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HomeMy WebLinkAboutModified Multi-Family Property Tax Exemption for Targeted Areas (6/27/2005) CITY OF RENTON, WASHINGTON ORDINANCE NO. 5 2 4 9 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 4-1-220, PROPERTY TAX EXEMPTION FOR MULTI-FAMILY HOUSING IN RESIDENTIAL TARGETED AREAS, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON" BY EXTENDING THE SUNSET FOR APPLICATIONS FOR THE PROPERTY TAX EXEMPTION FOR MULTI-FAMILY HOUSING IN RESIDENTIAL TARGETED AREAS. WHEREAS, on December 22, 2003, the Renton City Council adopted Ordinance No. 5061 (codified in RMC 4-1-220)to establish a limited property tax exemption to encourage multi-family housing development in designated residential targeted areas; and WHEREAS,the multi-family housing property tax exemption for new applications will sunset on December 31, 2006, unless extended by City Council action; and WHEREAS,the provisions of Section 4-1-220, Property Tax Exemption for Multi- Family Housing in Residential Targeted Areas, were useful in helping to stimulate new construction of multi-family housing in residential targeted areas; and WHEREAS,the Renton City Council desires to continue to encourage additional multi-family housing in residential targeted areas and thereby extend the multi-family housing property tax exemption for an additional three years unless further extended by Renton City Council action; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION L Subsection 4-1-220.M, Sunset of Exemption for Applications for Conditional Certificates, of Chapter 1, Administration and Enforcement, of Title IV 1 ORDINANCE NO. 5249 (Development Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington" is hereby amended to read as follows: D. SUNSET OF EXEMPTION FOR APPLICATIONS FOR CONDITIONAL CERTIFICATES: The City shall not accept new applications for conditional certificates as provided in RMC 4-1-220.E after December 31, 2009, unless extended by City Council action. Incomplete applications for conditional certificates as of December 31, 2009, shall be returned to owners. Notwithstanding the above, the City shall process (i) pending complete applications for a conditional certificate as of December 31, 2009, and (ii) applications for an extension of the conditional certificate and/or a final certificate received after December 31, 2009, as provided in this Section under Sections RMC 4-1-220.D through RMC 4-1-220.J. Sections RMC 4-1-220.0 and RMC 4-1-220.J through RMC 4-1-220.L shall continue to apply to all properties that have been or are issued a final certificate of tax exemption under this Section until expiration, termination or cancellation of the tax exemption. SECTION H. This ordinance shall be effective upon its passage, approval, and five(5)days after its publication. PASSED BY THE CITY COUNCIL this 11 t h day of December , 2006. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this 1 l t h day of December , 2006. if! earth, Kathy Keo I er, Mayor 2 ORDINANCE NO. 5249 Appr d as to form: Lawrence J. Warren, City Attorney Date of Publication: 12/15/2006 (summary) ORD.1316:11/3 0/06:ma 3 FebT_iary 27,2006 _ Renton City Council Minutes Page 48 Utility: Annual Consultant Utility Systems Division requested approval of the annual roster listing five Roster, Photogrammetry firms to provide photogrammetry services in 2006, with the option of extending Services the roster annually in 2007 and 2008 upon department administrator approval. Council concur. MOVED BY CORMAN, SECONDED BY LAW,COUNCIL APPROVE THE CONSENT AGENDA AS PRESENTED. CARRIED. UNFINISHED BUSINESS Finance Committee Chair Persson presented a report recommending approval Finance Committee of Claim Vouchers 245707 -246131 and one wire transfer totaling Finance: Vouchers $1,611,410.52; and approval of Payroll Vouchers 62049 -62470, one wire transfer, and 602 direct deposits totaling$2,348,802.68. MOVED BY PERSSON, SECONDED BY NELSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Council: Contracting Finance Committee Chair Persson presented a report recommending approval Authority Policy,#800-12 of a new Council policy, #800-12,entitled Contracting Authority, for the purpose of establishing the City Council's policy on contracting, and delegating certain contracting authority to the Administration. The Committee further recommended that the Council President be authorized to sign the policy. MOVED BY PERSSON, SECONDED BY NELSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Planning & Development Planning and Development Committee Chair Briere presented a report Committee recommending concurrence in the staff recommendation to approve a multi- EDNSP: Multi-Family family housing property tax exemption agreement that addresses the terms and Housing Property Tax conditions for a partial property tax exemption upon completion of the Bristol Exem tion, Bristol II at II at Southport project. The Committee further recommended that the Mayor outhport and City Clerk be authorized to execute the agreement in substantially the same form. MOVED BY BRIERE, SECONDED BY CLAWSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Utilities Committee Utilities Committee Chair Clawson presented a report recommending Utility: Oversizing concurrence in the staff recommendation to approve the request for oversizing, Reimbursement for Sewer utilizing the method of cost reimbursement developed by the staff and the Line for Shamrock Plat, developer, for the additional work associated with wastewater improvements at CamWest Development the Plat of Shamrock by CamWest Development, Inc. The Committee further recommended that staff be authorized to reimburse CamWest Development, Inc., the requested$4,474.60, which represents the final costs for oversizing. MOVED BY CLAWSON, SECONDED BY BRIERE, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. RESOLUTIONS AND The following resolutions were presented for reading and adoption: ORDINANCES Resolution#3792 A resolution was read approving the Laurelhurst Division 2 Final Plat; Plat: Laurelhurst Division 2, approximately 13.1 acres located at the east side of Duvall Ave. NE and south Duvall Ave NE,FP-05-135 of NE 2nd St. MOVED BY BRIERE, SECONDED BY CLAWSON, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. Streets: Park Ave N Closure, A resolution was read authorizing the temporary total street closure of Park South Lake Washington Ave. N., from N. 6th St. to Garden Ave. N., from 7/1/2006 to 7/31/2007. Roadway Improvements MOVED BY BRIERE, SECONDED BY CLAWSON, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. (See page 49 for additional action on this matter.) - ,.�, r Ay 1 PLANNING AND DEVELOPMENT COMMITTEE Date PI- 7 R004 COMMITTEE REPORT February 27, 2006 Multi-Family Housing Property Tax Exemption Application and Agreement Bristol II at Southport (Referred February 13, 2006) The Planning and Development Committee recommends concurrence with the staff recommendation to approve a Multi-Family Housing Property Tax Exemption Agreement that addresses the terms and conditions for a partial property tax exemption upon completion of the Bristol II at Southport project and authorize the Mayor and City Clerk to execute said agreement in substantially the same form. Terri Br re, Chair Dan Clawson, Vice Chair Marcie Palmer, Member cc: Alex Pietsch,EDNSP Administrator Gregg Zimmerman,P/B/PW Administrator Mike Bailey,Finance&IS Administrator Neil Watts,Development Services Director February 13,2006 , Renton City Council Minutes Page 39 Councilman Clawson emphasized that development will be less dense if the area is annexed to Renton than if it remains in King County, and the area will receive the same level of serve as the rest of the City. *MOTION CARRIED. (See page 40 for resolution.) Mayor Keolker recommended that citizens direct any questions they may have concerning the annexation to the City of Renton. ADMINISTRATIVE Linda Herzog, Interim Assistant to the CAO,reviewed a written administrative REPORT report summarizing the City's recent progress towards goals and work programs adopted as part of its business plan for 2006 and beyond. Items noted included: * The City of Renton, in conjunction with other cities and towns across Washington State, will simultaneously plant a cherry tree at 11:00 a.m. on February 14th. Renton's cherry tree will be planted in Earlington Park. This Statewide celebration, initiated by the Association of Washington Cities, commemorates the 30th anniversary of a gift of 1,000 cherry trees from Japanese Prime Minister Takeo Mild to the City of Seattle in 1976, in recognition of the United State's bicentennial. * An auto theft prevention program is being offered by the Renton Police Department. Combined with locking doors,rolling up windows,and removing all personal belonging from vehicles, a steering wheel locking device(such as The Club)can be an effective auto theft deterrent. Contact the Crime Prevention Unit to purchase this steering wheel locking device. CONSENT AGENDA Items on the consent agenda are adopted by one motion which follows the listing. Council Meeting Minutes of Approval of Council meeting minutes of 2/6/2006. Council concur. 2/6/2006 Appointment: Planning Mayor Keolker appointed Greg Taylor, 702 SW 3rd P1.,Renton, 98055,to the Commission Planning Commission for a three-year term expiring 6/30/2007. Council concur. Community Services: Museum Community Services Department recommended approval to hire the Museum Supervisor Hire at Step D Supervisor at Step D of the salary range. Council concur. EDNSP: Multi-Family Economic Development,Neighborhoods and Strategic Planning Department Housing Property Tax recommended approval of the multi-family housing property tax exemption Exemption, Bristol II at agreement for the Bristol II at Southport project, 1133 Lake Washington Blvd. Southport -pg - 200C N. Refer to Planning and Development Committee. Streets: Park Ave N Closure, Transportation Systems Division requested authorization for the temporary South Lake Washington closure of Park Ave. N. from N. 6th St. to Garden Ave. N. for the South Lake Roadway Improvements Washington Roadway Improvements Project, for a period of six months. Closure will take place between July 2006 and July 2007, with exact dates dependent on work progress. Refer to Transportation (Aviation)Committee. MOVED BY CORMAN, SECONDED BY PERSSON, COUNCIL APPROVE THE CONSENT AGENDA AS PRESENTED. CARRIED. UNFINISHED BUSINESS MOVED BY CORMAN, SECONDED BY LAW, COUNCIL REFER POLICE Police: Pawn Shop Procedures PROCEDURES FOR PAWN SHOPS TO THE PUBLIC SAFETY COMMITTEE. CARRIED. CIS OF RENTON COUNCIL AGENDA, LL • AI#: t'9 . d2 Submitting Data: For Agenda of: 2/13/2006 Dept/Div/Board.. EDNSP Staff Contact Mark Santos-Johnson Agenda Status Ext. 6584 Consent X Subject: Public Hearing.. Multi-Family Housing Property Tax Exemption Correspondence.. Agreement - Bristol II at Southport Ordinance Resolution Old Business Exhibits: New Business Issue Paper Study Sessions Agreement Information Recommended Action: Approvals: Refer to Planning and Development Committee Legal Dept Finance Dept Other Fiscal Impact: Expenditure Required... N/A Transfer/Amendment N/A Amount Budgeted N/A Revenue Generated N/A Total Project Budget N/A City Share Total Project.. N/A SUMMARY OF ACTION: In December 2003, the Council established a property tax exemption incentive to encourage multi- family housing development in designated residential targeted areas. In August 2005, the Council amended the property tax exemption program, in part, to include the Southport project in the "South Lake Washington" targeted residential area. In December 2005, the City received a Multi-Family Housing Property Tax Exemption application for the Bristol II at Southport. As provided for in RMC 4-1-220, the EDNSP Administrator needs to approve or deny the Multi-Family Housing Property Tax Exemption application within 90 days of receipt of the application and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for the Bristol II at Southport project to receive a partial property tax exemption upon completion. Subject to the Council's approval of the agreement, the EDNSP Administrator intends to approve the Multi-Family Housing Property Tax Exemption application for the Bristol II at Southport project. STAFF RECOMMENDATION: Approve a Multi-Family Housing Property Tax Exemption Agreement that addresses the terms and conditions for a partial property tax exemption upon completion of the Bristol II at Southport project and authorize the Mayor and City Clerk to execute said agreement in substantially the same form. �( y 0 ECONOMIC DEVELOPMENT, C.) a. + NEIGHBORHOODS, AND STRATEGIC PLANNING DEPARTMENT MEMORANDUM DATE: February 8, 2006 TO: Randy Corman, Council President Members of the Renton City Council VIA: Mayor Kathy Keolker FROM: Alex Pietsch, Administrator eivt).„ Economic Development, Neighborhoods, and Strategic Planning Department STAFF CONTACT: Mark Santos-Johnson, Economic Development Specialist ext. 6584 SUBJECT: Multi-Family Housing Property Tax Exemption Agreement - Bristol II at Southport ISSUE: In December 2005, the City received a Multi-Family Housing Property Tax Exemption application for the Bristol II at Southport. As provided for in RMC 4-1-220, the EDNSP Administrator needs to approve or deny the Multi-Family Housing Property Tax Exemption application within 90 days of receipt of the application and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for the Bristol II at Southport project to receive a partial property tax exemption upon completion. Subject to the Council's approval of the agreement, the EDNSP Administrator intends to approve the Multi-Family Housing Property Tax Exemption application for the Bristol II at Southport project. RECOMMENDATION: EDNSP recommends that the Council: (1) approve the Multi-Family Housing Property Tax Exemption Agreement that addresses the terms and conditions for the Bristol II at Southport to receive a partial property tax exemption upon completion; and (2) authorize the Mayor and City Clerk to execute said agreement in substantially the same form. h:\ednsp\council\issue papers-agenda bills-ctte reports\2006\issuepaper-mthpte agreement-bristol ii at southport 2-8-06.doc Multi-Family Housing Property Exemption Page 2 of 4 Agreement—Bristol II at Southport February 8,2005 BACKGROUND SUMMARY: As authorized by Chapter 84.14 RCW, the Council adopted Ordinance 5061 on December 22, 2003, Ordinance 5151 on August 1, 2005, and Ordinance 5192 on January 23, 2006, to establish and subsequently amend a property tax exemption incentive (codified in RMC 4-1-220) to encourage multi-family housing development in the following designated residential targeted areas: Highlands: Within the Center Village Comprehensive Plan designation: Center Village (CV) zone, Residential Multi-Family (RM-F) zone, or Residential 10 du/ac (R-10) zone Downtown: Center Downtown (CD) zone, Residential Multi-Family Urban (RM-U) zone, or Residential Multi-Family Traditional (RM-T) zone South Lake Washington: Urban Center North District 1 (UC-N1) zone, or properties within the Urban Center North District 2 (UC-N2) zone that were designated as eligible for exemption by Ordinance 5151 and developed with a residential multi-family project vested to the requirements of the Commercial Office Residential 3 (COR 3) zone. As outlined in Chapter 84.14 RCW and RMC 4-1-220, the Multi-Family Housing Property Tax Exemption (MFHPTE) provision allows the value of qualified new housing construction to be exempt from ad valorem property taxation for ten successive years after completion of the project. However, the exemption does not include the value of the land, existing improvements or non-housing-related improvements (e.g., commercial space). The multi-family housing property tax exemption applies to all levels of the ad valorem property tax, including the local jurisdiction, county, state, and all local taxing districts. The multi-family housing property tax exemption is in addition to any other tax credits, grants, or incentives provided by law for the multi-family housing. The City received a MFHPTE application for the Bristol II at Southport on December 19, 2005. The project is a five-story, mixed-use building with 195 apartment units, 12,647 sf of retail space, and structured and below-grade parking. Bristol II at Southport is a residential rental project. Please see Attachment 1 for additional project information and the potential projected multi-family housing property tax exemption for the project and Attachment 2 for a related map. The estimated potential property tax savings related to the MFHPTE are approximately $241,888 per year ($2,418,879 for the ten-year period) for the Bristol II at Southport project. This equates to a potential property tax savings of approximately $1,240 per year per housing unit ($12,405 per housing unit for the ten-year period). The City of Renton's portion of the above estimated potential property tax savings related to the MFHPTE is approximately $63,093 per year ($630,929 for the ten-year period) for the Bristol II at Southport project. Although the City will receive approximately $4,674 per year in property taxes for the non-residential improvements and potential additional property tax revenue from h:\ednsp\council\issue papers-agenda bills-ctte reports\2006\issuepaper-mthpte agreement-bristol ii at southport 2-8-06.doc Multi-Family Housing Property>, .Exemption Page 3 of 4 Agreement—Bristol II at Southport February 8,2005 any increased assessed value for the land as a result of the new construction on site, the City will not receive property tax revenue from the residential improvements until after the ten-year property tax exemption period. As part of the City's MFHPTE application, applicants are invited to comment on whether the ability to obtain a property tax exemption for their project made a difference in their decision to develop the project. For the Bristol II at Southport project, the applicant noted: " Yes, with the tax exemption we are able to move forward with financing, design, and construction of(a) high quality apartment project." The project paid a $500 initial application fee and satisfies the City's MFHPTE eligibility requirements as outlined in RMC 4-1-220D: • The multi-family housing units are located in one or more new buildings designed for permanent residential occupancy, each with four or more dwelling units; • The project is located in the Urban Center North District 2 (UC-N2) zone and vested to the Commercial Office Residential 3 (COR 3) zone requirements as part of the South Lake Washington designated residential targeted area; and • The project consists of a minimum of 30 dwelling units in a new mixed-use development. As provided for in RMC 4-1-220F, the EDNSP Administrator needs to approve or deny the MFHPTE application within 90 days of receipt and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for the Bristol II at Southport project to receive a partial property tax exemption upon completion. Subject to the Council's approval of the agreement, the EDNSP Administrator intends to approve the MFHPTE application for the Bristol II at Southport project. Please see Attachment 3 for the proposed MFHPTE Agreement for the Bristol II at Southport. SECO Development, the Southport developer, completed the Bristol I at Southport with 188 apartment units and 7,300 sf of retail space in 2001-2002. The City's MFHPTE was not established until after the Bristol I at Southport was completed and the City's property tax exemption does not apply to existing structures. Because of the high office vacancy rate in the region, SECO Development has been unable to proceed with the proposed 750,000 sf of office space, or the adjacent boutique hotel, planned for Southport. Until the City amended the MFHPTE in August 2005 to include the