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2011, 04-19 Study Session Minutes MINUTES SPOKANE VALLEY CITY COUNCIL REGULAR MEETING STUDY SESSION FORMAT Spokane Valley City Hall Council Chambers Spokane Valley, Washington April 19, 2011 6:00 p.m. Attendance: Councilmembers Staff Tom Towey, Mayor Mike Jackson, City Manager Bill Gothmann, Councilmember Cary Driskell, Acting City Attorney Dean Grafos, Councilmember Neil Kersten, Public Works Director Brenda Grassel, Councilmember Kathy McClung, Community Dev Director Arne Woodard, Councilmember Mike Stone, Parks & Rec Director Lori Barlow, Senior Planner Mike Basinger, Senior Planner Absent: Morgan Koudelka, Sr. Administrative Analyst Gary Schimmels, Deputy Mayor Carolbelle Branch, Public Information Officer Chris Bainbridge, City Clerk Mayor Towey called the meeting to order at 6:00 p.m. At the request of Mayor Towey, City Clerk Bainbridge called roll; all Councilmembers were present except Deputy Mayor Schimmels. It was moved by Councilmember Grafos, seconded and unanimously agreed to excuse Deputy Mayor Schimmels from tonight's meeting. ACTION ITEMS: 1. First Readin�posed Ordinance 11-007 Comprehensive Plan Amendments — Mike Basinger After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Grafos and seconded to advance ordinance 11-007 to a second reading. Senior Planner Basinger gave a brief recap of the amendments covered by these four ordinances, including the one proposal on Walnut Street and the applicant working on a development agreement, and the separate ordinance repealing SARP in its entirety. Councilmember Gothmann noted page 16 table 4.6 should indicate those figures are in $1,000 of dollars, and said page 20 table 4.7 needs a title and a legend for each column. Mayor Towey invited public comments, and no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed.• None. Motion carried. 2. First Readin�posed Ordinance 11-008 Comprehensive Plan Zonin�p Amendments — Mike Basinger After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Grafos and seconded to advance ordinance I1-008 to a second reading. Senior Planner Basinger explained that this is the zoning map to reflect the amendment on Progress and Sprague. Mayor Towey invited public comments, and no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed.• None. Motion carried. 3. First Reading Proposed Ordinance ll-009 Comprehensive Plan Amendment CPA 03-11 — Mike Basin�er After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Grafos and seconded to advance ordinance 11-009 to a second reading. Attorney Connelly explained that this and its Council Study Session Minutes April 19, 2011 Page 1 of 5 Approved by Council: Apri126, 2011 companion ordinance 11-010 work together to repeal in its entirety, the Sprague/Appleway Revitalization Plan (SARP); and that the recitals set forth the legal requirements and the timeline concerning this process, and he noted in particular those findings as noted on page four of the ordinance. Mayor Towey invited public comment. Dwi�ht Hume, 9101 N. Mountain View Lane, Spokane, Wa: via the clerk, copies of an April 19, 2011 letter from CarMax were circulated to council urging repeal of the SARP and giving some background of their company. Mr. Hume then read his own April 19, 2011 letter to Council, in which he mentions he represents Harlan Douglass who owns seventeen parcels regulated by SARP, and the Hultman Family Trust, which owns nine parcels within SARP; and speaking on their behalf, he commended council for keeping their campaign promise to reserve the plan; and he thanked Council for listening to the land owners. Tony Lazanis, Spokane Valley: spoke of the restrictions on those properties in the SARP area and voiced his hope that council does what it plans to do, as it would be a good thing for the valley. Steve Neill, 10820 East 18` spoke in favor of eliminating the SARP and mentioned that we need free market principles not government regulations if we want to get out of this recession, and he urged the end of the SARP. David Solberg, 12815 E Spra� said he owns a business located within the SARP boundaries and he urged council to repeal it and move forward. Bariy Currv, 8022 E Spra�ue Ave: said the SARP plan took away uses for their property and he urged Council to repeal it. Susan Scott, 205 S Ever r� een: read her written comments in support of the repeal of the Sprague-Appleway Revitalization Plan. Council comment included Councilmember Gothmann discussing and refuting six phases of opposition of this plan; Councilmembers Grafos and Grassel speaking of the positive impact removing this plan will have for the city and property owners, and commending those citizens for their perseverance; and Mayar Towey thanking the Planning Commission for their work on this issue, emphasizing the detriments to a plan with over 200 pages of regulations, mentioning that the one-way versus two-way is still an issue to address in the future, and of the need to look at options to help the small businesses along Sprague, and to discuss those options with those business owners. Yote by Acclamation: In Favor: Mayor Towey, and Councilmembers Grafos, Grassel and Woodard; Opposed: Councilmember Gothmann. Motion carried. 