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HomeMy WebLinkAboutERC_Report_Funbox_260603_v1DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT ERC_Report_Funbox_260603_v1 ENVIRONMENTAL REVIEW COMMITTEE REPORT ERC Meeting Date: June 8, 2026 Project File Number: PR26-000032 Project Name: FUNBOX Land Use File Number: LUA26-000146, ECF Project Manager: Mariah Kerrihard, Associate Planner Owner: Craig Koeppler, RVA Center Owner LLC, 15 S Grady Way, Suite 520, Renton, WA 98057 Applicant/Contact: Muhammad Siddique, 6060 Sunrise Vista Dr #2400B, Citrus Heights, CA 95610 Project Location: 601 S Grady Way, Suite P, Renton, WA 98057 (APN: 1923059043) Project Summary: The applicant is requesting Environmental (SEPA) Review for a change of use and interior tenant improvement to convert an existing retail space, estimated at around 19,900 square feet, into an indoor recreational facility. All proposed improvements would be interior to the tenant space; no exterior site improvements are proposed. The project site is located at 601 S Grady Way, a 9.80-acre parcel within the Renton Village Shopping Center Complex. The project site is located within the Commercial Arterial (CA) zone, Urban Design District ‘D’ overlay zone and the Rainier Grady Junction overlay zone. The site location is within the Commercial Mixed Use comprehensive land use designation and within the City Center Community Planning Area. The parcel features public street frontage on S Grady Way and S Renton Village Pl, with no proposed modifications to existing access. According to City of Renton (COR) Maps, the site includes a piped segment of Rolling Hills Creek, high seismic hazard areas, special flood hazard areas (FEMA Zone – AH), and is in the Downtown Wellhead Protection Area Zone 2. There are no trees proposed for removal. Exist. Bldg. Area SF: 19,900 SF Proposed New Bldg. Area (footprint): Proposed New Bldg. Area (gross): N/A N/A Site Area: 426,966 SF (9.80 acres) Total Building Area GSF: 19,900 SF STAFF RECOMMENDATION: Staff Recommends that the Environmental Review Committee issue a Determination of Non-Significance (DNS). Docusign Envelope ID: 829F9951-CF2A-8CD2-813D-E44836C630DC City of Renton Department of Community & Economic Development FUNBOX Staff Report to the Environmental Review Committee LUA26-000146, ECF Report of June 8, 2026 Page 2 of 8 ERC_Report_Funbox_260603_v1 PART ONE: PROJECT DESCRIPTION / BACKGROUND The applicant is requesting Environmental (SEPA) Review under the State Environmental Policy Act (SEPA) for an interior tenant improvement and a change of use within an existing commercial tenant space located at 601 S Grady Way, Suite P, within the Renton Village Shopping Center (totaling 426,966 square feet). The proposal would convert an existing vacant retail space into an indoor recreational facility. The site is located on a parcel identified as APN 1923059043 and is zoned Commercial Arterial (CA). The project site is located within the Commercial Arterial (CA) zone, Urban Design District ‘D’ overlay zone and the Rainier Grady Junction overlay zone. The site location is within the Commercial Mixed Use comprehensive land use designation and within the City Center Community Planning Area. No building expansion, exterior façade modification, or changes to existing site access are proposed. The submitted Land Use Master Application specifies the proposed tenant space as approximately 19,900 square feet. The proposal includes interior improvements such as restroom upgrades, non-structural interior walls, HVAC duct work, electrical branch circuits, lighting, and new finishes associated with occupancy of the space as an indoor recreational facility. The general layout of the proposed indoor recreational facility, including restroom locations, play areas, and circulation within the tenant space, is shown on the Floor Plan (Exhibit 11). The project site is developed with an existing multi-tenant commercial building and associated surface parking within the Renton Village Shopping Center. The submitted site plan identifies the proposal as tenant space area of work only and notes that the project does not include any exterior modifications within the scope of work. As described in the Project Narrative (Exhibit 5) and Site Plan (Exhibit 3), the proposal is to convert an existing retail space, estimated at 19,900 square feet, into an indoor recreational facility. According to City of Renton (COR) Maps, the site is mapped within a high seismic hazard area, contains a piped segment of Rolling Hills Creek (Type F), lies partly within FEMA Zone AH special flood hazard areas, and is located within Downtown Wellhead Protection Area Zone 2. The project site is located immediately north of the Renton Village Cleaners cleanup site (Ecology Cleanup Site ID 3328), where soil and groundwater are contaminated with chlorinated volatile organic compounds. A soil vapor extraction (SVE) system is currently operating within a fenced enclosure south of