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2010-05-18 HEX# 10-004 Final DecisionDEN UHY ALIACE P. L L C . ATTORNEYS AT LAW N. Kay Richards Legal Assistant 206.447.2231 krichards@omwlaw. com June 2, 2010 Carol A. McNeilly, CMC City Clerk City of Federal Way P. O. Box 9718 Federal Way WA 98063-9718 Re: Village Green Senior Housing, Phases II and III File Nos. 08-105555-00-UP and 08-105557-00-SE Dear Carol: At the request of Phil Olbrechts, enclosed is the executed Decision in the above -referenced matter along with a Declaration of Mailing. Very truly yours, OGDEN MURPHY WALLACE, P.L.L.C. N. Kay Richards, Legal Assistant to Phil Olbrechts /nkr Enclosures Established 1902 A Member of the International Lawyers Network with independent member law firms worldwide 1601 Fifth Avenue, Suite 2100 • Seattle, WA 98101-1686 • 206 4477000 • Fax: 206.4470215 • Web: www omwlaw com {PA0793162.DOC;1\13041.900000\ } BEFORE THE HEARING EXAMINER FOR THE CITY OF FEDERAL WAY Phil Olbrechts, Hearing Examiner RE: Village Green Phases II & III FINDINGS OF FACT, CONCLUSIONS OF 08-105555-00-UP, 08-105557-00-SE LAW AND DECISION INTRODUCTION The applicant requests Process IV approval and a five-year extension of the construction deadline to complete two phases of an existing senior housing development. The Hearing Examiner approves the application, subject to conditions. ORAL TESTIMONY Deb Barker — Federal Way Senior Staff Ms. Barker began by giving a brief overview of the Village Green staff report, project, and timeline. She next responded to questions from the Hearing Examiner. The project application vested in 2008 and will be evaluated under the stormwater system and City Code from that time. There have not been significant changes in the project proposal since initial approval, which took into account taking vacant land and building multiple different types of structures. Kevin Peterson - Federal Way Public Works Department As far as the City is concerned, no impacts for the project have been reviewed under the 2009 stormwater manual, as the project vested under the 1998 stormwater manual. It is possible that there could be future impacts, but they have not been reviewed under the newly adopted standards. Heidi Swartz — Representative of Village Green The applicants are requesting 10 years, as opposed to the current 5 granted, for substantial completion of the project. The main reason for this is due to the current economic climate. As the applicant has gone through construction over the past months, the market appears to have been saturated and has, at a minimum, significantly slowed. The housing is for seniors who have been hit hard by the current economic conditions and, as a result, have chosen either to stay in their current housing or move in with family rather than into the new homes being constructed. There is a very minimal market for the homes that have yet to be built. Additionally, as with the economy in general, the commercial lending sector has scaled back greatly, and even if the applicant wanted to build right now, it would be exceedingly difficult to find funding to do so. They are anticipating a better chance in 2012 or 2013. Also, they believe that their demographic will bounce back, as they truly do provide affordable housing. However, {PA0793145.DOC;1\13041.150035\ } Village Green Extension Request P. 1 Findings, Conclusions and Recommendation the demand will be there, but over an extended period of time longer than that originally anticipated. The applicant understands that if there are any complications to the extension of the five-year period, the two key issues are drainage and traffic, which the conditions to approval adequately address. Harold Duncanson — Duncanson Co. Inc, Engineers Regarding the drainage on the project, the project is vested to the 1998 standards. The current stormwater systems on site do meet the 1998 standards and were designed to meet the standards of the 2009 manual as well. In addition, there is room on the site to make accommodations for any necessary changes. Harry Long — Federal Way Public Traffic With the extension of the application, further traffic analysis and mitigation measures were undertaken, in addition to the original analysis in the initial application. The analysis found that there would be an increase in traffic, on a per trip basis, and as such a mitigation fee higher than that originally determined has been imposed. EXHIBITS See list of exhibits attached to the staff report prepared by Deb Barker. Exhibit D of that exhibit list has been replaced with a letter dated June 10, 2008, from the City. The City's PowerPoint presentation presented during the hearing is admitted as Exhibit W. FINDINGS OF FACT Procedural: 1. Applicant. The applicant is Village Green of Federal Way, A Retirement Campus, LLC. The applicant is represented by Heidi Swartz of The Swartz Company. 