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HomeMy WebLinkAboutAgendaHome PLANNING & DEVELOPMENT COMMITTEE January 12, 2015 3:30 p.m. 1. AGENDA a. Sunset Area Redevelopment ResoluƟon b. Ordinance amending RMC 4‐1‐210.C., Rental Housing IncenƟve for the "Affordable Housing" DefiniƟon c. Choice Neighborhoods IniƟaƟve ResoluƟon d. 2015 Comprehensive Plan Planning & Development Committee - 12 Jan 2015 https://renton.civicweb.net/filepro/document/38146/Planning _ Develop... 1 of 2 7/18/2019, 2:28 PM COMPREHENSIVE PLAN UPATE – Phase II Background: • The City began the mandatory Comprehensive Plan update in early 2013 after the adoption by the City Council of the work program and public participation program (see attached). o One of the primary objectives of the update, besides complying with all mandatory requirements, is to make the Comp Plan a much more refined document that is easier to read and understand, articulates a clearer vision for growth for the next 20 years, uses pictures, illustrations, and matrices to communicate information more effectively, and to reference other adopted plans rather than summarize or establish additional policies in the Comp Plan. o The Utilities, Economic Development, Parks, Housing and Human Services, Capital Facilities, and Community Planning elements have been completed with this new approach as Phase I of the update. o Significant work has been completed on the Land Use element and the Transportation element. Phase II: • Community Planning: Goals and policies organize the intent and objectives of the community planning initiative. • Capital Facilities: Goals and policies related to the facilities and services provided by the City to residents and businesses. o Identifies level of service goals for water, surface water, sewer, fire and emergency services, police, parks and recreation, schools, and transportation. • Housing and Human Services: This update consolidated these two previously separate elements. o Builds off the Community Needs Assessment o Establishes a framework for a Housing Plan and Human Services Strategy, both of which are anticipated to be developed in the future. o Establishes goals and polices for housing all of Renton’s population, including low income, those with disabilities, aging residents, and the homeless. o Emphasizes importance of health and mobility and draws links to other related elements, such as transportation and land use. Next Steps: • Work on the Transportation and Land Use elements is underway. • All work will be done in conjunction with the Planning Commission and includes public participation. • Final approval and completion is anticipated for Spring 2015. City of Renton Comprehensive Plan Update Public Participation Plan January 2013 1 Introduction The City of Renton is updating its Comprehensive Plan in accordance with the Washington State Growth Management Act (GMA) governed by RCW 36.70A. In 1990, the legislature adopted GMA because “uncoordinated and unplanned growth, together with a lack of common goals expressing the public's interest in the conservation and the wise use of our lands, pose a threat to the environment, sustainable economic development, and the health, safety, and high quality of life enjoyed by residents of this state.*” Thirteen adopted goals guide the development of Comprehensive Plans under GMA. These goals include: encouraging urban growth, reducing sprawl, promoting efficient transportation, ensuring availability of affordable housing, encouraging economic development, protecting property rights, timely permit processing, maintaining natural resource industries, retaining open space and recreation opportunities, protecting the environment, ensuring public participation and coordination between adjacent jurisdictions, providing adequate public facilities and services, and the preservation of sites of historical and archaeological significance. While all the goals of the Growth Management Act should be pursued in local Comprehensive Plans, it is up to each community to determine how to best balance these goals. Comprehensive Plans establish policies for community growth and development for the next 20 years. GMA requires that cities include certain “Elements” in their Comprehensive Plans. Typically these Elements are distinct chapters in the Plan: Land Use, Transportation, Capital Facilities, Utilities, Housing, Economic Development, Parks and Recreation, and Shoreline Management (for communities subject to the Shoreline Management Act). Renton has also developed optional elements on topics of importance to our community: Environment, Community Planning, Community Design, and Human Services. Most jurisdictions in the state are required to adopt a Comprehensive Plan consistent with the GMA and to update their plan every eight years. Annual amendments may be made to a Comprehensive Plan, but the * RCW 36.70A.010 2 periodic update is required to assess the plan as a whole. Renton’s last major Comprehensive Plan update was adopted in 2004. However, the legislature extended the deadline statewide, so Renton’s periodic update is now required to be adopted by June 30, 2015. Project Overview It will take about two years to complete the Comprehensive Plan update. The first step in the process will be to evaluate the City’s Vision, which summarizes the most important principles driving the Comprehensive Plan. Renton’s Vision also defines those priorities and qualities that make our community distinctive and unique. Efforts to define the Vision will shape the review and amendment of the individual elements in the second, and longest, phase of the project. Review of Comprehensive Plan Elements will be staggered over about a year and a half. Review of necessary changes to the Renton Municipal Code will also be included during this