01-21-2023 Council Minutes - RetreatCITY OF
,:*:�k Federal Way
CITY COUNCIL
2023 Annual Council Retreat
Special Meeting Summary
Dumas Bay Centre
January 21, 2023 — 8:30 a.m.
1. Call to Order
Mayor Ferrell called the meeting to order at 8:40 a.m.
City officials in attendance: Mayor Jim Ferrell, Council President Linda Kochmar, Deputy Mayor
Susan Honda, Councilmember Lydia Assefa-Dawson, and Councilmember Jack Dovey.
Councilmember Erica Norton and Councilmember Jack Walsh participated remotely via zoom.
City staff in attendance: City Administrator Brian Davis, City Attorney Ryan Call, and City
Clerk Stephanie Courtney.
2. Pledge of Allegiance
Mayor Ferrell led the flag salute.
3. Welcome & Introductions
Mayor Ferrell, Council President Kochmar, and Deputy Mayor Honda welcomed all attendees.
Mayor Ferrell excused Councilmember Hoang Tran.
4. Review of Council Rules of Procedure
City Attorney Ryan Call led a discussion on Council Rules of Procedures. The discussion
centered on in -person attendance at City Council and Committee meetings along with small
housekeeping items. After much debate Council did not reach consensus on bringing forward
a rule modification.
5. Morning Break
The Council did not take a morning break.
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January 21, 2023
6. Downtown Federal Way
a. Envisioning Downtown
Mayor Ferrell introduced Senior Planner Chaney Skadsen. Ms. Skadsen
provided insight on the changing downtown landscape and demographic from a
past of single-family homes with a centralized mall to a more urban setting with
lifestyle amenities.
Ms. Skadsen highlighted the progress and steps taken to date. She noted they
will be reviewing proposals in 2023 for what the TC3 area could become with the
desire to create an iconic destination. Council thanked Ms. Skadsen for the
presentation and her work on the Ad -Hoc Committee; they also provided
feedback on elements they would like to see in the downtown.
Mayor Ferrell noted due to Council running ahead of schedule they will likely
re -order the presentations to allow for the consultants to present after the lunch
break.
b. Catalyzing Investment
Economic Development Director Tanja Carter provided information on the
economics of downtown development including how it works, who the players
are and the timing.
She discussed with Council some of the new businesses locating in Federal
Way; Mayor Ferrell added insight on why these businesses chose Federal Way.
Ms. Carter noted she is working to build relationships with the Chamber of
Commerce and business community to better understand what we currently
have and what our visions are.
At 10:32 a.m. Mayor Ferrell announced the Council would take a brief recess. The meeting
was reconvened at 1.0:51 a.m.
7. 320t" Dip Update
Public Works Director EJ Walsh provided information on the potential of dipping South
320th Street with an at grade crossing to the mall property to create a pedestrian -
friendly downtown connection. Mr. Walsh noted the consultant will be looking at the key
components and logistics including stormwater drainage issues, large powerlines, fiber,
and telephone wires which run under the north side of street. Director Walsh expects
the final report will be presented to Council in the third quarter of 2024.
Council thanked Director Walsh for the information and asked for periodic updates,
specifically if the consultant uncovers an issue which would make the dip improbable.
Councilmembers inquired about a pedestrian crossing bridge as an alternative; Mr.
Walsh noted the alternative pedestrian crossing is already incorporated into the project
scope of work.
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January 21, 2023
8. Code Amendments
Community Development Director Keith Niven briefed Council on the current
challenges and future opportunities to redefine parking, minimum and maximum
density, delineating downtown, architectural standards, and view protections from the
Performing Arts and Event Center (PAEC) or the future civic plaza through code
amendments.
Council thanked Director Niven and asked clarifying questions and provided feedback
on elements they would like to see incorporated in the downtown. He provided a
possible timeline and highlighted the procedural steps and timing required for noticing
code amendments.
9. Lunch Break
At 11:56 a.m. Mayor Ferrell announced the Council would be recessing for a lunch break.
The meeting was reconvened at 12:41 p.m.
10. Downtown Federal Way - Tax Increment District
a.
TIF 101
b.
Discussion of RCW & WA Examples
c.
Proposed Tax Increment Area
d.
Increment Forecast
e.
Proposed Project List
f.
Funding Mechanics
g.
Adoption Process
h.
Questions & Answers
Nick Popenuk, President of Tiberius Solutions, provided his background and
experience with urban renewal projects and specifically with Tax Increment Districts.
He noted Tax Increment Financing (TIF) allows local governments to invest in public
infrastructure and other improvements up -front and pay for those investments later.
It is a value revenue tool that uses taxes on future gains to pay for new infrastructure
improvements.
Mr. Popenuk explained the intent of this mechanism is for the improvement to
enhance the value of existing properties which increases tax revenue and
encourages new development. He also clarified that during the time period, all
incremental real estate tax revenues above the base rate at the time the district is
established would flow into the TIF.
He outlined the steps for adoption which include setting a boundary, list of public
improvements, anticipated private development, a finance plan, and economic,and
community impacts. Examples were provided from the Port of Vancouver and the
City of Kirkland. Council thanked Mr. Popenuk for the information and asked
clarifying questions on identifying projects.
Senior Planner Chaney Skadsen led a discussion on identifying the tax increment
area. Ideally the area would include parcels most likely to redevelop in the 25-year
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January 21, 2023
timeframe along with publicly owned property such as the TC3 property and Sound
Transit parcels. Council provided feedback and asked clarifying questions of Ms.
Chaney.
Community Development Director Keith Niven discussed the timing and
requirements before this process can move forward. He also noted the city will need
to determine and prioritize the list of projects.
Finance Director Steve Groom provided information on the financial considerations
of Tax Increment Financing (TIF) which is restricted to revenues for public
improvements within the identified area; agencies would continue to receive
revenues on frozen value. The TIF revenue estimate shows all agencies benefit
greatly at the end of the 25-year term. Director Groom noted the debt capacity and
budgeting the debt service is the only limiting factor. He concluded with the risk
summary and the policy questions which need to be addressed.
Council thanked staff and the consultants for the thorough presentations and asked
various questions regarding how this would affect partners such as the fire
department and if those impacts could be mitigated. Timing was also addressed to
which Director Niven noted staff is seeking Council input and direction as action
taken prior to June would allow this program to begin in 2024; after that date would
push year one to 2025.
Mayor Ferrell and Council discussed the need to get this right and consensus was
to wait until after June.
11. Afternoon Break — No afternoon break was taken.
12. 320t" Dip Update — This item was presented earlier in the meeting.
13. Code Amendments — This item was presented earlier in the meeting.
14. Closing remarks
Mayor and Council thanked staff and consultants for the informative presentations and for the
work on putting this retreat together.
15. Adjournment
There being nothing further on the agenda; the special meeting was adjourned at 2:32 p.m.
Attest:
�tAo� &"W
St ph nie Courtney
City Clerk
Approved by Council: Qal07/aOg3
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