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Ord 99-358 ORDINANCE NO. 99-~8 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, ANNEXING APPROXIMATELY 1.25 ACRES, LOCATED EAST OF INTERSTATE 5, WEST OF MILITARY ROAD, AND APPROXIMATELY 600 FEET NORTH OF SOUTH 320m STREET, AT WEYERHAEUSER WAY SOUTH (IF EXTENDED). WHEREAS, RCW 35A.14.010 authorizes the City of Federal Way to annex any portion of a county not incorporated as part of a city or town but lying contiguous to the City of Federal Way; and WHEREAS, on May 5,1999, pursuaI!t to RCW 35A.l4.120, John Elley, as owner of not less than ten percent (10%) in assessed valuation of the property proposed for annexation, as certified by the City Clerk, filed a Notice of Intention to Petition for Annexation to the City of Federal Way approximately 1.25 acres of property ("Annexation Property"), located contiguous to the northeast boundary of the City of Federal Way; and WHEREAS, on June IS, 1999, the City Council accepted the 10% Petition, authorized the preparation of a Petition for Annexation, and required the assumption of a pro rata proportion of existing City indebtedness by the Annexation Property; and WHEREAS, the City Council established Comprehensive Plan and Zoning designations, subject to a Development Agreement for the Annexation Property, on December IS, 1998, pursuant to Ordinances No. 98-330; and No. 98-331, respectiyely; and WHEREAS, the annexation action is exempt from all environmental review pursuant to RCW 43.2IC.222; and ORD # 99-358, PAGE I t(Q)~1f WHEREAS, the Annexation Property is legally described and depicted in a map contained in Exhibit A, which is attached hereto and incorporated herein by reference; and WHEREAS, on Noyember 16, 1999, the City Council held a public hearing, after public notice as required by law, on the proposed annexation of the subject property, and WHEREAS, on Noyember 16, 1999, the City Council adopted Resolution No. 99- J!!5.. declaring and giving notice of its intention to annex the subject property; and WHEREAS, the City Council considered the annexation at its meeting on November 16, 1999, and finds that annexation of the subject property would promote the health, safety and welfare of the citizens of Federal Way;and WHEREAS, Mr. Elley has complied ~th the Council's conditions to annexation, as set forth in Resolution No. 99- 30~ NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: Section I. Annexation. The City òfFederai Way hereby annexes approximately 1.25 acres, located east ofInterstate 5, west of Military Road, and approximately 600 feet north of South 320th Street, at Weyerhaeuser Way South, if extended ("Annexed Property") and as legally described and depicted in Exhibit A, which is attached hereto and incorporated herein by reference. The Annexed Property shall become a part of the City of Federal Way, Washington, as of the effectiye date of this Ordinance, subject to laws and ordinances, regulations and plans of the City, as they now exist or may hereafter be amended or adopted. Section 2. Indebtedness. The Annexed Property shall assume its pro rata share of existing City indebtedness, and shall be assessed and taxed at the same rate and on the same basis ORD # 99-358, PAGE 2 as other property within the City to pay for any and all outstanding indebtedness of the City approved by the voters, contracted for or incurred prior to or existing as of the effective date of this Ordinance. Section 3. Filing. The City Manager and/or his designee is directed to file forthwith a copy of this Ordinance, duly certified as a true and correct copy, with the County Council of King County, pursuant to RCW 35A.14.l40. Section 4. Severabilitv. The provisions of this ordinance are declared separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance or the inyalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of the ordinance, or the ,validity of its application to other persons or circumstances. Section 5. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affinned. Section 6. Effectiye Date. This 'ordinance shall take effect and be in force 45 days after the date on which the Notice ofIntention to Annex is filed with the Washington State Boundary Review Board ("BRB") for King County pursuant to Resolution No. 99-JQL., if no person or entity invokes the jurisdiction of the BRB, or on the effective date ofBRB approval of the annexation if BRB jurisdiction is inyoked. PASSED by the City Council of the City of Federal Way this ~ day of December ,1999. ORD #99-358 ,PAGE 3 APPROVED AS TO FORM: ~ LÒNDI K. LI~DEU FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. 11/09/99 12/07/99 12/11/99 1/28/00 99-358 K:\CD\ORDINA \TRACTl7 .ORD ORD #~, PAGE 4 '.. ( . \,-j, <: ANNEXA TrON DESCRIPTION QUADRANT RES NORTH, TRACT 17 PARCEL THAT PORTION OF OF LOT 17, MIDWAY SUBURBA..1~ TRACTS ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 38 OF PLATS, PAGE'40, IN KING COUNTY, WASHINGTON, L YlNGSOUTHERL Y OF THE SOUTHEASTERLY MARG(N OF THE BONNEVILLE POWER ADMINISTRATION'S TRANSMISSION Lll\'E RIGHT OF WAY, 200 FEET IN WIDTH, FOR COVINGTON-TACOMA TRANSMISSION LINES ~OS. 1 AND 2. AS SAID R[GHT OF WAY EXISTED PRIOR TO NOVEMBER 29, 1958. DESCRIPTION BY W&H PACIFIC, INc. .'i /fi!i / ¿ N:a ROBERTE. WALUS;P.LS.18102 ~<1'.t? 2';- /'79'7 DATE / , "'o"'cn""""'wo..."..",."'-CL<.~ Ð:?'~ES, "5/ 2cQ:, RECEIVED BY COMMUNIIY oEVaoPMENT DE?ARfMHr, SEP j 6 1999 --- EXHIBIT I'¡;. (( EXHIBIT  . , . 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DATED DECEMBER 9, '998 AND ESII SURVCY í oRAY,We R£CO.'?OEO IN VOLUME 75 0,'" SURVCYS ON PAe": 203, ~ RECORDS O,C' KINe COUNTY, , Q} 1, '.'02 /ß .. , ~.ç, "'" ¡ç', i . ' :'::,:' i I t~,~~;;::::,:,,~~:~~,,1 ( r 16 PACIFIC -- EXHIBIT {( If I( AI�II�TC�ATION DLSrRIPTION QUAllItANT RES NORTH, TRAC1' t7 PARCEL THAT PORTION OF OF LOT 17, MIDWAY SUBURBAl� TRACTS, ACCORDING TO THE PLAT THLP..EOF, RECORDED IN VOLWi IE 38 OF PLATS, PAGE 40, lN K1NG COUNTY, ��'ASHINGTON, LYNG SOUTHERLY OF TEiE SOUTHEASTERLY MARGIN OF THE BO�INEVILL� PO\�IER ADMINISTRATION'S TRAI�TS?vlISSIOI�T LII�TE RIGHT OF WAY, 200 FEET IN WIDTH, FOR COVINGTON-TACOVIA TRANSvIISSIOl�i LINES �OS. 1 A:I�'D 2, AS SAID RIGHT OF WAY EXISTED PRIOR TO NOVEMBER 29, 1958. DCSCRIl'TIOi�i BY V�'�:H PACIFIC, INC. 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FEB. 199�p) Np^_'_ ;'47"l.� E.i�J:D2 N8�'44'4��}I 2oo5.0i�(-$�i� t6 15 2' F�CCED vnrx S 320TN ST_ ��O CONC�� i� 1:: r;� T;,Ch, lN CkS� S8° 03'19 STON�" MON (ES1d F�3 990) 2oo�..iS UM£NT ,PACI�IC ua..-. t,:.� P�p_CNAY 3'3: i��r �t�lt'tl.�C: J:: TCL• K "-i COY 0902T Z ��et C¢�10 t '�r 1t2S193f ta .—t 4.s. FEDERr sc�• W TH Cx�SE�EO 'X' (ES�.! FE@. 1990) QU l RECEI �D BY RESIDEI��TIAL NOf���nro�ow�,,.F:�, TRA� T 17 ANNEXA Tl 1� ig9a E �'HI BI T Y G�✓/? SHINC; ON cJ`_, a •:7. '1,_ t:A4,. SO.:i�1,Q( f1�.... S a:�: 2lOS/00 )F� �7 `J r� FEDERAL WAY DEPARTMENT OF COMMUNITY DEVELOPMENT SERVICES STAFF REPORT TO THE FEDERAL WAY CITY COUNCIL "Tract 17" Annexation Pet�t�on Federal Way File No: ANN99-0001 Public Hearing: November 16, 1999 7:00 pm City Council Chambers Federal Way City Hall 33530 First Way South (253.661.4118) Report prepared by: Lori Michaelson, AICP, Senior Planner �J TABLE OF CONTENTS Section r� L 1. GENERAL INFORMATION 1 2. ACTIONS REQUESTED 1 3. HISTORY AND BACKGROUND 2 4. COMPREHENSIVE PLAN AND ZONING DESIGNATIONS 3 5. ENVIRONMENTAL REVIEW 3 6. LAND USE AND NEIGHBORHOOD CHARACTERISTICS 4 7. PUBLIC FACILITIES AND SERVICES 4 8. ANNEXATION-RELATED COSTS AND REVENUES TO THE CITY 7 9. DECISIONAL CRITERIA 7 10 FINDINGS 11. STAFF RECOMMENDATION 9 F.xhibits Exhibit A: Sixty Percent Annexation Petition Exhibit B: Annexation Area Map Exhibit C: Federal Way Potential Annexation Area (PAA) Map Exhibit D: City Clerk Certification Exhibit E: E�sting Comprehensive Plan Map Exhibit F: Existing Zoning Map Exhibit G: Development Agreement Fxhibit H.