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HomeMy WebLinkAboutAgenda Bill_121 SUBJECT/TITLE:Willowcrest Phase II Fee Waiver Request RECOMMENDED ACTION: Refer to Finance Committee DEPARTMENT: Community & Economic Development STAFF CONTACT: Alex Morganroth EXT.: 7219 The estimated total fees requested to be waived for the Willowcrest Phase II project is $516,737.19. If approved, these waived fees would represent an estimated savings of $25,177.04 per multi-family unit. The Willowcrest Phase II site is approximately 40,097 square feet (0.92 acres) and is zoned Center Village (CV). The project includes five buildings containing a total of 19 townhomes, offered in two- and three- bedroom configurations, located at 1132 Edmonds Avenue NE, in Renton. Each townhome includes an individual single-car garage. This phase continues the 12 townhomes completed in 2021 as part of the first phase of the Willowcrest development. All 19 townhomes in Phase II will be permanently affordable. Homestead Community Land Trust (HCLT) has been developing and stewarding resale-restricted affordable housing for 34 years, with nearly 250 homes in the Trust and more than 300 first-time homebuying opportunities for income-qualified households. The portion of the site where the new units are proposed is owned by HCLT and is currently undeveloped. All proposed dwelling units meet the Renton Municipal Code definition of affordable housing. The land beneath the homes will remain in HCLT ownership, and through the land-lease structure, the resale prices are restricted to ensure long-term affordability for future buyers earning below eighty percent (80%) of the area median income. Intent is to approve a 100 percent (100%) waiver of the applicable development fees and an 80 percent (80%) waiver of the applicable impact fees for all 19 units of the Willowcrest Phase II project, as provided in Renton Municipal Code (RMC) 4-1-210B.4, and authorize the Mayor to enter into a contract with the applicant to effectuate the fee waiver. In addition, defer the execution and recording of the restrictive covenant documents until prior to the issuance of Temporary Certificate of Occupancy (TCO) for the building in order to expedite permit review and issuance. Approve Resolution as attached to this Agenda BIll. City Council Regular Meeting FISCAL IMPACT SUMMARY: SUMMARY OF ACTION STAFF RECOMMENDATION DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:March 30, 2026 TO:Ruth Perez, Council President Members of Renton City Council VIA:Armondo Pavone, Mayor FROM:Gina Estep, CED Administrator (x3615) STAFF CONTACT:Alex Morganroth, Principal Planner (x7219) SUBJECT:Fee Waiver Request – Willowcrest Phase II Project ISSUE Should the City waive certain development and impact fees for the Willowcrest Phase II Project? RECOMMENDATION Approve a 100 percent (100%) waiver of the eligible development fees and an 80 percent (80%) waiver of the transportation, park, and fire impact mitigation fees as well as the system development charges (sewer, water, storm), as provided in Renton Municipal Code (RMC) 4-1-210B.4. BACKGROUND SUMMARY Homestead Community Land Trust (HCLT) has requested approval of a waiver of permit and impact mitigation fees under RMC 4-1-210 for the Willowcrest II townhomes affordable homeownership project in the Sunset Area. The project is part of the Sunset Area Transformation Plan and represents a collaborative development between HCLT and the Renton Housing Authority. The project is located adjacent to HCLT’s Willowcrest Phase I townhomes and RHA’s Glennwood Townhomes affordable housing projects. The Willowcrest Phase II site is approximately 40,097 square feet (0.92 acres) and is zoned Center Village (CV). The project includes five (5) buildings containing a total of 19 townhomes, offered in two- and three-bedroom configurations, located at 1132 Edmonds Avenue NE, in Renton. Each townhome includes an individual single-car garage or carport. This phase continues the 12 townhomes completed in 2021 as part of the first phase of the Willowcrest development. All 19 townhomes in Phase II will be permanently affordable. The land beneath the homes will remain in HCLT ownership, and through the land-lease structure, the resale prices are restricted to ensure long-term affordability for future buyers earning below eighty percent (80%) of the area median income. Homestead has been developing and stewarding resale-restricted affordable housing for 34 years, with nearly 250 homes in the Trust and more than 300 first-time homebuying opportunities for income-qualified households. The second phase is intended to build upon the community amenities established during Phase I and complete the full buildout of the Willowcrest development, which will ultimately include 31 homes on previously vacant, undeveloped land. Planned amenities include a community P-Patch garden and the completion of a pedestrian connection from Edmonds Ave NE to Glenwood Ave NE, providing a new and safer route between the Edmonds and Sunset transit corridors and nearby community destinations, including the community center, library, and park. The “Waived Fees – Affordable Owner-Occupied Housing Incentive,” (RMC 4-1-210B) is intended to encourage new affordable owner-occupied housing in the City by waiving certain development and mitigation fees for eligible affordable “For Sale” housing projects. Accordingly, HCLT