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HomeMy WebLinkAboutDA_Dev_Agmt_Second_Working_Draft_210720_v1 Development Agreement between City of Renton and King County Page 1 DRAFT Dated JULY 20, 2021 ER 408 WORKING DRAFT FOR DISCUSSION PURPOSES ONLY – this is a rough outline of potential development terms. All terms are subject to discussion, revisions, and negotiation. When Recorded, Return to: CITY CLERK’S OFFICE City of Renton 1055 S. Grady Way Renton, WA 98055 DEVELOPMENT AGREEMENT FOR PERMANENT SUPPORTIVE HOUSING SITE ON OAKESDALE Grantors: The City of Renton and King County Grantees: The City of Renton and King County Abbreviated Legal Description: TO BE INSERTED Additional Legal Description on Page ______ of Document (Exhibit A) Assessor’s Property Tax Parcel/Account Number: 918800-0148 OR □ NOT YET ASSIGNED THIS DEVELOPMENT AGREEMENT (“Agreement”), dated for reference purposes only as the ________ of _______, 2021, is made by and between the CITY OF RENTON, a municipal corporation organized and existing under the laws of the State of Washington (“City”), and KING COUNTY, a Washington home rule charter county (“County”), pursuant to the authority of RCW 36.70B.170 et seq. The City and County are the Parties to this Agreement. RECITALS Development Agreement between City of Renton and King County Page 2 DRAFT Dated JULY 20, 2021 Authority A. The Washington State Legislature has authorized the execution of a development agreement between a local government and an entity having ownership or control of real property within its jurisdiction . RCW 36.70B.170-.210 (the “Development Agreement Statute”). B. A development agreement must set forth the development standards and other provisions that shall apply to, govern and vest the development, use and mitigation of the development of the real property for the duration specified in the agreement. RCW 36.70B.170(1). C. By way of emergency ordinance (Ordinance No. 6019), which took effect upon passage on June 14th, 2021, the Renton City Council amended and extended its interim zoning previously adopted in Ordinance 5996 . Ordinance No.6019 relaxed certain conditions applicable to permits for homeless services uses, including permanent supportive housing, and authorized the use of development agreements to be used as an alternative to conditional use permits. The Project C. The County purchased that certain real property comprising 3.88 acres more or less, located along Oakesdale Avenue SW near its intersection with SW Grady Way, addressed as 1150 Oakesdale Avenue SW, Renton, Washington 98057, and situated within the municipal boundaries of the City of Renton in King County, Washington. Such real property is legally described on Exhibit A attached hereto and depicted on Exhibit B (the “Property”). D. The Property is zoned “Commercial Office” (or, “CO”) by the City. The Property has been developed since approximately 1998 with a building that is approximately 67,842 square feet in floor area and has been used as an extended-stay hotel with 110 individual hotel rooms each offering a bed or beds, a kitchenette, a bathroom, and are approximately 318 – 470 square feet in size. Pursuant to Ordinance 5996, which added a definition and regulations for the “Hotel, extended-stay” land use, the City considers the Property a “Hotel, extended-stay” land use. Prior to Ordinance 5996, the City considered the Property a “Hotel” land use. Both “Hotel, extended -stay” and “Hotel” land uses are uses permitted outright in the CO zone. Renton Municipal Code (“RMC”) 4-2-060. E. The County intends to select one or more third-party operators (collectively, the “Operator”) who will operate the Property as permanent supportive housing (the “Permanent Supportive Housing Site”) as is further described in this Development Agreement between City of Renton and King County Page 3 DRAFT Dated JULY 20, 2021 Agreement. In the future, the County will also likely transfer ownership of the Permanent Supportive Housing Site to a third -party. F. Through the approval of this Agreement, the Renton City Council issues land use approval for the Permanent Supportive Housing Site as an alternative to the County applying for and obtaining a conditional use permit. G. Pursuant to the State Environmental Policy Act, chapter 43.21C RCW and its implementing rules, chapter 197-11 WAC (“SEPA”), the City and the County agree that the County shall serve as lead agency for purposes of SEPA review of the Permanent Supportive Housing Site. H. It is the intent of this Agreement to provide for agreed conditions of the City’s approval of the Permanent Supportive Housing Site, as an alternative approval process to a conditional use permit. I. The Renton City Council held a public hearing on this Agreement on ____________, 2021, after which the Renton City Council authorized the City to enter into this Agreement with the County. NOW THEREFORE, in consideration of the mutual agreements of the Parties set forth herein, as well as other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby covenant and agree as follows: AGREEMENTS 1. ADDITIONAL DEFINITIONS. 