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HomeMy WebLinkAbout03-07-2014 03/07/2014Planning and Community ACITY or_`' • Development t March 7, 2014 - 2:00 PM --� WASHINGTON Annex Conference Room 2 MINUTES CALL TO ORDER Chair John Holman called the meeting to order at 2:00 p.m. in Annex Conference Room 2 located on the second floor of One Main Professional Plaza, One East Main Street, Auburn, Washington. A. Roll Call Chair John Holman, Vice -Chair Largo Wales, and Member Yolanda Trout were present. Also present were Mayor Nancy Backus, Director of Community Development & Public Works Kevin Snyder, Assistant Director of Community Development Services Jeff Tate, Planning Services Manager Elizabeth Chamberlain, Economic Development Manager Doug Lein, Arts Coordinator Maija McKnight, and Office Assistant Sue Van Slyke. Members of the public present were: Kim Lorenz, Jim Honan, Casey Sheehan, Erik Little, Jill Moodie and Brent Carson of Van Ness Feldman, LLP B. Announcements There were no announcements. C. Agenda Modifications There was one agenda modification transmitting the following agenda item: DISCUSSION ITEMS IV. E. Downtown Parking Requirements` (Tate) Discussion on options /ideas for the downtown parking permit program. II. CONSENT AGENDA A. Minutes - February 24, 2014 (Tate) Vice -Chair Wales moved and Member Trout seconded to approve the February 24, 2014 Planning and Community Development Committee Page 1 of 7 minutes as written. Motion carried unanimously. 3 -0 III. ACTION A. Resolution No. 5048 (McKnight) Arts Coordinator Maija McKnight provided the staff report on Resolution No. 5048. The City of Auburn has been awarded a grant from the Cultural Development Authority of King County ( "4Culture ") in the sum of $17,000.00. The Committee expressed their support of the arts programming in the City of Auburn and is supportive of Resolution No. 5048. Vice -Chair Wales moved and member Trout seconded to recommend City Council adopt Resolution No. 5048. Motion carried unanimously. 3 -0 IV. DISCUSSION ITEMS A. Environmental Park (EP) vs. M -1 Zoning Designation (Tate) Assistant Director of Community Development Services Jeff Tate provided background information on the Environmental Park vs. M -1 Zoning Designation discussion. The Environmental Park (EP) zoning designation was adopted by City Council in 2006. Since 2006, only 9 permits have been issued in the EP zone, representing a valuation of $456,000.00. Under the M -1 and M -2 zoning designation there have been 220 permits issued since 2006, representing a valuation of $154,955,041.00. The intent of the EP zoning designation was to create uses in proximity to the Auburn Environmental Park that benefit from that location and complement the park and its environmental focus. The intent was to promote good stewardship and ethics by uses that complemented the park and its environmental focus. The property owners of those existing developments face challenges when trying to sell or lease property since the current EP zoning does not compliment the existing uses that typically occupy those buildings. Staff reviewed three options available that could remedy development and use challenges with the policy and regulatory language of the EP zoning designation and recommended the Committee consider the following two actions: Page 2 of 7 Proceed with option 1 as an immediate action that would provide relief and greater flexibility to owners and managers of EP zoned properties. Based on City Council's recent adoption of Ordinance 6489 on December 2, 2013 there is adequate justification to amend the EP zoning designation by changing "Warehousing and Distribution" from a prohibited use to a permitted use. Also proceed with option 3 which would allow staff, Council, the Planning Commission, affected property owners, and the community to redefine and enhance the goals and purpose that are defined in the present EP zoning designation so that it is better positioned to realize what was intended as part of the major comprehensive plan update. Audience member comments: Kim Lorenz, Sound Tire Building, 402 Lund Road Mr. Lorenz thanked the City, Mayor Backus, and staff for their attention on this zoning issue. Mr. Lorenz provided an overview of his business and when his building was built. The buildings were originally built under the M -1 zoning designation. Mr. Lorenz explained that in 2013 they received an offer to purchase the building. The sale fell through because of a misunderstanding on his part that the property was zoned M -1 and that recent code changes in that zone, pertaining to "Warehouse and Distribution" as a permitted use, addressed his property. Just before the closing, the attorney for