• Master Site Plan, Quadrant (e�ibit to "residential north" annexation staff report, File No. ANN98-0001) Exhibit I: Costs and Revenues to the City Associated with the Annexation (Section IX of "residential north" annexation staffreport, File No. ANN98-0001) StaffReport to the City Council File No. ANN99-0001 November 16, 1999 1. GENERAL INFORMATION Project Name: 2. Applicant: Tract 17 Annexation John R. Elley 3435 South 316�` Street Auburn, WA 98001 Property Location Within King County, adjacent to Federal Way City limits, east of Interstate 5, west of Military Road South, approximately 600 feet north of South 320"` Street, at Weyerhaeuser Way South (if extended). Parcel Numbers: Project Area: Federal Way Comprehensive Pian and Zoning: ACTIONS REQUESTED 551560-0090 (Tract 17, Midway Suburban Tracts) 1.25 acres Multi-Family and RM-3600 (Multi Family Residential, 3600 square feet of lot area per dwelling unit); modified to 6 units per gross acre pursuant to an adopted development agreement. The City has received an annexation petition from 7ohn Elley (Exhibit A) to annex a 1.25- acre parcel of land located within unincorporated King County and known as "Tract 17" (Exhibit B). The proposed annexation area is contiguous to existing City of Federal Way boundaries, within the City's Potential Annexation Area (Exhibit C). Under State Law and Federal Way City Code (FWCC) the City Council may decide on the proposed annexation following a public hearing, scheduled for November 16, 1999. There are no statutory requirements for the public hearing other than to provide an opportunity for public testimony. Following the hearing, the City Council may accept the 60 percent petition; and by resolution 1 RCW 35A.14.010 authorizes cities to annex properly�, 35A.14.120 et seq., governs the 60% petition method of annexation; RCW 36.70B.170 et seq. governs development agreements. 2 FWCC Article II[, Annexations. -1- `r.,' StaffReport to the City Councid File No. A1VN99-0001 November 16,1999 declare and give notice of intention to annex the subject property and direct staffto submit a Notice of Intention to Annex to the King County Boundary Review Board and make a motion to move the ordinance approving the annexation to second reading. 3. HISTORY AND BACKGROUND On May 5, 1999, the City received a"ten percent petition from the Mr. John Elley, sole owner of the property proposed for annexation, jointly with the Quadrant Corporation. On June 15, 1999, the City Council accepted the 10% petition with geographic boundaries as proposed, authorized circulation of the 60% petition, and directed that the property within the annexation area assume its proportionate shaxe of the City's bonded indebtedness upon annexation. On September 16, 1999, the City received Mr. Elley's formal annexation petition (Exhibit A). The petition was certified by the Federal Way City Clerk (Exhibit D), and a City Council public hearing on the petition was scheduled. The Tract 17 annexation petition is a follow-up to Quadrant's previous annexation petition known as "residential north'", which was approved by the City Council in 1998, but which inadvertently left out Tract 17. However, annexation and future development of Tract 17 as part of the residential north the property was contemplated by the Council's adoption of pre-annexation comprehensive plan and zoning designations for Tract 17, subject to a Development Agreement, concurrent and consistent with the residential north property. Mr. Elley and Quadrant have confirmed that their intent is still to consolidate Tract 17 under common ownership and future development plans with the adj acent residential north property. The Tract 17 annexation proposal effectively constitutes a minor addition to the 1998 3 Because the anne�cation is subject to review by the King County Boundary Review Board (BRB) (RCW 36.93.090.100), an annexation ordinance passed following a hearing but before board review is not effective. The City Council must first adopt a resolution of intent to annex, to suthorize the filing of a notice of intent with the BRB. If the Council wishes to simultaneously adopt an annexation ordinance, it may do so conditioned upon BRB approval. 4 If clearance is received from the boundary review board, and if no suf�"icient referendum petition is filed within 45 days from passage of the annexation ordinance (excluding the date of passage), the annexation will be deemed sutomatically approved. 5 The Notice of Intention to Petition forAnnexation is commonly called the "ten percent petition." 6 Commonly called the "sixty percent petition." Refer to 'Residential North"Annexation and DevelopmentAgreement, CityFile No. ANN98-0001. Pertinerit patts from ttus report are referenced herein and ext►ibited hereto. -2- StaffReport to the City Council File No. AN�1/99-0001 November 16, 1999 "residential north" annexation proposal. Therefore, the Tract 17 annexation analysis is based largely on the residential north staff report, with relevant sections of the previous report sumrnarized herein and/or attached. 4. COMPREHENSIVE PLAN AND ZONING DESIGNATIONS As noted above, pre-annexation comprehensive plan and zoning designations subject to a Development Agreement was adopted for Tract 17 by the City Council on December 15, 1998. These designations included multi family residential, and RM-360�0, respectively (Exhibits E and F� and were consistent with the adjacent Quadrant residential north property. (Former King County comprehensive plan and zoning designations included Urban Residential and R-18 (Residential; 18 units per acre), respectively. The Development Agreement (Exhibit G) contemplates development of Tract 17 consistent with the applicant's master site plan for the residential north property (Exhibit I�. The principal purpose of the agreement is to ensure lower density residential development on the site than the underlying zoning of RM-3600 would allow, by limiting the maximum number of dwelling units to six (6) per gross acre. The agreement also preserves the ability to extend the BPA trail system across a portion of the site (within the BPA utility easement). The agreement contains no other specific development regulations or design standards. All applicable City codes, policies, regulations, and standards, will apply to the development, including site and building design, infrastructure design and construction, and nonconformance provisions. Site development is also subject to review under SEPA and to any resulting mitigation measures. It should be noted that Quadrant has submitted a rezone request for Tract 17 and the residential north property, from residential to office. The request is being processed as part of the City's annual updates to the comprehensive plan and zoning map. The staffreport for the 1999 updates will include an analysis of development-related impacts associated with the requested chan�es. However, pending a Council decision on Quadrant's request, the existing zoning and development agreement remain in effect and are the basis for this staff report. 5. ENVIRONMENTAL REV�W Annexation is an exempt action under the State Environmental Policy Act (SEPA) (RCW 43.21C.222). A Determination ofNon-Significance (DNS) was issued on May 6, 1998, for 8 City Council Ordinance No. 98-330. 9 City Council Ordinance No. 98-331. -3- "T� n LJ StaffReport to the Ciry Council File No. ANN99-0001 November 16, 1999 L_ J the comprehensive plan and zoning designations for the proposed annexation area. Future development ofthe property will be subject to SEPA at the time of application, as well as any resulting mitigation measures as may be required to control project-related adverse impacts. 6. LAND USE AND NEIGHBORHOOD CHARACTERISTICS Tract 17 is presently vacant and undeveloped. Existing land uses and zoning in the general vicinity include residential and office. Properties to the west and south of the site are generally undeveloped and are part of the "residential north" area previously annexed. No environmentally sensitive areas are known to exist on or within 100 feet of Tract 17. However, wetlands have been identified to the south and west of the property. A fire station is located on South 320'� Street, southeast of the site. The BPA easement runs dia�onally through the north portion of Tract 17, which is contemplated as a future regional trail system by the adopted development agreement. Refer to Exhibits E and F for e�sting comprehensive plan and zoning designations for the site and sunounding area. As previously noted, Tract 17 is anticipated to be developed consistent with the "residential north" property, subject to all applicable City codes, policies, and regulations. 