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2023-08-24 PC APPROVED SIGNED MINUTESSpecial Meeting Minutes Spokane Valley Planning Commission Centerplace Regional Event Center August 24, 2023 I. Planning Commission Chairman McGrath called the meeting to order at 6:00 p.m. The meeting was held in person and via ZOOM meetings. II. The Commissioners and staff stood for the Pledge Of Allegiance. III. Administrative Assistant Robin Holt took attendance, and the following members and staff were present: Susan Delucchi Val Dimitrov Karl Granrath Walt Haneke Bob McKinley, absent Nancy Miller Daniel Wilson Tony Beattie, Senior Deputy City Attorney Chaz Bates, Planning Manager Martin Palaniuk, Associate Planner Levi Basinger, Planner Greg Norris, Planner Chad Knodel, IT Manager Robin Holt, Administrative Assistant There was consensus from the Planning Commission members to excuse Commissioner McKinley. IV. AGENDA: Commissioner Delucchi moved, and it was seconded to approve the August 24, 2023, agenda as presented. There was no discussion. The vote on the motion was six in favor, zero against, and the motion passed. V. MINUTES: Commissioner Haneke, and it was seconded, to approve the July 13, 2023, minutes as presented. There was no discussion. The vote on the motion was five in favor, zero against, and the motion passed. Chairman Granrath abstained from the vote. VI. COMMISSION REPORTS: Commissioner Delucchi reported that she attended the City Council meeting where the Council discussed the change to the Spokane Valley Municipal Code regarding Accessory Dwelling Units. She was very pleased with the Councils discussion and respectfulness towards the decision of the Planning Commission regarding the item. She also requested additional study sessions regarding the new legislation. There were no other Planning Commission reports. VII. ADMINISTRATIVE REPORT: Planning Manager Chaz Bates reported that City Council voted against the CTA-2023-0002 regarding removing the owner -occupied requirement for Accessory Dwelling Units and they voted to approve CPA-2023-0001. He also mentioned that staff does not have any current items on the advanced agenda. 8-24-2023 Planning Commission Minutes Page 2 of 5 VIII. PUBLIC COMMENT: Barb Howard (Spokane Valley) thanked the Planning Commission for recommending denial of the change to Accessory Dwelling Units. There was no additional public comment offered. IX. COMMISSION BUSINESS: a. Legislative Report Planning Manager Chaz Bates reported that during the 2023 Washington Legislative Session there were 2,156 bills that were introduced and 485 of them were passed into law. The major themes of those laws centered around housing and planning, public safety, and behavior health. 2023 legislation has the most significant changes to the Growth Management Act (GMA) in more than 20 years. The changes included adaptive building reuse, accessory dwelling units (ADU's), addressing climate change, annexations, and middle housing. Mr. Bates explained that all of these new laws will begin in the year 2026, six months after the periodic update. i. HB1181—Climate Change Planner Greg Norris presented a staff report. He explained that House Bill 1181 is an act relating to improving the state's climate response through updates to the states planning framework. It will establish the state's climate response through amendments to the Growth Management Act. HB 1181 adds a new goal and related amendments to the GMA. As part of its periodic update the city will be required to incorporate into its comprehensive plan: • A greenhouse gas (GHG) emissions reduction sub -element that requires actions to reduce overall GHG emissions, identify sources of vehicle miles traveled per capita, and establish goals, policies, and action to reduce and eliminate local greenhouse gas emissions. • A resiliency sub -element that includes exploration of climate impacts, audits of existing plans and policies, and assessments of vulnerability and risk. (The City will need to choose to select or adapt existing goals and policies, develop new goals and policies, or update the hazard mitigation plan). Commissioner Delucchi expressed concern about the state taxing residents based on the number of miles driven each year. Commissioner Haneke commented that he is a proponent of tax by the mile because it will even taxes out between gas vehicles versus electric vehicles. Staff expressed that their presentation just addresses the changes that must be included in the next update to the comprehensive plan. ii. HB1042 —Use Of Existing Buildings For Residential Purposes and 11B1337 — Accessory Dwelling Units Planner Levi Basinger presented a staff report. He explained that House Bill 1042 is an act relating to the creation of additional housing units in existing buildings. The bill states that non-residential buildings located within a zoning district that permits multi -family residential housing must allow 8-24-2023 Planning Commission Minutes Page 3 of 5 for the addition of housing units at twice the max density of the zone. This applies to Multifamily (MFR), Mixed Use (MU) and Corridor Mixed Use (CMU) zones. Based on the legislation, the City is preempted from requiring additional parking for new dwelling units, imposing design restrictions, denying permit due to nonconformity with current requirements, or requiring transportation concurrency study or environmental study for new units. Mr. Basinger explained that House Bill 1337 is an act that expands housing options by easing barriers to the construction and use of accessory dwelling units. Under the new legislation, the City must allow two ADU's per lot in all zoning districts that allow single-family homes. The ADU's can be attached, detached, or a combination of both. ADU's must also be allowed within accessory and detached buildings and allowed at the lot line when abutting public alley. Mr. Basinger stated that the City may limit or prohibit ADU's where development is limited based on natural constraints (critical areas, floodplains, etc.), prohibit where there are no sewer services available, and restrict the use of ADU's as short-term rentals. However, the City cannot prohibit the sale of an ADU separate from the primary unit, cannot require owner occupancy, cannot require street improvements, cannot establish maximum size less than 1,000 square feet, cannot impose design requirements more restrictive than primary dwellings, cannot access impact fees greater than 50% of primary dwellings. Mr. Basinger stated that the