HomeMy WebLinkAboutQT Agenda BillAB - 1881
City Council Regular Meeting - 03 Apr 2017
SUBJECT/TITLE: Quendall Terminals Public Hearing
RECOMMENDED ACTION: Council Concur
DEPARTMENT: Community & Economic Development
STAFF CONTACT: Vanessa Dolbee, Current Planning Manager
EXT.: 7314
FISCAL IMPACT SUMMARY:
N/A
SUMMARY OF ACTION:
The proponents for the Quendall Terminals land use application have requested the City consider a
Development Agreement. The Land Use application consists of a request for Master Site Plan, Binding Site
Plan, a Shoreline Permit, and now a Development Agreement for the construction of a mixed-use
development located at 4350 Lake Washington Blvd. The site is 21.46 acres and is zoned
Commercial/Office/Residential (COR). The Enhanced Alternative would contain 692 residential units, 42,190
square feet of commercial uses (retail and restaurant), 1,352 parking spaces, and 12.9 acres of parks/open
space.
A Public Hearing is tentatively scheduled for the subject land use application on April 18, 2017. The requested
Development Agreement establishes the new Enhanced Development Alternative and allows for an extended
time frame for the land use entitlements and associated development standard vesting from 5 years to 10
years, with a possible 5 year extension, for a total of 15 years. A public hearing is required to be held by City
Council when considering a Development Agreement. However, there is an opportunity to consolidate the
required public hearing for the Development Agreement with the public hearing for the land use entitlements
with the City’s Hearing Examiner. By consolidating the public hearing process for both the land use
entitlements and the development agreement, the public will be able to comment on both the development
project and the associated development agreement at one public hearing. Se cond, the Hearing Examiner
would have the benefit of considering all aspects of the project and associated public comments when making
a decision on the land use entitlements and a recommendation to City Council. A consolidated public hearing
process would streamline and simplify the public process for the overall project. The final decision authority
on the Development Agreement would remain with City Council, following a recommendation provided by the
City’s Hearing Examiner.
EXHIBITS:
A. Draft Development Agreement
STAFF RECOMMENDATION:
The Administration recommends consolidating the public hearing process for both the land use entitlements and the
development agreement and deferring this process to the City's Hearing Examiner.
Draft Quendall Terminals Development Agreement Page 1
When Recorded, Return to:
CITY CLERK’S OFFICE
City of Renton
1055 S. Grady Way
Renton, WA 98055
DEVELOPMENT AGREEMENT FOR QUENDALL TERMINALS
Grantors: The City of Renton and Quendall Terminals
Grantees: The City of Renton and Quendall Terminals
Abbreviated Legal Description: TO BE INSERTED
Additional Legal Description on Page 15 of Document (Exhibit A)
Assessor’s Property Tax Parcel/Account Number: 2924059002 OR □ NOT YET ASSIGNED
THIS DEVELOPMENT AGREEMENT (“Agreement”) by and between the CITY OF
RENTON, a municipal corporation organized and existing under the laws of the State of
Washington (“City”), and QUENDALL TERMINALS, a Washington joint venture, its
successors and assigns (“Developer”), is made and entered into this ____ day of
________ , 2016 (the “Effective Date”) pursuant to the authority of RCW 36.70B.170 et
seq. The City and Developer are the Parties to this Agreement.
RECITALS
A. Developer is the developer of that certain real property comprising 20.3
acres more or less located between Lake Washington and Lake Washington Boulevard,
and that certain real property comprising 1.2 acres more or less across the railroad right
of way to the east, both within the municipal bo undaries of the City of Renton in King
County, Washington, and legally described on Exhibit A attached hereto and depicted on
Exhibit A-1 (the “Quendall Property” or “Property”)).
B. Developer intends to develop the Quendall Property as a mixed-use
multi-family residential development (the “Project”), as more particularly described in
land use applications, LUA09-151, on file with the City of Renton and, subject to this
Agreement, including the Enhanced Alternative described herein. Project development
may be phased, subject to the conditions of the Hearing Examiner’s Decision.
