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HomeMy WebLinkAbout03-03-2025 Agenda * City Council CITY OF Regular Meeting AjJJ31JJj March 3, 2025 - 7:00 PM City Hall Council Chambers WASHINGTON AGENDA CALL TO ORDER LAND ACKNOWLEDGEMENT We would like to acknowledge the Federally Recognized Muckleshoot Indian Tribe, the ancestral keepers of the land we are gathered on today. We thank them for their immense contributions to our state and local history, culture, economy, and identity as Washingtonians. PUBLIC PARTICIPATION A. The Auburn City Council Meeting scheduled for Monday, March 3, 2025 at 7:00 p.m. will be held in person and virtually. Virtual Participation Link: To view the meeting virtually please click the below link, or call into the meeting at the phone number listed below. The link to the Virtual Meeting is: https://www.voutube.com/user/watchauburn/live/?nomobile=1 To listen to the meeting by phone or Zoom, please call the number below or click the link: Telephone: 253 215 8782 Toll Free: 877 853 5257 Zoom: https://us06web.zoom.us/i/87896123391 PLEDGE OF ALLEGIANCE ROLL CALL ANNOUNCEMENTS, MAYOR'S PROCLAMATIONS, AND PRESENTATIONS AGENDA MODIFICATIONS AUDIENCE PARTICIPATION This is the place on the agenda where the public is invited to speak to the City Council on any issue. A. The public can participate in-person or submit written comments in advance. Participants can submit written comments via mail, fax, or email. All written comments must be received prior to 5:00 p.m. on the day of the scheduled meeting and must be 350 words or less. Page 1 of 66 Please mail written comments to: City of Auburn Attn: Shawn Campbell, City Clerk 25 W Main St Auburn, WA 98001 Please fax written comments to: Attn: Shawn Campbell, City Clerk Fax number: 253-804-3116 Email written comments to: publiccomment(c�auburnwa.gov If an individual requires accommodation to allow for remote oral comment because of a difficulty attending a meeting of the governing body, the City requests notice of the need for accommodation by 5:00 p.m. on the day of the scheduled meeting. Participants can request accommodation to be able to provide a remote oral comment by contacting the City Clerk's Office in person, by phone (253) 931-3039, or by email (publiccommentnauburnwa.aov). CORRESPONDENCE CONSENT AGENDA All matters listed on the Consent Agenda are considered by the City Council to be routine and will be enacted by one motion in the form listed. A. Minutes from the February 18, 2025, City Council Meeting B. Minutes from the February 24, 2025, Study Session Meeting C. Claims Vouchers (Thomas) Claims voucher list dated February 26, 2025 which includes voucher numbers 479056 through voucher 479149, in the amount of $4,256,031.31, four electronic fund transfers in the amount of $6,768.79 and two wire transfers in the amount of $712,185.29 D. Payroll Voucher (Thomas) Payroll check numbers 539655 through 539657 in the amount of$685,659.31, electronic deposit transmissions in the amount of$2,601,823.16, also a special payroll for a severance payment with an electronic deposit transmission in the amount of $14,427.11, for a grand total of $3,301,909.58 for the period covering February 13, 2025 to February 26, 2025 (RECOMMENDED ACTION: Move to approve the Consent Agenda.) UNFINISHED BUSINESS NEW BUSINESS RESOLUTIONS A. Resolution No. 5804 (Krum) A Resolution authorizing the duly-appointed administering agency for the South King Housing and Homelessness Partners to execute all documents necessary to enter into Page 2 of 66 agreements for the funding of Affordable Housing Projects, as recommended by the SKHHP Executive Board, utilizing funds contributed by the City to the SKHHP Housing Capital Fund (RECOMMENDED ACTION: Move to adopt Resolution No. 5804.) B. Resolution No. 5815 (Krum) A Resolution relating to the endorsement of the Kent Valley Economic Development Air and Space Manufacturing Roundtable (RECOMMENDED ACTION: Move to adopt Resolution No. 5815.) MAYOR AND COUNCILMEMBER REPORTS At this time the Mayor and City Council may report on significant items associated with their appointed positions on federal, state, regional and local organizations. A. From the Council B. From the Mayor ADJOURNMENT Agendas and minutes are available to the public at the City Clerk's Office and on the City website (http://www.auburnwa.gov). Page 3 of 66 CITY OF J\I.JBU1R.ts4 AGENDA BILL APPROVAL FORM WASHINGGTTON Agenda Subject: Meeting Date: Minutes from the February 18, 2025, City Council Meeting March 3, 2025 Department: Attachments: Budget Impact: City Council 02-18-2025 Minutes Administrative Recommendation: Background for Motion: Background Summary: Councilmember: Staff: Page 4 of 66 � City Council CITY OF * ��• Regular Meeting j\UBIjRN February 18, 2025 - 7:00 PM City Hall Council Chambers WASHINGTON MINUTES CALL TO ORDER Mayor Nancy Backus called the meeting to order at 7:00 p.m. in the Council Chambers of Auburn City Hall, 25 West Main Street. LAND ACKNOWLEDGEMENT Mayor Backus acknowledged the Federally Recognized Muckleshoot Indian Tribe as the ancestral keepers of the land we are gathered on today. PUBLIC PARTICIPATION The City Council Meeting was held in person and virtually. PLEDGE OF ALLEGIANCE Mayor Backus led those in attendance in the Pledge of Allegiance. ROLL CALL Councilmembers present: Deputy Mayor Cheryl Rakes, Hanan Amer, Kate Baldwin, Clinton Taylor, Tracy Taylor, and Yolanda Trout-Manuel. Councilmember Larry Brown was excused. Mayor Nancy Backus and the following staff members present included: Senior City Staff Attorney Taryn Jones, Chief of Police Mark Caillier, Director of Community Development Jason Krum, Director of Finance Jamie Thomas, and City Clerk Shawn Campbell. ANNOUNCEMENTS, MAYOR'S PROCLAMATIONS, AND PRESENTATIONS Mayor Backus read a statement from Councilmember Larry Brown announcing he is resigning from his role as a City of Auburn Councilmember. Page 5 of 66 Mayor Backus spoke about Councilmember Brown's history of his time on the Council and outside organizations. She announced that the Council will invoke Section 13 of Council Rules of Procedure and begin the process of filling the vacant position. APPOINTMENTS A. Auburn Lodging Tax Advisory Committee City Council to approve the reappointment of Elizabeth Burton to the Auburn Lodging Tax Advisory Committee for a three-year term expiring December 31, 2027 Deputy Mayor Rakes moved and Councilmember Trout-Manuel seconded to approve the reappointment of Elizabeth Burton to the Auburn Lodging Tax Advisory Committee for a three-year term expiring December 31, 2027. MOTION CARRIED UNANIMOUSLY. 6-0 B. Business Improvement Area (BIA) Committee City Council to approve the appointments of Rachel Perry and Trevor Schneckloth to the BIA Committee for a three-year term expiring December 31, 2027 Deputy Mayor Rakes moved and Councilmember Amer seconded to approve the appointments of Rachel Perry and Trevor Schneckloth to the BIA Committee for a three-year term expiring December 31, 2027. MOTION CARRIED UNANIMOUSLY. 6-0 C. Cemetery Board City Council to approve the appointment of Bridget Jones to the Cemetery Board for a three-year term expiring December 31, 2027 Councilmember Baldwin moved and Councilmember Amer seconded to approve the appointment of Bridget Jones to the Cemetery Board for a three- year term expiring December 31, 2027. MOTION CARRIED UNANIMOUSLY. 6-0 D. Parks & Recreation Board City Council to approve the appointment of John Boatman to the Parks & Recreation Board for a three-year term expiring December 31, 2027 Councilmember Baldwin moved and Councilmember Trout-Manuel seconded to approve the appointment of John Boatman to the Parks & Recreation Board for a three-year term expiring December 31, 2027. MOTION CARRIED UNANIMOUSLY. 6-0 Page 6 of 66 AGENDA MODIFICATIONS There were no modifications to the agenda. AUDIENCE PARTICIPATION Written Comments: April Lewis, Auburn WA April provided comments regarding their positive experiences working with the Auburn Valley Humane Society (AVHS), and the management/staff. Linnea Thorpe Linnea expressed their concerns regarding AVHS and the safety of staff. In-Person Comments: Elder Montague, Auburn WA Elder requested a Resolution to recognize Spirit Fest. Josie Hunter, Auburn WA Josie expressed concerns about federal funding. Virginia Haugen, Auburn, WA Virginia expressed concerns regarding Resolution No. 5811, the Mayor's salary, the cost of the new Auburn Theater, and Ordinance No. 6968. CORRESPONDENCE There was no correspondence for Council to review. CONSENT AGENDA A. Minutes from the February 3, 2025, City Council Meeting B. Minutes of the February 10, 2025, Study Session Meeting C. Claims Vouchers (Thomas) Claims voucher list dated February 12, 2025 which includes voucher numbers 478948 through voucher 478948, in the amount of$11,741 .00 Claims voucher list dated February 12, 2025 which includes voucher numbers 478949 through voucher 479055, in the amount of$3,474,771.99, 20 electronic fund transfers in the amount of $31,561.30 and two wire transfers in the amount of $809,995.94 Page 7 of 66 D. Payroll Voucher (Thomas) Payroll check numbers 539647 through 539654 in the amount of$108,068.21, electronic deposit transmissions in the amount of$2,869,056.90 for a grand total of $2,977,125.11 for the period covering January 30, 2025, to February 12, 2025 Deputy Mayor Rakes moved and Councilmember C. Taylor seconded to approve the consent agenda. MOTION CARRIED UNANIMOUSLY. 6-0 UNFINISHED BUSINESS A. Council Rules of Procedure Ad Hoc Committee Selection Deputy Mayor Rakes reminded Council that Councilmembers Baldwin and C. Taylor expressed interest in being on the Council Rules of Procedure Ad Hoc Committee. Councilmember Baldwin moved to appoint herself and Councilmember C. Taylor to the Council Rules of Procedure Ad Hoc Committee and Councilmember Trout-Manuel seconded. Councilmember T. Taylor moved to amend the motion to include herself and Councilmember Amer seconded. Council discussed the purpose of the Ad Hoc Committee. Council voted on the amendment. Motion failed 3-3. Council voted on main motion. Motion carried 4-2; Councilmembers Amer and T. Taylor voted no. Councilmembers Baldwin and C. Taylor will serve on the Council Rules of Procedure Ad Hoc Committee. NEW BUSINESS There was no new business. Page 8 of 66 ORDINANCES A. Ordinance No. 6963 (Thomas) An Ordinance amending Sections 3.53.120, 3.54.030, 3.54.060, 3.54.070, 3.54.080, 3.54.140, 3.54.155, and 3.54.210 of the Auburn City Code (ACC) relating to the imposition and administration of the City Business & Occupation (B&O) Tax Councilmember Baldwin moved and Deputy Mayor Rakes seconded to approve Ordinance No. 6963. MOTION CARRIED UNANIMOUSLY. 6-0 B. Ordinance No. 6964 (Thomas) An Ordinance amending Auburn City Code Chapter 3.41 related to the Administration of City's Solid Waste Garbage Utility Tax and Chapter 3.62 Administrative City Code related to Utilities, Admissions, and Gambling Tax Councilmember Baldwin moved and Councilmember C. Taylor seconded to approve Ordinance No. 6964. MOTION CARRIED UNANIMOUSLY. 6-0 C. Ordinance No. 6967 (Thomas) An Ordinance amending Auburn City Code (ACC) Chapter 3.52 related to the Administration of City Admission Tax Councilmember Baldwin moved and Councilmember C. Taylor seconded to approve Ordinance No. 6967. MOTION CARRIED UNANIMOUSLY. 6-0 D. Ordinance No. 6968 (Thomas) An Ordinance establishing the Local Sales and Use Tax Rate for Local Revitalization Financing for 2025 Councilmember Baldwin moved and Deputy Mayor Rakes seconded to approve Ordinance No. 6968. MOTION CARRIED UNANIMOUSLY. 6-0 E. Ordinance No. 6969 (Whalen) An Ordinance relating to Appeal Procedures, and amending Sections 2.46.035, 2.46.160, 5.15.070, 5.22.070, 5.22.090, and 15.76.040 of the Auburn City Code Deputy Mayor Rakes moved and Councilmember Amer seconded to approve Ordinance No. 6969. MOTION CARRIED UNANIMOUSLY. 6-0 Page 9 of 66 RESOLUTIONS A. Resolution No. 5811 (Krum) A Resolution authorizing the Mayor to execute an agreement between the City of Auburn and Segale Properties LLC and Otak Inc for Consulting Services related to the Stuck River Road and Mount Rainier Vista Special Planning Areas Councilmember T. Taylor moved and Councilmember Baldwin seconded to adopt Resolution No. 5811. Council discussed the extension of the scoping phase. MOTION CARRIED UNANIMOUSLY. 