7. PUBLIC FACILITIES AND SERVICES Public facilities and services (urban services) are available to the annexation area and can efficiently be provided by the City and its service area providers. Urban services include transportation, police, fire, water, sewer, surface water, parks/recreation, and general government services. The following detail is drawn from the "residential north" annexation staff report, which is relevant and applicable to the current proposal. A. Transportation Specific transportation improvements and requirements will be determined during development review of the proposal, under the Federal Way City Code and Comprehensive Plan, SEPA, and a11 other applicable codes, policies, and regulations. Based on the current development plan for Tract 17 and the residential north property (Exhibit I�, vehicle access to the development will be provided from l0 �rovements to existing and new s4reets, any off site mitigation, and related facilides, as required for the safe and efficie�nt movemeat of vehicles, pedesfrians, bicycles, public transportation, emergency vehicles, and school buses, will he detem�ined through the development and enviromnental review processes and applied to the project. 1 Quadrant's conceptual site plan for the "residential north" properties, reviewed by the City Council in 1998, included Tract 17. -4- ►;/T/ r StaffReport to the Ciry Councid File No. ANN99-0001 November 16, 1999 i South 320�` Street. South 320�` Street is classified as a principal arterial by the Federal Way Comprehensive Plan (FWCP). Ultimate street improvements to South 320th Street are expected to include a six to seven lane street section, with sidewalk, street lighting, planted median and street trees on both sides. The development plan also contemplates a northerly extension of Weyerhaeuser Way South, from South 320�` Street through the site, and reserving future access to the north. The e�sting segment of Weyerhaeuser Way South (south of 320'� Street) is classified as a principal collector. Based on the development proposal, Weyerhaeuser Way north of 320'� will be built to the City's residential collector standards, including a two to three lane street with sidewalks, street trees, lighting, etc. The e�ension of Weyerhaeuser Way north from South 320�', with ultimate connection to Military Road South, will provide an essential transportation corridor to the annexation area and to other adjacent properties within the City's Potential Annexation Area (PAA). B. Public Safety Police and fire services are available to the site and will be provided by the City's Public Safety Department and Federal Way Fire Department.' King County provides jail and court services to the City ofFederal Way on a contractual basis. Emergency medical services (EMS) are dispatched by the fire district and paid for by property taxes. A safe and secure environment will be ensured through cunent building and fire codes, as well as site design requirements, including application of"Crime Prevention Through Environmental Design" (CPTED) principles, as appropriate. C. Utilities Domestic water and sanitary sewer are currently available to the area and can be provided by the Lakehaven Utility District. The District currently provides water to this area, and sanitary sewer is available from South 320'� Street through a developer extension agreement. The annexation area is located within the District's approved sewer service area boundary, and the District currently has capacity for collection and treatment of sewerage from the annexation area. Other utility providers are expected to include Puget Sound Energy (electricity, power poles, and equipment), Federal Way Disposal (solid waste and recycling collection), and TCI (cable). 12 Federat Way Fire Departmait is owned and operated by the King County Fire DistricK. No firo-related c�t will accrue to the City as a result ofthe amtexation. -5- StaffReport to the City Council File No. ANN99-0001 November 16, 1999 D. Surface Water Quantity and Quality Tract 17 is located in the Green River Drainage Basin. The site developer will be required to provide on site facilities for detention and treatment of storm water in accordance with the King County Surface Water Design Manual and all other applicable codes, policies, and engineering standards. Also, any off site mitigation measures necessary to address surface water-related adverse impacts will be applied to site development through environmental review. In addition, surface water management (SVVM) fees will be collected by the City on an annual basis. Site development is not expected to generate impacts which can not be addressed through one or more of these processes. E. Parks and Recreation The Parks Department has indicated that there are no nearby neighborhood parks to meet the recreation needs of future residents within the annexation area. However, any residential development of the site pursuant to the City's zoning and subdivision codes will require on site open space and recreational opportunities comparable to a neighborhood-scale park, and this should be sufficient to meet the need generated by the additional population. Consequently, the impact to the existing City-wide parks LOS is expected to be minimal. F. General Government Services General government se�vices (Municipal Court Services, Civil Legal Service, Community Development Administrative Services) will be provided to the site concunent with annexation and development of the subject site. G. Other Public Services Schood Services: Federal Way School District has indicated that the annexation azea is located within the service boundaries of Lake Dolloff Elementary School, Kilo 7unior High School, and Thomas Jefferson Hi�h School. Impacts to these schools and related services, resulting from additional residential population generated by development in the annexation area, is expected to be mitigated by school impact fees. Impact fees are collected by the City at building pernut issuance and passed on to the school district. The city budget is not affected by school impact fees. Franchises: The City of Federal Way currently has franchises with TCI (cable service), Puget Sound Energy (power poles and equipment) and Federal Way -6- L Staff'Report to the City Councid File No. ANN99-0001 November 16, 1999 Disposal (solid waste and recycling collection). The City is also developing agreements with several telecommunications service providers, and investi�ating a franchise agreement with the Olympic Pipeline Company. 8. ANNEXATION-RELATED COSTS AND REVENUES TO THE CITY An analysis of costs and revenues was prepared for the 1998 "residential north" annexation. Given the relatively small size and development potential of Tract 17, with respect to the overall master plan, it would not be expected to generate any significant differences in costs or revenues to the City, were it included in the previous analysis. Therefore, the previous analysis is applicable to the current proposal and is attached to this report in its entirety (Exhibit 9. DECISIONAL CRITERIA A. Concurrent Comprehensive Plan and Zoning Designations Federal Way City Code (FWCC) Sec. 19-101 requires that comprehensive plan and zoning designations be established concurrently with annexations in cases where such designations are either absent or outdated. Existing Federal Way Comprehensive Plan and Zoning designations, including Multifamily Residential and RM-3600, respectively, pursuant to a development agreement, were established for the subject property in 1998, and remain in effect at this time. B. Annexation The annexation proposal complies with RCW 3 SA.14.120 (the sixty percent petition method of annexation) as follows: (1) On May 5, 1999, Mr. Elley filed a Notice of Intention to Petition for Annexation to the City, which was certified to represent the owner(s) of not less than ten percent of the assessed valuation of the subject property. (2) On June 15, 1999, the City Council accepted the ten percent annexation petition, authorized circulation of the formal petition, and required the assumption of a pro-rata share of the City's existing bonded indebtedness by the area to be annexed. (3) On September 16, 1999, Mr. Elley filed an annexation petition, which was certified to represent the owner(s) of not less than sixty percent of the Stafj"Report to the City Council File No. ANN99-0001 November 16, 1999 assessed valuation of the subject property, and a City Council public hearing on the annexation was scheduled. C. Consistency with the Federal Way Comprehensive Plan (FWCP) The annexation proposal is consistent with the following Federal Way Comprehensive Plan (FWCP) policies: Annexations generally should not have or create abnornially irregular boundaries. (PAAP6) Proposed annexations should use the 60% petition method when possible. (PAAP9) The City will require owners of land annexing into Federal Way to assume their proportion of existing City bonded indebtedness. (PAAP 12) The City should esta.blish departmental