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HomeMy WebLinkAboutAgenda AGENDA Planning & Development Committee Regular Meeting 4:00 PM - Thursday, May 10, 2018 Council Conference Room, 7th Floor, City Hall – 1055 S. Grady Way 1. Title IV Development Regulations a) #D-143 Submittal Requirements b) #D-144 Street Name Changes c) #D-145 Short Term Rentals d) #D-146 Downtown Window Transparency 2. Multi-family Property Tax Exemptions a) Staff Report 3. City Center Plan Text Amendments a) Staff Report 4. Emerging Issues in CED h:\ced\planning\title iv\docket\d-143 submittal requirements\d-143 staff report.docx Page 1 of 4 CITY OF RENTON Community and Economic Development Department D-143 Submittal Requirements Staff: Matthew Herrera Date: May 9, 2018 Applicant or Requestor: Planning Division ______________________________________________________________________________ General Description: Update permit application submittal requirements to reflect the recent implementation of electronic plan review. This docket item also aims to remove those submittal items that are no longer needed as they relate to electronic plan review and to add or modify submittal items to improve future permit submittal packages. Background The Department implemented electronic plan review for land use, building, and construction permits effective April 2017. Applicants no longer submit paper plans to the City for permit applications, but instead digitize their plans in Portable Document Form (PDF) for staff to review. City project managers are now able to route plans to other staff and outside agencies for review electronically. Additionally, many permit application documents such as plans, technical studies, and maps are now readily available on the City’s website for public viewing. Requirements for what applicants must submit with their permit applications, such as a site plan or drainage report, are listed in the Code and correspond to their permit type. Currently, the Code lists a certain number of paper copies of a submittal item an applicant would be required to provide with their application. The specific number of copies of an item reflects how many the project manager needs to route to various staff and outside agencies to review the application. As paper copies are no longer needed, the Code needs to be updated to identify that submittal items must be electronic and meet acceptable file standards in order to properly review and share with the public. In reviewing the submittal requirements for electronic plan review consistency, staff has also identified submittal items that are no longer relevant and items that should be modified or added to assist in reviewing applications and sharing with the public. For example, the current submittal requirements contain a “Colored Display Map” item that is intended to enhance site and building plans with colored wide tip marker in order to present to the City’s Environmental Review Committee and at public hearing. With current digital design platforms, plans are clearer and easier to comprehend on a large screen. As an alternative, staff is proposing to remove the colored display map item and replace it with a 3-D rendering, which provides a better understanding of how the built project would look on the site. Additional recommendations for new or replaced submittal items are below. AGENDA ITEM #1. a) Submittal Requirements Page 2 of 4 May 9, 2018 Proposed Text Amendments to Code 1. A new code subsection that provides information on the City’s requirement for electronic plan review with reference to standards such as format, size, resolution, and naming conventions. 2. Reference currently adopted fee schedule for fees associated with each type of permit. 3. Removing references to the number of copies of each required submittal item. Alternatively each space that is currently occupied with a number would be replaced with a check-mark  or X signifying the item is required with the specified permit. 4. Remove submittal items that are no longer needed and provide new submittal items that assist in permit review and public viewing. The following items staff is recommending to remove or add. Please note additional items may be recommended for inclusion or removal between now and the public hearing, which staff will clarify with the Planning Commission during the hearing. Land Use Permit Submittal Changes a. Add Colored Rendering – As mentioned in background, a color rendering provides the public, staff, and decision makers the ability to visualize how the built project would look. b. Add Property Survey – Boundary survey is listed on the submittal requirements, however it is listed only as a requirement for a final subdivision application. A boundary survey should be a requirement for commercial and multi-family development to ensure site and construction plans are based on an accurate representation of the sites property lines. c. Remove Colored Display Maps – As mentioned in background, the colored maps were requested from applicants for highlighting different elements of site and building plans such as streets, new and existing improvements, and landscaping. 3D color renderings now provide a level of detail that is superior to plan view style mark-ups. d. Remove Plan Reductions – Now obsolete due to electronic plan review. These plans were 8-1/2” X 11” reductions of the full size plans. Rendering of recently entitled Merrill Gardens Addition on Williams Ave S. AGENDA ITEM #1. a) Submittal Requirements Page 3 of 4 May 9, 2018 e. Remove “Application Fee per the City of Renton Fee Schedule Brochure” – This submittal item was noted in submittal requirement chart with an “X” under applications where a fee is required. Several of the permits that did not historically require a fee now do and the chart is not current. As recommended in item #2 above, a revised text section that cross- references users to the currently adopted fee schedule would reduce the need to update fee changes in the future. f. Remove items no longer associated with any permit – Several submittal items are listed in the chart but do not reference a permit. These items may be remnants of previous text amendments. Examples include Nonconformity Relationship and Compatibility Narrative, Justification for the Conditional Approval Permit (nonconforming structure), and Justification for the Conditional Approval Permit (nonconforming use). Construction Permit Submittal Changes a. Add a “close out” component to the construction permit. Close out documents would include as-builts (i.e. survey drawings of what actually has been built on site) and sureties/bonds. Additional close out documents include:  Landscape plan record drawing (record drawing is similar to as-built). i. Landscape cost estimate worksheet for bond.  Stream and/or wetland mitigation plan record drawing.  