Draft Quendall Terminals Development Agreement Page 2
C. The Quendall Property has received a Superfund designation from the
U.S. Environmental Protection Agency (“EPA”) and Developer is currently working on a
remediation plan with the EPA. This Agreement pertains to redevelopment of the
remediated Property. The Parties intend that this Agreement be construed to enable
development authorized by the Hearing Examiner’s Decision on the Master Plan and
subsequent necessary and/or appealed land use decisions. Such development shall
contain at minimum the attributes identified as Project Elements in Section 3 and
comply with all conditions and amenities identified in the approved Master Plan.
Development would occur in a manner consistent with post-remediation site conditions
and such controls as are imposed by or agreed to with the EPA. For instance, if
remediation is undertaken in phases, then Project phasing may be coordinated to occur
first on remediated areas of the Property, pending a City approved final phasing plan
that is consistent with the phasing conditions of the Master Plan Decision or any
subsequent land use actions.
D. Developer submitted Project applications for a Master Plan approval,
Binding Site Plan approval and Shoreline Substantial Development permit, which
applications were deemed complete by the City on February 10, 2010 (together, the
“Initial Project Applications”).
E. Pursuant to the State Environmental Policy Act, Ch. 43.21C RCW (“SEPA”),
the City issued a Draft Environmental Impact Statement (the “DEIS”) on December 10,
2010, on the Initial Project Applications and alternatives. In response to comments on
the DEIS, Developer developed a Preferred Alternative that was downsized from the
DEIS, and office space was removed from the proposal. Key Project specifications of the
Preferred Alternative are set forth in the Master Plan application materials, LUA09-151
and attached to the Staff Report to the Hearing Examiner as Exhibits. The City issued an
addendum to the DEIS on October 19, 2012, which addressed the Preferred Alternative
(the “Addendum”). A Final Environmental Impact Statement (the “FEIS”) and Mitigation
Document were issued on August 31, 2015.
F. In January 2016, at the City’s request, Developer updated the Initial
Project Applications plan sets to reflect the Preferred Alternative and incorporate plan
set level components of the specified SEPA mitigation measures.
G. Pursuant to the Revised Code of Washington Chapter 36.70B.170 et seq.
(“the Development Agreement Statute”), the City may enter into a development
agreement with an entity having ownership or control of real property within its
jurisdiction.
H. A development agreement can provide for an extended duration of
approvals. The Developer is willing to incorporate more public benefits into the Project,
as specified in the Enhanced Alternative set forth herein, in exchange for extended
permit duration.
Draft Quendall Terminals Development Agreement Page 3
I. It is the intent of this Development Agreement to provide for
development of the Project using the Enhanced Alternative addressed herein, together
with all other terms and conditions of this Agreement, provided, however, that the
Parties acknowledge that Project applications for the Enhanced Alternative are subject
to hearing and decision by the Renton Hearing Examiner as provided under Renton
Municipal Code Sections 4-9-200(D)(1) and 4-8-070(J).
J. The City’s Responsible SEPA Official has reviewed the Project changes
proposed under the Enhanced Alternative and this Development Agreement in
accordance with SEPA, and has issued a determination of consistency with the existing
SEPA review. The DEIS, Addendum, FEIS, and Determination of Consistency together
constitute the “Project-level SEPA Review.”
K. The City Council held a public hearing on this Development Agreement on
____________, 2017.
L. The City has found that development of the Enhanced Alternative of all or
portions of the Quendall Property consistent with this Agreement and the associated
land use decisions will benefit the community at large including the Quendall Property.
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.
Development Regulations mean those regulations encompassed in Title IV of
the Renton Municipal Code (“RMC”) in effect on the Vesting Date.
Enhanced Alternative means the Project substantially as described in the Project
Elements at Section 3 and on the Master Plan and associated conditions of approval as
approved by the Hearing Examiner.
Land Use Policies and Regulations mean Renton Comprehensive Plan land use
designations and policies, and the Development Regulations, in effect on the Vesting
Date.
Master Plan Decision means the decision of the Hearing Examiner on the Master
Plan, Shoreline Substantial Development Permit, and Binding Site Plan applications
under LUA09-151.
