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HomeMy WebLinkAbout60% Petition (per Agenda Bill) - 6/13/2000 � 1 Cl�' OF RENTON COUNCIL AGEND�'ILL AI N: • For Agenda of: DepvD��iBoara.. Economic Development, Neighborhoods & Strategic Planning s�fr con��c...... Don Erickson Agenda Status Consent.............. X Subject: Public Hearing.. X PROPOSED ANNEXATION: corresponae��e.. Ordinance............. NA Merlino Annexation - 60% Petition to Annex Public Resolution............ Hearing Old Business........ NA E�ibits: New Business....... Issue paper and maps showing recommended annexation Study Sessions...... Information......... area; financial worksheet Recommended Action: Approvals: Set 60% Petition to Annex and pre-zoning public hearing for Legal Dept......... X Finance Dept...... July 10, 2000 ottier............... Fiscal Impact: Expenditure Required... jv,� Transfer/Amendment....... Amount Budgeted.......... j�jp Revenue Generated......... Total Project Budget NA City Share Total Project.. SUMMARY OF ACTION: The City is receipt of a 60% Petition to Annex for approximately 46.97 acres in Renton's Potential Annexation Area south of SR 900, west of the Sunpoint Townhomes, southeast of Empire Estates, and north of the Burlington Northern - Sante Fe Railroad right-of-way on the north side of the Black River Riparian Open Space Conservation Area and P-1 Detention Pond. State law requires the City to hold a public hearing on the 60% Petition to consider whether or not to accept it. Proposed revisions to the existing pre-zoning on the annexation site would also be considered at this time. STAFF RECOMMENDATION: Council establish a public hearing date of July 10, 2000 to consider the 60% Petition to Annex for the Merlino Annexation and pre-zoning for a portion of it to RM-I Zone. C:\WINNT\Profiles\derickson\Personal\60% Petition Hearing Agenda Bill.doc/ 'trr � [�R�4��' CITY OF RENTON ECONOMIC DEVELOPMENT, NEIGHBORHOODS, AND STRATEGIC PLANI�TING MEMORANDUM DATE: June 19, 2000 TO: Randy Corman, President Members of the Renton City Council VIA: ,��,�Jesse Tanner, Mayor �J f,�/ FROM: Sue Carlson, Administrator ,9'— STAFF CONTACT: Don Erickson (Ext. 6581) SUBJECT: Proposed Merlino Annexation- 60% Petition to Annex Public Hearing ISSUE: A 60% Petition to Annex has been submitted and certified as sufficient for 40.64 acres adjacent to existing city limits in the residual portion of Renton's West Hill PAA along the south side of SR-900 in the western portion of the city (see Figure 1). Pursuant to RCW 35A.14.130 the City Council must hold a public hearing before accepting a 60% petition to annex. RECOMMENDATION: • Council accept the 60% Petition to Annex 46.97 acres including 40.64 acres of privately held property the owners of which will accept their pro-rata share of the City's bonded indebtedness and a 6.33 acre segment of Martin Luther King, Jr. Way (SR-900) right-of-way that abuts the eastern portion of the annexation site on its north; and, • Council authorize the Administration to submit the Notice of Intention to Annex package for the revised 46.97 acre Merlino Annexation to the Boundary Review Board for King County for their review. BACKGROUND SUMMARY: On May 22, 2000 the City Council held a Public Meeting with proponents of a 40.64 acre site on the south side of SR-900 (Martin Luther King, Jr. Way) abutting the City limits to the west, south and east. At that meeting, the Council chose to expand the annexation boundaries by approximately 6.33 acres to include the SR-900 highway right-of-way on the north side of the eastern third portion of the subject annexation. The Council also required acceptance of City of Renton zoning designations consistent with the Comprehensive Plan and assumption of a proportional share of the City's existing bonded indebtedness. The subject annexation area was pre-zoned in 1997 with IH (Heavy Industrial) zoning on the western two thirds of the site and CA (Commercial Arterial) zoning on the eastern third of the site. June 19, 2000 � Page 2 '�rr �"� The first of two required public hearings on new zoning for a portion of the annexation area was held by the Planning Commission on May 17, 2000. This hearing was for a new Comp Plan land use designation from EA-V to RM-I for the eastern 17.54 acres of the subject site with a concurrent pre- zone designation to RM-I Zone, as well. Following Council's authorization at the 10% public meeting on May 22, 2000 a 60% Petition to Annex was circulated. It was returned to the City on June 13, 2000. The King County Department of Assessments is expected to certify the 60% Petition as sufficient according to the requirements of the Revised Code of Washington in late June, 2000. King County staff did not indicate the percentage of assessed value represented by valid signatures. However, an informal tally by staff indicates that the proponent's signatures represent 100% of the assessed