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ZE-37B-96 fi SPOKANE COUNTY HEARING EXAMINER RE: Application for a Change of Conditions ) to a Prior Rezone, in the Light ) FINDINGS OF FACT, Industrial (I-2) Zone; ) CONCLUSIONS OF LAW, Applicant: Centennial Properties, Inc. ) AND DECISION File No. ZE-37B-96 ) I. SUMMARY OF DECISION Hearing Matter: Application for a change of conditions to a prior rezone, in the I-2 zone. Summary of Decision: Approve application, subject to conditions of approval. II. FINDINGS OF FACT 1. The application requests a change of conditions, to eliminate the second sentence in Planning Condition No. 4 of the rezone decision approved in File No. ZE-37-96, on August 17, 1999; which sentence requires the review of any proposed development on the rezone property at a future public hearing by the Hearing Examiner; as it pertains to the portion of the rezoned property making up the current site. 2. The site is located east of and adjacent to Mirabeau Parkway, north of and adjacent to Indiana Avenue, and south of the Spokane River; in Spokane Valley, Washington. 3. The property is situated in the East 1/2 of Section 10, and the S1/2 and NW 1/4 of Section 11; of Township 25N, Range 44 EWM of Spokane County, Washington. 4. The site is currently referenced as County Assessor's tax parcel nos. 45104.9132, 45105.9133, 45113.9025 and 45114.9028. The site is approximately 76.5 acres in size, not 88.5 acres as indicated in the Staff Report. 5. The applicant and the site owner is Centennial Properties, Inc., Attention Robert Smith, P.O. Box 2160, Spokane, WA 99210. 6. On December 15, 2006, the applicant submitted a complete application for the proposed change of conditions. On June 22, 2007, the City Community Development Department adopted the environmental impact statement (EIS) prepared for the Sullivan Park Center on September 16, 1980. 7. On August 9, 2007, the Hearing Examiner conducted a public hearing on the application. The notice requirements for the public hearing were met. HE Findings, Conclusions and Decision ZE-37B-96 Page 1 Is 8. The Hearing Examiner heard the proposal pursuant to Chapter 10.35 of the City Municipal Code, Section 14.504.040 of the City Interim.Zoning Code, and the City Hearing Examiner Rules of Procedure. 9. The following persons testified at the public hearing: 1 Chaz Bates, Assistant Planner Stanley Schultz Spokane Valley Planning Dept Attorney at Law 11707 E. Sprague, Suite 106 425 S. Alpine Drive Spokane Valley, WA 99206 Liberty Lake, WA 99019 10. The Hearing Examiner takes notice of the City Comprehensive Plan, Interim Zoning Code, Phase I Development Regulations, Critical Areas Ordinance, and Municipal Code; other applicable development regulations; and recent land use decisions in the vicinity. 11. The record includes the documents in the application file at the time of the public hearing; the documents submitted at the public hearing; and the items taken notice of by the Examiner. 12. The site is currently vacant and undeveloped. The westerly one-third(1/3) of the site is relatively flat in topography and sparsely vegetated. The remainder of the site has rolling topography; and is covered with trees, grasses and other native vegetation. 13. The Spokane River lies a varying distance of approximately 115-430 feet from the site, measured from the northeast corner to the northwest corner of the site. 14. City Critical Areas map designate the river as a Type 1 stream, with a 250-foot wide riparian buffer. The City Shoreline Master Program designates the Spokane River as a shoreline of statewide significance, and designates the 200-foot shoreline area located on and northerly of the site in the Pastoral Area. 15. The City Critical Areas maps do not designate any priority wildlife habitat, wetlands or DNR streams on the site. 16. The City Critical Areas maps adopted in 2003 designate the location of a State "Monitored Species" along the Spokane River approximately 500 feet north of the northwest corner of the site. If such designation denotes a den or nest site for a non-game priority species, Section 11.20.060.B.1 of the City Critical Areas Ordinance authorizes the City to restrict regulated uses and activities within one-fourth(1/4) mile of such location. 17. The Examiner takes notice that the Washington State Department of Fish and Wildlife priority habitat database currently shows both a State "Monitored Species" and a State "Candidate Species" in such general location. 18. On August 17, 1999, the County Hearing Examiner approved the rezone of approximately 106 acres of land, including the subject property, from the Rural Residential-10 (RR-10) zone to the I-2 zone of the former County Zoning Code; for the development of recreational facilities, a HE Findings, Conclusions and Decision ZE-37B-96 Page 2 N Y business park, various commercial uses and those uses allowed in the 1-2 zone. The decision found the rezone application to be "counter-complete" as of March 23, 1999,. for the purpose of 0 determining applicable regulations under the County's Application Review Procedures for Project Permits. See decision in File No. ZE-37-96. 