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12-14-2022 Planning Commission Agenda Packet PLANNING COMMISSION SPECIAL MEETING AGENDA City Hall – Council Chambers December 14, 2022 – 6:00 p.m. 1. CALL MEETING TO ORDER 2. ROLL CALL 3. PUBLIC COMMENT 4. COMMISSION BUSINESS South Station Subarea Planning Briefing presented by Senior Planner Chaney Skadsen. Presentation by Otak Consultant, Mandi Roberts. 5. STAFF BUSINESS Manager’s Report 6. NEXT MEETING January 18th, 2023 - TBD Approval of 12/7/22 and 12/14/22 meeting minutes will be available 1/18/2023. 7. ADJOURNMENT Planning Commission meetings are held in-person. To request accommodation to attend or to provide public comment virtually, please contact Anna Lieck at 253 -835-2601 or anna.lieck@cityoffederalway.com, no later than 5:00 p.m. on Tuesday, December 13, 2022. Commissioners City Staff Lawson Bronson, Chair Keith Niven, Planning Manager Vickie Chynoweth, Vice Chair Anna Lieck, Admin Assistant II Diana Noble-Gulliford www.cityoffederalway.com Tom Medhurst 253-835-2601 Tim O’Neil Anna Patrick Jae So Hope Elder, Alternate Page 1 of 46 1 MEMORANDUM Community Development Department DATE: December 14, 2022 TO: Planning Commission FROM: Chaney Skadsen, Senior Planner Keith Niven, Planning Manager SUBJECT: South Station Subarea Plan Briefing Under the Revised Code of Washington (RCW) 36.70A.130, the City of Federal Way is required to: (1) plan for the succeeding 20-year population and employment growth forecast, and (2) update its comprehensive plan and development regulations to ensure the plan and regulations comply with the requirements of the Growth Management Act (GMA). In 2021, the City Council amended and adopted the Public Participation Plan for the 2024-2044 Periodic Update of the Comprehensive Plan. That plan set the scope for the update process and included creating a subarea plan for the area surrounding the future south Sound Transit (ST) station. The subarea plan is referred to as “South Station” and will be included in a new Chapter in the Comprehensive Plan titled “Centers”. Project Background The South Station’s proposed Planning Area (the Subarea) is poised for significant investment and transformation. Sound Transit is scheduled to add a Link Light Rail station to South Federal Way in 2032 (latest schedule commitment from ST), as part of the Tacoma Dome Link Extension (TDLE). This expansion to the Link Light Rail network strengthens Federal Way’s regional connection with cities to the north (existing line) and to the south, extending to Tacoma. The exact station location and track alignment are still being preliminarily designed by ST which has delayed the scheduled release of the Draft Environmental Impact Statement (EIS) from the Spring 2022 until sometime in the near future. The EIS will establish the preferred station location. Given this unknown, City staff and ST staff believe the preferred location for the new station to be proximate to the intersection of Enchanted Pkwy S and S 352nd St. Although there could be an argument made that this planning effort should pause until the location of the station is certain, City staff believe there are advantages to preparing this sub-area plan as part of the periodic update of the Comprehensive plan currently underway. As part of the EIS process, should it be determined the station be located not proximate to Enchanted Pkwy S and S 352nd St., the sub-area plan will be amended to incorporate the new information. Countywide Growth Center As a means of capitalizing on this catalytic transportation investment in the coming decade(s), the City applied to King County to be designated a candidate Countywide Growth Center (CGC). The application identifies a 212-acre area encapsulating the two known station alternatives identified by Sound Transit. Page 2 of 46 2 The application was successfully designated by King County as a candidate Countywide Growth Center (CGC), enabling the City to participate in countywide transportation funding competitions in 2022 and 2024. Developing a subarea plan to be adopted as part of the Periodic Update is a requirement of the County to remove the current “candidate” designation to the City’s Countywide Center. Project Purpose The purpose of this plan is to establish a long-range planning approach that will leverage the Subarea’s planned Link Light Rail station and conditional CGC designation to transform this part of Federal Way into a denser, economically vibrant, walkable, transit-oriented neighborhood. This Subarea Plan will be incorporated into the 2024 periodic