Final arborist report detailing condition of retained trees and recommendations for their long term care. b. Add a Planning Submittal Package – This package would be a single PDF that includes items from the approved land use permit associated with the construction permit. Such items would include the Environmental Review Committee Report, Hearing Examiner or Planning Director Approval and Conditions, and site/landscape plans. Building Permit Submittal Changes a. Add Tree Retention Plan for Demolition-only Permits – Applicants proposing to demolish buildings and improvements on a property occasionally do so prior to obtaining entitlements for redevelopment. This addition would ensure tree protection measures would be in place prior to demolition activities. b. Add Construction and Demolition Materials Diversion – Incorporate submittal requirement, such as a checklist, that ensures the diversion of recyclable construction and demolition materials per recent standards adopted by King County. Staff Recommendation Text amendments to the City’s submittal requirements as described. Adopt an ordinance amending applicable sections of RMC 4-8-120 Submittal Requirements – Specific to Application Type and add a new subsection with information related to electronic plan review. AGENDA ITEM #1. a) Submittal Requirements Page 4 of 4 May 9, 2018 Impact Analysis Effect on rate of growth, development, and conversion of land as envisioned in the Plan Not applicable. There is no anticipated effect on the rate of growth, development, and conversion of land envisioned in the Plan. Effect on the City’s capacity to provide adequate public facilities Not applicable. There are no anticipated effects on the City’s capacity to provide adequate public facilities. Effect on the rate of population and employment growth Not applicable. There are no anticipated effects on the rate of population and employment growth created by the proposed changes. Whether Plan objectives are being met as specified or remain valid and desirable Objectives of the Plan would remain valid and desirable. Effect on general land values or housing costs There will likely be no effect in general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected No applicable. Consistency with GMA, the Plan, and Countywide Planning Policies The proposed amendments are consistent with GMA, the Plan, and Countywide Policies. Effect on critical areas and natural resource lands Not applicable. There are no anticipated effects on critical areas and natural resource lands. AGENDA ITEM #1. a) h:\ced\planning\title iv\docket\d-144 street name changes\d144 staff report.docx Page 1 of 3 CITY OF RENTON Community and Economic Development Department Street Name Changes Staff: Katie Buchl-Morales Date: May 9, 2018 Applicant or Requestor: Mayor Law ______________________________________________________________________________ General Description: The City’s existing code contains prescriptive language for its street grid system and the assignment of street names, which is intended to help establish a clear grid system that supports easy navigation for residents, delivery service, visitors and first responders, and to provide a uniform application guideline. The City has received a request to make revisions to code to allow for changing the way street names are assigned. Specifically, allowing new streets to be named in honor of people who have made significant contributions to the community. List of Exhibits: Attachment A – Primary and Honorary Street Name at Intersection Background The only Washington State statute that deals with street naming and numbering is RCW 58.17.280, which provides that cities “shall, by ordinance, regulate the procedure whereby … streets …are named and numbered.” As mentioned above, the City’s code contains prescriptive language for the assignment of street names. However, it is not intended to name every roadway existing within the current City; the intention of this system is to clearly establish the grid (RMC 9-11-5). A brief summary of the current practice for the designation of City street names is provided in the table below. North-south streets, beginning at Rainier Avenue, shall be named consecutively: Easterly Westerly Lake Hardie Davis Taylor Shattuck Maple Whitworth Lind Morris Stevens AGENDA ITEM #1. b) D-144 Street Name Changes Page 2 of 3 May 9, 2018 As stated in code, east-west roadways shall be named northerly and southerly from the main east-west division line as identified in RMC 9-11-4, Area Divisions. Northerly from said division line, each grid shall increase from North 1st Street through North 11th Place alternately 1st Street, 1st Place, . . . 11th Street, 11th Place, thereafter the grid shall numerically increase incrementally to the City limits as North 12th Street, North 13th Street, etc. Southerly from said division line, each grid shall increase from South 1st Street through South 5th Place alternately as north of said division, thereafter the grid shall numerically increase incrementally to the City limits. (RMC 9-11-5-C). Per existing code, newly constructed streets shall be considered extensions of the existing street to which they connect. If the new street connects a street named under the convention outlined above to one established prior to annexation, the new segment of street should be given the Renton name until it connects to an existing street at an existing intersection. For example, a newly constructed segment of Powell Avenue Southwest that connects to 82nd Avenue South shall be named Powell Avenue Southwest (RMC – 9-11-5-D). Regarding change of address, the owners of an interest in any real estate abutting upon any roadway within the City may petition the City for a change of address, with the exception that addresses within subdivisions and short subdivisions recorded since 1993 shall not change unless deemed a life safety hazard by the Fire Marshal (RMC 9-11-7). Existing code allows for petitioning of new street names and contains provisions for deviations from code. Deviations from Code are permitted with approval by the City Council (RMC 9-11-9). It is common practice for cities to designate street names in recognition of those who have made significant contribution to the community, either through re-naming existing streets, co- naming streets, or naming new streets after said individuals. There are several challenges with the re-naming of existing streets, such as removal and replacement of existing signs, it creates a burden for surrounding businesses and residences, and complicates navigation. Co-named streets maintain the original street name while designating an honorary street name. This option allows individuals and organizations to be honored without having the anticipated impacts of changing a street name. As shown in attachment A, the honorary street sign is distinguishable from the primary sign by color and its label of “honorary” printed at the top, making it easily identifiable from the official street name. Staff Recommendation The City’s Code needs to be amended to provide a medium for the recognition of those who have made exemplary contributions to the betterment of the Renton community. Staff recommends amending Code to include the two following avenues to facilitate memorialization of such individuals: 1. Amend code to allow for co-naming of existing streets. In this scenario new, honorary street signs would be added to existing street signs. AGENDA ITEM #1. b) D-144 Street Name Changes Page 3 of 3 May 9, 2018 2. Amend code to allow for more flexibility of street name designation for new streets. In this scenario, prior to the naming of any new streets or extensions of existing streets, Staff would consider naming the street after an individual or organization. 