6-0 MAYOR AND COUNCILMEMBER REPORTS A. From the Council Deputy Mayor Rakes reported she attended a fundraiser at the Senior Center for the Auburn Respite Center Care Program. Councilmember Amer reported she attended the Water Resource Inventory Area (WRIA) 9 meeting, and thanked Councilmember Brown for his time on the Council. Councilmember Baldwin reported she attended a luncheon with the Lakota Chapter of the Daughters of the American Revolution, and the orientation for the new appointees Seattle Education Association (SEA) 2025 Boards and Committees. Councilmember T. Taylor reported she attended the Green River College Development Committee meeting, Valley Regional Fire Authority (VRFA) Board meeting, Green River Handford Award Committee meeting, Seattle Animal Foundation Board meeting, Sound Cities Association meeting, and the I Adore Body Sculpting Ribbon Cutting event. She also thanked Councilmember Brown for his time on the Council. Councilmember Trout-Manuel thanked Councilmember Brown for his service on the Council. Page 10 of 66 B. From the Mayor Mayor Backus reported she hosted the last meeting of the Safe Auburn Series, MC'd for the Miss Auburn Scholarship program, attended Mayor Jim Ferrell's State of the City address for the City of Federal Way, and reminded everyone about the City of Auburn State of the City address at the Muckleshoot Casino Resort. ADJOURNMENT There being no further business to come before the Council, the meeting was adjourned at 7:53 p.m. APPROVED this 3rd day of March 2025. NANCY BACKUS, MAYOR Shawn Campbell, City Clerk Page 11 of 66 CITY OF J\I.JBU1R.ts4 AGENDA BILL APPROVAL FORM WASHINGGTTON Agenda Subject: Meeting Date: Minutes from the February 24, 2025, Study Session Meeting March 3, 2025 Department: Attachments: Budget Impact: City Council 02-24-2025 Minutes Administrative Recommendation: Background for Motion: Background Summary: Councilmember: Staff: Page 12 of 66 City Council * Study Session AtTiu T Community Wellness SFA 1-l �T1�1 �I City Hall Council Chambers WASHINGTON MINUTES CALL TO ORDER Deputy Mayor Cheryl Rakes called the meeting to order at 5:30 p.m. in the Council Chambers of Auburn City Hall, 25 West Main Street. PUBLIC PARTICIPATION The Study Session Meeting was held in person and virtually. ROLL CALL Councilmembers present: Deputy Mayor Cheryl Rakes, Hanan Amer, Clinton Taylor, Tracy Taylor, and Yolanda Trout-Manuel. Councilmember Kate Baldwin was excused. Mayor Nancy Backus and the following staff members present included: City Attorney Jason Whalen, Assistant Chief of Police Samuel Betz, Director of Community Development Jason Krum, Director of Public Works Ingrid Gaub, SKHHP Executive Manager Claire Goodwin, SKHHP Program Coordinator Dorsol Plants, Transportation Planner Veronica Bean, and City Clerk Shawn Campbell. AGENDA MODIFICATIONS The Council Vacancy Appointment Discussion was added to announcements, reports, and presentations. ANNOUNCEMENTS, REPORTS, AND PRESENTATIONS A. Council Vacancy Appointment Discussion Council discussed options for nominees, suspending the rules, the previous appointment of a vacant position, selecting a caretaker to the position, and offering the position to a previous Councilmember. Page 13 of 66 AGENDA ITEMS FOR COUNCIL DISCUSSION A. King County Metro South Link Connections Project Update (20 Minutes) (Gaub) Planner Bean introduced Nicole Aguirre and Cristina Gonzalez with King County Metro and provided Council with a presentation on the South Link Connections Mobility Project, including the project background, scope, engagement timeline, implementation, and Network Tradeoffs. They also discussed the impacts to the City of Auburn, community engagement, partnerships, and goals. Council discussed increasing the frequency of buses on the weekends, members and the make-up of the King County Mobility Board, Metro Flex, Micro Transit, equitable transit access, community-based organizations in Auburn, and increased routes on West Hill. COMMUNITY WELLNESS DISCUSSION ITEMS A. Resolution No. 5804 (10 Minutes) (Krum) A Resolution authorizing the duly-appointed administering agency for the South King Housing and Homelessness Partners to execute all documents necessary to enter into agreements for the funding of Affordable Housing Projects, as recommended by the SKHHP Executive Board, utilizing funds contributed by the City to the SKHHP Housing Capital Fund Councilmember Trout-Manuel, Chair of the Community Wellness Special Focus Area, chaired this portion of the meeting. Executive Manager Goodwin and Program Coordinator Plants provided Council with a presentation on the SKHHP Housing Capital Fund Recommendations, including jurisdiction members, review process, recommended projects, and recommended funding sources. Council discussed the amount Auburn is contributing, and ensuring that funding comes to Auburn. ADJOURNMENT There being no further business to come before the Council, the meeting was adjourned at 6:24 p.m. APPROVED this 3rd day of March 2025. CHERYL RAKES, DEPUTY MAYOR Shawn Campbell, City Clerk Page 14 of 66 Page 15 of 66 * CITY OF J\I.JBU1R.ts4 AGENDA BILL APPROVAL FORM WASHINGGTTON Agenda Subject: Meeting Date: Claims Vouchers (Thomas) March 3, 2025 Claims voucher list dated February 26, 2025 which includes voucher numbers 479056 through voucher 479149, in the amount of$4,256,031.31, four electronic fund transfers in the amount of $6,768.79 and two wire transfers in the amount of $712,185.29 Department: Attachments: Budget Impact: None Administrative Recommendation: City Council to approve Claim Vouchers. Background for Motion: Background Summary: Claims voucher list dated February 26, 2025 which includes voucher numbers 479056 through voucher 479149, in the amount of $4,256,031.31, four electronic fund transfers in the amount of $6,768.79 and two wire transfers in the amount of$712,185.29. Councilmember: Kate Baldwin Staff: Jamie Thomas Page 16 of 66 * CITY OF J\I.JBU1R.ts4 AGENDA BILL APPROVAL FORM WASHINGGTTON Agenda Subject: Meeting Date: Payroll Voucher (Thomas) March 3, 2025 Payroll check numbers 539655 through 539657 in the amount of $685,659.31, electronic deposit transmissions in the amount of $2,601,823.16, also a special payroll for a severance payment with an electronic deposit transmission in the amount of $14,427.11, for a grand total of $3,301,909.58 for the period covering February 13, 2025 to February 26, 2025 (RECOMMENDED ACTION: Move to approve the Consent Agenda.) Department: Attachments: Budget Impact: None Administrative Recommendation: City Council to approve Payroll Vouchers. Background for Motion: Background Summary: Payroll check numbers 539655 through 539657 in the amount of $685,659.31, electronic deposit transmissions in the amount of $2,601,823.16, also a special payroll for a severance payment with an electronic deposit transmission in the amount of $14,427.11, for a grand total of $3,301,909.58 for the period covering February 13, 2025 to February 26, 2025. Councilmember: Kate Baldwin Staff: Jamie Thomas Page 17 of 66 CITY OF J\IJBURJ4 AGENDA BILL APPROVAL FORM WASHINGGTTON Agenda Subject: Meeting Date: Resolution No. 5804 (Krum) March 3, 2025 A Resolution authorizing the duly-appointed administering agency for the South King Housing and Homelessness Partners to execute all documents necessary to enter into agreements for the funding of Affordable Housing Projects, as recommended by the SKHHP Executive Board, utilizing funds contributed by the City to the SKHHP Housing Capital Fund (RECOMMENDED ACTION: Move to adopt Resolution No. 5804.) Department: Attachments: Budget Impact: Community Development Resolution No. 5804, Res 5804 - Exhibit A SKHHP Executive Board Recommendation Administrative Recommendation: City Council to adopt Resolution No. 5804. Background for Motion: Per the 2021 Interlocal Agreement between the City of Auburn and South King County Housing and Homelessness Partners (SKHHP), Auburn has contributed funding to the SKHHP Housing Capital Fund for the purpose of supporting regional affordable housing projects. Approval of this Resolution would authorize the allocation of those funds to the projects recommended by the SKHHP Executive Board. Background Summary: South King County Housing and Homelessness Partners (SKHHP) was established in 2019 through an Interlocal Agreement (Establishing ILA) and is a unified, coordinated, and collaborative coalition funding the construction and preservation of affordable housing in South King County. SKHHP currently has 12 member jurisdictions, including the cities of Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, SeaTac, and Tukwila, plus King County. SKHHP provides a meaningful opportunity to pool funds together with neighboring cities to collaboratively make an impact on the subregion's affordable housing shortage. To date, SKHHP has pooled over $11.2 million to house our low-income neighbors or rehabilitate deteriorating multifamily buildings. In 2019, RCW 82.14.540 (SHB 1406) became law allowing jurisdictions to enact a local sales and use tax for the purpose of supporting affordable housing. In 2021, eight of the nine SKHHP member cities entered into a second interlocal agreement for purposes of pooling sales tax receipts authorized by Page 18 of 66 RCW 82.14.540 with SKHHP to create the Housing Capital Fund (Pooling ILA— SHB 1406). In 2023, two of the four SKHHP member cities who are able to collect RCW 82.14.530 (HB 1590) revenues desired to pool a portion of those funds with SKHHP for the 2023 funding round of the Housing Capital Fund to add to existing SHB 1406 pooled revenue and entered into an additional Interlocal Agreement (Pooling ILA— HB 1590). In 2024, an additional member city entered into the Pooling ILA— HB 1590. The Establishing ILA and Pooling ILAs established the SKHHP Housing Capital Fund, set parameters for the process for the selection of awards involving pooled funds, and determined the approval process. Pursuant to the ILAs, the SKHHP Executive Board recommends allocations for funding affordable housing projects to the participating City Councils. Even though the Council has already contributed funds to the 2024 Housing Capital Fund funding round, Council approval is needed to authorize the allocation of funds to specific projects. The SKHHP Executive Board adopts annual funding guidelines and priorities for each funding round. The SKHHP Advisory Board subsequently reviewed applications and provided a funding recommendation based on adopted priorities to the SKHHP Executive Board. The SKHHP Executive Board concurred with the SKHHP Advisory Board's recommendation and recommends funding four projects totaling $4,100,000 as described in the 2024 SKHHP Housing Capital Fund Recommendation memo dated January 23, 2025 (Exhibit A). The SKHHP Executive Board requests approval to use $161,487 of the total $135,475 contributed funds from 2024 and $26,819 of the carry-over from 2023 from the City of Auburn for the following recommended projects: Project Location # of Units Total 2024 SKHHP 2024 City Sponsor and Development Contribution Contribution Project Name Cost Mercy Housing Burien 91 $58,048,463 $2,000,000 $0 NW — Burien Family Housing TWG — Kent 251 $126,720,200 $770,000 $0 Pandion at Star Lake Multi-Service Auburn 24 $975,939 $775,000 $121,507 Center— White River Apartments Habitat for Burien 40 $26,193,686 $555,000 $39,980 Humanity — Burien Miller Creek As outlined in the attached memo (Exhibit A), sales and use tax receipts from your jurisdiction have already been contributed to SKHHP's 2024 Housing Capital Fund, and with this Council approval, $161,487 of those funds may be allocated to the projects recommended by the SKHHP Executive Board. Detailed descriptions of the projects, funding requests, rationale, and recommended Page 19 of 66 conditions of funding for projects by the SKHHP Executive Board are included in the attached memo (Exhibit A). If not approved, SKHHP will not have Auburn's funds to contribute to the regional efforts to advance affordable housing projects that meet urgent local needs and priorities. Councilmember: Yolanda Trout-Manuel Staff: Jason Krum Page 20 of 66 RESOLUTION NO. 5804 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE DULY- APPOINTED ADMINISTERING AGENCY FOR THE SOUTH KING HOUSING AND HOMELESSNESS PARTNERS TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO AGREEMENTS FOR THE FUNDING OF AFFORDABLE HOUSING PROJECTS, AS RECOMMENDED BY THE SKHHP EXECUTIVE BOARD, UTILIZING FUNDS CONTRIBUTED BY THE CITY TO THE SKHHP HOUSING CAPITAL FUND WHEREAS, on February 19, 2019 the City of Auburn enacted an interlocal agreement to form the South King Housing and Homelessness Partners (SKHHP) to help coordinate the efforts of South King County cities to provide affordable housing; and WHEREAS, on February 22, 2021 the City of Auburn enacted an interlocal agreement for the purposes of pooling sales tax receipts with SKHHP to administer funds through the SKHHP Housing Capital Fund; and WHEREAS, the SKHHP Executive Board has recommended that the City of Auburn participate in the funding of certain affordable housing projects and programs hereinafter described; and WHEREAS, the SKHHP Executive Board has developed recommended conditions to ensure that the City's affordable housing funds are used for their intended purpose and that projects maintain their affordability over time; and WHEREAS, pursuant to the SKHHP formation Interlocal Agreement, each legislative body participating in funding a project or program through SKHHP's Housing Capital Fund must authorize the application of a specific amount of the City funds contributed to the SKHHP Housing Capital Fund to a specific project or program; and Resolution No. 5804 March 3, 2025 Page 1 of 3 Page 21 of 66 WHEREAS, the City Council desires to use $161,487 from funds contributed to the SKHHP Housing Capital Fund as designated below to finance the projects recommended by the SKHHP Executive Board. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. Pursuant to the Interlocal Agreement, the City Council authorizes the duly-appointed administering agency of SKHHP to execute all documents and take all necessary actions to enter into agreements on behalf of the City to fund the rehabilitation of the Multi-Service Center's White River Apartments and supporting the development of Habitat for Humanity's Burien Miller Creek and to use $161,487 from the City's SHB 1406 contribution. Section 2. The agreements entered into pursuant to Section 1 of this Resolution shall include terms and conditions to ensure that the City's funds are used for their intended purpose and that the projects maintain affordability over time. In determining what conditions should be included in the agreements, the duly-appointed administering agency of SKHHP shall be guided by the recommendations set forth in the SKHHP Executive Board's Memorandum dated January 23, 2025, a copy of which is attached as Exhibit A. Resolution No. 5804 March 3, 2025 Page 2 of 3 Page 22 of 66 Section 3. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed: CITY OF AUBURN NANCY BACKUS, MAYOR ATTEST: APPROVED AS TO FORM: Shawn Campbell, MMC, City Clerk Jason Whalen, City Attorney Resolution No. 5804 March 3, 2025 Page 3 of 3 Page 23 of 66 Memorandum ■ I ■ � South King Housing and Homelessness Partners TO: City of Auburn City Council City of Maple Valley City Council City of Burien City Council City of Normandy Park City Council City of Covington City Council City of Renton City Council City of Des Moines City Council City of SeaTac City Council City of Federal Way City Council City of Tukwila City Council City of Kent City Council FROM: SKHHP Executive Board DATE: January 23,2025 RE: 2024 SKHHP Housing Capital Fund Recommendation OVERVIEW 2024 was the third annual funding round of the SKHHP Housing Capital Fund made possible by pooling resources among SKHHP member jurisdictions. 2024 was the first year every member city contributed pooled funds towards the Housing Capital Fund and contributions totaled $3,959,020. With the remaining unused funds from the 2023 funding round, SKHHP made$4,100,000 available in the 2024 funding round. SKHHP received six applications for funding representing over$9.2 million in requests to develop or preserve 431 units of housing.The SKHHP Executive Board recommends funding four projects totaling$4,100,000 (see Table 1). Of this total,the Executive Board recommends using$1,030,000 of the total $1,035,141 sourced from SHB 1406 revenue contributions for one homeownership and one preservation project; $2,770,000 of the total $2,775,969 sourced from HB 1590 revenue contributions for two new construction projects; and $300,000 of the total $300,000 sourced from general funds to be applied to the homeownership project.This recommendation leaves a balance of$5,141 in SHB 1406 funds and $5,969 in HB 1590 funds in the Housing Capital Fund that will rollover into the next funding round in 2025 (see Tables 2 and 3). A summary of the recommended projects,funding rationale, and the conditions for funding are described in this memo. Included as attachments are the economic summaries of the recommended projects, summary changes of previously awarded projects that reapplied and are recommended for funding, and standard conditions for funding. Table 1: Recommended Projects and Recommended Funding Level Project sponsor Location #of Project type Amount Recommended Recommended and name units Requested Funding—HB Funding—SHB 1590 1406&GF Mercy Housing NW— Burien 91 New Construction $2,000,000 $2,000,000 -- Burien Family Housing Rental TWG—Pandion at Star Kent 251 New Construction $2,000,000 $770,000 -- Lake Rental Multi-Service Center— Auburn 24 Preservation $975,939 -- $775,000 White River Apts. Rental Habitat for Humanity— Burien 40 New Construction $1,300,000 -- $300,000-GF Burien Miller Creek Homeownership $255,000-SHB 1406 TOTAL -- 406 -- I -- $2,770,000 $1,330,000 Page 1 of 23 Page 24 of 66 Table 2: Proposed HB 1590 Allocations by Jurisdiction for Recommended Projects 1. Mercy Total Jurisdiction Housing-Burien 2.TWG-Pandion Contributed Carry-Over Unallocated Family in 2024 from 2023 Covington $ 153,964 $ 59,276 $ 213,657 $ 43 $ 460 Kent $ 1,485,801 $ 572,034 $ 2,061,827 $ 442 $ 4,434 Maple Valley $ 360,235 $ 138,690 $ 500,000 $ - $ 1,075 Total $ 2,000,000 $ 770,000 $ 2,775,484 $ 485 $ 5,969 Table 3: Proposed SHB 1406 Allocations by Jurisdiction for Recommended Projects Total 3. MSC-White 4. Habitat-Miller Carry-Over Jurisdiction River Creek Contributed from 2023 Unallocated in 2024 Auburn $ 121,507 $ 39,980 $ 135,475 $ 26,819 $ 807 Burien $ 57,595 $ 18,950 $ 64,623 $ 12,304 $ 382 Des Moines $ 29,955 $ 9,856 $ 34,012 $ 5,998 $ 199 Federal Way $ 116,047 $ 38,184 $ 131,715 $ 23,286 $ 770 Kent $ 173,408 $ 57,057 $ 194,889 $ 36,726 $ 1,150 Normandy Park $ 4,930 $ 1,622 $ 5,426 $ 1,158 $ 32 Renton $ 202,461 $ 66,616 $ 228,107 $ 42,313 $ 1,343 Tukwila $ 69,097 $ 22,735 $ 89,289 $ 3,002 $ 459 Total $ 775,000 $ 255,000 $ 883,536 $ 151,606 $ 5,142 Table 4: Proposed Unrestricted/General Fund Allocations by Jurisdiction for Recommended Projects 3. Habitat-Miller Total Jurisdiction Creek Contributed in Unallocated 2024 SeaTac $ 300,000 $ 300,000 $ - Total $ 300,000 $ 300,000 $ - BACKGROUND The SKHHP Advisory Board met on October 3, 2024 and November 7, 2024 to review each project application and develop a funding recommendation for the SKHHP Executive Board's consideration. The SKHHP Executive Board met on October 18, 2024 and November 15, 2024 to review each project and consider the recommendations of the Advisory Board.The Advisory Board adopted its recommendation on November 7, 2024 and the Executive Board took final action on November 15, 2024. Of the six applications received,two are located in Renton and both project applications are eligible to receive HB 1590 funds.The City of Renton collects HB 1590 funds but does not currently pool those funds with SKHHP. SKHHP pools HB 1590 funds from three of the four South King County cities that collect it. Because of this,the City of Renton plans to directly financially support these two projects.These projects include Homestead Community Land Trust's Willowcrest II and St. Stephen Housing Association &Way Back Inn's Steele House. Page 2 of 23 Page 25 of 66 These two projects were removed from SKHHP's competitive list of projects under consideration prior to the Advisory Board and Executive Board making their funding recommendation. PROCESS Advisory Board Executive Board finalizes Member Councils approve recommendation recommendation funding recommendation (November 7,2024) (November 15, 2024) (January-March 2025) ATTACHMENTS 1. Economic summaires of recommended projects 2. Summary changes of previously awarded projects that reapplied 3. Standard conditions for funding Page 3 of 23 Page 26 of 66 1. Mercy Housing Northwest- Burien Family Housing Funding request: $2,000,000 Executive Board recommendation: $2,000,000 (forgivable loan) Address: 12845 Ambaum Blvd SW Burien, WA 98146 PROJECT SUMMARY Burien Family Housing is a new multifamily 91-unit rental project located near high frequency transit in Burien. The project will support households earning between 30% area median income (AMI) and 60%AMI with a focus on households with children, including 34 units set-aside for families with children exiting homelessness and 18 units set-aside for households with a physical disability. The project includes the redevelopment of a 4.23 acre site currently owned by Mary's Place which operates an emergency shelter on-site. Mary's Place will be donating 2-acres of the project site to Mercy Housing Northwest for the development of new affordable housing,while retaining 1.31 acres of the site for the development of a new shelter to replace the existing one.The project will be four stories in size.The development is comprised of a mix of one-,two-,three-, and four-bedroom units. 52%of the units are family- sized two-,three-, and four-bedroom units. This project received a financial award from SKHHP during the 2022 funding round and secured funding from King County, the Washington State Department of Commerce,the 9% Low Income Housing Tax Credit (LIHTC) program, and the Amazon Housing Equity Fund (HEF) program over the course of 2023 and 2024.The project is a combination 4%and 9% LIHTC project.The project also secured 34 project-based vouchers from the King County Housing Authority and a Resident Services award from King County to support the families exiting homelessness. PROJECT SCHEDULE Activity Date Purchase and Sales Agreement 8/29/2022 Zoning Approval 2/1/2024 Site Plan Approval 8/18/2022 Building Permits Issued 2/25/2025 Begin Construction 4/1/2025 Begin Lease-up 6/1/2026 Issued Certificate of Occupancy 8/1/2026 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project has been awarded significant financial contributions from King County, State Department of Commerce (Housing Trust Fund), Amazon, and was awarded $1,093,308 from SKHHP in the 2022 funding round. Additionally,the project received a 9%bond allocation in the 2024 funding round through the Washington State Housing Finance Commission. • The project is ready to begin construction in the first half of 2025. Page 4 of 23 Page 27 of 66 • The sponsor's partnership with Mary's Place demonstrates a commitment to serving households experiencing homelessness and will develop a pipeline of permanent housing for Mary's Place clients. • Project-based vouchers have been secured which increases the financial stability of the project. • 75% of the units will be constructed using advanced universal design principals. • The project includes set-asides for four-bedroom units which are greatly needed to serve larger families. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: collaboration with local community-based organizations, connections and direct experience with populations the project is proposing to serve, addressing the needs of populations most disproportionately impacted by housing costs, advancing economic opportunity due to its proximity to transit and other amenities, providing rental housing for individuals and families earning 0-30%AMI and incorporating supportive services, and the leverage of private and public investment. • The site has convenient access to transit, shopping, and services. PROPOSED CONDITIONS Standard conditions apply to all projects and are included as Attachment 3 at the end of this memo. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a deferred, contingent, forgivable loan. Loan terms will account for various factors, including loan terms from other fund sources and available cash flow. Final loan terms shall be determined prior to release of funds and must be approved by SKHHP staff.The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project's affordability and target population. Contractor shall not be required to repay the loan so long as it maintains these project requirements. 2. Timeframe for funding commitment.The funding commitment continues for thirty-six(36) months from the date of Council approval of original award and shall expire thereafter if all conditions are not satisfied.An extension may be requested to SKHHP staff no later than sixty (60) days prior to the expiration date. At that time,the Contractor will provide a status report on progress to date and expected schedule for start of construction and project completion. The SKHHP Executive Board will consider a twelve-month extension only on the basis of documented, meaningful progress in bringing the project to readiness or completion. At a minimum,the Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. Project description of original award from 2022 funding round will be replaced by current description of the project. Previous funding award shall be combined with current recommended award but will retain eligibility of use under RCW. 82.14.540. 4. At least 34 of the housing units shall be set-aside for families with children exiting homelessness who earn no more than 60%AMI and 18 of the housing units shall be set-aside for households with a physical disability who earn no more that 60%AMI. Use of funds and population eligibility must be in-alignment with RCW 82.14.530 for 2024 award. Page 5 of 23 Page 28 of 66 5. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP staff. 