service needs prior to major anne�tions through a fiscal impact analysis. As revenues from ea.ch area are collected, increase City services to maintain current Citywide levels of service. (PAAP 14) Provide newly annexed areas with the same level of service enjoyed by areas inside Federal Way, while maintaining cunent Citywide service levels. (PAA15) 10. FINDINGS The following are findings for approval of the proposed anne�tion. (1) RCW 35A.14.010 authorizes the City of Federal Way to annex any portion of a county not incorporated as part of a city or town but lying contiguous to the City. (2) On May 5,1999, John Elley filed a Notice of Intention to Petition for Annexation to the City of Federal Way, for certain real property lying contiguous to the northeast boundary of the City of Federal Way, signed by the owner(s) of not less than ten percent of the assessed value of the property within the annexation area, as certified by the Federal Way City Clerk. (3) On June 8, 1999, the City Council authorized the prepaxation of a Petition for Anne�cation and required the annexation area to assume a pro-rata share of the City's indebtedness. (4) On September 16, 1999, the City received a petition from John Elley, signed by owner(s) of not less than 60 percent of the assessed value of properiy within the anne�ca,tion area, as certified by the City Clerk, to annex the subject property. -a- Sta, f,�'Report to the City Council File No. ANN99-0001 November 16, 1999 (5) The proposed annexation area is located within the City of Federal Way's adopted Potential Annexation Area (PAA), consistent with Federal Way Comprehensive Plan (FWCP) policies related to annexation. (6) The subject property was previously given pre-annexation wning and comprehensive plan designations of Multifamily Residential, and RM-3600, respectively, subject to an approved development agreement. (7) The subject property is located in an area where adequate urban services can be effectively provided by the City of Federal Way, consistent with the Federal Way Comprehensive Plan (FWCP, Growth Management Act (RCW 36.70A.110) and King County Countywide Planning Policies relating to PAA's and urban growth areas. (8) Annexation of the subject property by the City of Federal Way is not anticipated to result in an adverse financial burden to the City. (9) Annexation of the subject properry by the City of Federal Way has been processed in accordance with a11 state and local statutory requirements, and it will promote the health, safety, and welfare of the citizens of Federal Way. (10) Future development will be subject to all applicable City codes, policies, regulations, and agreements, which will ensure compatibility with existing and planned land uses. 11. STAFF RECOMMENDATION After consideration of the staff report and recommendation, and at the conclusion of the November 16, 1999, public hearing, if the City Council finds that the proposed annexation is in the best interest and general welfare of the City, the City Council may take the following action: (1) Accept the 60 percent petition by resolution and direct staffto submit a Notice of Intention to Annex to the King County Boundary Review Board, and (2) Move the ordinance approving the annexaxion, subject to clearance to second reading. Pursuant to the requirements of FWCC Article III, Annezation, staff recommends that the City Council accept the 60 percent petition by resolution; direct staff to file a Notice of Intention to Annez to the King County Boundary Review Board; and move the ordinance approving the annexation to second reading, with effective date subject to clearance by the King County Boundary Review Board. Da1e report prepared: November 9.1999 -9- 1 i PETITION FOR ANNEXATION TO THE CITY OF FEDE�21�I. WAY, WASHINGTON TO: THE HONORABLE MAYOR AND CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON 33530 15T WAY SOUTEi FEDERAL WAY, WASHINGTON 98003 s:' 7 L`ii jyU CJT Y r f EJ� t Oi-r h L i%ii' We, the undersigned, being tl owners of not less than sixty percent (60�5) in value oi the real ��roperty herein described and lying contiguous to Lhe City of Fe�era]. 47�v �'�.:�1 do herebV petition that sucr territory �z annexed to and� made part o� the City of Federal Way under the provisions of RCPJ 35A.14.120, et sea., and any ametldments thereto, of the State of Washington. The territory proposed to be annexed is within King County; Washington; the legal description o� which ter�itory is se� forth in E�:hibit "A", attacned hereto and made part hereof; and the boundary map c; which territory is szt forth in Exhibit "B", attached hereto and made part hereof. The City Council of the City of Federal Way met with the initia�ing parties at a regularly schedLled meeting on June 15, 1999, and did deter�ine that the City would accept the petitioner`s I��ot?ce of Intention to Petition, with boundaries as proposed by the petitior.er. At said meeting the City Council did also dece? as disclosed by the minutes entry regarding the same in the minutes of tne council meeting of July 15, 1999, that the area proposed to be annexed City c•:ould be required to assume its pro rata portion of exis�ing city indebtedness, if such area is annexed to the City. WHEREFORE, the und2rsigned petition the City Council and request: (a) The approp�_ate ac�ion be taken to entertain•this petition, fi:;:�q a date �b_ a�ub'_ic h�aring, causing notice to be published and posteci, spec�iying the �ime and place oi such hear�ng, and invi;.inc al1 pzrsons •�.nteres�ed �o appear and voice approval or disapprev�l of such ann�::atior.; and (b) That :ollo;aing suc:�. heari.ng, and pending approval of the Bour.darv Revieta Boarc, the City Council deter�ine by ordinance that sLCn annexa�ion sna11 e� made, annexing tne above described ter? and declari�cr the date whereon such annexation shall be eifec��c-e; and the p�operty so annexed shall become a part of the Citv o� Eederal �7a_y, subjec� "to its laws and ordinances then and therea=�.:er in forc�. The petitioner subscri�ing he�eto agrees that all prop�rty within the te�ri�ory hereby sought to be a�::�xed snall be assessed and taxed at the same rate and on the same basis as c��er property within the City of Federal Way, including assessments or tati�s in payment oi,any bonds issued c�r debts contracted p�_or to or existing �t ��e date of the annexation; and a�k�esw]..ed�e� a�-,�Re i"��.5�i{ I�'ji'.� �•u5t• i,, �ti terri'tory hereby soLq�� to be anne::ed has been previously'plann�cl`''and zoriea oy the City of Feae=a? ::=v, as estabiished on official comprenensive ,p ��d zoning maps as ado��te� b}� tl Ci��.- o� Federal Way. fXHIBIT �'�►��,�01� WARNING EVERY PERSON WHO SIGNS THIS PETITION WITH ANy OTHER THAN HIS/HER TRUE NAI�� OR WHO KNOWINGLY SIGNS MORE THAN ONE OF THESE PETITIONS, OR SIGNS A PETITION WHEN HE/SHE IS NOT A FtEGISTERED VOTER, OR SIGNS A PETITION WHEN HE/SHE IS OTHERWISE NOT QUA.LIFIED TO SIGN, OR WHO MAKES HEREIN ANY FALSE STATEMENT, SHALL BE GUTLTY OF A MISDEMEANOR_ I 1 I 3 OWNER'S SIGNATURE FRINTED NAME �o �N �c. I S. I 6. 17_ 13. ADDRESS DATE SIGNED S��s' �qc u� �9�a�r CA��4�UNi DE E,� BE igg� �XH PAC ANNEXATION DESCRIPTION QUADRANT RES NORTH, TRACT 17 PA.RCEL THAT PORTION OF OF LOT 17, MIDWAY SUBURBAi\T TRACTS, ACCORDTNG TO THE PLAT THEP.EOF, RECORDED IN VOLUME 38 OF PLATS, PAGE 40, IN KING COUNTY, VI�ASHINGTON, LYNG SOUTHERLY OF THE SOUTHEASTERLY MARG�N OF THE BONNEVILLL- PO��TER ADMINISTRATION'S TRAI�TS?�IISSIOI�i LII�TE RIGH'T OF WAY, 200 FEET 1N WIDTH, FOR COVINGTON-TACOMA TRANSMISSIO\i LINES I�TOS. 1 AND 2, AS SAID RIGHT OF WAY EXISTED PRIOR TO NOVEMBER 29, 19�8. DESCRIl'TION BY VdB;H PACIFIC, INC. �2� ROBERT E. V4lALLIS: P.L.S. 18102 �/a� z DATE I:�PROfECTt 66IO2011 WO RD'•.RES\1GLE.c �r E, k, �o� o� W�, .�o x /o .Q�, ��'�l. Irilr`� 5 EXP�RES: 275/ 2-clY� RECE}VE� BY C�t!".{JN! i Y DEV�LC�P��AE�dT �E? aT�.ic`; �y j94i< EXHIB PAG�� r�� I�'"� ;��y I 9 10, �"""`'"c �c /v�VIVVMtN 1 S�y ��4 SEC110N 10, T 21 N, R 4 E. �Y.M. Wi TH COPPER PLUC I i (ESM APRIL 1990) i� i i i i i ��S C, o_ •y����� o -�tP �6�� 0 8 i E I 1 3 i �,,E� 2 N i 6��E E i i i i i I i .--CE1'TEP, pc TOit•[P, i� 6' 1 1 r' S i C L `r_ i �RE s �SS�� i SS��p�� 2 I E�p,r 1 k� a j_ 1 t t c�t•. i Z �t c:... E I rn �ip.� N� l ��1 OF Ep �t� i� c A o� w`�` r�l '1 r' I 17' 4 r N �Io _i.`_"�; Q O +-�jI o J� zS� �s 200_ 00. R C E_ k 0� aF w'is� f S89'44'47 "E �o THlS DRtii;7NG IS BASED O/Y CHICACO TITLE iNSURANCE COAlPANY, y ORDEP, NO. 531643, DATED DECEMBER 9, f998 AND ES.