1.1 Development Regulations has the same meaning as that term is used in the Development Agreement Statute (RCW 36.70B.170(3) and includes regulations encompassed in Title IV of the Renton Municipal Code (“RMC”) in effect on the Vesting Date. 1.2 Permanent Supportive Housing has the same meaning as set forth in Section 6 of Engrossed Second Substitute House Bill 1220, 67th Legislature, 2021 Regular Session, which is: subsidized, leased housing with no limit on length of stay that prioritizes people who need comprehensive support services to retain tenancy and utilizes admissions practices designed to use lower barriers to entry than would be typical for other subsidized or unsubsidized rental housing, especially related to rental history, criminal history, and personal behaviors. Permanent supportive housing is paired with on-site or off-site voluntary services designed to support a person living with a complex and disabling behavioral health or physical health condition who was experiencing homelessness or was at imminent risk of homelessness prior to moving Development Agreement between City of Renton and King County Page 4 DRAFT Dated JULY 20, 2021 into housing to retain their housing and be a successful tenant in a housing arrangement, improve the resident’s health status, and connect the resident of the housing with community-based health care, treatment, or employment services. Permanent supportive housing is subject to all of the rights and responsibilities defined in chapter 59.18 RCW. 1.3 The Vesting Date is ______. [Note: This will be the date on or after the Effective Date of this Agreement. 2. INTENT. This Agreement establishes certain roles and responsibilities for the use of the Property for permanent supportive housing. It is the intent of this Agreement to establish obligations regarding, as well as required project elements of and standards for, such use to be applied to the Property as of the Vesting Date. 3. PROJECT ELEMENTS AND OTHER DEVELOPMENT STANDARDS AND REQUIREMENTS. 3.1 Project Elements. The Parties agree that the Permanent Supportive Housing Site will include the following project elements. 3.1.1 Permitted Use: Under this Agreement, the Property may be used and operated as a Permanent Supportive Housing land use. Such land use shall be considered allowed and established effective on the following date: the latter of (1) the Vesting Date or (2) the date that the County completes its SEPA Threshold Determination for the Permanent Supportive Housing Site. 3.1.2 Maximum Occupancy: The Permanent Supportive Housing Site may serve no more than 110 persons at any time. At all times, the County shall reserve at least fifteen (15) beds within the Property for occupancy by persons referred to the Property by the City. 3.1.3 Operations: The Permanent Supportive Housing Site shall be operated in compliance with the following plans attached to this Agreement: 3.1.3.1 On-site security plan. Exhibit C. 3.1.3.2 Transportation plan for residents to obtain adequate services. Exhibit D. 3.1.3.3 On-site support services plan appropriate to the needs of the residents. Exhibit E. Development Agreement between City of Renton and King County Page 5 DRAFT Dated JULY 20, 2021 3.1.3.4 Common recreation space and recreation services plan. Exhibit F. 3.1.3.5 Designated common outdoor space, including smoking areas, plan. Exhibit G. 3.1.3.6 Fire / life safety plans approved by the Renton Regional Fire Authority (RRFA). Exhibit H. 3.1.3.7 Discharge plans for residents who voluntarily or involuntarily terminate their tenancy at the Permanents Supportive Housing Site. Exhibit I. 3.1.3.8 Plan for supporting residents’ transition into other housing. Exhibit J. Shouldn’t Exhibits I and J be one document, not two? 3.1.3.9 [Placeholder to address building code occupancy type issues. To further discuss, County should provide to the City floor plans for each floor of the building labeling/showing all International Building Code (IBC, as adopted and modified by Renton) occupancy types. If occupancy type is changing, permit(s) may be required. All for further discussion.] 3.2 Other Development Standards. Pursuant to RCW 36.70B.170, the following development standards apply to the Emergency Housing Site. 3.2.1 Fees: The Development Agreement fee is $10,000 plus a 5% Technology Surcharge Fee. 3.2.2 SEPA Mitigation Measures: Any SEPA mitigation measures for the Permanent Supportive Housing Site will be determined through the SEPA review process, with the County serving as lead agency. Any SEPA mitigation measures imposed will be subsequently attached to this Agreement as Exhibit K. 3.2.3 Design Standards: Design standards do not apply to this Agreement because it does not address any proposed exterior work at the Property. Any exterior work proposed at the Property may trigger a separate permitting process from the City, and the City will determine the applicability of any design standards at the time that any exterior work is proposed. 3.2.4 Affordable Housing: Use of the Property for Permanent Supportive Housing will be affordable housing as that term is used in RCW 36.70A.030(2). Development Agreement between City of Renton and King County Page 6 DRAFT Dated JULY 20, 2021 3.2.5 Parks and Open Space Preservation: Not applicable; no exterior work is proposed under this Agreement. 3.2.6 Phasing: Not applicable; no phasing is proposed. 3.2.7 Review Procedures and Standards for Implementing Decisions: This Agreement provides land use approval for the Permanent Supportive Housing Site. This Agreement does not address review and approval of permits necessary under applicable state, national, uniform, and international codes such as for work related to building, mechanical, plumbing, electrical, and fire protection (collectively, “Construction Work”). If any Construction Work is proposed on the Property, standard permitting processes pursuant to the RMC apply. 