6. A covenant is recorded ensuring affordability for at least 50 years with size and affordability distribution per the following table. Changes may be considered based on reasonable justification as approved by SKHHP. AMI 1-bedroom 2-bedroom 3-bedroom 4-bedroom Total Units 30% 6 14 5 3 28 50% 30 11 7 -- 48 60% 7 4 3 -- 14 Manager Units 1 -- -- -- 1 Total Units 44 29 15 3 91 Page 6 of 23 Page 29 of 66 2. TWG Development- Pandion at Star Lake Funding request: $2,000,000 Executive Board recommendation: $770,000 (loan) Address: 2526 S 272nd St., Kent, WA 98032 PROJECT SUMMARY Pandion at Star Lake is a 251-unit multifamily, mixed-use rental project in Kent located adjacent to the Kent/Star Lake Link light rail station.The project will support households earning between 30%AMI and 80%AMI. 47 units will support households up to 80%AMI.The project has been proposed as a 4% Low Income Housing Tax Credit(LIHTC) development.The project secured an award from SKHHP in the 2023 Housing Capital Fund funding round totaling$1,170,000, although the project was modified for the 2024 funding round.The project did not secure the needed public and private funds in 2024 to move forward towards beginning construction. The timeline for beginning construction has been moved out until funds can be secured to fill a $30 million gap. SKHHP's awards will assist the project in future applications to funders. This transit-oriented development (TOD) project will provide a mix of studio, one-, two-, and three- bedroom units.The project will include ground floor commercial space consisting of a K-12 learning center for low-income children operated by the Renton-based STEM Paths Innovation Network(SPIN). The property was purchased by the developer in December 2022.The project is a six-story building with five stories of affordable housing over one story of commercial space which also includes ten units of housing at the residential lobby level, plus basement level parking. The 251 units includes 163 units for the general population, 59 units for families with children, and 29 units for families with children that require permanent supportive services and are at-risk of being homeless. 24 units would be accessible units.The project includes 92 studios, 71 1-bedrooms, 36 2- bedrooms, and 52 3-bedrooms. 29 units of the project are eligible for HB 1590 funds which includes those units for families with children at-risk of homelessness and require permanent supportive services who earn up to 30%AMI. Those units would be served by Vision House which would provide on-site supportive services. Of the 29-units, 20-units would be 2-bedroom units and 9-units would be 3-bedroom units to accommodate families. FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The project secured a prior funding award from SKHHP and additional funds will assist the project to leverage other funding sources. • The project is located adjacent to the future Kent/Star Lake Link light rail station and has convenient access to transit, schools,grocery stores, and services. • The construction start date is anticipated farther out than other projects and the sponsor may have more time to secure the additional funds than other recommended projects prior to beginning construction. Page 7 of 23 Page 30 of 66 • The project has strong partnerships with Vision House who will provide on-site supportive services for 29 families with children and SPIN who will operate a K-12 learning center in the commercial space. • The project will support 29 families with children at-risk of homelessness. • The project is large and will provide a high number of affordable units near areas with high displacement risk potential. • The project sponsor has been in close communication with the City of Kent on project feasibility and zoning requirements since the property was purchased in December 2022. • The project sponsor has agreed to voluntarily meet the design standards for properties zoned as 'Midway Transit Community,'which is a higher degree of development than what is required under general mixed-use commercial standards for the City of Kent. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including: being a transit-oriented development(TOD) project, collaboration with local community-based organizations, addressing the needs of populations most disproportionately impacted by housing costs, advancing economic opportunity due to its proximity to the future Link light rail station and other amenities, and providing rental housing for individuals and families earning 0- 30%AMI and incorporating supportive services. PROPOSED CONDITIONS Standard conditions apply to all projects and are included as Attachment 3 at the end of this memo. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a deferred, 1% interest, non-forgivable loan to the LIHTC partnership.The form of the funds are subject to change, but shall be agreed upon prior to contract execution. Loan terms will account for various factors, including loan terms from other fund sources and available cash flow. Final loan terms shall be determined prior to release of funds and must be approved by SKHHP staff.The loan will be secured by a deed of trust recorded against the development property to ensure that Contractor maintains the project's affordability and target population. 2. Timeframe for funding commitment.The funding commitment continues for thirty-six (36) months from the date of Council approval of original award and shall expire thereafter if all conditions are not satisfied.An extension may be requested to SKHHP staff no later than sixty(60) days prior to the expiration date. At that time,the Contractor will provide a status report on progress to date and expected schedule for start of construction and project completion.The SKHHP Executive Board will consider a twelve-month extension only on the basis of documented, meaningful progress in bringing the project to readiness or completion. At a minimum,the Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. Page 8 of 23 Page 31 of 66 3. Project description of original award from 2023 funding round will be replaced by current description of the project. Previous funding award shall be combined with current recommended award. 4. At least 29 housing units of the total shall be set-aside for families with children at-risk of homelessness who earn no more than 30%AMI per the requirements of RCW 82.14.530 and the U.S. Department of Housing and Urban Development's definition of "at-risk of homelessness." 5. SKHHP funds shall be used solely for new construction, unless otherwise approved by SKHHP staff. 6. A covenant is recorded ensuring affordability for at least 50 years with size and affordability distribution per the following table. Changes may be considered based on reasonable justification as approved by SKHHP. AMI Studio 1-bedroom 2-bedroom 3-bedroom Total Units 30% -- -- 20 9 29 50% 52 41 1 20 114 60% 23 17 8 13 61 80% 17 13 7 10 47 Total Units 92 71 36 52 251 Page 9 of 23 Page 32 of 66 3. Multi-Service Center-White River Apartments Funding request: $975,939 Executive Board recommendation: $775,000 (grant) Address: 1301 31st St SE, Auburn, WA PROJECT SUMMARY The White River Apartments is a multifamily, preservation and rehabilitation 24-unit rental project in Auburn. The building was constructed in 1978 and the nonprofit Multi-Service Center took over ownership in 2000.The project consists of 24 two-bedroom, one-bathroom units in active use which includes three units serving households earning up to 30%AMI, sixteen units at 45%AMI, and five units at 80%AMI.The 80%AMI units are currently occupied by households earning less than 60%AMI and those units would shift to income restricted up to 60%AMI once funding is awarded.The project would not displace current residents. SKHHP funds are requested to support the rehabilitation of the 24 units including: siding replacement, site lighting, parking lot improvements including curbs and seal coating, replacing domestic hot water tanks in all units, re-grading areas adjacent to siding and replacement of exterior entry doors. This project previously applied to SKHHP's 2023 funding round. The project is located within walking distance of a bus route that connects to the Auburn Transit Center and Sounder Commuter Rail Station. South Auburn Elementary School, Game Farm Park, and Ballard Park are within 0.5 mile of the project. A grocery store is located one mile from the project. PROJECT SCHEDULE Activity Date Site Control 1/1/1996 Building Permit Issued End of 2025 Begin Rehabilitation and Renovation End of 2025 End Rehabilitation and Renovation End of 2025 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • The property is in need of rehabilitation to support the health and safety of the residents. • The project is made up of 2-bedroom units to support larger household sizes. • 79% of the households at White River Apartments earn no more than 45%AMI. • The property is close to parks, an elementary school, and transit access to the Auburn Transit Center and the Auburn Sounder train station. • The project includes a fenced play area with an accessible ramp into the play yard with recently installed play equipment. • Limited SKHHP funds available this funding round required a partial award which will still allow most of the residential building rehabilitation to move forward. Page 10 of 23 Page 33 of 66 • There are limited funding sources available for preservation and rehabilitation—SKHHP is the only funder on this project.The focus for larger public funders has historically been on creating new units of affordable housing. Smaller preservation projects like this one are not as competitive against larger preservation projects competing for the same funds. The project applied for funding in early 2024 to the State Department of Commerce Housing Trust Fund and SKHHP provided a letter of support, but was not successful in securing funding at that time. • The rehabilitation will not displace current residents. • Preservation and rehabilitation of affordable housing is a high-priority for SKHHP. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including:the project sponsor's community connection and engagement with the populations they intend to serve, advancing racial equity, addressing the needs of populations most disproportionately impacted by housing costs, advancing geographic equity of the Housing Capital Fund, providing rental housing for extremely-low income households, and preservation. • Multi-Service Center is a well-established South King County-based nonprofit that owns and operates over 650 units of affordable housing. • Multi-Service Center's housing programs have a history of serving BIPOC community members with 45%of residents of Multi-Service Center properties identifying as BIPOC. PROPOSED CONDITIONS Standard conditions apply to all projects and are included as Attachment 3 at the end of this memo. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a secured grant with no repayment. Final Contract terms shall be determined prior to release of funds and must be approved by SKHHP staff.The grant will be secured by a deed of trust recorded against the property to ensure that Contractor maintains the project's affordability and target population. Contractor shall not be required to repay the grant so long as it maintains these project requirements. 2. Timeframe for funding commitment.The funding commitment continues for thirty-six (36) months from the date of Council approval and shall expire thereafter if all conditions are not satisfied.An extension may be requested to SKHHP staff no later than sixty (60) days prior to the expiration date. At that time,the Contractor will provide a status report on progress to date and expected schedule for start of construction and project completion.The SKHHP Executive Board will consider a twelve-month extension only on the basis of documented, meaningful progress in bringing the project to readiness or completion.At a minimum,the Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. 3. SKHHP funds shall be used solely for the rehabilitation of the property and may include the following, unless otherwise approved by SKHHP staff: a. Landscaping improvements b. Seal coating and restriping the parking lot Page 11 of 23 Page 34 of 66 c. Site lighting improvements d. Recoating breezeways and replacing railings e. New siding f. Exterior paint g. Replacing gutters and downspouts h. Replacing unit entry doors and install metal screen doors i. Replace in-unit and laundry water heaters 4. SKHHP funds shall be prioritized to support building improvements- parking lot improvements shall not be funded in favor of residential building rehabilitation. 5. SKHHP and Contractor shall agree to the specifics on what will be funded prior to executing a contract to ensure eligibility of expenses in alignment with RCW 82.14.540 and to mitigate cost-overruns. 