Loading...
HomeMy WebLinkAbout2008-09-08 Committee of the Whole MinutesCITIZEN COMMENT TUKWILA CITY COUNCIL September 8, 2008 7:00 p.m. Council Chambers City Hall COMMITTEE OF THE WHOLE MINUTES CALL TO ORDER /PLEDGE OF ALLEGIANCE Council President Joe Duffie called the meeting to order at 7:02 p.m. and led the audience in the Pledge of Allegiance. The Council President asked all citizens and City employees to stand and be recognized. OFFICIALS Present were Joe Duffie, Council President; Councilmembers Joan Hernandez, Pam Linder, Dennis Robertson, Verna Griffin, Kathy Hougardy, and De'Sean Quinn. ATTENDANCE Jim Haggerton, Mayor; Rhonda Berry, City Administrator; Jim Morrow, Public Works Director; Bob Giberson, City Engineer; Derek Speck, Economic Development Administrator; Mary Miotke, Information Technology Director; Christy O'Flaherty, City Clerk. Heidi Watters, 3510 South 130th Street, referenced a speeding problem on South 130th Street. She indicated that she and her neighbors are concerned about speeds ranging from 35 -40 miles per hour (mph) in a 25 mph zone. She would like to see traffic calming measures taken, such as a speed limit sign, paint, or street trees to improve the situation. Joanne McManus, 5610 South 133rd Street, commented regarding the condition of a house across the street from the Tukwila Community Center. She indicated there is a great deal of garbage in the yard, and this has been ongoing for years. She would like to see the Code Enforcement Division do something about this issue. Rhonda Berry, City Administrator, explained the City is aware of this issue and has been working on the matter for some time. There are multiple factors involved in this situation that she is not at liberty to share, and the City is doing everything that can be done to work this problem. Sharon Mann, 4452 South 160th Street, inquired regarding code enforcement issues being a matter of public record. She expressed frustration at not getting return phone calls or updates regarding ongoing code enforcement matters. SPECIAL ISSUES a. Tukwila Village Developer Proposals continued discussion Derek Speck, Economic Development Administrator, utilized a Powerpoint presentation to provide an outline of this evening's discussion. Tonight's Purpose 1. Understand developer proposals both Legacy and Tarragon are well qualified; both are good choices 2. No action is requested tonight City of Tukwila Page 2 of 8 City Council Committee of the Whole Minutes September 8. 2008 Advantages Legacy More feasible -Less risk of market demand Fewer unknowns -80% of development in Phase 1 Indoor commons area Estimated land value of $1 million to $3 million more 50 senior apartments (low income) 25 for sale townhouses (first -time homebuyers, moderate income) Advantages Tarragon More retail space More welcoming atmosphere Better ability to "grow" with Tukwila $100,000 additional in sales tax and $25,000 in property tax annually Many citizens prefer the extra retail, larger plaza, and aesthetic appearance 60 apartments for moderate income Challenges /Risks Legacy Architecture, plaza, and landscaping needs to be "warmer" and more welcoming Would need to structure a partnership between property owner and City to manage indoor commons May be challenging to find apartment tenants willing to pay rent of $1.45 to $1.80 per square foot per month Challenges /Risks Tarragon Locating a 15,000 square foot store at the corner of Tukwila International Boulevard (TIB) and 144th separates the plaza from the rest of the community and is challenging to make attractive along TIB May not be financially feasible to build project for estimated rents of $1.35 per square foot City may not want the proposed heights or density on Phase 2 A large portion of retail space may be services City Council questions and discussion: 1. Please explain the phases in the proposals and associated costs. Derek Speck, Economic Development Administrator, explained that both developers included a Phase 1 and Phase 2 in their proposals. Tarragon selected the parcels north of South 144th Street in Phase 1 and south of South 144th in Phase 2. Legacy's Phase 1 proposal contains all of the north parcels, as well as some of the south parcels. Legacy is using more land in Phase 1 than in Phase 2. Mr. Speck indicated that for purposes of an apples -to- apples comparison, he looked at the costs for each of the 2 proposals for the north parcels only. The total land value (to be paid to the City) for the north side parcels in the Legacy proposal is approximately $3.6 million. The approximate value (to be paid to the City) of the north parcels for the Tarragon proposal is $1.6 million. 2. Please explain the land trust issue as it relates to the townhouses and the equity investment. Mr. Speck indicated that those purchasing the townhouses will have a less than 100% equity investment, due to the land not being owned by the purchaser. 