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2017-12-20 Economic Development Commission Packet"7C. 189., AGENDA Edmonds Economic Develoament Commission Edmonds City Hall Brackett Meeting Room, 121 5th Ave N Wednesday, December 20, 2017 6-8PM 6:00 P.M. - CALL TO ORDER 1. Call to Order 2. Approval of Agenda 3. Approval of November 15, 2017 Meeting Summary 4. Audience Comments (3 minutes per person) 5. Old Business: Subgroup Discussion (60 minutes): • Development Feasibility — review & discuss memo • Art — report on draft Economic Impact of Arts & Culture • Civic Facilities — review briefing memo • Affordable Housing - update 6. New Business (30 minutes) Sub -Committee coordination of meetings 7. Roundtable Discussion (Council, Commissioners, City, Liaisons) (20 minutes) 8. Adjourn Next regular meeting: January 17, 2018, 6 PM DRAFT CITY OF EDMONDS ECONOMIC DEVELOPMENT COMMISSION November 15, 2017 COMMISSIONERS PRESENT Jamie Reece, Chair George Bennett Aseem Prakash Stephen Clifton Matthew Waldron Mary Monroe Vice -Chair Nathan Monroe, Planning Board, ex officio Neil Tibbott, Councilmember, ex officio Greg Urban, Edmonds Chamber, ex officio Bob McChesney, Port of Edmonds Executive Director (substituting for Bruce Faires) COMMISSIONERS ABSENT Nicole Hughes (by phone) Michael Schindler (excused) Bruce Faires, Port Commissioner, ex-officio STAFF PRESENT: Patrick Doherty, Econ. Dev & Comm. Serv. Dir. Cindi Cruz, Program Coordinator 1. Economic Development Commission meeting called to order by Jamie Reece at 6:01 p.m. 2. Approval of Agenda: Approved as submitted. 3. Approval of 10/18/17 EDC Minutes: Discussion from Darrol to add to his motion request for his excused absence for September minutes. Concern expressed that minutes are no longer available although they are on City Clerk's Meeting Agenda page with a referral on the EDC web page. Stephen moved to approve minutes as amended, Aseem seconded; motion passed. 4. Audience Comments Patrick discussed Holiday Market held on 5th Avenue North in front of City Hall the last two Saturday's and will continue for 4 more Saturdays. Challenges of advertising and get the word out that the market is happening. This Saturday will be 2nd screening of Diversity Commission film series. First one was very successful. Mentioned grant recipients of Diversity Commission (name) New VisitEdmonds website is up and running. Holiday website in conjunction with BID/Ed! Port project of videographer will be contributing a dollar amount to advertise related to grant from Port of Seattle. Ads will run in March/April. 5. Old Business: Subgroup Discussion (60 minutes): Development Feasibility: Mary handed out draft memo (see attached). Stephen: subject should be worded in form of a question. No change in height of 30' limit but change to first floor requirements of 15'. Design standards were put into place fairly recently (2013) and less than 5 new developments have been built in BD1 zone. Neil suggested this could be a good topic for Council/EDC forum. Sub -group will discuss and refine topic. Concept, research, memo will go to Council. If council agrees, will send to Planning Division/Board, Planning works on it and ultimately will go back to Council. Reserve a block of time on a future agenda to discuss this topic and finalize memo. Art: Stephen updated that group did not meet because arts economic impact survey was not completed. Now done and over 1300 responses. Mary will receive copy of info as a member of the advisory committee. 4th Avenue Art Corridor is on a back burner waiting on funds to proceed with project. Between Main & ECA — includes reconfigured roadway, trees, lighting, potential houses to convert to retail. Concept Plan completed in 2006 linear park, infrastructure is old and DRAFT Meeting Summary Economic Development Commission November 15, 2017 Page 1 DRAFT would like to see tie-in to capital improvement project and complete in conjunction with utility replacements similar to Main St project between 6t11 & 5th Avenues. Could grants be accessed to provide funding for infrastructure and subsequently implementation of corridor improvements? Gateway sign at split of SR 104 & 5"' Avenue — working on process with Frances Chapin, Patrick, Mary, an Arts Commissioner, Dave from Parks, Planning Commissioner Dan Robles, and Clayton Moss. Looking at schematic concepts. Encourage them to be larger and artistic element. WSDOT limits the size of the sign. Our crews do plantings around sign but will design to be more drought resistance and sustainable. Welcome sign when getting off ferry will also be reviewed for replacement. Street signs at 244th & Hwy 99 — north side should say Edmonds but now they all say Shoreline could staff request a change to WSDOT. 