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2021-04-21 Planning Commission PacketCommissioners City Staff Lawson Bronson, Chair Tim O’Neil, Vice-Chair Keith Niven, Planning Nanager Wayne Carlson Hope Elder E. Tina Piety, Administrative Assistant Diana Noble-Gulliford Tom Medhurst 253-835-2601 Dale Couture Eric Olsen, Alternate www.cityoffederalway.com Jae So, Alternate Anna Patrick, Alternate K:\PLN Planning Commission\2021\Agenda\Agenda 04-21-21.docx City of Federal Way PLANNING COMMISSION April 21, 2021, 6:30 p.m. City Hall, Zoom Meeting AGENDA 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF MINUTES a. Planning Commission Meeting of April 7, 2021 4. PUBLIC COMMENT 5. COMMISSION BUSINESS a. Discussion – Housing Action Plan: Updates to the Strategies and Public Open House Findings 6. STAFF BUSINESS a. Manager’s Report 7. NEXT MEETING a. May 5, 2021, 6:30 p.m. 8. ADJOURNMENT Notice: Pursuant to Governor Inslee’s Proclamation 20-28, all in-person meetings are prohibited until further notice. The Mayor and City Council encourage you use one of the following ways to participate in the meeting: • Join here https://cityoffederalway.zoom.us/j/92039948345?pwd=b3RBOGdQeUw5ZEFQSi8rblhlZ0hRQT09 • Call in and listen to the live meeting (888) 788-0099 or 253-215-8782 • Public Comment may be submitted via email here, or sign up to provide live comments here • Zoom meeting code 920 3994 8345 and passcode 431768 Planning Commission Minutes Page 1 April 7, 2021 CITY OF FEDERAL WAY PLANNING COMMISSION April 7, 2021 City Hall 6:30 p.m. Zoom MEETING MINUTES Commissioners present: Lawson Bronson, Tim O’Neil, Wayne Carlson, Diana Noble-Gulliford, Dale Couture, Hope Elder, Jae So, and Anna Patrick. Commissioners absent: Tom Medhurst and Eric Olsen (both excused). City Staff present: CD Director Brian Davis, Planning Manager Keith Niven, Associate Planner Chaney Skadsen, Senior Planner James Rogers, City Attorney Eric Rhoades, and Administrative Assistant II Tina Piety. CALL TO ORDER Chair Bronson called the meeting to order at 6:30 P.M. MINUTES The March 17, 2021, minutes were approved as presented. PUBLIC COMMENT None COMMISSION BUSINESS Discussion, Housing Action Plan (HAP) Strategies Briefing – Senior Planner Skadsen delivered the staff presentation. This is for information only. The goal of the city’s HAP document is to layout a comprehensive housing policy direction from which regulatory changes can be implemented. Federal Way’s HAP includes: • Housing Needs Assessment • Stakeholder Engagement & Public Participation • Housing Policy, Code, and Permitting Review • Housing Objectives and Strategies • Implementation Schedule The HAP objectives are to: 1. Promote new housing that expands housing choices and is inclusive to community needs. 2. Encourage homeownership opportunities and support equitable housing outcomes. 3. Plan for continued growth and ensure that the built environment promotes community development and increases the quality of life for Federal Way’s existing and future residents. 4. Preserve existing affordable housing stock to prevent displacement pressure. Planning Commission Minutes Page 2 April 7, 2021 The Housing Needs Assessment determined that new housing production is not keeping pace with demand, which increases competition and drives up housing prices. The city needs to add 6,800 new units before 2040. The assessment also determined that 40 percent of all households are cost-burdened (over 13,000) with the greatest needs are households with an income below 50 percent of the Area Median Income (AMI). In addition, it was determined that there are disproportionate impacts in the black, indigenous, and people of color (BIPOC) communities. Staff developed nine strategies with implementing actions that realize the identified objectives. 1) Promote a dense, walkable, mixed-use City Center. 2) Update development regulations and design standards to be responsive to changing conditions in mixed-use and multifamily zones. 3) Increase diversity in housing choice through expanding missing middle development opportunities. 4) Encourage Accessory Dwelling Unit production. 5) Evaluate and consider revisions to the Federal Way Multifamily Dwelling Unit Limited Property Tax Exemption (MFTE) program. 6) Review school impact fees on multifamily housing. 7) Coordinate affordable housing development and preservation with nonprofit developers, community groups and the South King Housing and Homelessness Partnership (SKHHP). 8) Establish a Manufactured Home Park closure chapter in the zoning code. 9) Protect tenants through the development of a rental housing inspection program. Chair Bronson opened the meeting to public comment. Sam Pace, Housing Specialist with the Seattle King County REALTORS®. In summary, he is supportive of the city’s HAP specifically, the goal of increasing residential building capacity in the city and emphasizing Missing Middle Housing and ADUs. However, he is concerned the HAP may not go nearly far enough with regard to capacity. He believes the city’s comprehensive plan designations and accompanying zoning and development regulations place a cap on the amount of new housing that can be built in the city. They provide an upper limit on how much housing will be available in Federal Way. He encourages the city to “right-size” future downtown and TOD housing capacity based on 50-year needs, rather than the 20-year framework that he believes has proven to be a systemic failure for the last 30 years. One item that would help to attract homebuilders would be “additional predictability” by “grandfathering” existing uses in downtown and TOD areas, and then provide additional “overlay zoning” that allows development to meet 50-year market demand as an “outright permitted use.” The