_HEX 23-005 WinCo Foods UPV Staff ReportCITY OF
Federal Way
Land Use Process Recommendation
and
Staff Report
September 29, 2023
Project Information
CITY HALL
33325 Sth Avenue South
Federal Way WA 98003-6325
(253) 835-700Q
mM' cityoffederalway. com
Permit Numbers : No. 21-103294-UP / 21-103298-SE
Project Name: WINCO FOODS CZA AMENDMENT
City Staff Contact:
Chaney Skadsen, Senior Planner
City of Federal Way
33325 8th Ave South Federal Way, WA 98003
Chaney. skadsen(a)cityoffederalway.com
253-835-2644
Applicant:
Nathan Coombs
Petersen-Staggs Architects, LLP
5200 West State St. Boise, ID 83703
Property Owner:
WinCo Foods, LLC
650 N. Armstrong Place
Boise, Idaho 83704
(208) 377-0110
Property Address: 160 SW Campus Drive, Federal Way, WA 98003
Parcel Number(s): 4159200710
Zoning District:
Community Business (BC) with a Concomitant Zoning
Agreement (CZA) containing specific conditions and
limitations.
Comprehensive Plan
Designation:
Community Business with a Concomitant Zoning
Agreement (CZA) containing specific conditions and
limitations.
Adjacent Uses:
North: Public Park (Panther Lake)
South: Commercial/Medical Office (Starbucks & Dental
Office)
East: Institutional/ Residential (1st Ave S, Panther Lake
Elementary School, Fox Run Apartments)
West: SW Campus Dr, Campus Highlands Division No.
03 Subdivision (Single Family neighborhood)
Project Description:
Amend existing Concomitant Zoning Agreement to
remove its applicability to the WinCo Foods property.
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II. BACKGROUND
Site photo facing North, Provided by applicant August 10, 2021
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On August 10, 2021 the Community Development Department of the City of Federal Way
received a Process V (Exhibit A) and Process III Land Use application (file #21-103295-UP)
and Environmental Checklist (file #21-103298- UP) proposing an amendment to an existing
Concomitant Zoning Agreement (CZA) for the property located at 160 SW Campus Drive,
parcel number 415920-0710 (WinCo Foods property). The property is currently zoned
Community Business (BC), with additional regulations and restrictions on top of the base
zoning as a result of the CZA, and is used as a WinCo Foods grocery store.
On August 10, 2022 the Community Development Department received a letter from the
applicant withdrawing the Process III Land Use application (file #21-103295-UP) and
requesting that the City proceed only with review of a Process V Land Use application to
amend the CZA (file #21-103294-UP) (Exhibit Q).
The purpose of the proposed amendment to the CZA is to remove the CZA's applicability as
to the WinCo Foods property entirely, leaving the WinCo Foods property zoned BC without
any additional regulations or restrictions. The UPV Land Use application and decision are
only related to the CZA amendment and if approved, will not grant land use approval of any
site development. Any subsequent development of the property associated with this request
may only be approved if found to be consistent with codes in effect at the time of application,
including development regulations, clearing and grading, tree/vegetation retention, storm
drainage, and transportation.
Pursuant to Section 3 of the CZA, the "agreement may be amended by the City or the
Owner by filing an application therefore, which shall be considered and heard in the same
manner as a City -initiated quasi-judicial rezone of the property. Such action shall not release
the Owner or the City from any obligation assumed under the CZA, unless and until such
amendment has been approved by the City."
Pursuant to Federal Way Revised Code (FWRC) 19.75, city -initiated quasi-judicial rezones
must be reviewed and decided upon under Process V. Under Process V, the hearing
examiner holds a public hearing and based on the record of that hearing makes a
recommendation to city council, who will ultimately make the final decision on the
application.
III. REASON FOR THE REQUEST
The original CZA limits allowable uses, establishes specific development standards, and is
binding upon all of the Owners of the property, their heirs, successors in interest and
assigns, and shall run with the land described (Exhibit 8).