3. Request or petition to change existing street names would continue to be reviewed by City Council. Impact Analysis Effect on rate of growth, development, and conversion of land as envisioned in the Plan The proposed amendment has no effect on the rate of growth, development, or conversion of land as envisioned in the Plan. Effect on the City’s capacity to provide adequate public facilities The proposed amendment has no effect on the City’s capacity to provide adequate public facilities. Effect on the rate of population and employment growth The proposed amendment has no effect on the rate of population and employment growth. Whether Plan objectives are being met as specified or remain valid and desirable The proposed amendment supports goals and policies in the Comprehensive Plan. Specifically, amending code to include a process for street name changes to honor individuals or organizations who have made a significant contribution to Renton maintains the city’s cultural history by recognizing those who have made a positive impact. Goal-AA: Maintain the City’s cultural history by documenting, recognizing, and protecting its historic, archaeological and traditional cultural sites. Effect on general land values or housing costs The proposed amendment has no effect on the general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected There are no capital improvements or expenditures being made or completed in association with the proposed amendment. Consistency with GMA and Countywide Planning Policies The proposed amendment has no effect on the GMA or Countywide Planning policies. Effect on critical areas and natural resource lands The proposed amendment has no effect on critical areas and natural resource lands. AGENDA ITEM #1. b) Attachment A AGENDA ITEM #1. b) h:\ced\planning\title iv\docket\d-145 short term rentals\d-145 short term rentals.docx Page 1 of 3 CITY OF RENTON Community and Economic Development Department Short Term Rentals Staff: Paul Hintz Date: May 9, 2018 Applicant or Requestor: City Council General Description: Short-term rentals are furnished residential units, or in some cases individual rooms within units, in which the owner rents to guests for less than 30 days at a time. Typically the owner of the property will rent their space when they are not using it, though some rentals are shared spaces where owners rent out one or more rooms, or even an entire floor of a home. Short-term rentals have surged in popularity in recent years for many reasons, in part because they often offer more privacy and space for a lesser cost than hotels, but most notably due to websites like AirBnB that facilitate every aspect of renting such as marketing, payment, and owner-guest communications. Renting a home when it’s not being used by the owner or renting a portion of a home that isn’t utilized by the owner is a practical way for owners to gain supplemental income without dedicating their home as a full-fledged rental. Such owners might travel for long durations, have “too much house” for their needs, or be on fixed incomes and therefore renting for short periods might enable owners to continue or pursue a lifestyle that would otherwise be unsustainable. Short-term rentals are not a new concept; they’ve existed in the form of vacation rentals and bed-and- breakfast establishments for an undeterminable amount of time. Their proliferation is due to online services (e.g., AirBnB) that easily facilitate this type of lodging in homes not typically seen as desirable vacation homes (e.g., not lakefront or beach properties) or large historic houses iconic of traditional bed-and-breakfasts. Some local governments have decided to regulate short-term rentals due to concerns such as: 1. Lack of lodging and sales tax collection; 2. Increased traffic, parking, and noise impacts on the surrounding neighborhood; and/or 3. Non-compliance with life/safety standards that are commonly applied to other types of lodging establishments (such as hotels, motels, and bed-and-breakfasts). Background Sample Jurisdiction Regulations  Kirkland limits short term rentals to no more than 120 days total per year and requires landlords or an authorized agent live in the property for 245 days of the year. 288 active short term rentals  Walla Walla requires that homeowners who rent reside in the residences for at least 275 days of the year and requires minimum 29 day rentals. 153 active short term rentals  Tacoma requires a business license and if renting rooms or ADU must be owner occupied. If renting an entire home, does not have to be owner occupied. Rentals of entire homes allowed in AGENDA ITEM #1. c) Short Term Rentals Page 2 of 3 May 9, 2018 most zones, renting more than 3 rooms is allowed in specified zones with a Conditional Use Permit. 371 active short term rentals  Westport allows only one unit per parcel (this could limit to one bedroom only), one off street parking space must be provided, if owner doesn’t live within 50 miles must have local manager, required to have business license, must be approved by city to have vacation rental. 62 active rentals  Seattle requires business license, limits number of guests to the number of unrelated tenants considered to be a household. Short term rentals defined as rented for 30 or fewer nights. Starting in 2019, owners can only rent one unit for short term rental. If one of the units is the owner’s primary residence they can rent two units. Also, in 2019 begin taxing $8 per night for guest rooms and $14 per night for dwelling units. Seattle Metro area. 6,846 active short term rentals, however, this includes Shoreline, Burien, Tukwila, SeaTac, Normandy Park, and Des Moines. o Monies generated by these tax rates are to be distributed as follows: first $5 million initiated equitable development projects, next $2 million applied to investments in affordable housing, remainder of funds shall support the aforementioned.  Redmond appears to have no regulations. 156 active short term rentals  Mercer Island appears to have no regulations. 44 active short term rentals  Kent appears to have no regulations. 92 active short term rentals  Bellevue appears to have no regulations. 410 active short term rentals  Issaquah appears to have no regulations. 80 active short term rentals  Bothell appears to have no regulations. 84 active short term rentals, however this includes Mill Creek Staff Recommendation: Staff recommends adopting the following standards: 1. Business License: Owners of property used as a short-term rental must obtain a City of Renton Business License if they:  advertise their property for overnight accommodations through online marketplaces, newspapers, or other publications;  hire a property manager to handle the rental of the property; or  engage in short-term rentals (less than 30 continuous days) three or more times in a year. (These are the Department of Revenue’s standards for determining if a short-term rental is a taxable business.) 