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2016-03-09 Planning Board Retreat PacketSPECIAL MEETING AGENDA PLANNING BOARD RETREAT Brackett Room, 3rd Floor of City Hall 121 5th Avenue North March 9, 2016 6:00 PM Call to Order and Roll Call 2. Reading / Approval of Minutes: a. Approve the minutes of 2/24/2016 3. Announcement of Agenda Training: Presentation and Discussion with the City Attorney(s) on the Open 4. Public Meetings Act and Public Records. a. Presentation & Discussion on Open Public Meetings Act and Public Records 5. Discussion: Growth Patterns and Strategies for Edmonds a. Discussion on Growth Patterns & Strategies for Edmonds 6. ADJOURN AI-8396 Planning Board Agenda Meeting Date: 03/09/2016 Approve the minutes of 2/24/2016 Department: Planning Initiated By: City Staff Information Subject/Purpose Approve the minutes of 2/24/2016 Staff Recommendation Approve the minutes of 2/24/2016 Previous Board Action N/A Narrative Approve the minutes of 2/24/2016 (Attachment 1) Attachments Attachment 1: Minutes of 2/24/2016 CITY OF EDMONDS PLANNING BOARD MINUTES February 24, 2016 Chair Lovell called the meeting of the Edmonds Planning Board to order at 7:00 p.m. in the Council Chambers, Public Safety Complex, 250 — 5d' Avenue North. BOARD MEMBERS PRESENT Philip Lovell, Chair Carreen Rubenkonig, Vice Chair Matthew Cheung Alicia Crank Nathan Monroe Daniel Robles Valerie Stewart Samuel Kleven (Student Representative) BOARD MEMBERS ABSENT Todd Cloutier READING/APPROVAL OF MINUTES STAFF PRESENT Rob Chave, Planning Division Manager Karin Noyes, Recorder BOARD MEMBER STEWART MOVED THAT THE MINUTES OF FEBRUARY 10, 2016 BE APPROVED AS WRITTEN. BOARD MEMBER CHEUNG SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. ANNOUNCEMENT OF AGENDA The agenda was accepted as presented. AUDIENCE COMMENTS There were no audience comments. DEVELOPMENT SERVICES DIRECTOR REPORT TO PLANNING BOARD Chair Lovell referred to the written Director's report, which was included in their packets. He specifically noted the summary of what has been done to date to implement the Strategic Action Plan, and he encouraged Board Members to review the document. DEVELOPMENT CODE UPDATE Mr. Chave advised that Ms. Hope and the consultant team provided a progress report on the Development Code Update to the City Council on February 23`d. For the Board's information, he played a video recording of the presentation. The following is a summary of the presentation: Ms. Hope advised that the Development Code Update is intended to make the code more readable, accurate and consistent; make inadequately -addressed code topics more complete; address new issues as appropriate; clam roles and processes and resolve conflicts/overlaps. She recalled that the Planning Board previously identified criteria by which the update would proceed, and the City Council allocated $150, 000 for the project. About $110, 000 of the funds were used in 2015, and $40, 000 will be carried over into 2016 to continue the project. Ms. Hope said the update is significantly influenced by staff resources. While they have helpful consultants, a large amount of staff time is needed to work through the topics. Staff time is influenced by other projects on the work program, as well as ongoing development review and special projects. The update is also influenced by the Planning Board principles and objectives, the public process and input, stormwater low -impact design (LID) integration, and the changing legal environment (new laws and court cases). Ms. Hope introduced John Owen of Makers, the consultant for the Development Code Update. John Owen, Makers, advised that he has been working with City staff on a number of code sections in tandem with each other. One, in particular, is the Subdivision (land development) Code, which is a topic that has received a lot of comments from the Planning Board, City Council, citizens, and development community. When reviewing the Subdivision Code, he considered three different types of land use actions: short subdivisions, formal subdivisions and binding site plans for commercial properties. The proposed concept at this time is to re -define short subdivisions as 8 lots or less rather than 4 lots or less, while adding stronger design standards and clearer criteria. It is believed that this approach will cut out incentive for property owners to do two, side -by -side, 4-lot (short) subdivisions and instead have unified design that results in better land utilization and more opportunities to mitigate impacts of development. Mr. Owen explained that there are several different design options to consider. The current code allows for conventional design, as well as Planned Residential Development (PRD), which relaxes some of the requirements for subdividing properties. Under the proposed new language, it is anticipated there would be less need for PRDs because the updated code would allow some flexibility that would make some aspects of land division easier. The current code also allows for modification requests, leading to what is commonly called "staff interpretation " or other review actions, and he proposed that this option be substituted with LID requirements or options. This approach would allow greater flexibility to cluster lots and achieve more conservation or enhancement for existing trees, natural areas; greater setbacks next to adjacent properties; stormwater and LID features; native vegetation protection and solar access. Relaxing the internal subdivision requirements will allow for greater outer buffers, more LID features, and a greater opportunity to save large trees. The idea is to do what is important for the environment and surrounding property owners, but allow more flexibility with regard to how the buildings relate to one another and how they are arranged internally on the lot. Mr. Owen observed that some may interpret the proposed changes as making it easier for property owners to subdivide by allowing short subdivisions of up to 8 units. While the proposed LID Standards would allow a developer to vary the width and area of individual lots to a certain extent and the interior setbacks may be somewhat reduced, there would be greater requirements for protecting and enhancing critical areas and natural features, stormwater management and solar access. The standards would also limit the amount of impervious surface to a certain percentage of a lot and require careful protection of the trees being retained. He emphasized that the concept would not result in an overall density that is greater than allowed in the zoning district. Mr. Owen reviewed other concepts for updating the Subdivision Code such as allowing `fee simple" unit lot design for townhomes, requiring sidewalks on both sides of street for larger subdivisions, requiring access directly from a public right- of-way, and clarifying language as needed for underground utilities, easements, dedications, etc. Mr. Owens said that, while the application requirements are nearly the same for both short and formal plats, the review processes vary. Short plats are administratively reviewed, with appeals going before the Hearing Examiner. Formal plats are preliminarily approved by the Hearing Examiner, with a recommendation to the City Council for the final decision and appeals go to the court. No changes have been proposed for the process. However, the proposed amendments will result in clearer standards related to coverage, massing, stormwater infiltration, etc. This will result in fewer "staff interpretations" related to impacts to surrounding neighborhoods and more internal site flexibility to protect trees, natural stormwater drainage, greater buffers around the property, etc. Planning Board Minutes February 24, 2016 Page 2 Mr. Owen said there have also been a lot of comments pertaining to the Sign Code, particularly about how the City calculates sign area. He explained that there are different ways to measure sign area, and Edmonds currently only counts the actual size of the letters and not the area around the letters. This encourages larger letters instead of the objectionable panel or backlit signs you see in other communities. The concept is to update the way that maximum sign area is regulated for multi -tenant commercial buildings. Currently, the maximum allowed sign area is one square foot of sign area per one lineal foot of building frontage on the main public entrance. He recommended that the language be clarified to apply the measurement to individual storefronts and not an entire multi -tenant facade. Mr. Owen said another change that would improve the overall quality and design of signs is to make sure they are centered in proportion and shape to the architectural features of the building. In addition, signage should not two thirds of the individual storefront dimension or articulation of the building. In reviewing examples, these proposed changes will help keep the sign to a reasonable size and proportion to the rest of the building. Mr. Owen said another thing that is unique to Edmonds is allowing signs to be on the mansard roof of a one-story building, and no changes are being proposed to this provision. However, one of the more controversial aspects of the sign code is sandwich board or A frame signs. The proposed concept is to encourage the use of stanchion (portable post style) signs as an alternative to A frame signs. Stanchion signs are less disruptive, yet highly visible. It is not the intent to discourage businesses from advertising. At the same time, they want to ensure there is a clear, safe pedestrian environment, as well as a sense of visual regularity and decorum in the downtown. Another option is to require a permit for stanchion or A frame signs so they can be tracked. It is also necessary to refine the requirements for A frame or stanchion signs in the right-of- way to make sure there is clear right-of-way, that they are close to the business, and that the numbers are limited. Mr. Owen said the proposed amendments also encourage blade signs to advertise the additional businesses. Blade signs do not have any of the disadvantages of the stanchion signs, and they actually have very good visibilityfor both pedestrians and people in vehicles. They are also considering a master plan for directional signs in the downtown so that signs can be placed in key locations. These signs are particularly important for businesses that are off the main streets. Permitting would be required and some organizational effort would be needed. Mr. Owen said many Washington Cities no longer allow new pole signs. Currently, the City only allows pole signs on Highway 99, and he recommended the City consider prohibiting new pole signs altogether and encouraging monument signs, instead. He recognized this may meet some opposition; but in the end, both businesses and other citizens tend to prefer signs that are visible but not intrusive. Mr. Owen said there are also legal issues under review related to signs that are based on recent court decisions. General miscellaneous clean-up of the sign code language also needs to be done. Ms. Hope noted that various items came up on the work plan that altered the City's ability to move forward with the Development Code Update. However, the current plan is to start with updates to the sign and subdivision codes. She reminded them that a related Development Code issue is the Critical Areas Ordinance, which has not yet been adopted. In addition, the fire code must be updated every three years and will be coming before the City Council for adoption before July. Also, the State implemented a change to the impact fee process, which requires that there be a different process for single-family homes; and the City needs to update its code to implement this new requirement before July. The intent is also to continue integrating stormwater LID techniques into various sections of the code, and staff is currently working with the Engineering Department to complete this task. Mr. Chave announced that the presentation was followed by approximately 15 minutes of questions by the City Council Members, and the entire presentation is available on line. Chair Lovell asked if the schedule was developed by the Development Services Department or the consultant. Mr. Chave answered that it was prepared by the Development Services Director, after consulting with Makers. Chair Lovell reported that he attended Ms. Hope's presentation to the City Council and recalled that a key concern was that the concept of "0" lot lines would force the housing units so close together that they could infringe on the concept of personal privacy while trying Planning Board Minutes February 24, 2016 Page 3 to preserve sections of a development site for natural habitat, LID, tree preservation, etc. He noted that if an area is deemed to be in a critical area, all of the requirements contained in the Critical Areas Ordinance (CAO) would apply. Chair Lovell recalled that there has been a lot of discussion in the past about sandwich board or A -frame signs, and the issue came up again at the Council level. These signs seem to populate the sidewalks and interfere with pedestrian access. It was asked if the City has solicited feedback from retail establishments that use the signs. Obviously, they want to preserve their sign capacity as much as possible. The task is to create balanced criteria that is acceptable to everyone but also provides a clear definition as to what comprises a temporary sign. Also, at the Council meeting, it was pointed out that Mill Creek Village does not allow sandwich board signs. Instead, they use blade signs that seem to go a long way to solving the issue. Chair Lovell advised that proposed amendments to the Sign and Subdivision Codes will come back to the Board for a\\ work sessions, a public hearing, and a recommendation to the City Council later in 2016. Mr. Chave agreed and advised that a major part of the Board's extended agenda will be filled with Development Code update topics. Board Member Crank said that, based on feedback from retailers in the City, the A -frame signs are more than just a logo. They provide valuable real estate for temporary advertising. Switching to stanchion or blade signs would eliminate a business's ability to highlight sales and specials. She presumes that this concern will come up at the public hearing regarding the proposed changes. A -frames offer critical advertising opportunities that businesses will have to pay for and provide in another way. Chair Lovell recalled that the proposed change would not eliminate a -frame signs, but it would add additional standards to get them closer to the entrances, provide adequate ADA access on the sidewalk, etc. He expects that the updated Sign Code would continue to allow A -frame signs, but it would clarify the requirements. He also acknowledged that retailers depend on A -frame signs. Mr. Chave commented that stanchion signs would not preclude the ability to change messages. They are simply a different type and shape of sign that takes up less footprint on the ground but still provides ample room for messaging. He noted that the sidewalks in the downtown area are typically narrow, and the intent is to figure out specific limits and regulations that will allow businesses to provide messaging without hindering pedestrian access. He commented that a variety of other stand- up sign types have been used effectively in the downtown. Board Member Cheung asked if digital signs are allowed in Edmonds, and Mr. Chave answered that they are permitted along Highway 99, but the decision was made many years ago that digital signs were not appropriate for downtown and most other commercial areas in Edmonds. However, he acknowledged that there are a few existing digital signs that have been grandfathered and will be allowed to remain. Board Member Robles asked if neon or LED signs would be allowed, and Mr. Chave answered that small ones that are located inside windows are allowed. It's an evolving technology, and historically, it has been tight in the downtown area because people live in very close proximity to the businesses and it is important to limit glare and light. Board Member Cheung asked of projection lighting is allowed. Mr. Chave said the City actually encourages indirect lighting in the downtown. For example, halo signs are a new technology where there is some form of a sign face, with a light that comes from behind and illuminates outside of the sign area. The code prohibits cabinet signs in the downtown, but halo signs are indirectly lit and can produce some really attractive effects with very little light bleeding off the site. He explained that it is tricky to write sign code because the technology evolves quickly. It is necessary to look at performance standards rather than listing the specific types of signs that are and are not allowed. It is more about effect (what you are trying to prevent or encourage). For example, Mr. Owen called out the City's method for calculating sign area as unique because it only counts the area of the applied letters and not the area surrounding the letters. This is a powerful incentive for people to do block letters, which tend to be more subtle and get the message across