Staff Report. State Environmental Policy Act (SEPA): The proposal requires review under the State Environmental Policy Act.

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Staff Report Major Amendment to Preliminary Plat / Planned Development District: Oakpointe at Sunrise PDD, Phase 1 (aka Emerald Ridge PDD) Application Number: 865995 Tax Parcel Number: 6026455560 South Hill Advisory Commission Meeting: October 2, 2017, at 7:00 p.m., at Central Pierce Fire & Rescue, Station 69, 17210-110th Avenue East, Puyallup, WA Proposal: Applicant requests a Major Amendment to the previously approved Preliminary Plat / Planned Development District (PDD) for Emerald Ridge, within the Sunrise Master Plan, to construct commercial uses on Lot 556, a 3.3-acre parcel, in lieu of the approved 80-unit complex and reduce the overall residential density by 60 units. Project Location: The parcel is located at the northwest corner of 122nd Avenue East and Sunrise Boulevard, within the Sunrise Master Plan. Emerald Ridge PDD was approved on March 18, 2005, under two zoning classifications, High Density Residential (HRD) and Mixed Use District (MUD). The project is within the South Hill Community Plan area, in the SW 1/4 of Sections 26, T19N, R4E, W.M., in Council District #1. Review Summary: The proposal has been reviewed for conformance with the Pierce County Development Regulations and the provisions of the Sunrise Master Plan, and its Development Agreement (DA). The Department finds that the proposed changes are major in nature and can be approved through the Major Amendment application. Constructing commercial uses versus the previously-approved 80 unit multi-family complex will normally not require a special application other than obtaining building permits. The transfer of the remaining number of dwelling units to another site within a Planned Development District (PDD), which was previously approved for multifamily, has necessitated the need for this Major Amendment application. Also, the Hearing Examiner, in reviewing a previously similar proposal through a Minor Amendment, has determined that a Major Amendment is the proper application for such request. State Environmental Policy Act (SEPA): The proposal requires review under the State Environmental Policy Act. County Contact: Cory Ragan, Associate Planner, 253-798-2590, cragan@co.pierce.wa.us Pierce County Online Permit Information: https://palsonline.co.pierce.wa.us/palsonline/#/permitsearch/permit/departmentstatus?applpermitid=865995 Page 1 of 8

Project Data Application Complete Date: July 11, 2017 Staff Report Sent: September 26, 2017 Owner/Applicant: Agent: Attorney: MS Emerald Ridge LLC 10220 NE Pointes Drive, Suite 310 Kirkland,WA 98033 mnelson@oakpointe.com Leroy Surveyors & Engineers, Inc. Attn: Damon DeRosa PO Box 740 Puyallup, WA 98371 damon@lseinc.com Matthew Sweeney Attorney at Law PO Box 7935 Tacoma, WA 98417-0935 Sweeneymatthew9@gmail.com Public and Legal Notice July 20, 2017: Notice of Application and Public Meeting and Hearing Notice was sent to property owners within a radius of 300 feet, but not less than two parcels deep, around the exterior boundaries of the subject property. The notice stated that comments would be accepted until August 17, 2016. July 25, 2017: Corrected Notice of Application and Public Meeting and Hearing Notice was sent to property owners within a radius of 300 feet, but not less than two parcels deep, around the exterior boundaries of the subject property. August 1, 2017: Public Notice sign was posted on the site, confirmed with an Affidavit of Posting. September 20, 2017: Legal notice was published in the official County newspaper (Tacoma News Tribune), advertising the South Hill Advisory Commission (SHAC) public meeting, and public hearing to be held by the Pierce County Hearing Examiner. September 26, 2017: Notice of public hearing postponement mailed to property owners within a 300-foot radius, but not less than 2 parcels deep, around the exterior subject property boundaries. September 26, 2017: Amended legal notice published in the official County newspaper (Tacoma News Tribune) postponing the public hearing before the Pierce County Examiner until further notice. Page 2 of 8

Findings of Fact 1. The Sunrise Master Plan, dating back to the early 1980s, is a well-designed and established master plan development being guided by regulations in place prior to 2001. 2. Development patterns and proposals must also meet the specific language as found in the Development Agreements signed by Sunrise and the County, the original of which was signed and recorded on November 15, 2001, and a subsequent revised agreement which was signed, and not yet recorded, in September of 2014. 3. The Emerald Ridge Preliminary Plat/Planned Development District was approved in March of 2005 allowing a mix of residential type uses totaling up to 635 dwelling units on approximately 100 acres. The reduction of 60 residential units results in a new total of 575 units. The site plan below shows the boundaries of the development and its internal roadway patterns, along with the wetlands and open space areas. The project is approximately 80% completed. 4. The Zoning Code being administered for development in Sunrise has an effective date of June 5, 2000. 5. The Emerald Ridge Development is covered by two main underlying zoning classifications, as approved through the development of Sunrise Master Plan. The western half of the development has a High Density Residential (HRD) and the eastern half of this rectangular community is zoned Mixed Use District (MUD). Both zones allow multi-family and commercial uses. Page 3 of 8

6. The Major Amendment request in this proposal is for a 3.3-acre parcel highlighted below in the southeastern corner of the development. The proposal is to construct a gas station and convenience store along with other commercial uses. Page 4 of 8

