ORD 07-555
ORDINANCE NO. 07 -5$5
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL
WAY, WASHINGTON, ESTABLISHING A REVENUE DEVELOPMENT
BOUND ON THE SOUTH BY 324TH ST.; BOUND ON THE WEST BY 11TH PL.
S., BY THE WESTERN PROPERTY LINE OF THE FEDERAL WAY PUBLIC
SCHOOLS BUS AND MAINTENANCE FACILITY ON THE NORTH SIDE OF
320TH ST., AND BY PACIFIC HIGHWAYS.; BOUND ONTHE NORTH BY THE
NORTHERN BORDER OF THE AFORMENTIONED FEDERAL WAY PUBLIC
SCHOOLS BUS AND MAINTENANCE FACITILITY AND A LINE EXTENDED
FROM THERE EASTWARD TO PACIFIC HIGHWAY S., BY 312TH ST.,
EXCEPT RUNNING ALONG THE SOUTHERN BOUNDARIES OF THE
MULITFAMILY DEVELOPMENTS LOCATED ON THE SOUTH SIDE OF
3UTH ST. BETWEEN PACIFIC HIGHWAY S. AND 23RD AVE. S., BY S.317TH
ST., EXCEPT INCLUDING THE TRUMAN HIGH SCHOOL SITE ON THE
NORTH SIDE OF 317TH ST.; AND BOUND ON THE EAST BY 23RD AVE. S.
SOUTH OF 320TH ST. POR THE LOCAL INFRASTRUCTURE FINANCING
TOOL PROGRAM.
WHEREAS, in 2006 the State Legislature authorized a Local Infrastructure Financing Tool
("LIFT") Program outlined in RCW 39.102 et seq; and
WHEREAS, the State Legislature expressly found that public infrastructure promotes
community and economic development, stimulates business activity and helps create jobs; and
WHEREAS, the State Legislature developed a process whereby a city may establish a
Revenue Development Area ("RDA") and apply to the Community Economic Revitalization Board
("BOARD") for funding through a credit against the State's portion of sales and use tax and an
allocation of property tax revenue with matching city funds; and
WHEREAS, pursuant to State Law no more than one RDA may be created within a county:
and
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WHEREAS, the CityqfFederal Way is proposing to establish a RDA in specific areas of the
Federal Way City Center, in order to finance public infrastructure improvements through incremental
local tax revenues generated within the RDA, and matching State LIFT revenues generated within
the RD A;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
W AS HlNGTON, DOES ORDAIN AS FOLLOWS:
Section l. Proposed Public Improvements for LIFT Financing in the Revenue Development
Area (RDA).
The City anticipates using the LIFT funds for the following types of public improvements:
A. New "grid roads," and portions thereof, as well as expansion and/or improvement of
existing rights-of-way, intended to provide more circulation routes and disperse
traffic more evenly within the City Center;
B. Public open spaces, such as plazas, pocket parks, pedestrian and bicycle trails, etc.;
and
C. Public parking facilities
)
All such improvements are embodied in the TranspOl;tation, Capital Facilities, Parks and
Recreation, Land Use and City Center elements of the Federal Way Comprehensive Plan.
Section 2. The Boundary of the RDA.
The boundary of the RDA is generally:
o Bound on the South by. S. 324th St.;
o Bound on the West by 11 th PL S.; by the western property line of the Federal Way
Public Schools bus and maintenance facility on the north side ofS. 320lh St.; and by
Pacific Highway S.;
o Bound on the North by the northern border of the aforementioned Federal Way
Public Schools bus and maintenance facility and a line extended from there eastward
to Pacific Highway S.; by S. 31ih S1., except running along the southern boundaries
of the multifamily developments located on the south side of S. 312lh S1. between
Pacific Highway S. and 23rd Ave. S.; by S. 317lh S1., except including the Truman
High School site on the north side of S. 31 ih S1.; and
o Bound on the East by 23rd Ave. S. north of S. 3l7th St.; by 28th Ave. S.; by the
Interstate 5 right-of-way; and by 23rd Ave. S. south of S. 320lh St.
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The more complete description of the boundary is referenced and incorporated herein as
Attachment "A". In addition, the City has determined that as of January 1,2007:
l. Taxable real property within the RDA boundaries does not exceed one billion dollars
in assessed value.
2. The average assessed value per square foot of taxable land within the RDA does not
exceed seventy dollars ($70).
3. The RDA does not contain more than 25% of the total assessed value of taxable real
property within the Cit-y.
4. There is no other RDA currently in King County.
5. The RDA consists of ccmtiguous tracts, lots, pieces, or parcels ofland without islands
of properties been excluded nor has the City excluded parcels where economic
growth is unlikely to occur.