well, without a large, bright sign background. Board Member Stewart commented on the importance of positioning structures on the site to allow for environmental features to be utilized favorably. Cluster developments use this approach, and it has been done quite a bit in other jurisdictions. The proposed code talks about LID, which is mandated by the state and will be incorporated into the code. It is also important that the updated Subdivision Code encourage green building. Under LID, it talks about energy efficiency, Planning Board Minutes February 24, 2016 Page 4 locally sourced and sustainable materials, indoor environmental quality, and a host of other things. Usually, when you talk about green building, you also analyze the site; and if you have flexibility, you can position buildings to take advantage of environmental features on the site. She noted that King County is moving forward with this evolving concept, and Snohomish County is lagging behind. Chair Lovell clarified that the idea would be to allow adjustments in the positioning of the units to enable larger areas of the site to be preserved for natural habitat, shared green space, mini parks, rain gardens, etc. Vice Chair Rubenkonig observed that signs in the downtown should be designed to attract pedestrians, whereas signs on Highway 99 must attract vehicles passing by. She recalled previous City discussions where it was decided that signs that can attract people from more than two blocks away create too strong of a presence in the downtown, and that is where the word "garish" came into play. It is important to remember that this is the perspective that has been taken when looking at what is considered acceptable signage. She said she supports the performance based approach, which allows new technologies to be considered. Chair Lovell agreed that pedestrian -oriented signs are more appropriate for the downtown. Chair Lovell voiced concern that, typically, when small -lot development occurs, developers put up a fence around the development and clear cut the entire site. Implementing LID concepts will require careful planning by the City staff and developers. Board Member Stewart agreed that more planning will be required, but developers can actually save time later by retaining some of the existing environmental features on the site. It's a different way of thinking, but the concept is being used more. There are developers that take this approach, and perhaps they can attract developers from outside the City so the concept can begin to happen more. Chair Lovell asked if there is sufficient funding to complete the Development Code update. Mr. Chave said he does not anticipate that the entire update will be finished in 2016. Right now, the consultant and staff are focusing on the most important parts (signage, subdivisions, and LID integration), and the remaining funds should be sufficient to complete these items. Staff hopes to complete the remaining work in house. He reminded the Board that another consultant is currently working with the Engineering Department to integrate LID into the engineering requirements, which will also require changes to other sections of the code. The City is also working with a consultant to prepare a Highway 99 Subarea Plan. He summarized that updating the Development Code is a very large project that involves various consultants and City departments. Board Member Monroe requested more information about the Council's concerns about "0" lot line development. Mr. Chave clarified that "0" lot line is not a concept that is currently being considered. Board Member Monroe asked if the changes to the short plat provisions would allow a developer to bypass some of the standards, and Mr. Chave answered no. The same standards would apply to both short and formal subdivisions. The proposed amendment relates more to the process. Short plats are administratively reviewed, but the City Council has to approve formal subdivisions. Board Member Monroe voiced concern that the proposed amendment would result in eight, small houses placed in the corner of a large lot. Mr. Chave said there are standards and limitations that would prevent this from happening. However, there needs to be some flexibility given to allow LID to be worked into the site design. The current formal subdivision provisions offer very little flexibility and no opportunity to retain trees, etc. The real question is how much and what type of flexibility should be available in both the short and formal plat standards. Board Member Crank asked if the City Council's decision to postpone adoption of the Critical Areas Ordinance (CAO) would impact the timeline for updating the Development Code. Mr. Chave said it could complicate the schedule, depending on how elaborate finishing off the CAO gets, since it will prevent senior staff from being able to work on the code update. Vice Chair Rubenkonig observed that she does not anticipate a large number of subdivisions with more than eight lots, given the limited land available in Edmonds for development/redevelopment. Mr. Chave agreed and said most of the future subdivisions will be 2 or 3-lot short plats. Vice Chair Rubenkonig said that, in her experience with reviewing large subdivisions that have protected lands in the greater Seattle area, you end up with development that does not protect the last frontier of the resources that are left. There is not much left of the good part of nature, and the proposed LID regulations would actually protect what is left on the parcels. She also observed that people seem to like living on these properties. Protected lands are never going to be developed and they will have them to enjoy in perpetuity. There are some very fine tradeoffs. Although the houses would be smaller, there has not been a lack of interest on the part of consumers wanting to get into the developments. Planning Board Minutes February 24, 2016 Page 5 Vice Chair Rubenkonig said Mr. Owen made some fine points to help the Board turn its thinking when he referred to the proposed changes to the interior side and rear setback requirements. He pointed out that only the people living in the development would be impacted by the reductions, and they would have a clear understanding of the tradeoffs. Mr. Owen also made a point about lessoning the need for staff interpretation, which is something developers continue to ask for. Developers want to know what they are working with up front so there are no surprises. Subdividing is a rather expensive process that involves a large number of experts, and it is important for the City to be very clear about what the rules are. Staff interpretations drive up the cost for consumers. UPDATE ON EDMONDS WATERFRONT ACCESS STUDY AT -GRADE RAILROAD CROSSING ALTERNATIVES ANALYSIS Chair Lovell explained that his presentation is not an official briefing. He is a member of the Waterfront Access Study Task Force and volunteered to update the Planning Board on the process because he believes it is important that the Board and public are kept up-to-date on how the study is progressing. The primary source of information related to the study can be found on the City's website, including task force meeting agendas and minutes. He advised that the task force meets on the 2nd and 4tb Thursdays of each month at 7:00 p.m. in the Brackett Room at City Hall. The meetings are open to the public, although the task force does not solicit public comment at their regular meetings. Chair Lovell reported that two public open houses have been held pertaining to the study. At the first open house, the task force outlined the purpose of the study, as well as the approach they would take towards the challenge. The second open house was a work session where members of the public were allowed to walk through all of the proposed concepts being studied. Chair Lovell observed that the railroad has been in Edmonds for a very long time, and it is important to keep in mind that over -implementation of any access solution concept could alter the character of the City. There is a risk that solving the railroad crossing problems in Edmonds could result in turning the City into a railroad town rather than a waterfront town. Chair Lovell advised that the task force is comprised of five citizen representatives from the Edmonds community, as well as five representatives from the primary stakeholders: Burlington Northern Santa Fe (BNSF), Washington State Department of Transportation (WSDOT) Sound Transit (ST), Community Transit (CT), and Washington State Ferries (WSF). In addition to staff members who attend the task force meetings, the City has hired consultants from TetraTec and EnviroIssues to assist in the work. Chair Lovell provided an overview of the study schedule, noting that the project remains on schedule and the 2nd of five stages is currently underway. He reported that the task force has completed a technical analysis by observing, quantifying and documenting existing conditions at the Main Street and Dayton Street crossings. They have also reviewed data from previous studies and community input, compiled potential concepts to improve access and developed the following screening criteria: • Provide for continuous emergency response access. • Reduce delays to ferry loading/unloading. • Reduce delays and conflicts for pedestrians, bicyclists and motorists at the Dayton Street and Main Street railroad crossings. • Provide safe and efficient intermodal passenger connectivity between ferry, commuter rail, bus transit, pedestrian, bicycle and motor vehicle modes of travel. Chair Lovell reported that the task force has completed its Level 1 review of each of the concepts based on the initial criteria. He provided an aerial photograph to illustrate the scope of the study area and explained that the remaining concepts have been divided into the following categories: overpass solutions, underpass solutions, on -site solutions, operational solutions, railroad modifications, and ferry facility modifications. He summarized that most of the concepts focus on overpass solutions, underpass solutions and ferry facility modifications. However, some concepts suggest on -site solutions such as providing first aid training and stationing a response team on the water side of the tracks and putting in a helipad. Railroad improvements, such as running the trains only at night, relocating the trains to Kirkland, or moving the tracks to the east of downtown so the waterfront is not interrupted, were also suggested. Planning Board Minutes February 24, 2016 Page 6 Chair Lovell shared a series of maps to illustrate the location of the proposed overpass, underpass and ferry facility modification solutions that are currently under consideration. He briefly described each solution and provided examples of what the solutions might look like. He explained that as the process continues, the task force will drill down more deeply into the remaining concepts to include more graphics, related work descriptions, feasibility, cost estimates, etc. The remaining concepts will be developed into potential alternatives and the following additional evaluation criteria will be applied: • Is the concept feasible to implement? • Does the concept avoid environmental effects/impacts? • Does the concept avoid creating social and/or economic impacts? Chair Lovell explained that each solution's feasibility will be evaluated based on project cost, implementation timeframe, City Council approval/acceptance, stakeholder agency approval/acceptance, disruption during implementation, public acceptance/approval, regulatory approval, environmental considerations, etc. In addition to the criteria, each of the stakeholders (WSDOT, BNSF, WSF, ST and CT) all have concerns that need to be considered. Chair Lovell summarized that at its February 25`h meeting, the task force will review the outcome of the Level 1 screening workshop. The Level 1 screening process will be completed at the March 10`h meeting, and then the Level 2 screening process will begin. He advised that interim reports will be provided to the City Council, and updated information will be made available on the City's website. The public is invited to contribute comments and suggestions throughout the process, and an open house on the Level 2 outcomes will take place in June or July. Board Member Monroe asked if any funding sources have been identified to implement the preferred alternative, and Chair Lovell answered no. Board Member Monroe asked if funding would be provided via WSDOT or the City of Edmonds. Chair Lovell answered that there have been some peripheral discussions that indicate if the City could put forth some funding for the project, it would help serve as an impetus to glean more funds from stakeholders, as well as county, state and federal sources. Once a preferred alternative has been adopted, the City can begin the process of securing funds for implementation. Board Member Monroe asked if it would be safe to say that BNSF and WSDOT will not provide significant funding towards implementation. Chair Lovell said these opportunities are still on the table. Board Member Monroe cautioned that the City should not assume that WSDOT or BNSF would be reliable funding sources. Board Member Monroe asked if scheduling or program management is also being considered as a possible solution. Chair Lovell said there has been some effort on the part of CT, ST and WSF to coordinate schedules. His understanding is that the situation has gotten better, but more improvements are needed. A major concern is that access is blocked while the ferry is loading and unloading, which can disrupt not only traffic in Edmonds, but other nearby ferry terminals will feel the impacts, as well. The intent of the study is to find a solution to decrease the number of interruptions to the ferry and provide emergency access over the tracks. Board Member Monroe suggested that if one of the goals of the study is to eliminate ferry issues, perhaps WSDOT and/or WSF should be contributing more to the planning and funding. Board Member Robles expressed his belief that the conflict is between cars, ferries and the railroad, and calling it a safety issue is simply a diversion. If safety is the only concern, and vehicular access is not part of the equation, a simple pedestrian bridge over the railroad tracks would suffice. Chair Lovell pointed out that, in addition to ferry traffic, there are also residents who live on the water side of the tracks, as well as restaurants, retail establishments, office buildings and the marina. All of these people need regular access over or under the tracks. Board Member Monroe asked if WSDOT and WSF are sympathetic to the problem or if they believe it is the City's problem to resolve. Mr. Chave explained that it is not a single -agency problem, and that is why the stakeholders have all been invited to participate in the process. All of them have a particular problem they want to solve, and there will not be a single pool of money that will resolve all of the concerns. If everyone is at the table offering solutions that will solve multiple problems, it will be possible to access more than one set of funding. Planning Board Minutes February 24, 2016 Page 7 Board Member Monroe said it does not appear that BNSF has any problems to resolve. Mr. Chave said that do have periodic safety issue, and they are concerned about ferry riders interfering with their operations. He summarized that this is a huge problem and there are no simple and/or low-cost solutions. Board Member Stewart pointed out that the Edmonds Crossing Project is still identified in City plans. She expressed her belief that Edmonds Crossing is the best location for a solution. She can't imagine spending a significant amount of money to construct an elevated crossing, only to have it removed if and when Edmonds Crossing comes to fruition at some point in the future. Chair Lovell said he suspects that Edmonds Crossing will be one of the factors that is considered as the study progresses and they begin narrowing down the options. He said he is not sure the task force will ever be able to answer the question of whether or not Edmonds Crossing will be built in the future, and he is fairly certain that WSDOT cannot, either. Edmonds Crossing has been around a number of years, and a number of changes have occurred during that period of time. A new enclosed pedestrian walkway was installed for ferry riders and Sound Transit invested money to rebuild the Edmonds Station, including provisions for the second track. A few years ago, WSDOT offered a piece of land for private development. In exchange for the land, WSDOT would have required the developer to provide a pedestrian overpass at Railroad Avenue. However, no proposals were received due to the high number of requirements, and the project was abandoned. In addition, CT build a mini terminal adjacent to the WSDOT site. He summarized that a lot has been done by various agencies, investment wise, to create solutions to address their long-term needs. REVIEW OF EXTENDED AGENDA Chair Lovell reported that he and Vice Chair Rubenkonig met with Mr. Chave and Ms. Hope to discuss the issues that are coming up on the Board's agenda, particularly related to the Development Code update. Ms. Hope will update the extended agenda based on that discussion. Chair Lovell reminded the Board that their retreat is scheduled for March 9`' starting at 6:00 p.m. with a potluck dinner. He advised that the City Attorney would be available to present Part II of his training related to public meeting laws. Mr. Chave agreed to furnish the Board Members with materials from the Part I training session to refresh their memories. Chair Lovell reviewed a list of potential agenda topics that included: growth patterns and strategies; maintaining the City's character; Growth Management Act goals for jobs, housing and population growth; housing strategies; Americans with Disabilities Act requirements; mixed -use development; fringe rezoning; taller buildings; reprogramming large, single-family properties; and targeted areas of Edmonds such as Highway 99, Five Corners, Perrinville and Firdale Village. He invited the Board Members to share their thoughts on which topics they wanted to place on the agenda. In addition to the training provided by the City Engineer, the Board concurred that the main topic of discussion at the retreat should be housing alternatives as they relate to the Growth Management Act and whether or not the City can provide housing to accommodate the projected growth. PLANNING BOARD CHAIR COMMENTS Chair Lovell did not make any additional comments. PLANNING BOARD MEMBER COMMENTS None of the Board Members made additional comments. ADJOURNMENT The Board meeting was adjourned at 9:05 p.m. Planning Board Minutes February 24, 2016 Page 8 AI-8394 Planning Board Agenda Meeting Date: 03/09/2016 Presentation & Discussion on Open Public Meetings Act and Public Records Staff City Attorney Lead/Author: Department: Planning Initiated By: City Staff Information Subject/Purpose Presentation & Discussion on Open Public Meetings Act and Public Records Staff Recommendation N/A i Previous Board Action Previous training on "Appearance of Fairness" was provided by City Attorney Jeff Taraday on October 28, 2015 (see attached). Narrative The presentation from October 28th is attached. Attachments Attachment 1: October 28. 