04-03-2023 - 04-03 12:01 Meredith HolzemerCITY OF
Federal Way
,'entered on Opportunity
Public Comment - Written
Meeting Type: LUTC - Regular Meeting
Meeting Date: April 3, 2023
Name: Meredith Holzemer
Resident/Business Owner: 0 Yes ❑ No
Comment Topic: Vesting to School Impact Fees to Support Housing Development
Written Comment:
Dear Councilmembers,
Mill Creek Residential is proposing a multifamily development project with approximately 350 units
located at 3202- 3702 S. 320th in Federal Way. We are optimistic about this investment in the City of
Federal Way and feel confident that the project will help to further the City's Housing Action Plan goals.
The City Council's decision to eliminate school impact fees for the 2023 year was the primary catalyst
for our decision to invest in Federal Way. If school impact fees are reinstated, we are uncertain whether
we would continue this pursuit.
To address this, we are writing to recommend that the City include an amendment to its Land Use
Code that provides for vesting to school impact fees upon the date of a complete land use entitlement
application. We are happy to work with you and planning to staff to propose a succinct draft of such an
amendment.
We have reviewed the proposed amendments to section FWRC 19.95.050 which limit annual increases
to school impact fees by a percentage, not to exceed a certain amount when the prior year rate was
zero. Unfortunately, varying fee amounts are not sustainable in a development proforma. As a result, a
developer would need to assume the highest rate scenario for the purposes of underwriting. While we
appreciate the intent of the proposed amendment, it may negate the positive effects of lowering or
removing school impact fees in the previous year.
For this reason, we hope you will consider allowing for vesting as to school impact fees, so that
investors may proceed with development plans in Federal Way with a reasonable amount of certainty.
We believe this solution will provide needed stability and continue to build on the positive results
created by eliminating the school impact fees in the current year.
We are looking forward to working with the City of Federal Way. Please do not hesitate to contact me
with any questions about this.
Sincerely,
Meredith Holzemer
Managing Director, Mill Creek Residential
Received: 0410312023 12:01