LETTER OF TRANSMITTAL

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LETTER OF TRANSMITTAL To: Clallam County Board of Commissioners From: Clallam County Planning Commission Date: November 18, 2009 Subject: Transmittal to BOCC: Findings and Conclusions regarding proposed ordinance amending Clallam County Code 31, Comprehensive Plan; 33.19, Sequim Urban Growth Area; and the Official Comprehensive Land Use and Zoning Map of Clallam County, to expand the Sequim Urban Growth Area to include the Battelle Marine Research Operations site Dear Commissioners: The Clallam County Planning Commission has completed its review and public hearing on a proposed ordinance amending Clallam County Code 31, Comprehensive Plan; 33.19, Sequim Urban Growth Area; and the Official Comprehensive Land Use and Zoning Map of Clallam County, to expand the Sequim Urban Growth Area to include the Battelle Marine Research Operations site. The Commission is recommending adoption of the proposed ordinance, which is attached hereto. The Planning Commission completed its review and approved its final recommendations to forward to the BOCC at its-meeting of November 18, 2009. As Chairman of the Clallam County Planning Commission, having first received the authorization of the Commission, I am transmitting herewith the findings and recommendations of the Commission on the above compliance matters: FINDING OF FACT: 1) The Commission finds that the proposed ordinance would amend Clallam County s development regulations, Comprehensive Plan, and the Official Comprehensive Land Use and Zoning Map as follows: Amending the Official Comprehensive Land Use and Zoning Map by expanding the Sequim Urban Growth Area (UGA) by approximately 105 acres encompassing Battelle Memorial Institute s Sequim Marine Research Operations (MRO) site along Sequim Bay (but not Battelle s ownerships on Travis Spit and the small tidal island to the south of Travis Spit), and designating and zoning this site for Research and Development Park purposes. Amending the County s Zoning Code at Chapter 33.19 CCC to create a new Research and Development Park (RDP) zoning district and related development standards. Amending the County s Comprehensive Plan to amend background and policy provisions related to urban growth in the County s Comprehensive Plan at CCC 31.03.280 and CCC 31.03.310. Further amending the County s Zoning Code at Chapter 33.19 CCC to eliminate zoning districts that no longer exist within the unincorporated areas of the Sequim UGA due to past annexations. 2) The proposed ordinance was discussed in the Sequim City Council Staff Report for meeting date October 26, 2009, and during Planning Commission meetings on September 16, 2009, October 7, 2009 and November 18, 2009 (also the date of the public hearing on the proposed ordinance). 3) Battelle s MRO is a natural-resource-based-industry in this case, Battelle is entirely dependent upon the nearby Sequim Bay for its marine environmental research facilities. About 7.5 acres of the 105-acre site is currently developed. There are eight facilities that provide more than 6000 square feet of analytical and general-purpose laboratory space and about 5300 square feet of wet/bioassay laboratory space, 2000 square feet of marine Page 1 of 5

biotechnology space, 1500 square feet of computer laboratory space, 1500 square feet of electronics and maintenance shop areas, and 38,700 square feet of space for offices, conference rooms, mechanical rooms, pump houses, support structures, and storage areas. Battelle s Campus Master Plan anticipates that over the next 10 to 20 years the current facilities will grow by as much as nine new major laboratory and office buildings and other support structures, consisting of about 500,000 square feet, allowing the addition of 200 to 300 researchers and staff. 4) Because Battelle has reached on-site well and septic capacities, access to city utility services will be a critical component to its expansion plans. The proposed amendment will provide guidance for future development of the MRO site through the City of Sequim site and structural development standards, and will enhance the public health, safety, and welfare of county and city residents by allowing utility connections to the MRO s existing and proposed facilities, thus preventing further use of their on-site septic system and potential degradation to Sequim Bay. 5) The proposed rezoning of the Battelle Marine Research Operations site is consistent with regard to criteria contained at CCC 31.02.250 in the Countywide Comprehensive Plan, for review and amendment to an urban growth area, as follows: (1) The following procedures shall be followed in review of urban growth area amendment applications: (a) The amendment shall be considered an amendment of the Comprehensive Plan. The procedures for public notice, timing of applications and public hearings outlined in Chapter 31.08 CCC shall be followed. CCC 31.02.250(1)(a): This amendment is considered an amendment to the Comprehensive Plan and as identified in the previous section, all process requirements will be met as outlined in Chapter 31.08 CCC. (b) The County shall consult with the appropriate city concerning the Comprehensive Plan changes that may be needed to implement the urban growth area boundary amendment. A coordinated approach with the County, City, Battelle, and Clallam County Economic Development Council during the review and processing of this application was implemented. (c) Amendment applications can be made by Clallam County or a city with a planning area that includes or is contiguous to the property; or the owners of the property included in the application or a group of more than 50 percent of the property owners who own more than 50 percent of the land area in each area included in the application. The application was filed by owners of the property representing 100% of the land area within the proposed amendment. This meets the criteria that require 50% of the property owners who own more than 50% of the land area in the proposed amendment. (2) Applications for amendment of urban growth area boundaries, or the establishment of new urban growth areas, shall meet the following criteria: (a) The applicant shall demonstrate that there is a need to accommodate the 20- year population and employment growth of that area. The following information should be supplied: (i) Revised 20-year population and/or employment forecast demonstrating increased growth due to births, deaths and/or migration, or employment opportunities. (ii) Information pertaining to specific historical growth Page 2 of 5