The applicant intends to partially redevelop the WinCo Foods grocery store located at 160
SW Campus Drive, parcel number 415920-0710. Under the current limitations outlined in
the CZA, a proposal to expand the existing WinCo Foods grocery store to achieve a total
footprint of 81,591 square feet would be prohibited, as this proposal exceeds the maximum
allowed square footage allowed in the CZA, which is 45,000 square feet of gross leasable
area.
The applicant has requested to amend the CZA to entirely remove the WinCo Foods
property from the requirements of the CZA, resulting in removal of the limitations on the
allowed maximum square footage outlined in the CZA and returning the property to solely
the regulations applicable in the underlining zoning district, Community Business (BC)
(Exhibit C). The proposed CZA amendment does not amend, remove, or in any way alter the
applicability of the CZA to the three other properties that are currently subject to the CZA,
see Table 1 below for more information regarding the properties currently governed by the
CZA.
IV. DISCUSSION
The City and Quadrant Corporation, a Washington corporation ("Quadrant") were parties to
the original Concomitant Zoning Agreement dated July 24, 1990. The CZA applies to the
following parcels outlined in Table 1 below.
Table 1: Current Properties Governed by the CZA
Parcel
Existing Use
4159200710
Grocery (WinCo Foods)
4159200715
Medical Office Retail (Starbucks, Federal Way Modern Dentistry,
Victoria Chang, DMD)
4159200720
Restaurant (IHOP)
4159200725
Surface Parking
On June 4, 1991, the Federal Way City Council approved Ordinance No.91-99 (Exhibit D),
rezoning an approximate 14-acre site located at the northwest corner of Southwest 348th
Street and 1 st Avenue South from Single Family Residential (RS 9.6) to Community
Business (BC) and adopting specific conditions as contained in the adopting ordinance. The
rezone permitted development of the site consistent with the Community Business Land Use
Classification of the City's Comprehensive Plan in effect at that time, as supplemented by
the simultaneously adopted CZA.
The CZA contains, among other things, limits to allowable uses on the property, specific
development standards for maximum building size, fagade modulations, location of parking,
buffers, open space, park development fees and surface water improvements.
Pursuant to the CZA, all development of the property except with respect to the use and
area of use provisions as set forth in Section 2B and the rear facade modulation provisions
set forth in Section 2C, shall in all respects comply with the provisions and limitations of the
Federal Way Zoning Code Chapter 45, Community Business District Regulations, as the
same now exists or may hereafter be amended. The Federal Way Revised Code has been
amended and restructured since the adoption of the CZA in 1991. The Community Business
zone once outlined in Chapter 45 of the Federal Way Revised Code is currently outlined in
Chapter 19.220 containing the applicable zoning and development regulations.
The CZA further outlines that the allowable uses on the property shall be limited to those set
forth in Chapter 40, Neighborhood Business District Regulations of the Federal Way Zoning
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Code as the same now exists or may hereafter be amended with the exception of the
following provisions per Section 2B:
(i) Owner shall be permitted to develop on the property one grocery store of a
size not to exceed 45,000 square feet gross leasable areas, and
(ii) Owner shall be permitted to develop on the property one drug store of a size
not to exceed 22,000 square feet of gross leasable area, and
(iii) No vehicle service station use shall be permitted on the property.
As discussed in Section II Background and Section III Reason for Request, the purpose of
the proposed amendment to the CZA is to remove the applicability of the limitations on
allowable size and maximum gross leasable area as to the WinCo Foods property to allow
for a future potential expansion of the existing WinCo Foods grocery store. Under the
current limitations set forth by the CZA, redeveloping a portion of the WinCo Foods property
to expand the building and achieve a total footprint over 67,000 square feet is not allowed.
The underlying zoning district of the WinCo Foods property is Community Business (BC).
The BC zone allows a broad mix of uses, including general, specialty, and service retail;
commercial; office; commercial/residential mixed -use; and supportive uses. Grocery stores
are one of the permitted uses with in the BC zone and are not subject to a maximum square
footage threshold per FWRC 19.220.010 Office/retail — Manufacturing and production,
limited.