2. Owner-Occupancy: For short-term rentals that involve rental of individual guest rooms or any living space that doesn’t include the entirety of the dwelling, the dwelling must be occupied by an owner of record during the rental term. 3. Maximum Number of Guests: The number of guests, and owners or related family if the unit is owner-occupied during rentals, is limited to two per bedroom. The definition of “Bedroom” by the International Building Code requires emergency egress (i.e., a window). 4. Off-Street Parking: At least one off-street parking space must be provided for every two guest rooms rented if the entire dwelling unit is not rented (i.e., it’s owner-occupied during rentals) in addition to one space for every two bedrooms occupied by the owner or related family. If the AGENDA ITEM #1. c) Short Term Rentals Page 3 of 3 May 9, 2018 entire residence is rented then only two off-street parking spaces are required (existing standard for all single-family houses). 5. Safety Regulations: Property used as a short-term rental must comply with applicable International Fire Code and Prevention Regulations (RMC 4-5-070), and have safety sign/map in each bedroom that shows the location of fire extinguishers, gas shut-off valves, fire exits, and/or fire alarm, in addition to operating smoke detectors and carbon monoxide detectors. 6. Property Maintenance: Property used as a short-term rental must comply with International Property Maintenance Code (RMC 4-5-130). Additionally, staff recommends removing the standards and zoning restrictions for bed-and-breakfasts as the code would be antiquated in comparison to the standards proposed for all short-term rentals. Impact Analysis Effect on rate of growth, development, and conversion of land as envisioned in the Plan Allowing short-term rentals as proposed might enable some homeowners to maintain ownership as a result of supplemental income in cases when they might otherwise have been forced to sell for financial reasons, and therefore properties that are not fully built-out might not be redeveloped to maximize its capacity. This potential effect is likely inconsequential with regard to the City meeting adopted growth targets. Effect on the City’s capacity to provide adequate public facilities There is likely little to no effect. Effect on the rate of population and employment growth There is likely little to no effect. Whether Plan objectives are being met as specified or remain valid and desirable Plan objectives will likely not be affected by the proposal. Effect on general land values or housing costs Allowing short-term rentals as proposed might enable some homeowners to maintain ownership as a result of supplemental income in cases when they might otherwise have been forced to sell or rent for periods exceeding 30 days for financial reasons. The proliferation of short-term rentals can limit the inventory of properties for sale or rent and therefore can increase general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected There is likely little to no effect. Consistency with GMA and Countywide Planning Policies The proposal is not inconsistent with GMA and Countywide Planning Policies. Effect on critical areas and natural resource lands There is likely little to no effect. AGENDA ITEM #1. c) h:\ced\planning\title iv\docket\d-146 downtown window transparency\d-146 staff report.docx Page 1 of 2 CITY OF RENTON Community and Economic Development Department Downtown Window Transparency Staff: Angie Mathias Date: May 9, 2018 Applicant or Requestor: Renton Downtown Civic Core Vision and Action Plan ______________________________________________________________________________ General Description: The City adopted the Renton Downtown Civic Core Vision and Action Plan in January 2018. One of the quick wins identified in the plan is to prohibit window screens that block or reduce window and door transparency in Downtown. Council has directed staff to prioritize and initiate work on several of the quick wins in the Plan for work in 2018. The window transparency item has been identified for this 2018 work. Background The Renton Downtown Civic Core Vision and Action Plan is intended to help the City best capitalize on previous public investments, target future public investments to further revitalization of the Civic Core, and identify how private investments can be best utilized and encouraged. The Vision for this area (as well as, Downtown) is that they “are places where people of all ages and abilities live, work, shop, recreate and gather, connected by art and public spaces that encourage investment and creativity”. In furtherance of this vision, the prohibition of window screens that block or reduce window and door transparency has been identified as quick win that could be completed in 2018. Downtown is all zoned Center Downtown (CD) and all new development must comply with Urban Design Regulations. Additionally, alterations to windows, awnings, signs, etc. would be required to comply with the Design Regulations. Requirements for windows are below: 1. Any facade visible to the public shall be comprised of at least fifty percent (50%) transparent windows and/or doors for at least the portion of the ground floor facade that is between four feet (4') and eight feet (8') above ground (as measured on the true elevation). 2. Display windows shall be designed for frequent change of merchandise, rather than permanent displays. 3. Where windows or storefronts occur, they must principally contain clear glazing. 4. Tinted and dark glass, highly reflective (mirror-type) glass and film is prohibited. Most of these requirements are adequate, but in order to further the intent of the Civic Core action item to prohibit window screens that block or reduce window and door transparency in improving the pedestrian experience of walking in Downtown, the requirements should be supplemented. In Downtown environments storefronts should have a greater requirement for the percent of the façade that is comprised of windows. 