2015 presentation Edmonds Planning Board Training October 28, 2015 ' Lighthouse �� Law Grow Part 1 Appearance of Fairness Doctrine • Chapter 42.36 RCW Why the name? —Quasi-judicial hearings involving local land use matters must be fair in fact and must appear to be fair. Lighthouse L LawGroupp What does quasi-judicial mean? • acting like judges • not policy makers Lighthouse L LawGroupp When is it used? "...those actions of the legislative body, planning commission, hearing examiner, ..., or boards which determine the legal riahts. duties, or privileges of specific partie hearing or other contested case proceeding." RCW 42.36.010 L sing Lighthouse Law Group p- When is it NOT used? "legislative actions adopting, amending, or revising comprehensive, community, or neighborhood plans or other land use planning documents or the adoption of area - wide zoning ordinances or the adoption of a zoning amendment that is of area -wide significance." RCW 42-36-010 Lighthouse L LawGroupp What types of Edmonds applications? • Type 111-A (e.g. outdoor dining) • Type III-6 (e.g. design review before ADB; variances) • Type IV-B (site specific rezones) ' Lighthouse �� Law Grow Edmonds applications that are NOT subject to doctrine? • Type I (e.g. lot line adjustment) • Type II (e.g. preliminary short plat) • Type IV -A (e.g. final formal plat) 0 Type V (e.g. comp plan amendments) 0 Lighthouse L LawGroupp Ex Parte Communications — general rule "During the pendency of any quasi-judicial proceeding, no member of a decision - making body may engage in ex pane communications with opponents or proponents with respect to the proposal which is the subject of the proceeding..." RCW 42-36-060 0 Lighthouse L LawGroup Ex Parte Communications — exception, part 1 " unless that person: (1) Places on the record the substance of any written or oral ex pane communications concerning the decision of action; and RCW 42-36-060 0 Lighthouse L LawGroup Ex Parte Communications — exception, part 2 " and (2) Provides that a public announcement of the content of the communication and of the parties' rights to rebut the substance of the communication shall be made at each hearing where action is considered or taken on the subject to which the communication related." RCW 42-36-060 0 Lighthouse L LawGroup Ex Parte Communications — not precluded ... • "... seeking in a public hearing specific information or data from such parties relative to the decision if both the request and the results are a part of the record." • " ... correspondence between a citizen and his or her elected official if any such correspondence is made a part of the record when it pertains to the subject matter of aquasi-judicial proceeding." RCW 42.36.060 0 Lighthouse L LawGroup BIAS A decisionmaker may be challenged for: • prejudgment concerning issues of fact about parties • partiality evidencing a personal bias or personal prejudice signifying an attitude for or against a party (as distinguished from policy leanings of a decision maker) A challenger must present evidence of actual or potential bias to support an appearance of fairness claim. 0 Lighthouse L LawGroup Prior advisory proceedings "Participation by a member of a decision - making body in earlier proceedings that result in an advisory recommendation to a decision -making body shall not disqualify that person from participating in any subsequent quasi-judicial proceeding." RCW 42-36.070 0 Lighthouse L LawGroup Disqualification "Anyone seeking ... to disqualify a member of adecision-making body ... must raise the challenge as soon as the basis for disqualification is made known to the individual...." RCW 42-36-080 Lighthouse L LawGroup Lack of quorum? "In the event of a challenge ... which would cause a lack of a quorum or would result in a failure to obtain a majority vote ..., any such challenged member(s) shall be permitted to fully participate in the proceeding and vote as though the challenge had not occurred, if the member or members publicly disclose the basis for disqualification prior to rendering a decision." RCW 42.36.090 ' Lighthouse Law Grou What's wrong with ex pane communication? • Not fair *Could lead to wrong findings; not challenged • Hard to defend decision if evidence supporting decision is in the record 0 Lighthouse L LawGroup How to handle it when it happens? Try to cut it off Disclose at earliest opportunity Put substance on record Opportunity for rebuttal 0 Lighthouse L LawGroupp Script for chair, part 1 • Has any member of this decisionmaking body engaged in communication with opponents or proponents regarding the issues in this appeal outsi hearing process? de of the public 0 Lighthouse L LawGroup Script for chair, part 2 • Is there any member who has a conflict of interest or believes that he or she cannot hear and consider this application in a fair and objective manner? 0 Lighthouse L LawGroupp Script for chair, part 3 • Is there anyone in the audience who objects to my participation or to any other Board member's participation as a decisionmaker in this hearing? 0 Lighthouse L LawGroupp What to ask yourself? • Would a disinterested person, with knowledge of the totality of my personal interest or involvement, be reasonably justified in thinking that my involvement might affect my judgment? 0 Lighthouse L LawGroupp Record of the hearing • Ensure that there is a complete recording of the hearing. • No remarks away from the microphone. • All exhibits made part of record. 0 Lighthouse L LawGroupp Only one open record hearing! • All evidence must be introduced during the open record hearing. • City council is relying on you to ask all relevant questions. • Should request supplemental information for questions that cannot be resolved. 0 Lighthouse L LawGroupp Support your recommendation • Not enough to just vote to recommend • Make clear findings of fact • Expressly adopt, amend, or reject staff findings, as appropriate 0 Lighthouse L LawGroupp Take your time • Ask for drafting help, as necessary • Not required to make final recommendation on same night 0 Lighthouse L LawGroupp AI-8395 Planning Board Agenda Meeting Date: 03/09/2016 Discussion on Growth Patterns & Strategies for Edmonds Department: Planning Initiated By: City Staff Planning Board Information Subject/Purpose Discussion on Growth Patterns & Strategies for Edmonds Staff Recommendation N/A Previous Board Action N/A Narrative Topics for the discussion include: 5. a. A. GMA goals and growth -- population, housing, and employment 1. Growth strategies: e.g. Mixed use development, redevelopment and infill; alternative housing (e.g. ADUs); smaller units or targeted density increases; building design and standards for specific neighborhoods. 2. Opportunities: e.g. Highway 99 special area planning, potential for neighborhood centers (e.g. Westgate, 5 Corners, Firdale, other?). 3. Housing trends and needs: affordable housing, low income housing, AHA. 4. Other issues/considerations. B. Maintaining the 'character' of Edmonds in a growing region. C. Planning Board role. Attachments: 1. Shane Hope's presentation on Edmonds' future growth 2. Adopted Comprehensive Plan section on growth & capacity 3. Adopted Comprehensive Plan Housing Element 4. RCW addressing affordable housing programs 5. Affordable Housing Alliance (AHA) presentation on Edmonds housing profile (Edmonds is a member of the AHA) 6. Kirkland housing performance measures (included at the request of Careen) 7. ULI article: 13 Urban Trends to Watch Attachments Attachment 1: Presentation on future growth Attachment 2: Adopted Comprehensive Plan discussion of growth and capacity Attachment 3: Adopted Comprehensive Plan Housing Element Attachment 4: RCW addressing affordable housing programs Attachment 5: AHA presentation Attachment 6: Kirkland housing performance measures Attachment 7: ULI - 13 Urban Trends to Watch x , 00 , IN r A ROM - Ilk ILI r7q�. •.r. '4.:w y �.�`'. 1 fir' _-t. Photo credit: Janine Harles Shane Hope, AICP Development Services Director City of Edmonds shane.hope@edmondswa.gov Washington State is the 8th fastest growing state in the nation over the last 5 years. The Future of Edmonds: Will We Be Just Like Bellevue? Where are People Moving From? % of Washington in -migration from specific states (2014) 2.1 % 5.8 18.2% 3.1 % 3.0% 2.9% AN*.- 3 Source: American Community Survey 1-yr data, 2014 The Future of Edmonds: Will We Be Just Like Bellevue? Where are People Moving From? Edmonds 62 Bellevue ■ Same house 1 year ago 11.8% Same county 13% Different county within same state Different state 4.4% From abroad 3.5% of total movers coming from abroad (of those who moved during the previous year) Washington State 4.6% Bellevue 16.7% Edmonds 8.3% Source: American Community Survey 5-yr data, 2010-2014 The Future of Edmonds: Will We Be Just Like Bellevue? Population growth from natural increase Natural increase accounted for approximately 38.4% of population growth statewide in 2015 Washington State Edmonds 55/1,000 51/1,000 25/1,000 Source: American Community Survey 5-yr data, 2010-2014 The Future of Edmonds: Will We Be Just Like Bellevue? This is a map of the Regional Growth Strategy including the location The Regional Growth of regional geographies, i_._ - SN0+I0MISH COUNTY designated regional centers, and major transportation corridors. Strategy seeks to: E - • minimize the '�• environmental impact; KIND COUNTY - �?�� Bellevue Bremerm -._ . • improve mobility; KITSAP J COUNTY • make efficient use of m existing urban land... • n — wM.arw ar it — canoe-nww.a., PIERCE COUNTY .cap wud.a�w. w. Source: PSRC, Vision 2040, 2009 The Future of Edmonds: Will We Be Just Like Bellevue? 1 Existing Housing Mix 70% 60% Lu 40% CM 10% 0% SFR MFR 0 King County 0 Snohomish County Bellevue Edmonds N O 0 Mobile hl Future '+f FdmnndS' Will WP Be Just ike Bellevue? Age Dependency Ratio Shown as the proportion of dependents per 100 working -age population r Median 46.9 37.9 Age (years) Old -age 30.8% 21.5% Dependency Ratio Child 27.7% 31.6% Dependency Ratio Source: American Community Survey 5-yr data, 2010-2014 The Future of Edmonds: Will We Be Just Like Bellevue? Housing Tenure Total Housing Units Vacant Owner Occupied Renter Occupied L Edmonds 1%693 6.7% 64.1% 29.2 57,370 7.2% 52.3% 40.5 Source: American Community Survey 5-yr data, 2010-2014 The Future of Edmonds: Will We Be Just Like Bellevue? Employment 2010 total emp. 13,251 127,538 2010 jobs/capita .33 1.04 2035 proj. emp. 16,046 155,084 2035 jobs/capita .35 1.30 Source: PSRC and Office of Financial Management ➢ The central Puget Sound region grew by 1.6% between 2014 and 2015, marking the fourth consecutive year of increased annual growth. ➢ While King County added the most people, Snohomish County surpassed other counties by percent of growth — 2.2% in 2014-2015. ➢ Snohomish County projects to be the fastest growing county in the state. The past is not a good indicator of the future. ➢ Between 2000 and 2010, the City's population grew at an average rate of 19.4 persons/year. ➢ Since 2010, the City grew at an average rate of 295.3 persons/year. a Edmonds is projected to grow by an average of 2453 persons/year for the next 20 years. The Future of Edmonds � 1 Historic Growth vs. Projected Growth 50 45 40 35 c M 30 s �C-. 25 c 0 0 20 3 a 0 a 15 10 5 0 144.8% 97.7% 29.9% 23.0% / 140% 120% 100% s +, 3 80% 0 c 60% v 49.4 % — a 40% 14.3% 12.5% 20% 8.4% 7.8% o 0 3.9% 7.0%5.5/0 5.2/ nn n I I 0.2% 0.2% �:O 0.7% 0.7% I I I I ,mot 0% �Cp ��� ti ti ti ti ti ti ,LO ,tiO .LO ,10 Projected Growth Targets ❑ Historic Growth ❑ Percent Growth (5-yr period) The question is not will we grow, but rather how will we grow. The City will need creative solutions to house projected population increases. The Future of Edmonds What will future growth look like? In -fill Development Detached Accessory Mixed -use Dwelling Units The Future of Edmonds What will future growth look like? • Makes use of vacant of under-utilized parcels • May increase density by subdividing large lots Infill Development The Future of Edmonds What will future growth look like? Detached Accessory Dwelling Units • Provides affordable housing options • May be used to house elderly parents • Increases density without significantly altering existing character of a neighborhood The Future of Edmonds What will future growth look like? yL : h tL Mixed -use • Improves walkability of a neighborhood • Reduces dependency on cars • May increase affordable housing options The Future of Edmonds • Highway 99 Corridor H i h wa 9 9 Subarea Subarea Planning Project g y PlanningProject .r rsa Mdl� ; 'LL , 6L 3allinger Park _ - .. Inounllake Ten ace . k IaR 0 o.125 0,25 D.5 Mlles Legend • aR,awe. 2gning comm.m�a 0 Fxieonp Bunging FampAnt Single Family BN NeWbo,FooG Boe—, O Pmposetl HP!l A68 r a RS-B Sl &I'* 9,OW w. k 0.de BC Commgnrry BwNrou ��J RSW-12 Wekrtrvnr. ' Fam�b,,t000 eq,ft bA cc co..r., com��rat MUMI Family C32 0-1-1 RM3 MUMFamdy. 3.Gb0 m. k.W btxn wunY DIMr — RM-2a Mum FemJy, 2aW a9_R.Nbl area,a ung u M m ee — RN-15 Minh Fenury.t�o eq. #.Nbl aee peruntl PPVGIKUe The Future of Edmonds Light rail northern link PROJECT BENEFITS ➢ 8.5 Miles of new light rail service ➢ Northgate to Lynnwood with several new light rail stations ➢ Frequent, reliable service between south Snohomish County and other regional destinations ➢ Increased mobility, access, and transportation capacity ➢ Target opening for service 2023 Map Key Potential Stations 000 Potential Added Parking Potential Routes At -grade and elevated tracks or a combination of both will be evaluated for each route option. Lynnwood ;, 'S' Edmonds 200th St SW Lynnwood Community College Transit Center i �s Edmonds 212th St SW Segment C IPremera Blue Crass ¢' 220th St SW y te One route option F , `r' 220west S 5 serves stab a e g m e nt �24th 5t SW station, E-- ne option does not. Mountlake ountlake Terrace Terrace Library Mou ntla e Freeway Station.236th St sWTerrace Mountlake Terrace Transit Center Snohomt'sh County -----King County --N2D5thSt .—. —— — — — — 99 As we think about what our city will look like in 20 years... • What type of businesses will we attract? • What type of services will we need? Think about the characteristics we want to preserve and what we want to improve. The Future of Edmonds ne Harles . 44.►e Walkability M- , ' . i ` ML Jf 1 1 1� .A* •112[6l2[• -MR! ..� Parks 'tT# Mk I 4 -'` Photo credit: Janine Harles Waterfront Access Photo credit: Janine Harles • Livability M *1 4FW%- A t tr 40 V �h 0 Questions? ��� h. -�kftw ]F,!