�a SURVEY ORAWiNG RECORDED !N VOLUME 75 OF SURI�YS Oni PAC� 203, RECOP,�JS OF KlNG COWVTY. �s�o2 0 I s R�� y�t ��'�L LA2� ��X?IRES 2/OS/00 S. 320TN Sr �G S89'03'19 "c STONF MONUMENT 15 206�.3�" WITH CHISELEO 'X' (ES�d FEB. 1990) QuaoRAn�r R�SIDE�ITIAL NO�t� RECEI DBY ITY DEVELO �.E�T D�PAR i 1,4EN' TR,4 C T 17 A NIV EXQ TIO�,�I� ���99� EXNI BI T 41/A SHI NG TOIV 4 s �.,^a,�c; no. 0 3. 1 651.0002 V �a�.��: S6.=t�k01 n 5 �XH1 B I �A �iE QF.� 16 4 "X4" CONC. �.!ON. Y,7 TN COPPER PIN MOh'UFaE���rc0 SrRctT C���'i�RLINE (ESM FEg. 1990) 9 ]0 N8�"44'47 47 N89"44�47��Y 830.02" 2005.01' �1 2" lRO:�' ?1P� FICLEO t"nTH CONCRc Tc t:r TH TACK, lN CASE (ESM r��. 1990) PACIFIC J3S0 3lOhT� ti�7lLl PdRKWAY sor�t�r �.�f�cron• esozr �'^:.•R=:��a��cou re�u�9sr-<s•�o P�. S`. F.tX (t25)85! <Bud �f—t L.ae.c.� Arcait�cwr. FEDER�;! sG:IE: i 0� fA 4 z O m s. 316TH ST. 9 5 �t. a;���� P 5. �c e 090 F ERAi. WAY CITY LIM�'S S. 32UTtt ST. S �i W �.S r ST. 5.�,��. Tract 17 P roposed Annexation (STR:SW102104) To the City of Federal Way Annexation Area Map Legend: Federal Way City Limits Proposed Annexation Area Scale:l to 5400 1 Inch equals 450 Feet 0 500 Feet Map Printed: October 1999 r u ..dp I�J `I'"ll� �a� /users/n amim/p rojects/comdevlan nxtl7v. map Vicinity Map CITY OF FEDERAL WAY POTENTIAL ANNEXATION AREA BOUNDARIES CITY OF E� ��"�j�� 33530 1 ST WAY SOUTH (253) 661-4000 fEDERAL WAY, WA 98003-6210 CERTIEICATION OF PETITION FOR ANNEXA.TION I, N. Christine Green, City C(erk of the City of Federal Way, Washington, do hereby certify that on September 23, 1999, I received a sixty (60%) percent Petition for Annexation, and attachments thereto, from John R Elley, which documents are attached hereto as "Exhibit 1". I then proceeded to make a determination on the signature submitted thereon. The petition contains the sole signature of John R. Elley. The value is not less than si�ty (60%) percent of the value of the property in the annexation area as a whole, according to the assessed valuation for general taaation of the property for which annexation is sought. The signature submitted on the Petition for Annexation represents an assessed valuation of $40,600.00, wluch constitutes one hundred (100%) percent of the total area, and exceeds the required sixty (60%) percent. IGNED and S A�D this 14th day of October, 1999. i�T. Christine Green, CMC City Cierk City of Federal «'ay, Washington arrnex. q:�ad17 �i���..�,o�,��:... fN s URBAN RES. 4-12 DU/ACRE (KC) URBA RES. 4-12 D /ACRI (K URBA RES. 4-12 D /ACRE URBAN RES. 4-12 DU/ACRE (KC) URBAN ES. 4-12 DU ACRE (K URBAN RES. Y 4-12 DU/ACRE (KC) UITt-FAM LY ERCIAL ��wl OU SIDE OF C NTERS C) F �RAL WAY CITY LlM1TS S. 320TH ST. S 3 s' OFF EPARK OFFICE PARK FW? (FW! OFFICE 3 PARK fFW� iRBAN RES. 12 DU/AC� URBAN RES. 12 DU/ACRE (KC) Tract 17 P roposed Annexation To the City of Federai Way Existing Federal Way Comprehensive Plan Map Legend: URBAN RES. 12 UU/ACRE (KC) o e NEIGH fH ST. UR AN E3. 4-1 DU/ CR K s. �ztsrsr. URBAN RES. 4-12 DUlACRE (KC) Federal Way City Limits Plan Designation Boundary Proposed Annexation Area QFP16E Pt►RK ,(F1M 1t� S.�IND �ale: 1 to 5400 1 Inch equals 450 Feet URBAN RES. O 500 Feet 4-12 DU/ACRE N Map Prir�ted: Oc[ober 1999 MtlN I�J �u�� �d��� /users/namim/projects/comdev/an nxtl7c. map ,z, R-4 �K�� 6 R-4 (KC) R-4 R-4 (KC) R-4 (KC) R-4 R-4 R-18 (KC) �K�) RM 360 (fW) C) F ERAL WAY CITY �IMITS S. 320TH ST. S: 3 TI 1- N' (F W� 3 0� T ract 17 P roposed Annexation R-18 (KC► R-18 (KC) To the City of Federal Way Existing Federal Way Zoning Map Le9end: Federal Way City Limits Propo�d Annexation R-ia Area (KC) (KC) Zpning Boundary ST. �E Subject to Development R-4 (KC) L1R-1 R-4 {FV1� (KC) Scale:l to 5400 1 Inch equals 450 Feet 0 500 Feet Map Printed: October 1999 �N�V L-�1LJ �llILS Oq UIYq10N 7z.map i After recording, return to: Federal Way City Attorney's Office 33530 lst Way S. Eedera( Way, WA 98003 DEVELOPMENT AGREEMENT BETWEEN o CITY OF FEDERAL WAY, WEYERHAEUSER CORPORATIQN AND FEDERAL WAY FIRE DISTRICT NO. 39 This Agreement, made and entered into this 15 day of D 1998, by and between the Weyerhaeuser Corporation, a Washington corporation ("Weyerhaeuser"), and Federal Way Fire District No. 39 ("District"), on the one hand, and the City of Federal Way, Washington, a municipal corporation ("City"), on the other (collectively "the parties"). RECI'I'ALS A. Weyerhaeuser is the owner of certain undeveloped real property ("Weyerhaeuser Property") located within King County but within the Potential Annexation Area of the City of Federa). Way. The Weyerhaeuser Property located north of and adjacent to S. 320th Street and is specifically described in Exhibit "A" attached hereto and incorporated herein. B. The District is the owner of certain real property ("District Property") located in King County and within the Potential Annexation Area of the City of Federal Way. The District Property, currently developed with a fire station, is legally described as the south 250 feet of Tract 7, Midway Suburban Tracts, according to the plat thereof recorded in Volume 38 of Plats, Page 40 in King County, Washington. The'District Property is also included within the legal description contained in Eachibit A, attached hereto and incorporated herein. C. Weyerhaeuser and the District have requested that the City of Federal Way annex the Weyerhaeuser and District Property, and have submitted a petition requesting the same signed by the owners of more than 60% of the assessed value of the two Pmperties (60% Petition). D. The Ciry's willingness to accept the 60% Petition, and to submit a Notice of Intention to Anaex the Property to the Washington State Boundary Review Board for- King County, is conditioned upon limitations on density of development or redevelopment of the Weyerhaeuser and District Property necessary to protect the public health, safety and welfare. E. The City has authority under RCW 36.70B.170-.210 to enter into a development agreement as part of a proposed annexation, to set development standards to govem development and use of the prope'rty to be annexed. The City also has authority under RCW 39.34 to enter into an interlocal agreement with another governmental entity. NOW, THEREFORE, for and in consideration of the Ciry's aeceptance e 50% petition, the parties agree as follows: �,i�J������ �:E� �Q�� m Development Agreement City of Federal Way, Fire District and Weyerhaeuser Corporation S. 320th Property Page 2 1. Development of VVeyerhaeuser Propertv. Weyerhaeuser covenants and agrees that, regardless of the density or uses available under the zoning designation applicable to Weyerhaeuser Property, Weyerhaeuser will limit any development of the Weyerhaeuser Property to no more than 82 dwellin� units, at a density no greater than 6 units per gross acre, calculated prior to deduction of areas required for public street right-of-way. Weyerhaeuser further covenants and agrees that the•principal use of any development will be detached single-family dwelling units (either as fee simple or condominiums), and that, if condominiums, the declaration of condominium executed and recorded under RCW 64.34.216(n) will include the requirement that, for a period of one year following the initial sale of each individual dwelling unit, that unit may be occupied only by the unit owner(s) of record and/or their immediate family, if any. In the event that development of up to 82 detached single-family dwelling units is not feasible, by reason of topography or application of Federal Way City Code requirements or other applicable regulations, the principal use of development may be, if allowed by applicable code provisions, up to 106 attached single-family dwelling units, constructed as townhomes and owned as condominiums, at a density no greater than b units per gross acre and calculated prior to deduction of areas required for public street right-of-way. For purposes of this agreement, "townhome" means a series of single-family dwelling units constructed in a row no greater than 120 feet in length, where: (a) each unit has its own front entrance to the outside; (b) no unit is located over or under another unit; and (c) each unit is separated from any other adjacent unit by one or more vertical, common, fire-resistant walls. For purposes of this agreement, "condominium" shall have the meaning set forth in RCW 64.34.020(9). 