4. First Readin P�rOposed Ordinance 11-010 Comprehensive Plan CPA 03-11 Zonin� Ma� Amendment — Mike Basin�er After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Grafos and seconded to advance ordinance 11-010 to a second reading. Attorney Connelly explained that this is a companion to the previous ordinance, and amends the zoning text book 2 and 3 by repealing it and amends the zoning by returning the zoning which existed prior to the SARP. Mayor Towey invited public comment; no comments were offered. Vote by Acclamation: In Favor: Mayor Towey, and Councilmembers Grafos, Grassel and Woodard,• Opposed.• Councilmember Gothmann. Motion carried. NON-ACTION ITEMS: 5. Disaster Cost RecoverX, FEMA — Gerry Bozarth, Spokane Emer�?ency Mana eg ment Mr. Gerry Bozarth of Spokane Emergency Management, Mitigation and Disaster Recovery, explained that his agency represents all citizens in cities, towns and unincorparated areas; they have six members who take care of emergency management issues in Spokane and two more who handle homeland security as compared with a staff of 27 in similar sized Pierce County. Through his PowerPoint presentation, Mr. Bozarth explained about the categories of reimbursement assistance and gave examples of those categories; said there must be damage cost thresholds as established by FEMA according to per/capita rates; and stated that they are here to assist when disaster strikes, and that their office is always staffed and open. Mayor Towey called for a short recess at 7:15 p.m. and reconvened the meeting at 7:29 p.m. Council Study Session Minutes April 19, 2011 Page 2 of 5 Approved by Council: Apri126, 2011 6. Railroad Quiet Zones — Neil Kersten Public Works Director Kersten explained that last fall a group of neighbors from the Park and Vista area petitioned for a quiet zone, and that staff has been asked to research cost and the procedure to get such approval; and said that the total cost far the preliminary design and to get that to the FRA (Federal Railroad Administration) is approximately $82,551; and said about mid-point in the process, or task #11 as identified in the scope of work, we should know what the total project would entail and whether we would want to continue; adding that sometimes it takes more than a year to get a response from the railroad. After council and staff discussion, it was determined that some time after the budget process, Mr. Kersten will come back with a timeline; that staff will try to determine the City of Millwood's stance on this issue or if they are interested, how or whether this would fit under the Bridging the Valley Project, and research how to fund this item. 7. Mission Trailhead — Neil Kersten Public Works Director Kersten said he was asked to come back with a cost estimate for improving Mission Road for trailhead access; said that the estimated project cost to pave the road from the new Mission Parkway to the end of the road, pave a 10' pathway from the parkway to the trailhead, provide twenty parking spaces and a vehicle turnaround, is approximately $150,000; and said the cost does not include additional right-of-way, which will be needed at the end of the road for the vehicle turnaround. Mr. Kersten said he spoke with Centennial Properties and they are willing to work with us and have no issues about keeping the trail at this location; that he also spoke with State Parks and they are open to putting parking along the trail on the state property and there are a number of options on how to design that, but said they are "on board" with looking at this site; that they are interested in having access on to their properties, it would be a benefit to have a road, and that they are willing to work with us. Mr. Kersten also mentioned that Council has the right to waive street requirements, so it wouldn't have to meet full street requirements if that is council's decision. There was some discussion about how to fund this project, about taking the Old Mission right-of-way and carrying it straight, but Mr. Kersten explained that the curve must be there in order to connect to the sidewalks along the road per street standards. Mr. Kersten also mentioned that they will have a public process, after which staff will return to council with the actual project and the project cost. Mr. Jackson said one of the possible funding mechanism is the new capital projects fund but that those funds are limited, adding that it will be some time again before Mr. Kersten comes back with additional information. Council agreed that they would like to see this project mare forward. Mr. Kersten mentioned the energy grant for the Greenacres Trail and said he will combine those two projects during the public process since the facilities are right next to each other, so that staff can get the input at the same time. Councilmember Grassel said she would like to see a more detailed drawing, perhaps a CAD if that would be cost effective; and there was some discussion about putting this in the park comp plan and of the possibility of having the river user group participate as welL Mr. Jackson said that any access to the river would be more of an individual project; that staff is considering updating the Parks & Recreation Masterplan, and that perhaps this would best fit with the finalization of the shoreline program, adding that Council has the option to review and supplement that Masterplan. Mr. Kersten explained that he will get a schedule together as the first issue is to determine where everyone wants everything, as we don't want to spend a lot of time on a specific design until we lock that design down. 8. Detention Services Draft Interlocal Agreement with Spokane Coun .