update of the City’s Comprehensive Plan. It is anticipated that the Subarea will be planned to accommodate a greater portion of Federal Way’s future growth due to the transit station and to meet the CGC designation criteria. Project Vision A vision statement is an important component to many planning activities. This is particularly true for subarea plans that focus on small geographic areas anticipated for change. The South Station Subarea Plan draft vision statement and guiding principles were developed in part from the 2019 Framing City South community engagement efforts in partnership with Sound Transit, input from the South Station Stakeholder Group beginning in 2022, general members of the public, and property owners. The vision statement is intended to be broad and get to the heart of what the goals and policies of the subarea plan want to accomplish. The guiding principles help support the idea of the vision by identifying key areas for focus and builds a framework for the plan goals and policies. Draft Vision Statement The Federal Way South Station Subarea will provide new and diverse residential, commercial, and employment opportunities in a livable and thriving neighborhood that is bordered by preserved natural areas and includes ample green spaces and parks, as well as a safe network of multimodal streets and trails that enhance connectivity for all throughout the subarea and to and from the light rail station. Draft Guiding Principles 1. Promote a diverse and thriving economy with expanded employment opportunities - The future station area presents development opportunities that could support the vitality of both small businesses and larger commercial businesses. Promote changes that maintain important existing commercial businesses, while also supporting the development of new local retail, restaurants, and additional small businesses, as well as attracting non-service employment such as tech, non- profit, medical, and institutional employers. 2. Expand residential opportunities - Allow transit-oriented redevelopment that will expand housing opportunities and provide a mix of residential uses, along with mixed-use retail, services and employment, while also encouraging environmental stewardship (protection of trees, forests, and wetlands). Recognize proximity to the Blueberry farm, Brooklake Community Center, trails, and greenery as an asset that will enhance the quality of life for anyone that lives, works, or plays in the subarea. 3. Protect natural areas and building of historic significance - Preserve and protect nearby natural areas and expand public parks and open space areas to serve residents and employees in the growing subarea. Honor the past through the preservation of locally significant and historic features. Promote the rehabilitation and reuse of buildings and structures of local historic significance to bridge the past with the future. 4. Enhance placemaking and transit-oriented development within walking distance of the light rail station - Curate a mixed-use neighborhood that is attractive, identifiable, and active, and that Page 3 of 46 3 brings the community together. Beyond planned mass transit improvements, encourage development of infrastructure to nurture reliable and frequent public transit connections to lessen dependence on vehicles. 5. Enhance connectivity within and around the subarea, and improve safety for pedestrian and bicyclist safety - Improve streetscapes with wider sidewalks and various safety amenities to increase walkability in the area and to promote pedestrian and bike safety. Consider changes that help to make the area safer for pedestrians with new pathways, midblock cut-throughs, and alleys and remove barriers for crossing busy roads. Project Development To date, the subarea planning process has followed a community-informed and data-driven approach. Each stage of analysis has been presented and discussed with the South Station Stakeholder group that has been meeting monthly (sometimes semimonthly) since July 2022. Existing Conditions Overview The South Station subarea consists of a complex dichotomy of uses ranging greatly in intensity and density. Much of the area is currently commercial, characterized by retail establishments with large surface parking lots such as Costco and Home Depot, and the Jet Chevrolet car dealership. A number of institutional uses are also located in the Subarea: Todd Beamer High School, a maintenance facility owned by South King Fire and Rescue, Seattle Children’s urgent care, and the South Federal Way Park and Ride (King County