-w Photo credit: Janine Harles Photo credit: Janine Harles Land Capacity Background The Growth Mangement Act (GMA) provides the framework for planning at all levels in Washington State. Under the mandate of the GMA (RCW 36.70A.215), local governments are required to evaluate the density and capacity for Urban Growth Areas (UGAs). Edmonds has been allocated population, housing, and employment growth targets through County Planning Policies. Population projections are based on the official 20-year population projections for Snohomish County from the Office of Financial Management and distributed as represented in Puget Sound Regional Council's Vision 2040 Regional Growth Strategy. Edmonds is considered a Larger City for regional growth strategy purposes. The Larger City designation is applied to cities that have a combined population and employment total over 22,500. Currently, eighteen cities are grouped in the Larger City designation. As a group, these cities are expected to accommodate 14 percent of the region's projected population growth and 12 percent of the regional projected employment growth. The 2035 population target for Edmonds is 45,550 persons, up 14.4 percent from the 2011 population estimate of 39,800. To accommodate the targeted growth, Edmonds will require approximately 2,772 new housing units and 2,269 new jobs by 2035. To maintain consistency with the 2012 Buildable Lands Report, the 2011 population, housing, and employment estimates are referenced in the Land Capacity Element. The estimated 2013 population is 40,381. Figure 10 summarizes available GIS data on land supply in Edmonds as it existed in 2014. Developed acres include the entire parcel boundaries that contained development, not just the building footprint. Developed Lands Vacant Lands Land Use Total Acres % of Total % of Total Acres Acres Acres Acres Residential 3,959.90 3,794.00 64.1% 165.90 2.8% Single -Family 3,608.4 3,460.8 58.5% 147.6 2.5% Multi -Family 351.5 333.2 5.6% 18.3 0.3% Commercial* 423.1 380.9 6.4% 42.2 0.7% Public Facilities 1,532.0 1,529.1 25.9% 2.9 0.05% Parks and Open Space 340.7 340.7 5.8% Other Public Facilities 64.8 61.9 1.1% 2.9 0.05% Rights -of -Way 1,126.5 1,126.5 19.0% 5,915.0 5,704.0 F 96.4% 211.0 3.69/6 Source: City of Edmonds GIS data, June-2015 *Some commercial properties include residential development as a type of mixed use. Note: Measurement ofacreage may vary depending on the methodology used and the date data was retrieved. Figure 10: City of Edmonds Land Supply Data Overall, approximately 4 percent of the City's land was vacant in 2014. Of the vacant lands available, 72.1 percent are designated for residential use, 25.6 percent are designated for mixed use, 16.8 percent are for public use, and 9.9 percent represent the Edmonds Marsh. Land Use 36 For a more in-depth study, the 2012 Buildable Lands Report (BLR) developed build -out capacity estimates for vacant and under -developed parcels. Using a process developed by Snohomish County Tomorrow, the BLR was prepared in 2012 and adopted by the Snohomish County Council in June 2013. This report provided the city with the necessary information to complete a development capacity analysis. Additional Housing Unit Capacity Additional Housing Unit Capacity Additional Population Capacity Additional Employment (before reductions) (after reductions) (after reductions) Capacity (after SF I MF JSr. Apts Total SF I MF JSr. is Total SF I F ISr.Aptsl Total reductions) Buildable Lands Report 561 1 2,381 1 484 1 3,424 444 1 1,868 1 334 2,646 1,236 1 3,437 1 3931 5,065 2,820 Figure 11: Summary of 2012 Buildable Lands Report Given the limited supply of vacant land within the city, capacity estimates were not calculated strictly on the amount of vacant buildable land, but also on increased densities and intensity of redevelopment within various areas of the city. Different methods of development were targeted to provide additional residential capacity. For example, accessory dwelling units (ADUs) were one method of attempting to supplement capacity in single family neighborhoods, while encouraging mixed use development in commercial areas provided for additional capacity in areas already experiencing a higher level of activity. Planned Residential Developments (PRDs) were also targeted as a way of assuring maximum buildout of single -family -zoned areas while maintaining the character of the city. Following adoption of the 1995 comprehensive plan, the city embarked on an implementation program to achieve the goals identified in the plan. Many of these implementation measures are described in the Housing Element under the discussion of "strategies to promote affordable housing." These measures were taken by the city to address issues related to both capacity and affordable housing. A key feature of Edmonds' Comprehensive Plan is its emphasis on mixed use development, which includes both commercial and residential uses on a single lot or combination of lots. For example, a mixed use development could include a two-story development with residential dwelling units on the second floor and offices, shops or other commercial uses on the ground floor, or it could consist of a mixture of uses arranged in proximity to each other. Mixed use development is allowed in both of the city's Activity Centers and Corridor development areas. In the 1995 comprehensive plan, mixed use development was to be allowed under all the alternatives considered, but would only be encouraged under the adopted "Designed Infill" alternative. The encouragement of mixed use development continues as a basic assumption underlying the current comprehensive plan. This basic approach is embodied in much of the development that has occurred in recent years. The importance of mixed use in the city's land use pattern can be seen in Figure 12. Land Use 37 Other Public Facilities,_ Rights -of -Way, 19.0% 1.1% Parks, 5.83,._ Commercial/ Mixed Use*, 7.2% Multi -Family, 5.9%_ i Single -Family, 61.0% Figure 12: General Zoning Categories by percent of City Land Area Source: City of Edmonds GIS, June-2015 *Some commercial properties include residential development as a type of mixed use. Note: Measurement of acreage may vary depending on the methodology used and the date data was retrieved. Population and Employment Capacity The 2012 Buildable Lands Report (BLR) shows Edmonds to have an additional housing capacity of 2,646 units through the year 2035, which would be needed to accommodate a total population of 45,550 residents. Since the BLR was finalized in 2012, some of the assumptions regarding buildable lands have changed. During the 2015 Comprehensive Plan update, city staff considered how these changes affected capacity projections. For example, recent plans by the City to encourage mixed -use development in the Neighborhood Business zoned areas of Westgate and Five Corners, plus the removal of restrictions on first and second floor residential development in CG and CG2 zones along the Highway 99 corridor, should provide the city with additional housing, employment, and population capacities not considered in the 2012 BLR. In total, the City conservatively estimates these actions can increase the land capacity by approximately 267 additional net housing units by applying the same methodology used in the Buildable Lands Report. With these adjustments, the City estimates a total capacity of 3,039 additional housing units by the year 2035. The projected housing need to accommodate the targeted population growth is 2,790 housing units as determined by the Countywide Planning Policies. This represents an increase of 15 percent from the estimate of 18,396 housing units in 2011.The land capacity analysis, combined with the goals and policies in the Comprehensive Plan, indicate that the 2035 targets for population and Land Use 38 employment can be accommodated by the City. A summary of historical growth and the 2035 population and housing targets is presented in Figure 13. The adopted 2035 employment target for Edmonds is 13,948 jobs. This represents an increase of 19.4 percent from the 2011 estimate of 11,679 jobs within the City. The 2012 Buildable Lands analysis shows a potential capacity increase of 2,820 employees by 2035, which has been increased to 3,522 using the same analysis employed in reviewing the housing and population capacity discussed above. The 2013 employment estimate was 13,232. The City should consider using incentives to achieve redevelopment and infill goals and zoning incentives or other measures to ensure that land adjacent to infrastructure facilities is utilized to maximize the economic and environmental benefits of that infrastructure. Improvements that encourage redevelopment along the Highway 99 Corridor are of interest to the City. Given the extent to which future land use policies, regulations, demographics, and market forces could affect land capacity estimates, it is important that development trends and remaining land supply within the city is regularly monitored to ensure the continued supply of adequate urban land throughout the 20-year GMA planning horizon. Implementation strategies should include development of a long-term program to monitor the city's progress towards goals contained in the Comprehensive Plan. As part of the monitoring process, the city should work with the public, environmental and business leaders, interest groups, cities and other agencies to develop detailed monitoring criteria or "benchmarks" that could be used to measure progress and identify the need for corrective action. Specific implementation measures should seek to reduce barriers or impediments to development. For example, measures that reduce the regulatory compliance burden of the private sector, if successful, would reduce the cost imposed by such regulations. Similarly, implementation measures that are designed to encourage flexibility could also help reduce compliance costs — at least on a case - by -case basis. Specific measures could include: provision of flexible development standards; density bonuses for site designs that provide public benefits; and fee waivers or expedited review that lower financial development risks 50 45 40 v 35 t 30 25 0 20 a 0 a 15 10 le 9a� �ye� tip` tip° ti� ti9�� 1��h ti�� trap ti�� 1� tidy° ycQ ryo1� �pti ryoti0 ryoyh ryo�d ryo�h ■ Growth Targets ■ Historic Growth ❑ Percent Growth (5-yr period) Figure 13: Edmonds Historic Growth vs. Projected Growth Source: US Census; Puget Sound Regional Council 140% 120% 100% 80% 60% 40% 20% 0% Land Use 39 • housing, along with cultural and environmental goals. • Coneurreney -Coordinate the plans and actions of both the public and private sectors. • Urban design - Provide a context for urban design guidelines that maximize predictability while assuring a consistent and coherent character of development. • Adaptive reuse - Provide incentives to encourage adaptive reuse as an alternative to redevelopment of historic structures in order to preserve these resources. Downtown/Waterfront Activity Center Plan Context. A number of public plans and projects have been taking shape in recent years, and these could have a profound impact on the future of the city's downtown/waterfront area. Some of these ongoing activities include: • Increased concern about conflicts and safety issues related to the interaction of rail, ferry, vehicular and pedestrian traffic. • Transportation planning to accommodate ferry traffic, including options for a reservation system, additional parking for ferry users, and the possible Edmonds Crossing multimodal project. The latter project would move the existing ferry terminal at the base of Main Street to a new multimodal transportation center at Pt. Edwards. • Marina Beach planning to provide for enhanced recreational uses and the meeting of Willow Creek with Puget Sound. • Continued development of the city's waterfront parks and walkways into an interconnected necklace of public spaces. • The Edmonds Senior Center is undertaking strategic planning to look at its facilities, programs, and services. • Public access to the water and the natural beauty of the waterfront figures prominently in the Port of Edmonds' plans, including new plazas, improved walkways and public art. Public pedestrian/bicycle access across the railroad tracks to the waterfront, in the vicinity of the south end of the marina, near Marina Beach Park, should remain a high priority. • Arts plans continue to be implemented throughout the downtown, including such projects as the Edmonds Center for the Arts, the Artworks facility, and the continued expansion of downtown festivals and events. • Edmonds Community College has expanded its downtown presence through initiatives with the Edmonds Conference Center (formerly the Edmonds Floral Conference Center) and is working with the Edmonds Center for the Arts to enhance overall operations. Land Use 40 Housing Element Introduction. This section looks at the character and diversity of housing in the City of Edmonds. Part of this process includes looking at housing types and affordability. The goal of this section is to provide the necessary information to anticipate housing needs. General Background According to the Office of Financial Management (OFM), there were an estimated 18,378 housing units within the City of Edmonds in 2010. This represents an increase of 5 percent in the city's housing stock since 2000, when there were 17,508 housing units. In comparison, over the period 1990-2000, the city's housing stock grew 35.2 percent, or approximately 3.5 percent per year. This increase is largely explained by annexations that occured during the 1990s in the south and southwest portions of the city. Figure 21 summarizes recent growth trends and forecasts for the City of Edmonds. Of the total stock of housing in 2010, 11,685 (63.5 percent) were single family units, 6,664 (36.3 percent) were multi -family units, and 29 (0.2 percent) were mobile homes or trailers. Compared with Snohomish County as a whole, Edmonds has a lower percentage of single-family homes (63.6 percent vs. 66.9 percent, respectively) and mobile homes (0.2 percent vs. 6.8 percent, respectively) and a higher proportion of multi -family homes (36.3 percent vs. 26.4 percent, respectively). Much of the existing housing stock was built between 1950 and 1969 (see Figure 22) as Edmonds annexed lands east on Main Street, through Five Corners, and over to the western side of Lake Ballinger. As part of the greater Seattle metropolitan area, Edmonds experienced growth earlier than most in Snohomish County. Housing Units Increase Percent Increase Avg. Annual Increase Census: 1980 10,702 1990 12,245 1,543 21.0% 1.9% 2000 17,508 5,263 35.2% 3.1% 2010 18,378 870 5.0% 0.5% Growth Target: 2035 21,168 2,790 15.2% 0.6% Figure 21: City of Edmonds Housing Growth Source: US Census; Snohomish County Tomorrow Housing 79 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1949 or earlier 1950 to 1969 1970 to 1989 1990 to 1999 2000 or later ❑ Edmonds ❑ King County ■ Snohomish County Figure 22: Age Distribution of Housing Stock, City of Edmonds and Snohomish County Source: American Community Survey Household Characteristics At the time of the 2010 Census, Edmonds Housing stock was approximately 94.6 percent occupied. The average household size has declined since 1990, when it was 2.37 persons, to 2.26 persons in 2010. The average household size within the city is expected to decrease to approximately 2.2 persons by 2035 (Snohomish County Tomorrow, 2013). Understanding how the City's population is changing offers insight for planning housing types that will be in demand. Based on Census data, residents of Edmonds are older than those of Snohomish County, taken as a whole. In 2000, the median age of Edmonds residents was 42.0 years, compared with 34.7 years countywide. By 2010, the median age in Edmonds had increased to 46.3 years, compared to 37.1 years countywide. During the same period, the population of Edmonds residents, 14 years of age and younger, shrank in each age category (Figure 24). A natural increase in population is likely to decline as the female population ages beyond childbearing age. These trends are consistent with national trends. Housing 80 90 + 85 - 89 80 - 84 75 - 79 70 - 74 65 - 69 60 - 64 55 - 59 50 - 54 45 - 49 40 - 44 35 - 39 30 - 34 25 - 29 20 - 24 15-19 10 - 14 5-9 0-4 2,0 1 00 1,509 1,000 509 0 500 1,000 1,500 2,000 2,500 ■ 2010 ■ 2000 Figure 23: Edmonds Population Pyramid Source: US Census Bureau, 2000 and 2010 15°/a 10% 5% 0% -5% -10% -15% 20°/ - o Age Groups 0 to 4 5 to 9 10 to 14 ❑ Edmonds ■ Snohomish ■ Washington State Figure 24: Population Growth of Children 14 years of Age and Younger, 2000 to 2010 Source: US Census Bureau, 2000 and 2010 Housing 81 Household Income: In general, residents of Edmonds earn relatively more income than residents of Snohomish County as a whole. The Edmonds' median household income was $67,228 according to the 2011-2013 American Community Survey 3-year data, similar to the County median of $67,192. This is in contrast to per capita income, which is substantially higher in Edmonds compared to Snohomish County ($40,892 vs. $31,049, respectively). These figures reflect Edmonds' relatively smaller household sizes. Housing Ownership: According to the 2000 Census, 68.1 percent of the housing units within the city were owner -occupied and 31.9 percent were renter -occupied. This represented an increase in owner - occupancy from the 65.3 percent reported in the 1990 Census. The trend continued into 2010, with 69 percent of the City's housing being occupied by owners. The direction of the trend in housing occupancy is similar for Snohomish County as a whole, although ownership rates countywide were slightly lower in 2010, at 67 percent. Housing Values: According to the 2011-2013 ACS 3-year data, the median value of