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ORD 09-624 ORDINANCE NO. 09-624 AN ORDINANCE of the City of Federal Way, Washington, relating to plat and land use application time extensions; amending FWRC 18.05.080; 18.30.260, 18.35.220, 19.15.050, 19.15.100, and 19.15.110; repealing FWRC 18.30.270, 19.65.110, and 19.70.160; and adding new sections to FWRC 18.05.090 and 19.15.075. (Amending Ordinance Nos. 09-594, 07-573, 07-554, 00-375, 97-291, 92-133, and 90-43) WHEREAS, the City recognizes the need to periodically modify Title 18 of the Federal Way Revised Code (FWRC), "Subdivisions," and Title 19 of the FWRC, "Zoning and Development Code," in order to conform to state and federal law, codify administrative practices, clarify and update zoning regulations as deemed necessary, and improve the efficiency of the regulations and the development review process; and WHEREAS, this ordinance, containing amendments to development regulations and the text of Title 18 FWRC and Title 19 FWRC, has complied with Process VI review, Chapter 19.80 FWRC, pursuant to Chapter 19.35 FWRC; and WHEREAS, the severe downturn in the local, regional, and national housing markets, reduced demand for new housing, tightening credit market, difficulty in obtaining the financing necessary to complete a project, and generally poor conditions for development activity have resulted in a situation where developers of new housing, subdivisions, and commercial projects are unable to finalize development proposals in a timely manner; and WHEREAS, the Master Builders of King County and other stakeholders in the building industry believe that bold actions are needed at all levels of government to spur housing and economic recoveries; and Ordinance No. 09-624 Page 1 of 13 WHEREAS, in order to prevent the expiration of development applications or approvals during this economic downturn, extensions of the expiration dates of certain development related applications and approvals are needed; and. WHEREAS, the expiration of a development application or approval can have significant financial impacts to a developer and also adversely affects the financial institutions and other investors which have provided financing in support of a development proposal; and WHEREAS, the national scale of the housing market downturn and tightening credit markets have severely affected many builders and developers in King County and many of these builders and developers are now struggling financially; and WHEREAS, construction related activity is a significant tax generator and provides much needed revenue to local governments to finance needed public services; and WHEREAS, FWRC Title 18 and FWRC Title 19 provide for extensions of development permit applications and approvals including short plats, preliminary plats, binding site plans, and Use Process I, II, III, and IV applications but limits the number and duration of such extensions; and WHEREAS, providing for additional extensions of certain development related applications and approvals may aid the local economy by helping the construction industry to weather the economic downturn while preserving the investments made in the development permitting process; and WHEREAS, maintaining the viability of development applications and approvals will also help to ensure that the development industry is in a position to respond more quickly once favorable economic conditions return; and Ordinance No. 09-624 Page 2 of 13 WHEREAS, the Council finds that it is in the best interest of citizens of Federal Way and the local economy to provide flexibility and modify procedures for extending development related applications and approval, subject to criteria; and WHEREAS, the proposed regulations are categorically exempt from environmental review under the State Environmental Policy Act (SEP A) pursuant to WAC 197-11-800(20); and WHEREAS, the draft staff report was electronically forwarded on July 1, 2009, to stakeholders and interested citizens for review and comment, which resulted in one comment letter submitted by Sam Pace with the Seattle/King County Realtors; and WHEREAS, the Planning Commission properly conducted a duly noticed public hearing on these code amendments on July 22, 2009; and forwarded a recommendation of approval to the City Council; and WHEREAS, the Land Use/Transportation Committee of the Federal Way City Council considered these code amendments on August 3, 2009, and recommended adoption of the text amendments as recommended by the Planning Commission. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Findings. The City Council of the City of Federal Way makes the following findings with respect to the proposed amendments. (a) These code amendments are in the best interest of the residents of the City and will benefit the city as a whole by aiding the local economy and helping the construction industry survive the economic downturn so as to preserve investments made in the development permitting processes. Ordinance No. 09-624 Page 3 of 13 (b) These code amendments comply with Chapter 36.70A RCW, Growth Management. (c) These code amendments are consistent with the intent and purpose of Title 18 FWRC and Title 19 FWRC and will implement and are consistent with the applicable provisions of the Federal Way Comprehensive Plan. (d) These code amendments bear a substantial relationship to, and will protect and not adversely affect, the