PLANNING COMMISSION SPECIAL MEETING AGENDA

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City of Mercer Island Wednesday, June 13, 2012 PLANNING COMMISSIONERS Bryan Cairns Adam Cooper Jon Friedman Steve Marshall Craig Olson Kristen Orndorff Richard Weinman COUNCIL LIAISON Debbie Bertlin PLANNING COMMISSION SPECIAL MEETING AGENDA CALL TO ORDER & 7:00 PM (Mercer Island City Hall) ROLL CALL APPEARANCES This is the time set aside for members of the public to speak to the Commission about issues of concern. If you wish to speak, please consider the following points: Speak audibly into the podium microphone State your name and address for the record Limit your comments to three minutes The Commission may limit the number of speakers and modify the time allotted. Total time for appearances: 15 minutes APPROVAL OF MINUTES Minutes from May 16, 2012 REGULAR BUSINESS 7:15 PM Agenda Item #1: Work Session on Zoning Code Text Amendment (ZTR12-001) Ground floor use in the Town Center Zone Work session with the Planning Commission and interested Town Center parties to discuss proposed modifications to the regulations pertaining to the use of building space adjacent to street frontage on the ground floor of buildings within the Town Center zone. This work session is a continuation of the Open Record Public Hearing from May 2, 2012 and May 16, 2012 OTHER BUSINESS Council Liaison Report Staff Comments Planned Absences for Future Meetings Announcements & Communications Next Regular Meeting: June 20, 2012 CITY COUNCIL CHAMBERS MERCER ISLAND CITY HALL 9611 SE 36TH STREET MERCER ISLAND, WA 98040 ADJOURN AGENDA TIMES ARE APPROXIMATE PHONE: 206-275-7605 WEB: www.mercergov.org

PLANNING COMMISSION MEETING MINUTES MAY 16, 2012 CALL TO ORDER: Chair Adam Cooper called the meeting to order at 7:07 PM in the Council Chambers at 9611 SE 36th Street, Mercer Island, Washington. ROLL CALL: Chair Adam Cooper, Vice-Chair Jon Friedman, Commissioners Bryan Cairns, Steve Marshall, Kristin Orndorff, and Richard Weinman were present, as was Council Liaison Debbie Bertlin. Commissioner Craig Olson arrived at 7:30 PM. City staff was represented by Katie Knight, City Attorney; George Steirer, Principal Planner; and Shana Crick, Planner. APPEARANCES: No members of the public requested to speak. MINUTES: Commissioner Cairns motioned to approve the minutes from May 2, 2012. Commissioner Marshall seconded the motion. The Commission unanimously approved the minutes. REGULAR BUSINESS: Agenda Item #1: Ground Floor Use in the Town Center This agenda item was continued from the May 2, 2012 Planning Commission meeting. Principal Planner, George Steirer, gave the staff presentation and responded to questions from the Commission. Rich Conrad, the City Manager, addressed the Planning Commission and summarized the history of the 60/40 rule that regulates the use of ground floor space in the Town Center zone. Mr. Conrad also responded to questions from the Planning Commission. Chair Cooper requested that Councilmember Bertlin clarify the direction given to the Planning Commission from the City Council regarding parking incentives. Chair Cooper asked for public testimony at 7:37 PM. Terry Moreman, the Director of the Mercer Island Chamber of Commerce (3628 72 nd Place Mercer Island, WA) addressed the Planning Commission. Ms. Moreman provided staff with a letter signed by Roger Page of Island Books; Diane Larson of Mercer Island Florist; Michele Tesler of Tatters; Kay Hirai of Studio 904; Dawn Wilkinson of Six Walls; and Richard Benjamin of Island Crust Café. John Houlihan Jr. of Houlihan Law (3401 Evanston Ave N, Ste. C Seattle, WA), attorney representing James Cassan, spoke to the Planning Commission. The Planning Commission asked questions of Mr. Houlihan. S:\DSG\Planning\Planning Commission\Minutes\2012\05-16-12.doc Page 1 of 2

Doug Wolf of SECO Development (7785 Sunset Highway Mercer Island, WA) addressed the Planning Commission and responded to questions from the Commissioners. The Planning Commission further discussed the 60/40 rule and asked City Manager Conrad whether the Planning Commission could convene an ad hoc committee. The City Manager stated that the Planning Commission could either request that City Council create a new ad hoc committee or that the Planning Commission could create one. The Planning Commission requested to hold a work session to have an open dialogue with local business owners about the 60/40 rule and potential parking incentives. The date of the work session was set for June 13, 2012. The open record public hearing is held open for the June 13, 2012 Planning Commission work session. Agenda Item #2: No Net Loss Requirement in the Town Center Zone Agenda item #2 was postponed until resolution of Planning Commission Agenda Item #1. COUNCIL LIAISON REPORT: None STAFF COMMENTS: None PLANNED ABSENCES FOR FUTURE MEETINGS: Commissioner Marshall cannot make the June 6, 2012 or June 20, 2012 meetings. ANNOUNCEMENTS AND COMMUNICATIONS: None NEXT REGULAR MEETING: The next Planning Commission meeting is scheduled for June 6, 2012. ADJOURNMENT: The Planning Commission meeting was adjourned at 9:37 PM. Respectfully submitted by Shana Crick, Planner S:\DSG\Planning\Planning Commission\Minutes\2012\05-16-12.doc Page 2 of 2