70% of the ground level floor would be more consistent with Downtown. Requirement number 3 regarding where windows or storefronts occur, clear glazing must be the primary material should be amended for Downtown. No more than a maximum of 10% of the window AGENDA ITEM #1. d) Downtown Window Transparency Page 2 of 2 May 9, 2018 area should be taken up with opaque signage and stenciled signage or signage that can be seen through into the store should be encouraged. A requirement that if interior window coverings, such as blinds or curtains, are used they may not be permanently affixed or adhered to the window needs to be added. Finally, display racks and fixtures should be limited in windows to not obscuring more than 50% of the glazed area. The Design Regulations currently do not have any requirement to maintain the requirements that were required of a project when it is newly constructed. So, a new project may install windows that are transparent, but years later they could be tinted and there is not a means to prohibit them from doing so. A new provision that would not allow this should be considered. Staff Recommendation: Adopt new requirements and amend existing requirements for ground floor windows in Downtown that further the Civic Core Vision and Action Plan. Impact Analysis Effect on rate of growth, development, and conversion of land as envisioned in the Plan The proposed amendment has no effect on the rate of growth, development, or conversion of land as envisioned in the Plan. In fact, it may incentivize growth as envisioned in the Plan. Effect on the City’s capacity to provide adequate public facilities The collection of impact fees helps to ensure the City has the capacity to provide adequate public facilities needed by new residents and businesses. Effect on the rate of population and employment growth The proposed amendment has no effect on the rate of population and employment growth. Whether Plan objectives are being met as specified or remain valid and desirable The amendments would work to further the Comprehensive Plan goals and policies. Effect on general land values or housing costs The proposed amendment has no effect on general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected There are no capital improvements or expenditures being made or completed in association with the proposed amendment. Consistency with GMA and Countywide Planning Policies The proposed amendments and collection of the requested fire impact fee work to further the goals of the Growth Management Act and the CPP’s. Effect on critical areas and natural resource lands The proposed amendment has no effect on critical areas or natural resource lands. AGENDA ITEM #1. d) Page 1 of 4 CITY OF RENTON Community and Economic Development Department Multi-Family Tax Exemption Boundary Staff: Angie Mathias Date: April 2, 2018 Applicant or Requestor: Michael Sandorfy, RVA Cinema LLC ______________________________________________________________________________ General Description: The City has an adopted incentive that exempts multi-family housing from paying the property tax on the value of the housing portion of the improvements for eight or twelve years. This incentive, the Multi-Family Tax Exemption (MFTE), is only available in areas the City has designated as being eligible, currently Sunset and Downtown. Any new multi-family projects in these areas can receive waived taxes for eight years. If 20% of the units constructed are affordable housing units, the taxes can be waived for twelve years. The City has received a request to make this incentive available in an area that has not been designated. Additionally, this tax exemption is set to expire at the end of the year. The code needs to be amended to extend the expiration date. List of Exhibits Exhibit A – Letter from Michael Sandorfy Exhibit B – Map of MFTE Eligible Areas Background Extension to a New Area The City has utilized the Multi-Family Tax Exemption as an incentive for the construction of new multi- family housing since 2003. Initially there were three targeted areas, Downtown, Sunset, and South Lake Washington. In 2008, after having successfully incentivized the construction of over 1,000 units in the South Lake Washington area the code was amended to remove South Lake Washington as an eligible area. A table identifying the project, number of units, and targeted area is on the following page. In order to be eligible, projects must provide at minimum ten new units if it is in the R-14 or Residential Multi-Family (RMF) zone and at minimum thirty new units if it is in the Center Village (CV) or Center Downtown (CD) zone in both the Sunset and Downtown. Project Name Number of Market Rate Units Number of Affordable Units Targeted Area Start of Tax Exemption Merrill Gardens 154 0 Downtown 2008 Parkside at 95 Burnett 106 0 Downtown 2008 The Bristol II 195 0 South Lake Washington 2009 Chateau de Ville 50 0 Downtown 2009 Liberty Square 73 19 Downtown 2010 The Sanctuary 440 0 South Lake Washington 2010 The Reserve 440 0 South Lake Washington 2011 AGENDA ITEM #2. a) MFTE Boundary Page 2 of 4 April 4, 2018 Harrington Square 217 0 Sunset 2012 The Lofts at 2nd & Main 101 0 Downtown 2018 Total Units 1,776 19 Projects that utilize the tax exemption are only exempt from the portion of taxes that is charged for the residential improvements. Taxes for the land and non-housing related improvements (for example, commercial space) are not exempted. For the twelve year exemption projects must provide affordable housing to low and moderate incomes. Projects that will be renter occupied must provide 20% of its housing to low income residents, 80% or less of the Area Median Income (AMI). Projects that will be owner occupied must provide units at 120% of the AMI. The 2017 U.S. Department of Housing and Urban Development (HUD) income limits for a family of four at 80% of the AMI is $76,800. The standard is that people shouldn’t spend more than 30% of their income on housing. So, a family of four earning $76,800 should not spend more than $1,920 on monthly rent. There are many different sources for identifying the average rent in Renton and none match. Below is a summary table that also shows the averages. The average for a 2 bedroom rental is $1,899. Just below what a family of four earning 80% of the AMI could afford. The different sources utilize different methodologies and different data sets. Rentcafe and Rent Jungle included rental homes and rental rooms in their averages. Apartment Guide appears to only average apartments in multi-family development. So, it may be that a family of four making 80% MI would be challenged to find rental units in apartments in Renton. 80% of the MI for one person is $53,760, they can afford $1,344 rent per month. A household of two people that earns $61,440 is at 80% AMI and can afford $1,536 monthly rent. Using the average of rents from the table below, the households of one could almost afford a studio, but not a one bedroom and the household of two could afford a studio and almost a one bedroom. Renton Average Rents Source All Rentals Studio 1 Bed 2 Bed 3 Bed Zillow $2,254 Rentcafe $1,594 $1,126 $1,423 $1,700 $2,016 Rent Jungle $1,658 $1,458 $1,735 Apartment Guide $1,628 $1,993 $2,267 $2,410 Trulia $2,400 $1,172 $1,895 $2,275 Average $1,977 $1,377 $1,512 $1,899 $2,234 Given that existing average rents in Renton appear to be close to the 80% AMI, perhaps it is appropriate to revise the affordability level to 60% or 70%. So, to qualify for the MFTE, projects would provide housing to people who have incomes that are 60% or 70% of the median income. This could potential create housing at an affordability level that is not being well accommodated in Renton. However, to date only one project has utilized the MFTE to have the tax emption for an additional four years by providing affordable housing, and