2. Hearing. The Hearing Examiner conducted a hearing on the application at 11:00 a.m. at Federal Way City Hall on May 18, 2010. Substantive: 3. Site/Proposal Description. The applicant has applied for Process IV approval for a senior housing project along with a five-year extension to the applicable five-year construction deadline. The project has been previously approved, but the construction deadlines for all phases have expired and the applicant is reapplying for the same project design. The Village Green retirement campus is an existing senior housing facility that includes stacked, cottage, and duplex rental housing types for senior citizens, within multiple buildings over a 22- acre site with associated infrastructure. All internal access roads, sidewalks, landscaping, streetlights, and storm drainage facilities are privately owned and operated. Village Green is a (PA0793145.DOC;1\13041.150035\ ) Village Green Extension Request p. 2 Findings, Conclusions and Recommendation three-phase development, of which Phase I has been completed, Phase II has 63 units complete and 165 unconstructed, and Phase III has 14 units completed and 26 unconstructed. 4. Characteristics of the Area. The property is situated in an urbanized neighborhood, with a surrounding mix of single and multi -family residential areas. Current uses surrounding the 22- acre site include multifamily/RM-2400 to the north and single-family high density/RS-9.6 in all other surrounding directions. 5. Adverse Impacts. The project received a SEPA Determination of Nonsignificance (DNS) on March 13, 2010. In addition, the project has already been approved under highly similar regulations, but, as previously discussed, that approval lapsed. No alterations to the originally approved project design have been proposed. As demonstrated by the completed portions of the project, the applicant proposes high -quality construction with landscaping and pedestrian amenities that benefit both the occupants of the project as well as neighboring properties. A 20- foot landscaping buffer will shield residences to the south, and the buffering will be enhanced by the retention and replacement of significant trees. Conditions of approval will require compliance with current drainage and transportation standards for any construction initiated during the five-year extension period, ensuring that the project does not proceed under highly outdated regulations. Compliance with current traffic requirements is especially significant for concurrency, since the City's concurrency requirements are based upon its Six Year TIP, which only extends to 2015. No critical areas are on site. No comments from the public have been received, which is especially significant for this application since the public has had the opportunity to witness the impacts of the completed portions of the project. Given all these factors, there are no significant adverse impacts associated with this project. CONCLUSIONS OF LAW Procedural: 1. Authority of Hearing. Examiner: FWRC 19.70.150 provides that the Examiner shall issue a written decision on Process IV applications. FWRC 19.70.210 provides that the Examiner's decision is appealable to the City Council. Substantive: 2. Zoning Desi ng ation: RS 7.2 and RS 9.6, Single -Family High Density. 3. Review Criteria and Application. FWRC 19.200.100 requires Process IV review for senior citizen housing. Process IV criteria are governed by FWRC 19.70.150. Those criteria are quoted in italics below and applied to the application under corresponding Conclusions of Law. Hearing Examiner Review Process IV Decisional Criteria, FWRC 19.70.150(3)(a): It is consistent with the comprehensive plan. (PA0793145.DOC;1\13041.150035\ ) Village Green Extension Request p. 3 Findings, Conclusions and Recommendation 4. The development represents the completion of the Village Green senior housing campus, which offers a wide range of housing types and styles, in addition to recreational and cultural opportunities, while providing seniors a neighborhood -like environment for their retirement. The current proposal will increase housing opportunities for more active seniors within Village Green, timed to meet market demands. As conditioned, the application is consistent with the FWCP designation of Single Family High Density Residential and the FWCP goals and policies identified in the staff report. Hearing Examiner Review Process IV Decisional Criteria, FWRC 19.70.150(3)(b): It is consistent with all applicable provisions of this chapter and all other applicable laws. 5. The City's Community Development Review Committee has reviewed the proposal and found it to be in compliance with all applicable codes, policies, regulations, and previous conditions of Hearing Examiner approval. Development of the site in accordance with these requirements and the conditions of approval will ensure compliance will all applicable codes, policies, and