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Ballys Fitness Center Staff Report PLANNING COMMISSION STAFF REPORT September 8, 2021 TO: Planning Commission FROM: Brian Davis, Community Development Director Keith Niven, AICP, CEcD, Planning Manager Natalie Kamieniecki, Associate Planner SUBJECT: 2021 Comprehensive Plan Amendments Bally’s Fitness Center Site Specific Request MEETING DATE: September 15, 2021 I. BACKGROUND Pursuant to RCW 36.70A.130 (4), the City of Federal Way must update its comprehensive plan every eight years. The deadline for the next major update is June 2024. However, per Federal Way Revised Code (FWRC) 19.80.050, the city has elected to review citizen-initiated requests on an annual basis. As part of the annual review, the city may also make changes to chapters and maps of the comprehensive plan. Federal Way adopted its comprehensive plan in 1995 and updated it in December 1998, December 2000, November 2001, March 2003, July 2004, June 2005, July 2007, June 2009, October 2010, January 2011, January 2013, and June 2015. The Growth Management Act (GMA, RCW 36.70A.130 [2] [a]) limits plan updates to no more than once per year, except under the following circumstances: 1. The initial adoption of a subarea plan that clarifies, supplements, or implements jurisdiction-wide comprehensive plan policies; 2. The development of an initial subarea plan for economic development located outside of the one hundred year floodplain in a county that has completed a state- funded pilot project that is based on watershed characterization and local habitat assessment; 3. The adoption or amendment of a shoreline master program; 4. The amendment of the capital facilities element of a comprehensive plan that occurs concurrently with the adoption or amendment of a county or city budget; or 5. The adoption of comprehensive plan amendments necessary to enact a planned action. Except as otherwise provided above, the governing body shall consider all proposals concurrently, so the cumulative effect of the various proposals can be ascertained. However, after appropriate public participation, a county or city may adopt amendments or revisions to its comprehensive plan that conform to this chapter whenever an emergency exists, or to resolve an appeal of a comprehensive plan filed with a growth management hearings board or with the court. II. REASON FOR PLANNING COMMISSION ACTION FWRC Chapter 19.80, “Council Rezones,” establishes a process and criteria for comprehensive plan amendments. Consistent with Process VI review, the role of the Planning Commission is as follows: 1. To review and evaluate the requests for comprehensive plan amendments; 2. To determine whether the proposed comprehensive plan amendments meet the criteria provided by FWRC.80.140, 19.80.150, and 19.75.130(3); and 3. To forward a recommendation to the City Council regarding adoption of the proposed comprehensive plan amendments. III. PROCEDURAL SUMMARY Selection Process (Prioritizing Docketed Proposals) 6/07/21 Land Use Transportation Committee (LUTC) Meeting 6/15/21 City Council Public Hearing Comprehensive Plan Amendment Process 7/30/21 Issuance of Determination of Nonsignificance pursuant to the State Environmental Policy Act (SEPA) 08/13/21 End of SEPA Comment Period 09/03/21 End of SEPA Appeal Period 09/15/21 Public Hearing before the Planning Commission 10/06/21 Public Hearing continuance (if necessary) 11/01/21 LUTC Meeting 11/16/21 City Council 1st Reading 12/07/21 City Council 2nd Reading IV. 2021 COMPREHENSIVE PLAN AMENDMENTS This annual update includes one citizen-initiated request for amendments to comprehensive plan designations and zoning (Exhibit A). The site-specific request is described in Section V of this staff report. V. CITIZEN-INITIATED SITE-SPECIFIC REQUESTS 1. Site-Specific Request #1 – Bally’s Fitness Center Reason for the Request The property owner is requesting a comprehensive plan amendment and rezone of their property from Office Park (OP) to Multi-Family High-Density Residential (RM1800 one unit per 1,800 square feet) due to the lack of market demand for office park uses at this site, the ongoing housing shortage in Federal Way and King County. They also state that the highest and best use for the land is residential housing. Summary File Number: 20-103733- UP VI Applicant: ESM Consulting Engineers, LLC Eric Labrie Property Owner: First Avenue South Apartments LLC Dave Avenel, Weidner Apartment Homes Existing Comprehensive Plan Designation: Office Park (OP) Existing Zoning Designation: Office Park (OP) Requested Comprehensive Plan Designation: Multi Family Residential (RM1800) Requested Zoning Designation: Multi-Family Residential (RM1800) Surrounding Zoning & Land Use Zoning Land Use North Multi-Family (RM1800, one unit per 1,800 square feet) Colonial Forest Condominium South Multi-family (RM 2400, one unit per 2,400 square feet) Westboro Apartments Parcel No. Address Size in Acres Existing Land Use 172104-9038 32818 1st Avenue S 6.00 acres Vacant, unoccupied building Zoning Land Use East Multi-Family (RM1800, one unit per 1,800 square feet) West Highlands West Neighborhood Business (BN) 7-11 Convenience Store, Restaurants, various commercial uses Availability of Utilities Sanitary Sewer: Lakehaven Water and Sewer provides sewer service in this area. Sewer service is available