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20171103 Planning Division - Westgate Status Report.pdfof E [),V MEMORANDUM Date: November 2, 2017 To: Rob Chave Shane Hope Mike Clugston Kristin Johns From: Kernen Lien, Senior Planner Subject: Westgate Mixed -Use Development The Westgate Mixed -Use development has a number of related pieces that need to be tracked with the building permit review and also the multi -family tax exemption under ECC 3.38. Below is a summary of where this development stands from a planning perspective. Building Permit Review Plans Review: I have reviewed the latest submittal of the building permit plan set and have no more comments regarding the plans. While the plans are ok, some ADB conditions still need to be address prior to building permit issuance. The ADB conditions are discussed below. ADB Conditions: A number of Architectural Design Board (ADB) conditions were applied to the project, some of which must be addressed prior to building permit issuance and some which must be addressed prior to issuance of certificate of occupancy. Below I have broken down the conditions into these two categories. ADB Conditions to be Addressed Prior to Building Permit Issuance: a. ADB Condition No. 2: LEED SILVER OR BUILT GREEN 4-5 RATING MUST BE CONFIRMED THROUGH THIRD -PARTY VERIFICATION AT THE APPLICANT'S EXPENSE. THE APPLICANT MUST ENTER INTO A CONTRACT WITH THE CITY OF EDMONDS, WHO WILL SELECT THE CONSULTANT TO VERIFY THAT THE PROJECT IS DESIGNED AND CONSTRUCTED TO THE IDENTIFIED LEED OR BUILT GREEN STANDARD. ADB Conditions Nos. 2 and 3 are related. These two items are necessary for the applicant to get the height bonus and construct up to four stories (45 feet). Initially, Henbart was only proposing to design the building to meet LEED Silver standards but not actually follow through with certification. They have since decided that they are going to follow through with the LEED Certification as well. We do not currently have a contract with the Henbart Page I of 4 to verify the LEED Silver design or Green Factor certification (Condition No. 3 below). I have talked with Henbart about working with them on selecting a consultant to do the certification. Anthony Janson emailed me Henbart's preffered consultant on November 1, 2017 (this email and proposal has been forwarded to Rob and Shane). We need to work out the specifics of a contract with City Attorney (Sharon Gates) for verification of LEED design and Green Factor scoring. b. ADB Condition No. 3: GREEN FACTOR CERTIFICATION MUST BE CONFIRMED THROUGH THIRD -PARTY VERIFICATION AT THE APPLICANT'S EXPENSE. THE APPLICANT MUST ENTER INTO A CONTRACT WITH THE CITY OF EDMONDS, WHO WILL SELECT THE CONSULTANT TO VERIFY THAT THE PROJECT IS DESIGNED AND CONSTRUCTED TO THE IDENTIFIED GREEN 2WIT" I Is] IN Nidle] 1:141 See comments on ADB Condition No. 2 above. c. ADB Condition No. 4: PRIOR TO BUILDING PERMIT ISSUANCE, A COVENANT WITH AND IN A FORM APPROVED BY THE CITY OF EDMONDS MUST BE RECORDED WITH THE SNOHOMISH COUNTY AUDITOR'S OFFICE ACKNOWLEDGING THAT ANY AREA WITHIN PARCEL NUMBERS 00610700200600, 00610700200601, 00610700200701 AND 00610700200702 LEFT OUT OF CALCULATIONS FOR THE AMENITY AND OPEN SPACE REQUIREMENTS FOR THE SUBJECT PROPOSAL MUST ULTIMATELY BE INCLUDED IN CALCULATIONS FOR AMENITY AND OPEN SPACE REQUIREMENTS IN FUTURE DEVELOPMENT PHASES ON PARCELS 00160700200803 AND 00610700201001. Henbart submitted a draft covenant that the City Attorney felt needed to be stronger. The City Attorney has been in contact with Henbart's attorney regarding the covenants addressing ADB Condition No. 4 and ADB Condition No. 10. 1 am not sure of the progress of the attorney's discussion. Henbart is aware that our attorneys are discussing these covenants. d. ADB Condition No. 6: A LOT LINE ADJUSTMENT MUST BE COMPLETED AND RECORDED PRIOR TO BUILDING PERMIT ISSUANCE. THE AREA CONTAINING THE DEVELOPMENT FOLLOWING THE LOT LINE ADJUSTMENT SHALL BE USED IN DETERMINING COMPLIANCE WITH THE OPEN SPACE AND AMENITY SPACE REQUIREMENTS OF ECDC 22.110. A lot line adjustment was approved under file number PLN20170048 on October 26, 2017. The LLA still needs to be recorded. Henbart needs to submit signed copies for City signature and then take the documents up to Snohomish County Auditor's Office for recording. e. ADB Condition No. 10: A DOCUMENT SUMMARIZING APPLICABLE CONDITIONS RELATED TO THE AMENITY SPACE, INCLUDING BUT NOT LIMITED TO MAINTENANCE, PUBLIC ACCESS AND HOURS OF OPERATION, SHALL BE SIGNED BY THE APPLICANT, IN A FORM ACCEPTABLE TO THE CITY, AND RECORDED WITH THE SNOHOMISH COUNTY AUDITOR'S OFFICE. See comments on ADB Condition No. 4. f. ADB Condition No. 12: THE FIVE PARKING SPACES ON THE NORTH SIDE OF THE TRASH ENCLOSURE SHALL BE ELIMINATED IN ORDER TO PROVIDE ADEQUATE MANEUVERABILITY FOR SERVICE VEHICLES. Page 2 of 4 Plans have been revised to eliminate the five parking spaces and Steve Fisher has approved the layout. This item is