regulations. In order to ensure that the requested five-year extension does not authorize the development to proceed under highly outdated development standards, the conditions of approval require the project to comply with current drainage and transportation standards for any construction initiated within the five-year extension period. The Examiner adopts the staff s analysis of compliance with the special regulations applicable to senior housing projects identified in FWRC 19.200.100. The Examiner also approves the requested modifications to the fagade length and building height identified in the staff report at page 12 for the reasons stated in page 12. Hearing Examiner Review Process IV Decisional Criteria, FWRC 19.70.150(3)(c): It is consistent with the public health, safety, and welfare. 6. The criterion is satisfied. As discussed in the findings of fact, there are no adverse impacts associated with the project. As conditioned, all impacts have been fully mitigated. The provision of senior housing to the City of Federal Way community is also inherently consistent with public welfare. Hearing Examiner Review Process IV Decisional Criteria, FWRC 19.70.150(d): The streets and utilities in the area of the subject property are adequate to serve the anticipated demand from the proposal. 7. Urban services are available to the site, and the site has direct access to 2nd Avenue SW and to I" Avenue South. Internal private streets with associated right-of-way dedication are consistent with the City's required street improvements and approved modifications. As a condition of approval, the applicant is required to pay $113,394 as its pro-rata share contribution to 2010-2015 Transportation Improvement Plan projects. This amount may be modified to meet updated TIP requirements for construction of portions of the project initiated during the five-year {PA0793145.DOC;1\13041.150035\ } Village Green Extension Request p. 4 Findings, Conclusions and Recommendation extension period. The site is also served by public and private transportation services to meet demand. Hearing Examiner Review Process IV Decisional Criteria, FWRC 19.70.150(e): The proposed access to the subject property is at the optimal location and configuration for access. 8. Access to Phases II and II is provided from 2nd Avenue SW and 1 sc Avenue South through the existing Village Green site. Access points have been determined to be at the optimal location and configuration based on City staff review considering applicable code requirements, and by South King Fire and Rescue considering emergency access requirements. Additionally, the site plan and design was previously analyzed and approved for the original permit approval; since that time no changes have been made to the site configuration and none are proposed in this request. FWCC 19.15.100(2): ...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. 9. The project is clearly phased and qualifies for consideration of a five year extension. There are no criteria for granting such an extension. However, current economic conditions and the associated difficulties in marketing senior housing units clearly justify the extension. The added requirements for meeting current drainage and transportation requirements during the extension period assure that there will be no adverse impacts associated with the extension. The five year extension is granted. DECISION The Hearing Examiner approves project and requested five year construction extension, with the conditions suggested in the staff report on pages 18 & 19. As extended, construction must be substantially completed by June 2, 2020. Dated this 1 Sc day of June 2010. hil Olbrechts Hearing Examiner City of Federal Way (BFP699241. DOC;1 /13041.150010/) Village Green Extension Request p. 5 Findings, Conclusions and Recommendation DECLARATION OF MAILING Village Green Senior Housing, Phases II and III Federal Way File Nos. 08-105555-00-UP and 08-105557-00-SE I, N. Kay Richards, make the following declaration: 1. I am a resident of the State of Washington, over the age of 18 years, not a party to this action, and competent to be a witness herein. 2. On the 2nd day of June, 2010, I mailed, via First Class U.S. Mail, a true and correct copy of the Findings of Fact, Conclusions of Law and Decision and this Declaration of Service to the following: Heidi Swartz The Swartz Company 5724 30th Avenue NE Seattle, WA 98105 Duncanson Company, Inc. Harold Duncanson, Project Manager 145 SW 155th Street, Suite 102 Seattle, WA 98166 Village Green of Federal Way, A Retirement Campus, LLC P.O. Box 98309' Des Moines, WA 98198 Jennifer Kelly 145 SW 155th St., #102 Seattle, WA 98166 Ned Gulbran 2833 Mt. St. Helens Pl. S. Seattle, WA 98144 I declare under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct. EXECUTED at Seattle, Washington, this 2nd day of June, 2010. N. Kay RicArds {PA0793149.DOC;1\13041.150035\ }