Transit). Whereas, residential options fall within two categories: high density multifamily apartments complexes (Crosspointe Apartments and Park16), and about 30 single family lots spread across two neighborhoods. The subarea is home to several self-storage facilities, a concrete batch plant, and auto service-oriented businesses. The subarea includes a variety of open spaces such as the blueberry farm and Spring Valley Open Space. Environmentally critical areas are located along the south and west edges of the boundary creating a natural transition to potential development near the new light rail. Office uses, religious services, and utilities are few but scattered throughout and makeup the rest of the Subarea. A number of historically-significant features are located within and near the subarea boundary such as the Brooklake Community Center, historic Harding School – currently owned and occupied by the Federal Way Bethel Baptist Church, and the David T Denny and John Barker Cabins. Growth scenarios Page 4 of 46 4 As staff and the consulting team considered the current conditions, the timing for the future rail station, and the potential for rezoning properties as part of this planning activity, 2 alternatives were considered in addition to the “no change” alternative. These 2 alternatives are described in the attached Memo from OTAK. Subarea Plan Expectation at Completion The subarea planning effort is expected to be complete by the second quarter of 2023 and plan drafting will occur to be adopted as part of the 2024 Periodic Update of the Comprehensive Plan by December 2024. Although not drafted as yet, the subarea plan will likely include the following major topics: ▪ Introduction & Vision ▪ Community character and places ▪ Connectivity & mobility ▪ Environment ▪ Economic Vitality ▪ Housing ▪ Implementation Questions for the Commission 1. Are there any suggested revisions to the subarea boundary? 2. Is the selected growth scenario reasonable? 3. Are the planned densities reasonable? 4. As we move to the next step of this planning process, what should we be prioritizing? Page 5 of 46 Memorandum The Otak team with the support of Leland Consulting Group (consultant team) recently prepared an analysis of redevelopment potential and associated growth projections for an area defined as the “Phase 1 TOD Area” within the subarea planning area of the South Station in Federal Way. The attached presentation summarizes this analysis, and the explanations below provide background information for the methodology applied in the analysis and projections. Determining the TOD Planning Area The consultant team evaluated the status of existing properties and land uses in the full planning area and determined redevelopment potential. The team then collaborated with City staff to identify the 74.2-acre TOD area including properties in closest proximity to the potential station location, as well as properties with higher redevelopment potential (such as the Jet Chevrolet property). There is a trend toward new development and redevelopment of car dealership properties to cover less expansive acreage. This is related to the declining need for on-site inventory space as more people select vehicles from websites, as noted in this article: https://www.nytimes.com/2022/09/27/business/auto-dealerships-real-estate.html. The size of the TOD area was determined to ensure sufficient redevelopment capacity to meet or exceed growth targets and provide for the creation of a new transit-oriented district in the vicinity of the planned South Station light rail station. The consultant team also was drawn to this area because there would be an opportunity to create a walkable street grid for the TOD district between the two busy arterials of Pacific Highway S. and Enchanted Parkway S. Table 1.0, provided on the last page of this memorandum provides a list of the current land uses, property ownerships, and sizes for the TOD area. All of the 74.2-acre TOD area is currently zoned “Commercial Enterprise” or CE. Building Comparison Case Studies to Inform the Mix of Land Use and Building Types The consultant team pulled data from 36 buildings constructed in the last ten years in TODs and city center areas around the Puget Sound Region. Buildings and related site construction in Burien, Lynnwood, University Place, Bothell, and Columbia City were reviewed. The team combined the total land acreage of those buildings together and analyzed the share of acreage for each type of building (residential, mixed-use, and nonresidential) to arrive at the representative