6. New Business: Meeting attendance via phone: nothing in code to allow participation by phone or a quorum by phone. The commission can propose a code change to Council to allow quorum and voting by phone. Council has its own rules but commissions and boards are not covered by those codes. Concerns raised about difficulty of hearing on phone. Could allow to participate by phone to keep apprised of commission meeting discussions but not be counted as a quorum or allowed to vote. Technology exists to allow participation. Would support going to City Council to allow for expansion of participation by citizens. How many are required to be in the room to constitute the quorum and how many are allowed to be on a phone? Limit how many meetings you can call in for. Encourage physical participation as much as possible. Participation, voting, quorum, how many times? George moved to recommend to Council to change code to allow remote participation in meetings, to count towards quorum with voting rights up to 3 times per calendar year; Matt seconded discussion to clarify motion carried, Nicole did not vote. Neil clarified it could go to a committee, with changes going to full Council. Civic Facilities: George discussed and will have notes at next commission meeting to discuss memo. Affordable Housing: Jamie stated he had missed task force meeting but next meeting is on 30th and will bring information to next commission meeting. Darrol discussed how much housing that will be built in Edmonds including affordable and all housing. What is planned for and anticipated on Hwy 99, what are growth rates with current building permits? Need to understand what is total supply in Edmonds over next 15-20 years. Compare these figures with Growth Management Act requirements. Ask City for estimates from Planning Department and buildable land report. Jamie will ask Shane through task force. Discussion at state level regarding buildable lands — changing target. School District has task force that had Lynnwood's econ dev director give presentation defining numbers of units in Lynnwood percent below market rate. Development in Lynnwood related to light rail project. Other Old Business: Jamie: Subcommittee memo — for discussion — submit at least a week before the meetings. How to share the information without violating OPMA. Darrol discussed parking implementations and will be reviewed before next meeting and would like to share with EDC at next meeting. DRAFT Minutes Economic Development Commission November 15, 2017 Page 2 DRAFT 7. Roundtable Discussion (Council, Commissioners, City, Liaisons): Darrol discussed owner of property at 6 b and Main who is developing renderings, would like to develop the property into parking, Airbnb and/or apartments or condos will share renderings at next meeting if available. Bob McChesney attending for Bruce Faires gave election results; Neil said Adrienne enjoyed the meeting she attended for him last month he was at CERT training very valuable for the citizens of Edmonds, Greg updated networking event in October, Halloween was bigger than ever 7500 people, had live remote from King 5, Mimi Jung will be at Tree Lighting this year, Small Business Saturday 11/25, Fishmonger store next to Starbucks, Nathan PB working on 5-Corners, Jamie: development feasibility and, parking update at next meeting. 8. Adjourned at 8:00 p.m. Next regular meeting: December 20, 2017, 6 PM DRAFT Minutes Economic Development Commission November 15, 2017 Page 3 DRAFT Attachment A Kirkland: 2. The maximum height of structure shall be measured at the midpoint of the frontage of the subject property on the abutting right-of-way, excluding First Avenue South. See KZC 50.62 for additional building height provisions. 5. For purposes of measuring building height, if the subject property abuts more than one right-of-way, the applicant may choose which right-of-way shall be used to measure the allowed height of structure (does not apply to Public Access Pier, Boardwalk, or Public Access Facility; Piers, Docks, Boat Lifts and Canopies Serving Detached Dwelling Unit; Piers, Docks, Boat Lifts and Canopies Serving Detached, Attached or Stacked Dwelling Units). (Very complex building height regulations) 2. Where retail frontage is required along an abutting street and along pedestrian -oriented streets (see Plate 34H), the minimum ground floor story height for retail; restaurant and tavern; entertainment, cultural, and/or recreational facili uses shall be 15 feet; provided, however, that in CBD IA and CBD 1B, any buildings proposed and built after April 1, 