ORD 09-621ORDINANCE NO. 09 -621
AN ORDINANCE of the City of Federal Way, Washington, relating to
the establishment of the Local Revitalization Area Bound on the North
by S. 336th Street; Bound on the East by Pacific Highway S.; Bound on
the South by Undeveloped Land containing Kitt's Corner S. 336th Street
Regional Detention Pond; and Bound on the West by Mitchell Place,
Frito -Lay Industries, and the North Portion of 91h Avenue Center for the
Local Revitalization Financing Program.
WHEREAS, Second Substitute Senate Bill 5045 known as the Local Revitalization
Financing became effective on July 26, 2009; and
WHEREAS, the State Legislature expressly found that the state as a whole benefits from
investment in public infrastructure because it promotes community and economic development; and
WHEREAS, the State Legislature developed a process whereby a city may establish a Local
Revitalization Area ( "LRA ") and apply to the Department of Revenue for the state's and other taxing
districts' contribution of taxes from that area; and
WHEREAS, the applications are awarded on a first -come, first -serve basis with the total
number of applications limited to the State's total state -wide annual contribution of two million five
hundred thousand dollars; and
WHEREAS, the application must include an ordinance establishing the Local Revitalization
Area ( "LRA "); and
WHEREAS, the Department of Revenue will begin accepting LRA applications on
September 1, 2009.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DOES ORDAIN AS FOLLOWS:
Section 1. Proposed Public Improvements in the Local Revitalization Area (LRA).
Ordinance No. 09 -621 Page 1 of 11
The City anticipates using the LRA funds for the following types of public
improvements: rights -of -way construction, and related improvements.
Section 2. The Boundary of the LRA.
The LRA consists of tax parcel numbers: 2021049004; 2021049072; 2021049001;
2021049070; 2021049069; 2021049086; 2021049090; 2021049080; 2021049051; and the boundary
is generally: Bound on the North by S. 336th Street; Bound on the East by Pacific Highway S.; Bound
on the South by Undeveloped Land owned by Clare and Jasmin, Inc.; and Bound on the West by
Mitchell Place, Frito -Lay Industries, and the North Portion of 9th Avenue Center. See map of
boundary attached as Exhibit "A ".
Section 3. The Estimated Cost of the Proposed Public Improvements and the Portion of
These Costs to be Financed by the Local Revitalization Area Financing.
The following estimated costs of the proposed public improvements include:
• Two Million Nine Hundred Seventy -Six Thousand Seven Hundred Dollars
($2,976,700.00) for right -of -way improvements providing access to and within the
commercial, mixed -use portion of the proposed project, as well as connections to
Celebration Park and the Federal Way Community Center.
The City anticipates that seventy percent (70 %) of the above - mentioned right -of -way
improvement costs will be financed by the LRF funding program, if awarded by the state, with the
remaining to be funded by the project developer, together with potential grants, and other
public /private funding sources.
Section 4. The Estimated Time for Using the he City's Property Tax Allocation Revenues, and
the Revenues from Other Local Public Sources.
Ordinance No. 09 -621 Page 2 of I1.
The City will dedicate the portion of excise tax and property tax allocation revenues needed,
together with other resources, for a period not to exceed twenty -five years to match the amount of
LRF funding awarded from the state to finance the above proposed improvements.
Section 5. Commencement Date for Using the City's Property Tax Allocation and a List of
Taxing Districts that Have Not Adopted an Ordinance Removing the Entity as a Participating Taxing
Tlictr;�t
The City intends to begin using the City's excise tax and property tax allocation revenues for
the LRA financing by the later of:
..
