AGENDA PLANNING COMMISSION 6:00 PM - Wednesday, April 4, 2018 Council Chambers, 7th Floor, City Hall 1055 S. Grady Way

AGENDA PLANNING COMMISSION 6:00 PM - Wednesday, April 4, 2018 Council Chambers, 7th Floor, City Hall 1055 S. Grady Way 1. CALL TO ORDER 2. ROLL CALL 3. CORRESPONDENCE RECEIVED 4. AUDIENCE COMMENT Those wishing to address the Planning Commission must complete a "Request to Speak" form located next to the agendas at the back of the room and return it to the Recording Secretary. Speakers will be called upon by the Chair. Each speaker is allowed three (3) minutes. 5. COMMISSIONER COMMENTS 6. ADMINISTRATOR'S REPORT 7. CITY CENTER COMMUNITY PLAN TEXT AMENDMENT PUBLIC HEARING a) Staff Report 8. MULTI-FAMILY TAX EXEMPTION BRIEFING a) Staff Report 9. OPEN GOVERNMENT TRAINING 10. COMMISSIONER COMMENTS 11. ADJOURNMENT Hearing assistance devices for use in the Council Chambers are available upon request. For more information please visit planningcommission.rentonwa.gov Page 1 of 15

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AGENDA ITEM #7. a) CITY OF RENTON Community and Economic Development Department City Center Community Plan Amendment to Strategy 8.3 Staff: Angie Mathias Date: March 29, 2018 General Description: The City Center Community Plan strategy 8.3 seeks to create a greenway/promenade between the Cedar River and N 1 st Street. This has caused concern for residents in that area because the strategy required acquisition of private property. In response to this concern, the City developed an alternative concept that utilizes only property that is already in public ownership. This concept was supported by many members of the public, however there was a great deal of concern about the potential loss of the experience of walking along the river. The revised draft language works to address the concerns shared while keeping the keeping the language of the strategy at a high level. Details would be established if a park planning process is initiated. List of Exhibits: Redline Amendment of Strategy 8.3 Background The City Center Community Plan contains eight goals and numerous strategies to accomplish those goals. The City Center Community Plan Advisory Board is tasked with making recommendations to Council regarding which implementation strategies should be prioritized for inclusion in departmental work programs. The City Center Community Plan Advisory Board has made recommendations in 2013 and 2016. In 2017, the Board in response to a request from Council amended their recommendations to include working on revising the language of implementation strategy 8.3. The first work done on the revisions to the strategy was to amend the plan to state that eminent domain would not be used to further the goal. The final piece of this work is to revise implementation strategy 8.3 to reflect the revised concept for the greenway/promenade. The revised strategy calls for only utilizing property that is in public ownership. This includes converting the one block long Riverside Drive South from a two lane road to pedestrian pathway and drive aisle to provide access to the existing businesses. Riverside Drive North is envisioned to be reduced in width to become a shared roadway or woonerf. This also would provide additional greenspace. The consideration of the removal of the pathway along the river s edge raised a great deal of concern from many trail users. As shown on Exhibit 1, the revised implementation strategy language calls for balancing the goals of naturalizing the river corridor, improving recreational opportunities, increasing greenspace, and providing opportunities to experience the water. Identifying how all of these goals will be achieved would occur when the conceptual plan for the park and/or trail is developed. To date, this planning effort has not been prioritized or Page 1 of 2 Page 3 of 15