Southport site, SECO Development was also reportedly unable to proceed with the Bristol II at Southport. The Bristol II at Southport project will expand the housing opportunities in South Lake Washington, increase the population in the Urban Center North Comprehensive Plan designated area to help support existing and future businesses in the area, and thereby, assist the City's efforts to create a vibrant mix of residential and retail opportunities amid other uses in South Lake Washington. h:\ednsp\councihissue papers-agenda bills-ctte reports\2006\issuepaper-mfhpte agreement-bristol ii at southport 2-8-06.doc Multi-Family Housing Property Exemption Page 4 of 4 Agreement—Bristol II at Southport February 8,2005 CONCLUSION: Renton's Multi-Family Housing Property Tax Exemption program was established to help increase housing opportunities in designated residential targeted areas, including South Lake Washington. The Bristol II at Southport project will provide an additional 195 apartment units in South Lake Washington and further the City's 2006-2011 Business Plan Goals. Enc: Attachment 1- Bristol II at Southport Project Information and Potential Projected Multi-Family Housing Property Tax Exemption Attachment 2- Proposed Project for Multi-Family Housing Property Tax Exemption map Attachment 3 - Multi-Family Housing Property Tax Exemption Agreement for the Bristol II at Southport cc: Jay Covington, CAO Bonnie Walton, City Clerk Michael Bailey, Finance&IS Administrator Gregg Zimmerman, P/B/PW Administrator Neil Watts, Development Services Director h:\ednsp\council\issue papers-agenda bills-ctte reports\2006\issuepaper-mfhpte agreement-bristol ii at southport 2-8-06.doc • Attachment 1 Bristol II at Southport Project Information and Potential Projected Multi-Family Housing Property Tax Exemption Based on City's Projected Assessed Values for Project February 6, 2006 Project Information(Based on Information Provided by Applicant) Project Name Bristol II at Southport Street Address 1133 Lake Washington Boulevard N,Renton,WA 98056 Owner Building C at Southport,LLC&JSLAND LLC Residential Targeted Area South Lake Washington Urban Center North District 2(UC-N2)[formerly Commercial Office Residential 3 Zoning (COR 3)] Five-story,mixed-use building with 195 apartment units.12,647 sf of retail space and Brief Project Description structured and below-grade parking. Estimated Construction Start Date February 2006 Estimated Completion Date August 2007 Type of Project Mixed-Use(apartments and retail) Residential Unit Breakdown Area(Range in SF) Studio Apartments 49 464 to 633 One-Bedroom Apartments 98 577 to 847 Two-Bedroom Apartments 40 1068 to 1208 Three-Bedroom Apartments 8 1513 Studio Town House 0 One-Bedroom Town House 0 Two-Bedroom Town House 0 Three-Bedroom Town House 0 Total Residential Units 195 Planned Building Improvements Residential Units SF 155,888 Residential Common Areas SF 28,209 Residential Structured Parking SF 120,567 Sub-Total Residential SF 304,664 Non-Residential SF 12,647 Retail Non-Residential Common Area SF 0 Non-Residential Structured Parking SF 4,320 Retail Sub-Total Non-Residential SF 16,967 Total Residential&Non-Residential SF 321,631 Residential Percentage of Project 94.72% Retail/Commercial Percentage of Project 5.28% Parking Stalls Residential Non-Residential Total Structured Parking 318 0 318 Surface Parking 25 24 49 Totals 343 24 367 Projected Total Cost of All Improvements(New Construction/Rehabilitation) $27,000,000 Projected Cost of Residential Improvements $25,000,000 Projected Cost of Residential Improvements per Housing Unit $128,205 Projected Cost of Residential Improvements per SF $82.06 Projected Cost of Non-Residential Improvements $2,000,000 Current Assessed Value(from King County Assessor's Office online records) Land SF 164,060 Current Assessed Value for Land(2006) $2,296,800 Current Assessed Value for Land per SF $14.00 (Includes$110,300 for a 2,520 SF industrial building formerly on the Current Assessed Value for Improvements $110,300 site) Bristol II at Southport Projected Property Tax Calculation Estimated Assessed Value for Land after (Reflects current land value but subject to increase based on ConstructioNRehabilitation $2,296,800 increased improvements to site) Estimated Assessed Value for All Improvements after ConstructioNRehabilitation $20,250,000(Estimated by City at 75%of projected construction costs) Total Estimated Assessed Value for Land&All Improvements after ConstructioNRehabilitation $22,546,800(Estimated by City at 75%of projected construction costs) Estimated Assessed Value for Residential Improvements after Construction $18,750,000(Estimated by City at 75%of projected construction costs) Estimated Assessed Value for Improvements per Housing Unit $103,846 Estimated Assessed Value for Non-Residential Improvements after Construction $1,500,000(Estimated by City at 75%of projected construction costs) Projected 2006 Rate Estimated Estimated Property Total Estimated per$1,000 of Estimated Property Tax for Tax for Non- Property Tax Breakdown of Projected Property Tax Assessed Property Tax for Residential Residential (Land& (Based on Projected 2006 Property Tax Rates) Value Land Improvements Improvements Improvements) City of Renton-General Levy 3.04482 $6,993 $61,658 $4,567 $73,218 City of Renton-Special Levy 0.07088 $163 $1,435 $106 $1,704 Total City o/Renton property tax 3.11570 $7,156 $63,093 $4,674 $74,923 King County 1.32869 $3,052 $26,906 $1,993 $31,951 Port of Seattle 0.23330 $536 $4,724 $350 $5,610 Hospital District#1 0.59000 $1,355 $11,948 $885 $14,188 Renton School District#403 3.95970 $9,095 $80,184 $5,940 $95,218 State of Washington School Fund 2.49787 $5,737 $50,582 $3,747 $60,066 Emergency Medical Service 0.21982 $505 $4,451 $330 $5,286 Sub-total other property tax 8.82938 $20,279 $178,795 $13 244 $212,318 Total Property Tax 11.94508 $27,435 $241,888 $17,918 $287,241 Estimatedp� Annual Property Tax gper Housing Unit y • $141 $1,240 $92 $1,473 ���(s R'7�� {) k d )8 Y �2C }}C BT r ,..,,."ili,2:.` `' ) ® € jS ^s t 8 5• ,g .,r � i � � � 3�'�, `;i1 Etc S; c, Ra ° � �% ��#,� z �4 �"ic'�§ea .;' y,' 7t T ", Is Y gyf4 -� , i i,� 1 ,, nrt ',, ' , 'U€' y. ea .ye:Bi . 1:% I:„ i r ` .,, b !58� ,. et51 tr t o- 1 c r t e i,. igPE a , .,,,. \ -,-iit _,__ii______ n i=t l_Attachment 2 ... 1 1 P°�IP't`9 .i7C/IV ll�t lt_•Jm CUi° J 4 :6! n■■� ■ I I1 � �VAL .� . ins ■�r(■111i1 4 /\ b,i Bristol II at - , •• " ;ri 7 LAKE WASmNGf°R 41 E.1I :I N" �`�� tSouthport ;.;.__.__ •: \. 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A --, yy�y �a�t�a11:L1��� EA" _ • r4v41h pl =J ,,,,NI*�` — ,._:.:I d' IIIII, II4II__ Oh IL! 1111u�♦ III1►\o 111111M •\443‘6,� • �IIIIss1; i i = t Ii r : ...ono. , ,,,,fio ., 1W ., "--.=.4.. i. ...rt k'.4.' Proposed Project for Multi-Family Housing S' Property Tax Exemption Residential Targeted Areas: — Downtown Economic Development,Neighborhoods&Strategic Planning MS Alex t'ietsch,Administrator Highlands G.De'Rosario - South Lake Washington • ,•- 26 January 2006 lowe Attachment 3 MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT FOR BRISTOL II AT SOUTHPORT THIS AGREEMENT is entered into this day of , 200 by and between BUILDING C AT SOUTHPORT, LLC and JSLAND LLC (hereinafter collectively referred to as the "Applicant"), and the CITY OF RENTON, a municipal corporation (hereinafter referred to as the "City"). Recitals. 1. Applicant has applied to the City for a limited property tax exemption as provided for in Chapter 84.14 RCW and RMC 4-1-220 for multi-family housing residential rental housing located in the Urban Center North District 2 (UC-N2) zone and vested to Commercial Office Residential 3 (COR 3) zone requirements as part of the South Lake Washington residential targeted area and the Economic Development, Neighborhoods and Strategic Planning Department Administrator has approved the application; and 2. Applicant has submitted to the City preliminary site plans, floor plans and elevations for The Bristol II at Southport with one hundred ninety five (195) new multi-family housing units (hereinafter referred to as the "Project") on property situated at 1133 Lake Washington Boulevard North, Renton, Washington, and more fully described in Exhibit A attached hereto, (hereinafter referred to as the "Property"); and 3. Applicant is the owner of the Property; and 4. The City has determined that the Project will, if developed as proposed, satisfy the requirements for a Final Certificate of Tax Exemption. NOW, THEREFORE, the City and Applicant do mutually agree as follows: 1. Conditional Certificate of Acceptance of Tax Exemption City agrees, upon execution of this Agreement following approval by the City Council, to issue a Conditional Certificate of Acceptance of Tax Exemption, which conditional certificate shall expire three (3) years from the date of approval of this Agreement by the City Council, unless extended by the Administrator of the Economic Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 1 Development, Neighborhoods and Strategic Planning Department (or any other City office, department or agency that shall succeed to its functions), or his or her designee, (hereafter referred to as "Administrator") as provided in RMC 4-1-2201. 2. Agreement to Construct Multi-Family Housing. a. Applicant agrees to construct the Project on the Property substantially as described in the site plans, floor plans, and elevations on file with the City's Economic Development, Neighborhoods and Strategic Planning Department or its functional successor (hereafter referred to as "Department") as of the date of the City Council's approval of this Agreement, subject to such modifications thereto as may be required to comply with applicable codes and ordinances; provided, that in no event shall such construction provide fewer than thirty (30) new multi-family housing dwelling units designed for permanent residential occupancy. b. Applicant agrees to construct the Project on the Property to comply with all applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the City's development regulations in Title IV of the RMC and the City's applicable design standards and guidelines. The Applicant further agrees that approval of this Agreement by the City Council, its execution by the Mayor, or issuance of a Conditional Certificate of Acceptance of Tax Exemption by the City pursuant to RMC 4-1-220F3 in no way constitutes approval of proposed improvements on the Property with respect to applicable provisions of the City's development regulations included in Title IV of the RMC or any other applicable regulation or obligates the City to approve proposed improvements to the Property. c. Applicant agrees that the Project will be completed within three years from the date of approval of this Agreement by the Council, unless extended by the Administrator for cause as provided in RMC 4-1-2201. 3. Requirements for Final Certificate of Tax Exemption. Applicant may, upon completion of the Project and upon issuance by the City of a temporary certificate of occupancy, or a permanent certificate of occupancy if no temporary certificate is issued, request a Final Certificate of Tax Exemption. The request shall be in writing directed to the Administrator and be accompanied by the following: a. A statement of expenditures made with respect to each multi-family housing unit and the total expenditures made with respect to the entire Project and Property; Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 2 `fir b. A description of the completed work and a statement of qualification for the multi-family housing property tax exemption; c. A statement that the Project was completed within the required three-year period or any authorized extension and documentation that the Project was completed in compliance with the terms of this Agreement; and d. Any such further information that the Administrator deems necessary or useful to evaluate the Project's eligibility for the Final Certificate of Tax Exemption. 4. Agreement to Issue Final Certificate of Tax Exemption. The City agrees to file a Final Certificate of Tax Exemption with the King County Assessor within forty (40) days of submission by the Applicant of all materials required by paragraph 3 above, if Applicant has: a. Successfully completed the Project in accordance with the terms of this Agreement and RMC 4-1-220; b. Filed a request with the City for a Final Certificate of Tax Exemption with the Administrator and submitted the materials described in Paragraph 3 above ; c. Paid the City a fee in the amount of two hundred and fifty dollars ($250.00); and d. Met all other requirements provided in RMC 4-1-220 for issuance of the Final Certificate of Tax Exemption. 5. Annual Certification. Within thirty (30) days after the first anniversary of the date the City filed the Final Certificate of Tax Exemption and each year thereafter for a period of ten (10) years, Applicant agrees to file a certification or declaration with the Administrator, verified upon oath or affirmation, with respect to the accuracy of the information provided therein, containing the following: a. A statement of the occupancy and vacancy of the multi-family housing units during the previous year; b. A certification that the multi-family housing units, Project and Property have not changed use since the date of filing of the Final Certificate of Tax Exemption, Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 3 c. A statement that the multi-family housing units, Project and Property continue to be in compliance with this Agreement and the requirements of RMC 4-1- 220; d. A description of any improvements or changes to the Project made after the filing of the Final Certificate or the most recent certification; and e. Any such further information that the Administrator deems necessary or useful to evaluate eligibility for the Final Certificate of Tax Exemption. 6. No Violations for Duration of Exemption. For the duration of the property tax exemption granted under RMC 4-1-220, Applicant agrees that the Project and the Property will have no violations of applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the development regulations in Title IV of the RMC, for which the Planning, Building and Public Works Department or its functional successor shall have issued a notice of violation, citation or other notification that is not resolved by a certificate of compliance, certificate of release, withdrawal or otherwise, within the time period for compliance, if any, provided in such notice of violation, citation or other notification or any extension of the time period for compliance granted by the Planning, Building and Public Works Department. 7. Notification of Transfer of Interest or Change in Use. Applicant agrees to notify the Administrator within thirty (30) days of any transfer of Applicant's ownership interest in the Project, the Property or any improvements made to the Property. Applicant further agrees to notify the Administrator and the King County Assessor within sixty (60) days of any change of use of any or all of the multi- family housing units on the Property to another use. Applicant acknowledges that such a change in use may result in cancellation of the property tax exemption and imposition of additional taxes, interest and penalty pursuant to State law. 8. Cancellation of Exemption - Appeal. a. The City reserves the right to cancel the Final Certificate of Tax Exemption if at any time the multi-family housing units, the Project or the Property no longer complies with the terms of this Agreement or with the requirements of RMC 4-1- 220, or for any other reason no longer qualifies for a property tax exemption. Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 4 Now volo b. If the property tax exemption is canceled for non-compliance, Applicant acknowledges that state law requires that an additional real property tax is to be imposed in the amount of: [a} the difference between the property tax paid and the property tax that would have been paid if it had included the value of the nonqualifying improvements, dated back to the date that the improvements became nonqualifying; [b] a penalty of 20% of the difference calculated under paragraph (a) of this paragraph 8; [c] interest at the statutory rate on delinquent property taxes and penalties, calculated from the date the tax would have been due without penalty if the improvements had been assessed without regard to the exemptions provided by Chapter 84.14 RCW and RMC 4-1-220. Applicant acknowledges that, pursuant to RCW 84.14.110, any additional tax owed, together with interest and penalty, become a lien on the Property and attach at the time the Property or portion of the Property is removed from multi- family housing use, and that the lien has priority to and must be fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the Property may become charged or liable. Applicant further acknowledges that RCW 84.14.110 provides that any such lien may be foreclosed in the manner provided by law for foreclosure of liens for delinquent real property taxes. c. Upon determining that a tax exemption is to be canceled, the Administrator shall notify the property owner by certified mail, return receipt requested. The property owner may appeal the determination in accordance with RMC 4-1-220L2. 9. Amendments. No modification of this Agreement shall be made unless mutually agreed upon by the parties in writing and unless in compliance with the provisions of RMC 4-1-220H, including but not limited to the Applicant's payment of a two hundred and fifty dollars ($250.00) contract amendment fee. 10. Binding Effect. The provisions, covenants, and conditions contained in this Agreement are binding upon the parties hereto and their legal heirs, representatives, successors, assigns, and subsidiaries. 11. Recording of Agreement. The Administrator shall cause to be recorded at the Applicant's expense, or require Applicant to record, in the real property records of the King County Department of Records and Elections, this Agreement and any other documents as will identify such terms and conditions of eligibility for exemption as the Administrator deems appropriate for recording. Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 5 12. Audits and Inspection of Records. Applicant understands and agrees that the City has the right to audit or review appropriate records to assure compliance with this Agreement and RMC 4-1-220 and to perform evaluations of the effectiveness of the multi-family housing property tax exemption program. Applicant agrees to make appropriate records available for review or audit upon seven days' written notice by the City. 13. Notices. All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when hand-delivered within normal business hours, when actually received by facsimile transmission, or two business days after having been mailed, postage prepaid, to the parties hereto at the addresses set forth below, or to such other place as a party may from time to time designate in writing. APPLICANT: Building C at Southport, LLC and JSLAND LLC 1083 Lake Washington Boulevard N Suite 50 Renton, WA 98056 Phone: 425-282-5833 Fax: 425-282-5838 Attention: John Gaines Project Manager SECO Development CITY: City of Renton Economic Development, Neighborhoods and Strategic Planning 1055 South Grady Way Renton, Washington 98055 Phone: (425) 430-6592 Fax: (425) 430-7300 Attention: Administrator 14. Severability. In the event that any term or clause of this Agreement conflicts with applicable law, such conflict shall not affect other terms of this Agreement which can be given effect without the conflicting terms or clause, and to this end, the terms of the Agreement are declared to be severable. Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 6 Now *No IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written above. CITY OF RENTON Kathy Keolker, Mayor APPROVED AS TO FORM: ATTEST: City Attorney Bonnie I. Walton, City Clerk BUILDING C AT SOUTHPORT, LLC A Washington Limited Liability Company By: SECO DEVELOPMENT, Inc., its manager By: Michael P. Christ, President JSLAND LLC A Washington Limited Liability Company By: Michael P. Christ, Special General Manager of JSLAND LLC Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 7 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 200 , before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me Kathy Keolker, to me known to be the Mayor of the City of Renton, the municipal corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said municipal corporation for the uses and purposes therein mentioned and on oath stated that she was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. NOTARY PUBLIC Printed Name: Residing at My commission expires [notary seal] Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 8 Irlr' Nere STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 200 , before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me: Michael P. Christ, to me known to be the President of BUILDING C AT SOUTHPORT, L.L.C., that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of said party, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. NOTARY PUBLIC Printed Name: Residing at My commission expires [notary seal] Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 9 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 200 , before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me: Michael P. Christ, to me known to be the Special General Manager of JSLAND LLC, that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of said party, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. NOTARY PUBLIC Printed Name: Residing at My commission expires [notary seal] Multi-Family Housing Property Tax Exemption Agreement The Bristol II at Southport, p. 10 MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT EXHIBIT A LEGAL DESCRIPTION LOT 3 OF CITY OF RENTON LOT LINE ADJUSTMENT NO LUA 99-134-SHPL RECORDING NO 2000013 1900006 BEING PARCEL B OF CITY OF RENTON LOT LIINE ADJUSTMENT NO LUA 98-176 LLA RECORDING NO 9902019014 BEING A PORTION OF GOV LOT 1 IN NW 1/a OF SECTION 08-23-05 LY NLY & WLY OF BURLINGTON NORTHERN RAILROAD CO RAN. Multi-Family Housing Property Tax Exemption Agreement Exhibit A—Legal Description The Bristol II at Southport- p. i Amends ORD 5137, 5151 CITY OF RENTON, WASHINGTON ORDINANCE NO. 519 2 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTIONS 4-1-220.D OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, AND SECTION 4-11-040 OF CHAPTER 11, DEFINITIONS, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON" IN ORDER TO CORRECT AN ERROR IN THE DESIGNATION OF PROPERTY ELIGIBILITY FOR PROPERTY TAX EXEMPTION FOR MULTI- FAMILY HOUSING, AND TO CORRECT AN ERROR IN THE DEFINITION OF NET DENSITY,AND DECLARING AN EMERGENCY. WHEREAS, the City conducted review of the entire Comprehensive Plan and development regulations of Ordinance No. 4260, performed analysis of needed revisions based on Growth Management Act compliance, and developed a work program to implement needed updates of development regulations; and WHEREAS, the Planning Commission has made certain findings and recommendations to the City Council, including revising development regulations; and WHEREAS, the City has provided opportunity for the public to comment on the review and suggest needed revisions of regulations, and held a public hearing on October 11, 2004, on this matter; and WHEREAS, the City adopted an amended definition of "density, net" as part of this work program in Ordinance 5100, on November 1, 2004, that eliminated a stipulation that legally recorded private access easements serving under three (3) or more dwelling units were credited in a net density calculation; and WHEREAS, this definition was amended in order to implement Council policy pertaining to density and quality of development in the City; and 1 ORDINANCE NO. 519 2 vile WHEREAS, the proposed revisions to the Critical Areas standards were reviewed and adopted by separate public process and Ordinance 5137, adopted on April 25, 2005; and WHEREAS, in a scrivener's error, the language in Ordinance 5137 inadvertently added the language crediting legally recorded private access easements serving less than three (3) or more dwelling units back into the"net density" definition; and WHEREAS, the definition of"density, net" as set forth in Ordinance 5100, as amended by the addition of critical areas references included in Ordinance 5137, is the correct definition, and this definition implements the Comprehensive Plan and complies with the Growth Management Act as amended; and WHEREAS, on December 22, 2003, the Renton City Council adopted Ordinance No. 5061 (codified in RMC 4-1-220) to establish a property tax exemption program pursuant to RCW 84.14, to provide limited 10 (10) year exemptions from ad valorem property taxation for qualified new multi-family housing located in designated residential; and WHEREAS, it is the intention of the City Council to subtract all legally recorded private access easements from the gross area for purposes of calculating net development density as reviewed as a part of the public hearing and deliberations on Ordinance 5100; and WHEREAS, only one property, the Southport site, with Commercial Office Residential 3 (COR-3)zoning, was included within the"South Lake Washington"targeted area; and WHEREAS, the Renton City Council subsequently adopted Ordinance No. 5183, rezoning the Southport site from the Commercial Office Residential 3 (COR 3) to the Urban Center North District 2(UCN-2); and 2 ORDINANCE NO. 519 2 •..� WHEREAS,the boundary of the "South Lake Washington"target area was not changed, nor was the purpose and applicability of the property tax exemption program altered by the zoning status of the property within the"South Lake Washington"target area; and WHEREAS, to meet the Council's designation of the Southport site as eligible for the property tax exemption, the language of RMC 4-1-220.D, Project Eligibility, requires revision to clarify that the Southport site is included within the"South Lake Washington"target area; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Section 4-1-220.D of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington" is hereby amended to read as follows: D. PROJECT ELIGIBILITY: To qualify for exemption from property taxation under this Section, the project must satisfy all of the following requirements: 1. Location: The property must be located in one of the designated "residential targeted areas" listed below in subsection(D)(1)(a), (D)(1)(b)or(D)(1)(c)of this Section. If a part of any legal lot is within a residential targeted area, then the entire lot shall be deemed to lie within the residential targeted area. a. Highlands: Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village(CV)Zone, the Residential Multi-Family(RM-F) Zone, or the Residential 10 Dwelling Units/Acre(R-10)Zone; or b. Downtown: In the Center Downtown(CD) zone, Residential Multi-Family Urban Center(RM-U) zone, or Residential Multi-Family Traditional (RM-T)zone; or 3 111109 ORDINANCE NO. 519 2 44110 c. South Lake Washington: In the Urban Center North District 1 (UC-Nl) zone or properties within the Urban Center North District 2 (UC-N2)zone that were designated as eligible for exemption by Council Ordinance 5151 and developed with a residential multi- family project vested to the requirements of the Commercial Office Residential 3 (COR 3)zone. 2. Size and Structure: a. If the project is located in the Residential Multi-Family Urban Center (RM-U)zone or Residential Multi-Family Traditional (RM-T) zone or within the Center Village Comprehensive Plan designation and in either the Residential Multi-Family(RM-F)zone or the Residential 10 dwelling units/acre (R-10)zone, the project must (i) consist of a minimum total of ten(10)new dwelling units of multi-family housing, and (ii)be located within a new residential structure(s)or a new mixed-use development as allowed by the RMC for the specific zone. At least fifty(50)percent of the space within the project shall be intended for permanent residential occupancy. b. If the project is located in the Center Downtown (CD) zone, Urban Center North District 1 (UC-Nl)zone, or in the Urban Center North District 2 (UC-N2)zone and the project proposed is vested to Commercial Office Residential (COR-3)zone requirements, or is within the Center Village Comprehensive Plan designation and in the Center Village(CV)zone, the project must(i) consist of a minimum total of thirty(30) new dwelling units of multi-family housing and (ii)be located in a new mixed-use development, unless otherwise waived by the Administrator. If the Administrator waives the mixed-use development requirement, the multi- family housing must be located in a new residential structure(s). At least fifty(50)percent of the space within the project shall be intended for permanent residential occupancy. 4 ORDINANCE NO. 519 2 3. Special Design Regulations for Projects Located in the Center Village Comprehensive Plan Designation or within the Urban Center North District 2 (UC-N2)and vested to the requirements of the Commercial Office Residential 3 (COR Zone): a. If the project is located in the Center Village(CV)Zone or Residential Multi-Family(RM-F)Zone within the Center Village Comprehensive Plan designation, or within the Urban Center North District 2(UC-N2) and vested in the Commercial Office Residential 3 (COR 3)Zone, the project must also comply with the design standards and guidelines in RMC 4- 3-100 for District 'C', even though the project is not located in the Urban Center North Comprehensive Plan designation, unless otherwise waived by the Administrator. b. If the project is located in the Residential 10 Dwelling Units/Acre(R-10) Zone within the Center Village Comprehensive Plan designation, the project must also comply with the design standards and guidelines in RMC 4-3-100 for District 'B', even though the project is not located in the Residential Multi-Family Traditional (RM-T)zone, unless otherwise waived by the Administrator. If the project is located in the Center Village Residential Bonus District described in RMC 4-3-095, the project must also comply with the provisions therein. 4. Exception for Existing Residential Structure: In the case of an existing occupied residential structure that is proposed for demolition and redevelopment as new multi-family housing, the project must provide as a minimum number of dwelling units in the new multi- family housing project, the greater of a. Replace the existing number of dwelling units and, unless the existing residential rental structure was vacant for twelve(12)months or more prior to demolition, provide for a minimum of four(4)additional dwelling units in the new multi-family housing project; or 5 ORDINANCE NO. 5192 b. Provide the number of dwelling units otherwise required in subsection (D)(2)of this section. 5. Completion Deadline: The project must be completed within three(3)years from the date of approval of the contract by the City Council as provided in RMC 4-1-220.F.2 or by any extended deadline granted by the Administrator as provided in RMC 4-1-220.I. SECTION IL The definition of"Density, Net" of Section 4-11-040 of Chapter 11, Definitions, of Title IV (Development Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington" is hereby amended to read as follows: DENSITY, NET: A calculation of the number of housing units and/or lots that would be allowed on a property after critical areas, i.e., very high landslide hazard areas, protected slopes, wetlands, Class 1 to 4 streams and lakes, or floodways, and public rights-of-way and legally recorded private access easements are subtracted from the gross area (gross acres minus streets and critical areas multiplied by allowable housing units per acre). Required critical area buffers, streams that have been daylighted including restored riparian and aquatic areas, and public and private alleys shall not be subtracted from gross acre for the purpose of net density calculations. SECTION III. There is hereby declared an emergency and this ordinance shall be effective upon its passage, approval, and five days after publication. PASSED BY THE CITY COUNCIL this 2 3 r d day of January , 2006. Bonnie I. Walton, City Clerk 6 ,... ORDINANCE NO. 5192 APPROVED BY THE MAYOR this 2 3 r d day of January , 2006. 7 re A-I ke„ Kathy Keolke , Mayor App ed as to form: R.44)."44........e?WC4-0.-"A-L..._ Lawrence J. Warren, City Attorney Date of Publication: 1/27/2006 (summary) ORD.1243:1/18/06:ma 7 January 23,2006 " Renton City Council Minutes " Page 19 Police: Jail Inmate Health Police Department recommended approval of a contract with Occupational Services, Occupational Health Health Services (Public Hospital District No. 1 of King County)in the amount Services of$167,970 for health services for Renton jail inmates for 2006. Council concur. CAG: 04-143, 2004 Lift Utility Systems Division submitted CAG-04-143, 2004 Lift Station Station Rehabilitation, RL Alia Rehabilitation; and requested approval of the project, authorization for final Company pay estimate in the amount of$2,595,commencement of 60-day lien period, and release of retained amount of$6,026.24 to R.L. Alia Company, contractor, if all required releases are obtained. Council concur. WSDOT: Springbrook Creek Utility Systems Division recommended approval of a concurrence letter with Wetland and Habitat Washington State Department of Transportation regarding draft agreements Mitigation Bank Concurrence associated with the Springbrook Creek Wetland and Habitat Mitigation Bank. Refer to Utilities Committee. MOVED BY NELSON, SECONDED BY PERSSON,COUNCIL APPROVE THE CONSENT AGENDA AS PRESENTED. CARRIED. CORRESPONDENCE A letter was read from Sara Slatten, CamWest Development, Inc., 9720 NE Citizen Comment: CamWest- 20th P1., Suite 100, Kirkland, 98034, requesting reimbursement in the amount Oversizing Reimbursement for of$4,474.60 for oversizing the sewer line for the Shamrock Heights plat at the Sewer Line at Shamrock City's request. MOVED BY CLAWSON, SECONDED BY LAW, COUNCIL Heights REFER THIS CORRESPONDENCE TO THE UTILITIES COMMITTEE. CARRIED. UNFINISHED BUSINESS Utilities Committee Chair Clawson presented a report recommending Utilities Committee concurrence in the staff recommendation to approve the consultant contract Utility: Rates &System with Financial Consulting Solutions Group,Inc. in the amount of$97,940 for a Development Charges Study, water, wastewater, and surface water comprehensive rate study and system Financial Consulting Solutions development charges study, and to authorize the Mayor and City Clerk to Group execute the contract. MOVED BY CLAWSON, SECONDED BY LAW, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Finance Committee Finance Committee Chair Persson presented a report recommending approval Finance: Vouchers of Claim Vouchers 243896 -244180 and 244373 -244798 and four wire transfers totaling$1,991,509.98; and approval of Payroll Vouchers 61307 - 61672, two wire transfers, and 1197 direct deposits totaling$3,808,311.03. MOVED BY PERSSON, SECONDED BY NELSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. RESOLUTIONS AND The following resolution was presented for reading and adoption: ORDINANCES Resolution#3788 A resolution was read approving The Reserve at Stonehaven Final Plat; 5.95 Plat: The Reserve at acres located in the vicinity of S. 47th St. and Main Ave. S. MOVED BY Stonehaven, S 47th St, FP-05- CLAWSON, SECONDED BY PALMER, COUNCIL ADOPT THE 130 RESOLUTION AS READ. CARRIED. The following ordinances were presented for first reading and advanced for second and final reading: Planning: Multi-Family An ordinance was read amending Sections 4-1-220.D of Chapter 1, Housing Property Tax Administration and Enforcement, and Section 4-11-040 of Chapter 11, Exemption Definitions,of Title IV (Development Regulations)of City Code in order to correct an error in the designation of property eligible for property tax exemption for multi-family housing,and to correct an error in the definition of January 23,2006 `- Renton City Council Minutes Page 20 net density, and declaring an emergency. MOVED BY CLAWSON, SECONDED BY PERSSON, COUNCIL ADVANCE THE ORDINANCE FOR SECOND AND FINAL READING. CARRIED. Ordinance#5192 Following second and final reading of the above ordinance, it was MOVED BY Planning: Multi-Family CLAWSON, SECONDED BY NELSON, COUNCIL ADOPT THE Housing Property Tax ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. Exemption Fire: Prevention Fees An ordinance was read amending Section 4-1-150,Fire Prevention Fees, of Chapter 1,Administration and Enforcement,of Title IV (Development Regulations)of City Code by amending the fire prevention fees. MOVED BY NELSON, SECONDED BY PALMER, COUNCIL ADVANCE THE ORDINANCE FOR SECOND AND FINAL READING. CARRIED. Ordinance#5193 Following second and final reading of the above ordinance, it was MOVED BY Fire: Prevention Fees LAW, SECONDED BY NELSON, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. The following ordinances were presented for second and final reading and adoption: Ordinance#5194 An ordinance was read changing the impact fee collection on behalf of the Finance: Issaquah School Issaquah School District within the City of Renton from$2,937 per new single District Impact Fee family home to$5,115 per new single family home. MOVED BY LAW, SECONDED BY NELSON, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. Ordinance#5195 An ordinance was read vacating a portion of NE 4th St., east of Rosario Ave. Vacation: NE 4th St,City of NE(City of Renton;VAC-04-006). MOVED BY NELSON, SECONDED BY Renton,VAC-04-006 PALMER, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. NEW BUSINESS Councilwoman Nelson reviewed Renton School District announcements and School District: Activities activities, which included: the winner of the Nelson Middle School Geography Bee (Ana Wright); the collection of more than 700 pounds of clothing, blankets and necessities for Native Americans on the Pine Ridge Reservation in South Dakota by Sartori Education Center students; and the collection of more than 15 boxes of school supplies for students in El Salvador by Kennydale Elementary School students, staff, and parents. EXECUTIVE SESSION MOVED BY NELSON, SECONDED BY LAW, COUNCIL RECESS INTO AND ADJOURNMENT EXECUTIVE SESSION FOR APPROXIMATELY 30 MINUTES TO DISCUSS PROPERTY ACQUISITION WITH NO OFFICIAL ACTION TO BE TAKEN AND THAT THE COUNCIL MEETING BE ADJOURNED WHEN THE EXECUTIVE SESSION IS ADJOURNED. CARRIED. Time: 7:47 p.m. Executive session was conducted. There was no action taken. The executive session and the Council meeting adjourned at 8:47 p.m. ' Bonnie I. Walton, CMC, City Clerk Recorder: Michele Neumann January 23, 2006 January 23,2006 siiso Renton City Council Minutes ,fte Page 18 facility. He said this factor also contributed to the City's decision to offer to pay the proportionate share of the maintenance for Sundance's wet vault. Councilman Persson pointed out the merits of the City's offer. Councilman Clawson noted the antiquated way stormwater is handled, and expressed his hope that the future will bring about a way for more of the water to infiltrate into the ground rather than running over impervious surface. CONSENT AGENDA Items on the consent agenda are adopted by one motion which follows the listing. Council Meeting Minutes of Approval of Council meeting minutes of 1/9/2006. Council concur. 