owner -occupied units had increased to $371,700 in Edmonds and $276,800 in Snohomish County, with Edmonds approximately 34.3 percent higher than the countywide median. Within Edmonds, median housing values vary considerably between neighborhoods; the highest valued homes are found along the waterfront, while the lowest values are found within interior neighborhoods and east of Highway 99. Housing Affordability: For the purposes of calculating the housing affordability in Edmonds, this document uses the median income for the Seattle -Bellevue HUD Fair Market Rent Area (HMFA) instead of the Snohomish County Area Median Income (AMI). The Seattle -Bellevue AMI is used as Edmonds is considered a suburb of Seattle, not Everett. The 2013 HMFA AMI for Seattle -Bellevue is $86,700, which is the same as Snohomish County's AMI at $86,700. The 2013 median household income for Edmonds is $67,192. AMI is an important calculation used by many agencies to measure housing affordability. Standard income levels are as follows: • Extremely low income: <30 percent AMI • Very Low Income: between 30 and 50 percent AMI • Low Income: between 50 and 80 percent AMI • Moderate income: between 80 and 95 percent AMI • Middle Income: between 95 and 120 percent AMI Using rental data obtained from Dupre and Scott by the Alliance for Housing Affordability (AHA), Figure 25 provides a clearer view of what a household looking for a home in Edmonds would expect to pay for rent and utilities. The data includes both single family and multifamily rental units. Housing sizes and the corresponding minimum income required for a full time worker to afford the home are listed. For example, a family of four searching for a 3 bedroom unit could expect to pay on average $1,679 per month for rent and utilities. In order to afford housing, the family would need an annual income of $67,160. Housing 82 Average Rent (w/ Utilities) Minimum Income Required Lowest Rent Highest Rent Per Hour Annual Studio $ 833 $ 16.02 $ 33,320 $ 546 $ 1,187 1 Bedroom $ 887 $ 17.06 $ 35,480 $ 662 $ 1,521 2 Bedroom $ 1,097 $ 21.10 $ 43,880 $ 777 $ 1,916 3 Bedroom $ 1,679 $ 32.29 $ 67,160 $ 1,094 $ 4,215 4 Bedroom $ 2,545 $ 48.94 $ 101,800 $ 1,947 $ 41347 5 Bedroom $ 2,844 $ 54.69 $ 113,760 $ 2,276 $ 3,771 Figure 25: Average Rent and Affordability (housing plus utilities) by Size Source: Dupree and Scott, 2013; National Low Income Housing Coalition, 2014 Figure 26 shows the distribution of rent affordability at different income levels using the Seattle - Bellevue AMI. "Yes" means that the average rent is affordable to a household at that income level, adjusting for size, "Limited" means that the average rent is not affordable but there are lower end affordable units, and "No" means that the entire rent range is not affordable. As seen below, a four bedroom home is not affordable for persons with a household income at 80 percent or below of the HFMA AMI. Income Level Number of Bedrooms Studio 1 2 3 4+ Extrememly Low No No No No No Very Low Limited limited Limited Limited No Low Yes Yes Yes Limited No Moderate Yes Yes Yes Yes Limited Middle Yes Yes Yes Yes Yes Figure 26: Distribution of Rent Affordability by Size Source: Dupree and Scott, 2013 Between 2008 and 2012, 85 percent of home sales in Edmonds were three or four bedrooms in size according to County records. According to tax assessor data, the 2012 median sales price for a single family home in Edmonds was $339,975. Assuming a 20 percent down payment and using average rates of interest, taxes, utilities, and insurance as determined by the Federal Housing Funding Board, the monthly payment for this home would be $1,895. For a family to not be cost burdened, they would require an annual income of at least $75,796, which is above the City's median income. Figure 27 shows that the percentage of home sales affordable to each income level has changed between 2008 and 2012. Housing 83 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Extremely Very Low Low Moderate Middle Low Figure 27: Home Sales Affordability, 2008-2012 Source: Dupree and Scott, 2013 2008 2009 2010 2011 2012 Housing Needs: Edmonds is targeted to grow from a 2013 population of 40,381 to 45,550 by 2035. This translates to an estimated need of 2,790 housing units in the city to accommodate the targeted growth. The Buildable Lands Report for Snohomish County indicates that the majority of this increase will be in redevelopment occurring on multifamily properties, including mixed use projects. Because the City of Edmonds does not construct housing itself, the housing targets are helpful in assessing needs and providing a sense of the policy challenges that exist. Future housing needs will be met by a combination of the housing market, housing authorities, and governmental housing agencies. However, the City of Edmonds can do things to assist in accommodating projected housing needs, such as adjusting zoning and land use regulations. The City may also be able to assist in supporting the quality of housing through progressive building codes and programs for healthy living. Forecasting future housing needs for specific populations and income ranges is difficult. One method to arrive at an initial estimate of housing needs is to take the Edmonds' housing target (2,790) and apply the countywide breakdown for each income group. Data shown in Error! Reference source not found.29 is based on household income from the 5-year American Community Survey in 2007- 2011. The City of Edmonds will take into account local population and housing characteristics when determining housing targets. Total Projected Under 30%AMI 30-50%AMI 50-80%AMI Jurisdiction Housing Unit Housing Need Housing Need Housing Need Growth Need (11% of Total) (11% of Total) (17% of Total) Edmonds 2,790 307 307 474 Figure 28: Projected Housing Need Source: Snohomish County Tomorrow, "Housing Characteristics and Needs in Snohomish County," 2014 Housing 84 As previously mentioned, the median age of Edmonds residents is the highest in Snohomish County at 48.1 years compared to 37.5 years countywide (2011-2013 American Community Survey) and second highest of Washington state cities with a population of 25,000 or more. In 2011, the first persons of the Baby Boom generation turned 65 years of age and represent, what demographers project, the fastest growing age group over the next 20 years. An older population will require specific needs if they are to "age in place." In Edmonds, the effects may be particularly strong. Developing healthy, walkable communities with nearby retail and transit options will help an aging population retain their independence. Assisted Housing Availability: In 1995 there were two HUD -assisted developments providing a total of 87 units for low-income, senior residents within the City of Edmonds. This was more than doubled by a new development approved in 2004 for an additional 94 units. Since 1995, 167 assisted care living units have been built in the downtown area, specifically targeting senior housing needs. Although the Housing Authority of Snohomish County did not operate any public housing units within Edmonds prior to 1995, it purchased an existing housing complex totaling 131 units in 2002. The Housing Authority continues to administer 124 Section 8 rent supplement certificates and vouchers within the city. In addition, there are currently 36 adult family homes providing shelter for 187 residents. This is a substantial increase from the 13 adult family homes providing shelter for 66 residents in 1995. Growth Management goals and policies contained in the City's Comprehensive Plan encourage availability of resources to ensure basic community services and ample provisions made for necessary open space, parks and other recreation facilities; preservation of light (including direct sunlight), privacy, views, open spaces, shorelines and other natural features, and freedom from air, water, noise and visual pollution; and a balanced mixture of income and age groups. Land Use policies encourage strategic planning for development and redevelopment that achieve a balanced and coordinated approach to economic development, housing and cultural goals; and encourage a more active and vital setting for new businesses supported by nearby residents, downtown commercial activity and visitors throughout the area. Policies encourage identification and maintenance of significant public and private social areas, cultural facilities, and scenic areas; and maintenance and preservation of historical sites. Commercial Land Use policies encourage identification and reservation of sufficient sites suited for a variety of commercial uses. Housing goals are directed toward providing housing opportunities for all segments of the city's households; supporting existing neighborhoods and preserving/rehabilitating the housing stock; maintaining high quality residential environments; and providing assistance to developing housing for special needs populations, such as senior, disabled and low-income households. These goals are supported by policies which include review of regulatory impediments to control of housing costs and affirmative measures to support construction of housing for protected groups; encouraging expansion of the types of housing available, including accessory dwelling units, mixed use, and multi -family housing; flexible development standards; and review and revision of development regulations, including assessing the feasibility of establishing time limits for permitting; consolidating permitting; implementing administrative permitting procedures and instituting preapplication hearings. Other measures to mitigate potential housing impacts include determining whether any public land is available which could be used to help meet affordable housing targets; development of a strategy plan, including target number of units and development timeline; technical assistance programs or information to encourage housing rehabilitation and development of accessory units; and a strong monitoring program with mid -course correction features (see the discussion below). Housing 85 Strategies to Promote Affordable Housing. In order to respond to the continuing need to provide affordable housing for the community, the City has undertaken a series of reasonable measures to accomplish this goal, consistent with the policy direction indicated by Snohomish County Tomorrow and the Countywide Planning Policies. These reasonable measures or strategies to promote affordable housing include: Land Use Strategies • Upzoning. The City upzoned a substantial area of previously large lot (12,000+ square foot lots) zoning to ensure that densities can be obtained of at least 4.0 dwelling units per acre. The City has also approved changes to its zoning codes to encourage more multifamily development in mixed use areas, especially in corridors served by transit (e.g. Highway 99 along the Swift high capacity transit corridor). • Density Bonus. A targeted density bonus is offered for the provision of low income senior housing in the City. Parking requirements are also reduced for this housing type, making the density obtainable at lower site development cost. • Cluster Subdivisions. This is accomplished in the city through the use of PRDs. In Edmonds, a PRD is defined as an alternate form of subdivision, thereby encouraging its use as a normal form of development. In addition, PRDs follow essentially the same approval process as that of a subdivision. • Planned Residential Development (PRD). The City has refined and broadened the applicability of its PRD regulations. PRDs can still be used to encourage the protection of environmentally sensitive lands; however, PRDs can also be used to encourage infill development and flexible housing types. • Infill Development. The City's principal policy direction is aimed at encouraging infill development consistent with its neighborhoods and community character. This overall plan direction has been termed "designed infill" and can be seen in the City's emphasis and continued work on streamlining permitting, revising codes to provide more flexible standards, and improving its design guidelines. The City is also continuing the process of developing new codes supporting mixed use development in key locations supported by transit and linked to nearby neighborhoods. Conversion/Adaptive Reuse. The City has established a historic preservation program intended to support the preservation and adaptive reuse of existing buildings, especially in the historic downtown center. Part of the direction of the plans and regulations for the Downtown/Waterfront area is to provide more flexible standards that can help businesses move into older buildings and adapt old homes to commercial or mixed use spaces. An example is the ability of buildings on the Edmonds Register of Historic Places to get an exception for parking for projects that retain the historic character of the site. Housing 86 Administrative Procedures Streamlined approval processing. The City generally uses either a Hearing Examiner or staff to review and issue discretionary land use decisions, thereby reducing permitting timelines and providing an increased degree of certainty to the process. The City continues to provide and improve on an extensive array of information forms and handouts explaining its permitting processes and standards. The City has also established standards for permit review times, tailored to the type and complexity of the project. For example, the mean processing time for processing land use permits in 2011 was 36 days, less than one-third of the 120-day standard encouraged by the State's Regulatory Reform act. • Use -by -Right. The City has been actively reviewing its schedule of uses and how they are divided between uses that are permitted outright vs. permitted by some form of conditional use. The City has expanded this effort to include providing clearer standards, allowing more approvals to be referred to staff instead of the Hearing Examiner hearing process. Impact mitigation payment deferral. The City's traffic mitigation impact fees are assessed at the time of development permit application, but are not collected until just prior to occupancy. This provides predictability while also minimizing "carrying costs" of financing. Development Standards • Front yard or side yard setback requirements. Some of the City's zones have no front or side yard setback requirements, such as in the downtown mixed use zones. In single family zones, average front setbacks can be used to reduce otherwise required front yard setbacks. • Zero lot line. This type of development pattern can be achieved using the City's PRD process, which is implemented as an alternative form of subdivision. • Street design and construction. Edmonds has adopted a `complete streets' policy. Street standards are reviewed and updated periodically, taking advantage of new technologies whenever possible. A comprehensive review and update of the city's codes is underway. • Alleys. The City has an extensive system of alleys in the downtown area and makes use of these in both mixed use and residential developments. • Off-street parking requirements. The City has substantially revised its off-street parking standards, reducing the parking ratios required for multifamily development and in some mixed use areas, thereby reducing housing costs and encouraging more housing in areas that are walkable or served by transit. • Sanitary Sewer, Water, and Stormwater systems. Innovative techniques are explored and utilized in both new systems and in the maintenance of existing infrastructure. Housing 87 Low -Cost Housing Types • Accessory dwellings. The City substantially revised its accessory dwelling regulations, providing clearer standards and streamlining their approval as a standard option for any single family lot. Mixed -use development. The City has strengthened and expanded its mixed use development approach. Downtown mixed use development no longer has a density cap, and this — combined other regulatory changes — has resulted in residential floor space drawing even with commercial floor space in new developments in the downtown area. Mixed use zoning was applied in the Westgate Corridor, and revised mixed use development regulations have been updated and intensified in the Hospital/Highway 99 Activity Center as well as along Highway 99. • Mobile/manufactured housing. The City's regulation of manufactured homes has been revised to more broadly permit this type of housing in single family zones. Housing Production & Preservation Programs • Housing preservation. The City provides strict enforcement of its building codes, intended to protect the quality and safety of housing. The City has also instituted a historic preservation program intended to provide incentives to rehabilitate and restore commercial, mixed use, and residential buildings in the community. • Public housing authority / Public and nonprofit housing developers. The City supports the Housing Authority of Snohomish County, as evidenced by its approval of the conversion of housing units to Housing Authority ownership. Edmonds is also a participant in the Alliance for Housing Affordability (AHA) in Snohomish County, which is a