public health, safety, and welfare. ( e) These code amendments have followed the proper procedure required under the FWRC. Section 2. Conclusions. Pursuant to 19.80 FWRC and 19.35 FWRC, and based upon the recitals and the findings set forth in Section 1, the Federal Way City Council makes the following Conclusions of Law with respect to the decisional criteria necessary for the adoption of the proposed amendments: (a) The proposed FWRC amendments are consistent with, and substantially implement, the following Federal Way Comprehensive Plan goals and policies: LUG2 Develop an efficient and timely development review process based on a public/private partnership. LUP4 Maximize efficiency of the development review process. EDG6 The City will encourage and support existing businesses to remain and/or expand their facilities within Federal Way. EDP 15 The City will continue to implement a streamlined permitting process consistent with state and federal regulations to reduce the upfront costs of locating businesses in the City. EDP 18 The City will periodically monitor local and regional trends to be able to adjust plans, policies, and programs. Ordinance No. 09-624 Page 4 of 13 HP8 Consider the economic impact of all development regulations on the cost of housing. HP9 Maximize efficiency in the City's development review process and ensure that unnecessary time delays and expenses are eliminated. Continue to provide streamlined permitting processes for development that is consistent with the FWCP and FWCC, and that has no adverse impacts. HP 10 Encourage community input, where appropriate, into the development permit process by providing thorough and timely information to the public. HP 11 Continue to assist developers with housing proposals at the earliest possible opportunity, including preapplication meetings to produce projects that can be reviewed quickly and maximize their ability to receive permits. (b) The proposed FWRC amendment bears a substantial relationship to the public health, safety, and welfare because it responds to current national economic conditions that impact local land development and housing-related industries by modifying development regulations to provide for flexibility during the development review process that is not provided in the current code; and clarifies and refines various related codes in order to increase the efficiency of the development review process. (c) The proposed amendment is in the best interest of the public and the residents of the City of Federal Way as it provides for flexibility in development review timelines, which results in continued development within the City, thus aiding the local economy, and ensuring that housing costs remain realistic. Section 3. Chapter 18.05 ofthe Federal Way Revised Code is hereby amended to add a new section 18.05.090 to read as follows: 18.05.090 Lapse of Approval- Time Extension (1) Application. No less than 60 days prior to lapse of approval under FWRC 18.30.260 and FWRC 18.35.220. or prior to lapse of approval of any precedim! time extension l!ranted under this section. the applicant may submit a written request in the form of a letter with supportinl! documentation to the department of community development services reQuestinl! extension of those time limits of up to two years. Ordinance No. 09-624 Page 5 of 13 (2) Criteria. An extension request shall satisfy the followinl! criteria to be approved: (a) Except for the first request for time extension. the applicant has made substantial prOl!ress to complete the plat; (b) There are circumstances beyond the applicant's control which prevent compliance with the time limits of FWRC 18.30.260. 18.35.220. or any previously l!ranted extension; (c) The extension will not create or continue conditions that constitute a code violation or an attractive nuisance. contribute to erosion and sedimentation problems; or impact the public health. safety. and welfare; and (d) Whether either physical conditions in the vicinity of the plat or codes and requirements of the city. applicable al!encies. and utility providers have chanl!ed to a such a del!ree since initial approval that it would be contrary to the public interest to extend the life of the plat. includinl! but not limited to such factors as: i. Whether the adoption of new codes and/or standards would substantially affect project layout and storm drainal!e desil!n; ii. The adequacy of mitil!ation and/or impact fees to address the cost of mitil!ation at the end of the expiration period; iii. Whether the delayed project is an impediment to other development projects in the vicinity as a result of traffic concurrency reserved capacity. The director may condition the extension request to satisfy criteria (c) and (d) as appropriate. In order to demonstrate compliance with the criteria of FWRC 18.05.090(2). the applicant may also provide pertinent documentation of financial backinl!. lease acceptance. or other such commitments secured by the developer and/or al!ent as well as applicable project timelines with milestones and dates of anticipated completion. (3) Fee. The applicant shall include with the letter of request the hourly fee as established by the city. The request will not be accepted unless it is accompanied by the required hourly fee. (4) Review process. Each request for extension will be reviewed and decided upon by the director of community development