Per Section 3 of the CZA the agreement may be amended by the City or the Owner by filing
an application, which shall be considered and heard in the same manner as a City -initiated
quasi-judicial rezone of the property. Such action shall not release the Owner or the City
from any obligations assumed under the Concomitant Zoning Agreement, unless and until
such amendment has been approved by the City.
Seeking less restrictive limitations, the City received a request from the applicant for a City
initiated quasi-judicial rezone. Pursuant to the Chapter 19.75 FWRC the request is treated
as a non -project -related rezone and conducted pursuant to procedures of a non -project -
related Process V "Quasi -Judicial Rezone."
V. STATE ENVIRONMENTAL POLICY ACT
The City of Federal Way issued a Determination of Nonsignificance (DNS) for the proposed
action on May 27, 2022 (Exhibit F). This determination was based on review of information
on file, including the environmental checklist and staff evaluation (Exhibit E) which resulted
in the conclusion that the proposal would not result in probable significant adverse impacts
on the environment.
Pursuant to the requirements of FWRC 14.10.040(3) Notice of a threshold determination or
environmental impact statement hearing on nonproject proposals shall be published in a
newspaper of general circulation in the city, mailed to interested parties or agencies who
have registered with the city, and posted in the City Hall and on the city web page.
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The Notice of Determination of Nonsignificance was published in the Federal Way Mirror
(Exhibit G); interested parties and agencies with jurisdiction (Exhibit H) were notified by e-
mail; and property owners within 600 feet (Exhibit 1) were mailed notices. The site was also
posted with two public notice boards (Exhibit J), and the notice was posted on the City's
official notification boards per the Declaration of Distribution (Exhibit K).
VI. PUBLIC COMMENT & NOTICE
The City received one comment on June 6, 2022 during the 14-day comment period, which
ended on June 10, 2022 (Exhibit L). The public comment concerned traffic impacts. The City
considered the comment received. The appeal deadline concluded on July 1, 2022. There
were no appeals of the environmental determination.
In accordance with the requirements of FWRC 19.75.060 a Notice of Application was
prepared was published in the Federal Way Mirror (Exhibit L) and a copy of the notice was
mailed to persons receiving property tax statements for all property within 300 feet of each
boundary of the subject property (Exhibit M), on September 15, 2023. See the Declaration of
Distribution (Exhibit P). The on -site public notice boards and city's official notice boards were
posted prominently on the site on September 28, 2023 (Exhibit N).
1. These findings are based on a review of city documents and items submitted by the
applicant and received on August 10, 2021, and subsequent resubmittal date April
26, 2022.
2. The proposal is consistent with ensuring that the health, safety, and welfare of the
citizens of the city is preserved.
3. The proposal meets all of the zoning standards as required by the CZA and the
FWRC per analysis above.
4. The date of the notice of complete application included on the Notice of Application
references the original Use Process III application.
VII. PUBLIC HEARING
In accordance with the requirements per FWRC 19.75.060, notice of the October 11, 2023
Hearing Examiner public hearing was included in the Notice of Application published in the
Federal Way Mirror (Exhibit L) and included in the copy of the notice that was mailed to
persons receiving property tax statements for all property within 300 feet of each boundary
of the subject property (Exhibit M), on September 15, 2023. See the Declaration of
Distribution (Exhibit P). The on -site public notice boards and city's official notice boards also
included the notice of public hearing and were posted prominently on the site on September
28, 2023 (Exhibit N).
VIII. ANALYSIS OF DECISIONAL CRITERIA
Pursuant to the provisions agreed upon within the CZA, the agreement may be amended by
the City, or the Owner by filling an application therefore, which shall be considered and
heard in the same manner as a City -initiated quasi-judicial rezone of the property. The
Federal Way Revised Code (FWRC) establishes review procedures and decisional criteria
for deciding upon various types of land use applications. Pursuant to FWRC 19.75,
application for a quasi-judicial rezone must be reviewed and decided upon under Process V.
Under Process V, the Hearing Examiner will hold a public hearing and, based on the record
of that hearing, make a recommendation to the city council, who will then decide upon the
application.