value of all properties within the proposed annexation area. 1. Location: The subject site is located west of Rainier Avenue S and south of SR-900 in Renton's Potential Annexation Area (see Figures 1 and 2). The site is east of Monster Road/68`'' Avenue and north of the BNSF RR right-of-way. It is also north of the Black River Riparian Forest conservation area, a wildlife habitat for a number of species including Great Blue Heron. The boundaries of the proposed annexation encompass the unimproved South 140`h Street/Beacon Coal Mine Road on the south, the existing City of Renton boundary on the west, the unimproved South 137't' Street right-of-way for approximately 1,975 feet on the north (south of Empire Estates), then north to Martin Luther King Jr. Way on the north to the east side of 8151 Avenue S, if extended. (see Figure 2). 2. Assessed Value: The assessed value within the proposed annexation area is currently approximately $1,229,000 or about $30,241 per acre. This reflects the fact that little of the site is currently developed with major improvements. If the proposed concurrent rezone is successful, after development of the multi-family portion, the assessed value is anticipated to increase to around $36,272,000. 3. Natural Features: The site slopes moderately to the southeast through most of its width (see Figure 3). The western two thirds of the site is industrially zoned and the western half of this area is a rock quarry and subsequently has been terraced. The eastern two thirds of the site is heavily vegetated with deciduous trees. An intermittent drainage stream has been identified on the western half of the site, south of Empire Estates. 4. Existing Land Uses: Under King County zoning Parcels 7 (north of unimproved 139`'' Street), and Parcels 10, 11, 12, and 25B (south of unimproved 139`h Street) are currently zoned Industrial. The remaining portion of the annexation site is zoned Office (see Figure 2). The western industrially zoned portion of the site is a working rock quarry. The residual portion of the site is currently an undeveloped, sloped green belt (see Figure 1). 5. Comprehensive Plan: Renton's Comprehensive Plan designates the area within the annexation boundaries as Employment Area — Industrial and Employment Area - Commercial. These land use designations allow the IL, IM and IH zones in the former and the CA Zone in the latter designation. 6. Existing Zoning: King County zoning within the proposed annexation boundary is Industrial (I) Zone (Parcels 7, 10, 11, 12, and 25 B) and Office (0) Zone on the remainder (see Figure 2). Renton has pre-zoned this same area Industrial Heavy and Commercial Arterial (see Figure 4). A proposal is currently before the City to amend the Comprehensive Plan Land Use Map designation for the 17.54 acres of the site pre-zoned in 1997 to Commercial Arterial (CA) Zone. If successful, June 19, 2000 ' Page 3 � � this area would be redesignated Residential Multi-family — Infill and have a concurrent pre-zone to RM-I Zone. 7. Public Services: All responding City departments and divisions indicated that service to the area would represent a logical extension of their respective functions and systems. a) Water: According to the Skyway Coordinated Water System Plan (1999 Update) approved by King County, Renton is designated as the legal provider of water. Currently water service to the area is provided by Seattle. The development of the site will require the extension of City of Renton water mains to provide fire protection and domestic water service to residents. These costs would be born by the developer. b) Sanitary Sewer: Sewers are not currently available within the annexation boundaries. With annexation, access to the City's wastewater system would become available, subject to extension of existing mains by developers or, by ULID. System capacity is currently available to serve the proposed annexation area. c) Surface Water: The site drains to the south into the Black River Area of the Green River Drainage Basin and specifically the P-1 Channel Detention Pond. City staff from the Utilities Division of the PBPW Department note that the existing drainage patterns of the site will have to be maintained. Future development of the site will have to comply with City of Renton surface water code requirements for the control of the site's quantity and quality of runoff, when the site is developed. The site is currently in King County where were it to develop the 1998 King County Surface Water Design Manual level-2 flow control standard would apply. d) Parks: Community Services notes that additional development of this area with potentially up to 260 new dwelling units within the City (approximately 175 within the annexation area), would further add to the shortfall of neighborhood parks in this planning area. Although the proposed zoning (RM-I) for a portion of the annexation site and an abutting 