time. Environmental Review, including the production of a new Environmental Impact Statement for the Comprehensive Plan, will be the last phase of the project. Project Timeline Public participation is a key component of this two year planning effort. This Public Participation Plan has been created for two purposes. First is to identify potential stakeholders and invite their participation in the planning process. Second is to guide public participation efforts throughout the process to ensure early and continuous involvement in decision-making. Efforts to ensure public participation will continue to evolve throughout the life of the project. Roles and Responsibilities The City of Renton is responsible for the update of the Comprehensive Plan in compliance with GMA. This responsibility includes actively inviting public Project Framing and Visioning Winter 2013- Spring 2013 Element Review and Revision Spring 2013- Summer 2014 Environmental Review Spring 2014- Spring 2015 Final Approval Spring 2015 3 comment and coordinating with state, regional, and county planning policies in the Growth Management Act, the Puget Sound Regional Council VISION 2040 Plan, and the King County Countywide Planning Policies. The primary contact person for the City of Renton is: Erika Conkling Department of Community and Economic Development 1055 S. Grady Way Renton, WA 98057 (425) 430-6578 PlanUpdate@rentonwa.gov The Renton Planning Commission will take the lead as the advisory body for this project. Planning Commission meetings are regularly scheduled and open to the public with opportunities for the public to speak at each meeting on both agenda items and non-agenda items. Staff will ensure that City Council receives regular briefings on the work of the Planning Commission. Both the Planning and Development Committee and the Committee of the Whole will receive updates on this project. Committee of the Whole briefings will be more general in nature and Planning and Development Committee briefings will cover more specifics. Council committee meetings are regularly scheduled, announced each week during the regular City Council meeting, and open to the public. Committee of the Whole meetings are also televised live on Channel 21 and subject to replay throughout the week, plus are available through live streaming and video archive the City’s website www.rentonwa.gov. Public Participation Plan State law requires the City to invite citizens and stakeholders to participate in the Comprehensive Plan update process. Public participation is also very important to the City of Renton as an effective tool to balance competing interests and needs that are inherent in land use decision making processes. It is important that information be made available so any interested person can understand the materials and participate. The City will encourage participation in several ways. 4 Stakeholders A variety of groups, agencies, and individuals may have interest in the update of Renton’s SMP. These stakeholders can be categorized as follows: o Other Governmental Agencies • Adjacent jurisdictions: Kent, Tukwila, Seattle, Newcastle, King County • State agencies: Washington State Department of Commerce, Washington State Department of Ecology, Washington State Department of Transportation, and Washington Department of Fish and Wildlife. • Regional Organizations: Puget Sound Regional Council • Tribal government: Muckleshoot Indian Tribe o Quasi-governmental Groups • School Districts: Renton School District, Issaquah School District, Kent School District • Renton Housing Authority o Residents and Property Owners • Neighborhood Associations o Business Groups and Associations • Business Organizations: Renton Chamber of Commerce, Mayor’s Business Executives Forum • Trade Organizations: Master Builders Association of King and Snohomish Counties, Seattle-King County Association of Realtors o Environmental Organizations and Conservation Groups • Local groups: Sustainable Renton, Herons Forever • Regional groups: Futurewise, Washington Environmental Council, • Local Chapters of National groups: Sierra Club, Audubon Society, Trust for Public Land, Society for Ecological Restoration Project Outreach Initial public outreach will include reaching out to both the general public and identified stakeholders to invite participation. Stakeholders will be invited to participate through email, post, phone calls, or in-person contact. 5 Outreach to the general public will include posters in public places such as libraries, community facilities, and businesses. Renton residents will be sent a notice in their utility billing statements, and project kick-off information will be circulated in the Renton CityNews- a bi-monthly City newsletter received by most households, as well as sent through the Neighborhood Program. Throughout the process of the Comprehensive Plan update, the City will maintain several channels for communication and public participation. One of the primary tools will be a City webpage dedicated to the project: www.rentonwa.gov/planupdate. This website will include notices for upcoming public meetings, documents available for review, and other information related to the project. Visitors to the website can sign up to be on the interested parties list. Ideally, the website would include interactive features that would allow on-going exchange of information and ideas related to the project. A dedicated email address, PlanUpdate@rentonwa.gov, has also been established specifically for questions and comments on this project. Stakeholders who express interest in participating will continue to receive notices and informational mailings from the City. Joining the interested parties list by providing contact information to receive updates about the project by email or post will be the best way for an individual to consistently receive notices and messages about the process. A series of public workshops and public hearings will be held throughout the project. Prior to public workshops or public hearings, notices about these events will be posted in general community locations and distributed through various City channels including CityNews, the Neighborhood Program, and Channel 21 and distributed through methods required for public hearings by the Renton Municipal Code. These methods are intended to inform the general public, or those who have not provided individual contact information, of key opportunities for participation in the Comprehensive Plan update. 