the buyer spoke to City staff and confirmed that the zoning did not change; the property remained as EP zoning. It was confirmed that if the property were to be vacant for 6 months, it could not be used as distribution property as it would be a nonconforming use. Mr. Lorenz supports staffs recommended approach. Jill Modie, Volupe Building, 902 4th Street SW, Auburn Ms. Modie thanked the Committee for their time. She stated her building was built as an investment in 1999. In 2013 she became aware of the property's EP zoning designation because a tenant abandoned their space and filed bankruptcy, leaving the property vacant for several months. A tenant was able to occupy the space within the 6 months allowed by code for non - conforming structures. Ms. Modie explained, in December 2014 her loan balloon payment is due. She is concerned that she will not be able to refinance if the bank reviews to see that the property had been rezoned EP in 2006 and that "Warehouse and Distribution" is a non - con - conforming use. Page 3 of 7 Eric Little, Caddis Building, 1028 4th Street SW, Auburn Mr. Little stated, that his building is approximately 43,000 sq. ft. and was built in 1999. It was built and occupied for the permitted use of "Warehouse and Distribution ", with a M -1 zoning designation. Approximately 20 people are employed on site. Mr. Little is also concerned that if if the space is empty for 6 months the space would be difficult to lease or sell due to the non - conforming status. Mr. Little stated that within two years they will need to refinance the building and will face the issue of trying to procure a loan with a non- conforming space. Even a sale of the building would be difficult due to the non - conforming use. Mr. Little stated that he is appreciative of the time and attention staff has taken on this zoning issue. Councilmember Holman thanked the owners for bringing this matter to the attention of City staff; the City is dependent on its existing businesses that operate within the City. Jim Honan, Neil Walter Company, 19625 62nd Ave., Kent Mr. Honan has been working as a commercial estate broker in this area for 24 years and represents Mr. Lorenz on his potential sale. Mr. Honan distributed a handout showing some industrial lease comparables from 2006 forward (the origination of the EP zone). Brent Carson, Van Ness Feldman, LLP, 719 2nd Ave., Ste. 1150, Seattle Mr. Carson explained, he is a land -use attorney representing the property owners who have been talking about the problems that they have been facing within the EP zone. They would like to discuss solutions. Mr. Carson thanked the Council, Mayor and staff for addressing the zoning issues. Mr. Carson stated he has read the recommendation noted in Assistant Director Tate's memorandum and is supportive of those recommendations. He emphasized, if there is an immediate need for the owners to sell, refinance or lease their property Option 1, amending ACC 18.23.030 by changing "Warehousing and Distribution" from a prohibited use to a permitted use in the EP zone would provide immediate relief. Eventually rezoning the property to M -1 makes sense and ultimately that is what the property owners would like, but option 1 would go a long way to relieve the angst of lenders and buyers. The owners' combined recommendation of Option 1 and Option No. 3 would be our recommendation. The Committee thanked those providing comment for their time, positive suggestions, and willingness to cooperate with City staff. A discussion was held as to the benefits of opening up the use in the EP zone to "Warehouse and Distribution ". Page 4 of 7 The Committee concurred that Option 1 and Option 3 would be their recommendation in order to provide relief for the business community and also provide the City an opportunity to review the goals and purposes of the EP zoning designation. Assistant Director Tate explained that to implement Option 1, the process will need to go before the Planning Commission for recommendation and staff should be able to complete Option 1 by June. B. Local Revitalization Financing (LRF) Remaining Funds (Chamberlain) Review staff recommended projects(s) to obligate the remaining LRF funds. Planning Services Manager Elizabeth Chamberlain provided the staff report. There is a remaining balance of $557,000.00 comprised of $175,000.00 in LRF funds and $382,000.00 in City funds allocated to the downtown infrastructure improvements. The LRF funds are restricted to the urban center and for design /construction projects. Staff reviewed several proposed project ideas that the Committee could evaluate moving forward with the available funds: -Develop a streetscape /urban design for Main Street between C