— Morgan Koudelka Senior Administrative Analyst Koudelka explained that the since our City's inception, we have contracted with Spokane County for incarceration service; and in 2010, Spokane County Jail and Geiger Corrections combined operations into one enterprise fund; that the new detention services fund created a cost methodology that did not comply with the existing agreements; he said the County began negotiating with the City of Spokane and with us to create a new interlocal agreement which would be focused on creating and sustaining partnerships and promoting ongoing communication; and used his PowerPoint Council Study Session Minutes April 19, 2011 Page 3 of 5 Approved by Council: April 26, 2011 presentation to go over the highlights of the draft ageement; after which Council agreed to have this move forward for a motion consideration next week. 9. Advance Agenda — Mayor ToweX Councilmember Woodard asked about the Broadway drywells and the road issue talked about last week, and Mr. Jackson said that is not on the "pending list" yet and staff will discuss that in tomorrow morning's meeting. 10. Council Check-in — Ma ToweX Councilmember Woodard said he attended a meeting at CenterPlace last Thursday concerning a transportation HCTB meeting; went to the Spokane Regional Transportation Council (SRTC) meeting that afternoon, which was mostly in executive session which he could not attend; attended the evening State of the City Forum at CenterPlace; the Chamber of Commerce Business Connections; the Spokane Valley Parks and Recreation Re-opening of Discovery Park and tree planting, and that he is getting familiar with the many functions of council. Councilmember Grafos said he also attended the State of the City Address where they heard citizen concerns about traffic and Greenacres Park; went to the opening at Discovery Park; participated in our City's Finance Committee meeting where they set June 14 as the date far the budget retreat, and discussed a number of basic guidelines and parameters to bring to the full council in June, as well as discussed a number of economic development enhancements to the Sprague/Appleway Corridor, which they will bring to full council in the next few weeks. Councilmember Grassel said she also attended the State of the City address and the Discovery Park opening. Mayor Towey mentioned the City-initiated House Bill 1922, which now needs the Governor's signature; that this is the bill to force the cattle trucks to go through the port of entry, and mentioned it is unique to have a city-initiated bill. Mr. Jackson added that our lobbyist, Ms. Taylor will be giving an update to council in a few weeks. Mayor Towey also announced that we were selected for the Well City Award, and he congratulated the Human Resources Department for their efforts in that regard. The Council of Governance Meeting is scheduled for May 20 at the Fairgrounds and Mayor Towey said the County is soliciting agenda items, and if council has issues, to please send him or Mr. Jackson a note and they will forward it to the County for their consideration. Councilmember Gothmann mentioned he would like an update on animal control; and Mayor Towey asked Mr. Gothmann to write that request to him so it can be forwarded to the County. 11. City Manager Check-in — Mike Jackson Regarding the Legislative Budget and the request by Spokane Valley Partners, Mr. Jackson said the House included about $100,000 but the Senate has not; that the legislature will meet in a special session in early May so there is still hope some funds could be awarded; that our City's Wellness budget is $900, but our Human Resources (HR) Department applied for and received over $2,500 in grants from AWC (Association of Washington Cities), which means we have not had to touch our own money for any of our offered HR programs. Mr. Jackson said the city survey was mailed to about 1200 citizens yesterday, and if citizens are interested to see what is included on the survey, it is on our website for viewing. Mr. Jackson added that there have been many questions at the State of the City Addresses concerning the paving of Boone, and he asked Mr. Kersten to give some clarification. Public Works Director Kersten explained that right-of-way on Boone between Flora and Barker is an old railroad right-of-way, and he distributed a map to councilmembers of the area in question; and explained that the upper left-hand corner starts with Flora, and that the highlighted yellow sections are owned by the City, which were deeded to the City upon incorporation, and the remainder of the right-of-way is still owned by the County; from Flora to Long with the new park located at the corner, we own all the road right-of-way; and currently the road is paved to Ark Street, and that we will be paving from Ark to Long Street; and all of Long north and south will also be paved; on the bottom part of the map showing Long to Council Study Session Minutes April 19, 2011 Page 4 of 5 Approved by Council: Apri126, 2011 Greenacres, he said we only own some sections of the road right-of-way and the County still owns over half the right-of-way, so that section will not be paved until the County transfers that ownership to us. Mr. Kersten said staff and the County met last fall and said that we had understood they were interested in transferring that to the City, but said to this point that has not occurred; and before we formally take control of that section, we will likely want to do a Level One Assessment since it is an old railroad; and said that alone will take a few months, so the process