consortium of cities pooling resources to collectively address housing needs in the county. For -profit housing builders and developers. Many of the strategies outlined above are aimed at the for -profit building market. The City's budget restrictions limit its ability to directly participate in the construction or provision of affordable housing, so it has chosen instead to affect the cost of housing by reducing government regulation, providing flexible development standards, and otherwise minimize housing costs that can be passed on to prospective owners or renters. However, as noted above, the City is also a participant in the Alliance for Housing Affordability in Snohomish County, which is intended to collaborate on housing strategies countywide. Housing Financing Strategies • State / Federal resources. The City supports the use of State and Federal resources to promote affordable housing through its participation in the Snohomish County Consortium and the Community Development Block Grant program. These are important inter jurisdictional efforts to address countywide needs. Housing 88 Jurisdictions face challenges in meeting affordability goals or significantly reducing the current affordable housing deficit. Edmonds is a mature community with limited opportunities for new development and has limited powers and resources to produce subsidized housing on its own. However, it is hoped that Edmonds' participation in joint planning and coordination initiatives, such as the Alliance for Affordable Housing will point the way to new housing initiatives in the future. Housing Goals & Policies Each key goal in this element (or section) is identified by an alphabet letter (for example, "D"). Goals are typically followed by associated policies and these are identified by the letter of the goal and a sequential number (for example, "D.2") Housing Goal A. Encourage adequate housing opportunities for all families and individuals in the community regardless of their race, age, sex, religion, disability or economic circumstances. A.1 Consider opportunities for short-term housing that can meet local needs in case of an emergency or disaster. Housing Goal B. Ensure that past attitudes do not establish a precedent for future decisions pertaining to public accommodation and fair housing. Housing Goal C. Provide for special needs populations — such as low income, disabled, or senior residents — to have a decent home in a healthy and suitable living environment, including through the following policies: C.1. Encourage the utilization of the housing resources of the state or federal government to assist in providing adequate housing opportunities for special needs populations, such as low income, disabled, or senior residents. C.2. Work with the Alliance for Housing Affordability and other agencies to: C.2.a. Provide current information on housing resources; C.2.b. Determine the programs which will work best for the community. C.2.c. Conduct periodic assessments of the housing requirements of special needs populations to ensure that reasonable opportunities exist for all forms of individual and group housing within the community. Housing Goal D. Maintain a valuable housing resource by encouraging preservation and rehabilitation of the older housing stock in the community through the following policies: D.1. Support programs that offer assistance to households in need, such as units with low income or senior householders. Housing 89 D.2. Enforce building codes, as appropriate, to conserve healthy neighborhoods and encourage rehabilitation of housing that shows signs of deterioration. D.3. Ensure that an adequate supply of housing exists to accommodate all households that are displaced as a result of any community action. DA. Evaluate City ordinances and programs to determine if they prevent rehabilitation of older buildings. Housing Goal E. Provide opportunities for affordable housing (subsidized, if need be) for special needs populations, such as disadvantaged, disabled, low income, and senior residents through the following policies: E.1. Aggressively support efforts to fund the construction of housing for seniors, low income, and other special needs populations, while recognizing that units should blend into the neighborhood and/or be designed to be an asset to the area and create pride for inhabitants. E.2. Aim for city zoning regulations to expand, not limit, housing opportunities for all special needs populations. Housing Goal F. Provide for a variety of housing that respects the established character of the community. F.I. Expand and promote a variety of housing opportunities by establishing land use patterns that provide a mixture of housing types and densities. F. La. Provide for mixed use, multifamily and single family housing that is targeted and located according to the land use patterns established in the land use element. F.2. Encourage infill development that is consistent with or enhances the character of the surrounding neighborhood. F.2.a. Within single family neighborhoods, encourage infill development by considering innovative single family development patterns such as Planned Residential Developments (PRDs). F.2.b. Provide for accessory housing in single family neighborhoods to address the needs of extended families and encourages housing affordability. F.2.c. Provide flexible development standards for infill development, such as non- conforming lots, when development in these situations will be consistent with the character of the neighborhood and with the goal to provide affordable single family housing. Housing Goal G. Provide housing opportunities within Activity Centers consistent with the land use, transportation, and economic goals of the Comprehensive Plan. G.I. Promote development within Activity Centers that supports the centers' economic activities and transit service. Housing 90 G.l.a. Provide for mixed use development within Activity Centers. G. Lb. Plan for housing that is located with easy access to transit and economic activities that provide jobs and shopping opportunities. G.l.c. Consider adjusting parking standards for housing within Activity Centers to provide incentives for lower -cost housing when justified by available transit service. Housing Goal H. Review and monitor permitting processes and regulatory systems to assure that they promote housing opportunities and avoid, to the extent possible, adding to the cost of housing. H.1. Provide the maximum amount of efficiency and predictability in government permitting processes. H.1.a. Consider a wide variety of measures to achieve predictability and efficiency, including such ideas as: ... establishing time limits for permitting processes; ... developing consolidated permitting and appeals processes; ... implementing administrative permitting procedures; ...using pre -application processes to highlight problems early. H.2. Establish monitoring programs for permitting and regulatory processes. H.2.a. Monitoring programs should review the types and effectiveness of government regulations and incentives, in order to assess whether they are meeting their intended purpose or need to be adjusted to meet new challenges. Housing Goal I. Increase affordable housing opportunities with programs that seek to achieve other community goals as well. I.1. Research housing affordability and program options that address Comprehensive Plan goals and objectives. I.2. Develop housing programs to encourage housing opportunities that build on linkages between housing and other complementary Comprehensive Plan goals. I.2.a. New programs that address housing affordability should be coordinated with programs that address development of the arts, encourage historic preservation, promote the continued development of Activity Centers and transit -friendly development, and that encourage economic development. Housing Goal J. Recognize that in addition to traditional height and bulk standards, design is an important aspect of housing and determines, in many cases, whether or not it is compatible with its surroundings. Design guidelines for housing should be integrated, as appropriate, into the policies and regulations governing the location and design of housing. J.1. Provide design guidelines that encourage flexibility in housing types while ensuring compatibility of housing with the surrounding neighborhood. Housing 91 J.1.a. Incentives and programs for historic preservation and neighborhood conservation should be researched and established to continue the character of Edmonds' residential and mixed use neighborhoods. J. Lb. Design guidelines for housing should be developed to ensure compatibility of housing with adjacent land uses. Implementation Actions and Performance Measures Implementation actions are steps that are intended to be taken within a specified timeframe to address high priority sustainability goals. In addition, the Comprehensive Plan contains a small number performance measures (no more than one per element) that can be used to monitor and annually report on the implementation and effectiveness of the Comprehensive Plan. Performance measures, as identified in the Comprehensive Plan, are specific, meaningful, and easily obtainable items that relate to sustainability and can be reported on an annual basis. They are intended to help assess progress toward achieving the goals and policy direction of each major Comprehensive Plan element. {Note: The measure identified below is specifically called out as matching the above criteria and being important to housing goals and will be reported annually, along with performance measures for other Comprehensive Plan elements. It is not intended to be the only measure that the City may use for housing purposes. Implementation Action: Develop a strategy by 2019 for increasing the supply of affordable housing and meeting diverse housing needs. Performance Measure: Report the number of residential units permitted each year with a goal of reaching 21,168 units by 2035, or approximately 112 additional dwelling units annually from 2011 to 2035. Housing 92 RCW 36.70A.540: Affordable housing incentive programs —Low-income housing units. RCW 36.70A.540 Affordable housing incentive programs —Low-income housing units. (1)(a) Any city or county planning under RCW 36.70A.040 may enact or expand affordable housing incentive programs providing for the development of low-income housing units through development regulations or conditions on rezoning or permit decisions, or both, on one or more of the following types of development: Residential; commercial; industrial; or mixed -use. An affordable housing incentive program may include, but is not limited to, one or more of the following: (i) Density bonuses within the urban growth area; (ii) Height and bulk bonuses; (iii) Fee waivers or exemptions; (iv) Parking reductions; or (v) Expedited permitting. (b) The city or county may enact or expand such programs whether or not the programs may impose a tax, fee, or charge on the development or construction of property. (c) If a developer chooses not to participate in an optional affordable housing incentive program adopted and authorized under this section, a city, county, or town may not condition, deny, or delay the issuance of a permit or development approval that is consistent with zoning and development standards on the subject property absent incentive provisions of this program. (2) Affordable housing incentive programs enacted or expanded under this section shall comply with the following: (a) The incentives or bonuses shall provide for the development of low-income housing units; (b) Jurisdictions shall establish standards for low-income renter or owner occupancy housing, including income guidelines consistent with local housing needs, to assist low-income households that cannot afford market -rate housing. Low-income households are defined for renter and owner occupancy program purposes as follows: (i) Rental housing units to be developed shall be affordable to and occupied by households with an income of fifty percent or less of the county median family income, adjusted for family size; (ii) Owner occupancy housing units shall be affordable to and occupied by households with an income of eighty percent or less of the county median family income, adjusted for family size. The legislative authority of a jurisdiction, after holding a public hearing, may establish lower income levels; and (iii) The legislative authority of a jurisdiction, after holding a public hearing, may also establish higher income levels for rental housing or for owner occupancy housing upon finding that higher income levels are needed to address local housing market conditions. The higher income level for rental housing may not exceed eighty percent of the county area median family income. The higher income level for owner occupancy housing may not exceed one hundred percent of the county area median family income. These established higher income levels are considered "low-income" for the purposes of this section; (c) The jurisdiction shall establish a maximum rent level or sales price for each low-income housing unit developed under the terms of a program and may adjust these levels or prices based on the average size of the household expected to occupy the unit. For renter -occupied http://app.leg.wa.gov/Rcw/default.aspx?cite=36.70A.540 3/3/2016 RCW 36.70A.540: Affordable housing incentive programs —Low-income housing units. 2 housing units, the total housing costs, including basic utilities as determined by the jurisdiction, may not exceed thirty percent of the income limit for the low-income housing unit; (d) Where a developer is utilizing a housing incentive program authorized under this section to develop market rate housing, and is developing low-income housing to satisfy the requirements of the housing incentive program, the low-income housing units shall be provided in a range of sizes comparable to those units that are available to other residents. To the extent practicable, the number of bedrooms in low-income units must be in the same proportion as the number of bedrooms in units within the entire development. The low-income units shall generally be distributed throughout the development and have substantially the same functionality as the other units in the development; (e) Low-income housing units developed under an affordable housing incentive program shall be committed to continuing affordability for at least fifty years. A local government, however, may accept payments in lieu of continuing affordability. The program shall include measures to enforce continuing affordability and income standards applicable to low-income units constructed under this section that may include, but are not limited to, covenants, options, or other agreements to be executed and recorded by owners and developers; (f) Programs authorized under subsection (1) of this section may apply to part or all of a jurisdiction and different standards may be applied to different areas within a jurisdiction or to different types of development. Programs authorized under this section may be modified to meet local needs and may include provisions not expressly provided in this section or RCW 82.02.020; (g) Low-income housing units developed under an affordable housing incentive program are encouraged to be provided within developments for which a bonus or incentive is provided. However, programs may allow units to be provided in a building located in the general area of the development for which a bonus or incentive is provided; and (h) Affordable housing incentive programs may allow a payment of money or property in lieu of low-income housing units if the jurisdiction determines that the payment achieves a result equal to or better than providing the affordable housing on -site, as long as the payment does not exceed the approximate cost of developing the same number and quality of housing units that would otherwise be developed. Any city or county shall use these funds or property to support the development of low-income housing, including support provided through loans or grants to public or private owners or developers of housing. (3) Affordable housing incentive programs enacted or expanded under this section may be applied within the jurisdiction to address the need for increased residential development, consistent with local growth management and housing policies, as follows: (a) The jurisdiction shall identify certain land use designations within a geographic area where increased residential development will assist in achieving local growth management and housing policies; (b) The jurisdiction shall provide increased residential development capacity through zoning changes, bonus densities, height and bulk increases, parking reductions, or other regulatory changes or other incentives; (c) The jurisdiction shall determine that increased residential development capacity or other incentives can be achieved within the identified area, subject to consideration of other regulatory controls on development; and (d) The jurisdiction may establish a minimum amount of affordable housing that must be provided by all residential developments being built under the revised regulations, consistent with the requirements of this section. http://app.leg.wa.gov/Rcw/default.aspx?cite=36.70A.540 3/3/2016 RCW 36.70A.540: Affordable housing incentive programs —Low-income housing units. 