AGENDA ITEM #7. a) funded. After a conceptual plan is developed the next step would be to develop a detailed design. The revised language for this implementation strategy calls for providing public water access, connecting the pathway to the library, addressing safety and lighting concerns, integrating pedestrian and bicycle connections, and ensuring properties at North and South Riverside Drive can be accessed. Concerns about what the trail experience will be, pedestrian safety, where public access to the river occurs, etc. would be explored and identified in the planning effort associated with the development of a detailed plan. To date, this planning effort has also not been prioritized or funded. Staff Recommendation: Amend the City Center Community Plan implementation strategy 8.3, as shown in Exhibit 1, to reflect the revised concept for a greenway/promenade along the Cedar River. Impact Analysis Effect on rate of growth, development, and conversion of land as envisioned in the Plan The proposed amendment has no effect on the rate of growth, development, or conversion of land as envisioned in the Plan. Effect on the City s capacity to provide adequate public facilities The proposed amendment has no effect on the City s capacity to provide adequate public facilities. Effect on the rate of population and employment growth The proposed amendment has no effect on the rate of population and employment growth. Whether Plan objectives are being met as specified or remain valid and desirable The proposed amendment has no effect on Plan objectives. Effect on general land values or housing costs The proposed amendment has no effect on general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected There are no capital improvements or expenditures being made or completed in association with the proposed amendment. Consistency with GMA and Countywide Planning Policies The proposed amendment has no effect GMA or Countywide Planning Policies. Effect on critical areas and natural resource lands The proposed amendment has no effect on critical areas or natural resource lands. City Center Community Plan Amendment to Strategy 8.3 Page 2 of 2 March 29, 2018 Page 4 of 15

AGENDA ITEM #7. a) 8.3 Create a greenway/promenade along the Cedar River at North and/or South Riverside Drive. The greenway/promenade would provide additional greenspace for the City Center, improve access to the Cedar River, and provide potential restoration opportunities. 8.3.1: Complete an initial conceptual plan for a greenway/promenade along the Cedar River. Additional Details: The City should complete a conceptual plan for the greenway/promenade along the Cedar River. The conceptual plan should balance the goals of naturalizing the river corridor, improving recreational opportunities, increasing greenspace, and providing opportunities to experience the water. Permitting requirements, maintainability, and costs will also be considerations in conceptual design development. The design of the greenway/promenade should utilize existing publicly owned land and existing right-of-way at North and South Riverside Drive as shared roadways. It should also be coordinated with the planning and design of the Civic Node area, which includes Liberty Park, the KCLS Main Renton Library, the Renton History Museum, and the Cedar River (discussed in 3.1) as well as, the Parks, Recreation, and Natural Areas Plan. The City shall not utilize eminent domain in the furtherance of this policy. Responsible Party: Lead: Planning; Support: Community Services, Transportation Resources: $ Public Involvement: This initial phase would not involve a great deal of public engagement, and would focus on gathering information for the detailed design. The detailed design (discussed in 8.3.2) would involve the public. Timeframe: Short-term. Artist rendering of what North and South Riverside Drive(s) could look like. Page 5 of 15

AGENDA ITEM #7. a) 8.3.2: Complete a detailed design and implementation strategy for the greenway/promenade based on the conceptual design. Additional Details: Further refine the conceptual plan with ecological restoration goals, cost estimates, and implementation timelines. The detailed plan should also explore opportunities for providing public water access, connecting the pathway to the library, addressing safety and lighting concerns, integrating pedestrian and bicycle connections, and ensuring properties at North and South Riverside Drive can be accessed. Responsible Party: Lead: Transportation; Support: Community Services, Planning Resources: $$$ Public Involvement: The community should be engaged in the design of the greenway/promenade. The City should work closely with property owners, business owners, and residents. Timeframe: Mid-term. Page 6 of 15