1/9/2006 CAG: 05-165, NE Sunset City Clerk reported bid opening on 11/15/2005 for CAG-05-165, NE Sunset Blvd/Duvall Ave NE Blvd. (SR-900)/Duvall Ave. NE Intersection Improvements; nine bids; Intersection Improvements, engineer's estimate$1,350,596.18; and submitted staff recommendation to Sanders General Construction award the contract to Sanders General Construction Company in the amount of $1,655,345.54. Approval was also sought to transfer$1,528,369 from Fund 317 year-end fund balance to this project. Refer to Transportation(Aviation) Committee. City Clerk: Quarterly Contract City Clerk submitted Quarterly Contract List for period of 10/1/2005 to List, 10/1/2005 to 12/31/2005 12/31/2005;47 contracts and 15 addenda totaling$4,108,290.03. Information. Plat: The Reserve at Development Services Division recommended approval, with conditions,of Stonehaven, S 47th St,FP-05- The Reserve at Stonehaven Final Plat; 36 single-family lots on 5.95 acres 130 located at S. 47th St. and Main Ave. S. Council concur. (See page 19 for resolution.) Planning: Multi-Family Economic Development, Neighborhoods and Strategic Planning Department Housing Property Tax recommended adoption of an ordinance correcting the designation of property Exemption 1 n (Southport)eligible for multi-family housing property tax exemption, and correcting the definition of net density. Council concur. (See page 19 for ordinance.) Annexation: Aster Park, Economic Development, Neighborhoods and Strategic Planning Department Sunset Blvd NE submitted 10% Notice of Intent to annex petition for the proposed Aster Park Annexation,and recommended a public meeting be set on 2/13/2006 to consider the petition; 16.58 acres located along the south side of Sunset Blvd. NE, west of 148th Ave. SE. Council concur. Annexation: Preserve our Economic Development, Neighborhoods and Strategic Planning Department Plateau, SE 128th St recommended a public hearing be set on 2/13/2006 to consider the 10% Notice of Intent to annex petition by election for the proposed Preserve Our Plateau Annexation; approximately 1,475 acres located in the vicinity of SE 128th St. and 184th Ave. SE. Council concur. Fire: Prevention Fees Fire Department recommended adoption of an ordinance amending the fire prevention fees effective 2/1/2006, with two fee changes to more accurately reflect the cost of services. Council concur. (See page 20 for ordinance.) Development Services: Legal Division recommended adoption of an ordinance updating definitions, Nuisance Ordinance including nuisances, and clarifying civil and criminal violations and penalties. Refer to Public Safety Committee. C ' OF RENTON COUNCIL AGENDA..,.ILL AI#: . Submitting Data: For Agenda of: Dept/Div/Board.. Economic Development, January 23, 2006 Neighborhoods and Strategic Planning Staff Contact Rebecca Lind x6588 Agenda Status Consent X Subject: Public Hearing.. Errata Ordinance Re-Adopting the Definition of Net Correspondence.. Density and Clarifying Eligibility References in Chapter Ordinance 4-1-220 Resolution Old Business Exhibits: New Business Issue Paper Study Sessions Ordinance Information Recommended Action: Approvals: Council Concur Legal Dept....x Finance Dept Other Fiscal Impact: Expenditure Required... Transfer/Amendment Amount Budgeted Revenue Generated Total Project Budget City Share Total Project.. SUMMARY OF ACTION: The proposed ordinance corrects two errors in recently adopted ordinances. 1) Ordinance 5100 amended the Renton Municipal Code in 2004 to adopt a new net density definition as part of the package of amendments needed to increase the quality of infill development in the City. Ordinance 5137 subsequently adopted amendments inserting critical areas references into the definition, but also inadvertently re-adopted the prior net density definition. The proposed ordinance re-instates the intended definition. 2) The rezoning of the Southport site created a discrepancy in eligibility language for the property tax exemption program. The"South Lake Washington"targeted area includes the Southport site. Clarification of the eligibility language is needed to reference the current zoning and status of the Southport project. STAFF RECOMMENDATION: Adoption of the correction ordinance is recommended to restore the correct net density definition and clarify the eligibility of properties in the "South Lake Washington" area for inclusion in the property tax exemption program. Authorize first and second reading on January 23, 2006. Errata agenda bill density and property tax (Y 0 ECONOMIC DEVELOPMENT, NEIGHBORHOODS, AND STRATEGIC • .IL PLANNING DEPARTMENT MEMORANDUM DATE: January 10, 2006 TO: Randy Corman, Council President Members of the Renton City Council VIA: //y Kathy Keolker, Mayo rar..(14) lop FROM: Alex Pietsch, Administrator STAFF CONTACT: Rebecca Lind SUBJECT: Errata Ordinance Re-adopting the Definition of Net Density and Clarifying Eligibility References in Chapter 4-1-220 for Projects for the Property Tax Exemption Program Issue Should the City Council adopt an errata ordinance 1) re-adopting the definition of"Net Density," and 2) clarifying that the Southport site is included within the target area for the multi-family Property Tax Exemption Program? Recommendation • Adopt the version of"net density" that was approved in 2004 as part of the Growth Management Update of the Comprehensive Plan and development regulations • Amend the language of Title IV Chapter 4-1-220 to correct zoning name references for the Southport site • Forward the proposed emergency ordinance for first and second reading on January 23, 2006. Background Two technical problems have come to light in the City's regulations. In both situations, Council has previously provided clear direction. However, recent code amendments have inadvertently negated Council's previous actions. Issue 1 Ordinance 5100 amended the Renton Municipal Code in 2004 to adopt a new net density definition as part of the package of amendments intended to increase the quality of infill development in the City. The new definition requires exclusion of private road easements serving 1 and 2 lots from the net developable area of a plat, thereby reducing the achieved density on smaller infill parcels. The new definition requires all lots to meet h:\ednsp\title iv\general\property tax exemption net density errata issue paper.doc Randy Corman,Council Patent Page2of2 January 10,2006 the minimum size requirements exclusive of easements. Ordinance 5137 subsequently adopted amendments inserting critical areas references into the definition, but also inadvertently re-adopted the language allowing private easements serving 1 or 2 lots to count in the net developable area. The proposed ordinance re-instates the intended definition. Issue 2 In 2003, Ordinance 5061 established a multi-family property tax exemption program in targeted residential areas. Ordinance 5151, adopted in August 2005, amended the program by designating the "South Lake Washington" targeted area. The Southport project was specifically included within the boundary of the "South Lake Washington" area. Ordinance 5061 and Ordinance 5151 both used zone names to reference project eligibility for this program. At the time, the Southport project was zoned COR-3. Subsequently, in December 2005, consistent with the city's desire to designate and develop its Urban Center, the City Council re-zoned the Southport property to UCN-2 and included it within the Urban Center Comprehensive Plan designation. While the City did not amend the boundary of the "South Lake Washington" target area, an error was made in that the eligibility section of the property tax exemption program was not updated with the correct zoning name reference for the Southport property. The proposed ordinance corrects this inconsistency. Conclusion Adoption of the ordinance as an emergency is requested to eliminate the discrepancy within the code and various city handouts as soon as possible, and reduce the amount of time available for projects to vest under an incorrect definition that allows density credit for land areas dedicated to private road easements. Delay in the resolution of the eligibility language for the property tax exemption program will hold up the permitting process for the next phase of Southport development, a 195- unit multi-family project, applying for consideration under the property tax exemption program. Adoption of an emergency ordinance is recommended to resolve this error. h:\ednsp\title iv\general\property tax exemption net density errata issue paper.doc CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, ASHINGTON, AMENDING SECTIONS 4-1-220.D OF CHAPTER 1, ADM NISTRATION AND ENFORCEMENT, AND SECTION 4-11-040 OF HAPTER 11, DEFINITIONS, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON" IN ORDER TO CORRECT AN ERROR IN THE DESIGNATION OF PROPERTY ELIGIBILITY FOR PROPERTY TAX EXEMPTION FOR MULTI- FAMILY HOUSING, AND TO CORRECT AN ERROR IN THE DEFINITION OF NET DENSITY,AND DECLARING AN EMERGENCY. WHEREAS, the City conducted review of the entire Comprehensive Plan and development regulations of Ordinance No. 4260, performed analysis of needed revisions based on Growth Management Act compliance, and developed a work program to implement needed updates of development regulations; and WHEREAS, the Planning Commission has made certain findings and recommendations to the City Council, including revising development regulations; and WHEREAS, the City has provided opportunity for the public to comment on the review and suggest needed revisions of regulations, and held a public hearing on October 11, 2004, on this matter; and WHEREAS, the City adopted an amended definition of "density, net" as part of this work program in Ordinance 5100, on November 1, 2004, that eliminated a stipulation that legally recorded private access easements serving under three (3) or more dwelling units were credited in a net density calculation; and WHEREAS, this definition was amended in order to implement Council policy pertaining to density and quality of development in the City; and 1 %of ORDINANCE NO. *100 WHEREAS, the proposed revisions to the Critical Areas standards were reviewed and adopted by separate public process and Ordinance 5137, adopted on April 25, 2005; and WHEREAS, in a scrivener's error, the language in Ordinance 5137 inadvertently added the language crediting legally recorded private access easements serving less than three (3) or more dwelling units back into the"net density"definition; and WHEREAS, the definition of"density, net" as set forth in Ordinance 5100, as amended by the addition of critical areas references included in Ordinance 5137, is the correct definition, and this definition implements the Comprehensive Plan and complies with the Growth Management Act as amended; and WHEREAS, on December 22, 2003, the Renton City Council adopted Ordinance No. 5061 (codified in RMC 4-1-220) to establish a property tax exemption program pursuant to RCW 84.14, to provide limited 10 (10) year exemptions from ad valorem property taxation for qualified new multi-family housing located in designated residential; and WHEREAS, it is the intention of the City Council to subtract all legally recorded private access easements from the gross area for purposes of calculating net development density as reviewed as a part of the public hearing and deliberations on Ordinance 5100; and WHEREAS, only one property, the Southport site, with Commercial Office Residential 3 (COR-3) zoning, was included within the "South Lake Washington"targeted area; and WHEREAS, the Renton City Council subsequently adopted Ordinance No. 5183, rezoning the Southport site from the Commercial Office Residential 3 (COR 3) to the Urban Center North District 2 (UCN-2); and 2 ORDINANCE NO. WHEREAS, the boundary of the "South Lake Washington" target area was not changed, nor was the purpose and applicability of the property tax exemption program altered by the zoning status of the property within the "South Lake Washington" target area; and WHEREAS, to meet the Council's designation of the Southport site as eligible for the property tax exemption, the language of RMC 4-1-220.D, Project Eligibility, requires revision to clarify that the Southport site is included within the"South Lake Washington"target area; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Section 4-1-220.D of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington"is hereby amended to read as follows: D. PROJECT ELIGIBILITY: To qualify for exemption from property taxation under this Section, the project must satisfy all of the following requirements: 1. Location: The property must be located in one of the designated "residential targeted areas" listed below in subsection(D)(1)(a), (D)(1)(b) or(D)(l)(c) of this Section. If a part of any legal lot is within a residential targeted area, then the entire lot shall be deemed to lie within the residential targeted area. a. Highlands: Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village (CV) Zone, the Residential Multi-Family(RM-F) Zone, or the Residential 10 Dwelling Units/Acre (R-10) Zone; or b. Downtown: In the Center Downtown (CD) zone, Residential Multi-Family Urban Center (RM-U) zone, or Residential Multi-Family Traditional (RM-T) zone; or 3 ORDINANCE NO. siO c. South Lake Washington: In the Urban Center North District 1 (UC-N1) zone or properties within the Urban Center North District 2 (UC-N2) zone that were designated as eligible for exemption by Council Ordinance 5151 and developed with a residential multi- family project vested to the requirements of the Commercial Office Residential 3 (COR 3) zone. 2. Size and Structure: a. If the project is located in the Residential Multi-Family Urban Center (RM-U) zone or Residential Multi-Family Traditional (RM-T) zone or within the Center Village Comprehensive Plan designation and in either the Residential Multi-Family(RM-F) zone or the Residential 10 dwelling units/acre (R-10) zone, the project must (i) consist of a minimum total of ten (10) new dwelling units of multi-family housing, and (ii) be located within a new residential structure(s) or a new mixed-use development as allowed by the RMC for the specific zone. At least fifty(50)percent of the space within the project shall be intended for permanent residential occupancy. b. If the project is located in the Center Downtown (CD) zone,Urban Center North District 1 (UC-N1) zone, or in the Urban Center North District 2 (UC-N2) zone and the project proposed is vested to Commercial Office Residential (COR-3) zone requirements, or is within the Center Village Comprehensive Plan designation and in the Center Village(CV) zone, the project must (i) consist of a minimum total of thirty(30) new dwelling units of multi-family housing and (ii) be located in a new mixed-use development, unless otherwise waived by the Administrator. If the Administrator waives the mixed-use development requirement, the multi- family housing must be located in a new residential structure(s). At least fifty(50)percent of the space within the project shall be intended for permanent residential occupancy. 4 ORDINANCE NO. 3. Special Design Regulations for Projects Located in the Center Village Comprehensive Plan Designation or within the Urban Center North District 2 (UC-N2) and vested to the requirements of the Commercial Office Residential 3 (COR Zone): a. If the project is located in the Center Village (CV) Zone or Residential Multi-Family (RM-F) Zone within the Center Village Comprehensive Plan designation, or within the Urban Center North District 2 (UC-N2) and vested in the Commercial Office Residential 3 (COR 3) Zone, the project must also comply with the design standards and guidelines in RMC 4- 3-100 for District 'C', even though the project is not located in the Urban Center North Comprehensive Plan designation, unless otherwise waived by the Administrator. b. If the project is located in the Residential 10 Dwelling Units/Acre (R-10) Zone within the Center Village Comprehensive Plan designation, the project must also comply with the design standards and guidelines in RMC 4-3-100 for District `B', even though the project is not located in the Residential Multi-Family Traditional (RM-T) zone, unless otherwise waived by the Administrator. If the project is located in the Center Village Residential Bonus District described in RMC 4-3-095, the project must also comply with the provisions therein. 4. Exception for Existing Residential Structure: In the case of an existing occupied residential structure that is proposed for demolition and redevelopment as new multi-family housing, the project must provide as a minimum number of dwelling units in the new multi- family housing project, the greater of: a. Replace the existing number of dwelling units and, unless the existing residential rental structure was vacant for twelve (12) months or more prior to demolition, provide for a minimum of four(4) additional dwelling units in the new multi-family housing project; or 5 ORDINANCE NO. ► b. Provide the number of dwelling units otherwise required in subsection (D)(2) of this section. 5. Completion Deadline: The project must be completed within three (3) years from the date of approval of the contract by the City Council as provided in RMC 4-1-220.F.2 or by any extended deadline granted by the Administrator as provided in RMC 4-1-220.I. SECTION II. The definition of "Density, Net" of Section 4-11-040 of Chapter 11, Definitions, of Title IV (Development Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington" is hereby amended to read as follows: DENSITY, NET: A calculation of the number of housing units and/or lots that would be allowed on a property after critical areas, i.e., very high landslide hazard areas, protected slopes, wetlands, Class 1 to 4 streams and lakes, or floodways, and public rights-of-way and legally recorded private access easements are subtracted from the gross area (gross acres minus streets and critical areas multiplied by allowable housing units per acre). Required critical area buffers, streams that have been daylighted including restored riparian and aquatic areas, and public and private alleys shall not be subtracted from gross acre for the purpose of net density calculations. SECTION III. There is hereby declared an emergency and this ordinance shall be effective upon its passage, approval, and five days after publication. PASSED BY THE CITY COUNCIL this day of , 2006. Bonnie I. Walton, City Clerk 6 ORDINANCE NO. ••► APPROVED BY THE MAYOR this day of , 2006. Kathy Keolker, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD.1243:1/18/06:ma 7 ( Y CITY,3F RENTON ♦ ♦ City Clerk � Kathy Keolker,Mayor Bonnie I.Walton January 27, 2006 Attn: Review Team Department of Community, Trade and Economic Development Growth Management Services PO BOX 42525 Olympia, WA 98504-2525 Re: Ordinance Nos. 5192 & 5194 To Whom It May Concern: The City of Renton is herewith enclosing a copy of the listed ordinances, adopted by the Renton City Council on January 23, 2006, which amend Title IV, Development Regulations of Renton Municipal Code. • Ordinance No. 5192 corrects the designation of property eligibility for the multi- family tax exemption and corrects the definition of net density. • Ordinance No. 5194 changes the Impact Fee collection for the Issaquah School District within the City of Renton from $2,937 to $5,115. If I can provide additional information or.assistance, please feel free to contact me. Sincerely, Bonnie I. Walton City Clerk Enclosure BW:js CC: Rebbeca Lind, Planner Manager Erika Conkling, Associate Planner 1055 South Grady Way-Renton,Washington 98055 -(425)430-6510/FAX(425)430-6516 RENTON ®This paper contains 50%recycled material,30% AHEAD O F THE CURVE p ppost consumer Amends ORD 5137, 5151 CITY OF RENTON, WASHINGTON ORDINANCE NO. 519 2 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTIONS 4-1-220.D OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, AND SECTION 4-11-040 OF CHAPTER 11, DEFINITIONS, OF TIME IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON" IN ORDER TO CORRECT AN ERROR IN THE DESIGNATION OF PROPERTY ELIGIBILITY FOR PROPERTY TAX EXEMPTION