City Council Study Session Agenda Puyallup City Council Chambers 333 S Meridian, Puyallup Tuesday, February 5, :30 PM

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1 City Council Study Session Agenda Puyallup City Council Chambers 333 S Meridian, Puyallup Tuesday, February 5, :30 PM PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF THE AGENDA 1. AGENDA ITEMS 1.a Transfer of Development Rights Presentation A) TDR Program Brochure Pierce County B) LCLIP Overview 1.b Informational Presentation: Puyallup Housing Choices code amendments Housing Choices Flyer Current Code vs Amended Table CITIZEN COMMENTS ADJOURNMENT The City Council Chambers is wheelchair accessible. Those needing assistance with hearing devices should contact the City Clerk's Office ( ) the Friday preceding the meeting. 1

2 City Council Agenda Item Report Submitted by: Katie Baker Submitting Department: Development Services Meeting Date: 2/05/2019 Subject: Transfer of Development Rights Presentation Presenter: Katie Baker, AICP, Senior Planner (253) Recommendation: Discussion and policy direction. Background: Planning staff and project consultants will provide an update on the work to develop a Transfer of Development Rights (TDR) program for the City. In September 2017, City Council directed staff and a consultant (Forterra) to resume work on assessing a Transfer of Development Rights (TDR) program, a project that was previously being developed in 2011/2012 as part of the larger Cultivating Puyallup project.in February 2018, staff and project consultants provided City Council with background on the prior 2012 work, an overview of the components that make up a TDR program, and the role that the Landscape Conservation and Local Infrastructure Program (LCLIP) can play in relation to a TDR program. City Council provided input and direction on key policy issues at that time. Since then, the project team has completed a market review and initial program framework based on that earlier input. At this upcoming study session, staff and consultants will provide an update on this work as well as pose questions for policy direction related to a few key issues. These policy issues include: permissible receiving sites (areas to receive additional development); program administration options; structure of bonus incentives; and interest in participating in LCLIP. A full presentation will be provided at the study session. Please see the attached supplemental documents for overview information on TDR and LCLIP. Council Direction: The City Council previously received a presentation on this topic and provided direction at their February 13, 2018 study session. At this study session City Council may ask questions and provide further input and direction to inform the continued work on this topic. Fiscal Impacts: 2

3 City Council previously authorized the City Manager to enter into a contract with a consulting firm to develop this TDR program. This cost was included in the adopted 2018 and 2019 budget. ATTACHMENTS A) TDR Program Brochure Pierce County B) LCLIP Overview 3

4 County TDR Program TDR permanently conserves resource lands through acquisition and extinguishment of development rights: Development rights are transferred from resource lands by placing a conservation easement on property 4 Funds received from TDR Certificates are deposited into TDR Bank to purchase additional development rights on resource lands 1 3 Development rights are converted to TDR Certificates and deposited in County TDR Bank 2 TDR Certificates are sold to eligible receiving sites within city to increase the intensity of development Why TDR? A Transfer of Development Rights Program allows a city and the County to comply with goals of the Growth Management Act and Vision 2040: Helps focus growth and efficiently deliver services Directs development to urban areas by creating density incentives Discourages inappropriate conversion of undeveloped rural and resource lands Conserves lands that provide economic and environmental benefits to all residents Enables County and cities to adopt cooperative planning goals and policies Resources Transfer of Development Rights Information for Cities and Towns Resource Land Development Rights Conservation Easement $$$ Note An Interlocal Agreement is required for TDR Certificates to be used in other jurisdictions County Contact: Diane Marcus-Jones, Senior Planner dmarcus@co.pierce.wa.us Higher Density Urban Development 4

5 City TDR Program Interlocal Agreement Transactions Cities must adopt their own TDR programs in order to transfer development rights from the County A cooperative framework that provides the transfer of development rights from County to City: 81 TDR Certificates currently for sale City TDR Program authorizes: Equitable conversion ratio and how density credits will be realized Identify County priority resource lands Ability to transfer development rights from County lands to City Identify areas within City limits that are eligible receiving areas Example: Conversion Ratio One (1) TDR Certificate could equal One (1) Density Credit Density Credits could increase: Square footage of vertical height Dwelling units Parking Spaces Other development standards Establishes procedures for facilitation and completing transactions Identifies appropriate rural/resource lands to protect Identifies receiving areas and conversion ratios Memorializes the agreement between two jurisdictions Agreement must be approved by both County and City Councils TDR Banks TDR Banks contain funds to buy development rights and store TDR certificates A city may buy TDR Certificates from the County TDR Bank and transfer to their own TDR Bank Developers may purchase TDR Certificates directly from County TDR Bank Development Right TDR Certificate Density Credits $ X The price of a TDR Certificate is set by the TDR Technical Oversight Committee and is not to exceed fair market value Offers to purchase TDR certificates include: Development rights are to be used only inside an identified eligible receiving area Number of development rights to be purchased Location of the receiving site A Purchase and Sale Agreement formalizes transaction Once a TDR Certificate is used, the development right is extinguished 5

