PC APPROVED Minutes 04-28-16 APPROVED Minutes
Spokane Valley Planning Commission
Council Chambers—City Hall,
April 28,2016
Chair Graham called the meeting to order at 6:03 p.m. Commissioners, staff and audience stood for the
pledge of allegiance. Administrative Assistant Deanna Horton took roll and the following members and
staff were present:
Kevin Anderson Lori Barlow, Senior Planner
Heather Graham Mike Basinger,Economic Development Coordinator
James Johnson
Tim Kelley
Mike Phillips
Suzanne Stathos
Joe Stoy Deanna Horton, Secretary of the Commission
Commissioner Stoy moved to accept the April 28, 2016 agenda as presented. The vote on the motion was
seven in favor, zero against and the motion passed.
Commissioner Anderson moved to approve the April 14, 2016 minutes as they were presented. The vote on
the motion was seven in favor, zero against, and the motion passed. Commissioner Johnson clarified the
SEPA determination would not need to change due to Planning Commission's recommended changes after
the public hearing on CTA-2015-0006 Marijuana regulations.
COMMISSION REPORTS: Commissioner Johnson reported he attended a Department of Commerce
Short Course in Planning.
ADMINISTRATIVE REPORT: Senior Planner Lori Barlow reminded the Planning Commission of the
joint study session scheduled for May 3, 2016 between the City Council and the Planning Commission to
discuss draft goals and polices and land use alternatives which could be included in the City's
Comprehensive Plan.
PUBLIC COMMENT: There were no public comments.
COMMISSION BUSINESS:
Study Session: Comprehensive Plan Existing Conditions Report
Senior Planner Lori Barlow explained these reports are intended to provide background information for
the study session next week with the City Council regarding the Comprehensive Plan Update.
As the City began the update, one of the first exercises was to review the Community's vision for the
City. Next Ms. Barlow explained the City was required to have a population allocation from Spokane
County in order to plan for growth. The City would be using a number which had been developed
through an extensive process by the Planning Technical Advisory Committee (PTAC). The PTAC
makes a recommended population allocation to the Steering Committee of Elected Officials (SCEO).
The SCEO reviews the recommendation and forwards it to the Board of County Commissioners
(BoCC). The BoCC ultimately has the authority to determine the allocation to each jurisdiction. The
PTAC and the SCEO have recommended the 2037 Office of Financial Management's(OFM)medium
population forecast number. This recommendation was forwarded to the BoCC on November 4,2015.
The City is using this forecast number of 14,650 for the next 20 years growth. Commissioner Anderson
asked if the numbers were similar to numbers used in 2006. Ms. Barlow said during each update
process the numbers are reviewed and a process is undertaken to review the numbers issued by the
OFM and determine if this is an adequate number to plan for. The process could come up with a growth
number similar to the numbers generated in 2006.
Existing Conditions Housing and Economic Trends — Ms. Barlow covered the major points of the
Report:
Population/Demographic Trends:
• Steady population growth, 1%annually
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• City has a higher percentage of people over the age of 65. Average age is 39.8 vs the County
at 37.2
• Less City residents have higher education levels than those of the County at 21%vs 28%
• City's median household income is less than County$48,000 vs $49,200
Housing trends:
• Modest housing growth
• Characteristics are changing
o More multifamily is being built than single family
o Number of renters is increasing
o Average household size is decreasing
o Percentage of households with children is decreasing
• 36%of all households pay more than 30% of their income on
There was discussion among the Commissioners and staff regarding the changing trends for
housing. Why is more multifamily housing being built? Are fewer homes available to buy or is it
that people don't want the hassle of owning a home? Can the millennials afford a single family
home or do they want to? The changing demographics of the City's population,trending to older
empty nesters, some don't want to deal with a large home any longer.
Economic Trends
• Service based economy providing commercial, providing commercial, professional, and retail
services.
• City economy has been slower to recover from the recession
• Regional Commercial and Corridor Mixed Use zones realized the largest decrease in sale
during the recession
o In 2007 the Regional Commercial zone produced 43%of the taxable retail sales(TRS)
o In 2013 the Regional Commercial zone produced 40% of the TRS
o 2004-2014 TRS in the Mixed Use Center zone have doubled
Land Use Summary
• 50% of all the City's land use is single family housing
o 90%of all residential zoned land is single family
o 10%of all residential land is zoned multifamily
• The City has approximately 3,000 acres of vacant land, which is predominately located in the
northeast part of the City
Development Trends
• Residential Development: There has an increase in multifamily housing construction to meet
demand—the City has a vacancy rate of 4%
o Most multifamily construction is locating in Mixed Use Center and Corridor Mixed
Use zones
o Only one project was built in a MF-1 zone
o No multifamily projects have been built on Sprague
o This generally indicates the demand for housing types is changing
• Commercial Development:
o Retail sales recently recovered to pre-recession levels
o Demand for commercial properties is weak
• Office space vacancy rate is over 20%
• Retail vacancy rate is improving— 10% in 2012 to 6% presently
o Indicates an oversupply of office space
• Buildable Residential Land: Almost 70% of buildable residential land is zoned single family,
11%multifamily, 19%Mixed Use. This does not consider land size or distribution for ease of
aggregation.
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• Buildable Commercial and Industrial Land: Spokane Valley lacks small scale, neighborhood
oriented commercial areas within walking distance to many of the residential areas.
o Limited new industrial development
o Vacancies have decreased from 20%to 10%
o Indicates at some point new space many need to be developed
The consultants were asked to look at some of the City's current zoning issues and come up with
possible solutions for these issues.
• Medium Density Residential Zoning
o Problem: The MF-1 zone has not had multifamily development since 2012
• One permit in the MF-1 zone since 2012,while almost 300 units built per year
in other zones.