1. July 1, 2011; or
2. July 1 of the year following LRA approval by DOR.
The following taxing districts have adopted resolutions and/or ordinances opting out to the
1. King County
2. King County Ferry District
3. King County Flood Control District
4. Port of Seattle
5. King County Library System
6. South King Fire and Rescue
The Federal Way School District ( "School District ") has not yet responded to the City's notice of
intent to create a LRA. The notice was sent to the School District on July 6, 2009. The City Council
approved and enacted this ordinance on August 4, 2009, in order to meet the September 1, 2009,
deadline for submission. The School Board does not convene a meeting until August 25, 2009. City
Ordinance No. 09 -621 Page 3 of 11
Staff contacted the School District and received verbal indications that the School District would
most likely opt out of the LRA.
Section 6. Findings.
The City Council finds the following in accordance with Section 103 of Second Substitute
Senate Bill 2045:
1. It is anticipated that the proposed public improvements in whole or in part using
LRF financing will encourage private development and increase the fair market
value of real property within the LRA.
2. The City has received a letter of intent from the owner of Federal Way Village,
LLC for the development of private improvements with the LRA.
3. The City anticipates that the private development in the LRA, as a result of the
public improvements, will be consistent with the City's Comprehensive Plan and
developing regulations.
4. The City will not use LRF funds to finance costs associated with the financing,
design, acquisition, construction, equipping, operating, maintaining, remodeling,
repairing and reequipping of public facilities funded with taxes collected under
RCW 82.14.048 or 82.14.390.
5. LRF financing:
a. Will not be used for the purpose of relocating a business from outside the LRA,
but within the state, into the LRA unless convincing evidence is provided that the
firm being relocated would otherwise leave the state;
b. Will improve the viability of existing business entities within the LRA;
Ordinance No.09 -621 Page 4 of 11
c. Will be used exclusively in the areas within the jurisdiction of the City deemed in
need of either economic development or redevelopment, or both, and absent
financing available under sections 601 and 602 of Second Substitute Senate Bill
5045 the proposed economic development or redevelopment would more than
likely not occur;
6. The proposed public improvements to be financed in whole or in part using LRF
financing are reasonably likely to:
a. Increase private investment within the LRA;
b. Increase employment with the LRA; and
c. Generate, over the period of time that the local sales and use tax will be imposed
under section 601 of Second Substitute Senate Bill 5045, increases in state and
local property tax, and sales and use tax revenues that are equal to or greater than
the respective state and local contributions made under Second Substitute Senate
Bill 5045.
Section 7. The Anticipated Rate of Sales and Use Tax that the City Intends to Impose if
Awarded a State Contribution.
The anticipated state sales and use tax rate for the LRA is .0094 %.
Section 8. The Anticipated Date when the Criteria for the Sales and Use Tax will be Met and
the Anticipated Date to Impose the Sales and Use Tax.
The City intends to begin using the City's sales and use tax allocation revenues for the LRF
financing by the later of-
1. July 1, 2011; or
Ordinance No. 09 -621 Page 5 of 11
2. July 1 of the year following LRA approval by DOR.
The City anticipates that tax imposed will be satisfied in up to twenty -five years from
issuance of the bond.
Section 9. Notice and Public Hearing.
Pursuant to section 104 of Second Substitute Senate Bill 5045 the City:
1. On July 6, 2009, thirty days prior to the public hearing, the City notified all taxing districts
within the geographic boundaries of the proposed RV W of the City's intent to create a LRA. A copy
of the notice is referenced and incorporated herein as Exhibit `B ".
2. Published notice of the public hearing in the official newspaper, The Federal Way Mirror,
ten days before the public hearing and posted notice in six conspicuous public places around the
proposed LRA.
3. The public hearing was held on August 4, 2009, at the regular City Council meeting. A
copy of the agenda is referenced and incorporated herein as Exhibit "C ".