2. Redevelopment of District Propertv. The District covenants and agrees that the principal use of the District Property will be for a fire station. If the District or its heirs, successors or assigns deternune to change the principal use of the District Property to a residential use, regardless of the density or uses available under the applicable zoning designation any redevelopment of the District Property will be limited to a density no greater than 6 units per gross acre, calculated prior to deduction of azeas required for public street right-of-way.� The District further covenants and agrees that the principal use of any development will be either detached single family dwellings or attached single-family condominium townhomes. 3. BPA Trail Connection. Weyerhaeuser covenants and agrees that any development of its portion of the Property will not interfere with or prevent an extension of a pedestrian/bike trail over the BPA easements of record over the Weyerhaeuser Property. 4. Implementation of Agreement. 4.1. Timing of Annexation. Followingexecutionof this Development Agreement, adoption of Comprehensive Plan and zoning designations for the Weyerhaeuser and District Properties, and the City's acceptance of the 60% Petition, the City will submit to the Wa gton �T State Boundary Review Board for Kin Coun "BRB" a o x 6he g tY F m Development Agreement City of Federal Way, Fire District and Weyerhaeuser Corporation S. 320th Property Page 3 Weyerhaeuser and District Properties. If BRB review is not invoked or, in the alternative, if BRB review is invoked but the BRB approves the annexation, the City shall lawfully adopt an ordinance annexing the Weyerhaeuser and District Properties. The City may, in the alternative, upon approval of the 60 Petition, simultaneously adopt an ordinance annexing the Properties effective upon passage of forty-five (45) days or, if BRB jurisdiction is invoked, issuance of a BRB decision approving the annexation. 4.2 Vesting. The City of Federal Way acknowledges that Weyerhaeuser would have the right, prior to the effective date of annexation, to apply to King County for approval of development on the Weyerhaeuser Property. The City of Federal Way and Weyerhaeuser agree that, in lieu ofbut not in addition to making such application to King County, Weyerliaeuser may apply to Federal Way, which shall process any such application according to the provisions of this Agreement and the Federal Way City Code provisions in effect as of the date Federal Way deems Weyerhaeuser's application complete. Federal Way shall be entided to recover all costs incurred in such processing. Federal Way's agreement in this Paragraph is subject to the written concurrence of King County. In the event that Weyerhaeuser applies to the City of Federal Way pursuant to this Paragraph, Weyerhaeuser waives and releases and agrees not to assert against the City any and all vested rights it might otherwise have obtained under the King Counry Code, including zoning and/or development regulations contained therein, had Weyerhaeuser applied to King County prior to the effective date of annexation. 5. General Provisions. 5.1. Binding on Successors; Covenant to Run With Land. This Agr�ment is intended to protect the value of the Weyerhaeuser and District Property, as well as. the public health, safety, and welfare of the City of Federal Way, and the benefits and burdens inuring to the Weyerhaeuser and District Property and to the City from this Agreement shall run with the land and shall be binding upon the District and Weyerhaeuser, and their heirs, successors, and assigns, and upon the City of Federal Way. 5.2. Governing Law. This Agreement shall be govemed by and interpreted in accordance with the laws of the State of Washington. Venue for any action to enforce the terms of this Agreement shall be in King County Superior Court. 5.3 Recordi.ng. This Agreement shall be recorded against the District and Weyerhaeuser Properties. 5.4. Severability. The provisions of this Agreement are separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the r inder of this Agreement, or the validity of its application to other per s �AG� 4�' '4� Development Agreement City of Federal Way, Fire District and Weyerhaeuser Corporation S. 320th Property Page 4 5.5 Authority. The City, the District, and Weyerhaeuser each represent and warrant to the others that it has the respective power and authority, and is duly authorized to execute and deliver this Agreement. Weyerhaeuser and the District represent and warrant that they are the fee owners or contract purchasers and have authority to agree to the covenants contained herein. 5.6 Term of Agreement. This Agreement shall remain in full force and effect unless amended or terminated by the mutual agreement of the parties. 5.7 Amendment. This Agreement may be modified only by a written instrument duly executed by all parties; provided, however, notwithstanding any provisions of this Agreement to the contrary, the City of Federal Way may, without the agreement of the District or Weyerhaeuser, adopt and impose upon the District and Weyerhaeuser Properties restrictions and development regulations different than those set forth herein, if required by a serious threat to public health and safety. 5.8 Exhibits A and B attached hereto are incorporated herein by this reference as if fully set forth. 5.9 Headings. The headings in this Agreement are inserted for reference only and shall not be construed to expand, limit or otherwise modify the terms and conditions of this A�reement. 5.10 Integration. This Agreement and its exhibits represent the entire agreement of the parties with respect to the subject matter hereof. There are no other agreements, oral or written, except as expressly set forth herein. 5.11 Indemnification. Weyerhaeuser and the District release and agree to defend, indemnify, and hold hamiless the City and all of its elected and appointed officials, and its employees and agents, from all liability, claims, appeals, and costs, including the costs of defense of any claim or appeal, arising in connection with the annexation of the Weyerhaeuser and District Property andlor this Agreement, except to the extent any liability, claim, appeal or cost results from the sole negligence of the Ciry or its officers, agents, or employees in performance. of this Agreement. 5.12 Enforcement. In the event Weyerhaeuser or the District fail to satisfy any of their obligations under this Agreement, the City shall have the right to enforce this Agreement at both law and equity, including but not limited to enf.orcing this Agreement under the enforcement provisions of the Federal Way City Code in effect at the time of any breach. Damages are not an adequate remedy for breach. In addition, Weyerhaeuser or the District's failure t tisfy any of their obligations in this Agreement shall constitute a breach������ a grounds for termination of this Agreement by the City. C C� Development Agreement City of Federal Way, Fire District and Weyerhaeuser Corporation S. 320th Property Page 5 5.13 Police Power. Nothing in this Agreement shall be construed to diminish, restrict or limit the police powers of the City granted by the Washington State Constitution or by general law. This Agreement is an exercise of the City's police powers and the authority granted under RCW 35A.14.330, RCW 36.70B.170-.210, and RCW 39.34. 5.14 Effective Date. This Agreement shall be effective on the effective date of the City's Ordinance approving this Agreement, and the execution of this Agreement by duly authorized representatives of each party. 5.15 Additional Annexation If Weyerhaeuser petitions for annexation of that property legally described as Parcel C in Exhibit B hereto and abutting the Weyerhaeuser Property described in Exhibit A, and Parcei C is thereafter annexed by the City, development of Patcel C shall be subject to and governed by the terms of this Agreement, unless the City and Weyerhaeuser amend ttus Agreement to provide otherwise. IN WITNESS WHEREOF the parties have hereunto placed their hand and seals on the day and year indicated. FEDERAL WAY FIRE DISTRICT NO. 39 C� i� CITY OF FEDERAL WAY i Kenneth E. Nyberg City Manager Date: Approved as to Form for Federal Way Fire District No. 39 ATTEST: This day of 1998. Clerk Date: Approved as to Form for City of Federal Way o P� City Attorney, Londi K. Lindell ATTEST: This day of 1998. N. Christi Federal W l c O I�..r...�....-.. C� Development Agreement City of Federal Way, Fire District and Weyerhaeuser Corporation S. 320th Property Page 6 Weyerhaeuser CORPORATION Its: Date: Approved as to form for Weyerhaeuser Corporation K:1cd\quadagrm1.023 10-23-98 1�EI��R11' �A�� �F 4. 