To: Honorable City Council Date: July 6, 2010

Exhibit 138 CITY OF WOODINVILLE, WA REPORT TO THE CITY COUNCIL 17301 133 rd Avenue NE, Woodinville, WA 98072 WWW.CI.WOODINVILLE.WA.U5 To: Honorable City Council Date: July 6, 2010 From: Richard A. Leahy, City Manager By: Hal H. Hart, Development Services Director -\4~ Subject: 2009 Annual Docket Downtown Zoning Code/Map Amendments Continued Public Hearing Ordinance No. 489 ISSUE: Shall the City Council open the continued public hearing for Ordinance No. 489 to adopt amendments to the Downtown Zoning Code and Zoning Map as part of the 2009 Annual Docket? RECOMMENDATION: To open the continued public hearing for Ordinance No. 489, receive additional information, and direct staff to make changes, as directed by Council, to the Ordinance prior to first reading. BACKGROUND/DISCUSSION: On June 15, 2010, the City Council opened the continued public hearing for Ordinance No. 489 to enact Zoning Code and Zoning Map Amendments to implement the Downtown/Little Bear Creek Corridor Master Plan regarding multi-storied mixed-use development in the Central Business District and General Business District zones. The City Council continued the public hearing to July 6, 2010 to further discuss possible amendment topics and to allow additional opportunity for the public to comment. On June 15, 2010, the City Council also discussed possible unintended impacts of Ordinance No. 504 that established interim development regulations for the CBD and GB zones; and agreed to identify any additional issues for discussion. The purpose of tonight's meeting is to confirm the Council's intentions regarding interim regulations established by Ordinance No. 504; and to establish a consolidated Issues List for Ordinance No. 489. Included as Attachment 2, is a Revised "issues scorecard" for Ordinance No. 489, that incorporates additional issues raised by Councilmembers since the June 15, 2010 Council Meeting. ALTERNATIVES: 1. Open the continued public hearing, receive additional information, and continue the hearing to July 20, 2010 at 7:00 PM; 2. Open and conclude the continued public hearing, and direct staff to revise Ordinance No. 489 consistent with Council direction. 3. Open and conclude the continued public hearing, pass first reading of Ordinance No. 489 as presented in Exhibit 3, and place it on the next available agenda for second reading and adoption. RECOMMENDED MOTIONS: 1. I MOVE TO OPEN THE CONTINUED PUBLIC HEARING ON DOWNTOWN ZONING CODE AND MAP AMENDMENTS, ORDINANCE NO. 489. 2. I MOVE TO RE-OPEN THE PUBLIC TESTIMONY PORTION OF THE PUBLIC HEARING FOR ORDINANCE NO. 489. (Receive Staff Report and then public comments) I:\Council, Boards & Commissions\City Council\StatT Reports\20 1OVuly\7-06-20 lo\final Continued PH Ord 489 Downtown Dev Regs Report.doc 1

Exhibit 138 3. I MOVE THAT THE COUNCIL CLOSE THE PUBLIC TESTIMONY PORTION OF THE PUBLIC HEARING. 4. If the Council desires to amend Ordinance No. 504 establishing Interim Development Regulations for the CBD and GB Districts, regarding restrictions on the maximum size,ofbuildings; the following MOTION is recommended: I MOVE THAT THE CITY COUNCIL WAIVE PROVISIONS OF RESOLUTION NO. 50, PASS FIRST AND SECOND READING, AND ADOPT ORDINANCE NO. 505 TO AMEND ORDINANCE NO. 504, SECTION 21.12.040B(21) ESTABLISHING THAT THE GROSS SQUARE FOOTAGE LIMITS DO NOT APPLY TO DETACHED BUILDINGS USED EXCLUSIVELY FOR WAREHOUSING, SHIPPING, RECEIVING OR PROCESSING OF PRODUCT SOLD OUTSIDE OF THE BUILDING WHERE THE PRODUCT IS PROCESSED OR STORED, AS PRESENTED. 5. I MOVE TO CONTINUE THE PUBLIC HEARING FOR ORDINANCE 489 TO JULY 20, 2010 IN THE WOODINVILLE CITY HALL COUNCIL CHAMBERS AT 7 PM OR AS SOON THEREAFTER AS MAY BE HEARD. Attachment 1: Ordinance No. 505 - Amendment to Interim Ordinance No. 504 Attachment 2: Ordinance 489 Downtown Development Standards Issues List - Summary of Actions to Date 2 1:\Council, Boards & Commissions\City Council\StaffReports\2010Vuly\7 06-2010\FTNAL Continued PH Ord 489 Downtown Dev Regs Report.doc