3. It was requested that written documentation be provided regarding the multi family property tax exemption, outlining any constraints to the developers, as well as any financial impacts to the City. Mr. Speck responded in the affirmative. 4. Each developer was asked what happens to Phase 2 if Phase 1 is not a success. Kristin Jensen, Senior Development Manager and Partner with Tarragon, believes Phase 1 will be a success. Timing is significant as Tarragon will not begin Phase 2 until Phase 1 is stabilized. If necessary, other uses would be sought, as Tarragon does not generally sell its properties. City of Tukwila Page 3 of 8 Citv Council Committee of the Whole Minutes September 8. 2008 Ms. Jensen was asked if the City decided not to sell the land south of South 144th Street, to reserve as a public safety building and a court, would Tarragon still be interested in this project. Ms. Jensen responded in the affirmative regarding development of just the north parcels. If that became the case, it may also be possible for Tarragon to purchase the south parcels at a later date if the City desired. Chris Meyer, Development Manager with Legacy, indicated this project has been developed to allow for flexibility in Phase 2. They would research the best use of the site as well as the evolving needs of the City. Mr. Meyer was asked if the City decided not to sell the and south of South 144th Street, to reserve as a public safety building and a court, would Legacy still be interested in this project. Mr. Meyer responded in the affirmative regarding development of just the north parcels. He explained they might have planned their site differently, if it had been known the project would be divided along South 144th Street. 5. Legacy was asked if they are open to design changes that would make the proposal more open in the center and to modifications that would give a "more natural Northwest look." Mr. Meyer explained that Legacy is open to design changes, and they are aware this is an evolving process. He referenced their Redmond Riverfront project that involved the request for a Northwest contemporary look, and Legacy accomplished that requirement in the finished product. 6. Both developers were asked to describe the partnership involved with the City in activating the space. Ms. Jensen from Tarragon indicated there is an expectation it would be similar to what is occurring at Kent Station. Tarragon would take the lead role, working toward community involvement and organizational outreach, as well as promoting the retail component of the site. Ms. Jensen was asked "What would you expect the City's financial responsibility to be with activating the space She responded that Tarragon would not expect any financial input from the City. Mr. Meyer from Legacy referenced the indoor space element of their project, which will require a great deal of management. While there will be significant involvement from their onsite property management staff, Legacy would want this to be a collaborative, team -based approach. They would want to see involvement from the community, the library, and the Tukwila Parks Department. They would lead, but would want to see a collaborative effort. Mr. Meyer was asked "What would you expect the City's financial responsibility to be with activating the space He responded that Legacy would want to discuss that in the negotiations, and that some allocation of City man -hours might be fair; this could range from none to a part -time position to assist with the program. 7. Both developers were asked to describe a typical day in how the space is being activated in both summer and winter. Ms. Jensen from Tarragon offered a summer description of those living in the complex coming down for morning coffee and heading off to catch the bus or taking the shuttle to the nearby transit station. She foresees people from outside the development coming to utilize the library, the retailers, or enjoy the outdoor fireplace. Everyone will be able to enjoy the plaza for dining or concerts. She envisions the winter time patterns to be very similar to summer, as that is what they have seen at Kent Station. Mr. Meyer from Legacy described the possibility of an early morning rooftop stretching class in the senior housing area. He envisions pedestrian traffic heading down to the transit station in the morning. He foresees "mommy and me" stretching activities in the indoor space. The ethnic specialties food court and library will attract visitors to the site. He envisions people having coffee and tea in the indoor space, and others enjoying the outdoor fireplace and sitting by the fountain. City of Tukwila Page 4 of 8 City Council Committee of the Whole Minutes September 8, 2008 8. Both developers were asked how they would attract tenants to the site, as the rents are considered to be high. Ms. Jensen from Tarragon