RMC means the Renton Municipal Code.
Draft Quendall Terminals Development Agreement Page 4
The Vesting Date is February 10, 2010, the date that the City determined that
Developer’s applications for a Master Plan approval, Binding Site Plan approval and
Shoreline Substantial Development permit were complete.
2. BASIS OF AGREEMENT.
2.1 Intent. This Agreement establishes certain roles and
responsibilities for the potential redevelopment of all or a portion of the Quendall
Property under the Enhanced Alternative described in Section 3 herein, including but
not limited to Developer commitments that development of the Master Plan shall be
consistent with the vested Land Use Policies and Regulations and the terms and
conditions of this Agreement and any associated land use decisions for the project. It is
the intent of this Agreement that redevelopment may be phased according to the
principles set out in this Agreement, subject to City of Renton approval and the
conditions set forth in the Master Plan Decision.
3. PROJECT ELEMENTS. The Project Enhanced Alternative shall include the
Project Elements which includes the following:
3.1 Enhanced Alternative. The Parties agree that the following
enhancements to the Preferred Alternative are in the public interest and support Project
objectives. The Parties agree that the Project with the Enhanced Alternatives should be
taken through the Hearing Examiner process in accordance with RMC 4-9-200(D)(1) and
4-8-070(J).
3.1.1 1.3 acres of the southwest corner of the Project shall be a
public park constructed by the Developer and maintained by the Homeowners’
Association, open for public use between the hours of dawn to dusk;
3.1.2 Retail/restaurant/office space and street activation
(fountains, artwork, etc.) shall be required at street level along Street B and along the
lakeside frontage of residential buildings and other street frontage as necessary to
qualify for a minimum of 50 percent of the building street frontage at a minimum depth
of 20 feet of the project site;
3.1.3 The developer and the City will collaborate in the
development of a public dock/pier associated with the public park. The Developer and
City shall jointly develop a future dock proposal for permitting and environmental
review that addresses public and Project interests to the parties’ mutual satisfaction
(“Future Dock Proposal”). The City will be responsible for obtaining all required permits.
The Developer shall fund permitting costs for the Future Dock Proposal and construct
the dock and any required mitigation, provided that both the City and Developer
approve of the final dock design, budget, and all dock permit conditions. Should the EPA
or either party not approve the dock location and design the City and the developer will
Draft Quendall Terminals Development Agreement Page 5
work together to develop an alternative proposal to allow for access to Lake
Washington while meeting the requirements of the EPA. The Future Dock Proposal,
design and permitting shall be completed within the first five (5) years of the term if this
agreement. The Future Dock Proposal shall be constructed and completed for public
access within this first ten (10) years of the term of this agreement. All work related to
the Future Dock Proposal shall be permitted, constructed, and final inspection
completed prior to final occupancy of the last building in the Master Plan.
3.1.4 The Parties agree that the City shall have the right and the
Developer is required, following year five of the Initial Term of this Agreement as
defined in Section 4, to conduct an updated transportation analysis in compliance with
SEPA (the “SEPA Transportation Update”), which shall be subject to City review. In
order to impose requirements of the SEPA Transportation Update, the property owner
shall be required to provide written notice to the City, after the foregoing time trigger
has occurred, that the SEPA Transportation Update (the “Update Notice”) will be
performed. The Transportation Update shall result in written findings and conclusions,
and may result in a recommendation for reasonable new future permit conditions and
mitigations for the Project, if required based on changed conditions and associated
Project impacts. If the SEPA Transportation Update identifies significant adverse
transportation impacts of the Project that are not mitigated in the original SEPA
transportation analysis, then the City may impose additional mitigation to address such
unmitigated Project impacts.
3.1.5 Building SW4 shall be constructed at no more than 3 floors over
parking, building SW3 shall be constructed at no more than 4 floors over parking, and all
other buildings shall be constructed at no more than 5 floors over parking.