Attachment 1 ORDINANCE NO. 505 AN ORDINANCE OF THE CITY OF WOODINVILLE, WASHINGTON, AMENDING INTERIM ZONING CODE AMENDMENTS RELATING TO THE GENERAL BUSINESS (GB) AND CENTRAL BUSINESS (CBD) ZONING DISTRICTS; REGARDING THE MAXIMUM GROSS SQUARE FOOTAGE OF ANY RETAIL ESTABLISHMENT IN THE GB AND CBD ZONING DISTRICTS; SETTING A PUBLIC HEARING FOR AUGUST 3, 2010, IN ORDER TO TAKE PUBLIC TESTIMONY REGARDING THE INTERIM ZONING CODE AMENDMENTS; PROVIDING FOR SEVERABILITY, EXPIRATION AND AN EFFECTIVE DATE. WHEREAS, on June 8, 2010 the Woodinville City Council adopted Ordinance No. 504 to establish interim regulations for development of properties in the Central Business District and General Business District Zones; and WHEREAS, Ordinance No. 504 placed unintentional restrictions on the size of certain retail buildings and businesses; and WHEREAS, the City Council intends to correct those unintended restrictions; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WOODINVILLE, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Findings. The City Council hereby finds: 1. Findings 1-9 contained in Ordinance No. 504 are hereby adopted. 2. The WHEREAS clauses above are herein incorporated as Findings. 3. The City Council held first and second reading of Ordinance No. 505 on July 6, 2010, and has determined that adoption of this ordinance is necessary for the public benefit. Section 2. Maximum Building Gross Square Footage. Section 21.12.040B(21) is hereby amended to read as follows: U(21) In the Design Districts pursuant to WMC 21.14.312 and in the CBD zoned area west of the Sammamish River hereby designated as the Old Town District, no retail establishment, whether in a single building or combination of buildings, shall exceed the gross square footage (GSF) in the aggregate as follows: (a) Little Bear Creek Corridor Design District retail GSF limit: 80,000 square feet (b) Civic/Gateway Design District retail GSF limit: 25,000 square feet (c) Pedestrian Core Design District retail GSF limit: 30,000 square feet (d) East Frame Design District retail GSF limit: 150,000 square feet (e) Transition Area Design District retail GSF limit: 45,000 square feet (f) Old Town District retail GSF limit: 35,000 square feet The GSF of adjacent stores shall be aggregated in cases where the stores: (1) are engaged in the selling of similar or related goods, wares, or merchandise and operate under common ownership or management; (2) share checkout stands, a warehouse, or a distribution facilities; or (3) otherwise operate as associated, integrated or co-operative business enterprises. The GSF for a multi-building, single-retailer establishment shall not include the square footage of detached buildings used exclusively for warehousing, shipping, receiving or processing of product sold outside of the building where the product is processed or stored." I:\Council, Boards & Commissions\City Council\Staff Reports\201 OVuly\7-06-201 O\FINAL Continued PH Ord 489 Downtown Dev Regs Report.doc 3

Attachment 1 Section 3. Public Hearing. Pursuant to RCW 36.70A.390 and RCW 35A.63.220, the City Council shall hold a public hearing on August 3, 2010, at 7:00 p.m. or as soon thereafter as the matter may be heard in order to take public testimony on Ordinance No. 504 and Ordinance No. 505 regarding the interim amendments adopted by these ordinances. The City Council may, in its discretion, adopt additional findings justifying the interim amendments after the close of the hearing. Section 4. Severability. Should any section, paragraph, sentence, clause, or phrase of this ordinance be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this ordinance. Provided, however, that if any section, sentence, clause, or phrase of this ordinance, or any change in a land use designation is held to be invalid by a court of competent jurisdiction, or by the Growth Management Hearings Board, then the section, sentence, clause, phrase, or land use designation in effect prior to the effective date of this ordinance, shall be in full force and effect for that invalidated section, sentence, clause, phrase, or land use designation, as if this ordinance had never been adopted. Section 5. Copy to Commerce Department. Pursuant to RCW 36. 70A.1 06(3), the City Clerk is directed to send a copy of this ordinance to the State Department of Commerce for its files within ten (10) days after adoption of this ordinance. Section 6. Effective Period for Amendments. The interim Zoning Code amendments adopted by this ordinance shall automatically expire upon the expiration of Ordinance No. 504, unless the same are extended as provided in RCW 36.70A.390 and RCW 35A.63.220 prior to that date, or unless the same are repealed or superseded by permanent amendments prior to that date. Section 9. Effective Date. The adoption of this ordinance, which is a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five (5) days after the date of publication. ADOPTED BY THE CITY COUNCIL AND SIGNED IN AUTHENTICATION OF ITS PASSAGE THIS 6 th DAY OF JULY 2010. ATTEST/AUTHENTICATED: Charles E. Price, Mayor Jennifer Kuhn, City ClerklCMC APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Greg A. Rubstello, City Attorney 4 I:\Council, Boards & Commissions\City Council\Staff Reports\201 OVuly\7-06-201 O\FfNAL Continued PH Ord 489 Downtown Dev Regs Report.doc