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8 City Council Agenda Item Report Submitted by: Chris Beale Submitting Department: Development Services Meeting Date: 2/05/2019 Subject: Informational Presentation: Puyallup Housing Choices code amendments Presenter: Chris Beale, Senior Planner (253) Recommendation: Receive an informational presentation about draft housing-related zoning code amendments. Background: The proposed amendments are related to policies in our Comprehensive Plan which state that the city should (P)romote a variety of residential densities and housing types to ensure a wide range of living accommodation choices for all life stages and households in the City: and (P)romote the creation and expansion of a variety of housing types and densities affordable to all economic segments of the population of the City. These policies were adopted in 2015 by the City Council and the City Planning Commission has been working on implementing those by looking at a wider variety of housing types in the city. Other various amendments in this package were identified due to consistency with other portions of the 2015 Comprehensive Plan update, as well as customer inquiries, feedback from City Council or Planning Commission, and identification by staff to assist with day-to-day implementation and clarity of the municipal code. The Planning Commission reviewed these areas of amendment over multiple work sessions held on October 12, 2016; March 22, 2017; May 24, 2017; September 13, 2017; March 28, 2018 and October 24, The amendments were also considered by the Commission after a public hearing held on December 12, The Commission recommended (5-1) that the Council adopt the proposed amendments. Council Direction: The City Council previously reviewed a list of possible amendments related to affordable housing in a study session on March 7, 2017 and provided direction to the Planning Commission and staff at that time, requesting that the Planning Commission formulate a proposed set of amendments which resulted in this package of draft code changes. Fiscal Impacts: 8

9 This is an informational presentation on draft code amendments; no fiscal impacts have been identified. ATTACHMENTS Housing Choices Flyer Current Code vs Amended Table 9

10 The City of Puyallup is considering zoning changes which are intended to promote housing choices and housing affordability throughout the city. Promote a variety of residential densities and housing types to ensure a wide range of living accommodation choices for all life stages and households in the City. Promote the creation and expansion of a variety of housing types and densities affordable to all economic segments of the population of the City. Puyallup s Comprehensive Plan, Housing Element Changes to density bonus options in multi-family zones Flexibility in lot dimensions and setbacks for short platting Reduction in fees charged for Accessory Dwelling Units Reduced parking requirements for designated affordable housing Modified permitting and allowances for 2 and 3-family dwelling units Allowing Cottage Housing through design regulation ordinance Permit options for Tiny Houses on Wheels Other minor clean ups to residential code = Planning Commission review 10/24 Public comment period 11/16-12/12 Planning Commission Hearing 12/12 City Council Public Meeting and review January, 2019 City Council Final Adoption February,

11 PUYALLUP HOUSING CHOICES CODE AMENDMENTS SUMMARY Current code Accessory dwelling units Impact fees = $10,267 Utility hook up fee = same as any single family home Detached ADU permit (land use) and building permit Different size maximums, number of bedrooms for different types of accessory dwelling units No options for tiny homes on wheels Duplex/triplexes in RS zones Design review standards apply to all Permitted on a limited basis in RS-04, RS-06 (2 plex OR 3 plex) Conditionally permitted on a limited basis in RS-08 (2 plex only) Not permitted on any basis in RS-10 or RS-35 Development standards in RS zones Maximum densities only, no minimum densities (all RS zones) Minimum lot dimensions (width and depth) prescribed strictly for zones Density Bonuses in RM zones Four (4) different options for density bonuses Not all bonus provisions apply to every property Proposed amendments Accessory dwelling units Amended impact fees = $2,051 Utility hook up fee = scaled to size and impact of ADUs Building permit only Streamline size and bedroom limits with one standard Added options for tiny homes on wheels Duplex/triplexes in RS zones Design review standards apply, with new landscaping and high quality siding materials standards added to all Permitted in RS-04 (2 plex OR 3 plex) Permitted on a limited basis in RS-06 (2 plex OR 3 plex) Conditionally permitted on a very limited basis in RS-10 (2 plex only) Not permitted on any basis in RS-35 Development standards in RS zones Maximum densities only, minimum densities apply in RS-04 and RS- 06 only - No changes to maximum density limits in any RS zone Retain and modify lot width, remove lot depth requirements No changes to overall minimum lot size in any RS zone Density Bonuses in RM zones Eight (8) different options for density bonuses All bonuses could be applied to development proposals Other various amendments Re-authorization of the Cottage Housing Ordinance (previous time-limited pilot ordinance sunset) Reorganization of detached accessory building code for clarity of administration Minor amendments to setbacks for sheds, decks Minor land use amendments in RM zones Various amendments to off-street parking reductions options 11