3.2 Mitigation Plan. The Mitigation Plan consists of the mitigation
document issued on August 31, 2015 and any mitigation conditions added by the
Hearing Examiner in the Master Plan Decision. In addition the mitigation plan will
include any new transportation permit conditions and transportation mitigation
requirements for the Project as a result of the Transportation Update following year
five. The Mitigation Plan also will include any new transportation permit conditions and
transportation mitigation requirements for the Project as a result of the Transportation
Update following year 10 of the Initial Term of this Agreement, if a permit extension
under Section 4 of this Agreement is requested and permitted.
3.3 Project Phasing. Development of the Project may be phased
consistent with the approved Master Plan and SEPA Mitigation Document and any
subsequent land use approvals such as site plan review, both during remediation and for
purposes of Developer’s development program, including in response to market
conditions. The City and the Developer acknowledge that, generally, site remediation
under EPA’s oversight will occur before Project development, provided, however, that
during remediation the Developer may install certain Project infrastructure
Draft Quendall Terminals Development Agreement Page 6
components. The Parties further agree to allow phasing according to the following
phasing principles, provided, however, that the Parties may determine that a more
detailed Project Phasing Plan will be prepared to govern Project Phasin g:
3.3.1 A Project Phase may include one or more Project Lots.
Alternatively, a Project Phase may include one or more Project Buildings, as such
Buildings are defined and depicted in the Quendall Terminals Master Plan, LUA09-151.
3.3.2 Each Project Phase shall have all required infrastructure
and mitigation for the phase in place at the time of certificate of occupancy, or final
inspection if the phase or use does not require a certificate of occupancy, sufficient to
provide pedestrian and vehicular access, utilities and public facilities including parking
areas for bicycles and vehicles, site amenities identified for the phase and semi-private
open space.
3.3.3 Development of Lots or Buildings abutting Street B may be
prioritized to be the first Project Phase(s) of development, provided, however, that the
Parties agree to consider alternative Project Phasing priorities if needed in response to
sequenced remediation.
3.4 Duration of Project Permits. Provided that Project permits are
approved by the Hearing Examiner, all City land use permits and approvals issued for the
Project shall enjoy a duration through the term of this Agreement, including any
extensions under Section 4.
4. TERM. The term of this Agreement shall begin on the Effective Date and
continue for ten years from the earlier of (i) the date of issuance of the EPA’s Record of
Decision, or (ii) the Hearing Examiners Decision and/or any subsequent appeal decision
dates (“Initial Term”). This Agreement shall remain in effect during i ts term unless and
until Developer (owning at least 51 percent of the Quendall Property by assessed value
((excluding any City-owned land)) gives notice of termination. If 51 percent of the
residential and commercial space has been constructed and received a Certificate of
Occupancy (CO) then the City may extend this Agreement, following a second SEPA
Transportation Update, upon Developer’s request 30 days in advance of the sunset
date, for one additional five-year period of time.
5. VESTING.
5.1 Project Elements, Development Standards and Implementing
Approvals. In accordance with the Development Agreement Statute, Developer is
vested to the Development Regulations in effect on the Vesting Date, which extends to
City of Renton ordnance number 5523.
Draft Quendall Terminals Development Agreement Page 7
5.2 Vesting Exceptions. During the term of this Agreement, the City
shall not impose on the Project 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. In accordance with 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.
6. GENERAL PROVISIONS.
6.1 Authority; Severability. The City and Developer 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 Partie s 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 proh ibited 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 Developer 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.
6.2 Amendment; Minor Modifications. Any amendment to this
Agreement must be approved by the City and Developer so long as it owns any portion
of the Quendall Property or retains any responsibility for off-site mitigation, other
obligations under this Agreement, or obligations pursuant to any Record of Decision or
any NRD settlement. Notwithstanding the foregoing, upon request of Developer, a
designated City official may approve administrative minor modifications to the
Development Standards, which administrative modifications shall not be deemed
amendments to this Agreement. Administrative minor modifications mean those
changes to the Development Standards that do not materially increase impacts on
transportation or utility systems or the environment, taking into account agreed upon
mitigation, and those modifications which do not materially reduce buffers or open
space. Any modifications of Development Standards shall require the written consent of
Developer and the City, including administrative minor modifications under this section.