the tenant space. The proposal is limited to interior tenant improvements and does not include work within or adjacent to the SVE system enclosure or other remediation infrastructure. The proposal requires SEPA review because it is a change of use in an existing building that exceeds the 4,000- square-foot categorical exemption threshold. In compliance with RCW 43.21C.240, this environmental review addresses those probable project impacts not otherwise adequately addressed through existing regulations, development standards, and permit review. Based on the materials submitted to date, staff recommends issuance of a Determination of Non-Significance (DNS), subject to final Environmental Review Committee consideration. PART TWO: ENVIRONMENTAL REVIEW In compliance with RCW 43.21C.240, the following environmental (SEPA) review addresses only those project impacts that are not adequately addressed under existing development standards and environmental regulations. A. Environmental Threshold Recommendation Based on analysis of probable impacts from the proposal, staff recommends that the Responsible Officials: Issue a DNS with a 14-day Appeal Period. Docusign Envelope ID: 829F9951-CF2A-8CD2-813D-E44836C630DC City of Renton Department of Community & Economic Development FUNBOX Staff Report to the Environmental Review Committee LUA26-000146, ECF Report of June 8, 2026 Page 3 of 8 ERC_Report_Funbox_260603_v1 B. Mitigation Measures 1. None. C. Exhibits Exhibit 1: Environmental Review Committee (ERC) Report Exhibit 2: Environmental (SEPA) Checklist, dated March 16, 2026 Exhibit 3: Site Plan Exhibit 4: Neighborhood Detail Map Exhibit 5: Project Narrative Exhibit 6: Parking Analysis Exhibit 7: Comments from the Duwamish Tribe, dated May 12, 2026 Exhibit 8: Staff Response Email to Duwamish Tribe Comment Letter, dated May 19, 2026 Exhibit 9: Comment letter from the Department of Ecology, dated May 19, 2026 Exhibit 10: Staff Response Email to Department of Ecology, dated May 19, 2026 Exhibit 11: Floor Plan Exhibit 12: Transportation Generation Memorandum, prepared by Transpo Group, dated September 10, 2025 Exhibit 13: Transportation Concurrency Test Memorandum, prepared by Nathan Janders, dated May 20, 2026 Exhibit 14: Construction Mitigation Description Exhibit 15: Waiver Request Exhibit 16: Advisory Notes D. Environmental Impacts The Proposal was circulated and reviewed by various City Departments and Divisions to determine whether the applicant has adequately identified and addressed environmental impacts anticipated to occur in conjunction with the proposed development. Staff reviewers have identified that the proposal is likely to have the following probable impacts: 1. Earth Impacts: The project site is located within a high seismic hazard area. A Geotechnical Report was not included with the land use application materials as no new structures or significant structural changes to the existing building are proposed. The Environmental Checklist (Exhibit 2) and Construction Mitigation Description (Exhibit 14) indicate that the proposal consists of interior improvements only and does not include grading, excavation, filling, or other exterior ground disturbance. According to the SEPA Environmental Checklist (Exhibit 2), the proposal does not include any exterior work, and no erosion or earth impacts are proposed as part of the change of use. It is anticipated that the City’s adopted building code and construction standards would adequately mitigate any impact of the proposed tenant improvements on the ground of the project site; therefore, no further mitigation is recommended. Mitigation Measures: None recommended. Docusign Envelope ID: 829F9951-CF2A-8CD2-813D-E44836C630DC City of Renton Department of Community & Economic Development FUNBOX Staff Report to the Environmental Review Committee LUA26-000146, ECF Report of June 8, 2026 Page 4 of 8 ERC_Report_Funbox_260603_v1 Nexus: Not applicable. 2. Air Impacts: No exterior scope of work is proposed and no significant air emissions are anticipated with the project. Temporary minor emissions associated with interior construction activity, worker trips, and equipment use may occur during tenant improvement work, but these impacts would be short term and limited in duration. The proposal does not include exterior expansion. Temporary construction-related impacts (noise, dust, and construction traffic) would be minimized through implementation of the applicant’s construction mitigation measures described in the Construction Mitigation Description (Exhibit 14). Emissions from the heavy equipment and large vehicles needed to construct and transport material would be a source of temporary and localized air pollution. Dust and exhaust emission controls would be mitigated by best management practices. No further site-specific mitigation for the identified impacts from typical vehicles and construction exhaust is required. Mitigation Measures: None recommended. Nexus: Not applicable. 