• City has heard multifamily projects are not feasible in this zone
o Conclusions: Density limit is too low to make development feasible at current rent
levels and development costs
• Multifamily tax exemptions for medium density housing types
• Allow other housing types that are less expensive to construct
• Adjust setbacks, lot width,development standards, etc.
• Mixed Use Development
o Problem: Corridor Mixed Use (CMU) has not realized adequate levels of new
development along Sprague and Trent
• Mixed Use is typically a vertical development with multifamily units on upper
story and retail on the ground floor
o Conclusions: Lack of redevelopment is due to project economies
• Anticipated rents do not support vertical development
• Not an issue with zone regulations
• Trent more affected than Sprague due to the lower land values, proximity to
industrial uses and railroad tracks,and distance from Interstate-90(I-90),can't
be as competitive as other locations.
• Consider multifamily tax exemptions
• Adjust setbacks, lot width,development standards, etc.
• Office Zone
o Problem: Recent office development is happening outside of the City's two office
zones around I-90 and in the Mixed Use Corridor zone. Areas with good visibility and
large vacant tracts of land
• Office zones have seen little office development since 2004
• Zones are concentrated along Argonne, Pines and Evergreen Corridors
• Zones have a mixture of uses, retail and single family
• Parcel sizes are less than 0.75 acres, which makes them hard to assemble for
sizable new development.
o Conclusions:
• Typical small office building since 2004 had at least 20,000 square feet and
parking
• Generally office development requires a minimum site of 35,000 square feet
or more for a new project
• Office and Garden Office zones have few adequate sized sites which are vacant
or can be redeveloped
• Mixed Use Center and other areas close to I-90 are better suited to
office development
• Allow more uses in the Office zone
• Medical office uses may see a demand linked to aging population
• Vacant areas in the Office and Garden Office are along major
corridors and may be suitable for multifamily
• Consider more opportunity for residential uses
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• Consider rezones accordingly
• Neighborhood Commercial zoning — Can the City develop small scale retail uses in
neighborhoods
o Problem: City lacks small-scale neighborhood-oriented commercial areas within
walking distance of residential neighborhoods
• Small local business support a vibrant retail market and creates community
character
o Conclusions: Limited vacant sites at major intersections to support small scale retail
development
• Residential areas surrounding sites are low density—not enough population to
support retail
• Proforma analysis indicated vertical mixed-use not feasible
• Consider rezone vacant parcels to neighborhood commercial
• Consider rezone intersections as Neighborhood Commercial for
redevelopment
• Review parking requirements for Neighborhood Commercial uses
• Consider rezones accordingly
The transportation existing conditions were covered briefly. It compares where the residential land is
compared to where people travel to work. The report highlights how people get to work:
Approximately 40,000 commute into the City for work, about 23,000 leave the City and 14,000 live
and work here. Of the people commuting to work, 80% of them drive alone.
• Challenges:
o Many residential streets do not have curb, gutter, or sidewalks — could benefit from
enhancements
o Long blocks and high traffic speeds make it difficult to cross major streets—impedes
transit use,walking/biking, etc.
o Transit service is minimal in parts of the Valley, requiring that people drive to reach
destination
o The regions position on major freight rail corridor increase risk of train delays caused
by at-grade-crossings
o Unattractive streetscape, lack of gateway features, and public spaces on side of streets
• Opportunities:
o Streets in good repair—allow opportunities to invest in other city priorities
o Good Traffic Level of Service
o Grid system can support a considerable amount of additional economic development
o Good connections to freeway and railway network support economic development
opportunities
o Strong pedestrian/bicycle plan that is expanding the trail network with regional and
federal funding.
Ms.Barlow said the next touches on the Comprehensive Plan elements would be the joint meeting with
the City Council on May 3, a retail and tourism study update on May 12, water resource inventory on
May 26 and an overview on tiny houses on June 16. This schedule is subject to change depending on
other matters which may need to come before the Commission. Commissioner Stoy confirmed the
second public hearing for the marijuana regulations was scheduled for May 12, 2016.
B. Study Session: Comprehensive Plan Focus Areas
Economic Development Coordinator Mike Basinger explained this would be a primer for the joint
meeting with the City Council. The intent is to have a lean,understandable document. The City would
like to incorporate its economic development initiatives into the plan. Staff would like to make sure
that the Community's vision is incorporated into the plan as well as the priorities of the Commission
and the City Council. One of the points of the exercise at the joint meeting will be to determine if the
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focus areas adequately reflect the Council/Commission/Community priorities and determine if
anything is missing. The focus areas are not meant to be all encompassing. Mr.Basinger covered each
element and touched on the community and economic development priorities. Commissioner Stoy
asked if the City had the ability to annex land. Mr. Basinger said the City could annex any land in the
City's UGA (Urban Growth Area). He also said there are some areas which are between two
jurisdictions which require joint planning,but expansion would likely occur north or south of the City.
Each topic is an element of the Comprehensive Plan. There are required elements as well as some
which are options. Mr. Basinger explained on each page there are community priorities, economic
development priorities and best practices for each element. The community priorities have come from
the many outreach efforts to engage the community in the process of developing the direction of the
Comprehensive Plan. The economic development priorities have been developed through studies the
City has engaged in to guide our economic development efforts. There are state requirements which
must be included, and best practice options which the Commissioners and Council can consider.
GOOD OF THE ORDER: There was nothing for the good of the order.
ADJOURNMENT: Commissioner Stoy moved to adjourn the meeting at 7:50 p.m. The vote on the
motion was unanimous in favor,motion passed.
J'66)121A_D 4)-44, /2-qi
Chair Heather Graham Date signed
Secretary Deanna Horton