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
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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.
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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