6. The RDA boundary would not be changed for the period that local infrastructure
financing is used.
Section 3. The Estimated Cost of the Proposed Public Improvements and the Portion of Costs
Identified to Be Financed by the LIFT.
The following estimated costs of the public improvements proposed include:
{ ,
· Five Million Dollars ($5,000,000) for open space, public arts, and enhanced
pedestrian sidewalks/trails between Steel Lake and Celebration Park
· Ten Million Dollars ($10,000,000) in public parking spaces in privately developed
parking structures (i.e. approximately one hundred (100) stalls in each of the four
super-blocks in the Cuty Center for a total of 400 stalls).
· Twenty Million Dollars ($20,000,000) in grid-road improvements, cross-walks,
bike-lanes, a.nd traffic control improvements.
The City anticipates half ofthe above costs will be financed by the LIFT program funding, if
awarded by the state, with the remaining half to be funded primarily with incremental local
tax revenues generated in the RDA, together with grants, and other public/private funding
so urces.
Section 4. The Estimated Time For Using the City's Excise Tax and Property Tax Allocation
Revenues To Be Used for the LIFT Financing.
The City will dedicate the portion of excise tax and property tax allocation revenues needed,
together with other resources for a period not to exceed twenty-five years to match the
amount of LIFT funding awarded from the state to finance the above proposed
improvements.
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Section 5. Commencement Date For Using the City's Excise Tax and Property Tax Allocation
Revenues for the LIFT Financing.
The City intends to begin using the City's excise "tax and property tax allocation revenues for
the LIFT financing by the later of:
1. July l, 2008; or
2. July 1 of the year fellowing RDA approvatby the Board.
Section 6. Findings.
The City Council finds the following in accordance with RCW 39.102.070:
1. No LIFT funds will be used to finance, design, acquire, construct, equip, operate,
maintain, remodel, repair, or reequip public facilities funded with taxes collected
under RCW 82.l4.048.
2. No funds will be used for public improvements other than projects identified
within the capital facilities, utilities, housing, or transportation element of the
City's comprehensive plan, except for qualified historical preservation activities.
3. The proposed public improvements to be financed in whole or in part using LIFT
financing are expected to encourage private development and increase the fair
market value of real property within the RDA.
4. The City has issued a request for proposals for a mixed-used development project
on the former AMC Theater site within the RDA boundaries and expects to select
a responder in July 2007 to enter into negotiations, resulting in a development
agreement in the fall of2007.
5. The City has also received a letter of intent from the owner ofthe Pal-Do World
Plaza for a redevelopment project that would convert the existing strip-mall into
a major mixed-use project.
6. The City anticipates that private development in the RDA, as a result of the
public improvements, will be consistent with the City's Comprehensive Plan and
development regulations.
7. LIFT financing:
A. Is not expected to be used for the purpose of relocating a business from
outside the RDA, but within the state, into the RDA; and
B. Will improve the viability of existing business entities within the RDA.
8. The public improvements proposed to be financed in whole or in part, by LIFT
financing are reasonably likely to:
A. Increase private residential and commercial investment within the RDA.
B. Increase employment within the RDA.
C. Improve the viability of existing communities that are based on mixed-
use development within the RDA.
-'
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D. Generate, over the period of time the local option sales tax will be
imposed, state excise tax allocation revenues and state property tax
allocation revenues derived from within the RDA equal to or greater than
the respective state contributions.
9. The RD A where the LIFT financing would be used are those areas the City deems
in need of economic development or redevelopment.
Section 7. Process to Establish the RDA.
Prior to the presentation and enactment ofthis ordinance establishing an RDA, the City took
the following steps in accordance with RCW 39.102.080:
l. The City has determined it would not be necessary to use any other local taxing
district's excise tax or property tax allocation revenues in the LIFT financing, and
therefore, no cosponsoring agencies or written agreements are necessary.
2. The City has inventoried and determined there are no low-income housing units
in the proposed area; therefore, no impact would result from development within
the RDA.
3. The City has inventoried and estimated impacts of the RDA on small businesses
and developed a m.itigation plan that is incorporated and referenced herein as
Attachment "B".
4. The City has produced a reasonable estimate of projected net job growth and net
housing growth caused by creation of the RDA over the next 25 years.
Net job growth is projected to total 6,086 jobs, allocated to the following general
categories:
Retail:
Office:
Hotel:
Ci vic/Cultural/Educational:
3,347 jobs
l,765 jobs
730 jobs
243 jobs
Net housing growth is projected to total 1 ,500 units.
