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2019-04-02 Council MIN - Special CITY OF Federal Way CITY COUNCIL SPECIAL MEETING MINUTES Council Chambers - City Hall April 2, 2019 — 5:00 p.m. 1. CALL MEETING TO ORDER Mayor Ferrell called the meeting to order at 5:02 p.m. City officials in attendance: Mayor Jim Ferrell, Deputy Mayor Susan Honda, Councilmember Lydia Assefa-Dawson,Councilmember Jesse Johnson,Councilmember Hoang Tran,Councilmember Mark Koppang, Councilmember Martin Moore and Councilmember Dini Duclos. City staff in attendance: City Attorney Ryan Call and Deputy City Clerk Jennifer Marshall. 2. PLEDGE OF ALLEGIANCE Mayor Ferrell led the flag salute. 3. STUDY SESSION — FEDERAL WAY TRANSIT CENTER LIGHT RAIL STATION Staff Liaison to Sound Transit Tony Doucette provided an introduction of the individuals from Sound Transit. He indicated this presentation is a result of questions regarding surplus property at a recent Land Use/Transportation Committee Meeting. Sound Transit Senior Land Use Planner Tim Bates defined surplus property as it relates to the Federal Way Light Rail Extension (FWLE). He indicated that Sound Transit acquires property to build and operate the transit system, including property used for staging of construction materials and equipment. This property will not be needed after the transit project is complete and may be designated as surplus property by the Sound Transit Board of Directors. Sound Transit's goal is to facilitate Transit-Oriented Development (TOD) on these properties integrating transit and land use which promotes ridership and supports the City's development visions. This process will require engaging private, public, and non-profit partners. Sound Transit Senior Transit-Oriented Development Project Manager Thatcher Imboden explained the requirements placed on the surplus properties citing RCW 81.112.350; commonly referred to as the 80/80/80 Policy. This policy dictates 80 percent of suitable surplus property be offered to affordable housing developers to make at least 80 percent of the units on site affordable to individuals earning 80 percent or less of the area median income. Federal Way City Council Special Minutes Page 1 of 3 April 2, 2019 Mr. Imboden outlined the typical TOD Process including the following phases which include City partnership and engagement: • Access: big picture goals are discussed,the station area planned, and environmental assessments completed. • Define: TOD is analyzed, key goals established, and requirements/pricing for the Request for Proposal (RFP) determined along with implementation strategy • negotiated, Develop: developer is selected, agreements permits secured, and TOD construction implemented reflecting agency, city, and community goals. He noted Sound Transit has not determined whichp ro erties will be surplus. He specified it is p p p generally a two-year implementation process with next steps including continued engagement with stakeholders. • Council Questions/Discussion Council thanked Mr. Bates and Mr. Imboden for their presentation and asked questions regarding the displacement of businesses and the assistance they will receive to remain in the city, clarification of the 80/80/80 Policy, and how vacant properties will be secured. Community Outreach Specialist Zachary Eskenazi explained Sound Transit provides assistance for all displaced businesses; including facilitating requests to relocate in the area when possible. Mr. Thatcher clarified that the 80/80/80 Policy does not apply to all property; there will be research conducted to determine what is best for the specific properties. Sound Transit looks towards the development of surplus properties much earlier in their process to minimize the lapse in time between station completion and development. Mr. Eskenazi explained each vacant property is secured and patrolled by Sound Transit. If vandalism continues, the level of security is increased and fencing of the property may be done. Council expressed concern this portion of the downtown will look blighted and requested remediation in the form of murals or similar. Council continued discussion expressing their desire to begin engagement on this process immediately and the need for open communication and sharing of information with the public. They additionally requested Sound Transit work with remaining businesses to ensure the impact of the construction is limited or mitigated. 4. CITIZEN COMMENT Dana Hollaway expressed her desire for the City to be involved in this process and work towards a controlled and managed growth plan. She would like to see market rate/mixed-income housing on the surplus property as the tax revenue is needed. Diana Noble-Gulliford shared questions she has regarding the TOD process and asked for a definition of"qualified entities". She is concerned that the Capitol Hill TOD property is on a 99-year lease which means it is not generating any tax revenue. 5. EXECUTIVE SESSION At 6:04 p.m. Mayor Ferrell announced the Council would recess into Executive Session for the Federal Way City Council Special Minutes Page 2 of 3 April 2, 2019 purpose of discussing potential litigation pursuant to RCW 42.30.110(1)(i) for approximately 25 minutes. • Potential Litigation Pursuant to RCW 42.30.110(1)(i) 6. ADJOURNMENT There being nothing further on the agenda; the special meeting was adjourned at 6:20 p.m. Attest: LIVAAJL,,�rrllyyyA en .fer Mar hall ep y ity erk Approved by Council: kl Federal Way City Council Special Minutes Page 3 of 3 April 2, 2019