city has non-financial tools that hold enormous promise if used effectively. Those tools involve the regulatory authority and power to authorize, and to provide, legal capacity for enough housing in the city to ensure that everyone who needs a place to live will have access to housing they can afford. [His written comments are attached.] The Commission received two additional public comments by email that Assistant Piety forwarded to the Commissioners. They are attached. Commissioner Noble-Gulliford asked Mr. Pace to provide examples of non-financial tools. Mr. Pace responded that fully utilizing ADUs, downzoning and up-zoning as appropriate, and planning using a 50- year horizon are examples of some non-financial tools available to the city. Commissioner Elder suggested a change to the code so that a property owner requesting an ADU is not required to live on the property for at least six months out of the year. This would lead to more use of ADUs. Planning Commission Minutes Page 3 April 7, 2021 Commissioner O’Neil suggested the city allow more flexible zoning specifically to allow residential in the City Center zone, specifically for The Commons. He also suggested eliminating single-family zoning and exempting ADUs from impact fees. Director Davis explained that city center zoning allows residential zoning and due to financial reasons, The Commons hasn’t included residential, but expect they will in the future when it becomes more financially feasible. Commissioner Carlson expressed concern about Mr. Pace’s suggestion that the city use a 50-year timeline for planning because the PSRC doesn’t use a 50-year timeline (they use 20 years) when developing area housing and job numbers to be used for planning. This means the city would be planning for housing and job numbers that may be different from the official area numbers. Commissioner Patrick expressed concern that the city should consider equity and the surrounding neighborhoods/cities. Our policies need to set the city up for success. She also expressed concern over tax revenue. The city has a number of large apartment complexes where a large number of people live, but the city only receives property tax from the complex itself, not individuals. This leaves us with a large population but not much revenue from it. The city needs to consider alternatives to pay for our “infrastructure” (roads, schools, fire, police, etc.). Commissioner Noble-Gulliford expressed concern over the financial feasibility for different housing types (duplexes, ADUs, cottage housing, etc.) and asked if there are construction and buyer loans available for the different types. Planner Chaney replied she will have to research this. Commissioner Noble-Gulliford also expressed concern the city/staff is implying that BIPOC communities will receive special services. Planner Chaney replied that is not the intent, but we need to be aware of how they have been treated in the past and not repeat it. Commissioners Noble-Gulliford and Patrick suggested the city consider offering a program that will educate people on home-buying (similar to what the city offers to educate on recycling). Chair Bronson expressed the need for sewers in areas of the city still using septic systems. Commissioner Patrick expressed concern over allowing ADU’s in neighborhoods without sidewalks. Discussion, Preliminary Growth Targets Briefing – Senior Planner Rogers delivered the staff report. This is for information only. The Growth Management Act (GMA) provides the foundation for the development of regional planning policies via the Puget Sound Regional Council (PSRC), and those policies shape King County Countywide Planning Policies (CPP), which in turn provides guidance for the development of our planning policies. The CPPs, developed by the King County Growth Management Planning Council (GMPC), establish growth targets for each jurisdiction. The growth targets currently being established will be used for our update to the 2024 comprehensive plan. Our comprehensive plan will link these growth targets to land use assumptions, guiding where people will live and work within our city. This process happens every six to eight years, and coincides with the comprehensive plan update schedule. The methodology to develop the targets is a five-step process: • Step 1 – Create Countywide Regional Allocations • Step 2 – Select Data Factors • Step 3 – Collect Data • Step 4 – Convert Data into Percentage Shares • Step 5 – Create Preliminary Targets Planning Commission Minutes Page 4 April 7, 2021 After two rounds of negotiations between local jurisdictions and the state, Federal Way’s current targets are: housing at 11,260 and jobs at 20,460. At this point, the anticipated housing units have all been allocated, but there are still 27,899 anticipated jobs yet to be allocated. The public comment period will run through early May. This will be the city’s opportunity to adjust if needed. Amendments to the CPPs targets, based on public comments, will be presented to GMPC for approval by June 24. The GMPC is scheduled to adopt the CPPs and targets during the third quarter of the year. In the fourth quarter, the adopted CPPs and targets will go to the cities for ratification. Commissioner Carlson asked what is the City Council’s direction. Director Davis responded staff has not yet formally presented these findings to the Council. Commissioner Noble-Gulliford asked if these targets are in addition to our current targets? Planner Rogers replied that they are in addition. STAFF BUSINESS Director’s Report – Director Davis introduced our new Planning Manager, Keith Niven. NEXT MEETING April 21, 2021, 6:30 p.m., Zoom Meeting ADJOURN The meeting adjourned at 8:11 P.M. K:\Planning Commission\2016\Meeting Summary 04-07-21.doc