12 8 PACIFIC PARCEL A: g �Q� g 2/ 3 ;ts,: ASINEXATION DESCRIPTION QUADRANT RES NORTH TRACTS 1 THROUGH 7, AND THAT PORTION OF TRACT 18 LYING SOUTH OF THE BONNEVILLE POWER 61DMINISTRATION RIGHT-OF-WAY, AS ESTABLISHED BY EASEMENT RECORDED UNDER RECORDING NUMBER 3347081,1V�WAY SUBURBAN TRACTS, ACCORDING TO THE PLAT THEREOF, RECORDED TN VOLUME 38 OF PLATS, PAGE 40, IlV KING COUNTY, WASHINGTON; E?CCEPT THAT PORTION OF 'I'RACTS 1 ANll 2 CONVEYED TO THE STATE OF WASH]NGTON BY DEED 1ZECORDED UNDER RECORDING NUMBER 4998517; AND EXCEPT THE SOUTH 40 FEET OF TRACT 3 CONVEYED TO T� STATE OF WASHINGTON BY DEED RECORDED UNDER RECORDING NUM�3ER 4998539; AND EXCEPT THE SOUTH 40 FEET OF TRACT 4, AS CONDEMNID UNDER KING COUNfY SUPERIOR COURT CAUSE NUMBER 534586; AND EXCEPT THE SOUTH 40 FEET OF THE WEST 100 FEET OF TRACT 5 CONVEYED TO THE STATE OF WA,SHINGTON BY DEED RECORDED UNDER RECORDING NUMBER 4998520. PARCEL B: ALL THAT PORTION OF THE SOUTH 320� STREET RIGHT-OF-WAY IN SECTIONS 9,10,15 AND I6, �TOWNSHII' 21 NORTH, RANGE 4 EAST VY.M., KING COUNTY WASHII�iGTON, DESCRIBED AS FOLLOWS; THAT PORTION OF TI� SOUTH 320� STREET RIGHT-OF-WAY LYIl�1G EAST.OF AND ADJOING TO THE C;URRENT EAST BOLJNDARY OF THE GTI'Y OF FEDERAL WAY AND WEST OF TI� FOLLOWING DESCRIBED LINE; BEGINNING AT TI� INTERSECTION OF THE EAST L1NE OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 15 WITH THE- SOUTH LINE OF THE 320 STREET RIGHT-OF-WAY, S�D-iNTERSECTION BEING FURTHER DESCRIBED A,S LYING ON TI� CL1�tRENT BOUNDARY OF THE CITY OF FEDERAI. WAY; THENCE NORTHERLY ALONG THE SAID EAST LINE TO THE SOUTHWEST CORNER OF THE SOUT��AST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION 10; L.� �rh�h�-� Lv� fCI-��ccm�h� V TKrr) I lrlww�w 1•• IviANw.bw x 1 ��wu. .n.i.w� C�.i rr+rt.�.ru� .i a �riMYwwm •ll��ry.AiNMiwn �'�I"'�IWrw�N�p Iwr�.wM� N• L��IW !F I wi��AM11J� ./iYJCA i I� f �r L t �F i i� t t� '.i��' 1" 4 i Concept Sire Plan IKt.lp�hvlfe� Neriew/ i 5�nrrh ):0 Slrrtf SUc fhluchtv/ CanJuni6�iuxu FrEero! Kiry'. Wqrhingtnn Tlre Quadnnf C.a�purvdon wu►a r.«r MI.MMM��YNwN��K��i��/N ....4�i...OtS2 ��is.��..f�� �suus. Sta�Report to the City Counci! File No. A1VN98-0001 November 17, 1998 IX. COSTS AND REVENUES TO THE Cf1Y ASSOCIATED W(TH THE ANNEXATION A. /NTRODUGT/ON The financial impact to the City of Federal Way of the proposed annexation and development, projected over a six year evaluation period (1999-2004), is described in the following paragraphs and tables. Paragraph B describes the development scenario that was used as a basis foc the fiscal analysis, and for estimating revenues such as buitding permit fees, property taxes, and real estate excise tax. Paragraph C shows post-development" operating revenues, and paragraph D shows operating expenditures. Pazagraph E summarizes the analysis. Tables 1 and 2 are located at the end of Section IX. Table 1(Effect of the Annexation on Growth I�ariables) applies the development scenario (in paragraph B) to key growth variabies such as population and assessed valuation. Table 2� (Operating Revenues and Expenditures) shows anticipated operating revenues, expenditures, and annual net financial impact of the annexation, based on the growth variables (shown on Table 1) and related assumptions (shown on Table 2). B. DEVELOPMENT SCENAR/O USED AS A BAS/S FOR ANALYSIS As currently proposed by the applicant (Weyerhaeuser Company), 82 condominium Devclopmcnt scrnario assumcs no change in use or rcdcvclormcnt of thc c�isting fire slalio� faci►' a As nolcd prcviously and show� as Exhibit F, a prclimi�ary proposal for an 82-unil dctachcd cond i ro Ihc applicant.. -10- StajjReport to �he Ciry Co�� I'ile No. ANN98-0001 November 7, 1998 units viili be buiit over three or fo�r years, with approximately half of the new units seiling as they are bui(t. From this information a construction and sales scenario was estimated #'or purposes of analysis. Figure l, below, shows the projected rate of construction and sales of the condominium units over a four-yea.r period, 1999-2002. Construction phasing was anticipated to oce,ur at a rate of 30% in 1999, 60% in 2000, 90% in 2001, and 100% buildout in 2002. Annual sales of new units was estimated at a rate of about 50% per yeac, except in 2002, when 100°/a of the remaining units that are built are also assumed to be sold. The sales figures for each year also assume that all units built but not sold in a given year will be sold the following year. For example, in 2000, 24 new units are built and 12 (about hal fl of those are sold, with 12 units carried over (24 built-12 sold =12) and assumed sold in 2001. F/GURE EST7'MATED CONSTRUC770N AND SALES ACT1V/7Y 999-Z002 tR�AG"T14�fFY I s99 2007f� 2O0 NEW UNfTS BUILT NEW UNfTS SOLD LAST YEAR'S UNfrS SOLD (NE�l1/ UNITS NOT SOLO FROM PREVIOUS YEAR) (NEW UNfTS NOT SOL�) TOTAL UNITS SOLD �Q02' 8 6 13 (0) 21 :.;v.:>; cun�t��nv�,acnvm- sss :z000 zoo i 2ooz TOTAL UNfTS BUILT 25 49 74 62 TOTAL UNffS SOLD I 2 37 6 I 62 C. REVENUES ANT/C/PATED FROM THE ANNEXA770N AREA Refer to Tab(e 2, Opera[ing Revem�es, for estimated fiscal impacts to the City associated with the various revenues described below. �XHIBI RAC E OF��� 25 12 U 1 3) 12 Z4 12 13 I 2) 25 Z5 12 IZ I 3) 24 StafjReport to the City Counci! Fi1e No. ANN9g-0001 Nvvember 1 i, l998 (1) Property Tax: The i997 assessed valuation (A� of the annexation area" is $4,196,733,000. It is estimated that the City will receive 0.16 percent of the assessed valuation as property tax, or $1.528 per $1,000 of AV, with a PraJ�ted gc'owth rate of 1.035 per year. Properly tax revenues anticipated to be generated over the six-year study period aze shown on Table 2. (2) Sales Taz: No sales tax revenues within the annexation area are anticipated. (3) Recrl Estate Excise Tax (REE7) Real estate excise tax will be collected by TGnB County and distributed to the City as individual condominium units aze sotd. It should be noted that a residentiai resale rate of five to seven years is expected, generating some ongoing REET revenues over time. However, no ongoing REET revenues were factored into the six-year analysis. (4) Uhlity Tcr�°: Utiliry taxes to be generated by the condominium units, assuming full occupancy in the year 2002, are shown on Table 2. (5) Permit.Fees�: Building permit fees will be collected by the City as building pennits are issued throughout the project's'construction phase. Table 2 shows anticipated building permit revenues'� associated with this development scenario, using an estimated average per-unit pernut fee of $1,410. State Shared Revenues: State shared revenues (gasoline tax, motor vehicle excise tax, liquor board profits, criminal justice ta� and liquor excise ta�c, etc.) are distributed to cities on the basis of population. Projected revenues based on population forecasts for the condominiums are shown on Table 2. 19 �B ���ion of all land within t}�e annexation area and the improvemrnfs on the fire disUid paral. RF.ET and u61ity tex rovenues must be spent solely on capital projects (or associated debt service) contained in the City's Capital Facilities Pian (CFP). zt Pa applicant and induslry standard u Building pamit revqwe only. Miscellaneous developmrnt fea including land use permils and rngineering plattt revicw are nol �xpxted to b�'significant and were �ot p�ojeded, 23 Pr'ojacted Building pennit foa were baud on the City's current permit fee schedule, and the putrntial fee increase curttently uadex review by the City Council was not fadorcd in. 24 B �ing fee slructurc. ZS A popu�ation factor of 2.0 persons per dwelling unit wac uscd Cor �hc condominium projcM {per OFM fo�ccasls). EXH PAC StaffReport to Ihe City Counci! File No. �'98-0001 November 17, 1998 (7) Frcmchise Fees: Franchise fees are collected by the City from cable users, as shown on Tables 1& 2. (8) Surface WaterMcmagement (SWt1� Fees: SWM fees are calculated based on impervious surface and assessed annually to individual dwelling units. Estimated SWM fees are shown on Table 2. D. OPER.4TJNG EXPENO/TURES ANT/C/PATED AS A RESULT OF ANNEXATJON Refer to Table 2, Operating Expenditures, for estimated fiscal impacts to the City associated with the various expenditures described betow. (1) Transportation (streets and iraffic control facilities): As a result of the annexatioq the City will acquire approximately 1.9 additionai lane miles of South 320th Street_ The City will also acquire about 1,4001ane feet of right- of-way as a result of the proposed extension of Weyerhaeuser Way South through the project as part of development. South 320th Street improvements presently include four to five lanes of pavement, street lights on the south side only, and no sidewalks or street trees on either side. South 320th Street was resurfaced by King County in 1996, and City traffic analysts anticipate that no additional overlay will be required until the year 2010. Ongoing annual street maintenance costs are estimated based on a per-lane- mile cost for traffic signal maintenance, street light maintenance, electricity, shoulder restoration, patching, street channelization, and signage. The total annual estimated maintenance costs for the right-of-way associated with annexation and development are shown on Table 2. The City's traffic division noted that the traffic signal at 320th Street and Weyerhaeuser Way is substandard and will have to be replaced by the City at some point at an estimated cost of $350,000 (in today's doilars). However, the City is cunently reviewing development proposals that affect all four corners of this intersection. Through these development review z6 �e mil� (or In� feet) atimata total improved street arca, baceC on tha lrng�h tim� the widlh. of cxisling and/or proposed sue�ts. 27 700 linear feet times 2 lancs=1,400 lane Ccct_ 28 'It�e City tta!'