completed. g. ADB Condition No. 13: THE ENTRANCE TO THE RESIDENTIAL PORTION OF THE BUILDINGS SHOULD STAND OUT MORE AND THAT CAN HAPPEN PRIMARILY WITH COLOR OR MATERIAL CHANGES TO THE FA�ADE. IF THE CHANGES RESULT IN A STRUCTURAL CHANGE TO THE ROOF LINE, THE PROPOSAL WOULD NEED TO COME BACK TO THE ARCHITECTURAL DESIGN BOARD FOR APPROVAL. Entrance has been redesigned to make it stand out more without any structural changes to the roofline. This item is completed. h. ADB Condition No. 14: THE APPLICANT WILL RE-EVALUATE THE PROPOSED COLOR PALLET AND ADJUST SUCH THAT THERE ARE GREATER PROPORTIONS OF A LIGHTER PART OF THE PALLET USED IN THE PROJECT. Applicants revised the color pallet to make it a little lighter. This item is completed. ADB Conditions to be Addressed Prior to Certificate of Occupancy: i. ADB Condition No. 1: A PARKING AGREEMENT FOR SHARED PARKING WITHIN THE WESTGATE VILLAGE SITE SHALL BE SUBMITTED IN A FORM APPROVED BY THE CITY. SUCH AGREEMENT MUST BE RECORDED PRIOR TO THE CERTIFICATE OF OCCUPANCY BEING ISSUED FOR THE BUILDING. Site plans during design reviewed indicated some the parking spaces will be shared with other development on this corner. Since parking was going to be shared staff suggested this condition which is similar to what we did for the Walgreens, Starbucks, and PCC site kitty corner from this development. All of the required parking for this development is located within the project site (as defined by the lot line adjustment in ADB Condition No. 6 above). Henbart was considering to take this back to the ADB and have this condition removed (along with the art requirement in AD13 Condition No. 11) since all of the required parking is located with the project area. For the time being Henbart has decided not to take this project back to ADB, so as of now, a parking agreement must be recorded prior to CofO. ADB Condition No. 5: AN EASEMENT MUST BE PROVIDED BY THE CITY OF EDMONDS FOR THE PORTION OF THE SIDEWALK LOCATED ON PRIVATE PROPERTY THAT IS NECESSARY TO MEET THE EIGHT -FOOT SIDEWALK WIDTH REQUIREMENT. The pedestrian easement was approved the City Council at the October 17, 2017 Council meeting. Engineering has indicated they are not going to record an easement until after construction to ensure everything lines up. k. ADB Condition No. 11: THE APPLICANT SHALL PURCHASE ONE OR MORE ORIGINAL WORKS OF ART TO BE PERMANENTLY DISPLAYED IN A REASONABLY -ACCESSIBLE AREA OF THE EXTERIOR PUBLIC AMENITY SPACE. THE ART WORK SHALL HAVE A FAIR MARKET VALUE OF NO LESS THAN 1% OF TOTAL BUILDING VALUE AS DETERMINED BY THE BUILDING VALUATION DATA, PUBLISHED BY THE INTERNATIONAL CODE COUNCIL ON FILE WITH THE CITY BUILDING OFFICIAL. FINAL SELECTION OF ART WORK SHALL BE SUBJECT TO REVIEW AND APPROVAL BY THE CITY OF EDMONDS ARTS COMMISSION. Page 3 of 4 According to the International Code Council data, the proposed structure has a value of $9,290,853.57 (1 pulled this value from PermitTrax), so the art must have a market value of no less than $92,908. Henbart was not very pleased about this and was considering taking the project back to the ADB to eliminate this condition. Henbart could replace providing public art with car share parking or increasing the LEED certification or Green Factor scores and still achieve the height bonus. I believe Henbart was going to propose replacing the public art with car share parking ("Car -share" parking refers to parking for vehicles that are rented by the hour or portion of a day. See ECDC 22.110.090 for height bonus requirements.) For the time being, Henbart has decided not to take back this project to the ADB. So as it currently stands, prior to the issuance of the Certificate of Occupancy, the art work provided for the amenity space must be selected, purchased and installed. A receipt or other documentation of the value of the art selected for the project must be provided to the City of Edmonds. Should Henbart decide to take this project back to ADB to seek modifications to ADB Conditions Nos. 1 and 11, 1 don't see any reason why that couldn't occur while the building was under construction. Multi -Family Tax Exemption Henbart applied for a multi -family tax exemption (MFTE) as allowed under ECC 3.38. Of the 91 residential units in the development, Henbart proposed to price the rent for five units affordable to low-income households and 14 units affordable to moderate -income households (as defined by RCW 84.14.010). The MFTE was approved under file number STF20170005 on October 30, 2017. The next step is for the City to enter into a contract with Henbart which is approved by the Mayor. Brad created a table on what the rents would need to be to meet the low-income and moderate -income levels. I'm assuming the rent levels are something that should be in the contract which could be revisited during the annual certification process. The MFTE expires if the development is not completed within three years (with the opportunity for an extension). Page 4 of 4