to get ownership will be a while. Mr. Kersten said the section from Greenacres to Barker has two roads, one on the north and one on the south, and they loop around and come together at Wendy's; and said the entire stretch will be studied for the Greenacres Bike Trail There being no further business, it was moved by Councilmember Grafos and unanimously agreed to adjourn. The meeting adjourned at 8:50 p.m. � �• Thomas E. Towey, Mayor ATTEST: , J s '���� hristine Bainbridge, City Clerk Council Study Session Minutes April 19, 2011 Page 5 of 5 Approved by Council: Apri126, 2011 C ���� 12800 Tuckahce Creek Parkway • Richmond, VA 23238 (804) 747-0422 April 19, 2011 Councilmember Schimmels City of Spokane Valley 11707 E. Sprague, Suite 106 Spokane Valley, WA 99206 Thank you for the opportunity to provide written comment on the proposal to repeal the Sprague Appleway Revitalization Plan (SARP). We also appreciate the time we were given to speak at your April 12, 2011 Council meeting. CarMax Auto Superstores, Inc., a fortune 500 retailer based in Richmond, Virginia, is in favor of repealing SARP as currently under consideration by the Spokane Valley City Council. The CarMax store development team is of the opinion that without full repeal of SARP, development of a new CarMax store is simply not feasible. Because of this, we urge the Council to repeal this plan. CarMax is a national retailer with 104 stores in 50 markets. In fiscal year 2011 (March 2010 - February 2011), we earned $8.9 billion in revenue by selling over 396,000 cars. During this year the company was tisted as a Fortune Magazine "100 Best Companies To Work For" for the seventh consecutive year. CarMax currently has a 9 acre site under contract located at approximately 7800 East Sprague Avenue in 5pokane Valley where we would like to build a prototypical CarMax Auto Superstore used car sales facility. The facility to be constructed totals approximately 45,000 square feet of building space valued at approximately $8 million. During construction, a large contingent of local tradesmen and sub- contractors will be working on this project for almost 9 months. Once open, we project that this store will employ between 100 and 120 people, depending on sales levels. In addition to this, our research indicates that the City of Spokane Valley collects 2.2% sales tax on all vehicle purchases. With an average of 300 vehicle sales per CarMax store and an average selling price of $18,000 per vehicle, we estimate CarMax could contribute approximately $1.4 million in sales taxes to the City coffers. Currently CarMax is in the "due diligence" phase of the project, which is a 90 day period where we evaluate the feasibility and costs to develop the site. CarMax has retained CenterPoint Integrated Solutions to conduct this due diligence study of the property. CenterPoint considers and evaluates the physical, jurisdictional, and political constraints to developing each particular store and they provide CarMax with their professional opinion regarding the "develop-ability" of each potential site. CenterPoint has reviewed the development regulations contained in SARP. It is their opinion that the development constraints placed on the proposed CarMax site in Spokane Valley are prohibitive to CarMax developing a prototypical store at this location. What follows are details of the major constraints. There may be other constraints not yet discovered as the document is extensive and some of the requirements are vague and subject to interpretation. The site is located in the Gateway Commercial Center District Zone. The land use proposed by CarMax is permitted, however the following code sections will likely prohibit the development: TM■ AY*O SUP�RSTOR■ CarMax Spokane Valley: SARP Development Constraints April 19, 2011 Section 2.2.6 Private Fronta�e — Vehicle display options are limited to one row of vehicles and an access lane in front of the building fronting the street. This does not meet CarMax site design standards. Also, the typical CarMax secure vehicle display area, which is separated from customer parking, is not allowed. Section 2.3.1 Street Standards — A"pre-located" street is required directly through the middle of the four parcels that CarMax has under contract. This would split the site in half and require that CarMax dedicate a 40 to 60 foot wide public right-of-way to the city. This would be about 1 acre lost for public ROW, and it would cause enormous operational issues. The maximum block length defined in this section is 660 feet; the CarMax parcel is over 700 feet from Sprague to Appleway. The maximum block size is 5 acres; the CarMax site is just over 9 acres. Both of these issues would trigger additional street requirements per SARP, further splitting the site. Section 2.3.2 Open Space Standards — SARP requires public open space equal to 50 SF per 1,000 SF of development. For a 9 acre site, this calculates to about 19,000 SF or almost one-half of an acre, which would be lost for development. Section 2.4.3 Parkin� Guidelines—The maximum number of parking spaces is limited to 5 spaces per 1,000 SF of showroom space. Per SARP, the maximum number of spaces would be 64 for customers and employees. Based upon our experience with facilities of this size, CarMax needs at least 150 spaces in the customer/employee lot to function efficiently and avoid illegal customer parking. Section 2.5 Architectural Standards — The architectural standards contain numerous requirements limiting maximum