Ord No. 489 D t D I t St dards I List - Issue Date DescriptionlProposal/Alternative Outcome 1. Building Hei~ht Limits la May 18 Retain the existing building height limit, a 35 foot base height and 45 feet with incentives, in all design districts. Failed, no second Ib May 18 Accept the Planning Commission's recommendation for building heights to a 39 foot base, 54 feet with incentives Failed, 3-4-0 and 57 feet with parking structure in the CBD zone and 60 feet with parking structure in the GB zone (Alternative 2A). lc May 18 Retain the building heights in the existing code in the CBD, 35 foot base and 45 feet with incentives, and raise Failed, 2-5-0 building heights to the limits proposed by the Planning Commission in the GB zone, 39 foot base, 54 feet with incentives and 60 feet with parking structure. Id May 18 Accept the Planning Commission's recommendation of a 60 foot maximum building height with parking structure Passed, 5-2-0 in the Little Bear Creek Design District, GB zone. Ie May 18 Adopt building heights in the East Frame Design District of a 39 foot base, 54 feet with incentives and 60 feet with Passed, 4-3-0 parking structure. If May 18 Retain the current building height limits, 35 foot base and 45 feet with incentives, in the Transition District. Failed, 3-4-0 Ig May 18 Adopt a 35 foot base and a 45 foot maximum building height in the Pedestrian Core rather than 57 feet as Failed, 2-5-0 proposed by the Planning Commission. Ih May 18 Adopt the existing building height limits in the Old Town District, 35 foot base and 45 foot maximum with Failed, 3-4-0 incentives, and establish a maximum building size of35,000 gross square feet. Ii May 18 Adopt the Planning Commission recommendation for building height in the Old Town District, 39 foot base, 54 Passed,4-3-0 feet with incentives and 57 feet with parking structure and a maximum building size of 35,000 gross square feet. 2. Desi~ Districts 2a May 18 Extend the Transition Area Design District west from 140 Ul to the King County Ord. No. 8144 alignment and keep Passed, 4-3-0 the East Frame west ofthe King County Ord. No. 8144 south ofne 175 th Street as proposed by the Planning Commission, except retain the Molbaks parcels east ofthe King County Ord. No. 8144 alignment in the East Frame Design District (motion restated and amended) 2b 2c June 1 Establish a new design district called the "Agritourism District" Establish a new Design District (or Overlay) called "Wine Country Gateway" that includes that portion ofthe currently proposed East Frame Design District south ofne I 75 th Street and west of14d h Avenue NE. / Failed, no second 3. Building Heights IncentiveslPrescription 3a May 18 Remove street clock/clock tower as an incentive. Consensus 3b May 18 Require 2 or more incentives to achieve 4 floors Consensus 3c 3rd Floor Incentives: Standard Design Requirements 4 th Floor Incentives, Standard Design Requirements plus public open space and at least two ofthe following: Exceptional Design (subject to criteria) Affordable housing (if selected, establish percentage ofconstructed units required to qualify) LEED Certification (pursuant to U.S. Building Council rating system) Structured Parking Private Open space Renewable Energy 5 th Floor Incentives: Same as 4 th Floor plus Structure Parking I:\Council, Boards & Comrnissions\City Council\Staff Reports\2010Vuly\7-06-2010\FINAL Continued PH Ord 489 Downtown Dev Regs Report.doc Attachment 2 V1