building use mix of 7 percent nonresidential, 59 percent mixed-use residential, and 34 percent residential. This represents an average of what has been built in these comparison areas over the past decade. Key assumptions included the following. To: Chaney Skadsen and Keith Niven, AICP, CeCD, City of Federal Way From: Mandi Roberts, AICP, PLA, Otak Brian Vanneman, Principal, and Andrew Oliver, Urban Development Analyst, Leland Consulting Group Date: December 7, 2022 Subject: Federal Way South Station, TOD Area Redevelopment Analysis Background Memorandum Page 6 of 46 2 • The consultant team used the share of mixed-use, multifamily residential, and commercial / non-residential development within these areas and within each building to create several prototypes for future development: Over the full build-out time frame: o Residential buildings: Average residential density per acre across all buildings at 127 DUs/acre o Mixed-Use buildings: Average residential density per acre across all buildings at 142 DUs/acre and average nonresidential density at 13,451 square feet of rentable building area (RBA) per acre. o Nonresidential buildings: Average density of 106,300 square feet of rentable building area (RBA) per acre • During the first six years of development (2024 to 2030), prior to completion of the light rail station, demand for mixed-use housing and commercial space is assumed to be lower. Based on a review of comparable projects, we assume residential density during this period of 70 DUs/acre and nonresidential density during this period of 7,800 square feet of RBA per acre in mixed-use buildings. The consultant team then applied these densities to the South Station Phase 1 TOD area acreage (less 30 percent for streets/access, surface water management, topography/slopes, critical areas, etc. discussed below) to estimate new jobs and housing units at full build-out of the TOD area. Given the high demand for a variety of housing types to fit various income levels throughout the region, this mixed-use building form would expand the availability of housing and maximize the number of people living and working within proximity to high capacity transit stations. This development pattern is consistent with state, PSRC, and countywide policies encouraging density in Center areas including the countywide growth center. The density and building form being considered are consistent with the greater Seattle-area market, and with rezoning, this type of redevelopment would be expected occur in the station area over the long term (remembering that the station is not scheduled to be open until at least 2032). Determining the Net Buildable Acreage (70 Percent of the total Land Area) Assuming that the sites would be redeveloped into the mixed-use, multifamily residential, and commercial/non- residential development typical of TOD, a net buildable acreage of 70 percent was assumed and applied to the total Phase 1 TOD area acreage of 74.2 acres. It is typical in the planning industry to assume 20 to 30 percent of sites will be non-buildable given a full range of site development needs, including streets and access (introducing a grid pattern), protection of critical areas, topographic conditions, open space/public amenity requirements, surface water management, and other factors. The consultant team had reviewed existing conditions in the planning area through aerial maps and in-person reconnaissance and decided to use the higher percentage of 30 percent deducted from the total land area (thus assuming 70 percent buildable area) given that there would be future public rights-of-way, private access ways, several areas of existing wetlands, and surface water facilities in the TOD area. GIS mapping was used to map the Phase 1 area and calculate the total acreage (see Table 1.0). Assumed Densities of Potential Redevelopment and Related Building Form The companion presentation to this memorandum displays pictures of representative buildings to illustrate the average densities of the 36 buildings studied and discussed above. The assumed building height for TOD across the planning area is up to the building code allowed height limit for wood- frame over podium construction (e.g., 4 to 6 levels of residential over 1 to 3 levels of concrete podium) with typically maximum above grade building heights of 7 levels, consistent with the 36 comparative buildings studied (in TODs or town centers and built within the last 10 years). Development in this form supports the financial feasibility of structured parking, as such reducing the amount of