7. The 2016 Minor Amendment (application number 849705) transferred the remaining 20 multifamily units to a vacant parcel located in the southwest of the development. The receiving parcel, known as Lot 557, is shown below, and is currently vacant. While Lot 557 was originally approved for attached townhouses, a plat alteration in 2012 changed the designation of the parcel to future multi-family residential units. 8. A conceptual preliminary site plan for the subject site has been submitted with the application as depicted below. Page 5 of 8

Review Responsibility The following list includes jurisdictional areas for County departments and divisions involved in the review and administration of this proposal: A. Planning and Public Works (PPW): Current Planning verifies compliance with the Pierce County Comprehensive Plan, Mid-County Community Plan, and development regulations including zoning, critical areas, land divisions, design review, and potential environmental impacts. Development Engineering reviews for drainage, erosion control, site development, flood, survey, landslide and erosion hazard, lot dimensions, and road standards. Resource Management reviews for wetlands and critical fish and wildlife habitat. Cartography reviews road names and addresses. B. Transportation and Utilities: Transportation Services reviews for traffic. Sewer Utility Services reviews for sanitary sewer service. C. Fire Prevention Bureau reviews for emergency vehicle access and fire flow. D. Tacoma-Pierce County Health Department reviews for wastewater disposal and potable water. E. Assessor-Treasurer's Office reviews for tax segregation, depiction of record description, improvements, and property ownership. Review Criteria The following regulations and policies shall be used during the review process including, but not limited to: A. Pierce County Development Regulations, and Construction and Infrastructure Regulations. B. Pierce County Comprehensive Plan and Mid-County Community Plan. C. Applicable state statutes. D. All applicable notes on related previously recorded County documents. Agency and Public Review Comments The proposed project has been routed to interested departments and agencies for review. Comments from various departments and agencies may be found by accessing the online permit information referenced on page 1. Additional comments may be forthcoming. Written comments have not been received from the parties of record or reviewing agencies. Initial Planning and Public Works (PPW) Staff Review for Consistency with Land Use Policies and Regulations The Emerald Ridge Development was approved in 2005 (filed on October 4, 2002). The applicant purchased the property on July 15, 2011. Both, at the time of the application of this Plat/PDD and the purchase of the property by the current applicant, the 2001 Development Agreement was in effect. Subsequently, in September of 2014, a Revised Development Agreement was signed by the Sunrise Development representatives and the County. Staff finds that the applicant is subject to the provisions of the 2001 Development Agreement and not the subsequent one which was signed 13 years later and more than three years after the purchase of the parcel by the applicant. Page 6 of 8

Furthermore, staff also finds that the development restrictions and deviations/modifications within Emerald Ridge are subject to the 2005 Hearing Examiner decision. Additionally, Sunrise lacks significant commercial components as is normally necessary in an establishment of an all-inclusive master plan community. This proposal will be one step closer to meet such criteria. The revised Development Agreement (DA), signed in 2014, has the following language regarding modifications within the master plan. Staff finds that the current applicant is not subject to the provisions as the requirements came into effect both after the applicant s purchase of Emerald Ridge (and after having constructed the majority of the infrastructure and some of the dwellings) when the revised DA was signed. Staff Comment: As seen in the language above in the 2014 DA, Modifications by Other Owners would have to be approved by Sunrise. Staff finds that this provision came into effect after the purchase of Emerald Ridge and therefore is not relevant in this proposal. Furthermore, the Hearing Examiner, in an April 5, 2017 decision (Administrative Appeal application number 852522), confirmed that Emerald Ridge is subject to the provisions of the 2001 DA and not the provisions of the 2014 Restated Development Agreement (RDA). Section 18A.85.040.C.d (2) of the 2000 Development Regulations, under Minor Amendment, stated that Any proposal that results in a change of use must be permitted outright in the current zoning classification. The current major amendment application is consistent with this provision. Staff also finds that not only the MUD classification allows what the applicant is proposing, in a master plan and a self-contained Community, commercial uses are highly encouraged. While Sunrise has schools, recreational parcels, multi-family and a medical campus, to date no true commercial and retail establishment has occurred within the development even though well over 100 acres of the master plan has been designated for commercial purposes. The Sunrise Development Company still has ownership over the majority of the commercial parcels within the master plan, and the development of this 3.3 acres will not adversely impact future business and may even attract more similar uses. The introduction of commercial along the main arterial in the master plan will lead to residents and regional shoppers patronizing these establishments thus lessening the congestion on Meridian to the west. Page 7 of 8

The 3.3-acre parcel will be developed with the main anchor being a gas station with smaller supporting retail establishments. The project will be required to meet the landscaping and design guidelines as established by the Sunrise governing rules and the pre-2001 standards. Staff Comment: Staff further supports this change as a Major change because of the reduction of 60 overall residential units. The commercial uses proposed are allowed in the underlying zone. Per June 5, 2000, Zoning Code-Development Regulations: 18A.85.040 Amendments. C. Amendment Standards Use Permit. This Section is to provide the method for amending an approval to conditions imposed through a Use Permit or Preliminary Plat issued by the Examiner. 2. Major Amendments. a. Any modification exceeding any of the provisions of Section 18A.85.040 C.1.d. shall follow the same procedure required for the initial application. b. A finding that addresses the applicability of any specific conditions of approval for the original permit shall be required. c. Any modification that requires a discretionary permit other than the type granted for the initial application shall require the new permit type. Oakpointe at Sunrise PDD Phase 1 (aka Emerald Ridge) SR SHAC-CR Page 8 of 8