2009, or buildings that existed prior to April 1, 2009, which are 10 feet or more below the permitted maximum height of structure, shall be required to provide a minimum 13-foot ground floor story height. Shoreline: c. Minimum space dimension for building interiors that are ground -level and fronting on streets shall be 12-foot height and 20-foot depth and built to commercial building code. These spaces may be used for any permitted land use. This requirement does not apply when developing a residential only building in the MUR-35' and MUR-45' zones; Redmond: NA Everett: c. All ground floors of buildings hereafter constructed shall maintain fifteen -foot floor -to -ceiling heights. Mill Creek — NA Lynnwood — NA Tacoma (Downtown): (1) The distance from the finished floor to the finished ceiling above shall be at least 12 feet. Issaquah — NA Seattle Neighborhood Commercial — 13'; Downtown — 15' Bellingham — NA Burien — NA Federal Way — NA DRAFT Minutes Economic Development Commission November 15, 2017 Page 4 DRAFT MEMORANDUM TO: MAYOR EARLING AND CITY COUNCIL FROM: JAMIE REECE, CHAIR, ECONOMIC DEVELOPMENT COMMISSION SUBJECT: RECOMMENDATIONS REGARDING 15-FOOT MINIMUM GROUND -FLOOR HEIGHT IN EDMONDS BD1 ZONE DATE: December 20, 2017 OBJECTIVE: Increase City revenues, jobs, housing options and new cultural, shopping and recreation opportunities in Edmonds APPROACH: Stimulate economic growth in the downtown core by revising zoning standards in BD1 to encourage new construction and redevelopment of vacant sites and/or deteriorating structures. BACKGROUND: In January 2007, the Edmonds City Council passed Ordinance No. 3624, enacting a new chapter 16.43 relating to downtown business zoning. The Downtown Business zone (BD) was subdivided into 5 subdistricts, each with its own unique mix of permitted uses and zoning regulations. The intent was to promote Edmonds as a setting for retail, office, entertainment and associated businesses, define strong pedestrian links, and create a strong retail core at the downtown's focal center. The code allows building heights of 30 feet in all BD zones except zone BD5, where it is 25 feet. Site development standards also call for a minimum ground -floor height of 12 feet in all BD zones, except BD1 where the minimum ground -floor height requirement is 15 feet. BD1 was singled out for the 15-foot height requirement because, at the time, it was thought a higher ground floor height (15 feet) would encourage a broader range of retail development, resulting in attractive development/redevelopment and a strong retail core. (add foot note: "Minimum height of ground floor within the designated street -front" means the vertical distance from top to top of the successive finished floor surfaces for that portion of the ground floor located within the designated street front (see ECDC 16.43.030(B)); and, if the ground floor is the only floor above street grade, from the top of the floor finish to the top of the ceiling joists or, where there is not a ceiling, to the top of the roof rafters.). DISCUSSION: The current zoning standards in zones BD1 through BD4 allow for structures 30 feet in height. In all BD zones except BD1, the minimum ground -floor height requirement is 12 feet. With a maximum building height of 30 feet, three levels of usable space can be achieved. However, in BD1, with the ground -floor minimum height requirement of 15 feet, only two floors of usable space may be achieved within the 30- foot height limit. In today's market, most financially viable redevelopment requires a minimum of three levels of rentable space to "pencil out." In BD1, with the ground floor height requirement of 15 feet, development/redevelopment has been stagnating, as contrasted with some new development/ redevelopment in other BD zones. As a result, there is a missed opportunity for commercial growth and increased housing. There is a demand and need for additional commercial space in the Downton Core. The City receives numerous inquiries from prospective retailers, gallery operators, lodging establishments, restaurateurs, and office -based employers, seeking Downtown tenant space. There is very little available as most existing buildings are small and mostly fully occupied. Discussions with property owners and potential developers indicate the few vacant or substantially under -developed sites in the BD1 are stymied from being (re)developed by the de facto two-story limit. While higher ground -level heights may be desirable for some uses, they are no longer considered necessary. Building owners and tenants are anxious for rentable, quality space in the Edmonds retail core. Edmonds has the opportunity