8 acre site would allow up to 20 du/ac, the applicant has agreed to enter into a development agreement with the City that would limit the total number of units on both parcels to 260 units. A large regional outdoor space, the Black River Reparian Conservation Area lies to the south of the annexation site but has limited accessibility. Also, it is currently limited to passive activities such as walking and bird watching. In fact, given the sensitivity of the site as a major heron nesting habitat, it has been suggested by some that the eastern portions of the annexation site proposed for future residential development should be fenced off north of the BNSF Railroad right-of-way. A pro rata share of the costs of developing both a neighborhood and community park, including their acquisition and development costs, has been included in the fiscal impact analysis. However, because Martin Luther King, Jr. Way (SR -900) is a barrier cutting future residents off from the Earlington neighborhood to the north, the Parks Division has suggested that some of the estimated Parks Mitigation Fee of$92,173 be used for the development of a neighborhood park within the annexation area. Current provisions allow a credit for up to 33% of the impact fee for on-site active recreation areas and facilities that meet the needs and standards established in the Ciry's Park and Recreation Plan. e) Fire: The Fire Department has raised no issues with this annexation. Obviously, at the time of future development issues pertaining to accessibility for emergency vehicles and fire flows/duration, will have to be addressed. June 19, 2000 � Page 4 ,,,�,,, �.r fj Transportation: The Transportation Division noted that the annexation site currently does not meet Ciry standards in terms of curbs, gutters, sidewalks and street lighting where it abuts Martin Luther King, Jr. Way and notes that the cost of these street improvements would be borne by new development or property owners. In addition, they note that future internal streets, whether public or private, will have to meet City requirements and be paid for by new development or property owners. Public Works Facilities noted that because Martin Luther King, Jr. Way is a state route, its surfacing would be undertaken by the state. As a consequence, maintenance costs for this route are considered to be less than they might otherwise be. These costs are noted on the Roads Maintenance Worksheet. g) Development Services: Current Planning noted that the site is located within the City's water and sewer service area and that its impacts on emergency services, transportation and park facilities would have to be assessed at the time of site plan and environmental review when a specific development proposal is before the City. 8. AdditionalIssues: All of the Merlino annexation area is located within the Renton School District. The Renton School District currently does not collect a school impact fee relying instead on local bond issues for most new capital improvements in the district. 9. Fiscal Impact Analysis: The following tables identify General Fund revenues and costs associated with annexing the subject area as it is currently used, and includes estimates of the annual fiscal impact of full development under proposed zoning at some undetermined point in the future. Environmental considerations could in effect result in a lessor development. GENERAL FUND REVENUE SUMMARY Revenue Source Current Develo ment Full Develo ment Re ular Pro e Tax Lev $4,177.00 $123,278.00 State-Shared Revenues 00.00 14,873.95 Sales Tax Revenue NA NA Miscellaneous Revenues 00.00 39,063.70 Total $4,177.00 $177,215.30 GENERAL FUND COST SUMMARY Cit Services Current Develo ment Full Develo ment Contracted Services $0 $4,801.62 Road Maintenance 0 $2,193.00 Police Protection 0 $97,370.00 Parks Maintenance 0 $6,779.50 Court, Le al and Other 0 $23,186.80 Fire 0 $80,384.85 On oin costs $0.00 $214,715.77 Sur lus (Deficit) $4,177.00 ($37,500.4'n At the current level of development, the annexation would create an annual surplus of approximately $4,177 from the current property tax levy. At full development(10 years), however, costs are projected to exceed revenues by approximately $37,500 per year until more substantial development occurs on the industrially pre-zoned 23.1 acre portion of the site. If the City could find land for a new June 19, 2000 � ' Page 5 �, r'rr` neighborhood and community park there would be a one-time cost to the city of approximately $101,430. This would cover the City's share of the acquisition and development costs of a new neighborhood park. If an area can be found for its development, such a park would serve the residents the 175 units of new multi-family development anticipated on the 17.54 acre portion of the annexation site. This cost is above what would be generated from the Parks Mitigation Fee of an estimated $372.31 per new multi-family