FOR MULTI- FAMILY HOUSING, AND TO CORRECT AN ERROR IN THE DEFINITION OF NET DENSITY,AND DECLARING AN EMERGENCY. WHEREAS, the City conducted review of the entire Comprehensive Plan and development regulations of Ordinance No. 4260, performed analysis of needed revisions based on Growth Management Act compliance, and developed a work program to implement needed updates of development regulations; and WHEREAS, the Planning Commission has made certain findings and recommendations to the City Council, including revising development regulations; and WHEREAS, the City has provided opportunity for the public to comment on the review and suggest needed revisions of regulations, and held a public hearing on October 11, 2004, on this matter; and WHEREAS, the City adopted an amended definition of "density, net" as part of this work program in Ordinance 5100, on November 1, 2004, that eliminated a stipulation that legally recorded private access easements serving under three (3) or more dwelling units were credited in a net density calculation; and WHEREAS, this definition was amended in order to implement Council policy pertaining to density and quality of development in the City; and 1 ORDINANCE NO. 519 2 WHEREAS, the proposed revisions to the Critical Areas standards were reviewed and adopted by separate public process and Ordinance 5137, adopted on April 25, 2005; and WHEREAS, in a scrivener's error, the language in Ordinance 5137 inadvertently added the language crediting legally recorded private access easements serving less than three (3) or more dwelling units back into the"net density" definition; and WHEREAS, the definition of"density, net" as set forth in Ordinance 5100, as amended by the addition of critical areas references included in Ordinance 5137, is the correct definition, and this definition implements the Comprehensive Plan and complies with the Growth Management Act as amended; and WHEREAS, on December 22, 2003, the Renton City Council adopted Ordinance No. 5061 (codified in RMC 4-1-220) to establish a property tax exemption program pursuant to RCW 84.14, to provide limited 10 (10) year exemptions from ad valorem property taxation for qualified new multi-family housing located in designated residential; and WHEREAS, it is the intention of the City Council to subtract all legally recorded private access easements from the gross area for purposes of calculating net development density as reviewed as a part of the public hearing and deliberations on Ordinance 5100; and WHEREAS, only one property, the Southport site, with Commercial Office Residential 3 (COR-3) zoning, was included within the"South Lake Washington" targeted area; and WHEREAS, the Renton City Council subsequently adopted Ordinance No. 5183, rezoning the Southport site from the Commercial Office Residential 3 (COR 3) to the Urban Center North District 2 (UCN-2); and 2 ORDINANCE NO. 519 2 WHEREAS, the boundary of the"South Lake Washington" target area was not changed, nor was the purpose and applicability of the property tax exemption program altered by the zoning status of the property within the"South Lake Washington" target area; and WHEREAS, to meet the Council's designation of the Southport site as eligible for the property tax exemption, the language of RMC 4-1-220.D, Project Eligibility, requires revision to clarify that the Southport site is included within the"South Lake Washington" target area; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Section 4-1-220.D of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington" is hereby amended to read as follows: D. PROJECT ELIGIBILITY: To qualify for exemption from property taxation under this Section, the project must satisfy all of the following requirements: 1. Location: The property must be located in one of the designated "residential targeted areas" listed below in subsection(D)(1)(a), (D)(1)(b)or(DX1)(c)of this Section. If a part of any legal lot is within a residential targeted area, then the entire lot shall be deemed to lie within the residential targeted area. a. Highlands: Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village(CV)Zone, the Residential Multi-Family(RM-F) Zone, or the Residential 10 Dwelling Units/Acre (R-10)Zone; or b. Downtown: In the Center Downtown(CD) zone, Residential Multi-Family Urban Center(RM-U) zone, or Residential Multi-Family Traditional (RM-T) zone; or 3 • *ow *loaf ORDINANCE NO. 519 2 c. South Lake Washington: In the Urban Center North District 1 (UC-N1) zone or properties within the Urban Center North District 2 (UC-N2)zone that were designated as eligible for exemption by Council Ordinance 5151 and developed with a residential multi- family project vested to the requirements of the Commercial Office Residential 3 (COR 3)zone. 2. Size and Structure: a. If the project is located in the Residential Multi-Family Urban Center (RM-U)zone or Residential Multi-Family Traditional (RM-T)zone or within the Center Village Comprehensive Plan designation and in either the Residential Multi-Family(RM-F)zone or the Residential 10 dwelling units/acre (R-10) zone, the project must(i) consist of a minimum total of ten(10)new dwelling units of multi-family housing, and(ii)be located within a new residential structure(s)or a new mixed-use development as allowed by the RMC for the specific zone. At least fifty (50) percent of the space within the project shall be intended for permanent residential occupancy. b. If the project is located in the Center Downtown(CD) zone, Urban Center North District 1 (UC-N1)zone, or in the Urban Center North District 2 (UC-N2)zone and the project proposed is vested to Commercial Office Residential (COR-3) zone requirements, or is within the Center Village Comprehensive Plan designation and in the Center Village(CV)zone, the project must (i) consist of a minimum total of thirty(30) new dwelling units of multi-family housing and(ii)be located in a new mixed-use development, unless otherwise waived by the Administrator. If the Administrator waives the mixed-use development requirement, the multi- family housing must be located in a new residential structure(s). At least fifty(50)percent of the space within the project shall be intended for permanent residential occupancy. 4 ORDINANCE NO. 519 2 3. Special Design Regulations for Projects Located in the Center Village Comprehensive Plan Designation or within the Urban Center North District 2(UC-N2)and vested to the requirements of the Commercial Office Residential 3 (COR Zone): a. If the project is located in the Center Village(CV)Zone or Residential Multi-Family(RM-F)Zone within the Center Village Comprehensive Plan designation, or within the Urban Center North District 2 (UC-N2) and vested in the Commercial Office Residential 3 (COR 3)Zone, the project must also comply with the design standards and guidelines in RMC 4- 3-100 for District 'C', even though the project is not located in the Urban Center North Comprehensive Plan designation, unless otherwise waived by the Administrator. b. If the project is located in the Residential 10 Dwelling Units/Acre(R-10) Zone within the Center Village Comprehensive Plan designation, the project must also comply with the design standards and guidelines in RMC 4-3-100 for District `B', even though the project is not located in the Residential Multi-Family Traditional (RM-T)zone, unless otherwise waived by the Administrator. If the project is located in the Center Village Residential Bonus District described in RMC 4-3-095, the project must also comply with the provisions therein. 4. Exception for Existing Residential Structure: In the case of an existing occupied residential structure that is proposed for demolition and redevelopment as new multi-family housing, the project must provide as a minimum number of dwelling units in the new multi- family housing project, the greater of: a. Replace the existing number of dwelling units and, unless the existing residential rental structure was vacant for twelve (12) months or more prior to demolition, provide for a minimum of four(4)additional dwelling units in the new multi-family housing project; or 5 ORDINANCE NO. 5192 b. Provide the number of dwelling units otherwise required in subsection (D)(2)of this section. 5. Completion Deadline: The project must be completed within three(3)years from the date of approval of the contract by the City Council as provided in RMC 4-1-220.F.2 or by any extended deadline granted by the Administrator as provided in RMC 4-1-220.I. SECTION II. The definition of"Density, Net" of Section 4-11-040 of Chapter 11, Definitions, of Title IV (Development Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the City of Renton, Washington" is hereby amended to read as follows: DENSITY, NET: A calculation of the number of housing units and/or lots that would be allowed on a property after critical areas, i.e., very high landslide hazard areas, protected slopes, wetlands, Class 1 to 4 streams and lakes, or floodways, and public rights-of-way and legally recorded private access easements are subtracted from the gross area (gross acres minus streets and critical areas multiplied by allowable housing units per acre). Required critical area buffers, streams that have been daylighted including restored riparian and aquatic areas, and public and private alleys shall not be subtracted from gross acre for the purpose of net density calculations. SECTION III. There is hereby declared an emergency and this ordinance shall be effective upon its passage, approval, and five days after publication. PASSED BY THE CITY COUNCIL this 2 3 r d day of January , 2006. lia Bonnie I. Walton, City Clerk 6 '"' ORDINANCE NO. 5192 APPROVED BY THE MAYOR this 2 3 r d day of January , 2006. 7/fa'z )e60-04,,,...., Kathy Keolke , Mayor App ed as to form:?W Lawrence J. Warren, City Attorney Date of Publication: 1/27/2006 (summary) ORD.1243:1/18/06:ma 7 P14 � 0-,I, g z •' G dm .4 v 6tg oU .Q�,e.,[ c.)1d c: 8oy,6,Et $ 1 cp OO <. O U a - O ^CC as A ox o' F t.4 ° a L i y t•�p6B' d 4 V 3 Opzo eM °gzv cw � •a�d gt yU'° aZ ''a C.)41 � 0. 0 b ,,i �Om � �oc . �y0 y .o 4E 0V° - o, 8 xrrGA Fo v t d 0 e — „p a UFOO• i1ili ° E6. 20 ev > Ea> Fa,+' ,c0 °' � ° 01 � ° hifl �WCG cigmA. Ck1 . gE mmx COS. E a<4 ``�`��llllltttt/f/// �..�` mac ••''s*p'•••4�,1 "i e •••• 6' i a) a) bA O O C a) = CD: o c� o: ftf v/ b w O Fi .b C ~ 0 N . bA a. 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ItoE-. g�-, � 'a) o ° UCi E xb Co 3 H o E-4 ,-iv) ;21ZaU •.. `o' Amends ORD 5061 CITY OF RENTON, WASHINGTON ORDINANCE NO. 5151 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 4-1-220, PROPERTY TAX EXEMPTION FOR MULTI-FAMILY HOUSING IN RESIDENTIAL TARGETED AREAS, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON" BY MODIFYING THE DESIGNATED RESIDENTIAL TARGETED AREAS AND OTHER PROJECT ELIGIBILITY REQUIREMENTS. WHEREAS, in 1995, the Washington State Legislature adopted Chapter 84.14 RCW, to encourage increased residential opportunities in cities required to plan under the Growth Management Act, by providing for special property tax valuations for eligible multi-family housing in targeted urban areas; and WHEREAS, Chapter 84.14 RCW, as amended, further authorized cities with a population of at least thirty thousand (30,000)to adopt procedures to implement the special property tax valuations; and WHEREAS, on December 15, 2003,the Renton City Council held a public hearing to receive public comments regarding proposed designated"residential targeted areas" in the Center Downtown, Urban Center North and Center Village Comprehensive Plan designations for the purpose of allowing a limited property tax exemption for qualifying multi-family housing, pursuant to RCW 84.14.040(2); and WHEREAS, on December 22, 2003, the Renton City Council adopted Ordinance No. 5061 (codified in RMC 4-1-220)to establish a property tax exemption incentive to encourage multi-family housing development in designated residential targeted areas; and 1 Sel ORDINANCE NO. 5151 14.0 WHEREAS,the City desires to modify the Urban Center North District 1 designated "residential targeted area"to help stimulate new construction of multi-family housing in the adjacent Commercial Office Residential 3 zone, thereby reducing development pressures on single-family residential neighborhoods and increasing housing opportunities; and WHEREAS, on June 27, 2005,the Renton City Council held a public hearing to receive public comments regarding the proposed modification to the Urban Center North District 1 designated"residential targeted area"to add the adjacent Commercial Office Residential 3 zone; and WHEREAS,the Renton City Council desires to modify the project eligibility requirements to improve clarity and intent; NOW, THEREFORE,THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON,DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 4-1-220.D, Project Eligibility, of Chapter 1, Administration and Enforcement,of Title IV(Development Regulations)of Ordinance No. 4260 entitled"Code of General Ordinances of the City of Renton, Washington" is hereby amended to read as follows: D. PROJECT ELIGIBILITY: To qualify for exemption from property taxation under this Section, the project must satisfy all of the following requirements: 1. Location: The property must be located in one of the designated "residential targeted areas" listed below in D.1.a, D.1.b or D.1.c of this Section. If a part of any legal lot is within a residential targeted area,then the entire lot shall be deemed to lie within the residential targeted area. 2 "� ORDINANCE NO. 5151 a. Highlands: Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village(CV)zone,the Residential Multi-Family(RM-F)zone, or the Residential 10 dwelling units/acre(R-10)zone; or b. Downtown: In the Center Downtown(CD)zone,Residential Multi-Family Urban Center(RM-U)zone, or Residential Multi-Family Traditional (RM- T)zone; or c. South Lake Washington: In the Urban Center North District 1 (UC-Nl)zone or Commercial Office Residential(COR 3)zone. 2. Size and Structure: a. If the project is located in the Residential Multi-Family Urban Center(RM-U)zone or Residential Multi-Family Traditional (RM-T)zone or within the Center Village Comprehensive Plan designation and in either the Residential Multi- Family(RM-F)zone or the Residential 10 dwelling units/acre(R-10)zone,the project must(i)consist of a minimum total of ten(10)new dwelling units of multi-family housing, and(ii)be located within a new residential structure(s)or a new mixed-use development as allowed by the RMC for the specific zone. At least fifty(50)percent of the space within the project shall be intended for permanent residential occupancy. b. If the project is located in the Center Downtown(CD)zone, Urban Center North District 1 (UC-N1)zone, or Commercial Office Residential 3 (COR 3) zone, or within the Center Village Comprehensive Plan designation and in the Center Village (CV)zone, the project must (i)consist of a minimum total of thirty(30) new dwelling units of multi-family housing and(ii)be located in a new mixed-use development, unless otherwise waived by the Administrator. If the Administrator waives 3 bible ORDINANCE NO. 5 15 1 4.10 the mixed-use development requirement, the multi-family housing must be located in a new residential structure(s). At least fifty(50) percent of the space within the project shall be intended for permanent residential occupancy. 3. Special Design Regulations for Projects Located in the Center Village Comprehensive Plan Designation or the Commercial Office Residential 3 (COR 3)Zone: a. If the project is located in the Center Village(CV)zone or Residential Multi-Family(RM-F)zone within the Center Village Comprehensive Plan designation or in the Commercial Office Residential 3 (COR 3)zone,the project must also comply with the design standards and guidelines in RMC 4-3-100 for District 'C', even though the project is not located in the Urban Center North Comprehensive Plan designation, unless otherwise waived by the Administrator. b. If the project is located in the Residential 10 dwelling units/acre (R-10)zone within the Center Village Comprehensive Plan designation, the project must also comply with the design standards and guidelines in RMC 4-3-100 for District B', even though the project is not located in the Residential Multi-Family Traditional (RM-T) zone, unless otherwise waived by the Administrator. If the project is located in the Center Village Residential Bonus District described in RMC 4-3-095, the project must also comply with the provisions therein. 4. Exception for Existing Residential Structure: In the case of an existing occupied residential structure that is proposed for demolition and redevelopment as new multi-family housing,the project must provide as a minimum number of dwelling units in the new multi-family housing project,the greater of: 4 ORDINANCE NO. 5151 a. Replace the existing number of dwelling units and, unless the existing residential rental structure was vacant for twelve(12)months or more prior to demolition, provide for a minimum of four(4)additional dwelling units in the new multi- family housing project; or b. Provide the number of dwelling units otherwise required in RMC 4-1-220D2 5. Completion Deadline: The project must be completed within three(3) years from the date of approval of the contract by the City Council as provided in RMC 4-1-220.F.2 or by any extended deadline granted by the Administrator as provided in RMC 4-1-220.I. SECTION II. This ordinance shall be effective upon its passage, approval, and five(5) days after its publication. PASSED BY THE CITY COUNCIL this 1st day of August , 2005. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this 1st day of August 2005. Gt/ /d.6-6‘, 1/Oke Kathy Keolker-Wheeler, Mayor Appr as to form: $16400•01•1641.71A)44.04466._, Lawrence J. Warren, City Attorney Date of Publication: 8/5/2005 (summary) ORD:1194:6/7/05:ma 5 August 1,2005 "r'' Renton City Council Minutes ""'`r Page 274 Transportation (Aviation) Transportation (Aviation) Committee Chair Palmer presented a report Committee recommending concurrence in the staff recommendation to adopt the annual Transportation: 2006-2011 TIP update of the Six-Year Transportation Improvement Program(TIP),2006-2011, and the Arterial Street Plan. The proposed TIP includes four new projects: Rainier Ave. (S. 4th Pl. to S. 2nd St.); Hardie Ave. SW Transit/Multi-Modal; May Creek Bridge Replacement; and School Zone Sign Upgrades. Six completed or cancelled projects were dropped from the program. The Committee further recommended that the resolution regarding this matter be presented for reading and adoption. MOVED BY PALMER, SECONDED BY PERSSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See below for resolution.) RESOLUTIONS AND The following resolutions were presented for reading and adoption: ORDINANCES Resolution#3762 A resolution was read updating the City's Six-Year Transportation Transportation: 2006-2011 TIP Improvement Program, 2006-2011. MOVED BY CLAWSON, SECONDED BY NELSON, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. Added A resolution was read authorizing the Mayor and City Clerk to enter into an Resolution#3763 interlocal cooperative agreement with King County regarding the Community Human Services: 2006-2008 Development Block Grant Program. MOVED BY NELSON, SECONDED BY CDBG Interlocal Agreement, PALMER,COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. King County The following ordinance was presented for first reading and referred to the Council meeting of 8/8/2005 for second and final reading: Transportation: Street Closure An ordinance was read amending Section 9-9-3 of Chapter 9, Street Closure, of Ordinance Title IX(Public Ways and Property)of City Code by allowing road closures of one day or less to be governed by administrative action. MOVED BY PERSSON, SECONDED BY CORMAN, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 8/8/2005. CARRIED. The following ordinance was presented for second and final reading and adoption: Ordinance#5151 An ordinance was read amending Section 4-1-220,Property Tax Exemption for Planning: Multi-Family Multi-Family Housing in Residential Targeted Areas,of Chapter 1, Housing Property Tax Administration and Enforcement,of Title IV (Development Regulations)of Exemption Modifications City Code by modifying the designated residential targeted areas and other project eligibility requirements. MOVED BY LAW, SECONDED BY �I CLAWSON,COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. NEW BUSINESS 'Referring to the 2006 Budget schedule, Council President Briere expressed Budget: 2006 Schedule concern regarding the review of fees and rates and the associated ordinances prior to the presentation of the budget to Council. Discussion ensued concerning the timing of the approval of any proposed fee and rate ordinance. Mayor Keolker-Wheeler stated that the budget schedule will be reviewed. Council: Information Request Councilman Persson requested status reports on the following items: the hiring on Various Issues of a new librarian; the proposed parks maintenance facility; the Skyway Towing court case; the prostitution arrests at massage parlors and related City July 11,2005 Renton City Council Minutes Page 250 Human Resources: Finance Committee Chair Persson presented a report recommending Reclassification of Four concurrence in the staff recommendation to approve reclassification of Positions positions and pay ranges that do not require additional 2005 budget appropriation as follows: Police Manager,grade m34 to m36, $4,392 budget change through 2005; and Civil Engineer III(New Title-Utility/GIS Engineer),grade a27 to a31, $7,452 budget change through 2005. The above changes are effective 1/1/2005. Housing Assistance Specialist(New Title-Housing Repair Coordinator),grade a18 to a20, $1,708 budget change through 2005; and Housing Maintenance Worker(New Title-Housing Repair Technician),grade a07 to a08, $1,309 budget change through 2005. The above changes are effective 6/1/2005. MOVED BY PERSSON, SECONDED BY NELSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Planning &Development Planning and Development Committee Vice Chair Law presented a report Committee recommending concurrence in the staff recommendation for the N. 14th St. Vacation: N 14th St,Pool street vacation, located east of Lake Washington Blvd.N. and Gene Coulon Brothers Construction, VAC- Memorial Beach Park, to accept the appraisal and set compensation at$21,285 05-001 for the vacation(VAC-05-001;Pool Brothers Construction,LLC,petitioner). MOVED BY LAW, SECONDED BY PALMER, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. RESOLUTIONS AND The following resolution was presented for reading and adoption: ORDINANCES Resolution#3760 A resolution was read approving the Shamrock Heights II Final Plat; Plat: Shamrock Heights II, approximately 4.8 acres located west of Lyons Ave. NE, east of Jericho Ave. Lyons Ave NE,FP-04-148 NE, and north of NE 4th St. (FP-04-148). MOVED BY BRIERE, SECONDED BY NELSON, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. Planning: Multi-Family Second reading of the ordinance concerning the multi-family housing property Housing Property Tax tax exemption modifications was postponed. Exemption Modifications The following ordinance was presented for second and final reading and adoption: Ordinance#5149 An ordinance was read amending Title VI(Police Regulations)of City Code by Police: Street Racing Event adding Chapter 6-27,Race Attendance, that prohibits race attendance within a Attendance Prohibition "No Racing Zone" and imposes criminal penalties. MOVED BY LAW, SECONDED BY BRIERE,COUNCIL ADOPT THE ORDINANCE AS READ.* Assistant City Attorney Zanetta Fontes noted the ordinance language revision that occurred after the first reading of the ordinance. *ROLL CALL: ALL AYES. CARRIED. Responding to Councilman Corman's inquiry, Ms. Fontes confirmed that signs will be posted in the designated "No Racing Zone" areas. y.. kr CS� ° c2a �C=CA O p E )4�mM c.^0 d h°°' a) '4" d N a)•b-- �U „ a. cy ill i!L Z 0:1.o,-a�. `� g �w o Gi1 goo >qg E az-cTo0 c°iyU-cs2.. a gtj'd cd p y al t 0 F��W�3]UN U m.O., =O hU hhi).Ua CJ 0 O].s ury., -.° ppdU �,b Ls, . ° pCCia °' p•q° 00 .,O"y, °co W y.. a. oo0s. 46 +4 a'�n Oya 0. �.6�uG�� ,3 z'y ,p FO. 2 ' m (� O.. p y niUb.�04-,, o ,4 a'2 0s F c C gzl, U — y•a'CCV� `�88 .0—W p C-- y >,-p p,." o ei N m'c� w E..5 2 a� c'� �h 5 5 go,3.x•,N U U$ a c�b c. `d CD )9-4 `1.4 bn cis'm al:'•.Go A,b c.4 c tw•off,._; y•b ►-i rr 0 m y N d O.aai w' a,,4 �- 0.,-4, c, ...FF00ti .g =ca 2�g'"c� ZZ. r'''•w o 0 1-,^UU i°'. P,N.4' &Z FP E.W esa'i6a, c c.'i `" GLNWU Q §ap 2cv �UC1 y m a,.' aa.�x 0w a..-D • 1. 1,0 ttIIN ito g�: a, d X a cv _• o i <t:" rrA�, t. 0.0 4 4.fi0 O 0.0 ON =a) 04 i 0 w N} _ ` .0 ms Z Q `~ o 3ms i ��io Q0%•«••.•«•,,..,``e•74 � li IN as O t, •� 3 3 � b a) 0 0o •� [� t [ b4'rn .b ..,', , b0.0 O V. .O N C v) U ►•a h � o Z to,� c° a 0 .o C CA o -d 0 0 G�• 0 ZC Au 4,-) ° a �� z 0 3 0.0 nR a� •Z' G U el o = OD cis CV cd -5 CA : a 1., 0 ° 0 o a) oN U aoi Q' W 6VI.. 3 N ` 4. cil o y co AUoo � .❑ •� n0 0 c c°i ° G� on.1 G a> = ii b as a> .= w G4 O y 0 H 0 a• cal .= o a) o f = O 00 0 _ _ Q t a .b = a+ _ = w =' C = c = oU Pi b � 6 00 �> �c ai Jn � C3c '� Uy til Qo E �'.4 >Z cl, oC ai ai y CirE� fx ca o uUv) E-. x is = 3 F o E- av] dr ° Za. 0 June 27,2005 j.r Renton City Council Minutes Page 237 2) Adopt an ordinance to modify the UC-N1 designated residential targeted area to add the(COR 3)zone and to make minor text amendments to improve the clarity and intent of the project eligibility requirements in City Code Section 4-1-220D. The Committee further recommended that the ordinance regarding this matter be presented for first reading. MOVED BY CLAWSON, SECONDED BY LAW,COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See later this page for ordinance.) Citizen Comment: McClaine- Referring to the letter read at last week's Council meeting from Diane Gene Coulon Park,Lack of McClaine, 23402 SE 217th Pl.,Maple Valley,98038,it was MOVED BY Parking for Class Attendance NELSON, SECONDED BY PALMER, COUNCIL REFER MS. MCCLAINE'S LETTER REGARDING LACK OF PARKING FOR CLASS ATTENDANCE AT GENE COULON BEACH PARK TO THE COMMUNITY SERVICES COMMITTEE. CARRIED. RESOLUTIONS AND The following ordinances were presented for first reading and referred to the ORDINANCES Council meeting of 7/11/2005 for second and final reading: Planning: Multi-Family An ordinance was read amending Section 4-1-220,Property Tax Exemption for Housing Property Tax Multi-Family Housing in Residential Targeted Areas, of Chapter 1, Exemption Modifications Administration and Enforcement, of Title IV(Development Regulations)of �7.4.1- City Code by modifying the designated residential targeted areas and other project eligibility requirements. MOVED BY LAW, SECONDED BY CLAWSON, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 7/11/2005. CARRIED. Police: Street Racing Event An ordinance was read amending Title VI(Police Regulations) of City Code by Attendance Prohibition adding Chapter 6-27,Race Attendance, that prohibits race attendance within a "No Racing Zone" and imposes criminal penalties. MOVED BY LAW, SECONDED BY PALMER,COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 7/11/2005. CARRIED. The following ordinances were presented for second and final reading and adoption: Ordinance#5147 An ordinance was read annexing approximately 35.68 acres located east of Annexation: Wedgewood 144th Ave. SE(Jericho Ave. NE), if extended, and west of 148th Ave. SE(Nile Lane, 144th Ave SE & 148th Ave. NE),north of SE 117th St.,and west of Honey Creek, south of SE 117th Ave SE St., if extended (Wedgewood Lane Annexation). MOVED BY CLAWSON, SECONDED BY NELSON, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. Ordinance#5148 An ordinance was read establishing the zoning classification of property Annexation: Wedgewood annexed within the City of Renton located east of 144th Ave. SE(Jericho Ave. Lane,R-4 Zoning NE), if extended, and west of 148th Ave. SE(Nile Ave. NE),north of SE 117th St., and west of Honey Creek, south of SE 117th St., if extended,from R-4 (Urban Residential -four dwelling units per acre; King County zoning)to R-4 (Residential -four dwelling units per acre) zoning; Wedgewood Lane Annexation. MOVED BY CLAWSON, SECONDED BY LAW, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. June 27,2005 .rr Renton City Council Minutes Page 236 MOVED BY CLAWSON, SECONDED BY LAW, COUNCIL APPROVE CONSENT AGENDA ITEM 7.d. AS PRESENTED. CARRIED. Added A letter was read from Charles D. Grass, CPA&Associates,PO Box 2563, CORRESPONDENCE Renton, 98056,concerning the effect of the NE Sunset Blvd. and Duvall Ave. Citizen Comment: Grass-NE NE Intersection Improvements Project on his property located at 10733 138th Sunset Blvd&Duvall Ave NE Ave. SE(1625 Duvall Ave.NE). He pointed out that the changes will restrict Intersection Improvements the current use of his property,reducing the parking availability by 50%. Project,Property Use MOVED BY PERSSON, SECONDED BY PALMER, COUNCIL REFER Restriction THIS CORRESPONDENCE TO THE ADMINISTRATION. CARRIED. UNFINISHED BUSINESS Finance Committee Chair Persson presented a report recommending Finance Committee concurrence in the staff recommendation to approve the annual renewal of the Human Resources: 2005 Group Health Cooperative medical coverage agreements as follows: LEOFF 1 Group Health Cooperative (Law Enforcement Officers and Fire Fighters)Employees(Contract No. Medical Coverage Contracts 0390400);LEOFF 1 Retirees (Contract Nos. 0057500 and 4057500); and all other City of Renton covered employees (Contract No. 1162600). Funding was previously approved by Council in the 2005 Budget. The revisions are applicable to all four of the renewal contracts. As in prior years, Group Health does not send confirming contracts for signature until mid year. The Committee further recommended that the Mayor and City Clerk be authorized to execute the contracts. MOVED BY PERSSON, SECONDED BY NELSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Finance: Vouchers Finance Committee Chair Persson presented a report recommending approval of Claim Vouchers 238477-238901 and two wire transfers totaling $1,973,672.06; and approval of Payroll Vouchers 57758 -58108,one wire transfer, and 582 direct deposits totaling$1,914,771.09. MOVED BY PERSSON, SECONDED BY NELSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Transportation(Aviation) Transportation(Aviation) Committee Chair Palmer presented a report Committee recommending concurrence in the staff recommendation to approve the Renton Airport: Development Study Municipal Airport Development Study with a modification to policy recommendation number four from"Permit scheduled seaplane operations from the City of Renton" to "Accept proposals from scheduled seaplane operators." The Committee further recommended authorizing staff to further explore implementation of the recommendations listed therein. MOVED BY PALMER, SECONDED BY PERSSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Planning &Development Planning and Development Committee Chair Clawson presented a report Committee regarding the designated residential targeted areas modification and the text Planning: Multi-Family amendments to the Multi-Family Housing Property Tax Exemption program. Housing Property Tax The Committee recommended concurrence in the recommendation of staff that Exemption Modifications Council: 1) Approve the modification to the Urban Center North District 1 (UC-N1) designated residential targeted area to add the Commercial Office Residential 3 (COR 3)zone; and June 27,2005 — Renton City Council Minutes Page 237 2) Adopt an ordinance to modify the UC-N1 designated residential targeted area to add the(COR 3)zone and to make minor text amendments to improve the clarity and intent of the project eligibility requirements in City Code Section 4-1-220D. The Committee further recommended that the ordinance regarding this matter be presented for first reading. MOVED BY CLAWSON, SECONDED BY LAW,COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See later this page for ordinance.) Citizen Comment: McClaine- Referring to the letter read at last week's Council meeting from Diane Gene Coulon Park,Lack of McClaine,23402 SE 217th Pl.,Maple Valley,98038, it was MOVED BY Parking for Class Attendance NELSON, SECONDED BY PALMER,COUNCIL REFER MS. MCCLAINE'S LETTER REGARDING LACK OF PARKING FOR CLASS ATTENDANCE AT GENE COULON BEACH PARK TO THE COMMUNITY SERVICES COMMITTEE. CARRIED. RESOLUTIONS AND The following ordinances were presented for first reading and referred to the ORDINANCES Council meeting of 7/11/2005 for second and final reading: Planning: Multi-Family An ordinance was read amending Section 4-1-220,Property Tax Exemption for Housing Property Tax Multi-Family Housing in Residential Targeted Areas, of Chapter 1, Exemption Modifications Administration and Enforcement, of Title IV(Development Regulations)of City Code by modifying the designated residential targeted areas and other project eligibility requirements. MOVED BY LAW, SECONDED BY CLAWSON,COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 7/11/2005. CARRIED. Police: Street Racing Event An ordinance was read amending Title VI(Police Regulations) of City Code by Attendance Prohibition adding Chapter 6-27,Race Attendance,that prohibits race attendance within a "No Racing Zone" and imposes criminal penalties. MOVED BY LAW, SECONDED BY PALMER,COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 7/11/2005. CARRIED. The following ordinances were presented for second and final reading and adoption: Ordinance#5147 An ordinance was read annexing approximately 35.68 acres located east of Annexation: Wedgewood 144th Ave. SE(Jericho Ave. NE), if extended, and west of 148th Ave. SE(Nile Lane, 144th Ave SE & 148th Ave. NE),north of SE 117th St., and west of Honey Creek, south of SE 117th Ave SE St., if extended(Wedgewood Lane Annexation). MOVED BY CLAWSON, SECONDED BY NELSON, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. Ordinance#5148 An ordinance was read establishing the zoning classification of property Annexation: Wedgewood annexed within the City of Renton located east of 144th Ave. SE(Jericho Ave. Lane, R-4 Zoning NE), if extended, and west of 148th Ave. SE(Nile Ave. NE), north of SE 117th St., and west of Honey Creek, south of SE 117th St., if extended, from R-4 (Urban Residential -four dwelling units per acre; King County zoning)to R-4 (Residential-four dwelling units per acre)zoning;Wedgewood Lane Annexation. MOVED BY CLAWSON, SECONDED BY LAW, COUNCIL ADOPT THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. e PLANNING AND DEVELOPMENT COMMITTEE 'S '` — s l COMMITTEE REPORT Uri i 'Jo. Date 4-47-aoas June 27,2005 Multi-Family Housing Property Tax Exemption Program—Designated Residential Targeted Areas Modification and Text Amendments (Referred June 13, 2005) The Planning and Development Committee recommends concurrence in staff s recommendation that Council: 1) Approve the modification to the Urban Center North District 1 (UC-N 1) designated residential targeted area to add the Commercial Office Residential 3 (COR 3) zone; and 2) Adopt an ordinance to modify the Urban Center North District 1 (UC-N1) designated residential targeted area to add the Commercial Office Residential 3 (COR 3) zone and to make minor text amendments to improve the clarity and intent of the project elibility requirements in Section 4-1-220D. The Committee further recommends that the ordinance regarding this matter be presented for first reading. Dan Clawson, Chair hj"-- W• Denis W. Law, Vice Chair 17(1..2.,- 2)1 Marcie Palmer, Member cc: -ketremingrar Alex Pietsch Michael Wilson Gregg Zimmerman Neil Watts RENTON CITY COUNCIL Regular Meeting June 27, 2005 Council Chambers Monday,7:30 p.m. MINUTES Renton City Hall CALL TO ORDER Mayor Kathy Keolker-Wheeler called the meeting of the Renton City Council to order and led the Pledge of Allegiance to the flag. ROLL CALL OF DON PERSSON,Past Council President; DENIS LAW; DAN CLAWSON; COUNCILMEMBERS TONI NELSON; MARCIE PALMER. MOVED BY NELSON, SECONDED BY LAW, COUNCIL EXCUSE ABSENT COUNCILMEMBERS TERRI BRIERE AND RANDY CORMAN. CARRIED. CITY STAFF IN KATHY KEOLKER-WHEELER, Mayor;JAY COVINGTON, Chief ATTENDANCE Administrative Officer;LAWRENCE J. WARREN, City Attorney; BONNIE WALTON, City Clerk; GREGG ZIMMERMAN,Planning/Building/Public Works Administrator; ALEX PIETSCH, Economic Development Administrator; BEN WOLTERS,Economic Development Director;MARK SANTOS-JOHNSON,Economic Development Specialist; DENNIS CULP, Community Services Administrator; SYLVIA ALLEN,Recreation Director; MIKE WILSON, Interim Finance and Information Services Administrator; LINDA PARKS,Fiscal Services Director; COMMANDER KATIE MCCLINCY,Police Department. SPECIAL Mike Wilson, Interim Finance and Information Services Administrator, PRESENTATIONS announced that Renton has once again won an award for its Comprehensive Finance: 2003 CAFR Award Annual Financial Report (CAFR)from the Government Finance Officers Association(GFOA). He stated that compliance with GFOA's high standards is reflected by the City's solid bond rating, excellent audit reports, and low audit risk classification. Mr. Wilson presented Fiscal Services Director Linda Parks with the award, saying it is a tribute to her and her staff. Ms. Parks expressed her appreciation to staff, and recognized Grants Accountant Nancy Violante,Finance Analyst Linda Dixon,and former Finance and Information Services Administrator Victoria Runkle for their work on the 2003 CAFR from start to finish. AWC: Achievement Award of Mayor Keolker-Wheeler announced that Renton received the Association of Excellence, REACT Program Washington Cities Achievement Award of Excellence for its REACT(Renton Enhanced Abatement and Code Enforcement Team)program. She explained that this interdepartmental effort addresses non-criminal activities and nuisance abatement. Noting that the team members are working together for the benefit of the citizens,the Mayor stated how proud she is of what the team has accomplished so far. REACT team member Commander Katie McClincy indicated that the program involves the community as well as City staff, and stressed that the resulting networking with community members has been effective. Councilmember Palmer stated that code violations can be reported by calling 425-430-7373. PUBLIC HEARING This being the date set and proper notices having been posted and published in Planning: Multi-Family accordance with local and State laws,Mayor Keolker-Wheeler opened the Housing Prop ax public hearing to consider modifications to the existing designated residential Exemption Modifications targeted areas for a potential limited property tax exemption for eligible multi- family projects. June 27,2005 """ Renton City Council Minutes Page 233 Alex Pietsch,Economic Development Administrator, stated that Renton has been actively encouraging the development of high-density,multi-family housing in its urban centers,and one of the tools afforded by the State to encourage that type of development is a limited property tax exemption. Mark Santos-Johnson,Economic Development Specialist,explained that the proposal adds the Commercial Office Residential 3 (COR 3)zone to the existing Urban Center North District 1 (UC-N1) zone designated residential targeted area,and changes the names for three designated residential targeted areas to "Downtown," "Highlands," and "South Lake Washington." Continuing,Mr. Santos-Johnson reported that eligible projects may be able to receive a partial property tax exemption for up to ten years. The exemption applies to the value of new housing construction,but does not include the value of land,existing