3.3 Relationship between the County, Operator, and Subsequent Property Owner. Notwithstanding the role of any Operator, the Property owner shall remain jointly and severally responsible for compliance with this Agreement. While it remains the Property owner, the County shall provide a copy of this Agreement to the Operator and shall require the Operator to comply with all applicable provisions of this Agreement including all express obligations of the County. 4. TERM. The term of this Agreement shall begin on the Effective Date (defined below) and continue for four (4) years (the “Term”). The Agreement shall continue in force for the full duration of the Term. 5. VESTING. 5.1 Vesting Period. In accordance with the Development Agreement Statute, the Emergency Housing Site is vested to the Development Regulations in effect on the Vesting Date, and such vesting shall end on the last date of the Term unless the Term is sooner terminated pursuant to Section 6.3.2. 5.2 Vesting Exceptions. During the Term, the City shall not impose on the Permanent Supportive Housing Site any modified or new or additional Development Regulations, except any new federal or state statutes, rules, regulations, administrative interpretations or court decisions that add regulatory requirements on the City that it must enforce that are not subject to a grandfather or safe harbor clause that would delay the City’s enforcement responsibility beyond the life of this Agreement. 5.3 City’s Reserved Authority. Notwithstanding anything to the contrary in this Agreement, as required by the Development Agreement Statute, RCW 36.70B.170(4), the City reserves the authority to impose new or different Development Regulations to the extent required by a serious threat to public health and safety. Development Agreement between City of Renton and King County Page 7 DRAFT Dated JULY 20, 2021 6. GENERAL PROVISIONS. 6.1 Authority; Severability. The City and County each represent and warrant it has the respective power and authority, and is duly authorized to execute, deliver and perform its obligations under this Agreement. The Parties intend this Agreement to be interpreted to the full extent authorized by law as an exercise of the City’s authority to enter into such agreements, and this Agreement shall be construed to reserve to the City only that police power authority which is prohibited by law from being subject to a mutual agreement with consideration. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of County and the City. If any provision of this Agreement is determined to be unenforceable or invalid by a court of law, then (i) this Agreement shall thereafter be modified to implement the intent of the Parties to the maximum extent allowable under law, (ii) the Parties agree to seek diligently to modify the Agreement consistent with the court decision, and (iii) neither party shall undertake any actions inconsistent with the intent of this Agreement until the modification to this Agreement has been completed. (i) conflicts with (ii) 6.2 Amendment to this Agreement. Any amendment to this Agreement must be in writing and is not in effect until and unless approved by the City and County. Need city council approval? 6.3 Modifications to Project Elements or Development Standards. 6.3.1 In addition to the provisions of Section 6.2, the following applies to any proposed modification to Project Elements or Development Standards. The Administrator of the City’s Community and Economic Development Department, or designee, may approve administrative minor modifications to the Project Elements or Development Standards. Administrative minor modifications mean those changes to the Project Elements or Development Standards that do not (1) involve more than a ten percent (10%) increase in area or intensity of the use; (2) result in any significant environmental impact not adequately removed or mitigated by previous documents; and (3) expand beyond the Property. 6.3.2 Any modifications that are not administrative minor modifications as described in this Section shall not be allowed until and unless the Renton City Council has held a public hearing on the proposed modifications and approved them. In the alternative, the County may elect to terminate this Agreement and pursue new permitting from the City, according to the applicable City laws and regulations in effect at that time. Development Agreement between City of Renton and King County Page 8 DRAFT Dated JULY 20, 2021 6.4 Recording; No Third Party Beneficiary. Pursuant to the development agreement statute, RCW 36.70B.190, this Agreement or a memorandum thereof shall be recorded with the King County Recorder’s Office. This Agreement is made and entered into for the sole protection and benefit of the Parties, their successors, and assigns. No other person shall have any right of action based upon any provision of this Agreement. 6.5 Notices. All communications, notices and demands of any kind which a party under this Agreement requires or desires to give to any other party shall be in writing and either (i) delivered personally (including delivery by professional courier services), or (ii) deposited in the U.S. mail, certified mail postage prepaid, return receipt requested, to the addresses set forth with each signature. Notice by hand delivery shall be effective upon receipt. If deposited in the mail, notice shall be deemed delivered 48 hours after deposited. Any party at any time by notice to the other party may designate a different address or person to which such notice or communication shall be given. Additional courtesy notice may be provided by electronic means (such as e-mail), but shall not substitute for the form of notice required by this Section. If to the City: Renton City Hall Attn: Mayor Attn: Community & Economic Development Administrator Attn: City Attorney Attn: City Clerk 1055 S. Grady Way Renton, WA 98057 Email addresses may be added Fax number will be added If to the County: To whom? With a copy to: Whom? 6.6 Applicable Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. Any action with respect to this Agreement shall be brought in King County Superior Court, Washington , subject to and limited by the Dispute Resolution provisions set forth in Section 6.9. Development Agreement between City of Renton and King County Page 9 DRAFT Dated JULY 20, 2021 6.7 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. 