Section 10. Severability. Should any section, subsection, paragraph, sentence, clause, or
phrase of this chapter, or its application to any person or situation, be declared unconstitutional or
invalid for any reason, such decision shall not affect the validity of the remaining portions of this
chapter or its application to any other person or situation. The City Council of the City of Federal
Way hereby declares that it would have adopted this chapter and each section, subsection,
sentence, clauses, phrase, or portion thereof, irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
Section 11. Corrections. The City Clerk and the codifiers of this ordinance are
Ordinance No. 09 -621 Page 6 of 11
authorized to make necessary corrections to this ordinance including, but not limited to, the
correction of scrivener /clerical errors, references, ordinance numbering, section/subsection
numbers and any references thereto.
Section 12. Ratification. Any act consistent with the authority and prior to the effective
date of this ordinance is hereby ratified and affirmed.
Section 13. Effective Date. By unanimous consent, the Council finds that this ordinance is
needed for the immediate support of city governments and is not subject to initiative or referendum
pursuant to FWRC 1.30. This ordinance shall take effect and be in force on August 20, 2009.
PASSED by the City Council of the City of Federal Way this 4th day of August, 2009.
CITY OF FEDERAL WAY
VYO,JACK OV Y
ATTEST:
NO i,,I MIA MW
APPROVED AS TO FORM:
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK: 07 -31 -09
PASSED BY THE CITY COUNCIL: 08 -04 -09
PUBLISHED: 08 -08 -09
EFFECTIVE DATE: 08 -20 -09
ORDINANCE NO.: 09-66+ Uq- I
Ordinance No. 09 -62) Page 7 of 11
Q=
cis
40 LL E
Cc
M N
'75 .4i
LL.
Co p
(*-D
LL m
CL Im rn
x (D 4f
ui LL i
W OU IoVd JUIiLH 9 AV KLIt
LA
P4
ch C) an
swNits
cN
N c-4 tV
$1d Not
00
14N
4
O
EXHIBIT B
OF
.ra
NOTICE OF PUBLIC HEARING
ON
ESTABLISHMENT OF A REVITALIZATION AREA
PURSUANT TO THE
COMMUNITY REVITALIZATION FINANCING (CRF) PROGRAM
(RCW 82.14, 82.32)
Pursuant to the State CRF Program, outlined in RCW 82.14 and 82.32, the City of Federal Way is
proposing to establish a Community Revitalization Area (CRA), encompassing a 44 -acre development
site at the southwest corner of South 336th Street and Pacific Highway South. The purpose of the CRA
is to finance public infrastructure improvements through incremental, local tax revenues generated
within the CRA, matched with State incremental tax revenues generated within the CRA. Such new
public infrastructure improvements are intended to complement and stimulate new private
redevelopment projects within the CRA that will provide housing, jobs and goods and services, and
increase the fair market value of real property within and nearby the CRA.
■ The name of the proposed CRA is the "Federal Way Village Community Revitalization Area."
■ The public hearing on this matter will be held during a regularly scheduled City Council
meeting at the following date, time and place:
7:00 p.m., Tuesday, August 4, 2009
City Council Chambers
City Hall
333258 th Ave South
The earliest possible date for City Council adoption of the proposed CRA will be August 4,
2009.
For more information and /or for a copy of the Ordinance adopting the proposed CRA, you
may contact Economic Development Director Patrick Doherty at
pate °ickd!,' cityoffederal ,,vay.com, by phone at 253- 835 -2612 or by mail at PO Box 9718,
Federal Way, WA 98063 -9718.
Ordinance No. 09 -621 Page 9 of 11
EXHIBIT C
CITY OF
Federal Way
AGENDA
FEDERAL WAY CITY COUNCIL
SPECIAL & REGULAR MEETING
Council Chambers - City Hall
AUGUST 4, 2009
www.cityoffederalway.com
SPECIAL MEETING - 5:30 P.M.
1. CALL MEETING TO ORDER
2. EXECUTIVE SESSION
a. Potential Litigation Pursuant to RCW 42.30.110(1)(i),
3. ADJOURN
REGULAR MEETING - 7:00 P.M.