Memorandum To: Planning Commission and Council Member Bertlin From: George Steirer, Principal Planner Subject: Agenda Item 1 Work Session on Retail Mix Ordinance Date: June 7, 2012 for the June 13, 2012 Planning Commission Meeting Exhibits: 1. Comparison of Ground Floor Use Regulations for Other Jurisdictions Background: The City Council has requested the Planning Commission consider changes to the existing regulations governing the ground floor retail mix in the Town Center (the 40/60 rule ). At the May 16, 2012 meeting, the Planning Commission requested a work session to further explore potential changes to the 40/60 rule. The June 13, 2012 work session is a continuation of a public hearing that was initially opened on April 18, 2012 and continued through the May 23, 2012 meeting. The Planning Commission s stated intent for the June 13 th meeting was to have an open dialogue with interested Town Center business owners, with the intent of weighing possible incentives for relaxing the 40/60 rule in exchange for some type of public parking. Terry Moreman, Executive Director of the Chamber of Commerce, has agreed to contact Town Center business owners about the meeting. Additionally, staff has been keeping a list of interested parties that have either testified in front of City Council, the Planning Commission, or have requested to be notified. At the May 23, 2012 meeting, the Planning Commission requested that staff provide a comparison of ground floor use requirements within other jurisdictions. A table of the requirements for Kirkland, Olympia, and Vancouver, Washington is included as Exhibit 1. Scope of Work Session: The purpose of the work session is to: 1. Examine other public parking incentives that may be available; and 2. Discuss which incentives are most favorable to city businesses and property owners. Amendments to the no net loss provision will be addressed after the Planning Commission completes their deliberation of the 40/60 rule. Planning Commission Action: Take public testimony during the June 13, 2012 work session, and consider alternatives leading to a motion for a recommendation to City Council. Recommended Motion: Move to recommend Exhibit 2 [or Exhibit 1] of the May 16, 2012 staff memorandum regarding the retail mix requirements to the City Council for adoption. 1 of 2

Alternative Recommended Motion 1: Move to recommend Exhibit 2 [or Exhibit 1] of the May 16, 2012 staff memorandum regarding the retail mix requirements to the City Council for adoption, provided that the City Council establishes the obligations for a public parking component. Alternative Recommended Motion 2: Move to recommend Exhibit 2 [or Exhibit 1] of the May 16, 2012 staff memorandum regarding the retail mix requirements to the City Council for adoption, provided that Exhibit 2 [or Exhibit 1] shall be modified as follows: [describe modifications]. Alternative Recommended Motion 3: Move to recommend Exhibit 2 [or Exhibit 1] of the May 16, 2012 staff memorandum regarding the retail mix requirements to the City Council for adoption, provided that the City Council establishes the obligations for a public parking component and that Exhibit 2 [or Exhibit 1] shall be modified as follows: [describe modifications]. 2 of 2

ZONE SUBZONE(S) APPLICABLE REGULATIONS ZONING CODE TEXT Community Business BC, BC1, BC2, 45.08(3) and 47.08(5) 75% of the area of the ground floor must contain retail establishments, restaurants, taverns, and BCX hotels or motels, or offices. Neighborhood Business Central Business Juanita Business Market Street Corridor KIRKLAND BN and BNA 40.08(4) and 40.10.090(3) 75% of the area of the ground floor must contain retail establishments, restaurants, taverns, hotels or motels, or offices. CBD 1A and CBD 50.10(3) The street level is limited to retail, restaurant or tavern; banking and financial services; 1B entertainment, cultural and/or recreational facility, parks, government facility, or community facility. The street level of buildings south of 2nd Ave S may also include Office Use. JBD 1 52.12.120(9) Restaurants, taverns, and retail establishments should be the predominant use on the ground floor. MSC 2 51.18(4) 75% of the area of the ground floor must contain retail establishments, restaurants, taverns, or offices MSC 3 51.28(4) 75% of the area of the ground floor must contain retail establishments, restaurants, taverns, hotels or motels, or offices. North Rose Hill NRH 6 54.42.010(1) and 54.42.020(1) Office is permitted only on the ground floor. Professional Office PO 27.10.040 Grocery Store, Drug Store, Laundromat, Dry Cleaners, Barber Shop, or Shoe Repair Shop must be located on the ground floor. 27.10.050 Retail Establishment providing banking or related financial service must be located on the ground floor. Professional Office PR 25.10.060 Grocery Store, Drug Store, Laundromat, Dry Cleaners, Barber Shop, or Shoe Repair Shop must Residential be located on the ground floor. PRA 25.10.060 Grocery Store, Drug Store, Laundromat, Dry Cleaners, Barber Shop, or Shoe Repair Shop must be located on the ground floor. Rose Hill Business Yarrow Bay Business RH 1A, RH 2A, RH 3, RH 5A, RH 5B, and RH 7 53.04(3), 53.22(4), 53.32(4), 53.52(6), and 53.72(4) 50% of the area of the ground floor must contain retail establishments, restaurants, taverns, hotels or motels. YBD 1 56.10.010(5) 50% of the area of the linear frontage of the ground floor along NE 38th Place must contain one or more of the following uses: Retail uses selling goods or providing services, including restaurants or taverns; banking and related financial services; school, day care or mini school or mini day care center; government facility; community facility; and retail establishments providing entertainment, cultural and/or recreational activities.