6 Public meetings held by the Planning Commission, City Council, and Council Committees, will be noticed according to the standard procedures for those bodies, as well as on the project website. All outreach efforts will be documented by the City and available for public review upon request. Document Review Update of the Comprehensive Plan will result in several work products that require review. Some of these products include: draft policy changes, draft code changes, issue papers, staff reports, and environmental review documents. It is expected that the City will consult with stakeholders in the development of documents and other work products for this update. Once drafted, all documents will be available for official review by the public. Comment periods will be clearly specified and advertised through the means identified in this public participation plan. The City will maintain a database of all comments received throughout the Comprehensive Plan update, which will be available for public review upon request. The State Environmental Policy Act (SEPA) process offers additional opportunities to seek public input. The City anticipates integrating SEPA review into the proposal through the Growth Management Act/SEPA integration process. Prior to Planning Commission making a final recommendation on the amended Comprehensive Plan and any related changes to the Renton Municipal Code, the City will prepare an Environmental Impact Statement, which provides the opportunity for additional specific input on environmental impacts of the proposal. Conclusion The update of Renton’s Comprehensive Plan is a collaborative effort in which the City will engage the public, businesses, governmental agencies, and other interested groups. The City website, public postings, community events, public meetings, and workshops will be used to reach out to interested parties and get them involved in the process. CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Amendment to RMC 4-1-210C, Rental Housing Incentive, for "Affordable Housing" Definition Meeting: REGULAR COUNCIL - 05 Jan 2015 Exhibits: Issue Paper Draft Ordinance Submitting Data: Dept/Div/Board: Community and Economic Development Staff Contact: Mark Santos-Johnson, ext. 6584 Recommended Action: Refer to Planning & Development Committee Fiscal Impact: Expenditure Required: $ Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: The Renton Housing Authority plans to use more than $30 million in proceeds from federal low income housing tax credits to help finance four Sunset Area Transformation Plan housing projects with 229 units. Amending the definition of “affordable housing” in RMC 4-1-210C, Rental Housing Incentive, will help leverage additional public and private funds to support affordable multi-family rental housing development in the Sunset Area and, more specifically, facilitate use of federal low income housing tax credit financing in new multi-family housing development. The amendment supports the City’s vision as the “Center of Opportunity in the Puget Sound region where businesses and families thrive” and the Sunset Area Community Investment Strategy. STAFF RECOMMENDATION: Adopt an ordinance to amend the "affordable housing" definition in RMC 4-1-210C, Rental Housing Incentive, to help leverage additional public and private funds to support affordable multi-family rental housing development in the Sunset Area and, more specifically, to facilitate use of federal low income housing tax credit financing in new multi-family housing development. DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:December 29, 2014 TO:Don Persson, Council President Members of the Renton City Council VIA:Denis Law, Mayor FROM:C.E. “Chip” Vincent, CED Administrator (x 6588) STAFF CONTACT:Mark Santos-Johnson, Community Development Project Manager (x6584) SUBJECT:Amendment to RMC 4-1-210C, Rental Housing Incentive, for “Affordable Housing” Definition ISSUE: Should the City amend the “affordable housing” definition in RMC 4-1-210C, Rental Housing Incentive? RECOMMENDATION: Adopt an ordinance to amend the “affordable housing” definition in RMC 4-1-210C, Rental Housing Incentive, to help leverage additional public and private funds to support affordable multi-family rental housing development in the Sunset Area and, more specifically, to facilitate use of federal low income housing tax credit financing in new multi-family housing development. BACKGROUND SUMMARY: The City is currently working with the Renton Housing Authority (RHA), the King County Housing Authority, the Renton School District, Neighborhood House, and other public and private entities to create a U.S. Housing and Urban Development Department (HUD) Choice Neighborhoods Initiative (CNI) implementation grant application for the Sunset Area Transformation Plan. The HUD CNI grant would potentially provide up to $30 million to support the Sunset Area Community Revitalization efforts and the Sunset Terrace Redevelopment. RHA has four new multi-family rental housing projects included in the Sunset Area Transformation Plan. The four projects have a total of 229 new multi-family