keepine: and Reportine:. A. The Contractor shall maintain accouilts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. CL Page I of2 Q;\2005-2006 Shoreline Grant\Con,ultant Contract\Adolfson-Contract2.doc 0810212007 12:51:00 PM Contract for Services Shoreline Master Program Update B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 8. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. 9. Termination. This Agreement may at any time be terminated by the City giving to the Contractor thirty (30) days written notice of the City's intention to terminate the same. Failure to provide products on schedule may result in contract termination. 10. Discrimination Prohibited. The Contractor shall not discriminate against any employee, applicant for employment, or any person seeking the services of the Contractor to be provided under this Agreement on the basis of race, color, religion, creed, sex, age, national origin, marital status or presence of any sensory, mental or physical handicap. 11. AssiP11ment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the \vritten consent of the City. 12. Entire A2l"eement. This Agreement contains the entire Agreement between the parties hereto and no other Agreements, oral or othenvise, regarding the subject matter of this Agreement, shall be deemed to exist or bind any of the parties hereto. Either party may request changes in the agreement. Proposed changes which are mutually agreed upon shall be incorporated by written amendments to this Agreement. 13. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City ofTukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below. 14. Applicable Law; Venue; Attornev's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of \Vashington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this day of ,20_ CONTRACTOR: F5.J-II2JJCFS cJA:J BY'~~~ Title: fiJ,,:-U my- &~~ Printed Name: /..'/oyd Sf:./~I1~r-' I CITY OF TUKWILA Mayor, Steven M. Mullet ATTEST/AUTHENTICATED: Jane E. Cantu, CMC, City Clerk ADDRESS: s.3 0 ? :;h, l sk.~ /!at IJ/U :;~ C;;~ t/Z/4- ~08 0/ J>/d 7 APPROVED AS TO FORM: Office of the City Attorney BY: CL Page 2 of2 Q;\2005-2006 Shoreline Granl\Consultanl Contract\Adolfson Contract2.doc 08/0212007 12:5 \:00 PM EXHIBIT A - SCOPE OF WORK ESA ADOlFSON City of Tukwila SHORELINE MASTER PROGRAM UPDATE The following tasks are numbered according to the City's Scope of Work for the Shoreline Master Program Update, as defined by the Department of Ecology Grant Contract (SMA Grant Agreement No.G0600234). This scope of work includes all tasks specified in the grant with anticipated consultant involvement. The total amount of the work shall not exceed $35,000 unless the Contract and Scope of Work are amended. Task 3: Citizen Involvement I Public Process At the direction of City staff, support City staff in preparation for and presentation of materials to the public and elected officials. Anticipated meetings include: . Targeted Public Outreach Meetings with Citizens, Affected Landowners: up to 3 meetings . Planning Commission: up to 5 meetings (see Task 12 below) . City Council Committee meetings or Council meetings: up to 5 total (see Task 13 below) The project manager will attend all meetings (13 total). The project principal in charge will attend up to 3 meetings total. Assumptions for Task 3: Each meeting scoped at 7 hours per staff, comprised of 1.5 hr preparation, 1.5 hr travel, 2 hrs meeting attendance/participation, 2 hr follow-up. Due Date: Public Meetings will begin in the Fall; Planning Commission and City Council meetings will take place in 2008. Task 11: Revisions to Staff Draft of SMP At the direction of City staff, support City staff in review, evaluation, and preparation of revised SMP based on comment from Ecology, the public, stakeholders, and elected officials throughout the public Page 1 of 3 Last printed 8/312007 4:45:00 PM G:\ENVIR iMP ACTS\2006 Projects\26114 _ Tukwila SMP\Contractual\Contract\2007 _08_ contract\FinalfromCarolWear 3 Final Scope of Work.doc Exhibit A - Scope of Work Tukwila Shoreline Master Program Update Year 3 review/adoption process. Elements may include revision and/or development of new policies and regulations. City staff support will be used, in coordination with consultant staff, to develop any new maps needed for the SMP using the City's GIS database as well as revising maps as needed. Assumptions for Task 11: City staff will direct Adolfson for support on specific elements at their discretion, within the hours and budget specified for the task. Due Date: Revisions to Staff Draft are anticipated to occur in the First Quarter of Year 3 of the Grant (July 1-September 30, 2007), however the time frame depends on when comments are received from Ecology. Task 12: Planning Commission Review of Staff Draft of SMP As noted under Task 3 above, provide support to City staff in their briefing of the Planning Commission on staff draft SMP and development regulations, attend at least one public work shop and one public hearing for public comment, assist staff in revising draft documents based on Planning Commission direction. Consultant support also will be provided by preparation of issue papers as needed during Planning Commission review of the staff draft SMP. Assumptions for Task 12: Due Date: Attendance at up to 5 meetings is anticipated. Each meeting scoped at 7 hours per staff, comprised of 1.5 hr preparation, 1.5 hr travel, 2 hrs meeting attendance/participation, 2 hr follow-up. Completion of Planning Commission review is anticipated by March 31, 2008 Task 13: City Council Review of Planning Commission Recommended SMP and Adoption of final SMP and Implementing Regulations As noted under Task 3 above, provide support to City staff in their briefing of City Council on Planning Commission recommended draft SMP and development regulations, attend at least one public work shop and one public hearing for public comment, assist staff in revising documents based on Council direction and assist staff in preparing documents for final adoption by Council during yearly cycle of amendments to Tukwila Comprehensive Plan. Consultant CL Page 2 of 3 08/02120075:38:00 PM G:\ENVIR IMP ACTS\2006 Projects\26114 _ Tukwila SMP\Contractual\Contract\2007 _08_ contractlFinalfromCarol\Y ear 3 Final Scope of Work.doc Exhibit A - Scope of Work Tukwila Shoreline Master Program Update Year 3 support also will be provided by preparation of issue papers as needed during Council review of the Planning Commission recommended SMP. Assumptions for Task 13: Attendance at up to 5 meetings is anticipated. Each meeting scoped at 7 hours per staff, comprised of 1.5 hr preparation, 1.5 hr travel, 2 hrs meeting attendance/participation, 2 hr follow-up. Due Date: June 30, 2008 Task 14: Additional Support This task shall operate as a contingency fund for work that exceeds what is anticipated to be needed and is budgeted for the tasks scoped above. Work performed under this task must be authorized specifically by City staff. CL Page 3 00 08/02120075:38:00 PM G:\ENVIR lMPACTS\2006 Projects\26114_Tukwila SMP\Contractual\Contract\2007_08_contract\FinalfromCaroIWear 3 Final Scope of Work.doc 7/24/2007 EXHIBIT B: BUDGET - TUKWlLA SMP UPDATE -- -- - - -- - - - .- . Task.3 - Citizen.lhVolvemerWfRlIblicProcess - - . - T.aSK 1t-RevIsionstoStaffDraft'SMP' Task '12~ Plannirig.ConirriiSSlonReview- ...... 'Task.X.~Addition;iISuppClrt..... T()TAl..PRO~Ee"f;._C()sr,~.;,; .. - Task Budget $3,000.00 ~'$18JOOO;OO '$5,000;00 . .$5,000,00 $4,000.00 -- . -.. $'35,000:.00 City of Tukwila Steven M. Mulle0 Mayor Department of Community De1Ielopment Steve LancasteT; Director TO: Mayor Community Affairs and park~ Jack Pace, Acting Director \ Brandon Miles, Assistant Plann From: RE: Sign Code Update DATE: August 20, 2007 BACKGROUND As part of the 2007 budget the Mayor and City Council allocated $45,000 for the update ofthe City's sign code. Planning staffhas begun the preliminary work and is ready to proceed with the update. The City's existing sign code was written in 1982. Throughout the years there have been piecemeal changes to the sign code to address specific areas of interest, such as signs at public facilities; standards for electronic and animated signs; and signage at the mall. However, no comprehensive update has occurred. The landscape of the City has changed significantly since 1982. The City concluded several large annexations including the annexation of Tukwila International Blvd and the Manufacturing Industrial Center areas. Additionally, the City is completing the Tukwila Urban Center plan which will allow a development pattern that would have unique sign needs not easily addressed in the City's existing Sign Code. Additionally, the City's sign code needs to be examined to ensure compliance with the legal limitations placed on City's ability to regulate signs. Some specific items with the sign code that should be examined with an update: 1. Are signage needs different in the various zones of the City? For example, should the City have different standards for signs within the TUC compared to standards in the MIC? 2. Should comer parcels be allocated more signs than they are currently permitted? Currently, a comer parcel is permitted to have one freestanding sign. However, comer parcels have multiple entrances from two public streets, perhaps additional signage is warranted. 3. Does the City want to prohibit animated and electronic signs? Created by B. Miles H:\Sign Code Update\MEMOS\CAP, 2007.08.07.doc Page I on 6300 Southcenter Boulevar~ Suite #100 · Tukwila, Washington 98188 · Phone: 206-431-3670 · Fax: 206-431-3665 4. How should temporary displays and signage be regulated? These are just few items that need to be examined with the sign code update. DISCUSSION Planning staff envisions a grassroots process in updating the sign code. Any update of the sign code should involve City residents, property owners, and business owners. Planning Staff proposed a minimum of three public workshops to address signage issues within the City. These public workshops would be in addition to the required public hearings before the Planning Commission and City Council. Planning staff proposes the creation of a sign code committee to work on the specific details of the new sign code. The sign code committee will be present at the public workshops and will prepare a draft sign code which will be presented to the City Council for consideration. The make-up of the sign code committee could include the following: · Two City Council persons · Two Planning Commission members (selected by Mayor and Council President) · Two Tukwila Business/Property owners (selected by the Mayor) · One Tukwila resident (selected by the Mayor) All meetings ofthe sign code committee will be open to the public. In October, Planning staff would like to conduct a workshop with the City Council and the Planning Commission to conduct a visual use survey of some of the issues related to signage within the community. It would be useful to see examples of signage in other communities. The workshop will also allow planning staff and those members of the City Council and Planning Commission that will be assigned tothe Sign Code Committee the opportunity to gauge important issues and concerns of other Council members and Planning Commission members related to the sign code update. The workshop will occur on a separate night from regular City Council meetings. Preliminary Schedule The following is a tentative schedule of the sign code update: September 3, 2007-BriefCity Council on the proposed update schedule and if approved, request volunteers from City Council members to serve on the sign code committee. September 27, 2007-BriefPlanning Commission on the proposed update and request volunteers to serve on the sign code committee Created by B. Miles H:\Sign Code Update\MEMOS\CAP, 2007.08.07.doc Page 2 of3 October 17, 2007 -Hold joint meeting of the City Council and the Planning Commission to hold a visual use survey of signage issues (Dinner will be served). October 24, 2007 -Hold a public open house for residents, business owners, and property owner to solicit comments on sign issues related to the community. November `07- February -Sign code Committee workshops and public open houses. February `08 -Staff prepares draft Sign Code February `08 -Draft is presented to Sign Code Committee March `08 -CAP and COW are briefed April `08- Planning Commission is briefed, Public Hearing held May '08- Regular City Council meeting, public hearing, possible adoption NEXT STEP Staff recommends that the matter be referred to the September 3, 2007 meeting for consideration. Created by B. Miles HASign Code Update \MEMOS \CAP, 2007.08.07.doe Page 3 of 3