City -initiated quasi-judicial rezones of property are considered "non -project -related" under
FWRC 19.75.020. As a result, the decisional criteria are as set forth in FWRC
19.75.130(3)(a). As stated in FWRC 19.75.130(3)(a), "Decisional Criteria." the Hearing
Examiner shall use the following criteria for non -project quasi-judicial rezones:
(a) The city may approve an application for a quasi-judicial non -project -related
rezone only if it finds that:
The proposed rezone is in the best interest of the residents of the city;
and
Staff response — The purpose of the proposed amendment to the CZA is to remove
the applicability of the limitations on allowable size and maximum gross leasable
area as to the WinCo Foods property. The proposed amendment would remove the
long -outdated provisions of the 1991 CZA, and replace them with existing, modern,
BC zoning. This modern zoning is more consistent with current best planning
practices and will better reflect the more modern version of Federal Way that exists
today, as opposed to over thirty years ago. As a result, the proposed amendment to
the CZA and removal of the low square footage allowance for the existing grocery
store is in the best interest of the residents of the city for the following reasons:
Improved Access:
A larger store may stock a greater variety of products, including fresher produce, a
wider range of dietary options, and specialty items that were not previously available.
This can lead to improved access to healthy and diverse food choices for the
residents.
Job Creation:
Permitting the expansion of an existing grocery store could lead to the creation of
more jobs, both during the construction phase and after the expansion is complete.
This can have positive economic impacts on the local community by providing
additional employment opportunities.
Potential Tax Revenue:
Permitting the expansion of an existing grocery store could generate increased tax
revenue for the city through construction, increased property taxes, and increased
sales taxes. This additional revenue can be used to fund public services,
infrastructure improvements, and other community enhancing projects.
ii. The proposed rezone is appropriate because either:
A. Conditions in the immediate vicinity of the subject property have
significantly changed since the property was given its present
zoning and that, under those changed conditions, a rezone is
within the public interest; or
B. The rezone will correct a zone classification or zone boundary that
was inappropriate when established;
Staff response — The request will remove the applicability of
restrictive limitations to the buildable capacity of the WinCo Foods
property adopted under the CZA. The maximum square footage
allowances for the defined uses are no longer appropriate as the
retail market has changed in the over 30 years since the
limitations were originally established, and the surrounding
population in the City has increased dramatically.
iii. It is consistent with the comprehensive plan;
Staff response — The request is consistent with the Federal Way
Comprehensive Plan (FWCP) as the existing zoning of Community
Business complies with the FWCP Community Business designation. No
change is being requested to the Community Business zoning
designation. The amendment to the Concomitant Zoning Agreement to
remove the applicability of the Concomitant Zoning Agreement to the
WinCo Foods property is consistent with the following FWCP policies:
LUP40 — Encourage a range of pedestrian -oriented retail, while
continuing to accommodate auto -oriented retail uses, and provide
supportive uses to meet the needs of residents and employees in the
area.
EC7 — Promote an economic climate that is supportive of business
formation, expansion, and retention, and emphasizes the importance of
small businesses in creating jobs.
EDG2 — Help attract, expand, and retain businesses, jobs, and
investments that provide employment and enhance income opportunities
for Federal Way residents.
EDP8 — Promote the redevelopment of existing underdeveloped areas as
a means to sustain the economy and provide jobs.
Allowing the increased floor area is also consistent with the Land Use
Concept in Chapter 2 of the FWCP, which states:
"The land use concept should result in the following:
Accommodation of adopted growth targets for households and jobs and
Puget Sound Regional Council (PSRC) growth projections within the
proposed land use plan area."
Allowing the increased floor area is also consistent with the Land Use
Concept in Chapter 2 of the FWCP, which states
"The land use concept should result in the following:
Accommodation of adopted growth targets for households and jobs and
Puget Sound Regional Council (PSRC) growth projections within the
proposed land use plan area."
iv. It is consistent with all applicable provisions of the chapter, including
those adopted by reference from the comprehensive plan;
Staff Response — The proposed amendment to the CZA is consistent with
the applicable provisions of the chapter and those adopted by reference
of the comprehensive plan. See analysis above.
v. It is consistent with the public health, safety, and welfare.