adjacent to the property along 1st Avenue South. Regardless of the outcome of the land use actions, future development of the property will require Lakehaven Certificates of Availability, Developer Extension Agreement(s), and sewer service connections. Public Water: Lakehaven Water and Sewer District provides water service in this area. Existing water facilities are adjacent to the property along 1st Avenue South and South 312th Street. Regardless of the outcome of the land use actions, future development of the property will require Lakehaven Certificates of Availability, Developer Extension Agreement(s), and water service connections Solid Waste: Solid waste is provided by Waste Management. Availability of Public Services Police: Police services is provided by and will continue to be provided by the City of Federal Way Police Department. Fire/Emergency/Medical: These services are provided by South King Fire and Rescue. Schools: The property falls within the boundaries of Federal Way School District. Critical Areas The site is fairly level with gentle sloping areas. No geologically hazardous landslide or erosion hazards are located on site. No wetlands or fish and wildlife habitat is located on or within 225 feet of the subject property. The site is located within a five-year capture zone (Exhibit B) A five-year capture zone represents the time it takes spills within the land area overlaying the five-year capture zone to travel to any public water source well owned by Lakehaven Water and Sewer District, excluding the land area contained in the six-month or one-year capture zones. At the time of development, the applicant will be required to submit a Hazardous Materials Inventory Statement that discloses the approximate quantities of hazardous materials that will be stored, handled, treated, used, produced, recycled, or disposed of in connection with the proposed activity. Drainage Surface water runoff control and water quality treatment will be required per the 2016 King County Surface Water Design Manual (KCSWDM) and the City of Federal Way Addendum to the manual. Future development must meet the requirements for a Full Drainage Review. At the time of land use site plan submittal, a preliminary Technical Information Report (TIR), addressing the relevance of the project to the nine core and five special requirements of the KCSWDM will be required. A Level 1 downstream analysis shall also be provided in the preliminary TIR. The City Addendum can be found at the following website: www.cityoffederalway.com/node/1467. The site lies within a Conservation flow control area; thus the applicant must design the flow control facility to meet this performance criteria. In addition to flow control facilities, Best Management Practices (BMP’s) are required as outlined in the KCSWDM. The project also lies within Enhanced Basic Water Quality Area. Water Quality Treatment shall be designed to meet the treatment criteria of the Enhanced Basic Water Quality Menu. The City will accept treatment systems which are listed on the Department of Ecology’s General Use Level Designation (GULD) for the required level of water quality treatment. Access This parcel fronts on and has existing driveway access from South 328tth Street and 1st Avenue South. Final access points will be reviewed through future site-specific development applications. Potential Traffic Impacts This is a non-project action associated with changing the comprehensive plan designation and zoning from Office Park (OP) to Multi-Family High-Density Residential (RM1800, one unit per 1.800 square feet). This non-project action by itself does not affect traffic. However, at the time that an application for a development permit is submitted, the Traffic Division will conduct a Transportation Concurrency Analysis, which will analyze peak hour impacts of the project to assure that there is adequate capacity to accommodate the proposed development. Supplemental mitigation may be required if the proposed project creates an impact not anticipated in the Transportation Improvement Plan (TIP). Development proposals will also be subject to a traffic impact fee to address system impacts. Site-specific analysis may also be required to address impacts outside of the evening peak hour or safety issues. Public Comments Received The following is a summary of the comments received during the notice of application and Comment letters are included as an attachment to this staff report (Exhibit I). • The corner of 1st Ave S and 328th ST S is a busy corner. Adding residential units at this location would increase traffic congestion. • Additional traffic at this location would exacerbate safety conditions as speeding through the adjacent neighborhoods is already a concern. • Interest in having the property in a secure park like state if not developed. The current building is an eyesore and is frequently subject to trespassing and vandalism. • Concerns over more multi-family development coming into the city. Additional businesses would be more useful to the people in the neighborhood. • moorish nationall reepublic federall governmente have stated that they have right to the use of the structures on the property and underlying land. • Concerns over the income levels of future occupants. • Concerns regarding increased crime. • Concerns regarding the income level