CTI Attachment 2 Issue Date DescriptionlProposal/Alternative Outcome 4. BuildinwStorelBusiness Size 4a May 18 Change the gross RETAIL square footage ofan individual retailer in the Transition Area Design District from Passed, 4-3-0 45,000 square feet to 75,000 square feet. 4b May 18 Limit the gross square footage ofa building in the East Frame Design District to 75,000 square feet. Failed, no second 4c May 18 Change all of the district building size limits from indoor retail sales and display area to gross square footage. Passed, 4-3-0 Note: Council clarified the gross building square footage would be indoor space. Porches, etc. would not be included in the Gross Square Footage calculation. 4d June 1 Change (amend) Transition Area Design District store size limit to 75,000 gross square feet Failed, 3-3-0 4f Establish "Exceptional Design" CriterialDefinition: 1. Extensive pedestrian network connected to the City's trail system with lighting, landscaping, and amenities. 2. Creative and effective vehicular circulation system that minimizes impacts ofmotorized vehicles on the pedestrian environment. 3. A unique multi-use central open space with special amenities and activities. 4. Increased use of structured parking. 5. Enhanced off-street pedestrianlbike routes that connect to the existing/planned trail system. 6. Special accommodation oftransit services. 7. Extensive environmental restoration and/or tree retention. 8. Environmental certification of all structures (LEED). 9. Provide additional affordable housing above the minimum requirement. IO.Include uses that will expand the range ofactivities in downtown. Such uses might include a cultural or perfonning arts facility, public assembly areas, and similar uses that will encourage pedestrian activity and/or support for other business or community activities. II.Other significant features that exceed the development standards and regulations 4g 4h 4i 4j Additional Design Standards for Large Fonnat Retail Stores: Design Principle - Minimize visibility and impacts of large fonnat stores containing over 40,000/50,000/60,000(?) GFS. Specifically: 1. Provide centralized and visible pedestrian-oriented space at a ratio of I% ofapplicable lot area plus 1% ofnonresidential floor area; 2. Provide roofline treatments to break down the size ofthe buildings; 3. Provide 15 foot wide landscape buffer between sidewalk and non-pedestrian-oriented fayade; 4. Provide 15 foot wide landscape buffer between sidewalk and on-site parking; 5. Provide on-site pathway along building facade at least 12 feet in width and include street trees; 6. Minimize access points from public street onto site; 7. Screen service areas with landscaping and solid wall or fence; 8. Provide parallel parking along major access roads located on site; 9. Provide an enhanced building entry; and IO.Provide landscaped, raised pathways with street trees through parking areas. Require structured parking for development exceeding 40,000/50,000(?) GSF. Regulate building size by: lot size, setbacks, landscaping, and site development requirements Increase the size limits for stores that primarily sell nursery stock/live plants and other products related to ~ardenin~, landscapin~ and outdoor entertainin~. I I:\Council, Boards & Commissions\City Council\staffReports\2010Vuly\7-06-2010\FINAL Continued PH Ord 489 Downtown Dey Regs Report.doc

Issue Date DescriptionlProposal/Alternative Outcome 5. Northwest Woodland Desi~n 5a May 18 Delete proposed exception to NW Woodland Character for taller buildings Consensus 5b May 18 Expand defmition with illustrations and explanation of design principles. Consensus 5c May 18 Subject to Planning Commission Design Review Committee approval Consensus 5d May 18 Prohibit use of metal siding Consensus 5e May 18 Require brick, timber, masonry Consensus 5f May 18 Highlight wood siding, shake roof in definition of materials Consensus 6. Residential Uses 6a 7. Other: Require residential in projects in: o All Design Districts o Pedestrian Core Design District only o Portions of each District or Project o Existing Code: no residential requirement; 25% of total area is required to be office space in order to qualify as a mixed use development. o Other? 6b Establish a residential units &/or development cap (limit). If a cap is established, use capacity based on Transportation Master Plan, Park, Recreation & Open Space Plan, utility infrastructure capacity and school infrastructure capacity. 6c June I Retain the existing 36 units per acre to calculate residential density Failed, no second 6d 6e 7a 7b 7c 7d 7e 7f 7g Retain the existing 36/48 units per acre to calculate residential density and not adopt the proposed Floor Area Ratio method. J Establish a maximum limit for the number ofresidential units allowed in the CBD that complies with GMAllnfrastructure support. Establish this as the residential density per acre for the CBD. Allow property owners to transfer these residential development rights to other CBD property owners. J Add residential lobby/foyer as an allowed use on the ground floor fronting a public street Allow police store front sub-stations in all/some design districts Remove furniture & home furnishing stores as an allowed use in the CBD zone within the Pedestrian Code and Civic/Gateway Design Districts as recommended by the Planning Commission. Add a definition for "fonnat store" Restrict the number offormula stores/restaurant/ Require formula stores/restaurants approval subject to Planning Commission Design Review Sub-committee J review. Remove undesired usesfrom Permitted Uses' Proposal added after June 15,2010 City Council meetmg. Attachment 2 1:\Council, Boards & Comrnissions\City CounciI\StaffReports\201OVuly\7-06-201O\FINAL Continued PH Ord 489 Downtown Dev Regs Report.doc --.J

8 This page left intentionally blank.