5. We anticipate that the spectrum of housing availability within the City Center
will be substantially broadened to include ownership at all levels (from entry-
level to middle-income to upper-income) and rental from lower-income to
middle- and upper-income.
Section 8. Notice and Public Hearing.
Pursuant to RCW 39.l02.l00 the City:
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1. Published notice ofthe public hearing in the official newspaper, The Federal Way
Mirror, ten days before June 5, 2007, on May 26, 2007, and posted notice in the
following eight locations on May 25,2007:
a. Gateway Center: Gateway Center Boulevard
b. Hillside Plaza
c. The Commons at Federal Way
d. Pal-Do World Plaza
e. SeaTac Village
f. Celebration Center
g. Pavilions Center Phase II
h. Wal-Mart/Top Food Center
2. On May 4, 2007 the City mailed the notice of the public hearing and intent to
establish an RDA to all identified property owners, business operators located in
the RDA, and identifiable community-based organizations with involvement
within the RDA via United States mail.
A copy of the notice is referenced and incorporated herein as Attachment "C".
Section 9. Severability. The provisions of this ordinance are declared separate and severable.
The invalidity of any clause, sentence, paragraph, subdivision, section, or portion ofthis ordinance or
the invalidity ofthe application thereofto any person or circumstance, shall not affect the validity of
)
the remainder of the ordinance, or the validity ofits application to other persons or circumstances.
Section lO. Effective Date. This 0rdinance shall take effect and be in force five (5) days from
the time of its final passage, as provided by law.
Section ll. Ratification. Any act consistent with the authority and prior to the effective date of
this ordinance is hereby ratified and affirmed.
. PASSED by the City Council of the City of Federal Way this !1fl,,- day of
~./ ,2007.
CITY OF FEDERAL WAY
~~u
MAYOR, MICH
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ATTEST:
~..
CITYi LERK, LAURA H HAW AY, CMC
APPROVED AS TO FORM:
vf u/C a'~A*,~
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERIC fi! 8.S(o'
PASSED BY THE CITY COUNCIL: (pIt CI(o;
PUBLISHED: tP(d.-3(O'l
EFFECTIVE DATE: ep(agfo7
ORDlNANCE NO()l ;$5"5
K:\ord\2007\RDA
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ATTACHMENT A
Beginning at the intersection of II th PI. S. and S. 324th S1., north along and including 11 th Pl. S. to S.
320th S1., west along and including S. 320th S1. to the western boundary of the Federal Way Public
Schools bus and maintenance facility at 1066 S. 320th St. being parcel number 082l 049188, north
along the western boundary of said property to the northern boundary of said property, east along the
northern boundary 0 f said property and continuing east along the northern boundary 0 f 1400 S. 320th
S1. being parcel number 0821.049121 to the intersection with the western boundary of Pavilion
Center II located at 31601 Pacific Higllway South being parcel number 0821 049196, continuing east
on the same line to the northwest corner of parcel 0821049078, continuing along the northern
boundary of said parcel to tb.e northwest corner of 31717 Pacific Highway South being parcel
0821049229 continuing along the northern boundary of said parcel to Pacific Highway South, north
along and including Pacific Highway South to S. 3 1 2nd St., east along and including S. 3l2nd St. to
the Brightwater Apartments, located at 31224 20th Ave. S. being parcel number 0921049018, south
along the western boundary of said property to the south end of said property, east along the southern
boundary of said property to 2201 S. 3l2th S1. being parcel number 0921049284, continuing east
along the southern boundary ofsaid property to 23rd Ave. S., south along and including 23rd Ave. S.
to S. 317th, east along and including S. 31 th S., to Truman High School located at 31455 28th Ave.
S. being parcel number 092l 049054, north along said property to its northern edge, east along said
property to 28th Ave. S., south along and including 28th Ave. S. to S. 31 th S., east to the western
edge of the Interstate 5 right-of-way, south along the western edge ofthe Interstate 5 right-of-way to
S. 320th S1., west along and including S. 320th St. to 23rd Ave. S., south along and including 23rd Ave.
S. to S. 324th St, west along and including S. 324th St., to 11 th Pl. S.
}
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ATTACHMENT.B
EsnMA TED IMP ACT OF THE RDA ON
SMALL BUS~NESS AND Low-INCOME HOUSING AND
PROPOSED MITlGA nON PLAN
1. IMPACT AND MITIGATION ON LOW-INCOME HOUSING
The RDA does not currently contain any housing units; therefore, there is no anticipated negative
impact on low-income housing that would result from the proposed public improvements and the
anticipated private redevelopment.
II. INVENTORY OF BUSINESSES
The RDA encompasses most
of the City Center Core and
Frame area, with 326 business
enterprises and around 4,500
total jobs.