expressed confidence that this type of product will support higher rents. There' will be advertising and outreach, and people are going to want to live there; they will be willing to pay for the value that is received. There are already nice places to live in Tukwila. Tukwila Village will offer something new and interactive, with retail amenities and a plaza with a "downtown scenario" appeal that will make people want to live there. Mr. Meyer from Legacy explained the multi family market is strong, and trends are showing greater balance regarding rental vs. ownership housing. Transit oriented developments such as this are strong drivers of rents. With rents at $3.00 a square foot in downtown Seattle, this will be an attractive option. Legacy has a great deal of experience in attracting renters, and there are local waiting lists for senior housing and other rentals. 9. Please explain the yearly incomes associated with senior housing (50 units /low income) in the Legacy proposal and the apartments (60 units /moderate income) in the Tarragon proposal. Derek Speck, Economic Development Administrator, explained the senior housing income would be approximately $32,000 a year, relative to the Legacy proposal. The approximate income for the 60 apartment units would be $40,000 $50,000 a year, relative to the Tarragon proposal. Mr. Speck indicated the Legacy proposal has 50 senior housing units and 25 ownership townhomes; Legacy is not providing affordable or subsidized housing (in addition to the senior housing and townhomes). 10. Both developers were asked to provide a response regarding the staff analysis that the rental rate of approximately $1.35 a square foot is too low to make this project work. Ms. Jensen from Tarragon relayed confidence that this new high quality product will attract renters. They have the skills and experience to make the difference, and they have looked at the numbers in the local area. While this may not be a big money maker initially, they do not intend to sell the property. They view this as an opportunity for growth and expect the project to get stronger over time. Mr. Meyer from Legacy conveyed they have experience in doing this in thousands of units in multiple markets across the West Coast. The products in the area, while well managed, are older, and there is no substitute for newness. Their numbers have been validated with Gardner Johnson, their consultant on these types of projects. They are comfortable that their understanding of rents and construction costs will produce a feasible project. 11. Both developers were asked to explain the security they will be providing for the project. Ms. Jensen from Tarragon indicated they provide onsite, 24 -hour a day security, and the number of security personnel can vary depending on the needs. Mr. Meyer from Legacy indicated they provide onsite security, in addition to intelligent site design that includes good lighting, no blind corners, enclosed residential patio areas, and an eyes -on- the street effort. 12. With regard to the Tarragon proposal, how will the senior housing be interspersed, due to the special requirements associated with senior housing? Ms. Jensen from Tarragon explained they are not proposing senior housing and welcome people of all ages in the residential area of the project. Some units will have ADA (Americans with Disabilities Act) accommodations. 13. With regard to the Tarragon proposal, there is concern regarding the diagonal parking on South 144th Street. Can that be reconsidered? Ms. Jensen from Tarragon stated they feel that on- street parking would help activate the space and blend this project with the community. It would also help to slow down traffic and pull people into the site. Their architects suggested, from prior experience, that angled, back -in parking provides a safer scenario. Tarragon is prepared to develop this property with or without improvements to South 144th Street. They would like the City to be open to considering a collaborative effort regarding street improvements in this area. City of Tukwila Page 5 of 8 City Council Committee of the Whole Minutes September 8, 2008 14. Please comment on the approach of trying to "get everything" into this development. Mr. Speck, Economic Development Administrator, expressed we cannot go wrong either way, as both projects will be of great benefit to the community. He referenced the amount of time the City has spent over the years on this issue. It will need to be determined how much the City wants to stretch with this project. If it is decided the City has a lot of other priorities, and it is necessary to move quickly, then putting many things into the project may not be advantageous. If the reasoning is that the City can "keep digging in" and pursue different options as the project flows in different ways, then it would be worthwhile to put more into the development. The