that was to the 80% AMI. It is unclear if the market would provide AGENDA ITEM #2. a) MFTE Boundary Page 3 of 4 April 4, 2018 housing affordable to people earning 60% or 70% AMI in order to have a tax exemption for a total twelve years. The requestor is in the process of permitting a 270 unit mixed use project at the site of the former Renton Cinema. The proposed project would serve as a Transit Oriented Development (TOD) when the primary functions of the Downtown transit center are relocated to the former Sound Ford site. The requestor has asked that their area be designated as eligible for the MFTE, but only for the 12 year exemption that requires construction of affordable housing units. If this project were to utilize the MFTE, they would provide 54 units of affordable housing units. The relocation of the transit center from Downtown to the former Sound Ford site is funded through the passage of Sound Transit 3. Sound Transit will construct a 700 stall parking garage. Bus routes will be routed through the transit station to maximize connections to other routes. The City is currently served by one Rapid Ride route that will serve the transit center. Route routes 169 and 240 will be converted to a RapideRide BRT lines improving service to Bellevue and Kent. They will both serve the transit center. This quickly creates an opportunity for the surrounding area to be developed with Transit Oriented Development (TOD). TOD’s is high density mixed use development within ¼ to ½ miles of transit, typically a central transit stop. TOD’s seek to capitalize on the density to increase transit ridership and reduce the need for automobile travel. Much of the existing land uses around the site of the future transit center is underutilized. Incentivizing new development within that area could help foster a TOD area in that vicinity. Such development could occur without allowing the MFTE to expand to the area. However, if the MFTE is extended some of those future projects could provide much needed affordable housing. It seems like an opportune time to try to incentivize such development. A potential City Center TOD MFTE eligible area is shown on Exhibit 2. Sunset Provision The MFTE has included a sunset provision since its initial adoption. This allows the City to consider whether or not the incentive is still needed. To date, only one project in the Sunset area has utilized the incentive and the area still is not being redeveloped with new multi-family housing by private parties. The Renton Housing Authority (RHA) actively is redeveloping many sites with multi-family housing, but the incentive is still needed to make new construction more attractive to for profit developers. The Downtown has five projects utilize the incentive to create a total of 503 new multifamily dwelling units, 19 of which are affordable. The Lofts at 2nd and Main is the first project in Downtown in 8 years to use the incentive and Downtown has not reached the point at which private development is significant. Retaining the incentive in Downtown is also still needed. The sunset provision has historically been extended for three years. Staff Recommendation: Create a third eligible area for the MFTE incentive, the City Center TOD area. Renew the Sunset provision with a new three year extension to December 31, 2021. AGENDA ITEM #2. a) MFTE Boundary Page 4 of 4 April 4, 2018 Impact Analysis Effect on rate of growth, development, and conversion of land as envisioned in the Plan The proposed amendment has no effect on the rate of growth, development, or conversion of land as envisioned in the Plan. In fact, it may incentivize growth as envisioned in the Plan. Effect on the City’s capacity to provide adequate public facilities The collection of impact fees helps to ensure the City has the capacity to provide adequate public facilities needed by new residents and businesses. Effect on the rate of population and employment growth The proposed amendment has no effect on the rate of population and employment growth. Whether Plan objectives are being met as specified or remain valid and desirable The amendments would work to further the Comprehensive Plan goals and policies. Effect on general land values or housing costs The proposed amendment has no effect on general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected There are no capital improvements or expenditures being made or completed in association with the proposed amendment. Consistency with GMA and Countywide Planning Policies The proposed amendments and collection of the requested fire impact fee work to further the goals of the Growth Management Act and the CPP’s. Effect on critical areas and natural resource lands The proposed amendment has no effect on critical areas or natural resource lands. AGENDA ITEM #2. a) RVA CINEMA LLC •520 PIKE STREET • SUITE 1500 • SEATTLE, WA 98101 • 206.682.6868 X 14• 25 May 2017 Mr. Chip Vincent Administrator/Planning Director, City of Renton Department of Community and Economic Development 1055 South Grady Way Renton, WA 98057 RE: VIA 405 Apartment PUD Application 25 South Grady Way Request for Code Amendment Boundary Change to City of Renton Multifamily Tax Exemption Area Dear Mr. Vincent: RVA CINEMA LLC (“Applicant”) is the applicant for PPUD approval of a 270 unit, transit oriented apartment community. The 2.6 acre development site is a portion of the 24 acre Renton Village property. A minimum of 54 apartment units will be allocated to meet affordable standards, provided the targeted area for 12 year exemption is expanded to include the VIA 405 site. The Applicant submitted its PPUD application to City of Renton on April 24th, 2017. The application was deemed complete on May 5th. The Public Hearing is scheduled for July 18th. The Applicant hereby requests City of Renton approval for: 1) Code Amendment to include the development site and surrounding area in the City’s Targeted Area for Multifamily Residential Tax Exemption (“MFTE”). 2) 12 year MFTE exemption status History and Justification for Request The State of Washington and City of Renton each have adopted code requirements for MFTE status (RCW 84.14, sub-chapters and RMC 4-1-220). The VIA 405 PUD application currently under consideration at City of Renton proposes to develop the 2.6 acre site and this site meets the stated purposes of both adopted codes for inclusion AGENDA ITEM #2. a) 24 May 17 Mr. Chip Vincent Page 2 of 4 in the targeted MFTE area. Both codes encourage and facilitate new multifamily residential development with MFTE when:  Affordable residential opportunities are constrained. Overall, multifamily residential vacancy in Renton is currently less than 5%. Within the Urban Area where VIA 405 apartments can be constructed, overall apartment vacancy is less than 4% and the vacancy rate for affordable units is even less. Supply is constrained and demand is growing. Pinnacle and Greystar, our region’s largest apartment management firms estimate over 90% of new multi-family construction in Seattle, Bellevue and surrounding municipalities are being constructed with MFTE. New construction of affordable housing in Renton is also constrained by continually rising construction costs. Labor costs throughout the Puget Sound area are escalating at a much faster pace than rents for affordable and market rate units. VIA 405 can add 54 new affordable rate units to City of Renton’s affordable inventory. The cost to construct the 54 affordable rate units within this project will approximate $13,500,000 and will greatly exceed the value of tax credits received. Job growth in Renton is accelerating and quickly creating more demand for market rate and affordable apartment units. VIA 405 will provide much needed new housing in close proximity to job growth sectors, particularly health care and technology. VIA 405 can provide 54 units or more of new affordable housing in close proximity to these job growth sectors. The VIA 405 proposal will also bring a major land use improvement to one of Renton’s primary entries, South Grady Way.  