[ic division cstimala Ihis tra(Tic signal wiU requirc replaccment in Cour to six years, dcpcading on traPfic inacascs bucd on anlicipated V�c incTeasu in this area and irrespective of adjacent new devclopmcnl _�3_ EXH�BO 1 F�AGE OF, StajfReport to the City Councrl File No. ANN98-0001 November 17, 1998 processes, it is likely that the developer will bear some or all of the responsibility for upgrade or replacement of the substandard signal. In summary, maintenance and potentia! capital costs will accrue to the City as a result of annexing this segment of South 320th Street. However, since the property is iocated in the City's Potential Annexation Area (pAA), it wi�l eventually be annexed anyway_ Annexation at the present time will secure the City's control over right-of-way improvements associated with current development in the area. Otherwise, street improvements could be built to KinB County standards, and eventually `5nhe.rited" by the City, along with any service deficiencies, at such future time that the property is annexed. (2) Police Services: The impact of annexation and development on the public safety department would be the increase in population and area to patrol. The City's Public Safety Department has indicated that �site development will primarily affect Patrol District #4, and the impact to polices services is expected to be minimal. Table 2 provides the estimated financial impact to police services resulting from the increased population. (3) Parks and Recreation: The City of Federal Way's 1995 Parks, Recreation, and Open Space Plan utilizes a Level of Service (LOS) standard of 10.9 acres of public parks and open space per 1,000 popuiation_ Additionalty, the Parks Plan seeks to ensure that every neighborhood in the City is served by a park within a one-half mile radius. Currently, the City owns 818 acres of park land, or 10.65�' acres of park land per 1,000. Also, no neighborhood parks are located within a one-half mi(e radius of the annexation area. However, as shown on table 2, the development-related impact to the existing Parks LOS is not expected to be significant Additionally, as discussed in VIII. E., above, parks-related impacts are expected to be minimized by on site open space and recreational opportunities, as required by the City's zoning and subdivision code requirements. (4) Municipal Court Services, Civil Lega1 Service, Commz�nity Development Administrative Services: Operating expenses associated with these services are based on population and an established formula used by the City of Federal Way Management Services, and are shown on Table 2. Roundcd to �carest hundredth Gom L0.648, as shown on Tablc 2. Based on the Parks [AS of I0.9 acra �r Ihousand population, 164 �x:rsons will grncratc ihc nc�d for an adJitional 1.8 acres of parks, which is expecled to be addnssed by providing comparable on sitc opcn spacc and recTCation opportuniti�s on sitc. .,4_ EX1-�0���.� PAG E..,�,.. C� F, StafJ`'Report to the Ciiy Counci! File No. ANN98-0001 November 17, 1998 (5) Surf'ace WaterMa�ragement (SWM): The City's SWM maintenance costs as a result of the annexation and development of the subject property will be addressed by the corresponding SWM fees that will be charged to residents (see Table 2). Annual surface water maintenance within the City's rights-of- way will include ditch cieaning, culvert maintenance, weeding, street sweeping, and vacuu�et rodding. In addition, the SWM division indicated that water quality retrofit to South 320th Street will be required in several years. Therefore, a capital cost of approximately $20,000 to the City was projected for the year 2003 (see Table 2). However, it should be noted that the City's cost for this water quality retrofit woutd be limited to pre- developed conditions in the right-of-way, since the site developer will be responsible to provide water quality facilities for all new development-related impervious surfaces. TURN TO PAGE 16 (TABLE 1). -�s- �AG� oF TABLE 9 EFFECT OF THE ANNEXATION AND DEVELOPMENT ON GROWTH VARIABLES 1999-2004 FEDERAL WAY AFTER ANNEXATION AND DEVELOPMENT GROWTH VARIABLES (EXISTIN(3) 1999 2000 2001 2002 2003 2004 Populatior" 76,820 76,844 76,895 76,945 76,984 76,984 76,984 Assessed Valuation 4,196,733 4,203,605 4,206,567 4,209,821 4,211,171 4,211,171 4,211,171 (in 000's) Housing Units 30,724 30,735 30,761 30,786 30,806 30,806 30,806 Cable Users"* 29,787 29,810 29,831 29,854 29,861 •29,861 29,861 Lane Miles"' 666 668.2 668.2 668.2 668.2 668.2 668.2 Traffic Signals 48 49 49 49 49 49 49 Parks Level of Service 10.648 10.644 10,637 10.630 10.625 10.625 10.625 LOS 'Official population as of 4/1/98 per the Office of Financial Management (OFM). "Assumes 90% of households are cabie use�s. •"Estimated total length and width of streets in the clry. ��The Parks Plan LOS is10.9 acres per1,000 population, compared to the 10.648 existing LOS.' m� 16- 0 �i m s TABLE 2 Residential North Operating Revenues 8 Expenditures Rev/Cost 1999 2000 2001 2002 2003 2004 Growth Per Unit ProJected Projected Projected Projected Projected Projected Rate Operating Revenues Property Tax' Assessed vaiue $2,289 $6,655 $11,104 $15,997 $17,97'9 $18,609 1.0351 Real Estate Excise Tax RE sales $9,000 $19,313 $19,892 $16,391 $0 $0 _._._.r Building Permit F ees" Fee schedule $1,410 $35,250 $33,840 $35,250 $11,280 $0 $0 State-Shared Revenues y Population $67 $1,615 $4,981 $8,346 $10,972 $11,301 $11,640 1.030 Franchise Fees Cable-users $14 $317 $622 $939 $1,041 $1,041 $1,072 t.030 Utility Tax Housing units $149 $1,783 $5,498 $9,213 $12,184 $12,550 $12,926 1.030 SWM fees Lot coverage $150 $3,761 $7,371 $11,132 $12,335 $12,335 $12,335 1.000 Total Revenues Operating Expenditures Municipal CouR Services (Contract) Population $14 Civil Legal Servi Population $6 Community Development Population $31 Police �ervices••' r u Population FTE Administrative Services"'•� Population $34 Street/Tra�c Systems An nual Costs Surface Water Mgmt Annual Costs Total Expendttures Net Operating Revenue/Cost Capital P�ojects Surfa Stree SoHcl Debt $54,016 $78,280 $95,876 $80,200 $55,207 $56,583 $345 $1,062 $1,780 $150 $462 $774 $755 $2,329 $3,902 $2,042 $6,297 $10,552 $827 $2,550 $4,272 $15,850 $16,167 $16,490 $3,124 $3,187 $3,251 $2,340 $2,387 $1,018 $1,038 $5,130 $5,2 13,871 $14,260 $5,616 $5,728 16,820 $17,157 $2,435 1.020 $1,059 1.020 $5,337 1.020 $14,659 1.028 $5,843 1, 020 $17,500 1.020 $3,450 1.020 16 $23,093 $32,054 $41,021 $48,111 $49,184 $50,281 $30,923 $46,226 $54,855 $32,090 $6,023 $6,301 Assumes 1999 Adopted Levy Rate of $1.528 per $1,000 AV Average per-unit fee Assumes $65,000 (salary/benefits,M 8� O) costs per F'i E(Projected officers/1,000 population is 1,3) :ludes Ciry Council, City Manager and Management Services departments 0 a Total Capital Outlay $0 $0 $0 $0 $20,000 $0 Net Revenue/Cost $30,923 $46,226 $54,855 $32,090 ($13,977) $6,301 StafrReport to the City Council File No. ANN98-0001 November 17, 1998 E. SClMYM.4RY OF COST ANALYS/S s Based on the estimated costs and revenues shown in Table 2, the 320th Street annexation is expected to result in positive annual net revenues to the City over the evaluation period, with the accep6on of the year 2003, as a result of the surface water management capital expenditure projected for that year. 1999: 2000: 2001: 2002: 2003: 2004: 3Q,923 46,225 54,855 32,090 (13,97'n 6,301 EXHIBI PAG� QF �i