Draft Quendall Terminals Development Agreement Page 8
6.3 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 Parti es, their
successors and assigns. No other person shall have any right of action based upon any
provision of this Agreement.
6.4 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), (ii) sent by facsimile transmission with an additional copy mailed first
class, or (iii) 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 or
facsimile 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.
If to the City of Renton:
Renton City Hall
Attn: Mayor
Attn: Development Services Director
1055 S. Grady Way
Renton, WA 98057
If to Quendall Terminals:
Quendall Terminals
Attn: Robert Cugini
P.O. Box 359
Renton, WA 98057
and to
J.H. Baxter & Co.
Attn: Georgia Baxter
P.O. Box 5902
San Mateo, CA 94402-0902
With a copy to:
Campbell Mathewson
CenturyPacific, LLLP
Draft Quendall Terminals Development Agreement Page 9
1201 Third Avenue, Suite 1680
Seattle, WA 98101-3029
Davis Wright Tremaine
Attn: Lynn Manolopolous
777 108th Avenue NE, Suite 2300
Bellevue, Washington 98004-5149
Cable Huston LLP
Attn: James E. Benedict
1001 SW Fifth Avenue
Suite 2000
Portland, Oregon 97204-1136
T. Ryan Durkan
Hillis, Clark, Martin & Peterson P.S.
999 Third Avenue, Suite 4600
Seattle, WA 98101
6.5 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.
6.6 Multiple Originals. This Agreement may be executed in two (2) or
more facsimile or .pdf counterparts, each of which shall be deemed an original, but all of
which together shall constitute one instrument.
6.7 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 to this
Agreement and Exhibits A are incorporated in this Agreement by this reference as if fully
set forth.
6.8 Dispute Resolution.
6.8.1 If any dispute arises out of any aspect of this Agreement,
the Parties must first try in good faith to settle 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.
6.8.2 If the Parties are not able to resolve their dispute through
mediation, they agree to submit the matter for resolution through binding arbitration.
The arbitrator shall be mutually chosen by both Parties. In no case may a mediator who
Draft Quendall Terminals Development Agreement Page 10
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 each 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 County
Superior Court. In such an action, the prevailing party is entitled to recover all costs and
expenses, including all legal fees, incurred in that action.
6.8.3 The Parties will bear the costs of retaining a mediator or
an arbitrator equally.
Draft Quendall Terminals Development Agreement Page 11
IN WITNESS WHEREOF, this Agreement has been entered into by the City and
Developer effective on the last date of signature below.
DATED this _____ day of ____________________, 2017
Joint Venture known as QUENDALL TERMINALS
By:__________________________
Altino Properties, Inc.
Its:Authorized Representative
By:__________________________
Robert Cugini
Its: Vice President
Date: ________________________
CITY OF RENTON
By:
Denis Law
Mayor
Date: ________________________
ATTEST:
By:___________________________
Jason A. Seth
City Clerk
Draft Quendall Terminals Development Agreement Page 12
ACKNOWLEDGEMENTS
STATE OF ___________ )
) ss:
COUNTY OF ___________ )
On this _____ day of _______, 2016, 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
QUENDALL TERMINALS, 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: _____________
Draft Quendall Terminals Development Agreement Page 13
STATE OF ___________ )
) ss:
COUNTY OF ___________ )
On this _____ day of _______, 2017, before me, a Notary Public in and
for the State of Washington, County of King, personally appeared Denis Law, Mayor,
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
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: _____________
Draft Quendall Terminals Development Agreement Page 14
List of Exhibits:
Exhibit A – Legal Description of Property
Exhibit A-1-Map
11/11/2016
Exhibit A
Page 15
98102-3513BUSH, ROED & HITCHINGS, INC.2009 MINOR AVE. EASTSEATTLE, WashingtonLAND SURVEYORS & CIVIL ENGINEERS(206) 323-4144SW 1/4 SECTION 29, T24N, R5E, W.M.LEGAL DESCRIPTION EXHIBITCENTURY PACIFIC, LLLP.CITY OF RENTON,WASHINGTONDATE: 11/11/16JOB NO.:2009050.0311/11/2016Exhibit A-1Page 16