3. Water a. Surface Water (including streams, rivers, wetlands, lakes) Impacts: No work is proposed over, in, or adjacent to surface waters and the proposal would not involve surface water withdrawals, diversions, or discharges. The Site Plan (Exhibit 3) shows that the project is confined to an existing developed site and would not alter drainage patterns or impervious surface coverage; any stormwater requirements would be addressed through subsequent permit review. In addition, no exterior scope of work is proposed. According to COR Maps, the broader site contains a piped segment of Rolling Hills Creek (Type F) and those portions of the site are located within FEMA Zone AH special flood hazard areas. Based on the proposal as submitted, which is limited to interior tenant improvements, no probable significant adverse surface water impacts are anticipated. Mitigation Measures: None recommended. Nexus: Not applicable. b. Groundwater Impacts: The proposal would not involve groundwater withdrawal, discharge to groundwater, or on-site disposal systems. According to COR Maps, the site is located within the Downtown Wellhead Protection Area Zone 2. Based on the limited scope of the proposed interior improvements and absent exterior disturbance or groundwater discharge, no probable significant adverse groundwater impacts are anticipated. Mitigation Measures None recommended. Nexus: Not applicable. c. Water Runoff (including stormwater) Impacts: The proposal would not alter drainage patterns and would not generate new runoff because no exterior work is proposed. The site plan similarly indicates that the proposal is limited to the tenant space area of work and does not include exterior site modifications. Docusign Envelope ID: 829F9951-CF2A-8CD2-813D-E44836C630DC City of Renton Department of Community & Economic Development FUNBOX Staff Report to the Environmental Review Committee LUA26-000146, ECF Report of June 8, 2026 Page 5 of 8 ERC_Report_Funbox_260603_v1 A drainage study complying with the 2022 City of Renton Surface Water Design Manual may be required with the land use application and on-site Best Management Practices satisfying Core Requirement 9 may be required to the maximum extent feasible. Based on the proposal as submitted, no probable significant adverse runoff or stormwater impacts are anticipated. Any drainage, utility, or surface water requirements may continue to be addressed through subsequent permit review. Mitigation Measures: None recommended. Nexus: Not applicable. 4. Energy and Natural Resources Impacts: The existing HVAC units are being reused, and lighting and HVAC controls would be provided as required by the Washington State Energy Code. The proposal would rely on existing available utilities and does not include new utility extensions as currently proposed. Given the nature of the proposal as an interior tenant improvement within an existing building, no probable significant adverse impacts related to depletion of energy or natural resources are anticipated based on the materials submitted. Mitigation Measures: None recommended. Nexus: Not applicable. 5. Environmental Health a. Environmental Health Hazards Impacts: According to the SEPA Environmental Checklist (Exhibit 2), no known contamination, hazardous materials, unusual noise, or special environmental health hazards would be associated with the proposal. Interior demolition of existing materials and construction debris generated through tenant improvements may be handled and disposed of in accordance with applicable regulations and permit requirements. The proposal would be subject to building, fire, and life safety review. Based on comments from the Renton Regional Fire Authority, the proposed change of use may trigger installation of an approved fire alarm system because the change of use exceeds the City's 3,000-square-foot threshold, and annual permits may be required for a place of assembly. In response to Department of Ecology comments (Exhibit 9), the SEPA Environmental Checklist has been updated to identify the adjacent Renton Village Cleaners cleanup site (Cleanup Site ID 3328), associated chlorinated VOC contamination, and the presence of an active SVE system near the southwest exterior wall of the building. No probable significant adverse environmental health impacts are anticipated, provided the project proceeds in substantial conformance with the materials submitted and complies with applicable code requirements and permit review conditions. Mitigation Measures: None recommended. Nexus: Not applicable. b. Noise Impacts: Short-term construction activity-related noise impacts would primarily result from the interior improvements proposed as part of the project. Construction activity hours are restricted to the hours between seven o’clock (7:00) a.m. and eight o’clock (8:00) p.m., Monday through Friday. Work on Saturdays shall be restricted to the hours between nine o’clock (9:00) a.m. and Docusign Envelope ID: 829F9951-CF2A-8CD2-813D-E44836C630DC