Given that some of the
existing structures in the area
are dated, of lower-grade,
and/or comprise low-density
development, they are prime
candidates for redevelopment.
The current commercial
market conditions and the
creation ofRDA would likely
speed up the process of
redevelopment.
Such redevelopment project
would likely require relocation
of existing businesses. Until
the area is fully redeveloped,
there would be substantial
capacity and opport\lnity for
such businesses to find
comparable locations within
or in close proximity to the
RDA.
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I City Center Existing Business Inventory
I
I Business Type No of Biz FTEE I PTEE
27 Manuf.- PrintingfPub 2 27 4
42 Transportation- Truc 1 1 2
48 Communications- Tele 4 15 I 1
5'1 Wholesale- Groceries 2 4i 4
53 Gen. Merchandise- Va 10 4431 104
54 Food- Misc. Food Sto 22 194 232
55 Auto- Gasoline Servi 5 32 18
56 Apparel- Shoe Store 25 70 85
57 F urniturelF umishing 3 17 19
58 Restaurants- Food Co 74 773 929
59 Retail Misc.- Hobby, 81 322 312
60 Banks- Depository In 7 67 8
61 Non-Oepository- Mort 7 35 -
62 SecurityfCommodities 3 39 1
64 Insurance- Insurance 3 22 -
65 Real Estate- Agentsf 3 38 6
67 In\o€stment- Advice & 1 2 -
70 Hotels & Lodging- Ho 4 64 32
72 Personal Srvc.- Barb - 91 47
32
73 Business Srvc.- Misc 7 36 -
76 Repair Services- Mis 1 1 1
78 Motion Picture- Thea 1 5 15
79 Recreational Service 5 40 118
--
80 Health Srvc.- Office 16 38 19
82 Educational Services 2 101 13
83 Social Srvc.- Child 2 5 6
84 MuseumsfGalleriesfGa 1 6 -
86 Membership Organizat 1 9 1
87 Accountingf Auditingf 2 41 10
Grand total I 327 2,501 I 1,987
IIT. IMPACT AND MITIGATION ON SMALL BUSINESS
"Small business," as defined by. RCW 19.85.030, is any business entity, including a sole
proprietorship, corporation, partnership, or other legal entity, that is owned and operated
independently from all other businesses, and that has fifty or fewer employees.
There are l61 businesses
employing a total 720
employees, including 392 on
part-time basis, within the
RDA boundaries may fall
under this definition. 67% of
these businesses are retail in
nature, including restaurants
and fast food services,
employing 74% of the
employees, and 29% in the
personal services industry,
employing 24% of the
employees.
City Center Small Business Inventory
I
Business Type i No of Biz FTEE PTEE
42 Transportation- Truc ! 1 1 2
48 Communications- Tele 1 3 -
51 ,Wholesale- Groceries 2 4 4
53 Gen. Merchandise~ Va i 2 4 8
54 Food- Misc. Food Sto ! 11 14 41
55 Auto- Gasoline SeN 2 8 7
56 Apparel- Shoe Store i 9 13 8
1
58 Restaurants- Food Co 43 120 202
59 Retail Misc.- Hobby, 40 52 51
6~ Insurance- Insurance 2 2 -
65, Real Estate- Agents/ I 1 - 1
72 Personal SI'\C.- Barb 25 35 37
73 Business SI'\C.- Misc 4 26 -
78 Motion Picture- Thea I 1 5 15
79 Recreational SeNce i 1 1 -
i
80 Health SI'\C.- Office 13 32 9
82 Educational SeNces 1 1 1
83 Social SI'\C.- Child 1 3 6
8'7 Accounting/Auditing/ I 1 4 -
i
Grand total 161 328 392
)
It is very likely that many of
these smaller business
enterprises would be
vulnerable to potential
displacement from
redevelopment of the area
over time. For purposes of
calculating potential displacement impacts and net job growth, we have estimated that
approximately 50% of the existing small businesses may be displaced, resulting in a total of360
jobs potentially being displaced. Most of the displaced small businesses would likely be able to
find comparable locations and rents both within and outside the RDA boundaries to relocate.
Some may choose to relocate to one of the new redevelopment projects.
IV. PROPOSED MITIGATION PLAN FOR SMALL BUSINESS:
The primary purpose of the mitigation plan is to layout practical ways to assist businesses in
findin& viable options for relocation, to minimize any business disruptions, and to retain as
many businesses in Federal Way as possible.