has requested that the following permit fees, impact fees, and system development charges be waived for the Willowcrest Townhome development project: Building permit and plan review fees Public Works plan review and inspection fees Transportation and Park impact fees Fire impact fees (pending the authorized interlocal agreement with RRFA) o Per State law, eighty percent (80%) of the transportation, park, and fire impact fees would be waived. Civil plan review and inspection fees Water, Surface Water, and Wastewater system development charges; and Technology surcharge fees The estimated total fees requested to be waived for the Willowcrest Phase II development project are $516,737.19. If approved, these waived fees would represent an estimated savings of $27,196.69 per townhome. Homestead will record affordability covenants with King County, which will monitor the long-term affordability of the homes. Homestead is requesting that the City of Renton waive all eligible fees as outlined in RMC 4-1-210. Construction will begin in summer of 2026. The City applied for 2026 CHIP funding on behalf of Homestead Community Land Trust for the Willowcrest Phase II Project and was awarded $1,000,000, of which $217,841.68 will be applied toward system development charge (SDC) waivers. The utility improvement work will be completed during the first phase of construction, beginning in summer of 2026 and concluding by spring of 2027. CONCLUSION The Willowcrest Phase II project meets the eligibility criteria for waived fees as identified in RMC 4-1-210B.3. Authorizing the Mayor to enter into a contract with the applicant to effectuate the fee waiver will support the provision of new affordable homeownership opportunities advances the City’s ongoing redevelopment efforts in the Sunset Area. Deferring the execution and recording of the restrictive covenant documents until prior to the issuance of Temporary Certificates of Occupancy (TCOs) will help expedite permit review and issuance. HOMESTEAD WILLOWCREST PHASE II PROJECT – WAIVED FEES (ESTIMATE) Building Permit Fee $59,736.70 Building Permit Plan Review Fee $45,366.70 Water System Development Charge $133,851.00 (2025 CHIP application) Sewer System Development Charge $76,475.00 (2025 CHIP application) Storm System Development Charge $7,515.68 (2025 CHIP application) Public Work/Civil Plan Review and Inspection Fees $37,425.00 Technology Surcharge $1,871.28 Fire Impact Mitigation Fee $8,807.03 Transportation Impact Mitigation Fee $106,214.41 Park Impact Mitigation Fee $38,474.39 Estimated Waived Fees* *Please note this is an estimated fee calculation. Final fee calculations are determined at the time of building and construction permit submittal. Fees are based on a number of factors that are calculated on the final permit documents, which were not yet prepared at the date of this issue paper. $516,737.19 HOMESTEAD Community Land Trust March 17, 2025 Gina Estep, AdministratorDepartment of Community & Economic Development City of Renton1055 S. Grady Way Renton WA 98057 RE: Waived Fees Request for Willow Crest II Townhomes Affordable Homeownership Project Dear Ms. Estep: I am writing to request a waiver of permit and impact mitigation fees under RMC 4.1.210 for the Willow Crest II Townhomes affordable homeownership project in the Sunset Area. The project is part of the Sunset Area Transformation Plan and a collaborative development between Homestead Community Land Trust and the Renton Housing Authority. RHA is donating the land for the project which will be adjacent to Willow Crest I and RHA's Glennwood Townhomes affordable rental housing project. The Willow Crest Townhomes project involves the new construction of 19 townhomes, all on separately platted lots, all of which will be sold to households below 80% of area median income at affordable prices. The homes will be permanently affordable. Specifically, the land under the homes will be owned by Homestead Community Land Trust, and as a condition of the land lease the resale prices will be restricted such that the homes will be affordable to future buyers under 80% of area median income. Homestead has been developing and stewarding the affordability of resale restricted housing for 32 years and has nearly 250 homes in the Trust. Homestead will have affordability covenants with King County, which will monitor the ongoing affordability of the homes. Homestead is requesting that the City of Renton waive all eligible fees as outlined in RMC 4.1.210. We hope to start construction in Summer of 2025. Please let me know if you have any questions or there is any other information you would like us to provide. Thank you. Kathleen Hosfeld Executive Director 412 Maynard Avenue South, Ste. 201. • Seattle, WA 98104 • (206) 323-1227 • info@HomesteadCLT.orgwww.HomesteadCLT.org 1 CITY OF RENTON, WASHINGTON RESOLUTION NO. _______ A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, WAIVING CERTAIN DEVELOPMENT AND IMPACT FEES FOR THE WILLOWCREST PHASE II PROJECT WHEREAS, Third Place Design Co-operative, Inc. (“Applicant”), on behalf of Homestead Community Land Trust (“Homestead”), received combined preliminary and final Planned Urban Development approval, master plan modification and binding site plan modification approval, LUA25-000073, on December 30, 2025, for the Willowcrest Phase II development located in the City of Renton’s Center Village (CV) Zone