6. A covenant is recorded ensuring affordability for at least 50 years with size and affordability distribution per the following table. Changes may be considered based on reasonable justification as approved by SKHHP. AMI 2-bedroom Total Units units 30% 3 3 45% 16 16 60% 5 5 Total Units 24 24 7. Should cost overruns occur that require funds above SKHHP's contribution, sponsor will work towards filling the funding need through their capital budget process or seeking funds through other sources. Page 12 of 23 Page 35 of 66 4. Habitat for Humanity Seattle-King& Kittitas Counties- Burien Miller Creek Funding request: $1,300,000 Executive Board recommendation: $555,000 (grant) Address: 511 S 136th St Burien, WA 98168 PROJECT SUMMARY Burien Miller Creek is a 40-unit homeownership project in Burien.The project is comprised of three-and four-bedroom homes for purchase: 20 units for households earning an average 50%AMI and 20 units for households earning up to 80%AMI. The project is currently under construction and SKHHP awarded the project$300,000 in the 2022 funding round which has been requested to support the construction of five units for households earning an average of 50%AMI not to exceed 60%AMI.All homebuyers must have lived in King County for a least one year and 25%of the homes are reserved for households with a connection to the community—being defined as within two miles from the project. The project will provide permanent affordability through the execution of a ground lease upon sale of the home. Habitat will have the Right of First Option to buy the home at an appreciated rate of 1.5% per year. When the home is resold, the price is set at the cost of acquisition and any rehab needed, allowing the home to be affordable to low-and moderate-income buyers in perpetuity. Habitat requires that the home must be the buyer's primary residence and must be owner occupied for the life of the home.The buyer's housing costs will be kept at or below 35%of gross household income. The project has secured awards totaling$23 million and reports a funding gap of$3.3 million. The funding gap is due to increased construction costs, higher interest rates on construction loans, and lower mortgage revenue due to Habitat's commitment to serve families at lower AMIs in this development. PROJECT SCHEDULE Activity Date Site Control 3/26/2021 Building Permit Issued 3/24/2023 Begin Construction 11/08/2022 End Construction 2/1/2026 Full Occupancy 6/30/2026 FUNDING RATIONALE The Executive Board supports the intent of this application for the following reasons: • Homeownership is a high priority for SKHHP. • Over$7 million has been invested in the site and over$23 million has been committed. • Historically, out of the total number of households the sponsor has served, 65% identify as BIPOC families. • Habitat has implemented a community preference policy to help guide homeowner selection. All applicants must have been residents of King County in the past year and 25%of the homes Page 13 of 23 Page 36 of 66 are reserved for those with a connection to the community (being defined as within a 2-mile radius of the project site). • The project began vertical construction in October 2024 and is fully permitted. • Every homebuyer will have a sale price and mortgage set at no more than 35%of their household income based on household size. • Limited funds available from SKHHP required a partial award to be made to balance the need of other priority projects with consideration of geographic equity. • SKHHP awarded this project$300,000 in the 2022 funding round. Habitat reports a funding gap due to construction cost overruns and interest rates impacting the mortgages at the AMI levels they wanted to serve. SKHHP funds will help the project close the gap and enable them to serve the lower AMI households they have committed to serve. • The 32 3-bedrooms and 8 4-bedrooms spread across 10 buildings will provide badly needed larger,family sized homes. • The project was approved for participation in the City of Burien affordable housing demonstration program. • The project strongly aligns with SKHHP Housing Capital Fund adopted priorities including:the project sponsor's community connection and engagement with the populations they intend to serve, advancing racial equity, addressing the needs of populations most disproportionately impacted by housing costs, leverage of public and private funds, and homeownership. PROPOSED CONDITIONS Standard conditions apply to all projects and are included as Attachment 3 at the end of this memo. Special Conditions 1. SKHHP will provide project funds to the Contractor in the form of a secured grant with no repayment. Final Contract terms shall be determined prior to release of funds and must be approved by SKHHP staff.The grant will be secured by a deed of trust recorded against the property to ensure that Contractor maintains the project's affordability and target population. Contractor shall not be required to repay the grant so long as it maintains these project requirements. 2. Timeframe for funding commitment.The funding commitment continues for thirty-six (36) months from the date of Council approval of original award and shall expire thereafter if all conditions are not satisfied.An extension may be requested to SKHHP staff no later than sixty(60) days prior to the expiration date. At that time,the Contractor will provide a status report on progress to date and expected schedule for start of construction and project completion.The SKHHP Executive Board will consider a twelve-month extension only on the basis of documented, meaningful progress in bringing the project to readiness or completion. At a minimum,the Contractor will demonstrate that all capital funding has been secured or is likely to be secured within a reasonable period of time. Page 14 of 23 Page 37 of 66 3. Project description of original award from 2022 funding round will be replaced by current description of the project. Previous funding award shall be combined with current recommended award. 4. The recommended $300,000 (2024)from general fund contributions shall support the development of five (5) housing units at an average 50%AMI on initial sale (among the 20 units with an average 50%AMI restriction) and be permanently restricted at 70% AMI upon resale. 5. The recommended $255,000 (2024) and the previously awarded $300,000 (2022) shall support the development of five (5) units at an average 50%AMI on initial sale (among the 20 units with an average 50%AMI restriction) and be permanently restricted not to exceed 60%AMI upon resale. 6. SKHHP funds shall be used solely for new construction, soft costs, or other development costs, unless otherwise approved by SKHHP staff. Page 15 of 23 Page 38 of 66 ATTACHMENT 1: Economic Summaires of Recommended Projects Project: Mercy Housing Northwest-Burien Family Housing Proposed Funding Sources by Amounts and Status Funding source I Proposed Amount Status SKHHP(2024) $2,000,000 Recommended SKHHP(2022) $1,093,308 Committed 4%LIHTC Equity $9,405,093 Committed 9%LIHTC Equity $13,446,619 Committed State HTF $4,000,000 Committed King County(2023) $6,000,000 Committed Permanent Amortizing Loan $5,892,060 Committed Amazon HEF Loan $9,500,000 Committed Mercy Loan Fund _ $999,999 Committed Land Contribution $1,800,000 Committed Deferred Developer Fee $1,011,384 Committed National Housing Trust Fund $1,000,000 Committed King County 2024/CHIP Pass Thru $1,900,000 Committed TOTAL $58,048,463 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Acquisition $1,820,000 -- Construction $42,217,570 -- Soft Costs $8,634,716 -- Other Development Costs $5,376,177 -- TOTAL $58,048,463 $637,895 Residential Cost Per Square Foot Item Amount Residential square footage 86,543 Residential development cost $58,048,463 Cost per square foot $670.75 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Cost per Unit Footage Average 1-bedroom 44 526 $352,813 Average 2-bedroom 29 788 $528,549 Average 3-bedroom 15 1062 $712,333 Average 4-bedroom 3 1291 $865,934 Common area and other residential spaces, including parking 20,380 $13,669,825 Page 16 of 23 Page 39 of 66 Project:TWG—Pandion at Star Lake Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Acquisition $6,207,361 -- Construction $87,306,025 -- Soft Costs $15,032,371 -- Construction Financing $9,298,009 -- Other Development Costs $8,876,434 -- TOTAL $126,720,200 -- TOTAL NON-RESIDENTIAL $4,413,357 -- TOTAL RESIDENTIAL(includes common areas) $122,306,843 $487,278 Residential Cost Per Sauare Foot Item Amount Residential square footage 278,255 Residential development cost $122,306,843 Cost per square foot $439.55 Residential Cost Per Unit Based on Unit Size Unit Size Number of Units Unit Square Cost per Unit Footage Average Studio 92 415 $182,413 Average 1-bedroom 71 650 $285,707 Average 2-bedroom 36 926 $407,023 Average 3-bedroom 52 1,139 $500,647 Common area and other residential spaces, -- 107,767 $47,368,930 including parking Project: Multi-Service Center—White River Apartments Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP (2024) $975,939 Recommended TOTAL Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Rehabilitation $747,939 -- Rehabilitation Contingency $150,000 -- Soft Costs $50,000 -- Other Development Costs $28,000 -- TOTAL $975,939 $40,664 Page 17 of 23 Page 40 of 66 Project: Habitat for Humanity Seattle-King& Kittitas Counties- Burien Miller Creek Proposed Funding Sources by Amounts and Status Funding source Proposed Amount Status SKHHP(2022) $300,000 Committed SKHHP(2024) $550,000 Recommended King County $3,547,282 Committed HTF $3,125,000 Committed CHIP $1,934,500 Committed HUD $850,000 Committed HTF Unit Subsidy(2024) $1,000,000 Committed Construction Financing $12,562,607 Committed Habitat for Humanity $2,324,297 Committed TOTAL $26,193,686 Proposed Use of Funds and Total Residential Cost Per Unit Proposed use Amount Per Unit Acquisition $2,086,758 $52,169 Construction $20,931,597 $523,290 Soft Costs $1,906,163 $47,654 Other Development Costs $1,269,168 $31,729 TOTAL $26,193,686 $654,842 Residential Cost Per Square Foot Item Amount Residential square footage 54,662 Residential development cost $26,193,686 Cost per square foot $479.19 Page 18 of 23 Page 41 of 66 ATTACHMENT 2: Summary Changes of SKHHP Awarded Projects that Reapplied Project: Mercy Housing Northwest- Burien Family Housing Project changes between the awarded project from the 2022 SKHHP funding round and the 2024 application are as follows: 2024 2022 Changes Populations 34—families with children 35—families with • Fewer units for served exiting homelessness children exiting families with children 16—families with children homelessness • Added units for 18—households with a 54—families with households with a physical disability children disability and general 22—general population population Total units 91 89 • One unit added for an on-site manager • One additional affordable unit AMI 0-60% 0-60% • No change AMI/unit 0-30%-28 0-30%-35 • More 50% units and count 30-50%-48 30-50%-28 fewer 30%and 60% 50-60%- 14 50-60%-26 units LIHTC 4%/9% 4% • Added 9% LIHTC Cost $59.7m $47.4m • Higher budget Page 19 of 23 Page 42 of 66 Project:TWG—Pandion at Star Lake Project changes between the 2023 awarded project and the 2024 application are as follows: 2024 2023 Changes Number of 1 2 • Modified from 2 buildings buildings to 1 Populations 163 units-general Building 1: • No seniors at 80-100% served population 109 units-general population AMI 59 units-families 30 units-families with children • No families that are with children 25 units-families with children transitioning out of 29 units-families that require permanent homelessness with children that supportive services and who are • No IDD units require permanent transitioning out of homelessness • Larger number of general supportive services or are at-risk of homelessness population units in lower and are at-risk of 4 units- households with I/DD income building being homeless Building 2: • More units for families 173 units—seniors earning 80- with children 100%AMI Total units 251 341 (168 and 173) • 90 fewer units AMI 0-80% 0-100% • No 80-100%AMI units AMI/unit 0-30%-29 0-30%-29 • Number of 0-30% units count 30-50%- 114 30-50%-97 unchanged 50-60%-61 50-60%-42 • More 30-60% units 60-80%-47 80-100%- 173 • Added 80% units • Removed 80-100% units LIHTC 4% 4%/9% • Not applying for 9% LIHTC Page 20 of 23 Page 43 of 66 Project: Habitat for Humanity Seattle-King& Kittitas Counties- Burien Miller Creek Project changes between the awarded project from the 2022 SKHHP funding round and the 2024 application are as follows: 2024 2022 Changes Number of 10 10 • No change buildings Populations Homebuyers with Homebuyers with • No change served connection to the connection to the community community Total units 40 Phase 1—20 units • Removed Phase 1 and Phase 2—20 units 2 and are considering the project a single project. AMI 20 units-average of 50% Phase 1 (20 units)—up to • Changed from 20 AMI 50%AMI units at 50%AMI to 20 units-80%AMI Phase 2 (20 units)—80% an average 50%AMI AMI Cost $26.2m $8.4m (First 20 units only) • Higher development cost SKHHP Request: $1.3m for 20 $300k applied to 20 units up • Request to fund fewer funding units at average 50%AMI. to 50%AMI >$300k applied of the 20 total units. request to 20 units at average 50% Total project units Recommended: Partial AMI >$300,000 applied to 5 unchanged. award of$300,000 (GF) units at average 50%AMI for 5 units at average 50% AMI with resale up to 70% AMI &$255,000 for 5 units at average 50%AMI with resale up to 60%AMI Page 21 of 23 Page 44 of 66 ATTACHMENT 3: Standard Conditions for Funding 1. Contractor shall provide SKHHP with development and operating budgets based upon actual funding commitments for approval by SKHHP staff. Contractor must notify SKHHP staff immediately if it is unable to adhere to these budgets and must submit new budget(s)to SKHHP staff for approval. SKHHP staff shall not unreasonably withhold its approval of these budget(s), so long as they do not materially or adversely change the Project. This shall be a continuing obligation of the Contractor, and shall survive the transfer or assignment of the Contract. Contractor's failure to adhere to budgets (either original or new/amended) may result in SKHHP's withdrawal of its funding commitment. Contractor must prepare and submit final budgets to SKHHP at the time it starts project construction and at the project's completion. 