of the persons occupying the units. V. COMPLIANCE WITH FWRC 19.80.140 AND 19.80.150 1. FWRC 19.80.140, Factors to be Considered in a Comprehensive Plan Amendment – The city may consider, but is not limited to, the following factors when considering a proposed amendment to the comprehensive plan. (1) The effect upon the physical environment. There should be no adverse impact on the physical environment related to development of this area, regardless of zoning as the city has adopted codes in place to protect the environment. Aquifer Recharge Areas (Groundwater) Federal Way is dependent on groundwater as a source of drinking water. Water from rainfall, snowmelt, lakes, streams, and wetlands seeps into the ground and collects in porous areas of rock, sand, and gravel called aquifers. Aquifers hold varying amounts of groundwater that can be extracted or pumped for use. Groundwater pumped from Lakehaven Water and Sewer District wells originates from three aquifer systems that underlie the city: the Redondo-Milton Channel Aquifer, the Intermediate Aquifer System (Mirror Lake and Eastern Upland Aquifers), and the Deep Aquifer (Exhibit C) The locations of wellhead capture zones in relationship to the aquifer systems are shown on Map IX-2 (Exhibit D). The site is located within the 5 and 10 year wellhead capture zone. A Hazardous Material Checklist is required for any development proposal on the subject property. Map IX-3 (Exhibit E) shows Areas Susceptible to Groundwater Contamination associated with development. This map shows that the majority of the city, including this area, has a medium susceptibility to groundwater contamination. Wetlands The city’s Critical Area Map (Exhibit B) does not indicate wetlands on or within 500 feet of the subject property. (2) The effect on open space, streams, and lakes. Open space would be required for residential development of the site either in the form of dedicated onsite areas or fee in lieu program, or a combination of the two. There are no mapped lakes or streams on or within close proximity to the site (Exhibit B). (3) The compatibility with and impact on adjacent land uses and surrounding neighborhoods. The existing comprehensive plan and zone classification of Office Park (OP) is isolated from other Office Park zoning. The site has not been redeveloped since the issuance of Determination of Non-Significance (DNS) for demolition of the existing structure (Exhibit F). The immediate comprehensive plan and zoning classifications or adjacent property is Multi-family residential. The surrounding uses are primarily multi-family uses and attached dwelling units with single family uses and neighborhoods. The requested zone is compatible with the surrounding zoning and land use patterns (Exhibit A). (4) The adequacy of and impact on community facilities including utilities, roads, public transportation, parks, recreation, and schools. All public utilities are available to at the subject property. There are a wide variety of recreational opportunities in the city (Exhibit G). These opportunities include Dash Point State Park (a 398-acre state park on the west side of the city, operated and maintained by Washington State Parks); Celebration Park (an 84-acre city-owned community park located approximately in the middle of the city with ballfields and walking trails); Town Square Park (a four acre city-owned community park located in the City Center); and recreation trails in the Bonneville Power Administration right-of- way. As shown on Map VI-4, there are also a number of other parks and open space areas scattered throughout the city; however, there are no existing recreational facilities east of I-5 in this immediate vicinity, except for the Enchanted Park/Wild Waves Amusement Park, located to the northeast. City codes require provision of on-site open space, or a fee-in-lieu of open space, when land is subdivided or developed for residential uses. If the parcel is developed with residential uses in the future, impacts on schools should be mitigated by the payment of a school impact fee. The 2021 school impact fee is $7,221 per single family detached dwelling unit developments. The school impact fee is a range between $6,301 – and $16,803 for each multi-family unit depending on the if the development contains mixed- use and per bedroom count. (5) The benefit to the neighborhood, city, and region. At present, there is a lack of supply of housing opportunities; therefore, providing more opportunities for housing would benefit the city and region. (6) The quantity and location of land planned for the proposed land use type and density and the demand for such land. Approval of this request could result in 145 residential units. Federal Way needs to add about 6,800 new units before 2040 to accommodate population growth and account for past underproduction. This equates to an average production of 339 additional units each year, a 68% increase over recent housing production trends (Exhibit H, page 3). Based on the Housing Action Plan data and the Housing Forecast Map (Exhibit I), there appears to be a need for additional capacity for general residential and multi-family units within the city and region. (7) The current and projected population density in the area. If the proposed comprehensive plan amendment and rezone are approved, the density allowed