3 [2009 c 80 § 1; 2006 c 149 § 2.] NOTES: Findings-2006 c 149: "The legislature finds that as new market -rate housing developments are constructed and housing costs rise, there is a significant and growing number of low-income households that cannot afford market -rate housing in Washington state. The legislature finds that assistance to low-income households that cannot afford market -rate housing requires a broad variety of tools to address this serious, statewide problem. The legislature further finds that absent any incentives to provide low-income housing, market conditions will result in housing developments in many areas that lack units affordable to low-income households, circumstances that can cause adverse socioeconomic effects. The legislature encourages cities, towns, and counties to enact or expand affordable housing incentive programs, including density bonuses and other incentives, to increase the availability of low-income housing for renter and owner occupancy that is located in largely market -rate housing developments throughout the community, consistent with local needs and adopted comprehensive plans. While this act establishes minimum standards for those cities, towns, and counties choosing to implement or expand upon an affordable housing incentive program, cities, towns, and counties are encouraged to enact programs that address local circumstances and conditions while simultaneously contributing to the statewide need for additional low-income housing." [2006 c 149 § 1.] Construction-2006 c 149: "The powers granted in this act are supplemental and additional to the powers otherwise held by local governments, and nothing in this act shall be construed as a limit on such powers. The authority granted in this act shall extend to any affordable housing incentive program enacted or expanded prior to June 7, 2006, if the extension is adopted by the applicable local government in an ordinance or resolution." [2006 c 149 § 4.] http://app.leg.wa.gov/Rcw/default.aspx?cite=36.70A.540 3/3/2016 11; ZA;7 Z 701; Z S Z474; ZA;7 Z 70 �QKS Z7*'ZS aKS Z7*'ZS Z70KS Z70KS Z�, 00, 11 h a MUM h a MV h a MV h a h MWA h a MVA a S a h VVA a d I %hoa, a a I VVA a a I VVA a a VVA a a MV MNA a a MV a a MV I h a VU bCtG ALLIANCE FOR HOUSING AFFORDABILITY UPDATE • Introduce self, AHA • Overview of preso: • Reintroduction to AHA • General housing concepts • Housing profile information • Question time Edmonds City Council October 28, 2012 1 WHAT'S THE ALLIANCE FOR HOUSING AFFORDABILITY? Background and purpose of the Alliance Work to date Where we're headed • Came out of Snohomish County Tomorrow, based on King County ARCH • PSRC mandate — must plan for housing for all segments of the population — but how? • Housing is a growing regional challenge requiring specialized resources, achieve economies of scale by collaborating • 1 serve as another shared staff person • 1 provide research — housing conditions, examples of best practices for housing policy, approaches in other communities • Making a venue for discussion and collaboration between cities • Connecting other resources and opportunities — partnerships with local organizations, connections with elected officials • Work to date: profile project • "initial conditions" for housing — staff and elected officials have the information they need • Looking forward: comprehensive plan update support • Expanding educational offerings -developing our website to be a "one stop shop" resource one housing —will also be home to the housing profiles • Further forward: • Highlighting funding opportunities 2 HOUSING CONSIDERATIONS Diverse needs and preferences Adequacy and safety Proximity to transportation, jobs, and services Affordability • Approaching housing in a way that includes the broader context • Change in preferences and needs over time — aging populations are a big one • Define affordability • What can local government do, outside of providing housing directly? 3 HOUSEHOLD INCOME LEVELS 2013 HUD regional median household income: $86,700 • Extremely Low: <30% AMI • Very Low: 30-50% AMI • Low: 50-80% AMI • Moderate: 80-95% AMI • Middle: 95-120% AMI Share of Population by HUD Income Level, City of Edmonds and Snohomish County 40% 35% 30A 25 % 20% 15% 10% 5% o% Extremely Very Low Low Moderate Middle Above Low Middle ■ Edmonds ■ 5—homiSh County S-- US C— Bureau; A—;— Cer —jfy Survey, 2008-2012 • Explain use of HUD income — affordable housing standards — 2012 Edmonds median income $73,072 ($68,338 for County) • Data limitation prevents breaking down by household size • Edmonds HH tend to be smaller compared to County • First I will walk through income levels • Subsidized vs. Workforce and income levels targeted N INCOME LEVELS IN CONTEXT Extremely Low Very Low Teachers Low Social Workers Moderate Accountants -Middle Engineers Food Service Employees - Medical &Dental Assistants, Real Estate Agents & Police Officers & Line Cooks, Servers, Dishwashers, Baristas Home Health Aides Brokers Firefighters Veterinarians Security Guards Graphic Designers Architects Web Developers Manicurists Hairdressers EMTs & Paramedics Electricians Construction Managers Childcare Workers Receptionists Paralegals Registered Nurses Physical Therapists Minimum Wage Workers Construction Workers Car Mechanics Loan Officers Financial Advisors Edmonds households in these income brackets: 82% cost burdened 630/c cost burdened 47% cost burdened 38% cost burdened 22% cost burdened Income -Based Rent BeIow-Morkef Rent Home Ownership Sa US Deporlmenr of He r� and U,6 D-6p—, 20I S; VS 8— of tabor s1aM1�lice, 201 Cutoffs: ex low - $26k, v low $43k, low $69k, moderate $82k, middle $104k "Housing Continuum" at the bottom 5 WHAT'S IN THE PROFILE? Project status Intended use and audience Content and presentation Data sources Table of Contents K'Mjortr wwvg- la • Overview: "describes context of housing in the city from economic and demographic standpoints" • Demographics, housing, challenges and opportunities — also a glossary of terms and explanation of methods • Predominantly narrative form, with charts, figures, and a number of maps • Sources: primarily census 5 yr 2012 for demographics, Dupre and Scott for rentals, Assessor for home sales, HASCO records for voucher holder information and other subsidized property info • Will walk through sections 1 and 2 I POPULATION AND COMMUNITY Population Pyramid, City of Edmonds, 2000-2010 Stable population with modest growth Accommodating growth may still be a 90+ challenge 85 -89 80 - 84 75 - 79 • Median income - $73,072 70-74 65 - 69 60 - 64 • Smaller households compared to 55-59 County overall 50 - 54 45-49 • 69% of households 1-2 people vs. 58% across 41,44 35 - 39 County 30 - 34 25-29 20-24 • 48% of renters and 34% of 15. 19 10-14 homeowners are cost burdened 5-9 0-4 E 2010 . 2000 2,000 1,500 1,000 500 0 5o0 1,000 1,500 2,000 700 S— US Censor fi—, 2000, 2010 • Growth — 2,790 additional housing units required by 2035, capacity is only 2,646 — of current capacity, vast majority is in MF, high portion through redevelopment • County median income of $68,338 • HH avg size 2.3 vs 2.6 • Cost burden — expand on next tab 7 COST BURDEN BY INCOME LEVEL AND HOUSING TENURE, CITY OF EDMONDS 79% 82% 82% 81% 86% 63% 29% 46% 47% 13% 43% 38% 7% 26% 22% S.,— US C-- Suravu; Aare k— C....-Ry S—y, 0008-201 ] • Extremely low owners — 82% vs 73% across County • V low owners — 86% vs 80% across County • Low owners — 46% vs 72% across County — most dramatic difference • Middle owners — 26% vs 32% across County • Low income, all — 47% vs 65% across County III EXISTING HOUSING STOCK Construction concentrated between 1950 and 1989 • 67% single family homes • 29% renter -occupied 42% of homes two bedrooms or less in size, 69% of households one to two people 2012 median home sale - $339,975 Third highest average assessed value in 2014 - $351,100 Age Distribution of Housing Stock, City of Edmonds & Snohomish County 45% 40% 35°% 30% 25% 20% 15% 10% 5% 0% Before 1949 1950-1969 1970-1989 1990 of Later ■ Edmonds ■ Snohomish County • Projected growth largely coming through redevelopment and in multifamily units — postwar growth boom came before other cities in the County • 78% of rentals are two bedrooms or less in size • Minimum income for 2012 sale - $75,796 —just above median city income. Middle income for HH of 2-3, moderate for 4-5 • 2014 average value —10.7% increase over 2013 ASSISTED HOUSING Assisted Units by Income Level • Subsidized Units: Served 178 Section 8 Vouchers 125 other units in 6 properties Extremely Low 233 • Workforce Units: Very Low 79 • 201 units in 3 properties Low 194 Moderate 2 Total 508 • Subsidized housing providers: HASCO, EHA, Compass Health — most units reserved for seniors and mentally ill people, families served by one large HASCO property with a mix of subsidized and workforce housing (Edmonds Highlands) • Workforce: SHAG, HASCO, Compass Health — again, seniors, mentally ill, but most still Edmonds Highlands for families 10 I Bed 2 Bed 3 Bed 4+ Bed Extremely No Low No No No Very Low Limited Limited Limited No Low Yes Yes Limited No Moderate Yes Yee" Limited Middle Yes Yes Yelm Sou..e. wp wd S-o ,, 20r3 MARKET RENTAL HOUSING Average Rent (With utilities) Minimum Income Required Minimum Hourly Wage Minimum Annual Wage i Bed $887 $17.06 $35,480 2 Bed $1,097 $21.10 $43,880 3 Bed $1,679 $32.29 $67,160 Bed $2,545 $46.94 $101,800 5 Bed $2,844 $54.69 $113,760 • Mention adjustment for household size WHAT CAN WE DO? How the planning process can support affordability Working with community partners Exploring new opportunities with AHA • Range of options from inexpensive to very expensive • Ensuring type, density, quantity of housing supports the population moving forward — accommodating demographic shifts, lifestyle changes, access to transportation and employment centers, etc. • Balancing need to keep • Monitoring and evaluating policy performance • Other partnerships — groups that support homeownership, like homesight — goal is to not duplicate efforts • AHA goal over the next year — how to leverage funding sources effectively 12 4 ol/ 7 a %hoa, a VaA a a %hoaA h a Moa, a a MUM h a MVA h a %hoa, m a %,,OaA . 3.4,0a, Lao a %hu a a mv a a %hoa, m d I moa, a a %hoaA a d I %hoa, . sma, . sma, . a %hu a "I on, 70m Voi � I Vol � I Voi � I Vol � I Voi � I Voi � I Voi � I Voi � I Voi � I TZ TZ TOON TZ 7d OTNN 1 42 & OTAON & 0ATON & 42 & I & oz & 01474aNab& 047TN & elz,7101� THANK YOU 13 GOALEnsure the construction and preservation of housing stock that meets a diverse range of incomes and needs. City funds affordable housing So that... City has a sufficient stock of affordable housing to meet the needs of the community City contributions to $280,000 ARCH Housing Trust Fund (A Regional Coali- $282,301 $294,337 $442,098 $424,108 $406,092 to tion for Housing)' $350,000 Number of low income housing units produced (units affordable to those 0 39 58 15 19* 69 units earning less than 50% per year of King County median income) ** Number of moderate income housing units produced (units affordable 7 21 26 23 3* 49 units to those earning between per year 50-8001oof King County median income)** Total number of low and 118 units moderate income units 7 60 qd 38 22* brought online per year (Includes General Funds, Community Development Block Grant Funds, and reallocation of affordable housing loans that have been repaid. *ADU and housing market survey units not included ** The City has reported this in percentages in prior years, but has moved to reporting units for clarity. I 1 OW DO WE MEASURE AFFORDABLE HOUSING? King County's Countywide Planning Policies determine the affordable housing targets for cities based on a variety of factors, includ ing the projected affordable housing needs of low and moderate income households, the existing stock of market rate and subsi- dized housing, and the number of jobs by wage level and location. Kirkland's progress towards meeting those targets include affordable housing units that have been built as a result of: • Housing Trust Fund contributions • Housing regulations that the City has adopted, such as affordable housing requirements, Accessory Dwelling Units, and tax exemptions. • Private housing development with market rents at affordable levels. HOW ARE WE DOING? The City continues to make significant contributions to the ARCH Housing Trust Fund. Following the annexation of the North Juanita, Finn Hill and Kingsgate neighborhoods, the City's target for contributions to the Housing Trust Fund increased to reflect the larger population. The combination of the City increasing its contributions, plus a one-time increase in Community Development Block Grant (CDBG) funds allocated to ARCH through King County, account for the large increase in funding in 2012. The City continued to contribute above targets in 2013 and 2014. I OW ARE WE DOING? continued Progress towards meeting affordable housing targets established in the Countywide Planning Policies fluctuates annually. This is due to a variety of factors, including when the City's trust fund contributions get allocated and to which projects. The City gets credit for affordable housing units based on its monetary contributions, regardless of where the units are built, as well as affordable units that are built in the City through regulatory requirements and market forces. The good news is that affordable housing is being built in Kirkland! WHAT ARE WE DOING? Kirkland continues to take a multi -faceted approach to creating a diverse housing stock that meets a variety of income ranges and needs. Several multifamily and mixed use develop- ments where affordable housing will be required by Zoning regulations are currently in the pipeline, from conversations prior to permit submittal through actual construction. The City's growing list of regulations to encourage and enable affordable and diverse housing include: • Accessory Dwelling Units • Small lot single family allowances • Cottage and carriage housing regulations • Affordable housing requirements with offsetting density bonuses • Multifamily residential tax exemptions • Standards for transit -oriented development at South Kirkland Park and Ride • Impact fee exemptions for affordable housing Following adoption of the updated Comprehensive Plan at the end of 2015, Planning staff and the Planning Commission will prepare a new Housing Strategy Plan to provide direc- tion for additional future initiatives that the City will undertake in support of affordable and diverse housing. In addition, the City sees a tremendous return on its annual investment in the ARCH Housing Trust Fund. All of the low income units and about 20% of the moderate income units that the City has been given credit for producing are a result of financial contributions made by the City to affordable housing projects within Kirkland and other ARCH cities through the ARCH Housing Trust Fund. AFFORDABLE & INNOVATIVE HOUSING LOCATED in KIRKLAND 160 140 120 100 80 60 40 20 77 36 28 31 24 23 1 3 m tko Ca Y � o CD x a 0 a 2 m 2 2 E O M 000 } C OD C N O t C 7 N E 7O m E N 7 O LL N " a > J Cr N = o o U ARCH Innovative Affordable Housing Housing 7AREGIONAL COALITION FOR HOUSING (ARCH) Working together to house East King County ARCH is a partnership of the fifteen cities in East King County, along with King County, who have joined together to assist with pre- serving and increasing the supply of housing for low— and moderate -income households in the region. ARCH assists member govern- ments in developing housing policies, strate- gies, programs, and development regula- tions; coordinates the cities' financial support to groups creating affordable housing for low— and moderate -income households; and assists people looking for affordable rental and ownership housing. Through the Housing Trust Fund (HTF), ARCH's member governments have sup- ported a wide range of housing created and operated by local organizations and private developers that serve individuals, families, se- niors, the homeless, and persons with special needs. The HTF process allows ARCH mem- bers to jointly administer their housing funds, and assist the best available housing oppor- tunities that meet the housing needs of the community. The HTF awards loans and grants to Eastside developments that include below -market rate housing. Between 1993 and 2014, ARCH member jurisdictions committed over $44 million to this fund, including Community De- velopment Block Grant (CDBG) and General Funds. Also included in this amount is over $7 million in contributions of land, fee -waivers and other in -kind donations. Since 1993, the ARCH HTF has funded over 3,033 housing units in East King County. ARCH works with housing providers to de- velop a viable proposal, and coordinates ef- forts with other funders to meet the proposal's funding needs. ARCH is an important part of a provider's funding package. Affordable housing providers are often able to leverage ARCH funding assistance where other com- petitive funding sources gives greater consid- eration to proposals with local funding. One