Staff Response — The proposed amendment to the CZA removing the
applicability of the CZA as to the WinCo Foods property is consistent with
the public health, safety and welfare because as a result the applicant will
no longer be restricted by the size and use limitations within the CZA
allowing for improved access, job creation and potential additional tax
revenue. Any additional project impacts, including traffic, will be
addressed at time of project application.
IX. STATEMENT OF FINDINGS
Based on an analysis of the proposed action, environmental record, and related decisional
criteria, the Department of Community Development finds that:
1. The application is for a quasi-judicial non -project -related rezone to amend an existing
Concomitant Zoning Agreement approved on June 4, 1991 (Ordinance No. 91-99) to
remove the applicability of the Concomitant Zoning Agreement to the WinCo Foods
property (parcel 4159200710).
2. City -initiated quasi-judicial non -project -related rezone requests are a Use Process V
application heard by the Hearing Examiner who makes a recommendation to the
Federal Way City Council.
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3. The Federal Way Comprehensive Plan (FWCP) designation for the subject property
is Community Business. The Community Business designation supports the proposal
as it allows for a broad mix of uses, including general, specialty, and service retail;
commercial; office; commercial/residential mixed -use; and supportive uses.
4. A Notice of Master Land Use Application and Optional Determination of
Nonsignificance was mailed to all property owners within 600 feet of the subject
property on May 27, 2022.
5. An Environmental Determination of Nonsignificance (DNS) was issued for the
proposed action on May 27, 2022. The City received no appeals of the SEPA
determination and the SEPA appeal period has expired.
6. A Notice of Application and notice for the Public Hearing were published in the
Federal Way Mirror and mailed to persons receiving property tax statements for all
property within 300 feet of each boundary of the subject property, on September 15,
2023. The on -site public notice boards and city's official notice boards were posted
prominently on the site on September 28, 2023.
7. The proposal has been reviewed for compliance with the FWRC and FWCP. The
proposal meets decisional criteria for quasi-judicial non -project rezone requests in
FWRC 19.75, as discussed in Section VIII above.
8. Any subsequent development of the property associated with this request may only
be approved if found to be consistent with codes in effect at the time of application,
including development regulations, clearing and grading, tree/vegetation retention,
storm drainage, and transportation.
9. Additional Permitting
Additional permitting, such as engineering review and/or building permits, are
required for site development. It is the applicant's responsibility to identify and obtain
all required City, State, federal, and other agency permits as may be required.
X. RECOMMENDATION
Based upon the application materials, Exhibits A thru P and the information contained in this
Recommendation and Staff Report dated September 29, 2023 the Community Development
Department recommends approval of the request of the non -project -related rezone
amendment to the Concomitant Zoning Agreement to remove the applicability of the
Concomitant Zoning Agreement to the WinCo Foods property.
XI. EXHIBITS
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A. Process V Application
B. Original Concomitant Zoning Agreement
C. First Amendment to Concomitant Zoning Agreement
D. Ordinance No. 91-99 Adopting WinCo Foods Concomitant Zoning Agreement
E. SEPA Environmental Checklist
F. Determination of Nonsignificance (DNS)
G. SEPA Notice of DNS Federal Way Mirror Classified Proof
H. SEPA Notice of DNS Interested Parties and Agencies with Jurisdiction List
I. SEPA Notice of DNS Property Owners within 600 feet Map and Addresses
J. SEPA Notice of DNS Public Notice Boards
K. SEPA Notice of DNS Declaration of Distribution
L. June 6, 2022 Public Comment
M. Notice of Public Hearing Federal Way Mirror Classified Proof
N. Notice of Public Hearing Property Owners within 300 feet Map and Addresses
O. Notice of Public Hearing Public Notice Boards
P. Notice of Public Hearing Declaration of Distribution
Q. WinCo Foods Process III Withdrawal Letter
Transmitted to the Parties Listed Hereafter
Federal Way Hearing Examiner
Nathan Coombs, Petersen-Staggs Architects
WinCo Foods LLC
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