City must also adopt specific parking requirements. Zero parking space are required if the ADU is located within a half mile of a major transit stop, one parking space is required for lots 6,000 square feet or less, and two parking spaces are required for lots greater than 6,000 square feet. However, the City can require more if a transportation study is completed by a certified transportation or land use professional that demonstrates that the lack of parking would be detrimental to the safety of drivers, pedestrians, or cyclists. iii. HB1110 —Middle Housing & HB1425 —Annexation Sales & Use Tax Associate Planner Martin Palaniuk gave a staff report on HB 1425. He reported that HB 1425 is legislation regarding the facilitation of municipal annexations. He explained that the Growth Management Act assumes that unincorporated Urban Growth Areas will be annexed over time by cities. Cities are better equipped to provide urban services than counties and allow a wider array of housing types at greater densities than counties. Cities have resisted annexing unincorporated areas due to the fiscal impact of providing the urban services. The Annexation Sales and Use Tax provides the financial incentive for cities to annex areas. Mr. Palaniuk explained that an interlocal agreement between the county and city is required to balance the financial impacts of annexation. The annexation can negatively impact counties as cities annex land for commercial and industrial lands while leaving residential lands to the county. The interlocal agreement requires a discussion about balancing such annexations to prevent financial damage to counties who keep residential areas and give up commercial and industrial areas. Cities can receive: • 1/10th of one percent sales tax credit for annexations of more than 2,000 in population but less than 10,000. • 2/10th of one percent sales tax credit for annexations of more than 10,000 in population. 8-24-2023 Planning Commission Minutes Page 4 of 5 • Requires an interlocal agreement for annexed areas in which a sales and use tax is imposed to address certain criteria regarding loss and gain of revenue, development and ownership of infrastructure, and revenue -sharing agreements. • The end date to impose the tax is July 1, 2028. • All revenue collected under this sales tax credit may only be used to provide, maintain, and operate municipal services for the annexation area. Mr. Palaniuk gave a staff report on HB 1110. He reported that HB 1110 was passed to increase middle housing in areas traditionally dedicated to detached single-family housing. This bill only applies to Cities (it does not apply to Counties). The City of Spokane Valley falls within Tier One of applicability (based on population) so the City must allow four dwellings per lot unless current zoning allows higher densities and must allow six dwellings per lot if the lots is within a quarter mile of a major transit stop or at least two units are "affordable" (as defined by statute). Mr. Palaniuk explained that "middle housing" is defined in the legislation as "buildings that are compatible in scale, form, and character with single-family houses and contain two or more attached, stacked, or clustered homes including duplexes, triplexes, fourplexes, frveplexes, sixplexes, townhouses, stacked flats, courtyard apartments, and cottage housing." Mr. Palaniuk stated that density measured in "dwelling units per acre" has traditionally been the way the city has regulated residential land use. HB 1110 introduces the term "unit density" because the bill focuses on the minimum number of dwelling units on a lot versus units per acre. HB 1110 states that the design and development standards may not be more restrictive than those for detached single -unit houses and the permit review must be the same as those applied to single- family detached residences. Mr. Palaniuk said that the bill has restrictions on the amount of off-street parking that can be required. No off-street parking standards may be applied to middle housing located within a half - mile of a major transit stop. Lots with less than 6,000 square feet shall not require more than one off-street space per lot. Lots greater than 6,000 square feet shall not require more than two spaces per lot. Mr. Palaniuk reported that a city can exclude up to 25% of lots that are primarily dedicated to detached single-family houses from implementation of the density requirement if the lots meet certain criteria. The criteria include areas with a certified extension due to risk of displacement, areas with a certified extension due to lack of infrastructure, areas with critical areas and their buffers, and areas subject to sea level rise, increased flooding, susceptible to wildfires, or geological hazards. Lots that cannot be excluded from the density standards are areas for which exclusion would further racially disparate impacts or result in discriminatory zoning, areas within one half mile walking distance of a major transit stop, and areas that are historically covered by covenants or deed restrictions excusing racial minorities. Commissioner Delucchi asked to have representatives from Spokane County and Kootenai County to discuss the availability of water and the status of the aquifer. She also asked if a representative from the Spokane Transit Authority could provide an update regarding their future plans for transportation. She also expressed interest in hearing from the planning departments in Post Falls and Coeur D'Alene, ID to find out their future plans. She asked if the Planning Commission could 8-24-2023 Planning Commission Minutes Page 5 of 5 have a discussion regarding traditional historic neighborhoods within Spokane Valley based on postal codes and historic designations. Chair Granrath asked if new subdivisions can put in restrictive covenants that are in opposition to the legislation. Mr. Palaniuk answered that they cannot. The Commission expressed concern about adequate infrastructure and fire protection services for the additional units. K: rLIZI)ZI) A-WMI 91 ' There was consensus from the Commission to cancel the September 14", 2023 meeting. The next meeting will be held on September 28, 2023. Commissioner Haneke pointed out an error in the Planning Commission bylaws. XI. ADJOURNMENT: Commissioner Haneke moved, and it was seconded, to adjourn the meeting at 7: 41 p. m. The vote on the motion was six in favor, zero against, and the motion passed. K_ %/ZB�-2 3 azl Granath, Chairman Date Signed 17Z Marianne Lemons, Secretary