and employment patterns since the last population or employment forecast provided by the County. (i) The intent of this amendment is not to create additional land to accommodate additional population growth. The amendment will allow the proponent to utilize city utilities to increase the size of the operation which currently exists. The resulting increase, and upon ultimate build-out (10 to 20 years), it is anticipated that the regional economy will be enhanced by the addition of 200 to 300 personnel and staff. The amendment allows expansion of the Sequim urban growth area for future campus growth. Due to the need for a spatial relationship to Sequim Bay of this facility, existing undeveloped land within the current urban growth area would not satisfy the proposed marine research uses. (ii) Historical employment growth has not been tracked since the forecast established in the 1996 City of Sequim Comprehensive Plan. That plan indicated that, in 1995, there were 3,320 employees in the Sequim urban growth area. Of this total, 2,490 persons, or about 75%, were employed in the retail/service sectors while 830 persons, or about 25%, were employed in a manufacturing capacity. Forecasts in this plan indicated an increase of 2,008 persons in the retail/service sectors and an increase of 669 persons in manufacturing sector by 2015. Recent trends have indicated that the forecast increase in manufacturing employment has not been realized. The land use assumptions providing adequate residential developable lands to accommodate the forecast employment increase will not be affected. (b) A demonstrated need for additional land to accommodate the population and/or employment growth. The following information should be supplied: (i) An inventory of net developable land within the existing urban growth boundary and proposed urban growth boundary. (ii) Market availability, ownership and parcelization of net developable land within the existing urban growth boundary and proposed urban growth boundary. (i) The Sequim urban growth area encompasses 5,204 acres (8.1 square mile) of which 3,990 acres (6.4 square mile) or about 77% are within the City of Sequim. Of the total 5,204 acres, 3,449 acres are within residential zoned lands. Based on a parcel field investigation performed in 2005-2006, 1,938 acres are vacant while an additional 584 acres are considered under-utilized. Land zoned commercial encompassed 513 acres of which 183 acres were vacant and 92 acres are considered under-utilized. Mixed use zoned properties encompassed a total of 278 acres with 167 acres vacant and 63 considered under-utilized. The public facility zoned properties totaled 196 acres. The balance of 768 acres are included in right-of-ways, agricultural conservancy or other open. Due to the need for a spatial relationship to Sequim Bay of this facility, existing undeveloped land within the current urban growth area would not satisfy the proposed marine research uses. (ii) Market availability, ownership and parcelization of net developable land is available with the City of Sequim. (c) The amendment provides for a net improvement in the efficiency of public facilities and services, including but not limited to, water, sewage, transportation, drainage, parks and recreation. The proposed amendment will greatly enhance and preserve the water quality of this site and surrounding properties with the eventual connection to City utilities and the abandonment of the existing on-site septic system. This amendment will provide net regional improvements through the economic stimulus that the increased employment opportunities will create. This will provide opportunities for housing, commercial services, public facility, and recreational growth. Page 3 of 5