1. Provide Sufficient Notice of Relocation
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Notices will be provided so that all displaced businesses will have a reasonable period of
time to find a comparable replacement location. To this end, the City would:
1. Mail notices to affected businesses from any proposed new public improvements and
private development projects at least 120 days prior to the start of construction;
11. Post notices conspicuously in the affected area at least 120 days prior to start of
construction for any proposed new public improvements and private development
projects.
2. Provide Relocation Assistance
1. City will provide lists of available commercial properties being offered for sale and/or
lease, including site map. and pertinent information, which may be considered as
alternative sites.
11. City will make expedited permit review available for required tenant improvements for
affected business enterprises that choose to relocate within the City.
iii. City will encourage new property owner/developers to offer right of first refusal on
similar commercial space in new projects.
IV. City will, through its partnership with the Highline Community College Small Business
Development Center, pr<Ilvide assistance to eligible small businesses in seeking
relocation loans at the Lowest available cost, as well as providing business assistance and
referral services where applicable.
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ATTACHMENT C
~
CITY OF }"i' ". ,
Federra~ Way
NOTICE OF PUBLIC HEARING
ON
ESTABLISHMENT OF REVENUE DEVELOPMENT AREA (RDA)
PURSUANT TO
LOCAL INFRASTRUCT-URE FINANCING TOOL ("LIFT") PROGRAM
(RCW 39.102)
Pursuant to the State UFT Program, outlined in RCW 39.102, the City of Federal Way is proposing to
establish a Revenue Development Area (RDA) in the Federal Way City Center. The purpose of the RDA is to
finance public infrastructure improvements through incremental, local tax revenues generated within the RDA,
matched with State LIFT revenues generated within the RDA. Such new public infrastructure improvements
are intended to complement and stimulate new private redevelopment projects within the RDA that will
provide housing, jobs and goods and services, and increase the fair market value of real property within the
RDA.
)
.
Public infrastructure improvements contemplated include:
o New "grid roads," and portions thereof, as well as expansion and/or improvement of existing
rights-of-way, intended to provide more circulation routes and disperse traffic more evenly
within the City Center;
o Public open spaces, such as plazas, pocket parks, pedestrian and bicycle trails, etc.; and
o Public parking facilities
All such improvements are intended to implement goals and policies embodied in the Transportation,
Capital Facilities, Parks and Recreation, Land Use and City Center elements of the Federal Way
Comprehensive Plan.
.
The total proposed public infrastructure improvements to be financed through the local infrastructure
financing program will be limited to $35 million.
The City is pursuing the maximum amount of the State LIFT funding at $1 million per year for 25
years.
The State LIFT funding requires an equal amount in local matching funds. Therefore, the City is
proposing to use incremental sales, property, and other tax revenues generated from new private
development within the RDA, together with approximately $6 million from the City Center
.
.
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.
Redevelopment Fund established by the City, as the local matching fund for the proposed
infrastructure improvements. .....
The estimated period during which the local infrastructure financing is contemplated to be used is 25
years.
Infrastructure construction and associated redevelopment within the RDA may displace ex.isting
businesses over the long-term. Many businesses may be able to find new locations within
redevelopment projects, while others may be displaced from the RDA. No low-income housing will
be directly affected as the RDA includes no existing housing.
.
.
The proposed RDA boundaries are described as follows:
o Bound on the South by S 324tll St;
o Bound on the West by 11th PI S; by the western property line of the Federal Way Public
Schools bus and rnainten;mce facility on the north side ofS 320tll St; and by Pacific Highway
S;
o Bound on the North the northern border of the aforementioned Federal Way Public Schools
bus and maintenance facility and a line extended from there eastward to Pacific Highway S;
by S 3 12th St, exce'pt running along the southern boundaries of the multifamily developments
located on the south side ofS 312tl1 St between Pacific Highway Sand 23rd Ave S; by S 317th
St, except including the Truman High School site on the north side of S 31 ill St.; and
o Bound on the East by 23rd Av S north ofS 317th St; by2gtl. Ave S; by the Interstate 5 right-of-
way; and by 23rd Av S sO,uth ofS 320th St
You may also refer to the attached RDA map
The public hearing on this matter will be held during a regularly scheduled City Council meeting
at the following date, time and place:
7:00 p.m., Tuesday, June 5, 2007
City Council Chambers
City Hall
33325 gth Ave South
For a copy of the draft Ordinance and information on how the limitations, conditions and findings,
required by RCW 39.102, are met, you may access the City Council's agenda packet via the City's
website at cityoffederalway.com or in person at the City Clerk's Office in City Hall, at the above
address, as of Friday, June 1,2007.
For more information, you may also contact Economic Development Director Patrick Doherty at
patrickd@citvoffederalwav.com or 253-835-2612.
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,PAGE 14
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