6.8 Headings; Recitals and Attachments. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this Agreement. The recitals and attachments to this Agreement are incorporated in this Agreement by this reference as if fully set forth. 6.9 Dispute Resolution. 6.9.1 If any dispute arises out of any aspect of this Agreement, the Parties shall first try in good faith to amicably resolve the dispute by elevating it to their respective agency directors. If that effort is unsuccessful, the parties shall next attempt to resolve the dispute through mediation. This mediation must commence within 60 days after any party to the Agreement notifies the other party requesting mediation to resolve a dispute. 6.9.2 If the Parties are not able to resolve their dispute through mediation, they may agree to submit the dispute for resolution through binding arbitration. In such instances, the following procedure shall apply: First, the arbitrator shall be mutually chosen by both Parties. In no case may a mediator who has mediated a claim serve as the arbitrator on the same claim. If the Parties cannot agree on an arbitrator, either party or the Parties jointly may apply to the presiding judge of the King County Superior Court to appoint an arbitrator. The arbitrator will consult with the Parties and establish the rules and procedures for the arbitration that, in light of the nature of the matter under dispute, will provide an efficient and fair means for e ach of the Parties to present its case. Among other things, the arbitrator will establish a schedule for completing the arbitration and issuing a decision. The decision of the arbitrator will be final and may be enforced by an action brought in King Coun ty Superior Court. In such an action to enforce the arbitrator’s decision, the prevailing party will be entitled to recover all costs and expenses, including all legal fees, incurred in that action. 6.9.3 The Parties will bear the costs of retaining a mediator or an arbitrator equally. 6.10 Covenants Running with the Land. The conditions and covenants set forth in this Agreement shall run with the land, and the benefits and burdens shall bind and inure to the benefit of the Parties. The County and every purchaser, assignee or transferee (including the Operator) of an interest in the Property, or any portion Development Agreement between City of Renton and King County Page 10 DRAFT Dated JULY 20, 2021 thereof, shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, but only with respect to the Property, or such portion thereof, sold, assigned or transferred to it. Any such purchaser, assignee or transferee shall observe and fully perform all of the duties and obligations of the County contained in this Agreement, as such duties and obligations apply. [Signatures follow on the next page.] Development Agreement between City of Renton and King County Page 11 DRAFT Dated JULY 20, 2021 IN WITNESS WHEREOF, this Agreement has been entered into by the City and the County effective on the last date of signature below (the “Effective Date”). KING COUNTY By:__________________________ Name Its: Title Date: ________________________ CITY OF RENTON By: Armondo Pavone Mayor Date: ________________________ ATTEST: By:___________________________ Jason Seth City Clerk APPROVED AS TO LEGAL FORM: By:___________________________ Shane Moloney City Attorney Development Agreement between City of Renton and King County Page 12 DRAFT Dated JULY 20, 2021 ACKNOWLEDGEMENTS STATE OF ___________ ) ) ss: COUNTY OF ___________ ) On this _____ day of _______, 2021, before me, a Notary Public in and for the State of _______, County of ________, personally appeared ________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument, who has produced sufficient proof of his/her power and authority to execute and sign the instrument in the name of and on behalf of KING COUNTY, to be the free and voluntary act and deed of said association for the uses and purposes mentioned in the instrument. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC in and for the state of ______________________. Notary (print):______________________ My appointment expires: _____________ Development Agreement between City of Renton and King County Page 13 DRAFT Dated JULY 20, 2021 STATE OF ___________ ) ) ss: COUNTY OF ___________ ) On this _____ day of _______, 2021, before me, a Notary Public in and for the State of Washington, County of King, personally appeared Armondo Pavone, Mayor, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument, who ha s produced sufficient proof of his power and authority to execute and sign the instrument in the name of and on behalf of CITY OF RENTON, to be the free and voluntary act and deed of said association for the uses and purposes mentioned in the instrument. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC in and for the state of ______________________. Notary (print):______________________ My appointment expires: _____________ [EXHIBITS]