(d) The amendment is compatible with nearby resource land (agricultural, forestry or mining) uses. The amendment is proposed for 105.45 acres located directly adjacent to Sequim Bay. While the property owners have been, and will continue to be, excellent stewards of the existing natural resources, existing and proposed regulations will be enforced ensuring the maintenance of environmental quality. Such regulations are within the City of Sequim Municipal Code, Shoreline Master Program and other regulations as required by state and federal agencies. (e) The amendment meets the requirements in CCC 31.02.230 for the designation of urban growth areas. The proposed amendment does not have a residential component. The build-out of the campus will provide space for additional research and office space. The uniqueness of this use is prompting creation of specific policies which will be implemented through a Research and Development Park zoning district. Transitory facilities, used for project related engineers, scientists, and other personnel are conditionally allowed. There are no available, undeveloped lands within the existing Sequim urban growth area which can satisfy the need for close proximity to Sequim Bay for the research currently or proposed to be performed. The urban growth area designation policies established under CCC31.02.230 are related to residential impacts of an urban growth area creation. 6) The proposed rezoning of the Battelle Marine Research Operations site is consistent with regard to six criteria contained at CCC 33.35.090 in the Zoning Code, and at CCC 31.08.370 in the Comprehensive Plan, as follows: (1) The proposed amendment is consistent with the County Comprehensive Plan. This proposal is consistent with the intent of the Clallam County Comprehensive Plan by maintaining consistency with the Growth Management Act by including urban type development within urban growth areas. It also implements economic development policies by creating additional family-wage employment opportunities. (2) The proposed amendment is consistent with the spirit and intent of CCC Title 33, Zoning, and with interlocal agreements, transportation, parks and recreation, capital facility, utility, watershed, and other applicable land use and environmental plans and policies adopted by the County. This proposal is consistent with the intent of the Clallam County Zoning Title by the creation of a Comprehensive Plan designation and zoning district (research and development park) which will accurately reflect the existing and proposed uses of this 140-acre site. (3) The proposed amendment will not be detrimental to the public health, safety, and welfare. The proposed amendment will enhance the public health, safety, and welfare of county and city residents by proposing this amendment to allow utility connections to their existing and proposed facilities thus preventing further use of their on-site septic system and potential degradation to Sequim Bay. (4) The proposed amendment is necessary due to changed conditions or circumstances from the time the property was given its present designation which warrants consideration of a different land use designation. This criterion only applies to comprehensive plan and zoning map amendments. The proposed amendment is necessary to allow utility extension and campus expansion. The new land use designation will provide guidance for future Page 4 of 5

development of this site through Clallam County and the City of Sequim development standards. (5) The proposed amendment will not result in probable significant adverse impacts to the adequacy of public facilities and services including, but not limited to, transportation, sewer, water, storm water, utilities, and parks required to meet urban or rural needs, and will not place uncompensated burdens upon existing and planned services. No significant adverse impacts will result from this proposed amendment. The inclusion of this area into the City of Sequim urban growth area and subsequent annexation into the City of Sequim will provide the opportunity for all site issues to be addressed and mitigated upon receipt of any development proposal involving the campus build-out proposal. Each development proposal will need to address all natural and structural needs at the time of permit submittal. Various regional elements of this campus build-out will need to be addressed to provide adequate mitigation (transportation, affordable housing, recreation), however, this mitigation will be determined at the time a specific project is submitted. (6) The cumulative effects of all proposed amendments have been assessed and determined to be consistent with the spirit and intent of this title. The other amendments are as follows: o Green Crow rezone petition. o Paul & Paul rezone petition. o Rezoning county-managed parks and recreation areas to a new Parks and Recreation zoning designation.. o Sequim UGA adjustment to exclude Palo Verde area. Because of the above-described facts and findings, and attachments hereto, the Commission adopts and transmits the following conclusion to the Clallam County Board of Commissioners. CONCLUSION: Now therefore in light of the above Findings of Fact, the Clallam County Planning Commission concludes that the proposed ordinance be recommended for approval to the BOCC, and as Chair of the Commission, has directed me as its duly authorized agent to transmit this recommendation to the BOCC on the above-inscribed date. Tom Montgomery, Chair Date Page 5 of 5