Totem Lake TL 4A, 4B, 4C 55.31(4) 50% of the area of the ground floor must contain retail establishments, restaurants, taverns, hotels or motels. except for structures containing a government facility use in the TL 4B zone. 55.33.100(3) No more than 10 percent of the ground floor of a structure may contain residential use. 55.33.130(1) Assisted Living Facility, Convalescent Center, Nursing Home may not occupy more than 10 percent of the ground floor. TL 5 55.37(5) 30% of the area of the ground floor must contain retail establishments, restaurants, taverns, hotels or motels. Ground floor spaces in structures with frontage on a pedestrian or vehicular route, or adjacent to a pedestrian oriented space, must contain retail establishments, restaurants or taverns. 55.39.110(1) No more than 10 percent of the ground floor may contain residential use. 55.39.140(1) Assisted Living Facility, Convalescent Center, Nursing Home may not occupy more than 10 percent of the ground floor. TL 6B 55.43(4) 50% of the area of the ground floor with frontage on a pedestrian or vehicular route, or adjacent to a pedestrian oriented space, must contain retail establishments, restaurants, taverns, hotels or motels. This does not apply to parcels located more than 500 feet north of NE 124th St, east of 116th Ave NE. 55.45.150(2) Assisted Living Facility, Convalescent Center, Nursing Home may not occupy more than 10 percent of the ground floor. TL 8 55.55(2) Ground floor uses on the two westernmost parcels in this zone with frontage on 120th Avenue NE must contain retail, restaurants, and/or taverns. TL 10C 55.81.070(1)(c) A retail establishment providing banking and related financial services that is accessory to a primary use shall not exceed 50 percent of the ground floor area of the building. TL 10D 55.87.070(1)(d) A retail establishment providing banking and related financial services that is accessory to a primary use shall not exceed 50 percent of the ground floor area of the building. 55.87.140(1)(c) A restaurant or tavern that is accessory to a primary use shall not exceed 50 percent of the ground floor area of the building. TL 10E 55.93.060(1)(c) A retail establishment providing banking and related financial services that is accessory to a primary use shall not exceed 50 percent of the ground floor area of the building.

OLYMPIA DISTRICT SUB DISTRICT APPLICABLE REGULATIONS ZONING CODE TEXT Villages and Centers Neighborhood Village, Urban Village, Community Oriented Shopping Center, and Neighborhood Center 18.05.050(C)(3) 60% of the ground floor street frontage of the non residential buildings fronting on a village or center green, park, or plaza shall be occupied by retail uses or professional or personal services. Single family residences are allowed in all of the subdistricts. Non mixed use apartments are also permitted in the Neighborhood Village, Urban Village, and Community Oriented Shopping Center subdistricts. Non mixed use apartments are allowed as a conditional use in the Neighborhood Center subdistrict.the ground floor requirement does not apply to residential structures. ZONE SUBZONE(S) APPLICABLE REGULATIONS ZONING CODE TEXT R 18, R 22, R 30, 20.430.060(B)(2)(b)(1) and R 35 Higher Density Residential s Commercial and Mixed Use s CN: Neighborhood Commercial, CC: Community Commercial, CG: General Commercial, and MX: Mixed Use 20.430.060(B)(2)(c) 20.430.060(B)(2)(b)(1) 20.430.060(B)(2)(c) VANCOUVER A minimum of 50% of the lineal street front of the ground floor of mixed use buildings along arterial or collector streets shall be devoted to commercial or office uses. Parking garages devoted in whole or part to commercial or office uses may be counted towards this requirement, but surface parking may not. Mixed use buildings along lesser classification streets shall not face this requirement. Within residential zones, additional non residential uses beyond the minimum street front requirement are allowed, provided residential uses comprise at least 50% of the total building square footage. Within non residential zones, there are no additional mixing requirements beyond ground floor requirements. A minimum of 50% of the lineal street front of the ground floor of mixed use buildings along arterial or collector streets shall be devoted to commercial or office uses. Parking garages devoted in whole or part to commercial or office uses may be counted towards this requirement, but surface parking may not. Mixed use buildings along lesser classification streets shall not face this requirement. Within residential zones, additional non residential uses beyond the minimum street front requirement are allowed, provided residential uses comprise at least 50% of the total building square footage. Within non residential zones, there are no additional mixing requirements beyond ground floor requirements.