CITY OF RENTON Community and Economic Development Department Multi-Family Tax Exemption Boundary Staff: Angie Mathias Date: April 2, 2018 Applicant or Requestor: Michael Sandorfy, RVA Cinema LLC General Description: The City has an adopted incentive that exempts multi-family housing from paying the property tax on the value of the housing portion of the improvements for eight or twelve years. This incentive, the Multi-Family Tax Exemption (MFTE), is only available in areas the City has designated as being eligible, currently Sunset and Downtown. Any new multi-family projects in these areas can receive waived taxes for eight years. If 20% of the units constructed are affordable housing units, the taxes can be waived for twelve years. The City has received a request to make this incentive available in an area that has not been designated. Additionally, this tax exemption is set to expire at the end of the year. The code needs to be amended to extend the expiration date. List of Exhibits Exhibit A Letter from Michael Sandorfy Exhibit B Map of MFTE Eligible Areas Background Extension to a New Area The City has utilized the Multi-Family Tax Exemption as an incentive for the construction of new multifamily housing since 2003. Initially there were three targeted areas, Downtown, Sunset, and South Lake Washington. In 2008, after having successfully incentivized the construction of over 1,000 units in the South Lake Washington area the code was amended to remove South Lake Washington as an eligible area. A table identifying the project, number of units, and targeted area is on the following page. In order to be eligible, projects must provide at minimum ten new units if it is in the R-14 or Residential Multi-Family (RMF) zone and at minimum thirty new units if it is in the Center Village (CV) or Center Downtown (CD) zone in both the Sunset and Downtown. Number of Market Rate Units Number of Affordable Units Start of Tax Exemption Project Name Targeted Area Merrill Gardens 154 0 Downtown 2008 Parkside at 95 Burnett 106 0 Downtown 2008 The Bristol II 195 0 South Lake Washington 2009 Chateau de Ville 50 0 Downtown 2009 Liberty Square 73 19 Downtown 2010 The Sanctuary 440 0 South Lake Washington 2010 The Reserve 440 0 South Lake Washington 2011 Page 1 of 4 Page 7 of 15

Harrington Square 217 0 Sunset 2012 The Lofts at 2 nd & Main 101 0 Downtown 2018 Total Units 1,776 19 Projects that utilize the tax exemption are only exempt from the portion of taxes that is charged for the residential improvements. Taxes for the land and non-housing related improvements (for example, commercial space) are not exempted. For the twelve year exemption projects must provide affordable housing to low and moderate incomes. Projects that will be renter occupied must provide 20% of its housing to low income residents, 80% or less of the Area Median Income (AMI). Projects that will be owner occupied must provide units at 120% of the AMI. The 2017 U.S. Department of Housing and Urban Development (HUD) income limits for a family of four at 80% of the AMI is $76,800. The standard is that people shouldn t spend more than 30% of their income on housing. So, a family of four earning $76,800 should not spend more than $1,920 on monthly rent. There are many different sources for identifying the average rent in Renton and none match. Below is a summary table that also shows the averages. The average for a 2 bedroom rental is $1,899. Just below what a family of four earning 80% of the AMI could afford. The different sources utilize different methodologies and different data sets. Rentcafe and Rent Jungle included rental homes and rental rooms in their averages. Apartment Guide appears to only average apartments in multi-family development. So, it may be that a family of four making 80% MI would be challenged to find rental units in apartments in Renton. 80% of the MI for one person is $53,760, they can afford $1,344 rent per month. A household of two people that earns $61,440 is at 80% AMI and can afford $1,536 monthly rent. Using the average of rents from the table below, the households of one could almost afford a studio, but not a one bedroom and the household of two could afford a studio and almost a one bedroom. Renton Average Rents All Source Rentals Studio 1 Bed 2 Bed 3 Bed Zillow $2,254 Rentcafe $1,594 $1,126 $1,423 $1,700 $2,016 Rent Jungle $1,658 $1,458 $1,735 Apartment Guide $1,628 $1,993 $2,267 $2,410 Trulia $2,400 $1,172 $1,895 $2,275 Average $1,977 $1,377 $1,512 $1,899 $2,234 Given that existing average rents in Renton appear to be close to the 80% AMI, perhaps it is appropriate to revise the affordability level to 60% or 70%. So, to qualify for the MFTE, projects would provide housing to people who have incomes that are 60% or 70% of the median income. This could potential create housing at an affordability level that is not being well accommodated in Renton. However, to date only one project has utilized the MFTE to have the tax emption for an additional four years by providing affordable housing, and that was to the 80% AMI. It is unclear if the market would provide MFTE Boundary Page 2 of 4 April 4, 2018 Page 8 of 15