services who may l!rant up to a two-year extension(s) of approval. (5) Appeals. Any person al!l!rieved by the l!rantinl! or denyinl! of a request for a time extension under this section may appeal that decision. The appellant must file a letter of appeal indicatinf! how this decision affects the appellant's property and presentinl! any relevant material or information supportinl! the appellant's contention. The appeal will be heard and decided upon usinl! the appeal process described in FWRC 18.30.140 et seQ. Any short plat time limit. pursuant to Chapter 36.70B RCW. upon the city's processinl! and decision upon applications under this title may. except as otherwise specifically stated in this title. may be modified by a written al!reement between the applicant and the director of community development services. (6) Retroactive applicabilitv. The provisions of this section shall be retroactive to active and valid short plat. bindinl! site plan. and preliminary plat applications. Ordinance No. 09-624 Page 6 of 13 Section 4. Chapter 19.15 of the Federal Way Revised Code is hereby amended to add a new section 19.15.075 to read as follows: 19.15.075 Final decisions and effect of the decision Upon a decision becominl! final. the applicant may enl!al!e in activity based on the decision. provided applicable permits have been approved. (a) Director. Decisions of the Director of Community Development Services become final subject to the followinl!: (1) If a written notice of appeal is received within the appeal period. the decision shall not become final until the appeal process is complete and the city issues a final decision. (2) If no appeal is submitted within the 14-calendar-day appeal period. the decision shall become final on the first calendar day followinl! the expiration of the appeal period. (b) HearinJ! Examiner. If a decision of the hearinl! examiner is the final decision of the city. it may be reviewed under FWRC 19.70.260. Where the hearinl! examiner's decision is not the final decision of the city. the decision may be appealed under FWRC 19.70.170 and is subject to subsection (2) of this section. (1) AJ!encv decision appeals. The decision by the hearinl! examiner on an al!ency decision appeal is the final decision of the city. except where the proposed project involves: i. An approval. other than a site plan approval. involvinl! a school (FWRC 19.195.100). a community recreation area (FWRC 19.195.120). a l!overnment facility (FWRC 19.195.150). a public utility (FWRC 19.195.140). or a public park (FWRC 19.195.160) located in an SE (suburban estates). RS (sinl!le- family residential). or RM (multifamily) zone; or ii. A site plan approval for a public utility located in a BN (neil!hborhood business). BC (community business). or OP (office park) zone. Hi. SEPA appeals under FWRC Titles 14 and 15. (2) Other cases. In cases not subject to subsection (1) of this section. decisions of the hearinl! examiner become final: i. If no appeal of the hearinl! examiner's decision is submitted within the appeal period. on the first calendar day followinl! the expiration of the 14- calendar-day appeal period; ii. If a written notice of appeal of the hearinl! examiner's decision is received within the appeal period. when the city issues a final decision after the appeal process is complete. Ordinance No. 09-624 Page 7 of 13 Section 5. FWRC l8.05.080 is hereby amended to read as follows: 18.05.080 Application cancellation. ill If an applicant for a boundary line adjustment, lot line elimination, binding site plan, short subdivision plat, preliminary plat, final plat, alteration of plat, or vacation of subdivision fails to provide additional information to the city within 180 days of being notified by mail that such information is requested, the application shall be deemed null and void and the city shall have no duty to process, review, or issue any decision with respect to such an application. (2) Extension request. No less than 30 days prior to the lapse of the 180-day notification by the city under FWRC 18.05.080(1). the applicant for a short plat. bindinl! site plan. or preliminary plat application(s) may submit a written request in the form of a letter with supportinl! evidence to the department reQuestinl! an extension of the 180-day time limits and documentinl! the followinl!: (a) That circumstances beyond the applicant's control prevent compliance with the time limits of FWRC 18.05.080(1); (b) That the applicant is makinl! substantial prol!ress in respondinl! to the request for information so that review of the application can be furthered when that information is submitted; and (c) The number of additional calendar days necessary to provide the requested information. (3) Review process. A request for an extension to the 180-day time limit will be reviewed and decided upon by the director based on responses to criteria in FWRC 18.05.080(2). (4) Retroactive applicabilitv. Administrative extension to the 180-day time limit shall be retroactive to those valid bindinl! site plan. short subdivision. and preliminary plat applications currently under review. Section 6. FWRC 18.30.260 is hereby amended to read as follows: 18.30.260 Effect - Short plat dDuration approval. (1) Short plat approval shall expire eHe five year~ from the date of the director of community development services approval. Said approval shall constitute acceptance of short subdivision layout and design and shall include all conditions, restrictions, and other requirements required by the director of community development services as part of short subdivision approval. City approval of a short subdivision shall not constitute approval for land clearing or grading, vegetation removal, or any other activities which otherwise require permits from the city. (2) Prior to construction of improvements pursuant to short plat approval, engineering drawings for public improvements shall be submitted for review and approval to the department of public works, Lakehaven utility district, and city of Tacoma public utilities department. No permits to begin construction or site work shall be granted until final approval of all utility plans, including storm drainage; the payment of all pertinent fees; and the submittal of performance securities as may be required. Section 7. FWRC 18.35.220 is hereby amended to read as follows: Ordinance No. 09-624 Page 8 of 13 18.35.220 Duration of approval. Preliminary plat approval shall expire five years from the date of city council approval, unless the applicant requests an extension as provided in FWRC 18.05.090. from the hearing examiner. The request for extension must be submitted to the department of community development services at least 60 days prior to the expiration date of the preliminary plat. The department of community de'/elopment services shall schedule and advertise a public hearing in accordance with FV1RC 18.35.100. In considering whether to grant the extension, the hearing examiner shall consider the following in the public hearing: (1) 'Nhether substantial progress has been made toward completion of the entire plat, or the initial phase of the plat, if the preliminary approval included phasing. (2) \Vhether conditions in the vicinity of the subdivision have changed to a sufficient degree since initial approval to warrant reconsideration ofthe preliminary plat. The hearing examiner may grant a one year extension of preliminary plat approval or may allow division of the plat into separate phases, each v/ith an expiration date and no further opportunity for extension. Section 8. FWRC 19.15.050 is hereby amended to read as follows: 19.15.050 Application cancellation. ill If an applicant fails to provide additional information to the city within 180 days of being notified by mail that such information is requested, the application shall be deemed null and void and the city shall have no duty to process, review, or issue any decisions with respect to such an application. (2) Extension request. No less than 30 days prior to the lapse of the 180-day notification by the city under FWRC 19.15.050(1). the applicant may submit a written request in the form of a letter with supportinl! evidence to the department reQuestinl! an extension of the time limits and documents the followinl!: (a) That circumstances beyond the applicant's control prevent compliance with the time limits of FWRC 19.15.0500 ); (b) That the applicant is makinl! substantial prOl!ress in respondinl! to the request for information so that review of the application can be furthered when that information is submitted; and (c) The number of additional calendar days necessary to provide the requested information. (3) Review process. A request for an extension to the 180-day time limit will be reviewed and decided upon by the director based on responses to criteria is FWRC 19.15.050(2). (4) Retroactive applicabilitv. Administrative extension to the 180-day time limit shall be retroactive to those valid Process I. II. III. or IV applications currently under review. Section 9. FWRC 19.15.100 is hereby amended to read as follows: Ordinance No. 09-624 Page 9 of 13 19.15.100 Lapse of approval- Generally. (1) Use Process I. The applicant must substantially complete construction for the development activity. use of land. or other actions approved and complete the applicable conditions listed in the Process I decision within one year after the final decision of the city on the matter. or the decision becomes void. If a land use petition is filed under Chapter 36.70C RCW in Kinl! County superior court. the time limits of this section are automatically extended by the lenl!th of time between the commencement and final termination of that litil!ation. (2) Use Process II. III. and IV. -<,ill applicant must begin construction or submit to the city a complete building permit application for the development activity, use of land or other actions within one year after the final decision appro'/ing the matter, or the decision becomes void. The applicant must substantially complete construction for the development activity, use of land, or other actions approved and complete the applicable conditions listed in the Use Process II. III. and IV decision within five years after the final decision of the city on the matter, or the decision becomes void. If a land use petition is filed under Chapter 36.70C RCW in King County superior court, the time limits of this section are automatically extended by the length of time between the commencement and final termination of that litigation. If the development activity, use of land, or other action approved under this chapter includes phased construction, the time limits of this section may be extended in the decision on the application, to allow for completion of subsequent phases. Section 10. FWRC 19.15.100 is hereby amended to read as follows: 19.15.110 Lapse of approval- Time extension. (1) Application. No less than 30 days pPrior to the lapse of approval under FWRC 19.15.100 for substantially completinl! construction or prior to lapse of approval for any proceedinl! time extension l!ranted under this section. the,---aH applicant may submit a written application request in the form of a letter with supporting documentation to the department requesting a one time extension of those time limits of up to two years. one year. (2) Criteria. The request must demonstrate that the applicant is making substantial progress on the development activity, use of land, or other actions approved under this chapter and that circumstances beyond the applicant's control preyent compliance with the time limits of FV1RC 19.15.100; An extension request shall satisfy the followinf! criteria to be approved: (a) Except for the first request for time extension. the applicant has made substantial prOl!ress to completed the project (b) There are circumstances beyond the applicant's control which prevent compliance with the time limits of FWRC 19.15.100. or any previously l!ranted extension; (c) The extension will not create or continue conditions that constitute a code violation or an attractive nuisance. contribute to erosion and sedimentation problems. or impact the public health. safety and welfare; and (d) Whether either physical conditions in the vicinity of the project or codes and requirements of the city. applicable al!encies. and utility providers have Ordinance No. 09-624 Page 10 of 13 chanl!ed to a such a del!ree since initial approval that it would be contrary to the public interest to extend the life of the proiect. includinl! but not limited to such factors as: i. Whether the adoption of new codes/standards would substantially affect project layout and storm drainal!e desil!n; ii. The adequacy of mitil!ation and/or impact fees to address the cost of mitil!ation at the end of the expiration period; iii. Whether the delayed project is an impediment to other development projects in the vicinity as a result of traffic concurrency reserved capacity. The director may condition the extension request to satisfy criteria (c) and (d) as appropriate. In order to demonstrate compliance with the criteria of FWRC 19.15.110(2). the applicant may also provide pertinent documentation of financial backinl!. lease acceptance. or other such commitments secured by the developer and/or al!ent as well as applicable project timelines with milestones and dates of anticipated completion. (3) Fee. The applicant shall include, with the letter of request, the hourly fee as established by the city. The application request will not be accepted unless it is accompanied by the required hourly fee. (4) Review process and timeline. An Each request application for a time extension will be administratively reviewed and decided upon by the director who may l!rant up to a one-year extension of time to substantially complete construction and complete applicable conditions of approval for approved Use Process I application(s) after final decision and may l!rant up to a two-year extension of time to substantially complete construction and complete applicable conditions of approval for approved Use Process II. III. or IV application(s). (5) Appeals. Any person who is aggrieved by the granting or denying of a request for a time extension under this section may appeal that decision as provided in FWRC 19.65.120. The appellant must file a letter of appeal indicating how the decision on the time extension affects the appellant's property and presenting any relevant material or information supporting the appellant's contention. The appeal will be heard and decided upon using process IV. Pursuant to Chapter 36.70B RCW, any time limit upon the city's processing and decision upon applications under this title may, except as otherwise specifically stated in this title, be modified by a written agreement between the applicant and the director. (6) Retroactive applicabilitv. Extensions approved under this section shall be retroactive only for those active and valid Use Process I. II. III. or IV applications. Section ll. FWRC 18.30.270 is hereby repealed in its entirety. Section l2. FWRC 16.65.110 is hereby repealed in its entirety. Ordinance No. 09-624 Page 11 of 13 Section 13. FWRC 19.70.160 is hereby repealed in its entirety. Section l4. Severability. The provisions of this ordinance are declared separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of the ordinance, or the validity of its application to any other persons or circumstances. Section 15. Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 16. Ratification. Any act consistent with the authority and prior to the effective date ofthis ordinance is hereby ratified and affirmed. Section l7. Effective Date. This ordinance shall be effective five (5) days after passage and publication as provided by law. PASSED by the City Council of the City of Federal Way this 15 day of September, 2009. CITY OF FEDERAL WAY ATTEST: ~, ~LLP~ Y L RK, LMC LY,CMC Ordinance No. 09-624 Page 12 of 13 APPROVED AS TO FORM: ? u;'t;a/4~ CITY ATTORNEY, PATRICIA A. RICHARDSON FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: 9-19-2009 EFFECTIVE DATE: 9-24-2009 ORDINANCE NO.: 09-624 8-25-2009 9-15-2009 Ordinance No. 09-624 Page 13 of 13