City of Renton Department of Community & Economic Development FUNBOX Staff Report to the Environmental Review Committee LUA26-000146, ECF Report of June 8, 2026 Page 6 of 8 ERC_Report_Funbox_260603_v1 eight o’clock (8:00) p.m. No work shall be permitted on Sundays. Haul hours shall be restricted to the hours between eight-thirty (8:30) a.m. and three-thirty (3:30) p.m., Monday through Friday, unless otherwise approved in advance by the Development Services Division. All noise levels would be required to comply with City of Renton code (Chapter 7 Noise Level Regulations) and Washington Administrative Code (WAC 173-60, Maximum Environmental Noise Levels). The anticipated temporary noise impacts would be those commonly associated with tenant improvement construction. No further site-specific mitigation is proposed. Mitigation Measures: None recommended. Nexus: Not applicable. 6. Light and Glare Impacts: No additional exterior lighting is proposed and no light or glare impacts are associated with the completed project. If future exterior lighting is proposed, it is anticipated that dark-sky-oriented fixtures could be considered during permit review. Mitigation Measures: None recommended. Nexus: Not applicable. 7. Historic and Cultural Preservation Impacts: No archaeological studies were submitted with the project application materials. Staff received a comment letter provided by a representative of the Duwamish Tribe (Exhibit 7) which was submitted to City staff on May 12, 2026, regarding the project’s proximity to known archaeological sites. The DAHP recommends professional archaeological monitoring of all ground disturbing activities. The proposal is limited to interior tenant improvements within an existing developed commercial building. The project scope does not include any groundbreaking work, and the existing buildings are proposed to remain; therefore, no additional mitigation measures are proposed. The current proposal does not include exterior excavation or other ground disturbance. No probable significant adverse impacts to historic or cultural resources are anticipated from the project as submitted. If future revisions introduce ground disturbance, additional review may be warranted at that time. Mitigation Measures: None recommended. Nexus: Not applicable. 8. Transportation Impacts: The site is served by existing public streets and transit facilities, and a traffic impact study was prepared for the proposal. No new trips are anticipated with the proposed change of use to an indoor recreational facility (Funbox) from a former retail space (Rite Aid), and the project would not modify existing driveway access to S Grady Way or S Renton Village Place. As shown on the Neighborhood Detail Map (Exhibit 4), the site is embedded in an existing commercial center with direct access to S Grady Way and S Renton Village Place. A trip generation review was required because the project includes a change of use that could potentially result in additional traffic and because a Traffic Impact Analysis (TIA) is required if more than 20 new AM or PM peak hour trips are generated. Trip generation characteristics for the proposed use are summarized in the Trip Generation Memorandum prepared by Transpo Group (Exhibit 12), which indicates a reduction in weekday AM peak hour trips relative to the former retail use. Based on the Institute of Transportation Engineers (ITE) trip rates for the proposed indoor recreational use, the 20,000-square-foot tenant space is estimated to generate approximately 30 weekday PM peak hour trips; however, when compared to the former retail use, the overall effect is a reduction of Docusign Envelope ID: 829F9951-CF2A-8CD2-813D-E44836C630DC City of Renton Department of Community & Economic Development FUNBOX Staff Report to the Environmental Review Committee LUA26-000146, ECF Report of June 8, 2026 Page 7 of 8 ERC_Report_Funbox_260603_v1 approximately 43 weekday AM peak hour trips and no net increase in weekday PM peak hour trips. The operating hours for Funbox typically begin at eleven o’clock (11:00) AM, which is outside of the AM peak period of seven to nine o’clock (7:00–9:00) AM, and extend into the evening, with weekday hours generally from eleven o’clock (11:00) AM to nine o’clock (9:00) PM and weekend hours generally from ten o’clock (10:00) AM to nine o’clock (9:00) PM. The Development Engineering division completed a Transportation Concurrency Test (Exhibit 13) for the proposal pursuant to RMC 4‑6‑070.D. The memorandum, dated May 20, 2026, concludes that the project passes the City’s Traffic Concurrency Test, based on consistency with the citywide Transportation Plan, the availability of sufficient remaining trip capacity in the adopted concurrency management system, and the requirement that the project be subject to payment of transportation impact fees at the time of building permit issuance. The memo also notes that any required site‑specific street frontage improvements, along with