housing affordable to people earning 60% or 70% AMI in order to have a tax exemption for a total twelve years. The requestor is in the process of permitting a 270 unit mixed use project at the site of the former Renton Cinema. The proposed project would serve as a Transit Oriented Development (TOD) when the primary functions of the Downtown transit center are relocated to the former Sound Ford site. The requestor has asked that their area be designated as eligible for the MFTE, but only for the 12 year exemption that requires construction of affordable housing units. If this project were to utilize the MFTE, they would provide 54 units of affordable housing units. The relocation of the transit center from Downtown to the former Sound Ford site is funded through the passage of Sound Transit 3. Sound Transit will construct a 700 stall parking garage. Bus routes will be routed through the transit station to maximize connections to other routes. The City is currently served by one Rapid Ride route that will serve the transit center. Route routes 169 and 240 will be converted to a RapideRide BRT lines improving service to Bellevue and Kent. They will both serve the transit center. This quickly creates an opportunity for the surrounding area to be developed with Transit Oriented Development (TOD). TOD s is high density mixed use development within ¼ to ½ miles of transit, typically a central transit stop. TOD s seek to capitalize on the density to increase transit ridership and reduce the need for automobile travel. Much of the existing land uses around the site of the future transit center is underutilized. Incentivizing new development within that area could help foster a TOD area in that vicinity. Such development could occur without allowing the MFTE to expand to the area. However, if the MFTE is extended some of those future projects could provide much needed affordable housing. It seems like an opportune time to try to incentivize such development. A potential City Center TOD MFTE eligible area is shown on Exhibit 2. Sunset Provision The MFTE has included a sunset provision since its initial adoption. This allows the City to consider whether or not the incentive is still needed. To date, only one project in the Sunset area has utilized the incentive and the area still is not being redeveloped with new multi-family housing by private parties. The Renton Housing Authority (RHA) actively is redeveloping many sites with multi-family housing, but the incentive is still needed to make new construction more attractive to for profit developers. The Downtown has five projects utilize the incentive to create a total of 503 new multifamily dwelling units, 19 of which are affordable. The Lofts at 2 nd and Main is the first project in Downtown in 8 years to use the incentive and Downtown has not reached the point at which private development is significant. Retaining the incentive in Downtown is also still needed. The sunset provision has historically been extended for three years. Staff Recommendation: Create a third eligible area for the MFTE incentive, the City Center TOD area. Renew the Sunset provision with a new three year extension to December 31, 2021. MFTE Boundary Page 3 of 4 April 4, 2018 Page 9 of 15

Impact Analysis Effect on rate of growth, development, and conversion of land as envisioned in the Plan The proposed amendment has no effect on the rate of growth, development, or conversion of land as envisioned in the Plan. In fact, it may incentivize growth as envisioned in the Plan. Effect on the City s capacity to provide adequate public facilities The collection of impact fees helps to ensure the City has the capacity to provide adequate public facilities needed by new residents and businesses. Effect on the rate of population and employment growth The proposed amendment has no effect on the rate of population and employment growth. Whether Plan objectives are being met as specified or remain valid and desirable The amendments would work to further the Comprehensive Plan goals and policies. Effect on general land values or housing costs The proposed amendment has no effect on general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected There are no capital improvements or expenditures being made or completed in association with the proposed amendment. Consistency with GMA and Countywide Planning Policies The proposed amendments and collection of the requested fire impact fee work to further the goals of the Growth Management Act and the CPP s. Effect on critical areas and natural resource lands The proposed amendment has no effect on critical areas or natural resource lands. MFTE Boundary Page 4 of 4 April 4, 2018 Page 10 of 15