Street SW and HE Street NW that can be taken to obtain other grant funds or dedicate future City funds for detailed design and construction; this would also include a design for B Street Plaza. • Address the City owned parking lot between Safeway and Main Street business: includes survey work and exploring street vacations to create one whole tax parcel; a redesign of the parking lot creating a more efficient use of the parcel and potentially obtain additional parking stalls. A discussion was held regarding the streetscape /urban design for Main Street, constructing the remaining kiosks and placement of the banners and kiosks within downtown. Director Snyder explained that as part of the streetscape /urban design for Main Street they would be taking a look at the urban design elements to see how the space works and feels functionally within the right -of -way. The banner poles and other elements will reviewed as part of the design element. A discussion was held regarding the construction of the remaining . kiosks. Staff explained that if the City were to proceed with the streetscape /urban design it may allow the City to use it for the basis to screen for additional funding. The additional kiosks are important but Page 5 of 7 staff pointed out that getting the design completed will position the City to pursue grant funding to complete the rest of Main Street and ultimately provide a greater return on investment rather than dedicating the $175,000.00 to the pedestrian kiosk up front. Constructing one or two a year may be of more benefit to the City in the long run, staff can continue to seek additional funding opportunities but in the meantime use the lump sum to pursue streetscape /urban design. Ms. Chamberlain stated that it is possible that one more kiosk can be constructed with some of the additional funds. The Committee discussed the options with staff and was supportive of staffs recommendations. C. Director's Report (Tate) Assistant Director Tate reported that of the 3500 business license renewals the City has approximately 181 businesses yet to renew. At this time staff is calling businesses to assist them in their renewals before moving the remainder to renew forward to Code Enforcement for assistance. The City Hall Phase 2 pre- construction meeting will be held with Lincoln Construction Inc and construction will be March 17, 2014. D. PCDC Matrix (Tate) There were no changes or additions. Staff updated the Committee on several items. E. Downtown Parking Requirements Assistant Director of Community Development Services, Jeff Tate, provided a brief history of the City's downtown parking. Over the last 6 months several actions have occurred that have an impact on the City's downtown parking permit program. The sale of two full City blocks from the City to a private developer. Prior to the sale these two City blocks were made available for parking to downtown businesses, downtown residents, and commuters using Sound Transit in 53 permit spots and 3 hour public parking. When the lots were sold the developer contracted with Diamond Parking to make both lots available for parking permits at a rate of $25 per month for one of the blocks and $15 per month for the other block. The developer also expanded the permit parking supply from 53 spaces to 198 spaces. The developer will continue to allow parking for an additional year on one block and two years on the other block, based on the estimates of the development of the blocks. The City was selling approximately 56 spaces in December, 2013 Page 6 of 7 based on a policy change to increase parking spaces available. In December 2013, January 2014, and February 2014 the Permit Center sold 56 parking permits, the limit, and did not have to turn any customers away. In March 2014, the Permit Center has started to turn customers away because we reached the permit maximum. These customers are unhappy that their options are limited to either moving their vehicle every three hours or to park several blocks away on the lots managed by Diamond Parking. Staff reviewed the options outlined in the memo and those options were discussed. The Committee provided the following recommendations: Explore expanding parking supply through contacting property owners who have an oversupply of parking about potential permit lease options • Explore further the idea of assigning parking stalls Discuss with other jurisdictions their parking programs and our parking options and ideas. V. ADJOURNMENT There being no further business to come before the Planning and Community Development Committee, the meeting was adjourned at 4:16 p.m. Approved this aq day of WorM , 2014. Tina Kriss Secretary, Comm nit Development Services Page 7 of 7