surface parking in TODs. Page 7 of 46 3 Full build-out of all TOD area properties would not be expected to occur within the next 20 years. While designating a larger area for rezoning and potential redevelopment provides the flexibility for achieving better TOD results by the time the station is operational, the projections for households, populations, and jobs at full build-out levels are not likely to occur within the next 20 years. Therefore, we have also provided two scenarios in addition to full build-out: • A six-year scenario, which assumes that 4 acres of the TOD area will be redeveloped by 2030 at a lower density as described above • A 20-year scenario, which assumes a 70 percent “Market Factor” – the share of the area that would NOT be expected to redevelop over the planning horizon. This scenario represents the consultant team’s estimate of what is most likely to occur in the South Station area over the next 20 years and assumes that approximately 16 acres of the total 74.2 acre TOD area will redevelop over the planning horizon. This represents 30 percent of the 53.7 net buildable acres (after allowing for right-of-way, stormwater, etc. as discussed previously) The status of build-out and growth should be evaluated again at the next Comprehensive Plan update in 10 years, and the City could adjust the boundaries of the rezoning and redevelopment area at that time if warranted. Also, since the build-out calculations exceed targets, there could be an opportunity to introduce lower density multifamily land uses in the station area, or at least the broader countywide growth center (such as multifamily buildings up to 5 stories rather than 7 stories, condominiums, garden apartments, multiplexes, and other forms of site development). However, the market demand and activity for these types of building forms as part of TOD in station areas is less evident than for podium construction up to 7 stories. Calculating Jobs and Rationale for 425 SF /Employee for the Jobs Calculation The consultant team assumed a job density of 425 square feet (SF)/employee. This is based on several data sources. The current job density in the South Station Subarea is 377 square feet per job. The 2021 King County Urban Growth Capacity Report (https://kingcounty.gov/~/media/depts/executive/performance-strategy-budget/regional- planning/UGC/KC-UGC-Final-Report-2021-Ratified.ashx?la=en) recommends an assumption of 450 square feet per job for new mixed-use development in Federal Way citywide. However, the report’s recommendations for other cities with more TOD-style infill development such as Kent are lower (i.e., more dense), at 300 square feet per job. The consultant team analyzed the average employment density recommended by the report for the most likely industries to locate in the South Station area based on industry and market trends and the Washington Employment Security Department’s forecasts for job growth by industry in King County over the next decade. This analysis resulted in a weighted average of 425 square feet per job, which was used throughout the calculations How the Projections Address Potential Job Displacement and Baseline Job Growth The numbers in the analysis account for jobs lost to redevelopment. The consultant team estimated 736 jobs lost to redevelopment if the TOD area is fully redeveloped. This number is based on the share of the total countywide growth center jobs within the Phase 1 area (data from Census LEHD) and corroborated with ESRI’s estimates of jobs within the Phase 1 area. We estimate total new jobs at buildout to be 1,927 in the TOD area. After taking out the 736 jobs lost to redevelopment, this leaves net new jobs of 1,191 jobs. Also note that our model assumes some “baseline” job growth in the remainder of the South Station Subarea that is not rezoned. The consultant team estimated additional 260 jobs outside of the TOD area in existing buildings by 2044 and these are factored into the employment numbers shown in the attached presentation. Full Results of Scenarios The attached presentation contains building prototypes and more detail on the projection methodology and results, and the attached Excel spreadsheet contains the full results of the full build-out, six year, and 20-year scenarios for both the Phase 1 TOD Area and the remainder of the subarea. Page 8 of 46 4 Table 1.0—Phase 1 Parcels Parcel Number Address Property Name Zoning Acres Land Use TAZ 292104915908 WATER DETENTION POND CE 1.7 Utility, Public 1193 292104915809 WATER DETENTION POND CE 1.9 Utility, Public 1193 292104912509 35400 