RVA CINEMA LLC 520 PIKE STREET SUITE 1500 SEATTLE, WA 98101 206.682.6868 X 14 25 May 2017 Mr. Chip Vincent Administrator/Planning Director, City of Renton Department of Community and Economic Development 1055 South Grady Way Renton, WA 98057 RE: VIA 405 Apartment PUD Application 25 South Grady Way Request for Code Amendment Boundary Change to City of Renton Multifamily Tax Exemption Area Dear Mr. Vincent: RVA CINEMA LLC ( Applicant ) is the applicant for PPUD approval of a 270 unit, transit oriented apartment community. The 2.6 acre development site is a portion of the 24 acre Renton Village property. A minimum of 54 apartment units will be allocated to meet affordable standards, provided the targeted area for 12 year exemption is expanded to include the VIA 405 site. The Applicant submitted its PPUD application to City of Renton on April 24 th, 2017. The application was deemed complete on May 5 th. The Public Hearing is scheduled for July 18th. The Applicant hereby requests City of Renton approval for: 1) Code Amendment to include the development site and surrounding area in the City s Targeted Area for Multifamily Residential Tax Exemption ( MFTE ). 2) 12 year MFTE exemption status History and Justification for Request The State of Washington and City of Renton each have adopted code requirements for MFTE status (RCW 84.14, sub-chapters and RMC 4-1-220). The VIA 405 PUD application currently under consideration at City of Renton proposes to develop the 2.6 acre site and this site meets the stated purposes of both adopted codes for inclusion Page 11 of 15

24 May 17 Mr. Chip Vincent Page 2 of 4 in the targeted MFTE area. Both codes encourage and facilitate new multifamily residential development with MFTE when: Affordable residential opportunities are constrained. Overall, multifamily residential vacancy in Renton is currently less than 5%. Within the Urban Area where VIA 405 apartments can be constructed, overall apartment vacancy is less than 4% and the vacancy rate for affordable units is even less. Supply is constrained and demand is growing. Pinnacle and Greystar, our region s largest apartment management firms estimate over 90% of new multi-family construction in Seattle, Bellevue and surrounding municipalities are being constructed with MFTE. New construction of affordable housing in Renton is also constrained by continually rising construction costs. Labor costs throughout the Puget Sound area are escalating at a much faster pace than rents for affordable and market rate units. VIA 405 can add 54 new affordable rate units to City of Renton s affordable inventory. The cost to construct the 54 affordable rate units within this project will approximate $13,500,000 and will greatly exceed the value of tax credits received. Job growth in Renton is accelerating and quickly creating more demand for market rate and affordable apartment units. VIA 405 will provide much needed new housing in close proximity to job growth sectors, particularly health care and technology. VIA 405 can provide 54 units or more of new affordable housing in close proximity to these job growth sectors. The VIA 405 proposal will also bring a major land use improvement to one of Renton s primary entries, South Grady Way. New multifamily residential opportunities abut public transportation centers ( Transit Oriented Development ( TOD )). The VIA 405 apartment site is adjacent to the South Renton Transit Center, a Bus Rapid Transit ( BRT) center recently voter approved under Sound Transit 3 ( ST3 ). This new 8.3 acre BRT facility will be a strategic link along Interstate 405 connecting Renton with Seattle Tacoma International Airport, Bellevue and Seattle. A landscaped, dedicated pedestrian walkway, alleviating daily vehicle use, will directly link VIA 405 apartments with the new transit center. New multifamily construction will utilize existing infrastructure including utilities, roads, and open spaces. The development site is currently served by both dry (electric/gas) and wet (waterdomestic and fire) utilities sufficient to serve the proposed apartment community. Minor underground utility revisions will occur only in the immediate area of the proposed building, away from existing public arterials. There will be no requirement for new roadway development. Traffic studies required by the City s PPUD have been submitted and indicate existing roads are adequate to serve VIA 405. Page 12 of 15

