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HomeMy WebLinkAboutC_Multi_Service_CUP_Revision_Request_LUA18-000127.pdf memo City of Renton To: Matthew Herrera, Senior Planner From: Hannah Bahnmiller, AmeriCorps VISTA Sunset Area Community Development Specialist CC: Vanessa Dolbee, Current Planning Manager Mark Gropper, Executive Director, Renton Housing Authority Mark Santos-Johnson, Economic Development Manager Date: 7 December 2018 Re: Sunset Area Multi-Service & Career Development Center Conditional Use Permit Revision (LUA 18-000127) Background The Renton Housing Authority was issued a Conditional Use Permit by the Hearing Examiner on April 10th, 2018 to the locate the proposed Sunset Area Multi-Service and Career Development Center (“Center”) in the former Renton Highlands Library building located at 2902 NE 12th St. This application was submitted by Schemata Workshop. The permit is filed under the land use permit number LUA 18- 000127. In the original proposal, improvements were stated to support multiple services, and listed examples included job training assistance, ESL adult education classes, and potentially a foodbank. Request The Renton Housing Authority is requesting a revision to this Conditional Use Permit as the original Conditional Use Permit application did not accurately identify the range of uses that have been planned for the Center (in many cases dating back to early-2015 when the first HUD Choice Neighborhoods Implementation grant application was submitted for the Sunset Area Transformation Plan), and we want to fully disclose and include both the planned and potential future uses. We are requesting to expand the range of services allowed to be provided at the Center to broadly include social, community health, and human services (see examples below), however excluding shelter services, drug treatment or safe drug provisions services, and other intensive uses that may have a negative impact on the surrounding community. This revision would not impact the building area, nor expand renovations to include exterior improvements or additions. Rationale: It is unclear why Schemata Workshop did not include a complete list of the services envisioned for the Center in the original Conditional Use Permit application. In fact, a broader range of services have been planned for the Center to respond to needs of the residents in the Sunset Area and surrounding 2 neighborhood, dating back to the creation of the Sunset Area Transformation Plan in early-2015. For example, the 2016 HUD Choice Neighborhoods Implementation grant application included a broad range of services to be provided at the Center by Neighborhood House, HealthPoint, St. Vincent de Paul Society – Centro Rendu, Renton Area Youth and Family Services (RAYS), the Renton Salvation Army, the Workforce Development Council of Seattle-King County, and potentially the Renton Housing Authority. The services envisioned at that time included integrated health services (including behavioral healthcare counselling and prevention services, health education, basic health services); counselling and case management services; child and/or adult learning, tutoring, and mentoring; employment counseling and services, job training, and legal assistance. Again, many of these services have been planned since the early stages of creation of the Sunset Area Transformation Plan dating back to early-2015, preceding the permit approval by the Hearing Examiner. The broader range of services were also included in material provided to the Renton City Council earlier this year when they approved a $400,000 capital grant for the Center on June 25th, 2018. (See Attachment 1) In March 2018, Schemata Workshop held a design charrette with potential service providers for the Center, including RAYS, St. Vincent de Paul Society – Centro Rendu, HealthPoint, Neighborhood House, and Renton Housing Authority, plus representatives from the City. Based on input from these entities, a conceptual floor plan for the Center was developed (See Attachment 2). Unfortunately, another oversight occurred and Schemata Workshop did not update the floor plan in the Conditional Use Permit application to reflect the most recent configuration. Since its development, the conceptual floor plan has been the primary tool for communicating proposed services for the Center, and it has been included in grant applications, public facing materials, and material provided to the Renton City Council. The development process has proceeded based on the conceptual floor plan and service partners included, who are anticipated to provide integrated health services (including potential dental care), counselling services, and case management and community education services. We are requesting this revision in light of a highly unreasonable