PACIFIC HWY S Used Tire Sales CE 0.9 Service Building 1193 292104909604 35205 ENCHANTED PKWY S U-HAUL & SELF-STORAGE (FORMER LOWES) CE 5.9 Retail(Discount) 1193 292104904902 1220 S 356TH ST DBM OFFICE PARK CE 3.8 Office Building 1193 292104904803 35200 PACIFIC HWY S FEDERAL WAY SUPREME SELF- STORAGE CE 5.2 Vacant(Commercial) 1193 292104903607 1215 S 356TH ST Express Towing CE 3.9 Service Building 1194 292104900306 35516 PACIFIC HWY S USED TIRE WAREHOUSE CE 0.5 Warehouse 1193 292104900207 1200 S 356TH ST DBM CONSTRUCTION CO CE 7.5 Industrial(Gen Purpose) 1193 292104900108 VACANT COMMERCIAL CE 0.0 Vacant(Industrial) 1194 282104906908 35700 ENCHANTED PKWY S JET CHEVROLET CE 6.2 Auto Showroom and Lot 1199 202104916301 VACANT COMMERCIAL CE 0.7 Vacant(Industrial) 1171 202104916202 35000 PACIFIC HWY S DASH POINT TRANSPORTATION CO. CE 0.9 Warehouse 1171 202104915501 35050 PACIFIC HWY S Alaska Vehicle Transport CE 1.3 Vacant(Commercial) 1171 202104914801 35100 PACIFIC HWY S Cascade Drilling CE 1.2 Warehouse 1171 202104911609 1393 S 351ST ST AMERICAN CONCRETE CE 4.3 Service Building 1171 202104905908 1351 S 351ST ST TRAILER REPAIR CE 1.2 Service Building 1171 202104904307 VACANT COMMERCIAL CE 1.3 Vacant(Industrial) 1171 185295012008 34919 ENCHANTED PKWY S Federal Way Crossings - Line Retail CE 0.8 Shopping Ctr(Maj Retail) 1171 185295011000 34817 ENCHANTED PKWY S Federal Way Crossings - Restaurants CE 0.7 Shopping Ctr(Maj Retail) 1171 185295010002 1507 S 348TH ST Federal Way Crossings - Line Retail CE 0.9 Shopping Ctr(Maj Retail) 1171 185295009004 1413 S 348TH ST Federal Way Crossings - Line Retail CE 0.8 Shopping Ctr(Maj Retail) 1171 185295008006 1401 S 348TH ST Federal Way Crossings - Line Retail CE 1.0 Shopping Ctr(Maj Retail) 1171 185295007008 34814 PACIFIC HWY S MCDONALDS CE 0.8 Restaurant(Fast Food) 1171 185295006000 34902 PACIFIC HWY S Federal Way Crossings - Restaurant CE 0.6 Restaurant/Lounge 1171 185295005002 35002 PACIFIC HWY S Federal Way Crossings - Line Retail CE 0.6 Shopping Ctr(Maj Retail) 1171 185295004005 35105 ENCHANTED PKWY S Federal Way Crossings - Line Retail CE 1.3 Shopping Ctr(Maj Retail) 1171 185295003007 35025 ENCHANTED PKWY S Federal Way Crossings - Trampoline Nation CE 1.4 Shopping Ctr(Maj Retail) 1171 185295002009 35007 ENCHANTED PKWY S Gravity Coffee / Orange Theory CE 0.7 Retail Store 1171 185295001001 1405 S 348TH ST Federal Way Crossings - LA Fitness/Office Depot/Li CE 11.3 Shopping Ctr(Maj Retail) 1171 292104909000 (South) Vacant Land CE 2.4 Right of Way/Utility, Road 1194 292104909000 (North) Vacant Land CE 2.4 Right of Way/Utility, Road 1193 74.2 Total Acreage Page 9 of 46 5 Page 10 of 46 Federal Way South Station Area Plan Development Scenarios LELAND CONSULTING GROUP PREPARED FOR PREPARED BY NOVEMBER 2022 Page 11 of 46 2Federal Way South Station | Development Scenarios Purpose of Analysis •Prepare forecasts for three development scenarios: •Full Build Out •6 year –2024 to 2030 •20 year –2024 to 2044 •Address Specific Questions and Share Methodology •Employment growth outside of the areas that redevelop •What kinds of jobs are expected for Station Area?(Future SF/Employee) Page 12 of 46 3Federal Way South Station | Development Scenarios Full Build Out 100% of Phase 1 hatched area is developed. Three Scenarios 20 Year6 Year About 4 acres are redeveloped.70% Market Factor Applied Page 13 of 46 4Federal Way South Station | Development Scenarios Scenarios—Acreages/Land Area Gross Area (Acres) by Scenario Build Out 6 Year 20 Year 389 389 389 315 315 315 74 74 74 TOD Residential - Redeveloped 25 2 8 TOD Mixed Use - Redeveloped 44 2 13 TOD Non-Res. - Redeveloped 5 0 2 Other Area 0 70 52 22 TOD Area (Phase 1; Rezoned) Sub Area Non TOD Area Build Out 6 Year 20 YearAcres Acres Acres Page 14 of 46 Full Build Out Page 15 of 46 6Federal Way South Station | Development Scenarios Full Build Out Methodology •Gross Area Available for Redevelopment •Net Buildable Area (30% less than Gross) •New Development based on Prototypes •Takes place on Net Buildable Area •Dwelling Units per acre •Square feet of commercial/nonresidential rentable building area (RBA) per acre •Population •Jobs •Activity Units and AU/acre Page 16 of 46 7Federal Way South Station | Development Scenarios Assumed Development Pattern Based on Prototypes Multifamily Only34% Mixed Use (Multifamily w/Commercial)59% Nonresidential7% Share of Net Buildable AreaBased on an analysis of 36 buildings located in 5 TOD comparison areas, LCG developed the following prototypes: •Mixed-Use Development, 59% of buildable area, with multifamily housing on upper