24 May 17 Mr. Chip Vincent Page 3 of 4 Freeway access to Via 405 Apartments is convenient. interchanges are each within ¼ mile of VIA 405 Apartments. The I-405/SR-167 and I-405/Talbot Road New multifamily construction will alleviate congestion in urban areas. When complete, South Renton Transit Center/BRT service and VIA 405 Apartments form a cooperative relationship moderating daily vehicle counts on lower capacity City streets. New multifamily construction complements existing retail and office uses. VIA 405 residents will enjoy walkable access to restaurants, banking, grocery, pharmacy and personal services at Renton Village Shopping Center. Walking access also exists to nearly 500,000 square feet of office space including The Evergreen Building and Triton Towers office complex. Development of VIA 405 will increase City of Renton retail sales tax revenue. Underutilized sites contribute to residential housing opportunities. The development site is an excellent example of underutilization. The current cinema building is functionally obsolete. Development of an apartment community at the site is the highest and best use and contributes to residential opportunities envisioned by State of Washington under its Multifamily Tax Exemption program. Office use of the development site is not feasible in the foreseeable future. Nearly 600,000 SF of office space are currently available in close proximity to the VIA 405 site. Another 750,000 square feet of office space are under construction at Southport. Vision Renton Village, including the VIA 405 site, is a 24 acre site. VIA 405 represents the beginning of a longer term development plan that can incorporate retail re-development, residential uses including senior housing, market rate and affordable apartment units, and limited office uses. A master planned community envisioned for the Renton Village urban area can be facilitated with the tax exemption program. The Landing on the north end of Renton s urban center is a prime example of how State and City have employed the tax exemption program to enhance the quality of affordable multifamily residential and retail opportunities. Summary Page 13 of 15

24 May 17 Mr. Chip Vincent Page 4 of 4 The proposal for VIA 405 apartments meets and exceeds the stated purposes of City of Renton and State of Washington codes for inclusion in the Multifamily Tax Exemption program. Development of VIA 405 Apartments will: Add a minimum of 54 units of affordable housing to City of Renton s affordable housing inventory, Cluster high density residential use in immediate proximity to public transit (Transit Oriented Development), Minimize the need for City improvement of public utilities and roads, Complement existing retail, office and public open space land uses, Reduce vehicular congestion in Renton s urban core We therefore request the City s approval for code amendment to extend the MFTE targeted area boundary to the VIA 405 site and for the 12 year exemption. Please let us know if further information will assist the City s decision process. Respectfully Yours, RVA CINEMA LLC a Washington limited liability company By: SMG CINEMA LLC, a Washington limited liability company, Its Manager By: Michael Sandorffy, Manager Page 14 of 15

Greenway Eligible Areas for Multifamily Housing Incentives Was N B lvd ton hing 405 NE 16th St Sunset Gene Coulon Memorial Beach Park NE 12th St NE Monroe Ave NE s use r Wa y By pas NE 2nd St N Sun s et B lvd S y Wa Cedar River Park ey Main Ave S Wells Ave S Bu rnett Ave S rd St ll Va Sha ttuck Ave S Garden Ave N Ho Logan Ave S Rainier Ave S e Ave SW NE 3 NE 4th St e Hardi N 3rd St DowntownHouser Pl Windsor Hills Park l ap S 4th th St ay N on W ns o 405 Br Liberty Park S 3rd St S 4th St NE 7 M Pl Wells Ave N Senior Center Williams Ave S Taylor Ave NW NW W i lliams Ave N Pl r r Rive Ceda Ave N lor L og an Ave N er Raini Tay S 2nd St 10th S t Highlands Park 405 N 4th St Airport Way S 3rd N 6th St Park Ave N N 8th St NE Blvd yn Sunse t N r Wa Lo g se Hou N Av e en Av l hp 10t N 10t h St den Gar an Dr Edmonds Ave NE ar k NE P Monroe Ave N E AberdeenAve NE La ke Lake Washington Exhibit B Hw y V U 169 Cedar River Natural Area Riverview Park Maplewood Park S 7th St SG y rad Wa y V U 167 Talbot Rd S City Center 405 TOD Way Philip Arnold Park Sunset Eligible Area Downtown Eligible Area Proposed City Center TOD Eligible Area Parks & Open Space City Limits 0 750 1,500 2,250 Page 15 of Feet 15 Source: City of Renton, 2018