rental housing units, including 157 units affordable to households at or below 60% of median income and 72 mixed- income units affordable to households at or below 120% of median income. See the attached map for the housing project locations. Don Persson, Council President Page 2 of 2 December 29, 2014 The four Sunset Area Transformation Plan housing projects have a total budget of approximately $75 million. If RHA secures a CNI grant, they expect to use more than $30 million in proceeds from federal low income housing tax credits as provided for in Section 42 of the Internal Revenue Code as part of the funding for the four housing projects. Unfortunately, the federal low income housing tax credits use a different rent standard than provided for in the definition of “affordable housing” in Subsection 4-1-210C.2.a, Rental Housing Incentive. To help leverage additional public and private funds to support multi-family rental housing development in the Sunset Area and, more specifically, to facilitate use of the federal low income housing tax credit financing in new multi-family housing development, staff recommends amending the “affordable housing” definition in RMC 4-1-210C.2.a. to read as follows: 2.a. “Affordable housing” means residential housing that is rented by a low-income household whose monthly housing costs, including rent and utilities other than telephone, do not exceed thirty percent of the household’s monthly income. However, if the multi-family housing project is funded with federal low-income housing tax credits (LIHTC) as provided for in Section 42 of the Internal Revenue Code, a unit will be considered affordable housing if it is rented at or below the rental rate for a household at 60% of the King County median income under the LIHTC program rules with a deduction for utility costs, if applicable. The King County LIHTC rents are published annually by the Washington State Housing Finance Commission and are based on unit size assuming occupancy of 1 person for a studio unit and 1.5 persons per bedroom. CONCLUSION: The Renton Housing Authority plans to use more than $30 million in proceeds from federal low income housing tax credits to help finance four Sunset Area Transformation Plan housing projects with 229 units. Amending the definition of “affordable housing” in RMC 4-1-210C, Rental Housing Incentive, will help leverage additional public and private funds to support affordable multi-family rental housing development in the Sunset Area and, more specifically, facilitate use of federal low income housing tax credit financing in new multi-family housing development. The amendment supports the City’s vision as the “Center of Opportunity in the Puget Sound region where businesses and families thrive” and the Sunset Area Community Investment Strategy. Enc.Draft Ordinance cc: Jay Covington, CAO Jason Seth, City Clerk Iwen Wang, Administrative Services Administrator Terry Higashiyama, Community Services Administrator Gregg Zimmerman, Public Works Administrator Cliff Long, Economic Development Director Mark Santos-Johnson, Community Development Project Manager 1 CITY OF RENTON, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 4-1-210, WAIVED FEES, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED “CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON”, BY AMENDING THE WAIVER OF CERTAIN DEVELOPMENT AND MITIGATION FEES. WHEREAS, on August 27, 2001, the Renton City Council approved Ordinance No. 4913 (codified in RMC 4-1-210B) to allow certain development and mitigation fees for housing that is for sale to be waived to encourage new owner-occupied housing in Downtown Renton; and WHEREAS, on February 1, 2010, the City Council approved Ordinance No. 5524 (codified in RMC 4-1-210B) to allow certain development and mitigation fees for housing that is for sale to be waived to encourage new owner-occupied housing in the Sunset Area; and WHEREAS, on August 1, 2011, the City Council approved Ordinance No. 5617 (codified in RMC 4-1-210C) to allow certain development and mitigation fees for rental housing to be waived to encourage new multi-family rental housing in the Sunset Area; and WHEREAS, on August 20, 2013, the City Council approved Ordinance No. 5668 to extend the sunset for these development and mitigation fee waivers to December 31, 2015, unless extended by City Council action; and WHEREAS, the provisions of Subsection 4-1-210B, Owner-Occupied Housing Incentive, helped to establish the 37-unit “55 Williams” and the 50-unit “Chateau de Ville” condominium projects as new owner-occupied housing in Downtown Renton; and ORDINANCE NO. _______ 2 WHEREAS, the provisions of Subsection 4-1-210C, Rental Housing Incentive, helped to establish the 8-unit Glennwood Avenue Townhomes project and the 18-unit Kirkland Avenue Townhomes project in the Sunset Area as new multi-family rental housing; and WHEREAS, the City seeks to encourage additional new multi-family rental housing in the Sunset Area; and WHEREAS, the City seeks to encourage the use of the federal low income housing tax credit as provided for in Section 42 of the Internal Revenue Code to help finance new affordable multi-family rental housing in the Sunset Area and leverage additional public and private investment to stimulate new commercial and residential development in the Sunset Area; and WHEREAS, the federal low income housing tax credits use a different rent standard than provided for in the definition of “affordable housing” in Subsection 4-1-210C.2.a, Rental Housing Incentive; and WHEREAS, the City seeks to amend the definition of “affordable housing” to help leverage additional public and private funds to support affordable multi-family rental housing development in the Sunset Area and, more specifically, to facilitate use of federal low income