any additional off‑site improvements identified through land use and permit review, must be completed prior to issuance of a certificate of occupancy. A Traffic Impact Analysis was not required because the proposed change of use does not generate 20 or more new AM or PM peak hour trips and results in no new net daily trips on the City’s transportation system. Based on the reduction in peak hour trips, the absence of changes to site access, and the positive concurrency finding, the proposal is not anticipated to result in new significant transportation impacts; therefore, no additional mitigation measures are recommended. As documented in the Parking Analysis (Exhibit 6), the existing shared parking supply for the Renton Village Shopping Center is adequate to serve the proposed change of use without additional stall construction. Mitigation Measures: None recommended. Nexus: Not applicable. 9. Public Services Impacts: No increased demand for public services is anticipated as a result of the change of use. Submitted documents indicate that fire review was completed and that existing fire flow and hydrant requirements are unchanged for the proposed change of use, though fire alarm improvements and annual permits for a place of assembly will be required through subsequent permit review. Mitigation Measures: None recommended. Nexus: Not applicable. 10. Utilities Impacts: It is anticipated that existing utilities would serve the project and that no new utilities are needed. Submitted documents indicate that the project is within the City's water and sewer service area and note that utility review may require improvements such as a reduced pressure backflow assembly and other utility-related upgrades depending on permit review. These utility issues may be addressed through the City's standard permit review processes. No probable significant adverse utility impacts are anticipated based on the application materials reviewed to date. Mitigation Measures: None recommended. Nexus: Not applicable. Docusign Envelope ID: 829F9951-CF2A-8CD2-813D-E44836C630DC City of Renton Department of Community & Economic Development FUNBOX Staff Report to the Environmental Review Committee LUA26-000146, ECF Report of June 8, 2026 Page 8 of 8 ERC_Report_Funbox_260603_v1 E. Comments of Reviewing Departments The proposal has been circulated to City Department and Division Reviewers. Where applicable, their comments have been incorporated into the text of this report and/or “Advisory Notes” to the applicant. ✓ Copies of all Review Comments are contained in the Official File and may be attached to this report. The Environmental Determination decision will become final if the decision is not appealed within the 14- day appeal period (RCW 43.21.C.075(3); WAC 197-11-680). Environmental Determination Appeal Process: Appeals of the environmental determination must be filed in writing on or before 5:00 p.m. on June 22, 2026. Appeals must be submitted electronically to the City Clerk at cityclerk@rentonwa.gov or delivered to City Hall 1st floor Lobby Hub Monday through Friday. The appeal fee, normally due at the time an appeal is submitted, will be collected at a future date if your appeal is submitted electronically. The appeal submitted in person may be paid on the first floor in our Finance Department. Appeals to the Hearing Examiner are governed by RMC 4-8-110 and additional information regarding the appeal process may be obtained from the City Clerk’s Office, cityclerk@rentonwa.gov. Docusign Envelope ID: 829F9951-CF2A-8CD2-813D-E44836C630DC CITY OF RENTON DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT STAFF REPORT TO THE ENVIRONMENTAL REVIEW COMMITTEE EXHIBITS Project Name: FUNBOX Land Use File Number: LUA26-000146, ECF Date of Meeting June 8, 2026 Staff Contact Mariah Kerrihard Associate Planner Project Contact/Applicant Muhammad SiddiqueError! Reference source not found. Error! Reference source not found. Project Location 601 S Grady Way, Suite P, Renton, WA 98057 (APN: 1923059043) The following exhibits are included with the ERC Report: Exhibit 1: Environmental Review Committee (ERC) Report Exhibit 2: Environmental (SEPA) Checklist, dated March 16, 2026 Exhibit 3: Site Plan Exhibit 4: Neighborhood Detail Map Exhibit 5: Project Narrative Exhibit 6: Parking Analysis Exhibit 7: Comments from Duwamish Tribe, dated May 12, 2026 Exhibit 8: Staff Response Email to Duwamish Tribe Comment Letter, dated May 19, 2026 Exhibit 9: Comment letter from the Department of Ecology, dated May 19, 2026 Exhibit 10: Staff Response Email to Department of Ecology, Dated May 19, 2026 Exhibit 11: Floor Plan Exhibit 12: Transportation Generation Memorandum, prepared by Transpo Group, dated September 10, 2025 Exhibit 13: Transportation Concurrency Test Memorandum, prepared by Nathan Janders, dated May 20, 2026 Exhibit 14: Construction Mitigation Description Exhibit 15: Waiver Request Exhibit 16: Advisory Notes Docusign Envelope ID: 829F9951-CF2A-8CD2-813D-E44836C630DC