improvements, or non-housing related improvements. He stated that the tax exemption also applies to all levels of the ad valorem property tax, including city,county, state, and local taxing districts;and for projects in Renton, this amounts to$11.86 per$1,000 of assessed value for 2005. Mr. Santos-Johnson explained that eligible projects must be located in designated targeted areas; must be new construction rental or owner occupied multi-family housing with four or more housing units in each building;must have a minimum of either ten or thirty housing units depending upon location; must be mixed-use if located in the Center Downtown zone,UC-N1 zone,COR 3 zone, or in the Center Village zone, unless waived; and must comply with design standards and guidelines. In conclusion,Mr. Santos-Johnson conveyed staffs recommendation to add the COR 3 zone to the existing UC-N1 zone designated residential targeted area, and to establish new names for the three designated residential targeted areas. Public comment was invited. Michael Christ, 1083 Lake Washington Blvd. N., Renton,98056;Julia Peckham, 1083 Lake Washington Blvd. N., Renton,98056; and Jim Hambuechen, 1083 Lake Washington Blvd. N.,Renton, 98056, spoke in support of the addition of the COR 3 zone to the existing UC-N1 zone designated residential targeted area for the property tax exemption,and noted that the exemption will benefit the Southport development project. There being no further public comment, it was MOVED BY LAW, SECONDED BY CLAWSON,COUNCIL CLOSE THE PUBLIC HEARING. CARRIED. (See page 236 for Planning and Development Committee report.) ADMINISTRATIVE ' Chief Administrative Officer Jay Covington reviewed a written administrative REPORT report summarizing the City's recent progress towards goals and work programs adopted as part of its business plan for 2005 and beyond. Items noted included: * The Valley Medical Center Cinema on the Piazza will kick off its season in downtown Renton on July 2nd, and will continue every Saturday night through the end of August. * Two major improvement projects have been completed at the Maplewood Golf Course: 1)the reconstruction of the Number 8 Green and the hillside drainage installation, and 2)the installation of additional parking and overhead netting. CITY OF RENTON PUBLIC HEARING HANDOUT June 27, 2005 APPLICATION NAME Modifications to the existing designated residential targeted areas for a potential limited property tax exemption for eligible multi-family housing projects. PROJECT DESCRIPTION The Economic Development, Neighborhoods and Strategic Planning(EDNSP)Department proposes to modify the existing designated residential targeted areas for a potential limited property tax exemption for eligible multi-family housing projects to add the Commercial Office Residential 3 (COR 3)zone to the Urban Center North District 1 (UC-N1)designated residential targeted area. As provided for in Chapter 84.14 RCW, the City Council adopted ordinance 5061 on December 22, 2003, (codified in section 4-1-220 of the Renton Municipal Code)to establish a property tax exemption incentive to encourage multi-family housing development in the following three designated residential targeted areas: • In the Center Downtown (CD)zone, Residential Multi-Family Urban Center(RM-U) zone, Residential Multi-Family Traditional (RM-T)zone; or • Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village (CV)zone, the Residential Multi-Family Suburban Center(RM-C)zone, or the Residential 10 dwelling units/acre (R-10)zone; or • In the Urban Center North District 1 (UC-N1)zone. The EDNSP Department also proposes naming the three designated residential targeted areas as "Downtown," "Highlands," and"South Lake Washington,"respectively," as noted on the attached map. By utilizing the multi-family housing property tax exemption, eligible multi-family housing projects (apartments or condominiums)located in the designated residential targeted areas may be able to receive a partial property tax exemption for up to 10 years. As required by state law, the City is holding a public hearing for the purpose of considering the proposed modifications to the existing residential targeted areas for the multi-family housing property tax exemption. 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N ''c OrRENTON NOTICE OF ronLie REA NOTICE-IS HEREBY.CaNrEN that tile Renton City Council has fixed the 27th day of .2t05,at 7:30 p.m,aa the date and time for',public hearingto be held in the seventh floor Council ChamberafifItentOn t ty itan, loss s.: 'r y- ay,Renton,WA 98055 to. consider the following: • City proposal to modify the existing residential targetol,areas for a potential limite prcoertytax exemption for eligible ti-family housing projects to add the Commercial Office Residential 3 (COR 3)zone to the'Urban Center North District 1 (UC-N1)'4ksignIttted residential targeted The eligibility criteria and requirements_fox l uk # air Housing Property Tax Exemption projects are codified in section 4,1 2 0 of the litenton Municipal Code. All interested Parties are invited4o attend the hearing and prey written or oral comments regarding the proposal. Renton City Hall is in cal with the American Disabilities Act,and i te ,aretivea des for the hearing impaired'.will be provided upon prior notice. For information,cly445-40-6502. Bonnie I. Walton City Clerk Published King County Journal June 16 &20,200 Account No. 50640 Notice sent to 1. Party ?of Record per attached labels. cc: Mark 'Santos-Johnson . Michael Christ 1083 Lake Washington Bl N#50 Renton, WA 98056 CITY OF RENTON NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the Renton City Council has fixed the 27th day of June, 2005, at 7:30 p.m. as the date and time for a public hearing to be held in the seventh floor Council Chambers of Renton City Hall, 1055 S. Grady Way, Renton, WA 98055, to consider the following: City proposal to modify the existing residential targeted areas for a potential limited property tax exemption for eligible multi-family housing projects to add the Commercial Office Residential 3 (COR 3) zone to the Urban Center North District 1 (UC-N1) designated residential targeted area The eligibility criteria and requirements for Multi-Family Housing Property Tax Exemption projects are codified in section 4-1-220 of the Renton Municipal Code. All interested parties are invited to attend the hearing and present written or oral comments regarding the proposal. Renton City Hall is in compliance with the American Disabilities Act, and interpretive services for the hearing impaired will be provided upon prior notice. For information, call 425-430-6502. & t J. ZZ)at Bonnie I. Walton City Clerk Published King County Journal June 16 & 20, 2005 Account No. 50640 row, — From: Mark Santos-Johnson To: Walton, Bonnie Date: 6/13/2005 12:12:34 PM Subject: Re: Draft Public Hearing Notice for MFHPTE Modification Bonnie, The only person of interest that I am currently aware of is Michael Christ, SECO Development, 1083 Lake Washington Boulevard N #50, Renton, WA 98056 Yes, it would be helpful to send him a copy of the public hearing notice. Thanks. Mark >>> Bonnie Walton 6/13/2005 12:09:57 PM >>> Mark, are there any particular individual parties that you would like me to send the PH notice to, or will the legal ad suffice? The ad will publish on the 16th &the 20th. Bonnie >>> Mark Santos-Johnson 6/8/2005 11:54:34 AM >>> Hi Bonnie, Per our conversation on Tuesday, attached please find a draft public hearing notice for the proposed June 27 public hearing for the modification to the targeted residential area for the Multi-Family Housing Property Tax Exemption (MFHPTE). For your reference, I have included the following excerpt from RCW 84.14.040 related to the public hearing requirements: (3)The governing authority shall give notice of a hearing held under this chapter by publication of the notice once each week for two consecutive weeks, not less than seven days, nor more than thirty days before the date of the hearing in a paper having a general circulation in the city where the proposed residential targeted area is located. The notice must state the time, date, place, and purpose of the hearing and generally identify the area proposed to be designated as a residential targeted area. FYI, the public hearing notices were published last time on 12/5/03 and 12/8/03, a Friday and a Monday. Please let me know if you have any questions. Otherwise, I appreciate your efforts to proceed (subject to the City Council's action at the 6/13/05 meeting to set the public hearing for 6/27)with publishing the public hearing notice twice, once on 6/20/05 and the other time sometime next week. At your convenience, please provide me with an electronic and paper copy of the final public hearing notice for our records. Thanks. Mark ext 6584 RENTON CITY COUNCIL Regular Meeting June 13, 2005 Council Chambers Monday,7:30 p.m. MINUTES Renton City Hall CALL TO ORDER Mayor Kathy Keolker-Wheeler called the meeting of the Renton City Council to order and led the Pledge of Allegiance to the flag. ROLL CALL OF TERRI BRIERE, Council President;DENIS LAW;DAN CLAWSON;TONI COUNCILMEMBERS NELSON;RANDY CORMAN; DON PERSSON;MARCIE PALMER. CITY STAFF IN KATHY KEOLKER-WHEELER,Mayor; JAY COVINGTON, Chief ATTENDANCE Administrative Officer; LAWRENCE J. WARREN, City Attorney; BONNIE WALTON, City Clerk; GREGG ZIMMERMAN,Planning/Building/Public Works Administrator; MIKE WILSON,Interim Finance and Information Services Administrator; CHIEF GARRY ANDERSON, Police Department. SPECIAL PRESENTATION Police Chief Garry Anderson expressed appreciation to Fred Meyer Stores,Inc. Police: Fred Meyer providing space for a Police Department sub-station free of charge for nine Recognition for Housing Sub- years at the Fred Meyer shopping center on Rainier Ave. S. He noted the Station relocation of the police sub-station from this space to the City Center Parking garage in downtown Renton. Chief Anderson presented Rick Nestegard, Store Director, with a plaque and a certificate of appreciation, and pointed out that Fred Meyer also contributes to community events such as the Special Olympics and the Return to Renton Car Show. ADMINISTRATIVE Chief Administrative Officer Jay Covington reviewed a written administrative REPORT report summarizing the City's recent progress towards goals and work programs adopted as part of its business plan for 2005 and beyond. Items noted included: * A fireworks ban is in effect within the Renton City limits and both the Police and Fire Departments will actively enforce this ban. * The Henry Moses Aquatic Center will open for the weekend,June 18th and 19th, and then re-open daily for the season on June 22nd through September 5th. CONSENT AGENDA Items on the consent agenda are adopted by one motion which follows the listing. Council Meeting Minutes of Approval of Council meeting minutes of June 6, 2005, Council concur. June 6, 2005 Plat: Maureen Highlands Development Services Division recommended approval, with conditions,of the Division III, Rosario Ave NE, Maureen Highlands Division III Final Plat; 19 single-family lots on 4.6 acres FP-05-049 located east of Rosario Ave. NE and north of NE 4th St. (FP-05-049). Council concur. (See page 215 for resolution.) Planning: Multi-Family Economic Development, Neighborhoods and Strategic Planning Department Housing Property Tax recommended approval to modify the existing designated residential targeted Exemption Modifications areas for the multi-family housing property tax exemption and to improve the T jn- clarity or intent of the project eligibility requirements. Refer to Planning and Development Committee; set public hearing on 6/27/2005. Comprehensive Plan: 2005 Economic Development, Neighborhoods and Strategic Planning Department Amendments submitted proposed 2005 Comprehensive Plan amendments. Refer to Planning and Development Committee and Planning Commission. CNsii' OF RENTON COUNCIL AGENDA**BILL AI#: e Submitting Data: For Agenda of: 6/13/2005 Dept/Div/Board.. EDNSP Staff Contact Mark Santos-Johnson Agenda Status Ext. 6584 Consent X Subject: Public Hearing.. X Multi-Family Housing Property Tax Exemption Correspondence.. Program - Designated Residential Targeted Areas Ordinance Modification and Text Amendments Resolution Old Business Exhibits: New Business Issue Paper Study Sessions Ordinance Information Recommended Action: Approvals: 1) Refer to the Planning & Development Committee. Legal Dept 2) Set a public hearing on 6/27/05 for the proposed Finance Dept modification to the designated residential targeted areas Other for the multi-family property tax exemption. Fiscal Impact: Expenditure Required... N/A Transfer/Amendment N/A Amount Budgeted N/A Revenue Generated N/A Total Project Budget N/A City Share Total Project.. N/A SUMMARY OF ACTION: In December 2003, the Council established a property tax exemption incentive to encourage multi- family housing development in designated residential targeted areas (codified as RMC 4-1-220). SECO Development recently asked the City to extend the multi-family housing property tax exemption (MFHPTE) to the Southport site to enable the company to proceed with building The Carling, a 195- unit multi-family housing project. In order to be eligible for the MFHPTE, the City needs to amend the Urban Center North District 1 designated residential targeted area to include the Commercial Office Residential 3 zone (i.e., the Southport site). In marketing the MFHPTE during the last year-and-a-half, EDNSP staff has identified several minor text amendments to improve the clarity or intent of the project eligibility requirements in RMC 4-1- 220D. STAFF RECOMMENDATION: (1) Set a public hearing on 6/27/05 for the proposed modification to the existing designated residential targeted areas for the multi-family housing property tax exemption (MFHPTE) to add the Commercial Office Residential 3 zone to the current Urban Center North District 1 designated residential targeted area; (2) approve the modification to the Urban Center North District 1 designated residential targeted area; and (3) adopt an ordinance to add the Commercial Office Residential 3 (COR 3) zone to the existing Urban Center North District 1 designated residential targeted area and make minor text amendments to improve the clarity or intent of the project eligibility requirements in RMC-4-1-220D. targeted area and make minor tee amendments to improve the clarity oritent of the project eligibility requirements in RMC-4-1-220D. (sy o ECONOMIC DEVELOPMENT, NEIGHBORHOODS, U „ AND STRATEGIC PLANNING DEPARTMENT .. ® , � ��N�o� MEM OR ANDUM DATE: June 6, 2005 TO: Terri Briere, Council President Members of the Renton City Council VIA: ,3 Kathy Keolker-Wheeler, Mayor `0 FROM: -0 Alex Pietsch, Administrator STAFF CONTACT: Mark Santos-Johnson,Economic Development Specialist Ext. 6584 SUBJECT: Multi-Family Housing Property Tax Exemption Program— Designated Residential Targeted Areas Modification and Text Amendments ISSUE: Should the City modify the designated residential targeted areas for the multi-family housing property tax exemption (MFHPTE) provided for in RMC 4-1-220 and make minor text amendments to improve the clarity or intent of the current project eligibility requirements? RECOMMENDATION: • As required by RCW 84.14.040, set a public hearing for June 27, 2005, to modify the existing designated residential targeted areas for the MFHPTE to add the Commercial Office Residential 3 (COR 3) zone (i.e., the property specifically known as Southport) to the current Urban Center North District 1 designated residential targeted area. • Approve the modified Urban Center North District 1 designated residential targeted area and adopt an ordinance to add the Commercial Office Residential 3 (COR 3) zone to the existing Urban Center North District 1 designated residential targeted area and make minor text amendments in the project eligibility requirements in RMC-4-1-220D as identified below. BACKGROUND SUMMARY: Overview As authorized by Chapter 84.14 RCW, the City Council adopted ordinance 5061 on December 22, 2003, (codified in RMC 4-1-220) to establish a property tax exemption incentive to encourage multi-family housing development in the following three designated residential targeted areas: • Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village (CV) zone, the Residential Multi-Family Suburban Center (RM-C) zone, or the Residential 10 dwelling units/acre (R-10) zone; or June 6, 2005 Page 2 • In the Center Downtown (CD) zone, Residential Multi-Family Urban Center (RM- U) zone, Residential Multi-Family Traditional (RM-T) zone, or • In the Urban Center North District 1 (UC-Nl) zone. In addition to being located in one of the designated residential targeted areas noted above, eligible multi-family housing projects must, for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the CD, or UC-N1 zones or a minimum of 10 attached dwelling units if located in one of the other zones noted above. As outlined in Chapter 84.14 RCW, the provision allows the value of qualified new housing construction to be exempt from ad valorem property taxation for 10 successive years after completion of the project. However, the exemption does not include the value of the land, existing improvements or non-housing-related improvements (e.g., commercial space). The multi-family property tax exemption is in addition to any other tax credits, grants or incentives provided by law for the multi-family housing. Interest in the Multi-Family Housing Property Tax Exemption EDNSP has marketed the MFHPTE to help encourage new residential construction in the residential targeted areas. The City recently received and approved MFHPTE applications for the Merrill Gardens at Renton Centre, a 155-unit multi-family retirement residence located at 104 Burnett Avenue S and the Parkside at 95 Burnett, a 106-unit multi-family housing project located at 77 and 95 Burnett Avenue S. EDNSP currently anticipates at least one additional MFHPTE application this year (i.e., Harrington Square, a proposed 210 to 215-unit multi-family housing facility to be located at 950 Harrington Avenue NE in the Renton Highlands). Proposed Modification to Designated Residential Targeted Areas The current MFHPTE residential targeted areas include the Urban Center North District 1 (UC- N1) zone in north Renton, but not the nearby Commercial Office Residential 3 (COR 3) zone (i.e., the Southport project). SECO Development, the Southport developer, completed The Bristol at Southport in 2001. The Bristol is a 188-unit multi-family housing project and the first phase of the Southport development. The City's MFHPTE was not established until after The Bristol was completed and the City's property tax exemption does not apply to existing structures. Because of the high office vacancy rate in the region, SECO Development has been unable to proceed with the proposed 750,000 sf of office space, or the adjacent boutique hotel, planned for Southport. Recently, SECO Development advised EDNSP that the company will also be unable to proceed in the near future with the second phase of the project's multi-family housing development, The Carling (a 195-unit multi-family housing project), unless the project receives the MFHPTE. Since The Carling has not yet applied for a building permit from the City, the project could be eligible for the MFHPTE if the City modifies the designated residential targeted areas. IssuePaper-Multi-Family Housing Property Tax Exemption Southport 6-6-05.doc June 6, 2005 Page 3 As required by RCW 84.14.040, EDNSP is requesting that the Council set a public hearing for June 27, 2005, to modify the existing designated residential targeted areas for the MFHPTE to add the Commercial Office Residential 3 (COR 3) zone to the current Urban Center North District 1 designated residential targeted area. Please see Attachment 1 