1. CALL MEETING TO ORDER
2. PLEDGE OF ALLEGIANCE
3. PRESENTATIONS
a. Ceremonial Swearing In of Police Officers
b. City Manager Emerging Issues / Introduction of New Employees
4. CITIZEN COMMENT
PLEASE COMPLETE A PINK SLIP & PRESENT IT TO THE CITY CLERK
PRIOR TO SPEAKING.. When recognized by the Mayor, come forward to the
podium and state your name for the record. PLEASE LIMIT YOUR
COMMENTS TO THREE (3) MINUTES. The Mayor may interrupt comments
that exceed three minutes, relate negatively to other individuals, or are
otherwise inappropriate.
5. CONSENT AGENDA
Items listed below have been previously reviewed in their entirety by a Council Committee of three
members and brought before full Council for approval, all items are enacted by one motion. Individual
items may be removed by a Councilmember for separate discussion and subsequent motion.
a. Minutes: July 21, 2009 Special Meeting, July 21, 2009 Regular Meeting and July
28, 2009 Special Meeting
b. Vouchers F DRAC 7 -28 -09
Ordinance No. 09 -621 Page 10 of 11
c. Monthly Financial Report FEDRAC 7 -28 -09
d. Approval for Purchase and Certification of City's Electronic Records
Management System FEDRAC 7 -28 -09
e. RESOLUTION Federal Way /Valley Cities Fiber Interconnect Grant FEDRAC 7 -28 -os
f. RESOLUTION Setting the Tax Rate for the LIFT Area FEDRAC 7 -28 -09
g. ORCA Card purchase FEDRAC 7 -28 -09
h. Authorization to Bid 2010 Fleet Maintenance Contract FEDRAC 7 -z8 -os
i. Grant Approvals Solid Waste & Recycling 2010 -2011 FEDRAC 7 -28 -09
j. Traffic Counter Replacement FEDRAC -28 -09
k. Bid Award: 20th Place SW Emergency Slide Repair LUTC 7 -20 -09
I. Grant Approvals for Transportation Improvement Projects LUTC 7 -20 -09
m. Authorization to Bid and Design Street Lighting on 20th Way South — S. 324th
Street to S. 330th Street LUTC 7 -20-09
6. PUBLIC HEARING
a. Establishment of a Local Revitalization Area (LRA)
• Staff Presentation
• Council Discussion
• ORDINANCE- Introduction and Enactment
7. COUNCIL BUSINESS
a. Suspend Council Rules and Cancel August 18, 2009 Regular Council Meeting
b. Approve Contract for Search Firm for City Manager Recruitment
c. Municipal Court Options
8. INTRODUCTION AND FIRST READING OF ORDINANCES
a. Creating North Lake Management District No. 2.
9. COUNCIL REPORTS
10. CITY MANAGER REPORT
11. EXECUTIVE SESSION
a. Potential Litigation Pursuant to RCW 42.30.110(1)(i),
12. ADJOURNMENT
The Council may add items and take action on items not listed on the agenda.
Ordinance No. 09-621 Page 11 of 11
CITY OF
Federal Way
ORDINANCE SUMMARY
At their August 4, 2009 Regular Meeting, the City of Federal Way, Washington,
passed the following Ordinance:
ORDINANCE NO. 09 -621
AN ORDINANCE of the City of Federal Way, Washington,
relating to the establishment of the Local Revitalization
Area Bound on the North by S. 336th Street; Bound on the
East by Pacific Highway S.; Bound on the South by
Undeveloped Land containing Kitt's Corner S. 336th Street
Regional Detention Pond; and Bound on the West by
Mitchell Place, Frito -Lay Industries, and the North Portion
of 9th Avenue Center for the Local Revitalization Financing
Program.
The full text of the ordinance is available by contacting the City Clerk's office at
253 - 835 -2540. Copies and will be mailed upon request, in accordance with the
city's fee schedule.
DATED this 5th day of August 2009
Carol McNeilly, CIVIC, City Clerk
Published Federal Way Mirror 8 -8 -2009