housing tax credit financing in new multi-family rental housing development in the Sunset Area; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 4-1-210C.2.a, Rental Housing Incentive, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 ORDINANCE NO. _______ 3 entitled “Code of General Ordinances of the City of Renton, Washington”, is hereby amended to read as follows: C. RENTAL HOUSING INCENTIVE: 2.a. “Affordable housing” means residential housing that is rented by a low-income household whose monthly housing costs, including rent and utilities other than telephone, do not exceed thirty percent of the household’s monthly income. However, if the multi-family housing project is funded with federal low-income housing tax credits (LIHTC) as provided for in Section 42 of the Internal Revenue Code, a unit will be considered affordable housing if it is rented at or below the rental rate for a household at 60% of the King County median income under the LIHTC program rules with a deduction for utility costs, if applicable. The King County LIHTC rents are published annually by the Washington State Housing Finance Commission and are based on unit size assuming occupancy of 1 person for a studio unit and 1.5 persons per bedroom. SECTION II. This ordinance shall be effective upon its passage, approval, and thirty (30) calendar days after publication. PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2015. Jason Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2015. Denis Law, Mayor ORDINANCE NO. _______ 4 Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Declare the Sunset Area as a "Redevelopment Area" and an "Investment Priority Area" Meeting: REGULAR COUNCIL - 05 Jan 2015 Exhibits: Issue Paper Draft Resolution Submitting Data: Dept/Div/Board: Community and Economic Development Staff Contact: Mark Santos-Johnson, ext. 6584 Recommended Action: Refer to Planning & Development Committee Fiscal Impact: Expenditure Required: $ Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: The Sunset Terrace Redevelopment is the highest priority investment strategy in the Sunset Area Community Investment Strategy adopted in 2009. To maximize resources to assist with the Sunset Area Community Revitalization and the Sunset Terrace Redevelopment, the City is pursuing a HUD Choice Neighborhoods Initiative implementation grant for up to $30 million for the Sunset Area Transformation Plan. Declaring the Sunset Area as a “Redevelopment Area” and an “Investment Priority Area” will help leverage additional public investment for the Sunset Area. STAFF RECOMMENDATION: Approve a resolution to declare the Sunset Area as a "Redevelopment Area" and an "Investment Priority Area." DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:December 29, 2014 TO:Don Persson, Council President Members of the Renton City Council VIA:Denis Law, Mayor FROM:C.E. “Chip” Vincent, CED Administrator (x6588) STAFF CONTACT:Mark Santos-Johnson, Community Development Project Manager (x6584) SUBJECT:Declare the Sunset Area as a “Redevelopment Area” and an “Investment Priority Area” ISSUE: Should the City approve a resolution to declare the Sunset Area as a “Redevelopment Area” and an “Investment Priority Area?” RECOMMENDATION: Approve a resolution to declare the Sunset Area as a “Redevelopment Area” and an “Investment Priority Area.” BACKGROUND SUMMARY: Since the late 1990s, the City has viewed the Sunset Area (a.k.a. the Highlands) as a high-priority redevelopment area targeted for improvement and investment. In November 2009, Council adopted the Sunset Area Community Investment Strategy for the 269-acre Sunset Area study area. The highest priority investment strategy was support for the Renton Housing Authority’s Sunset Terrace Redevelopment. The Sunset Area is a high-priority investment area for the City and the Renton Housing Authority (RHA). The City, Renton School District (RSD), RHA, and others have invested or committed more than $66 million to date in public investments in the Sunset Area to support the Sunset Area Community Revitalization and/or the Sunset Terrace Redevelopment. The City is seeking to leverage additional public investment in the Sunset Area. Currently, the City is working with RHA, the King County Housing Authority, RSD, Neighborhood House, and other public and private entities to create a U.S. Housing and Urban Development Department (HUD) Choice Neighborhoods Initiative (CNI) Don Persson, Council President Page 2 of 2 December 29, 2014 implementation grant application for the Sunset Area Transformation Plan. The HUD CNI grant would potentially provide up to $30 million to support the Sunset Area Community Revitalization efforts and the Sunset Terrace Redevelopment. To improve the potential for Renton to secure a CNI grant for the Sunset Area Transformation Plan, staff is requesting that Council declare the Sunset Area as a “Redevelopment Area” and an “Investment Priority Area”. The Sunset Area Redevelopment Area and Investment Priority area designations will help Renton’s CNI application to be more competitive and help leverage additional public investment to attract additional private investment to stimulate new commercial and residential development in the neighborhood. CONCLUSION: The Sunset Terrace Redevelopment is the highest priority investment strategy in the Sunset Area Community Investment Strategy adopted in 2009. To maximize resources to assist with the Sunset Area Community Revitalization and the Sunset Terrace Redevelopment, the City is pursuing a HUD Choice Neighborhoods Initiative implementation grant for up to $30 million for the Sunset Area Transformation Plan. Declaring the Sunset Area as a “Redevelopment Area” and an “Investment Priority Area” will help leverage additional public investment for the Sunset Area. Enc.Draft Resolution