2. Contractor shall submit to SKHHP evidence of funding commitments from all proposed public and private funding sources. If Contractor cannot secure an identified commitment within an application's time frame, Contractor shall immediately notify SKHHP staff and describe its anticipated actions and time frame for securing alternative funding. 3. Contractor shall use SKHHP provided funds toward specific project costs as included in the Contract and consistent with RCW 82.14.540 and/or 82.14.530, as applicable. Contractor may not use SKHHP funds for any other purpose unless SKHHP staff authorizes such alternate use in writing. If budget line items with unexpended balances exist after completion of the project,SKHHP and other public funders shall approve adjustments to the project capital sources (including potential reductions in public fund loan balances). 4. Contractor shall evaluate and consider maximizing sustainability features for the Project (such as an efficient building envelope and heat pumps) and shall propose a plan to maximize the Project's sustainability. 5. Contractor shall use and document an open and competitive bidding process (consisting of at least three bids)for construction and related consultant services associated with the project, regardless of the source of funds used to pay their costs. Contractor shall pay RCW 39.12 prevailing wages in all projects funded by SKHHP that include construction activities, unless federal funds awarded to the project mandate use of federal prevailing wage rates. 6. If Contractor uses federal funds toward the Project, it must meet applicable federal guidelines, including but not limited to: contractor solicitation; bidding and selection; wage rates; and federal laws and regulations. 7. Contractor shall maintain documentation of any necessary land use approvals, permits, and licenses required by the jurisdiction in which the project is located. 8. Contractor shall submit to SKHHP project monitoring reports quarterly through its completion of the project, and annually thereafter. Contractor shall submit a final Page 22 of 23 Page 45 of 66 budget to SKHHP upon project completion. If applicable, Contractor shall submit initial tenant information as required by SKHHP. 9. Contractor is required to provide SKHHP with quarterly status reports for projects funded through SKHHP's Housing Capital Fund during the project's development stage (from the time funds are awarded until the project's completion and occupancy). These quarterly reports must include at a minimum the status of funds expended and progress to date. SKHHP will rely on these quarterly reports to determine whether Contractor is making satisfactory progress on the project. 10. SKHHP may inspect the project site during the project's construction. 11. After occupancy, the Contractor will submit annual reports to SKHHP summarizing the number of project beneficiaries, housing expenses for the target population, and the proportion of those beneficiaries that are low-and/or moderate-income and that meet other eligibility criteria established in the Contract. In addition, the Annual Report shall include certifications to SKHHP that it is in compliance with the Covenant,which shall include the most current occupancy information, rent schedule (showing which Units are in each income class), a calculation justifying any increases in rents from the previous rent schedule, consistent with the Covenant and the Contract, and the actual rents being charged to each unit. SKHHP shall have the right to review rents for compliance and approve or disapprove them every year. In the event the Contractor submits annual certifications to satisfy the reporting requirements of multiple funders, Contractor will designate and report all units at the income class required by the most restrictive funder as well as the classification for purposes of the Covenant and this Contract.The Contractor shall also include with such certification any changes in the management policies for the Property and such other information covering the prior calendar year as SKHHP may request by notice at least ninety(90) days in advance of the due date, and with such accompanying documentation as SKHHP may request.The Annual Reports shall be submitted by June 30 of each year and will be required for the full duration of the Affordability Period. SKHHP will also periodically evaluate all projects for long term sustainability. 12. For rental projects, Contractor shall maintain the project in good and habitable condition for the duration of its affordability term. 13. SKHHP shall reimburse the Contractor for satisfactory completion of the requirements specified in the Contract and upon Contractor's submission to SKHHP of invoices and supporting documentation of eligible expenses. 14. SKHHP shall retain 5%of the funding award ("retention") and shall release the retention only after construction is complete and all other obligations outlined in the contract have been satisfied. 15. A covenant is recorded ensuring affordability for at least 50 years,with unit size, number of units, and affordability distribution established prior to executing Contract. Page 23 of 23 Page 46 of 66 CITY OF J\IJBURJ4 AGENDA BILL APPROVAL FORM WASHINGGTTON Agenda Subject: Meeting Date: Resolution No. 5815 (Krum) March 3, 2025 A Resolution relating to the endorsement of the Kent Valley Economic Development Air and Space Manufacturing Roundtable (RECOMMENDED ACTION: Move to adopt Resolution No. 5815.) Department: Attachments: Budget Impact: Community Development Resolution No. 5815, Exhibit A - Air and Space Background Information Administrative Recommendation: City Council to adopt Resolution No. 5815. Background for Motion: Kent Valley Air and Space Manufacturing Roundtable, inspired by the proven success of the Next Generation Sector Partnerships model, aims to unite C-Suite leaders and key partners to tackle pressing challenges and develop actionable strategies that will keep our region's primary industries competitive and thriving. Background Summary: Neighboring agencies, including other cities, school districts, and educational institutions are working together to support the establishment of the Kent Valley Air and Space Manufacturing Roundtable, aiming to foster collaboration among industry leaders, educators, and public sector representatives to address workforce development, drive legislative agendas, and promote economic sustainability within the aerospace industry. The support of Kent and other agencies emphasizes the importance of partnerships between K-12 education, higher education institutions, and the aerospace sector to align training programs with industry needs. C-suite executives from aerospace employers are invited to participate in the Roundtable's initiatives and commit to ongoing collaboration between educational institutions, city leaders, and industry partners to ensure the success of this strategic initiative. The Economic and Community Development Department is in communication with other agencies regarding a memorandum of understanding that will be signed by the Mayor expressing these sentiments. Councilmember: Tracy Taylor Staff: Jason Krum Page 47 of 66 RESOLUTION NO. 5815 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RELATING TO THE ENDORSEMENT OF THE KENT VALLEY ECONOMIC DEVELOPMENT AIR AND SPACE MANUFACTURING ROUNDTABLE WHEREAS, Green River College and Renton Technical College, as mission driven institutions of higher education and talent development, recognize the value of strong collaboration between aerospace leaders and the alignment of training and programs with industry growth; WHEREAS, The Auburn, Kent, and Renton School Districts are the starting point for student career exploration and contribute to the development of workforce education programs by fostering career connections between K-12 education, postsecondary pathways, and the aerospace industry; WHEREAS, The public sector leaders representing the cities of Auburn, Kent, Tukwila, and Renton, along with Kent Valley education leaders, recognize the need for a strategic initiative aimed at addressing challenges and opportunities within Kent Valley's aerospace industry; WHEREAS, The Next Generation Sector Partnerships model has demonstrated success in facilitating collaboration between business leaders, educators, and government entities to address industry challenges and promote economic vitality and sustain ability; WHEREAS, The creation of the Kent Valley Air and Space Manufacturing Roundtable provides an efficient platform for industry leaders to collectively address Resolution No. 5815 March 3, 2025 Page 1 of 3 Page 48 of 66 workforce and talent development, drive legislative agendas, and promote economic vitality and sustainability within the aerospace industry; WHEREAS, Participation from industry leaders is essential for success of the Kent Valley Air and Space Manufacturing Roundtable as Kent Valley employers are creating the jobs of the future and their guidance is critical to shaping the aerospace industry's talent pipeline. Now, therefore, be it resolved, that Green River and Renton Technical Colleges, and the Auburn, Kent and Renton School Districts hereby invite establishment of the Kent Valley Air and Space Manufacturing Roundtable to build stronger partnerships, foster collaboration, and expand equitable access to our region's best jobs; Be it further resolved that Kent Valley employers represented by C-suite executives, were invited to join the Kent Valley Air and Space Manufacturing Roundtable, and participate in the inaugural launch meeting held in October 2024, as well as subsequent biannual meetings and Action Teams; Be it further resolved that the cities of Auburn, Kent, Renton, and Tukwila express their support for the establishment of the Kent Valley Air and Space Manufacturing Roundtable and commit to working collaboratively with the Auburn, Kent and Renton School Districts, as well as Green River and Renton Technical Colleges, and industry partners to ensure its success; Be it further resolved that the Auburn, Kent and Renton School Districts, Green River, and Renton Technical Colleges, along with the city mayors, extend their sincere appreciation to Kent Valley Air and Space Industry employers for considering this Resolution No. 5815 March 3, 2025 Page 2 of 3 Page 49 of 66 opportunity to collaborate and shape the future of the air and space manufacturing industry and region. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this Resolution. Section 2. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed: CITY OF AUBURN NANCY BACKUS, MAYOR ATTEST: APPROVED AS TO FORM: Shawn Campbell, MMC, City Clerk Jason Whalen, City Attorney Resolution No. 5815 March 3, 2025 Page 3 of 3 Page 50 of 66 Kent Valley Air and Space Manufacturing Roundtable Memorandum of Understanding Subject: Establishment of the Kent Valley Air and Space Manufacturing Roundtable Whereas, Green River College and Renton Technical College, as mission driven institutions of higher education and talent development, recognize the value of strong collaboration between aerospace leaders and the alignment of training and programs with industry growth; Whereas, The Auburn, Kent, and Renton School Districts are the starting point for student career exploration and contribute to the development of workforce education programs by fostering career connections between K-12 education, post- secondary pathways, and the aerospace industry; Whereas, The public sector leaders representing the cities of Auburn, Kent, Tukwila, and Renton, along with Kent Valley education leaders, recognize the need for a strategic initiative aimed at addressing challenges and opportunities within Kent Valley's aerospace industry; Whereas, The Next Generation Sector Partnerships model has demonstrated success in facilitating collaboration between business leaders, educators, and government entities to address industry challenges and promote economic vitality and sustainability; Whereas, The creation of the Kent Valley Air and Space Manufacturing Roundtable provides an efficient platform for industry leaders to collectively address workforce and talent development, drive legislative agendas, and promote economic vitality and sustainability within the aerospace industry; Whereas, Participation from industry leaders is essential for success of the Kent Valley Air and Space Manufacturing Roundtable as Kent Valley employers are creating the jobs of the future and their guidance is critical to shaping the aerospace industry's talent pipeline. Now, therefore, be it resolved, that Green River and Renton Technical Colleges, and the Auburn, Kent and Renton School Districts hereby invite establishment of the Kent Valley Air and Space Manufacturing Roundtable to build stronger partnerships, foster collaboration, and expand equitable access to our region's best jobs; Be it further resolved that Kent Valley employers represented by C-suite executives, are invited to join the Kent Valley Air and Space Manufacturing Roundtable, and participate in the inaugural launch meeting scheduled for late October 2024, as well as subsequent biannual meetings and Action Teams; Page 51 of 66 Be it further resolved that the cities of Auburn, Kent, Renton, and Tukwila express their support for the establishment of the Kent Valley Air and Space Manufacturing Roundtable and commit to working collaboratively with the Auburn, Kent and Renton School Districts, as well as Green River and Renton Technical Colleges, and industry partners to ensure its success; Be it further resolved that the Auburn, Kent and Renton School Districts, Green River, and Renton Technical Colleges, along with the city mayors, extend their sincere appreciation to Kent Valley Air and Space Industry employers for considering this opportunity to collaborate and shape the future of the air and space manufacturing industry and region. Signed: Dr. Suzanne Johnson, President Nancy Backus, Mayor Green River College City of Auburn Date: Date: Dr. Yoshiko Harden, President Dana Ralph, Mayor Renton Technical College City of Kent Date: Date: Dr. Alan Spicciati, Superintendent Armondo Pavone, Mayor Auburn School District City of Renton Date: Date: Israel Vela, Superintendent Thomas McLeod, Mayor Kent School District City of Tukwila Date: Date: Dr. Damien Pattenaude, Superintendent Renton School District Date: Page 52 of 66 For Conversation—Sample Recruitment Explanatory Document What's the Employer Table of Kent Valley? Employer Table for the Kent Valley What is this Industry Table and why is it unique? The industry advisory table is modeled after a national model of Adult Community K-12 industry partnership, called Next Gen Colleges Ed Career Sector Partnerships.They bring Community 41111111140b Tech together C-Suite business leaders Partners Universities Ed from a single industry in the same a ° 0 region to collaborate in making their Chambers of industry more competitive.They Commerce (3 0 tackle a range of issues including Business improving the workforce pipeline, Community-Based C Table 0 aligning training with industry needs, Organizations improving infrastructure, addressing 0 regulatory barriers or facilitating Economic 0 0 business-to-business networking. Development Organizations 0 The agenda is defined by business leaders, addressing the pre- Workforce competitive issues related to Development education that matter most to their Convener industry in their region and issues that no single company can tackle on its own. They are strongly rooted in the region their companies call home in south King County/Kent Valley.That means their agenda is grounded not only in what their companies need to thrive, but what the communities in their shared region need,too. The Industry Advisory Table of Kent Valley is a forum for employers: • Create and drive a shared agenda that supports ongoing and mutual economic stability and opportunity for their industry and the people and communities in our region. • Cultivate high quality connections, networking, information and idea sharing on issues most relevant to their mutual needs. • Step in and step up to the forefront in new ways that co-invest, support and implement shared workforce strategies. • Develop and demonstrate a shared commitment to diversity and inclusion through hiring and investments, directly relevant to populations here in our region. Page 53 of 66 • Help push and create coordinated action around shared issues by the many otherwise siloed public partners in education,workforce and economic development, including the shared curation of resources and investments that solve persistent problems. How is this different from past or other industry advisory initiatives? It's different in five ways: 1. Commitment of leaders drawn from two colleges and a school district:The Industry Table will have import above and beyond other industry advisory offerings, and seeks to avoid duplication in south King County.The Table will help steward taxpayer monies within education and workforce development in south King County towards greater efficacy for businesses and students by being better positioned to connect dots and contextualize programs to a larger strategy of shared prosperity and economic development for south King County residents. 2. It relies on private sector pull vs. public program push: Our state and our region have hundreds of public programs that support, directly or indirectly,the needs of manufacturers. Some are right on point; others miss the mark; few are truly coordinated together for bigger impact.All want manufacturers to know about their programs. The Industry Table is an organizing mechanism: it centers the manufacturers voice in a way that acts as a gravitational pull for the many public programs to get and stay on point in a coordinated way. 3. It's a shared table vs. creating another organization or initiative: This is not another organization or initiative. It's a single, shared table of employers with intention and care to diverse representation of both businesses large and small that can help guide public resources better and increase coordination and articulation between higher education and local school districts. It's a big tent that leverages and knits together existing efforts,with a bias toward action for highest shared priorities. 4. Coordinated responses and solutions vs. one-off solutions:The Industry Table helps sort and sift business and emerging technology trends for colleges and schools and aim areas of strategic investment for state (and particularly federal)funding, while convening staff help provide concise briefings on the dozens (or hundreds) of programs and resources in education, workforce development. 5. Employers invested for the long haul vs. short term initiatives:The Industry Table is not a focus group, input session,trade association, or traditionally understood incumbent advisory council. It is an action-oriented collection of local business leaders with an eye on long-run advantages conferred on the community by support for educational institutions at the cutting edge. What's the Commitment? • A 2-hour"Launch". During the "Launch" meeting,you will convene with fellow employer executives to identify opportunities within the region and subsequent action items. The Launch will be professionally facilitated, in-person,targeting September 2021. • Appropriate delegation of yourself or company personnel (with decision making authority)to top priority"action team(s)"coming out of the"Launch" meeting (expect 3-5 priority areas, likely focused on workforce needs, supply chain connections, infrastructure, policy changes, etc.—subject areas are more wide ranging than just curriculum development, instructional quality, and student recruitment to anticipate needs for facilities and equipment and wider context of what's occurring in local economy). • As a rule of thumb,these types of partnerships usually meet quarterly for 90 minutes. Page 54 of 66 • "Action team"work occurs in between quarterly meetings, made up by employers and relevant public partners' staff. Action teams need your expertise,voice and time. Public support partners help coordinate,facilitate and keep trains moving toward solutions. • These partnerships also typically maintain a "leadership team" of some sort, including business "chairs". These may or may not be the same as the "initial" leadership team.You personally decide as the Partnership gets up and running. What does it mean to be an initial Champ? • It means you've been identified as a natural leader, someone who combines the attributes of a successful business executive and a civic entrepreneur. You care about your company, about manufacturing, and about communities in our region. • It also means you're willing to: o Co-sign an invite letter with other execs that indicates that you think the Industry Table is indeed a value-add and good idea for the region, for employers and for your company. o Join a 30-minute prep call with other C-suite champs that make up the initial Leadership team prior to the Industry Table "Launch" meeting. o Make opening remarks at the Launch meeting about why the Industry Table is important and a priority for your company. For Conversation—Sample Guidebook Components, Basic Facts Recommendation: Six advisory committee meetings per year with a minimum quorum of 60% of the voting members present at each meeting. Ten or Twelve table members (not counting colleges, district, and city staffers. Question: Board of trustee, district board, Council approvals? Question: Employers only, or include workforce development allies, such as Aerospace Joint Apprenticeship Committee, WABS, etc? Traditional Roles of an Advisory Committee (To discuss difference or relatedness to shared Industry Table) Career and Technical Education Advisory committees perform five major roles. They: 1. Provide information which will update, modify, expand, and improve the quality of the program. 2. Support and strengthen the partnership between education, business, labor, and the community 3. Make recommendations that will strengthen and expand the Career and Technical curriculum and provide assistance in implementing their recommendations. 4. Identify and validate academic and occupational competencies and industry standards, determine priorities, review, and evaluate programs. 5. Articulate long-term goals and objectives of the career and technical programs to students, employers, and the community. Page 55 of 66 Advisory Committees are only as effective as their individual members. We urge members to: • Understand the importance of their roles • Attend and actively participate in all meetings • Suggest and develop agenda items for meetings • Help determine committee goals • Become familiar with the colleges and district, and how its programs fit into the overall educational structure • Communicate openly with other committee members and program instructors and administrators. • Accept committee responsibilities Advisory committees develop an annual program of work that reflects consensus on the needs of the program and the requirements of the occupation. In developing a program of work, members combine information provided to them by instructors and administers about the program with their knowledge about the requirements of the occupation. A written plan is preferred...Members are appointed for terms of up to three years and may be re-appointed at the end of their terms. To maintain fresh ideas members complete their terms. The recommended minimum committee size is ... The chairperson of the committee shall be elected annually from among the members. Ethical Conduct Washington Ethics Law, Revised Code of Washington Chapter 42.52 and the GRC Ethics Poilcy... [Is there a conduct statement we can create in common? Updates to values above and beyond ethics policies to promotion of these values common to our institutions? New writing assignment here to discuss in our leadership convenings] Areas of Consultation/Leadership • Review labor market information to ensure occupational program areas in demand, produce living wages, and vacancies exist so as to provide for high probability for future employment of successful students • Develop an assertive agenda for moving the needle on recruitment to both high-paying careers found in abundance in the local industries of host communities as well as to enrollment where the colleges where students are found • Implement and steer these student recruitment