to facilitate creating such space by reducing the minimum ground - floor height requirement in BD1 to 12 feet as found in other BD zones. Staff reviewed ground -floor height requirements for our competitive cities. For most, there is no minimum height other than that required by the International Building Code, (a 7 foot 6 inch minimum). Kirkland requires a 13 to 15-foot first floor, depending on the overall height of the building, which in commercial zones ranges from 30 feet to 55 feet. Shoreline and Downtown Tacoma require a 12-foot first floor. Seattle specifies 13 feet in the Neighborhood Commercial zones and 15 feet downtown, where buildings are significantly higher then 30 feet. The EDC considered several different approaches to address the issue of creating an environment to attract development and redevelopment; i.e. allowing for three-story structures in BD1. Three Alternatives were discussed: Alternative 1: Preferred Alternative. Reduce the ground -floor height requirement in BD1 to 12 feet, as found in all other BD zones, while maintaining a 30 foot building height limit. Allowing a 12-foot ground -floor height makes developing three levels within the 30 foot height restriction possible. Alternative 2: Maintain the 15 first floor requirement and allow building heights in BD1 in excess of 30 feet, possibly up to 35 feet. This option includes a potential stipulation that a view study be conducted to ensure any such additional height above 30 feet would not significantly impact views. This was viewed as a good compromise, but adding additional height was not considered a first choice by the Committee. Alternative 3: Combine Options 1 and 2; decrease the first -floor height requirement but allow overall building height, for three story structures, to increase. A 13-foot first floor requirement for example, could result in a 31-foot building, for example. RECOMMENDATION: The EDC recommends Alternative 1 to City Council for consideration : reduce the ground -floor height minimum in BD1 to 12 feet as required in other BD zones. The reduction in the ground -floor height requirement may improve the economic vitality of the City of Edmonds Downtown core by encouraging (re(development of downtown vacant sites and deteriorating or substantially under -developed structures and attracting new uses the core. There are many positive outcomes that may result from this proposed adjustment: • New cultural, shopping, and recreation opportunities within the community; as more space becomes available, new businesses will be able to find locations in Downtown Edmonds and existing businesses will have the opportunity to expand. • New infusion of revenue into the city or county budget as a result of redevelopment activities (sales tax, hotel tax, and utility tax revenues) in order to provide greater public safety, parks and transportation services. • More job opportunities (retail, service, office, and/or manufacturing jobs); more businesses result in job creation. • More housing opportunities in a walkable environment. Three floors allows for upper -level residential in the Downtown core. More downtown residents will contribute to a more vital and vibrant core, increase retail activity and the overall desirability of locating a business or office in Downtown Edmonds. • Additions of one or two additional stories atop existing buildings (up to the 30-foot limit) could leverage needed restoration of existing buildings and/or building facades, improving the look and feel of Downtown. Existing building standards and design guidelines would remain in place, helping to maintain the character of our community. • Construction jobs will be created by the development of new buildings and new infrastructure and the remodeling of existing buildings. The EDC discussed potential negative impacts of the proposed change and concluded they would be minimal. • Views would not be impacted as building heights will not be altered. • Increased density in terms of visitors to downtown and new residents would add vitality, but could also impact parking availability. • Changes in the character of the streetscape may be considered both a positive and a negative. Deteriorating buildings are an eyesore and can be dangerous. New construction will not necessarily be as quaint, but will keep the overall character of the Downtown. Current design standards, first adopted in 2008, ensure the desired "look and feel" of the Downtown Core will be maintained. Overall, in the opinion of the EDC, the positives outweigh the potential negatives. We encourage Council to amend the code in BD1 to reduce the minimum required ground -floor height to 12 feet.