Councilmembers engaged in discussion on the proposals and offered the following comments: the need to scrutinize both proposals, as a first step, in what could inspire development in this corridor; the importance of a visible location for the Neighborhood Resource Center (NRC); the necessity of giving people a "reason to go" to Tukwila Village to provide the meeting place defined in the vision statement; the view that this project has the components of a neighborhood gathering place and not a City center; concern regarding the "unknowns" that could occur if the development is sold at a future point; the necessity of incorporating crime mitigation into this project; the possibility of this project or similar projects extending further south; the need for the developer to provide affordable housing and have a proven track record of activating space; and the requirement that the developer selected be both flexible and confident in the end product. Citizen comments: Brian Kennedy, 12802 37th Avenue South, emphasized the need for a gathering place and not just a "chunk of apartments and a little bit of retail." He would also like to see art incorporated into the project. Katrina Dohn, 14442 46th Avenue South, agrees with the need for citizens to have a "place to go and hang out and feel safe." She expressed that crime mitigation is essential and would like the development to have a Northwest look. Sharon Mann, 4452 South 160th Street, conveyed she is in favor of year -round facilities that include an indoor gathering space. If Tarragon is chosen, she would like to know what percentage of the units will be available to seniors. Ms. Mann explained she is not in favor of a wall and would like to see the plaza area be open. She likes the idea of diversity being incorporated into the development. Ron Sudderth, 14708 136th Avenue East, Puyallup, has been a commercial real estate broker in this area since 1973. It is his suggestion that retail be held to a low minimum on this site, which is similar to the views of prior City consultants. In his view, retail follows rooftops, and there is currently a substantial amount of retail in this area. He suggests a proportion of residential should be included, as more housing is needed in this area to provide better balance. Barbara Bader, 13660 Military Road South, expressed the importance of providing adequate parking, not only for residents, but for visitors to the site. She is concerned about the property tax exemption as that will mean no monetary commitment from the development toward Tukwila schools. She does not see this project as a City center, but as a catalyst to development along the boulevard. She would like to see more restaurants and shopping in this area of the City. John Cruce, 13701 43rd Place South, indicated the Metro station in this area is a seed that will bring revitalization. He relayed the need to find "draws" that will encourage people to come to the site. Bryan Nelson, 3223 South 136th Street, stressed this should be an area where people can meet and have a meal and share life together. The type of retail in this development is important as it needs to be welcoming and inviting. Pam Carter, 4115 South 139th Street, commented the Council should not fixate on the NRC and be open to the possibility of something similar to a mini -City Hall. The zoning on Tukwila International Boulevard may need to be reconsidered to accommodate the City's vision for the area. Ms. Carter's interactions with citizens at Tukwila Days provided input that suggests an acceptance for housing above retail, but not right on the street. City of Tukwila Page 6 of 8 Citv Council Committee of the Whole Minutes September 8. 2008 Dave Fenton, 14201 42nd Avenue South, likes the idea of continuing the project further south, and he does have concern about the retail element of the development. He expressed confidence that the Council will be able to work through the issues. Derek Speck, Economic Development Administrator, explained that next steps involve bringing this matter back to the September 22, 2008 Committee of the Whole meeting for further discussion. A Special Meeting will be held directly following the Committee of the Whole, and the Council can make a decision regarding developer selection at that time. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE SEPTEMBER 22, 2008 COUNCIL MEETING. 