floors over non-residential development (e.g., office, retail) on lower floors •Multifamily, 34% of buildable area without commercial space, often senior or affordable housing. •Nonresidential aka Commercial 7% of buildable area, i.e., commercial/retail, office, healthcare, civic, other. Page 17 of 46 8Federal Way South Station | Development Scenarios Mixed-Use Development: Average Residential Density 142 0 20 40 60 80 100 120 140 160 Average MF w/CommercialUnits per AcreTypical Project:Alta Arlo (Columbia City) 141 DU/Acre Average Density Across All Mixed-Use Projects Reviewed Page 18 of 46 9Federal Way South Station | Development Scenarios Mixed-Use Development: Average Nonresidential Building Area Per Acre 121,263 13,451 110,000 115,000 120,000 125,000 130,000 135,000 140,000 Average MF w/Commercial RBA per Acre Residential Commercial Sonata (Columbia City) –11,744 sq ft commercial/acre Page 19 of 46 10Federal Way South Station | Development Scenarios Residential Development: Average Density 142 0 20 40 60 80 100 120 140 160 Average MF w/CommercialUnits per AcreAverage Dwelling Units/Acre Across Multiple BuildingsTypical Project:Greenhouse (Columbia City) 146 DU/Acre Page 20 of 46 11Federal Way South Station | Development Scenarios Nonresidential Development:Average Building Area Per Acre 106,300 0 20,000 40,000 60,000 80,000 100,000 120,000 Average Nonresidential RBA per Acre Commercial Redstone (Lynnwood) –85,473 sq ft commercial/acre Page 21 of 46 12Federal Way South Station | Development Scenarios Assumed Residential Mix •Across all 36 buildings, the average share of nonresidential floor area was 18% •In mixed-use buildings (residential with ground floor commercial), the average share of nonresidential floor area was 21%. 82%79% 18%21% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% All Buildings Mixed Use Only Share of Rentable Building Area (square feet) Residential Nonresidential Page 22 of 46 6 Year Scenario Page 23 of 46 14Federal Way South Station | Development Scenarios Underutilized PropertiesCandidates for Near Term Development/Catalyst SitesEasy Walking Distance to Proposed Station 7.48 acres - 3.86 acres 3.84 acres Combined ownership (DBM Contractors) Improvement to Land Value Ratio Page 24 of 46 15Federal Way South Station | Development Scenarios 6-Year ScenarioLCG Recommendation Crossings Property redevelops during 6-year window ~4.0 acres of redevelopment (buildings) Mix of Mixed-Use and Multifamily Prototypes ~400 housing units Commercial space ~3.5 acres of ROW Park Plaza Structured Parking Other uses TBD Page 25 of 46 20 Year Scenario Page 26 of 46 17Federal Way South Station | Development Scenarios Full Build Out Scenarios 6 Year 20 Year Purpose: Test maximum capacity; Test capacity to meet PSRC Center targets. Purpose: Inform 6-year capital facilities planning.A: Policycast: Prepare an estimate that is towards the high end or “aggressive” for what is possible (forecast), in order to reflect City and regional policy of focusing growth in centers. B: Prepare LCG’s best estimate of the amount of development most likely to occur in the area, based on LCG’s market analysis (100% market based).Page 27 of 46 18Federal Way South Station | Development Scenarios Comparison Areas South Sound Centers RGCRGC RGC RGC RGC RGC North Sound Centers CGC SounderRail BusLINK Rail -10 SounderRailLINK Rail -2 BusBRT Planned LINK Rail -2BusBRT Planned < 500 dusover 20 years - Page 28 of 46 19Federal Way South Station | Development Scenarios Housing Units South Station Housing Unit Growth Projections, 2022-2044 Source: LCG, City of Federal Way, Costar, ESRI Page 29 of 46 20Federal Way South Station | Development Scenarios Comparison Areas RGCRGC RGC RGC RGC RGCCGC SounderRail BusLINK Rail -10 SounderRailLINK Rail -2 BusBRT Planned LINK Rail -2BusBRT Planned - Page 30 of 46 21Federal Way South Station | Development Scenarios Comparison of Scenarios 441 441 441 6,590 196 1,977 7,031 637 2,418 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Build Out 6 Year 20 Year Total Housing Non TOD Area TOD Area (Phase 1; Rezoned)Sub Area Page 31 of 46 Employment and Employment Density Page 32 of 46 23Federal Way South Station | Development Scenarios Employment Forecast Number of New Jobs by Industry in King County, 2020-2030 Source: Washington Employment Security Department -20,000 -10,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Manufacturing Natural Resources / Mining Wholesale Trade Transporation / Warehousing Financial Activities Other Services Construction Government Leisure / Hospitality Education / Health Retail Information Professional / Business Services New Jobs 2020-2025 New Jobs 2025-2030 Page 33 of 46 24Federal Way South Station | Development Scenarios Future Trends Health Care Source: LEHD, Census OnTheMap Source: City of Federal Way Page 34 of 46 25Federal Way South Station | Development Scenarios South Station Jobs Top Employment Sectors in Subarea (2019) Source: LEHD, Census OnTheMap Employment Sector Employees Share Total Employees in Subarea 1,631 100% Retail Trade 910 56% Hospitality & Food Service 331 20% Health Care 79 5% Construction 63 4% Professional Services 53 3% Management 49 3% Arts, Entertainment, and Recreation 44 3% Other Services 43 3% Real Estate & Leasing 30 2% Transportation & Warehousing 29 2% Page 35 of 46 26Federal Way South Station | Development Scenarios Office - 50,000 100,000 150,000 200,000 250,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022YTD Office Construction (Building Square Feet), City of Federal Way One office building has been built in Federal Way in the last decade.<Page 36 of 46 27Federal Way South Station | Development Scenarios Employment •Current ratio of square feet of rentable building area per employee in the subarea = 460 SF/employee •1,000,470 RBA nonresidential (employment) space •2,174 jobs Page 37 of 46 28Federal Way South Station | Development Scenarios EmploymentKing County Buildable Lands Report, 2021Federal Way Citywide Page 38 of 46 29Federal Way South Station | Development Scenarios Square Feet/Job Employment Projected Typical Share of Sector Growth in in TOD New FWSS King Cty.#%Jobs Professional /Business Services 62,000 102 6%10% Information (Technology)61,000 0%8% Retail/General Commercial 47,000 910 56%30% Health and Education 43,000 79 5%15% Leisure/Hospitality (Incl Food Services)22,000 375 23%22% Government 18,000 0%2% Construction 13,000 63 4%5% Other Services 8,000 43 3%5% Financial Activities 8,000 30 2%2% Transportation/Warehousing 4,000 29 2%- 1% Wholesale Trade 2,000 0%- 0% Natural Resources 0 0%- 0% Manufacturing -14,000 0%- 0% Total 1,631 100%100% Weighted Average Source WA ESD US Census LCG 2020-2030 (LEHD)PSRC Existing Cluster in FWSS? Page 39 of 46 30Federal Way South Station | Development Scenarios Square Feet/Job Employment Projected Typical Share of Av. Emp SF/Job Sector Growth in in TOD New FWSS Density FWSS King Cty.#%Jobs New Jobs Professional /Business Services 62,000 102 6%10%300 - 600 450 Information (Technology)61,000 0%8%300 - 600 450 Retail/General Commercial 47,000 910 56%30%300 - 600 400 Health and Education 43,000 79 5%15%300 - 600 450 Leisure/Hospitality (Incl Food Services)22,000 375 23%22%300 - 600 375 Government 18,000 0%2%300 - 600 450 Construction 13,000 63 4%5%300 - 600 450 Other Services 8,000 43 3%5%300 - 600 450 Financial Activities 8,000 30 2%2%300 - 600 450 Transportation/Warehousing 4,000 29 2%- 1%700 - 1,200 950 Wholesale Trade 2,000 0%- 0%700 - 1,200 950 Natural Resources 0 0%- 0%700 - 1,200 950 Manufacturing -14,000 0%- 0%700 - 1,200 950 Total 1,631 100%100% Weighted Average 425 Source WA ESD US Census LCG LCG KC BLR 2020-2030 (LEHD)PSRC "South" Area Existing Cluster in FWSS? Page 40 of 46 31Federal Way South Station | Development Scenarios Employment •King County Buildable Lands Report •Citywide FW Mixed Use Guidance: 450 SF/emp •Kent: 300 SF/emp •Current ratio of square feet of rentable building area per employee in the subarea = 460 SF/employee •1,000,470 RBA nonresidential (employment) space •2,174 jobs 2044 Assumption: 425 SF/employee Page 41 of 46 Non-TOD Area TAZ Considerations Page 42 of 46 33Federal Way South Station | Development Scenarios 2018 Jobs by TAZ Source:PSRC via City of Federal Way. Data received by LCGNovember 2022. Page 43 of 46 34Federal Way South Station | Development Scenarios Growth Trends Source: LEHD / Census -50 0 50 100 150 200 2011 2012 2013 2014 2015 2016 2017 2018 2019 Job Growth by Year in Study Area •Yearly Job Growth: •2.5% average •0.9% average 2016-2019 •Vacancy Rate •Currently 0.24% •Below 5% since 2014 Source: Costar 0% 5% 10% 15% 20% 25% 30% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022YTD Nonresidential Vacancy in Study Area Page 44 of 46 35Federal Way South Station | Development Scenarios Potential Baseline 2018-2044 Change in Jobs by TAZ •This scenario assumes no rezoning of TOD area. •Assumes 0.9% yearly increase in jobs based on past 5 years •Only applies to TAZs with reasonable likelihood of job growth within current buildings •Adds 464 jobs total •257 in non-TOD area Page 45 of 46 Thank You! LELAND CONSULTING GROUP Page 46 of 46