dwelling unit. Annexation and subsequent development of the subject area would also increase costs for the City's Waterworks Utility. The Waterworks Enterprise Fund, which accounts for the operation and capital improvement programs for the Water, Wastewater and Surface Water utilities, was not included in this analysis. Surface Water Utility rates would generate approximately $16,317 per year in addition to a one-time charge of$385 per new multi-family unit (approximately $100,100) for public storm systems. There would also be a one-time charge of$510 per multi-family unit (approximately $132,600) for water improvement systems. These utilities operate as self-funding enterprises. Therefore, costs and revenues for these utilities were left off this General Fund analysis (see attached fiscal impact work sheet, Appendix "A"). Costs for sanitary sewer facilities and services are anticipated to be covered by revenues from new customers. POLICY ANALYSIS: (Pursuant to Council Resolution 2429) l. Consistency with the Comprehensive Plan: The annexation policies generally support the proposed Merlino Annexation. The subject site is within Renton's Potential Annexation Area and is subject to development pressure for residential uses at urban densities and commercial uses. Policy LU-378 encourages annexation of all territory within the City's PAA. It also is consistent with Policy LU-379 regarding encouraging annexations where there is an availability of infrastructure and services to support urban densities. The proposed zoning/pre-zoning for the site would allow up to 10 du acre, or +170 units, which is consistent with other apartment developments in the area. The City would be the major provider of urban infrastructure and services (Policy LU-383). The subject annexation is also consistent with other Comp Plan policies such as Policies LU-380 and LU-388 regarding contiguous boundaries with the City and annexing lands available for urbanization under the County's comprehensive plan, zoning and subdivision regulations. 2. Consistency with Boundary Review Board Objectives: (fi�om RCW 36.93.180) The following is a discussion as to how the subject annexation proposal complies or is consistent with the Boundary Review Board's objectives. These are discussed individually below: a) Preservation of natural neighborhoods and communities; The proposed boundaries, of the Merlino Annexation do not take away from existing neighborhoods or communities and should in fact strengthen the existing multi-family area on the south side of SR-900 by connecting Empire Estates with a new multi-family development to its east. The end result will be a strip of multi-family development along the south side of highway overlooking the Valley to the south. b) Use of physical boundaries, including but not limited to bodies of water, highways, and land contours; The subject site is bounded on the south by S 140`� Street/Beacon Coal Mine Road, an unimproved right-of-way, paralleling the Burlington Northern/Santa Fe Railroad immediately to its south. The eastern third of the site abuts Martin Luther King Jr. Way (SR-900) a state highway, on its north. On June 19, 2000 � Page 6 �.r "/ both its south and east the annexation site abuts the city and a majority of its western boundary also abuts the current city boundary. c) Creation and preservation of logical service areas: The City is the logical service provider under GMA for this area and this is acknowledged by Countywide Planning Policies and the King County Comprehensive Plan. It is also acknowledged in Skyway Coordinated Water System Plan approved by King County. d) Prevention of abnormally irregular boundaries The proposed boundaries for the Merlino annexation are not irregular. The annexation site abuts the city on three of its four edges and fills in most of the remaining Potential Annexation Area (PAA) in this portion of the city. A remaining piece of the PAA in this area was intentionally left out (Empire Estates) since the property was on the market and could have potentially changed hands in the midst of the annexation process. As it is already developed it was also not seen as a critical piece in this annexation. e) Discouragement of multiple incorporations of small cities and encouragement of incorporations of cities in excess of ten thousand population in heavily populated urban areas. Whereas, it is unclear whether West Hill will eventually incorporate or be annexed by Renton or another municipality, the area on the south side of SR-900 really does not relate to that on its north side and is functionally independent. � Dissolution of inactive special purpose districts; There are no inactive special purpose districts in the area. Renton will become the service provider for sewer and water and emergency services. g) Adjustnaent of impractical boundaries; The subject annexation will improve on the existing boundaries