dollar of funding from ARCH can result in $10 of funding from a variety of other public sources, such as the Washington State Hous- ing Trust Fund, King County Housing Oppor- tunity Fund and HOME Program, Federal Low Income Housing Tax Credits and Tax -Exempt Bond Financing. Community housing providers are critical to efforts to create and preserve affordable housing. These agencies finance and build, or acquire and rehabilitate, permanent rental or ownership housing. As a result of public and private resources working together there is greater housing affordability and housing opportunity for those who need it most. 3/30/2015 13 Urban Trends to Watch -Urban Land Magazine NO Ri NmF " 11 ` " 1 ■ 111160 Advertisement THE MAGAZINE OF THE URBAN LAND INSTITUTE SECTIONS Urban Land > Market Trends > 13 Urban Trends to Watch 13 Urban Trends to Watch By Henry Cisneros March 26, 2015 I MORE ULI SITES Text Size: A A A Adapted from Urban Real Estate Investment: A New Era of Opportunity, which will be published by ULI in 2015. The contours of an urban renaissance —long in the making —are quickly coming into focus. Massive societal and economic changes are converging to create a new urban reality, a transformation of importance to the millions of Americans in the nation's metropolitan areas. Demographic changes are creating markets for mixed -use and mixed - income models of urban design. Job growth in advanced industries fits the preferences of knowledge workers attracted to urban neighborhoods. The "smart" institutions of the new economy, such as research universities and medical centers, are becoming the knowledge anchors of cities, spinning off employment, contracts, businesses, residences, and public amenities. Global energy challenges are putting a premium on core city locations and on public transit. New technologies are matched to creative financial architecture to advance concepts of sustainability, walkability, and affordability. Register for the ULI Spring Meeting I Tour: Award -Winning Affordable Housing in Houston As a result, cities are becoming denser, more diverse, smarter (as measured by the skills of their residents), safer, more dynamic, more interconnected, more social, more environmentally aware, more attractive as 24/7 locales, and more essential to the nation's prosperity. The city -building professions —urban planning and design, architecture, municipal governance and administration, real estate development and construction, capital and finance, transportation and infrastructure —must understand how the following individual trends are together creating a new moment of opportunity for the nation's metro areas. 1. Building for Sustainability Community builders must be attentive to the use of building materials and systems that minimize environmental impacts. Important contributions have been made by individual builders, advocacy organizations, and nonprofit community builders who have designed prototype homes and other buildings using more sustainable materials, HVAC systems, water conservation, landscaping, and construction methods. http://urbanland.uli.org/economy-markets-trends/13-urban-trends-watch/ 1/13 3/30/2015 13 Urban Trends to Watch -Urban Land Magazine Urban leaders must also seek to make entire cities contributors to environmental solutions. As the starker dimensions of climate change become more widely understood —hotter daily temperatures, longer heat spells, drier conditions in some regions, and more violent storms with accompanying inundations in others —public and private sector leaders will confront higher pricing for scarcer water allocations, higher energy costs for more air conditioning, worker productivity losses, and the insurance costs of flooding and other storm damage from rising sea levels and more powerful storms. 2. Embedding Technology in Urban Real Estate The wave of automation is growing. Home systems currently exist to calibrate landscaping to weather conditions, to monitor energy use, to tighten security, and to communicate with light switches, locks, and other devices in a smart building via a remote tablet or smartphone app. At the city level, computer automation can help first responders arrive faster, assist police in reducing crime, help decrease peak energy loads, and schedule public transit arrival times. The advent of cloud computing makes it possible for millions of residents to be connected to "the internet of things" in their smart homes and for entire cities to be interconnected. 3. Harnessing Advanced Industries and Anchor Institutions The advanced industries powering the new (Antonia Giroux) American economy apply research and development to computers and communications equipment, aerospace products, medical equipment, and pharmaceuticals. They employ a workforce skilled in science, technology, engineering, and mathematics. In many metropolitan areas, these advanced industries work in concertwith anchor institutions —research universities, world -class medical centers, corporate headquarters, research and development complexes, and arts and cultural institutions. As these advanced industries become America's crucial drivers of global competitiveness, urban real estate professionals should prepare to build the needed facilities, and incorporate the unique building features and spatial designs these advanced industries and anchor institutions will require. 4. Modernizing Urban Infrastructure In the core areas of many U.S. cities, water lines are more than 100 years old and pose health and safety risks. Vehicular traffic lurches along rutted roadways and congested arterials. Public facilities, whose deterioration undermines public confidence in urban governance, include aged airports, dated rail stations, dingy parking structures, and crumbling bridges, tunnels, and underpasses. America's municipal and metropolitan leaders must make extensive investments in their basic infrastructure if they are to position cities as platforms for economic competiveness. Cities must focus on the three levels of infrastructure that will create the conditions to draw future private investment to urban areas: http://urbanland.uli.org/economy-markets-trends/13-urban-trends-watch/ 2/13 3/30/2015 13 Urban Trends to Watch -Urban Land Magazine URBAN REAL ESTATF INVESTMENT A NEW EPA OF 0 P POIR TUN MTY �1l151IkY I hl I r•i,, i%%-,rc1 ft I rfc Gum!!I11• mVW Sri Lq1} A r g■Ir•% 7 11 �1 �•1 ■ � 11�1fy ■ ` _ r- ■r r ` 1 I r 6 Jop Wr - • The existing infrastructure in need of repair, such as bridges and tunnels; • The modernization of existing infrastructure with new technologies, such as interactive power grids linked to smart appliances; and • The installation of completely new forms of infrastructure for the future, such as high-speed telecommunications http://urbanl and.ul i.org/econom y-m arkets-trends/13-urban-trends-watch/ 3/13 3/30/2015 lines. 13 Urban Trends to Watch -Urban Land Magazine 5. Addressing Mixed Incomes Positively A well -functioning city needs a mix of housing types. The increasing cost of urban housing in many cities has pushed lower -income and even middle -income workers to the metropolitan periphery. Developers and public officials must make affordable and workforce housing a priority. An important way to add affordable and workforce units is cross -subsidization within a project, with a developer voluntarily or mandatorily including a percentage of such units. It has been demonstrated that distribution of those units within a project has no negative effect on the marketability or functionality of the community, and the positive effects for a city are important. 6. Preparing for Demographic Trends Over the next 30 years, the population of Americans over age 65 will double, and the number of those over 85 will triple. Minorities are already approaching 50 percent of the homebuying market and in many areas account for 100 percent of population growth. These are just two indicators of the pace of the demographic transformation sweeping across the United States. The Washington, D.C.—based American Seniors Housing Association reports that the demand for appropriate housing for seniors will increase from 18,000 units per year in 2015 to 82,000 per year in 2030. The greatest need will be for types of for -sale and rental properties for the 90 percent of aging Americans who say they want to age in place. Also, the rapid growth of minority populations means that residential builders must consider affordability, floor plans, locations, and community amenities that respond to such factors as larger family sizes, multigenerational families, younger average ages, and specific cultural preferences. 7. Taking on Density Greater demand for core urban sites almost always means higher land prices. To offer competitive rents or sales prices, increased density is often the only business solution. Density, however, frequently generates a negative response from nearby residents and from public officials who oppose large, overbearing structures and increased traffic. But good design can be an antidote to such opposition. Creative architects can break up the mass of large structures, altering heights and varying elevations and exteriors, as well as reducing the unsightly imposition of parking structures. Careful attention to density can generate positive urban dynamics, including more vibrant neighborhoods and more cost-effective public services. 8. Making Walkability Real Many surveys show that residents place a higher value on homes within walking distance of stores, public spaces, and employment. Developers and planners must imagine designs for urban sites that can be assembled into a compatible pattern of mixed uses to create an urban village. "Villages within the city" create a sense of identity for submarkets within an urban area, encourage resident involvement at a human scale, and create loyalties to neighborhood businesses. 9. Adding Transit -Related Value As urban cores become denser, public transportation systems can reduce traffic congestion and automobile pollution, enhancing the neighborhood environment. A light -rail system that carries 120 passengers along a city arterial street removes 60 cars with two passengers each from the city's streets. Mass transit stops are obvious locations for urban residential, commercial, and office developments. Developers should probe beyond the obvious sites to explore the potential of underused properties along transit lines to unlock the value of transit -related real estate. http://urbanland.uli.org/economy-markets-trends/13-urban-trends-watch/ 4/13 3/30/2015 13 Urban Trends to Watch -Urban Land Magazine �_' '¢.�v Lv`.a:� •: .. . :'+ate x Light -rail system in downtown Charlotte, North Carolina. (ttueni) 10. Incorporating Public Spaces and Amenities James Rouse, the revered city builder, once said that he designed Baltimore's Inner Harbor principally as a venue for people watching. He understood the importance of creating common areas where people can safely relax and enjoy the urban setting. In a commercial project, common space may take the form of a sitting area with internet connectivity; in a multifamily community, it may be meeting spaces for professionals who work at home. On a public street, common space may mean wider sidewalks or a lighted bus stop shelter for transit passengers. Plantings, water features, street furniture, public art, green open spaces, exercise equipment, performance stages, jogging paths, children's play equipment, and pet parks are all desirable features that help make the urban streetscape more humane and vital. 11. Using Creative Design Good design is a worthy goal for private developers and public city builders alike. It should be the goal for every kind of structure at every price point. Urban designers today can use materials of various textures, weights, and colors; light patterns; nontraditional shapes and soaring lines; water features and foliage; and nearby topographical features to make projects attractive, functional, and economically feasible. 12. Financing Urban Real Estate It is possible to anticipate some likely developments in capital flows to urban real estate. For example, the flow of global capital to U.S. metropolitan markets will accelerate because foreign investors value the relative stability of U.S. markets and are particularly attracted to the "gateway cities" with which they are most familiar. Institutional investors with actuarial obligations for pension and retirement funds will continue to be attracted to the higher returns associated with various forms of real estate as they seek to achieve acceptable overall returns at a time when bond and equity returns underperform. Some investors —institutional funds, family offices, and high -net -worth individuals —may seek to bypass capital allocators and instead make direct investments in properties. For those investors, relationships with highly competent real estate operators who manage strong pipelines of attractive projects and who have stellar records of performance will be especially valuable. 13. Cementing Public Sector Partnerships http://urbanl and.ul i.org/econom y-m arkets-trends/13-urban-trends-watch/ 5/13 3/30/2015 13 Urban Trends to Watch -Urban Land Magazine City governments have become very capable drivers of economic development, using every municipal resource to create comparative advantages and to offer incentives. These economic development calculations almost always involve urban real estate decisions. Cities provide property tax abatements to make the economics of industrial sites more palatable for relocations or expansions. They offer cash outlays from bond programs to offset the construction costs of apartments, and they often add further incentives for including percentages of workforce or affordable housing units. Public authorities commit to investing in physical infrastructure to support employment -generating projects, including approach roads, freeway exit ramps, transit stations, water extensions and pumping stations, electrical power generators, land acquisition and assembly, and leases of public land or facilities. This kind of aggressive involvement by the public sector in real estate transactions is likely to increase as cities become more determined to be masters of their economic destinies and to connect permanent jobs with the urban workforce. Opportunity for City Builders Many of the trends responsible for America's urban renaissance have been coming for years. However, demographic shifts, technological advancements, and sustainability concerns have all accelerated recently. Taken together, they create a new professional reality for city builders. The need to adapt older urban real estate to modern purposes —and the imperative to develop new forms of the built environment in cities —ensure that urban real estate investment will be an essential enterprise of long duration. The volume of capital required to support the scale of both recycled uses and new developments will require resourcefulness in aligning traditional sources of capital for urban projects, as well as creativity in applying capital in new ways. Urban real estate is a powerful domestic engine that will help determine the shape of the national landscape and make bright futures possible for urban professionals skillful enough to imagine, invest, and execute wisely. Adapted from Urban Real Estate Investment: A New Era of Opportunity, which will be published by ULI in 2015. Henry Cisneros is chairman of Cisneros City Group, which invests in urban real estate and infrastructure projects. He is also chairman of CityView, a partner in building more than 7,000 residential units in 13 states over the last 15 years. Cisneros served four terms as mayor of San Antonio and was secretary of the U.S. Department of Housing and Urban Development from 1993 to 1997. SHOW COMMENTS Biotech Industry Drives Life Science REITs By Susan Persin March 30, 2015 Text Size: A A A This article is republished with permission from REITCafe. The life sciences industry is growing rapidly, accounting for 15 of the 29 initial public offerings (IPOs) so far in 2015 and more than one-third of IPOs in 2014. Illustrating the growth in life sciences, the NASDAQ biotech index has gained almost 60 percent since year-end 2013. Robust industry growth has generated demand for specialized life science real estate that usually includes a mix of office and lab space. REITs that focus on life science real estate benefit from the growth in this industry but take on less risk. Fueled by strong expansion among life science companies, the two major pure -play life science real estate investment trusts (REITs) are expanding their portfolios through both acquisitions and new development, with earnings that reflect the benefits of this growth. For many life science companies, their ability to lease space depends on funding. Federal government grants, particularly from the National Institutes of Health (NIH), are a significant source of funding. NIH funding was cut in recent years, but earlier this month, President Obama asked for a $1 billion, or 3.3 percent, increase in the NIH's budget for fiscal year 2016. http://urbanl and.ul i.org/econom y-m arkets-trends/13-urban-trends-watch/ 6/13