for residential development would be 1 unit per 1800 square feet of the gross lot acreage. Future density is estimated to be approximately 145 units on site. The number of units may decrease depending on development regulations for access and stormwater infrastructure, and zoning restrictions due to height, parking, landscaping and open space requirements. As identified in the Housing Action Plan the area in general can accommodate such development. The majority of new housing units built in the last decade have been in large multifamily housing developments of 100+ units. Most housing units in the city were built in the 1980s or earlier, including more than half of units in multifamily buildings. Federal Way experienced a boom in housing production in 2016 and 2017, with nearly 1,200 new housing units built across those two years, as shown in Exhibit 33. Most of those new units were in larger multifamily buildings. Since then, new construction has slowed, with just over 300 units built in 2018 and 2019 combined (Exhibit H). (8) The effect upon other aspects of the comprehensive plan. Approval of the requested Multi-Family (RM1800) zoning will not affect other aspects of the comprehensive plan. If approved, the new comprehensive plan designation and rezone will be consistent will surrounding property and eliminate an isolated spot zoned property. 2. FWRC 19.80.150, Criteria for Amending the Comprehensive Plan – The city may amend the comprehensive plan only if it finds that: (1) The proposed amendment bears a substantial relationship to public health, safety, or welfare; Changing the designations from Office Park to Multi-Family High Density Residential (RM1800, one unit per 1,800 square feet) does have a substantial relationship to public health, or safety in that higher density may result in more housing at less cost, which bears a substantial relationship to the welfare of that segment of the population that may be struggling to find affordable housing and/or more diverse housing such as the possibility for townhome development or market rate apartments. The Housing Action Plan has indicated that this area having the potential for redevelopment and contribution of additional residential units to meet expected population growth goals. (2) The proposed amendment is in the best interest of the residents of the city. Please see responses under Sections V (1) (5) and V (2) (1). (3) The proposed amendment is consistent with the requirements of Chapter 36.70A RCW and with the portion of the city’s adopted plan not affected by the amendments. The comprehensive plan amendment and rezone under consideration is consistent with the following goals of RCW Chapter 36.70A.020 (2) of the Growth Management Act (GMA): “(i) Urban growth. Encourage development in urban areas where adequate public facilities and services exist or can be provided in an efficient manner. “(ii) Reduce sprawl. Reduce the inappropriate conversion of undeveloped land into sprawling, low-density development. “(iii) Housing. Encourage the availability of affordable housing to all economic segments of the population of this state, promote a variety of residential densities and housing types, and encourage preservation of existing housing stock.” The proposal is also consistent with the following policies of the comprehensive plan: “LUP 8 Designate and zone land to provide for Federal Way’s share of regionally adopted demand forecasts for residential, commercial, and industrial uses for the next 20 years. “HP16 Increase capacity and encourage greater diversity of housing types and costs for both infill and new development through various methods, such as inclusionary zoning, density bonuses, and transfer of development rights, cluster housing, cottage housing, garden housing, duplexes, and low to moderate density housing types. VI. MAYOR’S RECOMMENDATION A. Site-Specific Request - Request by First Avenue South Apartments LLC for a comprehensive plan amendment and rezone of parcel 172104-9038 (6 acres total), located south of South 328th Street and east of 1st Avenue South, from Office Park (OP) to Multi-Family Residential (RM1800, 1 dwelling unit per 1800 square feet) Mayor’s Recommendation - The Mayor recommends that the request be approved. PLANNING COMMISSION ACTION Consistent with the provisions of FWRC 19.80.240, the Planning Commission may take the following actions regarding each proposed comprehensive plan amendment and rezone request: 1 Recommend to City Council adoption of the proposed comprehensive plan amendment as proposed; 2. Recommend to City Council that the proposed comprehensive plan amendment not be adopted; 3. Forward the proposed comprehensive plan amendment to City Council without a recommendation; or 4. Modify the proposed comprehensive plan amendment and recommend to City Council adoption of the amendment, as modified. List of Exhibits: Exhibit A Proposed Comprehensive Plan and Rezone Map 5-4-2021 Exhibit B DNS 16-103682-SE Exhibit C Map VI-4 Major Parks and Open Spaces Exhibit D Housing Forecast Map Exhibit E Public Comments Exhibit A Proposed Comprehensive Plan and Rezone Map (1 of 2) 5-4-2021 Exhibit A Proposed Comprehensive Plan and Rezone Map (2 of 2) 5-4-2021 Exhibit B DNS 16-103682-SE Exhibit C Map VI-4 Major Parks and Open Spaces Exhibit D Housing Forecast Map Exhibit E Public Comments