New multifamily residential opportunities abut public transportation centers (“Transit Oriented Development (“TOD”)). The VIA 405 apartment site is adjacent to the South Renton Transit Center, a Bus Rapid Transit (“BRT) center recently voter approved under Sound Transit 3 (“ST3”). This new 8.3 acre BRT facility will be a strategic link along Interstate 405 connecting Renton with Seattle Tacoma International Airport, Bellevue and Seattle. A landscaped, dedicated pedestrian walkway, alleviating daily vehicle use, will directly link VIA 405 apartments with the new transit center.  New multifamily construction will utilize existing infrastructure including utilities, roads, and open spaces. The development site is currently served by both dry (electric/gas) and wet (water- domestic and fire) utilities sufficient to serve the proposed apartment community. Minor underground utility revisions will occur only in the immediate area of the proposed building, away from existing public arterials. There will be no requirement for new roadway development. Traffic studies required by the City’s PPUD have been submitted and indicate existing roads are adequate to serve VIA 405. AGENDA ITEM #2. a) 24 May 17 Mr. Chip Vincent Page 3 of 4 Freeway access to Via 405 Apartments is convenient. The I-405/SR-167 and I-405/Talbot Road interchanges are each within ¼ mile of VIA 405 Apartments.  New multifamily construction will alleviate congestion in urban areas. When complete, South Renton Transit Center/BRT service and VIA 405 Apartments form a cooperative relationship moderating daily vehicle counts on lower capacity City streets.  New multifamily construction complements existing retail and office uses. VIA 405 residents will enjoy walkable access to restaurants, banking, grocery, pharmacy and personal services at Renton Village Shopping Center. Walking access also exists to nearly 500,000 square feet of office space including The Evergreen Building and Triton Towers office complex. Development of VIA 405 will increase City of Renton retail sales tax revenue.  Underutilized sites contribute to residential housing opportunities. The development site is an excellent example of underutilization. The current cinema building is functionally obsolete. Development of an apartment community at the site is the highest and best use and contributes to residential opportunities envisioned by State of Washington under its Multifamily Tax Exemption program. Office use of the development site is not feasible in the foreseeable future. Nearly 600,000 SF of office space are currently available in close proximity to the VIA 405 site. Another 750,000 square feet of office space are under construction at Southport. Vision Renton Village, including the VIA 405 site, is a 24 acre site. VIA 405 represents the beginning of a longer term development plan that can incorporate retail re-development, residential uses including senior housing, market rate and affordable apartment units, and limited office uses. A master planned community envisioned for the Renton Village urban area can be facilitated with the tax exemption program. The Landing on the north end of Renton’s urban center is a prime example of how State and City have employed the tax exemption program to enhance the quality of affordable multifamily residential and retail opportunities. Summary AGENDA ITEM #2. a) 24 May 17 Mr. Chip Vincent Page 4 of 4 The proposal for VIA 405 apartments meets and exceeds the stated purposes of City of Renton and State of Washington codes for inclusion in the Multifamily Tax Exemption program. Development of VIA 405 Apartments will:  Add a minimum of 54 units of affordable housing to City of Renton’s affordable housing inventory,  Cluster high density residential use in immediate proximity to public transit (Transit Oriented Development),  Minimize the need for City improvement of public utilities and roads,  Complement existing retail, office and public open space land uses,  Reduce vehicular congestion in Renton’s urban core We therefore request the City’s approval for code amendment to extend the MFTE targeted area boundary to the VIA 405 site and for the 12 year exemption. Please let us know if further information will assist the City’s decision process. Respectfully Yours, RVA CINEMA LLC a Washington limited liability company By: SMG CINEMA LLC, a Washington limited liability company, Its Manager By: ______________________ Michael Sandorffy, Manager AGENDA ITEM #2. a) Edmonds Ave NEMain Ave SN 3rd St NE 12th St S 7th St S 2nd St H ouserW aySNE 16th St N 4th St WilliamsAveNWilliams Ave SWellsAveSTalbotRdSSunsetBlvdNET a ylor Pl N WWells Ave NN E 3 rd S tHouserWayBypassMonroe Ave NENE7thSt Taylor Ave NWNE 2nd St NE10thSt N 6th St ShattuckAveSLoganAveNRainierAveSBronsonW a y N S 4th St S 3rd St Park Ave NAberdeenAveNES G ra dyW ayHardieAveSWN 8th St NE 4th St N E P a rk D rBurnettAveSAirport Way SW Grady Wa y LoganAveSS 4 th P lN 10th S tGarden Ave NN1 0 thPlLoganAveN S3 rd PlRainierAveN SunsetBlvdNMonroeAveNEGar d e n Ave NHous e r Wa y NL ak e Wa s hi n g t on B l vdNMapleValleyHwyCedar Ri ver LakeWashington Gene CoulonMemorialBeach Park HighlandsPark WindsorHills Park LibertyPark CedarRiver Park RiverviewPark SeniorCenter Lake StreetOpen Space HoneyCreekGreenway MaplewoodPark PhilipArnoldPark Cedar RiverNatural Area ¥405 ¥405 ¥405 ¥405 UV169 Sunset Downtown UV167 Sunset Eligible Area Downtown Eligible Area Proposed City Center TOD Eligible Area Parks & Open Space City Limits City CenterTOD Source: City of Renton, 2018 0 750 1,500 2,250Feet° Eligible Areas for Multifamily Housing IncentivesAGENDA ITEM #2. a) Page 1 of 2 CITY OF RENTON Community and Economic Development Department City Center Community Plan Amendment to Strategy 8.3 Staff: Angie Mathias Date: March 29, 2018 ______________________________________________________________________________ General Description: The City Center Community Plan strategy 8.3 seeks to create a greenway/promenade between the Cedar River and N 1st Street. This has caused concern for residents in that area because the strategy required acquisition of private property. In response