burden to submit a new Conditional Use Permit. This application would be unreasonable given the $2 million in funding currently committed to the project, including $885,000 from the Renton Housing Authority, $400,000 from the State of Washington, $600,000 from the Bill and Melinda Gates Foundation, and $400,000 from the City of Renton, all of which was granted based on a multi-service center proposal that included uses outside the range of the original Conditional Use Permit. Undergoing another application process would severely delay the current development timeline, which seeks to have partners confirmed in January 2019 so that the design drawings can be created to start renovations in the fall 2019 with occupancy projected for the end of the first quarter 2020. (See Attachment 3). The Renton Housing Authority respectfully requests the consideration of the revision of the Conditional Use Permit to expand the range of services allowed on the site to include social, community health, and human services, excluding shelter services, drug treatment or safe drug provisions services, and other intensive uses that may have a negative impact on the surrounding community. 3 Attachments: Attachment 1: “Sunset Multi-Service & Career Development Center.” Presentation to Committee of the Whole on June 25th, 2018. Attachment 2: “Conceptual Floor Plan.” Developed by Schemata Workshop. Attachment 3: “Sunset Multiservice Center Feasibility Milestones.” Developed by Brawner. $400,000 Capital Grant to Renton Housing Authority (“RHA”) to help with renovations of the facility Committee of the Whole –June 25, 2018 Sunset Multi-Service & Career Development Center •Ethnically diverse, low-income neighborhood in the Renton Highlands •Area includes many “temporary” housing units built for WWII •High-priority redevelopment & community revitalization area for the City since 2000 •City adopted Sunset Area Community Revitalization Investment Strategy in 2009 •Highest priority –support the Renton Housing Authority’s Sunset Terrace public housing redevelopment project •RHA partnered with the City to complete the Sunset Area Planned Action EIS in 2011 Sunset Area Former Renton Highlands Library •Located at 2902 NE 12th Street –near the center of the Sunset Area •Built & operated by City as a library from 1973 to 2010 •Operated by King County Library System as a library from 2010 to March 2016 when new library opened •Property is part of the Sunset Area Community Revitalization & Sunset Terrace Redevelopment Plan Former Renton Highlands Library •City & RHA completed a Community Needs Assessment for Human Services & Housing for Renton & the Sunset Area in 2014 •The assessment identified significant unmet human service needs in the Sunset Area, including economic opportunity, basic needs, & health and wellness Sunset Area Human Service Needs •City, RHA, Renton School District, Neighborhood House, & many other partners created the Sunset Area Transformation Plan (“Plan”) in 2015 •The Plan responded to housing, critical community improvements, & education and human service needs in the Sunset Area •Renton used the Plan to apply for a HUD Choice Neighborhoods Implementation (“CNI”) grant in 2015 & 2016 Sunset Area Transformation Plan “(Plan”) •Unfortunately, the Plan did not receive a HUD CNI grant in either 2015 or 2016 •Nonetheless, the City, RHA, Renton School District, Neighborhood House, & other partners are working to move forward with as much of the Plan as possible with other resources Current Status of Sunset Area Transformation Plan •Sunset Neighborhood Park •Sunset Multi-Service & Career Development Center •Sunset Court Apartments (50 units of new affordable housing) •Sunset Crest Townhomes (12 new units for affordable homeownership) •RHA affordable housing modernization project •Renton Innovation Zone Partnership Current Sunset Area Transformation Plan Projects •Use of the former library for the Center was envisioned as an integral part of the Plan •Goal to better respond to the human services & career development needs of residents in the Sunset Area & surrounding neighborhoods •City executed a letter of intent in 2015, 2016, & 2017 to sell the former library to RHA for the Center Sunset Multi-Service & Career Development Center (“Center”) •The City sold the former library to RHA for the fair market value of $885,000 in March 2018 •RHA paid $85,000 to City at closing & executed promissory note to the City for the balance of $800,000 with an interest rate of 1.7% APR •RHA obligated to pay City $160,000 per year plus accrued interest for five years for balance Sale of Former Library to RHA for Center •City, RHA, & Neighborhood House have been working since 2015 with multiple partners on a plan to acquire, renovate, & use the former library to provide services at the Center •Current partners include RHA, Neighborhood House, HealthPoint, St. Vincent de Paul Society & Centro Rendu, & Renton Area Youth & Family Services (RAYS) (collectively “Current Partners”) •Open to additional interested partners Service Provider Partners for Center •Current Partners envision providing the following services at the Center: •Child and/or adult learning, tutoring & mentoring •Employment counseling and services & job training •Health services, behavioral counseling & case management •Other (based on needs & resources) Potential Services to be Provided at Center •Current Partners worked with Schemata Workshop to create a design and renovation plan to effectively use the former library for the Center Renovation Plans for Center •Acquisition $885,000 •Construction $1,785,764 •Construction & contractor costs, contingencies, & WSST •Soft Costs $348,772 •Architectural & engineering, permits, reports, legal, etc. •TOTAL $3,019,536 Acquisition & Renovation Budget for Center •Neighborhood House, as the People Implementation Entity for the CNI grant & Plan, has been working with RHA & the City since late-2016 to lead a capital campaign for the Center •RHA is using it’s affiliated non-profit entity, the Renton Regional Non-Profit Housing Corporation, to apply for some grants Capital Campaign for Center •RHA (acquisition funding commitment) $885,000 •State of WA capital grant (committed) $412,000 •Bill & Melinda Gates Foundation (committed) $600,000 •City of Renton (pending) $400,000 •Funding Gap (other public & private sources) $722,536 •TOTAL $3,019,536 * 63% of funding secured! Acquisition & Renovation Funding for Center* •Goal is to secure the balance of capital funds ASAP to proceed with design work, complete renovations, & open (if possible) in 2019 •Working to establish a MOU with Current Partners to help cover operational costs (service coordinator, utilities & maintenance), plus raise other seed & operating funds for Center Current Plans & Timeline for Center •In response to issues discussed at the 5/7/2018 Finance Committee meeting, staff worked with the City Attorney’s office & RHA to create LOI for the $400,000 capital grant •LOI provides additional background information & outlines RHA’s agreement to enter into an agreement as a condition of the City’s award of the $400,000 capital grant for the Center Letter of Intent (“LOI”) for $400,000 Capital Grant •RHA agrees to pay the City $400,000 of the loan for the former library acquisition at least 30 days in advance of when RHA needs the capital grant •RHA agrees to make annual payments to the City of $160,000 per year, plus interest, until the balance of the loan is repaid •RHA agrees to pay the City the remaining balance, $325,957, plus interest, for the 2017 Sunset Terrace demolition loan by the earlier of 12/31/2019, or the sale of the property LOI Provisions •RHA agrees to use the former library for a period of at least 10 years when the Center opens after renovations •RHA agrees to provide services at the Center to respond to needs of residents in the Sunset Area & surrounding neighborhoods •Actual services will be determined based on the partners, needs, & available funding over the 10 year period LOI Provisions –Continued •The Center is an integral part of the Sunset Area Transformation Plan & a critical community improvement to more effectively respond to the human service needs of residents in the Sunset Area & surrounding neighborhoods •The City, RHA, Renton School District, Neighborhood House & other partners have been working since 2015 to create the Center •The City’s $400,000 capital grant will help leverage the balance of the capital funds for the Center Conclusion Recommendation •Staff recommends: •Award a $400,000 capital grant to RHA to help renovate the former library for the Center, subject to an acceptable agreement to be approved by Council established between the City & RHA •Authorize Mayor to enter into & execute the Letter of Intent with RHA for the $400,000 City capital grant Questions Future Sunset Area Multi-Service & Career Development Center 1 November 201828 February 202012/1/20181/1/20192/1/20193/1/20194/1/20195/1/20196/1/20197/1/20198/1/20199/1/201910/1/201911/1/201912/1/20191/1/20202/1/20209/1/2018 ‐ 10/2/2018PROMOTIONAL PHASESUNSET MULTISERVICE CENTERFEASIBILITY MILESTONES12/18/2018OWNERSHIP STRUCTURE DETERMINATION10/31/2019CLOSING/CONSTRUCTION START2/28/2020CONSTRUCTION COMPLETE2/26/2019SELECT DESIGN/BUILDTEAM3/26/2019INITIAL SCHEMATICS1/29/2019INITIAL OCCUPANTS SELECTED5/3/2019DESIGN/DRAWINGS 50% COMPLETE8/27/2019PERMIT SUBMITTAL12/12/2019LEASES SIGNED7/2/2019INITIAL COST ESTIMATE10/3/2019FINAL GMP3/1/2019 ‐ 10/31/2019PRE‐DEVELOPMENT PHASE12/31/2019STATE FUNDS EXPENDED10/31/2019 ‐ 2/28/2020DEVELOPMENT PHASE11/1/2018 ‐ 3/1/2019FEASIBILITY PHASE