efforts • Review summaries of program content and respective courses across the two colleges and school district • Advise colleges and schools on not just industry standards or certifications required by occupational areas—but help anticipate those that must be developed going forward with an aim of cultivating national excellence in target fields in curriculum, instruction quality, and facilities to help 'future proof' instruction from changes in market conditions, technologies, and employment needs Page 56 of 66 • Advise in development of plans for new construction or remodeling of existing facilities, or funding requests to effectuate • Recommend procedures for developing, implementing, and evaluating work-based learning experience programs Page 57 of 66 .1 I ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT Kurt Hanson, AICP, EDFP 220 Fourth Avenue South KENT Kent, WA 98032 WASHINGTON 253-856-5454 DATE: September 17, 2024 TO: Kent City Council - Committee of the Whole SUBJECT: Motion in Support of the Establishment of the Kent Valley Air and Space Manufacturing Roundtable MOTION: I move to express the City Council's support for the establishment of the Kent Valley Air and Space Manufacturing Roundtable and invite the participation of local aerospace industry representatives. SUMMARY: Neighboring agencies, including other cities, school districts, and educational institutions are working together to support the establishment of the Kent Valley Air and Space Manufacturing Roundtable, aiming to foster collaboration among industry leaders, educators, and public sector representatives to address workforce development, drive legislative agendas, and promote economic sustainability within the aerospace industry. The support of Kent and other agencies emphasizes the importance of partnerships between K-12 education, higher education institutions, and the aerospace sector to align training programs with industry needs. C-suite executives from aerospace employers are invited to participate in the Roundtable's initiatives and commit to ongoing collaboration between educational institutions, city leaders, and industry partners to ensure the success of this strategic initiative. The Economic and Community Development Department is in communication with other agencies regarding a memorandum of understanding that will be signed by the Mayor expressing these sentiments. This motion in support of the establishment of the Kent Valley Air and Space Manufacturing Roundtable will both be presented to the Committee of the Whole and placed on the City Council consent agenda on September 17, 2024. BUDGET IMPACT: SUPPORTS STRATEGIC PLAN GOAL: Innovative Government- Delivering outstanding customer service, developing leaders, and fostering innovation. Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. Packet P_g. 153 Pogo 58 of 66 4.1 Sustainable Services - Providing quality services through responsible financial management, economic growth, and partnerships. Inclusive Community - Embracing our diversity and advancing equity through genuine community engagement. ATTACHMENTS: 1. Kent Valley Air Space Roundtable MOU (PDF) Packet P 154 Pogo 5P of 66 AB - 3690 \SY o� + + RFNTOA City Council Regular Meeting- 21 Oct 2024 SUBJECT/TITLE: MOU - Kent Valley Air and Space Manufacturing Roundtable RECOMMENDED ACTION: Council Concur DEPARTMENT: Community & Economic Development Department STAFF CONTACT: Amanda Free, Economic Development Acting Director EXT.: 7369 FISCAL IMPACT SUMMARY: No fiscal impact. SUMMARY OF ACTION: City to engage in a Memorandum of Understanding to show support for the establishment of the Kent Valley Air and Space Manufacturing Roundtable EXHIBITS: A. Issue Paper B. MOU STAFF RECOMMENDATION: Mayor to sign a Memorandum of Understanding to show support for the establishment of the Kent Valley Air and Space Manufacturing Roundtable Page 60 of 66 GAS Y OAS Department of Community + & Economic Development .FNTO+ Memorandum DATE: October 14,2024 TO: Ed Prince, Council President Members of Renton City Council CC: Armondo Pavone, Mayor Ed VanValey, Chief Administrative Officer FROM: Gina Estep, CED Administrator STAFF CONTACT: Amanda Free, Economic Development Acting Director SUBJECT: Memorandum of Understanding for Kent Valley Air and Space Manufacturing Roundtable ISSUE Should Council authorize the mayor to sign a Memorandum of Understanding to show support for the establishment of the Kent Valley Air and Space Manufacturing Roundtable? RECOMMENDATION Staff recommends approval to request the mayor signature on the Memorandum of Understanding to show support for the establishment of the Kent Valley Air and Space Manufacturing Roundtable. BACKGROUND SUMMARY Neighboring agencies, including other cities, school districts, and educational institutions are working together to support the establishment of the Kent Valley Air and Space Manufacturing Roundtable, aiming to foster collaboration among industry leaders, educators, and public sector representatives to address workforce development, drive legislative agendas, and promote economic sustainability within the aerospace industry. The support of Renton and the other agencies emphasizes the importance of partnerships between K-12 education, higher education institutions, and the aerospace sector to align training programs with industry needs. C-suite executives from aerospace employers will be invited to participate in the Roundtable's initiatives and commit to ongoing collaboration between educational institutions, city leaders, and industry partners to ensure the success of this strategic initiative. Page 61 of 66 Page 2 of 4 October 14,2024 DETAILED SUMMARY OF ROUNDTABLE The City of Kent Economic Development team presented the Roundtable and the Memorandum of Understanding to the Kent Council on September 17, 2024 and was unanimously approved. Below is the summary the Kent Council was provided: Context and Industry Challenges The aerospace and space industries in South King County are at a pivotal moment: -These industries contribute $13.6 billion to our region's GDP and support over 60,000 jobs. - However, the industry is experiencing rapid changes driven by technological advancements, workforce shifts, and increasing global competition. Kent Valley, long a hub for these industries, must evolve to ensure continued success and growth. We've discussed the concept of focused industry collaboration, and now is the ideal time to come together to address these challenges. Purpose of the Roundtable This initiative was first introduced at our joint meeting with the Kent School Board last spring. The Kent Valley Air and Space Manufacturing Roundtable will serve as a collaborative platform where: - Industry leaders, educators, and government representatives can align educational programs with industry needs. - We can work together to ensure workforce development and drive economic vitality in our region. - We will be guided by the Next Generation Sector Partnerships model, which has a proven track record of facilitating effective collaboration between these critical stakeholders. Strong Support from Key Stakeholders I'm pleased to share that we've already garnered significant support for this initiative: - We have a national expert with local ties on Next Generation Industry Partnerships on board to facilitate the establishment of the Roundtable. - Superintendent Vela and the college presidents of Green River and Renton Technical Colleges are actively pursuing approvals from the Auburn and Renton School Districts. - Mayor Ralph has already secured committed support from the Mayors of Auburn and Renton, and Tukwila is close behind. Page 62 of 66 Page 3 of 4 October 14,2024 Briefings and Stakeholder Engagement To ensure all key stakeholders are fully engaged: - Briefings with air and space industry C-suite executives are planned for the end of this month. - Separate briefings for our largest employers, education partners, and industry organizations will take place between late September and the second week of October. What's in it for City Partners? The Kent Valley Air and Space Manufacturing Roundtable offers significant benefits for our city partners: - It provides a unique platform for focused collaboration on pre-competitive challenges that require collective action. - The Roundtable helps us understand and share the strengths, trends, and opportunities of existing companies in our region, which is crucial for informing our shared retention, growth, and attraction strategies. - This partnership also offers a meaningful venue for working with workforce development and education sectors around the complex needs of the aerospace industry, aligning these efforts with our broader regional economic growth goals. The Role of the City Council Your support is crucial for the success of this initiative. As public sector leaders, your endorsement will: - Help solidify partnerships across the region. - Demonstrate a unified commitment to strengthening the aerospace industry right here in Kent Valley. Economic Impact The Roundtable is more than just a forum—it's a pathway to: -Job creation in the aerospace sector. -Talent development that meets the needs of our local industry. - Sustained economic growth that will keep Kent Valley at the forefront of air and space manufacturing. Next Steps Looking ahead: Page 63 of 66 Page 4 of 4 October 14,2024 - We are planning an inaugural launch meeting in late October 2024. This meeting will bring together key stakeholders, including C-suite executives from Kent Valley employers, to officially kickstart the Roundtable. - We're committed to holding biannual meetings and forming Action Teams to ensure continuous progress and success. Page 64 of 66 ,Lq City of Tukwila Distribution: (----1 4tP D. Martinez Mayor McLeod �� Planning and Community T. Sharp M.Wine Y! Vat-, .A A. Papyan A.Youn Development Committee L. Humphrey 2 tits' v 0 s O Dennis Martinez, Chair I9oa O Tosh Sharp O Armen Papyan AGENDA MONDAY, OCTOBER 14, 2024— 5:30 PM ON-SITE PRESENCE: REMOTE PARTICIPATION FOR THE PUBLIC: TUKWILA CITY HALL 1-253-292-9750,ACCESS CODE:866559860# DUWAMISH CONFERENCE ROOM Click here to: Join Microsoft Teams Meetina 6300 SOUTHCENTER BOULEVARD For Technical Support: 1-206-433-7155 Item Recommended Action Page 1. BUSINESS AGENDA a. Kent Valley Air & Space Manufacturing Roundtable a. Forward to 10/21 Regular Pg.1 Memorandum of Understanding. Meeting Consent Agenda Derek Speck, Economic Development Administrator 2. MISCELLANEOUS Next Scheduled Meeting: December 09, 2024 The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800 (TukwilaCitvClerk(@TukwilaWA.aov)for assistance. Page 65 of 66 r1LAi,�, �= �sy ; \Z City of Tukwila a & o Thomas McLeod, Mayor 19o8 INFORMATIONAL MEMORANDUM TO: Planning and Community Development Committee FROM: Derek Speck, Economic Development Administrator CC: Thomas McLeod DATE: October 7, 2024 SUBJECT: Kent Valley Air and Space Manufacturing Roundtable ISSUE The Council is being requested to approve a Memorandum of Understanding expressing support to establish the Kent Valley Air and Space Manufacturing Roundtable. BACKGROUND The City of Kent has invited cities, educational institutions, and manufacturers in the air and space industries to form a strategic initiative called the Kent Valley Air and Space Manufacturing Roundtable.The purpose of the Roundtable is for Kent Valley C-level executives, educational institutions, and public sector representatives to collaborate and guide workforce development, public policy, and economic sustainability to retain and attract air and space manufacturing businesses. On September 17, 2024 the Kent City Council passed a motion expressing support for the Roundtable and approving a Memorandum of Understanding(MOU).The MOU is now being routed to the other cities and educational institutions for signatures. A copy is attached for Council's consideration. DISCUSSION According to a 2022 analysis by the Puget Sound Regional Council, Washington state is well positioned to compete in a growing commercial space economy. The air and space industry is already vital to our regional economy and presents an important opportunity for the City of Tukwila. Attracting and retaining advanced manufacturing and aerospace business is included in Strategy 1A in the City's Economic Development Strategy. Staff believes the Roundtable has the potential to be an effective way to support our air and space economy. Tukwila's role would be to support the Roundtable by collaborating. The City of Kent would take the lead to facilitate the work and there would be no financial contribution from Tukwila. FINANCIAL IMPACT This item has no financial or budgetary impact. RECOMMENDATION The Council is being asked to approve a motion expressing support and authorizing the Mayor to sign the Memorandum of Understanding at the October 21, 2024 Regular Meeting. ATTACHMENTS Memorandum of Understanding Page 66 of166