in the immediate area. It will fill in most of the remaining Potential Annexation Area in this portion of the city creating a more natural looking and reasonable boundaries in terms of service areas and the like. g) Incorporation as cities or towns or annexation to cities or towns of unincorporated areas which are urban in character; and, As noted above, this area is within Renton's designated Potential Annexation Area and is designated under King County's Countywide Planning Policies and Comprehensive Plan for urban development, since it is within the UGB. h) Protection of agricultural and rural lands which are designated for long term productive agricultural and resource use by a comprehensive plan adopted by the county legislative authority. Not applicable. CONCLUSION: The proposed annexation is consistent with both the City's Comprehensive Plan and the Boundary Review Board's objectives, as stated in RCW 36.93.180. It will, however, have a fiscal impact upon the City's general fund if city-wide "per capita" service costs are applied to the anticipated 390 new residents that will live here. Under existing development there would be a modest positive benefit of approximately $3,725 per year to the City and, under full development under this scenario assuming new multi-family units valued at an average price of$132,400 each (including land), costs to the City , June 19, 2000 � Page 7 `�r "'�" would exceed revenues by approximately $36,464 per year. Assuming the development of new parks to City standards there would also need to be a one-time capital improvement cost of$83,677, which includes land acquisition. With the eventual redevelopment of the rock quarry site in a few years with industrial or office type uses it is anticipated that revenues would again exceed costs to the city. Following the Public Hearing, the Council may accept or reject the annexation proposal. If the Council accepts the 60% Petition to Annex, a Notice of Intention package will be �led with the Boundary Review Board of King County. The Board has a forty-�ve day appeal period during which groups of residents or property owners, or governmental agencies may request review. During this forty-five day period, the second zoning public hearing will be scheduled with the Council. Without the Board's review, the annexation process could be completed by the end of September or first part of October. If a review by the Boundary Review Board is requested, a public hearing will be held which could add three or four months to the process. Attachments 60%issuepaper.doc\ Documentl/ - � � - , � - - . _.^ . � , . }. _ .. i, A . `� i . ' �.,... , � .. ... '. '"_r, , ._. ._�...i"b _ ., .�,a.: ti E , 'y�� . , r L, � ' � �� .. .. . :�I.. . . - � ' ._ i�* .� _. 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',�, �,,, �. . .�� �� >:.;;:•:;:.:;�::�: ....• � . � ' . . 11 �� • - ��������� . . , . . = ��� • � . � ' � � � • � � - �.� � � . , . . � �' EXHIBIT A Proposed Merlino Annexation Units Po ulation AV Existin dev. 0 0 $1,229,000 Full dev. 260 455 $36,272,000 Assumptions: 1.75 persons/household $132,400 AV/new unit(includes 17.54 acres @ $108,950/acre AV) Current total assessed value includes 23.10 acres industrial/office @ $47,056/acre ......... ...... Future total assessed value includes $23.10 acres @ $80,000/acre AV :Rev�p[ies:::�::::::::::; Total revenues Existin Full Rate Existing:s;:;':`::;;; ��;:t7�;Q(l Regular le $4,177 $123,278 3.3987 Full :::::::::$;��7;21;�:30: Excess lev $350 $10,334 0.2849 State shared revenues Rate per ca ) Existin Full Li uortax $3.02 $0.00 $1,374.10 Li uor Board rofits $6.00 $0.00 $2,730.00 Fuel tax- roads $15.68 $0.00 $7,134.40 Fuel tax-arterials $7.33 $0.00 $3,335.15 MVET $0.00 $0.00 $0.00 Cam er excise $0.30 $0.00 $136.50 Criminal justice $0.36 $0.00 $163.80 Total $0.00 $14,873.95 Miscellaneous revenues Rate Existin Full Real estate excise* $27.01 $0.00 $12,289.55 Utilit tax** $73.00 $0.00 $18,980.00 Fines &forfeits'` $17.13 $0.00 $7,794.15 Total $0.00 $39,063.70 * Per capita ** Per housing unit- based on $1,220 annual utility billing ........... ................ 'Cos�s:::::::::::::::::::::: Total ongoing costs Per ca ita Existin Full Existing:::;:`:`:';';::;:;:':`;$(I;OD: Contracted Services Full::::::::::$21�,7;i�:7�: Alcohol $0.23 $0.00 $103.29 Public Defender $3.13 $0.00 $1,425.97 Jail $7.19 $0.00 $3,272.36 Subtotal $0.00 $4,801.62 Court/le al/admin. $50.96 $0.00 $23,186.80 Parks maintenance'` $14.90 $0.00 $6,779.50 Police $214.00 $0.00 $97,370.00 Road maintenance** $4.82 $0.00 $2,193 Fire $176.67 $0.00 $80,384.85 Total $0.00 $214,715.77 * See Sheet Parks FIA "` See Sheet Roads FIA Net fiscal impact Existing;;;:;;;:::��:$4;9fi7':#�0. Ful I::;::;�:::::�37;�OQ;47: :Qrie=tir�n�;cQ�t�: Parks acquisit & develop - Mitigation Fee (Sheet Parks FI $101,429.90 Other one-time costs: $0.00 ................. Total one-time costs:::::::::::$'�Q1:;42�;9.Q`