for a map of the proposed modified designated Residential Targeted Areas for the Multi-Family Housing Property Tax Exemption. As currently required in RMC 4-1-220 for projects located in the Center Downtown (CD), Urban Center North District 1 (UC-N1) or Center Village (CV) zones, EDNSP recommends that MFHPTE projects in the Commercial Office Residential 3 (COR3) zone consist of a minimum total of 30 new dwelling units of multi-family housing; (ii) be located in a new mixed-use development, unless otherwise waived by the Administrator; and (iii) comply with the design standards and guidelines in RMC 4-3-100 for District "C." Potential Property Tax Savings for The Carling at Southport The multi-family property tax exemption applies to all levels of the ad valorem property tax, including the local jurisdiction, county, state, and all local taxing districts. For projects in Renton, this amounts to a total of$11.86676 per $1,000 of assessed value for 2005. The value of the property tax exemption will of course be determined by the nature, quality, and cost of the multi-family housing (e.g., size, type, parking, and amenities). For The Carling, the projected potential MFHPTE would equal approximately $282,154 per year, or $2,821,545 over 10 years (based on the current ad valorem property tax rate) and an estimated assessed value for improvements of 75% of the projected construction cost. This equates to a potential property tax savings of approximately $1,447 per year per housing unit ($14,469 per housing unit for the 10- year period) for the project. The City of Renton's portion of the above estimated potential property tax savings would equal approximately $76,729 per year ($767,289 for the 10-year period) for the 195-unit multi-family housing project. Although the City would receive additional property tax revenue from the commercial portion of The Carling project, plus potential additional property tax revenue from the anticipated increased assessed values for the land, the City would not receive property tax revenue for the residential improvements until after the 10-year property tax exemption period if the project was eligible for the MFHPTE. (Please see Attachment 2, The Carling - Projected Property Tax Calculation, for a summary of the potential MFHPTE for The Carling, plus a breakdown of the local ad valorem property tax rate and how the tax rates apply to the various taxing entities.) Proposed Text Amendments to Project Eligibility Requirements in RMC 4-1-220D In marketing the MFHPTE program, EDNSP staff identified two project eligibility items in RMC 4-1-220 where the current text or format created unintended provisions. Although neither provision has applied to any known projects interested in using the MFHPTE at this time, EDNSP IssuePaper-Multi-Family Housing Property Tax Exemption Southport 6-6-05.doc June 6, 2005 Page 4 staff proposes changing the following two items in the Project Eligibility section, RMC 4-1-220D, to clarify the City's intent: • (i) The legal lot definition applies to projects located in any residential targeted area; and • (ii) In the case of an existing occupied residential structure that is proposed for demolition and redevelopment as new multi-family housing, the project must provide the greater of the existing number of dwelling units (if applicable) plus four dwelling units or the number of dwelling units otherwise provided for in RMC 4-1-220D2 (i.e., 10 or 30 dwelling units, depending upon where the property is located). EDNSP staff also proposes naming each of the three designated residential targeted areas to assist in marketing the MFHPTE. The proposed names are "Downtown," "Highlands," and "South Lake Washington" as noted on the map included as Attachment 1. Please refer to Attachment 3 for a redline version of the proposed text amendments regarding the project eligibility requirements in RMC 4-1-220D (excluding, for the purpose of illustration, the proposed changes related to the modified Urban Center North District 1 residential targeted area described above). Please refer to Attachment 4 for a draft Ordinance with redline all of the current proposed changes to RMC 4-1-220. For Attachments 3 and 4, only the text that is marked by an underline or strikethrough is different from the current code. CONCLUSION: The multi-family property tax exemption provided for in 84.14 RCW has been utilized by a number of local jurisdictions to help spur development in urban neighborhoods with insufficient housing opportunities. Although the tax exemption by itself is not enough to create developments, it is an added financial incentive for developers to create quality multi-family housing in targeted areas in our community. Renton's MFHPTE has started to generate additional interest in development of desired multi- family housing in residential targeted neighborhoods. In order to make the proposed changes outlined above, the City needs to hold a public hearing to consider the modified residential targeted area for eligible projects, approve the modified designated residential targeted area, and adopt an ordinance that modifies RMC 4-1-220 to modify the residential targeted area and make the minor text amendments described above. Attachments: Proposed Modified Residential Targeted Areas for Multi-Family Housing Property Tax Exemption map Potential Projected Multi-Family Housing Property Tax Exemption for the Carling Proposed Text Amendments to Project Eligibility Requirements in RMC 4-1-220D Draft Ordinance cc: Jay Covington,CAO Bonnie Walton,City Clerk Michael Wilson,Interim FIS Administrator Gregg Zimmerman,PBPW Administrator Neil Watts,Development Services Director IssuePaper-Multi-Family Housing Property Tax Exemption Southport 6-6-05.doc ''" Attachment 1 INN Downtown i �I F S;`p:O Of a■ :11 �■C . ■W NM HighlandsSINK'■—:�-tt;-■.:i■■siorg •�: ..Y,.■ al Ell M. 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MnIfil I a .1 / Cry _G3 nla _ea1111111 fI, , t lig NE3� 1 4 Ilia o__ a _ _li %� d '�nnpnpO� Airport Wo 0 �, `II: —El r♦ .• NE , a��,, _ 1 11 W ER Eh1:7 • 0I,,'�= �IMP �• °yip ,t,.°,.►��o_ II ,JIII I■111111M #'■■ ■��� O�i�`� _e ie II" _��� � '1■�11_,.0IIIIIIg11Cc11HWJ1uY�/ ��YY;�����, �p fiffir k ainum il ;,v4ni6.7,,.1,,1.,• �11. s 0�O, �Cq► ,1eZs- Mar P1- �, = �i►= ✓l - ..... L,''''"'N' `•!'uiia _III m,,.,,. °y �„ _ : 6. ,,.. ,, 41h Pt .J =Mk WOVAIIIIIMMIlninirl Illf 11.1.7 -‘1.1. NIP41;541111‘78/0 111 �:; liw Ali►, /•pum �•� �� it mg..=III I. 11111MIC\ ... Al r i�mitummwAst/��� �I="=11"IC:D\�'"" —_tea Icp,, �441. �%.lIIA Proposed Modified Residential Targeted Areas for $'' Multi-Family II o u s i n g Economic Development,Neighborhoods&Strategic Planning Alex Pietsch,Administrator Property Tax Exemption ' •pT!+ G Del Rosario � ' 3June 2005 • Attachment 2 Potential Projected Multi-Family Housing Property Tax Exemption for the Carling (a.k.a. Southport Phase II Multi-Family Development)* Number of Housing Units 195 Projected Cost of Construction $32,774,468 (Reflects current value,but subject to increase based on Estimated Assessed Value for Land after Construction $1,968,700 increased improvements to site) Estimated Assessed Value for Improvements after Construction $24,580,851 (Estimated by City at 75%of projected construction costs) Estimated Assessed Value for Improvements after Construction- Residential Portion $23,776,875 Estimated Assessed Value for Improvements after Construction- RetaiVCommercial Portion $803,976 2005 Rate Estimated Estimated Estimated Property Total Estimated per$1,000 of Property Property Tax for Tax for Property Tax Assessed Tax for Residential RetaiVCommercial (Land& Value Land Improvements Improvements Improvements) Breakdown of Projected Property Tax (Based on 2005 Property Tax Rates) City of Renton-General Levy $3.14843 $6,198 $74,860 $2,531 $83,589 City of Renton-Special Levy $0.07861 $155 $1,869 $63 $2,087 Total City of Renton property tax $3.22704 $6,353 $76,729 $2,594 $85,676 King County $1.38229 $2,721 $32,867 $1,111 $36,699 Port of Seattle $0.25321 $498 $6,021 $204 $6,723 Hospital District#1 $0.09039 $178 $2,149 $73 $2,400 Renton School District#403 $3.99250 $7,860 $94,929 $3,210 $105,999 State of Washington School Fund $2.68951 $5,295 $63,948 $2,162 $71,405 Emergency Medical Service $0.23182 $456 $5,512 $186 $6,155 Sub-total other property tax $8.63972 $17,009 $205,426 $6,946 $229,381 Total Property Tax $11.86676 $23,362 $282,154 $9,541 $315,057 Estimated Annual Property Tax per Housing Unit $120 $1,447 N/A $1,567 Annual Estimated Property Tax Savings for Residential Improvements $282,154 Ten Year Estimated Property Tax Savings for Residential Improvements $2,821,545 City of Renton Portion of Annual Estimated Property Tax Savings for Residential Improvements $76,729 City of Renton Portion of Ten Year Estimated Property Tax Savings for Residential Improvements $767,289 *Based on 2005 Property Tax Rates,but subject to change in the future based on new tax rates and/or changes in the projects assessed value. Attachment 3 Proposed Text Amendments to Project Eligibility Requirements in RMC 4-1-220D D. PROJECT ELIGIBILITY: To qualify for exemption from property taxation under this Section, the project must satisfy all of the following requirements: 1. Location: The property must be located in one of the following-designated "residential targeted areas"_ listed below in Dla, Dlb or Dlc of this Section. If a part of any legal lot is within a residential targeted area, then the entire lot shall be deemed to lie within the residential targeted area. a. Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village (CV) zone, the Residential Multi-Family Suburban Center (RM-C) zone, or the Residential 10 dwelling units/acre (R-10) zone; or b. In the Center Downtown (CD) zone, Residential Multi-Family Urban Center (RM-U) zone, or Residential Multi-Family Traditional (RM-T) zone, or c. In the Urban Center North District 1 (UC-N1) zone or the Commercial Office Residential 3 (COR 3) zone. If a part of any legal deemed to lie within the residential targeted area. 4. Exception for Existing Residential Structure: In the case of an existing occupied residential structure that is proposed for demolition and redevelopment as new multi-family housing, the project must repiaceprovide as a minimum number of dwelling units in the new multi- family housing project, the greater of: a. replace the existing number of dwelling units and, unless the existing residential rental structure was vacant for twelve (12) months or more prior to demolition, provide for a minimum of four (4) additional dwelling units in the new multi-family housing project; or b. provide the number of dwelling units otherwise required in RMC 4- 1-220D2. IssuePaper-Multi-Family Housing Property Tax Exemption Southport 6-6-05.doc Attachment 4 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 4-1-220, PROPERTY TAX EXEMPTION FOR MULTI-FAMILY HOUSING IN RESIDENTIAL TARGETED AREAS, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON" BY MODIFYING THE DESIGNATED RESIDENTIAL TARGETED AREAS AND OTHER PROJECT ELIGIBILITY REQUIREMENTS. WHEREAS, in 1995, the Washington State Legislature adopted Chapter 84.14 RCW, to encourage increased residential opportunities in cities required to plan under the Growth Management Act, by providing for special property tax valuations for eligible multi-family housing in targeted urban areas; and WHEREAS, Chapter 84.14 RCW, as amended, further authorized cities with a population of at least thirty thousand(30,000) to adopt procedures to implement the special property tax valuations; and WHEREAS, on December 15, 2003, the Renton City Council held a public hearing to receive public comments regarding proposed designated"residential targeted areas" in the Center Downtown, Urban Center North and Center Village Comprehensive Plan designations for the purpose of allowing a limited property tax exemption for qualifying multi-family housing, pursuant to RCW 84.14.040(2); and WHEREAS, on December 22, 2003, the Renton City Council adopted ordinance 5061 (codified in RMC 4-1-220)to establish a property tax exemption incentive to encourage multi- family housing development in designated residential targeted areas; and 1 ORDINANCE NO. WHEREAS,the City desires to modify the Urban Center North District 1 designated "residential targeted area"to help stimulate new construction of multi-family housing in the adjacent Commercial Office Residential 3 zone, thereby reducing development pressures on single-family residential neighborhoods and increasing housing opportunities; and WHEREAS,on June 27, 2005, the Renton City Council held a public hearing to receive public comments regarding the proposed modification to the Urban Center North District 1 designated "residential targeted area"to add the adjacent Commercial Office Residential 3 zone; and WHEREAS, the Renton City Council desires to modify the project eligibility requirements to improve clarity and intent; NOW, THEREFORE,THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. Subsection 4-1-220D, Project Eligibility, of Section 4-1-220, Property Tax Exemption for Multi-Family Housing in Residential Targeted Areas, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 entitled"Code of General Ordinances of the City of Renton, Washington"is hereby amended to read as follows: To qualify for exemption from property taxation under this Section, the project must satisfy all of the following requirements: 1. Location: The property must be located in one of the following-designated "residential targeted areas" listed below in D1a,Dlb or Dlc of this Section. If a part of any legal lot is within a residential targeted area, then the entire lot shall be deemed to lie within the residential targeted area. 2 ORDINANCE NO. *040 a. Highlands: Within the Center Village Comprehensive Plan designation and in one of the following: the Center Village (CV) zone, the Residential Multi-Family (RM-F) zone, or the Residential 10 dwelling units/acre(R- 10) zone; or b. Downtown: In the Center Downtown (CD)zone,Residential Multi- Family Urban Center(RM-U) zone, or Residential Multi-Family Traditional (RM-T) zone_or c. South Lake Washington: In the Urban Center North District 1 (UC- N1) zone or Commercial Office Residential (COR 3) zone. . If a part of any legal lot is within a residential targeted area, then the entire lot shall be deemed to lie within the residential targeted area. 2. Size and Structure: a. If the project is located in the Residential Multi-Family Urban Center (RM-U)zone or Residential Multi-Family Traditional (RM-T)zone or within the Center Village Comprehensive Plan designation and in either the Residential Multi-Family (RM-F)zone or the Residential 10 dwelling units/acre (R-10) zone, the project must (i)consist of a minimum total of ten (10) new dwelling units of multi-family housing, and (ii)be located within a new residential structure(s) or a new mixed-use development as allowed by the RMC for the specific zone. At least fifty (50)percent of the space within the project shall be intended for permanent residential occupancy. 3 ORDINANCE NO. b. If the project is located in the Center Downtown (CD)zone or-Urban Center North District 1 (UC-N1)zone, or Commercial Office Residential 3 (COR 3) zone, or within the Center Village Comprehensive Plan designation and in the Center Village (CV) zone, the project must(i) consist of a minimum total of thirty (30)new dwelling units of multi- family housing and(ii) be located in a new mixed-use development, unless otherwise waived by the Administrator. If the Administrator waives the mixed-use development requirement, the multi-family housing must be located in a new residential structure(s). At least fifty(50) percent of the space within the project shall be intended for permanent residential occupancy. 3. Special Design Regulations for Projects Located in the Center Village Comprehensive Plan Designation or the Commercial Office Residential 3 (COR 3) Zone: a. If the project is located in the Center Village (CV)zone or Residential Multi-Family (RM-F)zone within the Center Village Comprehensive Plan designation or in the Commercial Office Residential 3 (COR 3) zone, the project must also comply with the design standards and guidelines in RMC 4-3-100 for District 'C',even though the project is not located in the Urban Center North Comprehensive Plan designation, unless otherwise waived by the Administrator. 4 , ORDINANCE NO. `' b. If the project is located in the Residential 10 dwelling units/acre (R- 10) zone within the Center Village Comprehensive Plan designation, the project must also comply with the design standards and guidelines in RMC 4-3-100 for District B', even though the project is not located in the Residential Multi-Family Traditional (RM-T) zone, unless otherwise waived by the Administrator. If the project is located in the Center Village Residential Bonus District described in RMC 4-3-095, the project must also comply with the provisions therein. 4. Exception for Existing Residential Structure: In the case of an existing occupied residential structure that is proposed for demolition and redevelopment as new multi-family housing, the project must provide as a minimum number of dwelling units in the new multi-family housing project, the greater of: a. replace the existing number of dwelling units and, unless the existing residential rental structure was vacant for twelve (12)months or more prior to demolition, provide for a minimum of four(4) additional dwelling units in the new multi-family housing project. or b. provide the number of dwelling units otherwise required in RMC 4- 1-220D2. An existing residential rental structure that has been vacant b 5. Completion Deadline: The project must be completed within three (3) years from the date of approval of the contract by the City Council as 5 ORDINANCE NO. •..• provided in RMC 4-1-220F2 or by any extended deadline granted by the Administrator as provided in RMC 4-1-220I. SECTION II. Effective Date. This ordinance shall be effective upon its passage, approval, and five (5) days after its publication. PASSED BY THE CITY COUNCIL this day of , 2005. Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this day of , 2005. Kathy Keolker-Wheeler, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: 6 From: Mark Santos-Johnson To: Walton, Bonnie Date: 6/8/2005 11:54:35 AM Subject: Draft Public Hearing Notice for MFHPTE Modification Hi Bonnie, Per our conversation on Tuesday, attached please find a draft public hearing notice for the proposed June 27 public hearing for the modification to the targeted residential area for the Multi-Family Housing Property Tax Exemption (MFHPTE). For your reference, I have included the following excerpt from RCW 84.14.040 related to the public hearing requirements: (3)The governing authority shall give notice of a hearing held under this chapter by publication of the notice once each week for two consecutive weeks, not less than seven days, nor more than thirty days before the date of the hearing in a paper having a general circulation in the city where the proposed residential targeted area is located. The notice must state the time, date, place, and purpose of the hearing and generally identify the area proposed to be designated as a residential targeted area. FYI, the public hearing notices were published last time on 12/5/03 and 12/8/03, a Friday and a Monday. Please let me know if you have any questions. Otherwise, I appreciate your efforts to proceed (subject to the City Council's action at the 6/13/05 meeting to set the public hearing for 6/27)with publishing the public hearing notice twice, once on 6/20/05 and the other time sometime next week. At your convenience, please provide me with an electronic and paper copy of the final public hearing notice for our records. Thanks. Mark ext 6584 CC: Pietsch, Alexander; Wolters, Ben