at 1132 Edmonds Avenue NE, Renton, WA 98056, which includes five (5) buildings containing a total of nineteen (19) townhomes, offered in two- and three-bedroom configurations; and WHEREAS, pursuant to the City’s affordable owner-occupied housing incentive RMC 4-1-210.B, the City Council may waive specific fees for new affordable owner- occupied housing projects in the City that meet the eligibility requirements set forth therein; and WHEREAS, Homestead submitted a written request (“Request”) dated March 17, 2025, (attached hereto as Exhibit A and incorporated by this reference) to the Department of Community and Economic Development (“CED”) for a one hundred percent (100%) fee waiver of building permit fees; building permit plan review fees; sewer system development charges, water system development charges, surface water system development charges; Public Works plan review and inspection fees and technology surcharge fees; and an eighty percent (80%) fee waiver of fire, transportation, and park impact fees; and RESOLUTION NO. _______ 2 WHEREAS, the Request was made prior to civil construction permit application pursuant to RMC 4-1-210.B.5; and WHEREAS, in the Request, Homestead specified that the Willowcrest Phase II project is planned to consist of entirely new construction of nineteen (19) housing units, all on separately platted lots, and one hundred percent (100%) of the housing units will be reserved for affordable housing as defined by RMC 4-1-210; and WHEREAS, the estimated development and impact fees for the Willowcrest Phase II project total five hundred and sixteen thousand, seven hundred and thirty seven dollars and nineteen cents ($516,737.19); NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO RESOLVE AS FOLLOWS: SECTION I. Homestead and its proposed Willowcrest Phase II project at 1132 Edmonds Avenue NE, Renton, WA 98056, meet the eligibility criteria for fee waivers identified in RMC 4-1-210.B.3. SECTION II. The City Council, contingent upon compliance with the terms of Section III of this resolution, fully waives the following fees for the Homestead Willowcrest Phase II project: A. Building permit fees; B. Building permit plan review fees; C. Water System Development Charge; D. Sewer System Development Charge; E. Storm System Development Charge; RESOLUTION NO. _______ 3 F. Surface water system development charges; G. Public Works plan review and inspection fees; H. Civil plan review and inspection fees; and I. Technology surcharge fees. SECTION III. The City Council, contingent upon compliance with the terms of SECTION IV of this resolution, waives eighty percent (80%) of the following fees for the Homestead Willowcrest Phase II Project: A. Transportation and parks mitigation fees; and B. Fire mitigation fees. SECTION IV. To be eligible for this waiver, Homestead shall comply with and continue to remain in full compliance with all applicable requirements of RMC 4-1-210.B and RCW 82.02.060, including, but not limited to, recording the restrictive covenant required by RMC 4-1-210.B.6 prior to the issuance of a Temporary Certificate of Occupancy (“TCO”) for any portion of the project. PASSED BY THE CITY COUNCIL this day of , 2026. ______________________________ Jason A. Seth, City Clerk APPROVED BY THE MAYOR this day of , 2026. ______________________________ Armondo Pavone, Mayor RESOLUTION NO. _______ 4 Approved as to form: Shane Moloney, City Attorney RES-CED:26RES006:03.25.2026 Exhibit A HOMESTEAD Community Land Trust March 17, 2025 Gina Estep, AdministratorDepartment of Community & Economic Development City of Renton1055 S. Grady Way Renton WA 98057 RE: Waived Fees Request for Willow Crest II Townhomes Affordable Homeownership Project Dear Ms. Estep: I am writing to request a waiver of permit and impact mitigation fees under RMC 4.1.210 for the Willow Crest II Townhomes affordable homeownership project in the Sunset Area. The project is part of the Sunset Area Transformation Plan and a collaborative development between Homestead Community Land Trust and the Renton Housing Authority. RHA is donating the land for the project which will be adjacent to Willow Crest I and RHA's Glennwood Townhomes affordable rental housing project. The Willow Crest Townhomes project involves the new construction of 19 townhomes, all on separately platted lots, all of which will be sold to households below 80% of area median income at affordable prices. The homes will be permanently affordable. Specifically, the land under the homes will be owned by Homestead Community Land Trust, and as a condition of the land lease the resale prices will be restricted such that the homes will be affordable to future buyers under 80% of area median income. Homestead has been developing and stewarding the affordability of resale restricted housing for 32 years and has nearly 250 homes in the Trust. Homestead will have affordability covenants with King County, which will monitor the ongoing affordability of the homes. Homestead is requesting that the City of Renton waive all eligible fees as outlined in RMC 4.1.210. We hope to start construction in Summer of 2025. Please let me know if you have any questions or there is any other information you would like us to provide. Thank you. Kathleen Hosfeld Executive Director 412 Maynard Avenue South, Ste. 201. • Seattle, WA 98104 • (206) 323-1227 • info@HomesteadCLT.orgwww.HomesteadCLT.org Exhibit A