to this concern, the City developed an alternative concept that utilizes only property that is already in public ownership. This concept was supported by many members of the public, however there was a great deal of concern about the potential loss of the experience of walking along the river. The revised draft language works to address the concerns shared while keeping the keeping the language of the strategy at a high level. Details would be established if a park planning process is initiated. List of Exhibits: Redline Amendment of Strategy 8.3 Background The City Center Community Plan contains eight goals and numerous strategies to accomplish those goals. The City Center Community Plan Advisory Board is tasked with making recommendations to Council regarding which implementation strategies should be prioritized for inclusion in departmental work programs. The City Center Community Plan Advisory Board has made recommendations in 2013 and 2016. In 2017, the Board in response to a request from Council amended their recommendations to include working on revising the language of implementation strategy 8.3. The first work done on the revisions to the strategy was to amend the plan to state that eminent domain would not be used to further the goal. The final piece of this work is to revise implementation strategy 8.3 to reflect the revised concept for the greenway/promenade. The revised strategy calls for only utilizing property that is in public ownership. This includes converting the one block long Riverside Drive South from a two lane road to pedestrian pathway and drive aisle to provide access to the existing businesses. Riverside Drive North is envisioned to be reduced in width to become a shared roadway or woonerf. This also would provide additional greenspace. The consideration of the removal of the pathway along the river’s edge raised a great deal of concern from many trail users. As shown on Exhibit 1, the revised implementation strategy language calls for balancing “the goals of naturalizing the river corridor, improving recreational opportunities, increasing greenspace, and providing opportunities to experience the water”. Identifying how all of these goals will be achieved would occur when the conceptual plan for the park and/or trail is developed. To date, this planning effort has not been prioritized or AGENDA ITEM #3. a) City Center Community Plan Amendment to Strategy 8.3 Page 2 of 2 March 29, 2018 funded. After a conceptual plan is developed the next step would be to develop a detailed design. The revised language for this implementation strategy calls for “providing public water access, connecting the pathway to the library, addressing safety and lighting concerns, integrating pedestrian and bicycle connections, and ensuring properties at North and South Riverside Drive can be accessed”. Concerns about what the trail experience will be, pedestrian safety, where public access to the river occurs, etc. would be explored and identified in the planning effort associated with the development of a detailed plan. To date, this planning effort has also not been prioritized or funded. Staff Recommendation: Amend the City Center Community Plan implementation strategy 8.3, as shown in Exhibit 1, to reflect the revised concept for a greenway/promenade along the Cedar River. Impact Analysis Effect on rate of growth, development, and conversion of land as envisioned in the Plan The proposed amendment has no effect on the rate of growth, development, or conversion of land as envisioned in the Plan. Effect on the City’s capacity to provide adequate public facilities The proposed amendment has no effect on the City’s capacity to provide adequate public facilities. Effect on the rate of population and employment growth The proposed amendment has no effect on the rate of population and employment growth. Whether Plan objectives are being met as specified or remain valid and desirable The proposed amendment has no effect on Plan objectives. Effect on general land values or housing costs The proposed amendment has no effect on general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected There are no capital improvements or expenditures being made or completed in association with the proposed amendment. Consistency with GMA and Countywide Planning Policies The proposed amendment has no effect GMA or Countywide Planning Policies. Effect on critical areas and natural resource lands The proposed amendment has no effect on critical areas or natural resource lands. AGENDA ITEM #3. a) 8.3 Create a greenway/promenade along the Cedar River at North and/or South Riverside Drive. The greenway/promenade would provide additional greenspace for the City Center, improve access to the Cedar River, and provide potential restoration opportunities. 8.3.1: Complete an initial conceptual plan for a greenway/promenade along the Cedar River. Additional Details: The City should complete a conceptual plan for the greenway/promenade along the Cedar River. The conceptual plan should balance the goals of naturalizing the river corridor, improving recreational opportunities, increasing greenspace, and providing opportunities to experience the water. Permitting requirements, maintainability, and costs will also be considerations in conceptual design development. The design of the greenway/promenade should utilize existing publicly owned land and existing right-of-way at North and South Riverside Drive as shared roadways. It should also be coordinated with the planning and design of the Civic Node area, which includes Liberty Park, the KCLS Main Renton Library, the Renton History Museum, and the Cedar River (discussed in 3.1) as well as, the Parks, Recreation, and Natural Areas Plan. The City shall not utilize eminent domain in the furtherance of this policy. Responsible Party: Lead: Planning; Support: Community Services, Transportation Resources: $ Public Involvement: This initial phase would not involve a great deal of public engagement, and would focus on gathering information for the detailed design. The detailed design (discussed in 8.3.2) would involve the public. Timeframe: Short-term. Artist rendering of what North and South Riverside Drive(s) could look like. AGENDA ITEM #3. a) 8.3.2: Complete a detailed design and implementation strategy for the greenway/promenade based on the conceptual design. Additional Details: Further refine the conceptual plan with ecological restoration goals, cost estimates, and implementation timelines. The detailed plan should also explore opportunities for providing public water access, connecting the pathway to the library, addressing safety and lighting concerns, integrating pedestrian and bicycle connections, and ensuring properties at North and South Riverside Drive can be accessed. Responsible Party: Lead: Transportation; Support: Community Services, Planning Resources: $$$ Public Involvement: The community should be engaged in the design of the greenway/promenade. The City should work closely with property owners, business owners, and residents. Timeframe: Mid-term. AGENDA ITEM #3. a)