cc:Jay Covington, CAO Jason Seth, City Clerk Iwen Wang, Administrative Services Administrator Terry Higashiyama, Community Services Administrator Gregg Zimmerman, Public Works Administrator Cliff Long, Economic Development Director Mark Santos-Johnson, Community Development Project Manager DRAFT 1 CITY OF RENTON, WASHINGTON RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, DECLARING THAT THE SUNSET AREA IS A “REDEVELOPMENT AREA” AND “INVESTMENT PRIORITY AREA”. WHEREAS, the Sunset Area (as reflected in the attached Sunset Area Vicinity Map) is one of Renton’s older commercial and residential areas and is in need of revitalization; and WHEREAS, since the late 1990s, the City has viewed the Sunset Area (a.k.a. the Highlands) as a high-priority redevelopment area targeted for improvement and investment; and WHEREAS, in December 2003, the City Council adopted Ordinance No. 5061 designating the Highlands as a “residential targeted area” for the purpose of allowing a limited property tax exemption for qualifying new owner-occupied or rental multi-family housing in the Highlands to help support capital investment and redevelopment in the area; and WHEREAS, in the Fall of 2006, the City convened the Highlands Task Force on Land Use and Zoning which resulted in the City Council adopting changes in May 2007, to the City’s land use policies and zoning codes to stimulate redevelopment in the area; and WHEREAS, in August 2007, the City convened the Highlands Phase II Task Force to study additional neighborhood issues which resulted in recommendations that the City Council prioritized and adopted in the Highlands Action Plan in early 2009; and WHEREAS, in July 2008, the City Council adopted Ordinance No. 5400 establishing the Highlands as a designated residential targeted area for low-income housing serving households RESOLUTION NO. ________ 2 at or below eighty percent (80%) of the median income to help support development of new high-quality affordable housing; and WHEREAS, in June 2009, the City commissioned a Community Investment Strategy study to prioritize additional public investment in the 269-acre Sunset Area study area which resulted in the City Council’s adoption of the Sunset Area Community Investment Strategy in November 2009; and WHEREAS, the highest priorities for the Sunset Area Community Investment Strategy included support for the Renton Housing Authority’s Sunset Terrace Redevelopment; and WHEREAS, in February 2010, the City Council amended RMC 4-1-210 to allow the waiver of development and mitigation fees to encourage new owned-occupied housing in the Sunset area and help support redevelopment in the area; and WHEREAS, in June 2010, the City and the Renton Housing Authority partnered together to conduct a Sunset Area Community Planned Action NEPA/SEPA Environmental Impact study. The study was completed in April 2011 and resulted in the City Council’s adoption of the Sunset Area Community Planned Action in June 2011, to help facilitate and support private and public investment and redevelopment in the Sunset Area over the next 20 years; and WHEREAS, in August 2011, the City Council further amended RMC 4-1-210 to allow for the waiver of development and mitigation fees to encourage new multi-family rental housing in the Sunset area and help support redevelopment in the area; and WHEREAS, in 2012, 27 percent of the households in the Sunset Area lived in poverty; the median average household income was $39,318 [more than $16,000 less than the city as a whole ($55,950) and more than $29,000 less than King County ($68,775)]; 75 percent of the RESOLUTION NO. ________ 3 students at the neighborhood elementary school qualified for free or reduced fee lunch; and 35 percent of students at the neighborhood elementary school had limited English proficiency; and WHEREAS, in April 2014, the City Council adopted Resolution 4214 designating the Sunset Area as an “Economic Target Area” with the intention to leverage public investment to attract additional private investment, particularly through the federal New Markets Tax Credit program, to stimulate new commercial and residential development in the neighborhood and to facilitate the creation of partnerships with other public and private organizations to help address disparities in access to education, social services, health care, and economic and employment opportunities for Sunset Area residents; and WHEREAS, the Sunset Area is a high-priority investment area for the City and the Renton Housing Authority; and WHEREAS, the City, the Renton School District, and the Renton Housing Authority have invested or committed more than $66 million to date in public investments in the Sunset Area to support the Sunset Area Community Revitalization and/or the Sunset Terrace Redevelopment; and WHEREAS, the City is seeking to leverage public and private investment in the Sunset Area to help address the needs of Renton’s Sunset Area residents; and WHEREAS, the City is working with the Renton Housing Authority, the King County Housing Authority, the Renton School District, Neighborhood House, and other public and private entities to create a U.S. Housing and Urban Development Department (HUD) Choice Neighborhoods Initiative (CNI) implementation grant application for the Sunset Area RESOLUTION NO. ________ 4 Transformation Plan. The HUD CNI grant would potentially provide up to $30 million to support the Sunset Area Community Revitalization efforts; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I.The Sunset Area is declared a “Redevelopment Area” and an “Investment Priority Area” with the intention to leverage additional public and private investment to stimulate new commercial and residential development in the neighborhood and to facilitate the creation of partnerships with other public and private organizations to help address disparities in access to education, social services, health care, and economic and employment opportunities for Sunset Area residents. PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2015. Jason Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2015. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Authorize Application for HUD Choice Neighborhoods Initiative Implementation Grant for Sunset Area Transformation Plan Meeting: REGULAR COUNCIL - 05 Jan 2015 Exhibits: Issue Paper Draft Resolution Submitting Data: Dept/Div/Board: Community and Economic Development Staff Contact: Mark Santos-Johnson, ext. 6584 Recommended Action: Refer to Planning & Development Committee Fiscal Impact: Expenditure Required: $ Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: The Sunset Terrace Redevelopment is the highest priority investment strategy in the Sunset Area Community Investment Strategy adopted in 2009. To maximize resources to assist with the Sunset Area Community Revitalization and the Sunset Terrace Redevelopment, the City is pursuing a HUD Choice Neighborhoods Initiative implementation grant for up to $30 million for the Sunset Area Transformation Plan. Authorizing the Mayor to apply for the CNI grant funds for the Sunset Area Transformation Plan will help facilitate and support the collaborative CNI application with RHA and KCHA. STAFF RECOMMENDATION: Approve a resolution to authorize an application for a HUD Choice Neighborhoods Initiative implementation grant for up to $30 million for the Sunset Area Transformation Plan. DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:December 29, 2014 TO:Don Persson, Council President Members of the Renton City Council VIA:Denis Law, Mayor FROM:C.E. “Chip” Vincent, CED Administrator (x6588) STAFF CONTACT:Mark Santos-Johnson, Community Development Project Manager (x6584) SUBJECT:Authorize Application for HUD Choice Neighborhoods Initiative Implementation Grant for Sunset Area Transformation Plan ISSUE: Should the City submit a HUD Choice Neighborhoods Initiative implementation grant application for the Sunset Area Transformation Plan? RECOMMENDATION: Approve a resolution to authorize an application for a HUD Choice Neighborhoods Initiative implementation grant for up to $30 million for the Sunset Area Transformation Plan. BACKGROUND SUMMARY: Since the late 1990s, the City has viewed the Sunset Area (a.k.a. the Highlands) as a high-priority redevelopment area targeted for improvement and investment. In November 2009, Council adopted the Sunset Area Community Investment Strategy for the 269-acre Sunset Area study area. The highest priorities for the Sunset Area Community Investment Strategy included support for the Renton Housing Authority’s Sunset Terrace Redevelopment. The City, Renton School District (RSD) and Renton Housing Authority (RHA) and others have invested or committed more than $66 million to date in public investments in the Sunset Area to support the Sunset Area Community Revitalization and/or the Sunset Terrace Redevelopment. The City is seeking to leverage additional public investment in the Sunset Area. Don Persson, Council President Page 2 of 3 December 29, 2014 The City is currently working with RHA, the King County Housing Authority (KCHA), RSD, Neighborhood House, and other public and private entities to create a U.S. Housing and Urban Development Department (HUD) Choice Neighborhoods Initiative (CNI) implementation grant application for up to $30 million for the Sunset Area Transformation Plan. If successful, the CNI grant would provide the following funds for the Sunset Area Transformation Plan: Housing – Up to $21 million for RHA’s affordable housing development in the Sunset Area Neighborhoods – Up to $3.75 million for eligible targeted neighborhood improvements in the Sunset Area People – Up to $3.75 million total over five years for “people” services for Sunset Terrace residents and the Sunset Area community Administration – Up to $1.5 million (5% of the grant) for administration, reporting and accounting by the lead applicant, KCHA To support Renton’s efforts to secure a CNI grant for the Sunset Area Transformation Plan, staff is requesting that Council authorize the Mayor to (i) apply for funds and prepare a HUD CNI grant application for up to $30 million for the Sunset Area Transformation Plan in cooperation with KCHA and RHA; and (ii) sign all certifications and provide all information required by HUD for the CNI application for the Sunset Area Transformation Plan. Furthermore, staff is requesting that Council authorize the Mayor for the City to be a Co-Applicant and the Neighborhood Lead for the CNI application with RHA as a Co-Applicant and KCHA as the Lead Applicant and the Housing Implementation Entity, a role to be fulfilled in conjunction with RHA if the CNI funds are awarded. The HUD CNI funds would provide substantial public investment in the Sunset Area, help facilitate the Sunset Terrace Redevelopment, provide significant neighborhood and people enhancements, and help leverage additional public and private investment to stimulate new commercial and residential development in the Sunset Area. CONCLUSION: The Sunset Terrace Redevelopment is the highest priority investment strategy in the Sunset Area Community Investment Strategy adopted in 2009. To maximize resources to assist with the Sunset Area Community Revitalization and the Sunset Terrace Redevelopment, the City is pursuing a HUD Choice Neighborhoods Initiative implementation grant for up to $30 million for the Sunset Area Transformation Plan. Authorizing the Mayor to apply for the CNI grant funds for the Sunset Area Transformation Plan will help facilitate and support the collaborative CNI application with RHA and KCHA. Don Persson, Council