building lengths, massing, and building materials that will necessitate significant alterations from the prototypical buildings. These alterations increase building costs and reduce operational efficiencies. In addition, SARP "strongly encourages" green building, specifically LEED, design guidelines. These requirements quickly add additional expense to any development. In conclusion, if SARP is not repealed, it is doubtful that CarMax will proceed with a store within the boundaries of SARP due to all the constraints noted above. If SARP is repealed, based on a discussion with Spokane Valley development staff during a pre-application meeting on April 14, it is our opinion that the previous zoning of RC — Regional Commercial will support the development of a CarMax Auto Superstore. Therefore, we respectfully request that you repeal SARP and allow our development to proceed. Thank you again for the opportunity to comment, Very truly yours, �L a(M - �i Jo M amara Real Estate Manag r 2 i � 4 D J HUME Land Use Planning Services 9101 N. MT. VIEW LANE Spokane, WA 99218 509-435-3108 (V) 509-467-0229 (F) 4-19-11 Spokane Valley Councii 11707 E Sprague Avenue Spokane Valley WA 99206 Ref: CPA-03-11 Mayor Towey, Members of the Council: As most of you know by now, I represent Harlan Douglass, who owns 17 parcels within the area regulated by SARP. I also represent the Hultman Family Trust, who own 9 parcels within SARP. Over time I have also represented the late Chuck Hogan of H&H Mold, who was also within the area regulated by SARP. None of these owners had anything good to say about SARP and as larger land holders who thrived off of the rental market, it became an added burden to them to have their properties further limited in use, rendered non-conforming, or imposed upon to give up land for roads that had no future purpose, but to carve up their holdings and render them useless for larger tenants. It is on their behalf that I commend this council for adhering to your campaign promise to reverse this ideological notion that new urbanism is for any city, small or large, young or old. If we have proven anything with this effort it is that, given the time, money and expertise, a mixed use plan can be created. Indeed SARP represents the manifestation of that effort. Nonetheless, it doesn't mean it will work simply because it was written and adopted. It won't be until all the available land is absorbed, that vertical growth is needed to accommodate the ongoing population desiring to move to the Spokane Valley. Then, like Bellevue or Seattle, or Portland, mixed use has earned its place and will be embraced as the right solution for those urban growth problems. Until then, it needs to be repealed, shelved and preserved for when its time has come. I would like also to comment on the countless hours put forth by staff to accommodate this councils mandate to meet with each and every SARP owner in work shop discussions and seek solutions to their concerns about non- conformity, use restrictions and design requirements that imposed unneeded hardship and burdens. To everyone's credit on your side of the counter, some solutions were found. But it became painfuily clear that we were just treating symptoms and not the cause. Tonight, you are dealing with the cause. I would conclude with one more comment to those who claim that the removal of SARP leaves us with no plan. The fact is, it {eaves us with a plan that is acceptable to the citizens, planners, planning commission and legislative body of this great city and accepted by the state of Washington as in full compliance with the Growth Management Act, namely the underlying and adopted comprehensive plan of 2007. Do not be fooled or concerned by such rhetoric that there is no plan, for it comes from the mouth's of those who don't own land burdened by SARP. These are the people who would love to experience the ambiance of Portland without the 8 hour drive and at everyone else expense. Thank you Council for listening to the land owners who have been waiting all these months to get back to the level playing field offered to the rest of their competition within this City of the Spokane Valley. R ectF 11y submitted, gh J e Land Use Plannin ervices Copy: Harlan Douglass Hultman Family Trust H & H Mold My name is Susan Scott, 205 S. Evergreen Rd. 4/19/11 Just in case there is any doubt, I whole heartedly support the repeal of the Sprague-Appleway Revitalization Plan. The SARP was never designed with the best interests of the majority of existing businesses and landowners in mind. Its sweeping changes were designed to wipe the slate clean and rebuild the area in the image of a cutting edge, new urbanist community. In my opinion, that's not who we are. That's not why we live here. The city's million dollar investment in SARP, pales in comparison to the collective millions, invested by existing businesses and landowners that are being threatened and harmed by the down-zoning, unfunded mandates, and non- conformity issues created by the redistribution of entitlements, and the introduction of a form based code. This amount of collateral damage is completely unacceptable. Any plan that destroys more existing investment than it can plausibly create deserves to be repealed. Please, pass this comp plan amendment so our city can begin planning for its future in an economically responsible manner that's consistent with valley culture and values that respect property rights and support the free market system. Thank you.