9:35 p.m. Council President Duffie declared a brief recess 9:39 p.m. Council President Duffie reconvened the Committee of the Whole meeting b. Seismic Evaluation Results Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee meeting on September 3, 2008. The committee members forwarded this item to the full Council for discussion. Reid Middleton was contracted to provide seismic evaluations for 11 City buildings: City Hall, 6300 Building, 4 Fire Stations, Tukwila Community Center, George Long Shops, and Minkler Shops (3 buildings). All of the buildings, with the exception of Fire Station 53 (built in 1995), do not meet the Immediate Occupancy objective. (The 11 City facilities were built from 1961 -1995, with all but 2 of the facilities being over 30 years old.) Jim Morrow, Public Works Director, introduced Dave Swanson, Structural Engineer, and Corbin Hammer, Project Engineer, from Reid Middleton. A Powerpoint presentation was utilized to provide specific information about the seismic evaluation process and the results regarding each of the City facilities that were evaluated. The 4 Seismic Performance Levels are: Operational (OP) Very Light Overall Damage Immediate Occupancy (10) Light Overall Damage Life Safety (LS) Moderate Overall Damage Collapse Prevention (CP) Severe Overall Damage The seismic evaluation looked at the building's expected structural performance for the Immediate Occupancy performance objective. Each building is considered to be critical /essential to the City's ability to provide post- earthquake services. The results of the seismic analysis and consultant's recommendation are as follows: Facility City Hall 6300 Building Fire Station 51 Fire Station 52 Fire Station 53 Fire Station 54 Minkler Shops (3 buildings) George Long Shops Tukwila Community Center Year Built Seismic Evaluation Recommendation 1977 Failed Retrofit 1978 Failed Retrofit 1973 Failed Replace 1971 Failed Retrofit 1995 Passed N/A 1961 Failed Retrofit 1 972 Failed Retrofit 1965 Failed Replace 1995 Failed Retrofit City of Tukwila Page 7 of 8 City Council Committee of the Whole Minutes September 8. 2008 The costs associated with the consultant's recommendation for retrofitting and replacing the facilities is $26,587,000. This amount does not include staffs recommendations for needed system improvements due to the age of the buildings, such as HVAC replacements, new windows, ADA compliance, lighting, plumbing, and electrical upgrades in the amount of $13,983,000. Backup generator costs in the amount of $2,025,000 also need to be taken into consideration. Mr. Morrow explained the analysis indicates that 10 of our 11 facilities will not be habitable should a substantial earthquake occur. That means all of the essential functions in those buildings cannot be performed during an incident or during the long recovery period that follows. Some of the costs to retrofit or repair a facility, to make it habitable, could take from 3 -12 months. In order for City Hall to be retrofitted, it would need to be vacated for 12 months. Mr. Morrow conveyed that the suggested action from staff differs from the consultant recommendation, in that the needed system improvements have also been taken into consideration. Rhonda Berry, City Administrator, indicated the consultant and staff recommendations do not include provisions to provide additional capacity. We currently have 2008 staffing levels in the City Hall facility that was built in 1977. The current recommendations only apply to upgrading the buildings as they currently exist and will not provide additional space. The Councilmembers asked clarifying questions and offered comments regarding various aspects of the presentation. It was determined that staff should bring this matter back to the Finance and Safety Committee with a recommendation that entails all costs associated with the project, to include timelines and funding options. REPORTS a. Mayor Mayor Haggerton indicated the Council will be asked to confirm the appointment of Shawn Hunstock as the new Finance Director at the next Regular Meeting. Mr. Hunstock is currently the Deputy Finance Director for the City of Auburn and has extensive experience with Eden Systems (Tukwila's financial software). Recruitment has also occurred for the Deputy Finance Director, and that position should be filled in the near future. b. City Council Councilmember Hernandez attended the September 4, 2008 Equity and Diversity Committee meeting. Councilmember Linder expressed appreciation to Bruce Fletcher, Parks and Recreation Director, for extending the time the spray park will be open for the next couple of weeks. Councilmember Hougardy attended the September 6, 2008 Health and Wellness event. Council President Duffie reported the billy goats are back and doing an "outstanding job" at South 144th Street and 56th Avenue South. c. Staff There was no report. City of Tukwila Page 8 of 8 City Council Committee of the Whole Minutes September 8. 2008 d. City Attorney The City Attorney's presence is not required at Committee of the Whole meetings. e. Intergovernmental The Council Analyst was not present. MISCELLANEOUS Mayor Haggerton announced the City Clerk will handle the reading of ordinances and resolutions at future Council meetings. ADJOURNMENT 10:59 p.m. COUNCIL PRESIDENT DUFFIE DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. 14- I ;+`e -''r Christy O'Fla(at;rty, City Clerk