President Page 3 of 3 December 29, 2014 Enc.Draft Resolution cc:Jay Covington, CAO Jason Seth, City Clerk Iwen Wang, Administrative Services Administrator Terry Higashiyama, Community Services Administrator Gregg Zimmerman, Public Works Administrator Cliff Long, Economic Development Director Mark Santos-Johnson, Community Development Project Manager CITY OF RENTON, WASHINGTON RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING AN APPLICATION FOR A U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CHOICE NEIGHBORHOODS INITIATIVE IMPLEMENTATION GRANT FOR THE SUNSET AREA TRANSFORMATION PLAN. WHEREAS, the Sunset Area (as reflected in the attached Sunset Area Vicinity Map) is one of Renton’s older commercial and residential areas and is in need of revitalization; and WHEREAS, since the late 1990s, the City has viewed the Sunset Area (a.k.a. the Highlands) as a high-priority redevelopment area targeted for improvement and investment; and WHEREAS, in June 2009, the City commissioned a Community Investment Strategy study to prioritize additional public investment in the 269-acre Sunset Area study area which resulted in the City Council’s adoption of the Sunset Area Community Investment Strategy in November 2009; and WHEREAS, the highest priorities for the Sunset Area Community Investment Strategy included support for the Renton Housing Authority’s Sunset Terrace Redevelopment; and WHEREAS, in June 2010, the City and the Renton Housing Authority partnered together to conduct a Sunset Area Community Planned Action NEPA/SEPA Environmental Impact study. The study was completed in April 2011 and resulted in the City Council’s adoption of the Sunset Area Community Planned Action in June 2011, to help facilitate and support private and public investment and redevelopment in the Sunset Area over the next 20 years; and WHEREAS, in 2012, 27 percent of the households in the Sunset Area lived in poverty; the median average household income was $39,318 [more than $16,000 less than the city as a whole ($55,950) and more than $29,000 less than King County ($68,775)]; 75 percent of the students at the neighborhood elementary school qualified for free or reduced fee lunch; and 35 percent of students at the neighborhood elementary school had limited English proficiency; and WHEREAS, the Sunset Area is a high-priority investment area for the City and the Renton Housing Authority; and WHEREAS, the City, the Renton School District, and the Renton Housing Authority have invested or committed more than $66 million to date in public investments in the Sunset Area to support the Sunset Area Community Revitalization and/or the Sunset Terrace Redevelopment; and WHEREAS, the City is seeking to leverage public and private investment in the Sunset Area to help address the needs of Renton’s Sunset Area residents; and WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has issued a Notice of Fund Availability for the Choice Neighborhoods Initiative (CNI) Implementation Grant Program and applications are due February 9, 2015; and WHEREAS, the purposes of the CNI funds are to: (1) replace distressed public housing and assisted housing with high quality mixed income housing, (2) improve educational outcomes and intergenerational mobility for youth and their families and (3) create the conditions necessary for public and private investment in distressed neighborhoods; and WHEREAS, the City and Renton Housing Authority have asked the King County Housing Authority (KCHA) to join them in a mutual effort to apply for the CNI grant and, if successful, for KCHA to administer the CNI grant and build mixed income housing primarily in the Sunset Area of Renton; and WHEREAS, the City is working with the Renton Housing Authority, the King County Housing Authority, the Renton School District, Neighborhood House, and other public and private entities to create a HUD CNI implementation grant application for the Sunset Area Transformation Plan. The CNI grant would potentially provide up to $30 million to support the Sunset Area Community Revitalization efforts; WHEREAS, the City, the Renton Housing Authority, and the Renton School District have taken significant steps towards planning and implementing substantial housing and neighborhood improvements already in the Sunset Area, including: (i) construction completed for the Meadow Crest Early Learning Center, the Meadow Crest Playground, and 26 units of new affordable housing; (ii) construction under way for a new Renton Highlands Library, the Harrington Green Connection and water main improvements, and the Sunset Terrace Regional Stormwater Facility; and (iii) relocation of residents from the Sunset Terrace distressed public housing development; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I.The Mayor is authorized to (i) apply for funds and prepare a U.S. Department of Housing and Urban Development (HUD) Choice Neighborhoods Initiative (CNI) grant application for up to $30 million for the Sunset Area Transformation Plan in cooperation with the King County Housing Authority and the Renton Housing Authority; and (ii) sign all certifications and provide all information required by HUD for the CNI application for the Sunset Area Transformation Plan. The Mayor is further authorized for the City to be a Co-Applicant and the Neighborhood Lead for the CNI application with the Renton Housing Authority as a Co-Applicant and the King County Housing Authority as the Lead Applicant and the Housing Implementation Entity, a role to be fulfilled in conjunction with the Renton Housing Authority if the CNI funds are awarded. PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2015. Jason Seth, City Clerk APPROVED BY THE MAYOR this _______ day of _____________________, 2015. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: