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LUTC MINS 01-09-2006G:\LUTC\LUTC Agendas and Summaries 2006\01-09-06 LUTC Minutes.doc City of Federal Way City Council Land Use/Transportation Committee January 9th, 2006 City Hall 5:30 pm Council Chambers MEETING MINUTES In attendance: Council Member Jack Dovey, Council Member Michael Park, Council Member Eric Faison, Council Member Linda Kochmar, Mayor Dean McColgan; Interim City Manager Derek Matheson; Economic Development Director Patrick Doherty; Public Works Director Cary Roe, Public Works Deputy Director Ken Miller; Street Systems Manager Marwan Salloum; Community Development Director Kathy McClung; Senior Planner Lori Michaelson; Deputy City Attorney Karen Kirkpatrick; and Administrative Assistant Marianne Stiles. Three citizens also attended. 1. CALL TO ORDER Councilman Dovey called the meeting to order at 5:30 pm. 2. APPROVAL OF MINUTES The December 19th, 2005, minutes were approved. 3. PUBLIC COMMENT none 4. BUSINESS ITEMS A. Grant Funding for Transportation Improvement Projects Marwan Salloum provided background information to the committee. Cmte PASSED staff recommendation to fwd Option 1 to the January 17th Council Consent Agenda. MOVED by Councilman Park. SECONDED by Councilman Faison . PASSED Unanimously. B. Pac Hwy S. HOV Lanes Phase III Project (S. 284th to Dash Pt. Rd.) – 85% Status Report Marwan Salloum provided background information to the committee. Chair Dovey recused himself from the vote. Cmte PASSED staff recommendation to fwd Option 1 to the January 17th Council Consent Agenda. MOVED by Councilman Faison. SECONDED by Councilman Park. PASSED 2 to 0 . Mayor Park asked when the 100% level will be reached. Marwan Salloum replied that they should know by April or May, with Puget Sound Regional Council (PSRC) grant results. Councilman McColgan asked if having HOV lanes on SR99 actually encourages car pooling. He asked why the lane couldn’t be opened for general use by all traffic. Marwan Salloum replied that the HOV lanes have a dual purpose. They function as right-hand turn lanes for cross streets and into businesses. Also, the grant funding that was received to widen the road was pre-qualified on including HOV designated lanes. Cary Roe said the HOV lanes encourage 2+ populated vehicles to migrate into the HOV lanes, freeing up the other lanes for other drivers. The HOV lanes also work for transit buses. When the corridor is complete, north to south, it will be more heavily used. Councilman McColgan asked if the City has done an out-put survey to see the end result. Cary Roe said that when it is finished a study will be done and also the affect of the HOV lanes. SR99 is a State Route, and is subject to State regulation. Mayor Park asked if some areas of SR99 were narrowed 10’ – 15’ from the original design due to acquiring reduced Right Of Way (ROW). Cary Roe confirmed that the project will have a reduced impact on private property. Mayor Park also noted that the section of SR99 from 200th – 216th in SeaTac does not include HOV lanes. Cary Roe explained that when that section was renovated the decision was made to put an HOV lane in only one direction. Mr. Roe continued, mentioning that today at a KPEC meeting it was confirmed that the City will likely receive $970,000 Land Use/Transportation Committee Page 2 January 9th, 2006 G:\LUTC\LUTC Agendas and Summaries 2006\01-09-06 LUTC Minutes.doc in funding from PSRC’s County Wide Fund. Additionally, no final action on funding is required today. The City’s outstanding grant for regional mobility program request on this project has been short-listed and has a good chance of receiving $1,214,000 in funding. Councilwoman Kochmar asked if Phase II will include light rail on the west side of SR99. Cary Roe responded that the northern portion is planned to be on SR99. After the Kent-Des Moines interchange the route is undecided. It will either follow I-5 or SR99. Light rail would have a significant impact and cost on the newly renovated SR99. If the light rail lines are elevated they will be even more expensive. Councilwoman Kochmar requested any public information available on this issue. C. Proposed Text Amendments to FWCC Chapter 22, “Zoning”, Pertaining to City Center and Neighborhood Business Zones Lori Michaelson provided a summary of the background information provided at the last LUTC meeting on December 19, 2005. Detailed discussion is included below. Cmte PASSED the 23 recommendations from the Planning Commission MOVED by Councilman Faison. SECONDED by Councilman Park. PASSED Unanimously . Cmte PASSED the gambling prohibition from staff’s recommendation. MOVED by Councilman Faison. SECONDED by Councilman Dovey. PASSED 2 For, 1 Against. Cmte PASSED all three single-story related staff recommendations with a modification of the 20,000 sq ft size maximum to a 10,000 sq ft maximum. MOVED by Councilman Faison. SECONDED by Councilman Park. PASSED Unanimously. All item “C’ recommendations are going to the January 17th Council Consent Agenda. Discussion: Ms. Michaelson stated that the Planning Commission forwarded 23 of the 27 amendments with their recommendation to approve. The remaining four were forwarded without recommendation because a no consensus was reached. The Planning Commission wants a more gradual building-height increase and staff agrees with this recommendation and provided implementing text. The options available to the LUTC members are on page seven; staff recommends Option 1, to adopt the draft ordinance as noted. ‘Non-conformance’ was discussed; “legal” non- conformance is OK within certain thresholds. The main considerations of lending institutions are: 1) Ability to rebuild if damaged, 2) Ability to continue operating the use, 3) Degree/extent to which non-conformance may impact the value of the structure. Councilwoman Kochmar asked: if a business that was over 25,000 sq ft sold, would it have to conform? Ms. Michaelson replied that selling it does not force conformity; the question would be: do they want to expand? Under proposed code they could add additional floors to increase square footage. Chairman Dovey asked about non- conformity on size: If Wal-Mart sold their 50,000 sq ft building to a 70,000 sq ft buyer, would it be ok? Ms. Michaelson replied that yes, because the code deals with “new”. Chairman Dovey asked, if it burns down could they rebuild? Ms. Michaelson said yes, although the city could require minor improvements. Councilman Park asked about the permitted yearly expansion of 1,000 sq ft – could a property expand 1,000 sq ft a year for 12 years and end up with a 12,000 sq ft addition? What is the reasonable square footage for an expansion, for small business owners? Ms. Michaelson replied that only ‘minor’ expansions are allowed for additions such as seating area, or entrance structures, and then with the Director’s approval. Councilwoman Kochmar asked if non-conformity would be a problem for a sale, or a loan for a remodel. Ms. Michaelson said financing decisions depend on a lender’s guidelines and risk- assessment. Councilwoman Kochmar asked what the old theatre would have to do to redevelop, using the shell. Ms. Michaelson replied that, if they used the existing building, they’d be free to remodel it unless it had been “abandoned”. If they wanted to tear it down and start over then they would have to meet code (i.e. the 20,000 sq ft max size). Patrick Doherty noted that the existing rebuild allowance is only 75%; the new code allows 100% rebuild and is better for lending companies, encouraging them to lend. Councilman Park asked if the 20,000 sq ft single-story size limitation is unique. It’s not a concern in [areas such as] Bellevue because their property values are so high. Patrick Doherty said the City works towards maximizing the value & utility of property to build up its value as it also naturally increases. Councilman McColgan asked, based on a site max of 20,000 for single-story construction, what is the definition of a “site”? Ms. Michaelson responded that a site is the “subject property” as defined by code. Question: IF an owner builds one 20,000 sq ft building, can they then split and sell half their property and build another 20,000 sq ft building on the new section? Patrick Doherty said that if Land Use/Transportation Committee Page 3 January 9th, 2006 G:\LUTC\LUTC Agendas and Summaries 2006\01-09-06 LUTC Minutes.doc people tried to out-fox the regulations the permit process would catch up with them. Example: parking spaces for the retail space would need to be retained. Councilman McColgan asked how the 20,000 sq ft size was arrived at? Ms. Michaelson said that Faith Lumsden’s study suggested 15,000 – 25,000 sq ft. Patrick Doherty said they chose 20,000 sq ft as a nice compromise. Mom & Pop stores will fit within that size range; larger sites will have more resources. Councilman Faison said he is going to propose a maximum size of 10,000 sq ft for single story development and wants the full Council to address larger buildings and more parking. He clarified that the Lumsden study recommended 10,000 – 25,000 sq ft. Councilman McColgan asked another question about splitting a site. The response was that if the developer/owner had built it up to capacity the city would not allow the permit to split it. He then asked about an equivalent to University Village; how would such a development take place in Federal Way? Patrick Doherty responded that the U-Village development was almost entirely a re-build (except for the Crate & Barrel). Federal Way’s code will encourage multiple stories. Question asked: so one single-story building OR multiple multi-story buildings are allowed? Patrick Doherty replied that only ONE single-story 20,000 sq ft building would be allowed. Councilman Faison noted that this is about giving more options; there are many other areas in Federal Way that single-story development can go without restriction. Councilman Park stated that property values should go up fast enough that the 20,000 sq ft limit on single story development will not be a problem soon. He asked if there was data on the change in property values in the last five years. Cary Roe responded that case studies show that it does go up. Safer, better roads positively affect property values. Patrick Doherty agreed that property values are rising; things also depend on what’s going on “next door”. Chairman Dovey restated that the goal of tonight’s LUTC is to forward a recommendation to the full Council. Councilman Park suggested the gambling industry should self-regulate. Councilman Faison said that while he is not against gambling in general be wants a consistent focus on the downtown ‘City Center’. There are other areas where gambling establishments could operate within Federal Way. Councilman Faison made a motion to modify the maximum size restriction on single story development to 10,000 sq ft, to better promote multi-story development. Councilman Park agrees with Councilman Faison. Chairman Dovey thinks it will stimulate conversation and agrees to forward it to Council. Councilman McColgan asked that the Council be informed what the impact of the size reduction might be. Councilman Faison wants to prohibit grocery and hardware stores in the city center unless they are part of a mixed use development or accompanied by structured parking, and thus said, should apply to the City Center Core and the portion of the City Center Frame located: N of 320th, S of 312th, W of I-5, E of SR99. Councilman Faison will raise these issues at Council. Another issue is: is the area north of the Core a separate zone? Kathy McClung said staff will research a Frame A and Frame B issue. Councilman Faison said that north of the Core seems different from the west of the Core (Best-Buy, etc). SR99 is the dividing line. 5. FUTURE MEETINGS The next scheduled meeting will be February 6th, 2006. 6. ADJOURN The meeting adjourned at 6:54 p.m.