19. The rezone site included two (2) disconnected pieces of land, i.e. a 17.3-acre north piece located mostly along the south side of Mirabeau Parkway(formerly Euclid Avenue); and an 88.5- acre south piece located north of the Union Pacific Railway and Indiana Avenue, on both the east and west sides of Mirabeau Parkway. 20. The site represents the easterly 76.5 acres of the 88.5-acre south piece of the 1999 rezone. An environmental impact statement (EIS), habitat management plan and overall conceptual plan was prepared for the overall 229-acre Mirabeau Point Development; including the 106-acre rezone area. 21. County Planning condition#4 imposed by the 1999 rezone decision provides as follows, regarding the overall, 229-acre "Mirabeau Point Development": "4. The proposal shall be developed substantially in accordance with the conceptual plan dated April 29, 1999 and submitted on April 29, 1999, except as modified to comply with the conditions of approval and applicable development regulations. Development of the northerly 17.3 acres of the site under the 1-2 zone is limited to those uses which are eithd outright or by conditional use in both the I-2 zone and the Industrial Park(I-1)er permitted zone. A public hearing review by the Hearing Body is required prior to any site development of those uses proposed along the northerly boundary of the south 88.5 acres of the site located east of Mirabeau Parkway, to determine the suitability of the use with respect to its impacts on the adjacent shoreline and riparian buffer areas, the Centennial Trail, and compliance with applicable development regulations. The detailed site plan presented at a subsequent hearing must address all conditions of approval imposed by the Hearing Body. Any significant changes must be approved through the change of conditions process conducted pursuant to a public hearing. 22. County Planning conditions #9-12 of the 1999 rezone decision specify as follows: r • "9. The applicant and proposal shall comply with the Spokane County Critical F , Areas Ordinance as amended. The site plan presented at time of building permit shall r illustrate the required 250 foot riparian buffer area from the Ordinary High Water Mark il (OHWM) of the Spokane River. 10. The applicant shall comply with and implement the recommendations contained in the Mirabeau Point Habitat Evaluation and Management Plan, with regard to the project site and the off-site portions of the 229-acre Mirabeau Point development. This 1 includes, without limitation, reservation of the central natural area of the development, provision for avian buffer zones, and dedication of 10-11 acres of park land to Spokane i County. The timing of such dedication of park land shall be determined by the County Parks and Recreation Department, after consultation with the applicants and the Division of Building and Planning. HE Findings, Conclusions and Decision ZE-37B-96 Page 3 11. The Division of Building and Planning shall consult with the Washington State Department of Wildlife in implementing the habitat management plan for the Mirabeau Point development. 12. The proposal falls under the j jurisdiction of the Washington State Shorelines Management Act, RCW 90.58, and the Spokane County Shoreline Master Program, WAC 173-19-400. The applicant is advised that one or more shoreline permits may he necessary for development within the shorelines." 23. On August 31, 2001, the County Hearing Examiner approved a change of conditions to the 1999 rezone decision; to allow the development of certain structures on the public land lying west of the site, between Mirabeau Parkway and Discovery Road; which land is currently owned by the City and developed with a community center. The change required such property to comply with the recommendations contained in a modified version of the habitat management plan for the Mirabeau Point development, prepared in March of 2001. See decision in File No. ZE-37A-96. 24. In 2002, the County adopted Urban Growth Area(UGA) boundaries, a new comprehensive plan, and the County Phase I Development Regulations. The County Phase I Development Regulations designated the site and neighboring land in the UGA, and retained the 1-2 zoning of the site. 25. On March 31, 2003, the City of Spokane Valley was incorporated in the area. On the same date, the City adopted by reference the County's comprehensive plan, zoning code, County Phase I Development Regulations, and other development regulations; with certain revisions. The City retained the zoning and comprehensive plan categories for the site and neighboring land established by the County. 26. At the time of incorporation in 2003, the City amended the text in Section 14.629.080 of the County Zoning Code (industrial zones matrix) to delete the allowance of all uses permitted in the Regional Business (B-3) zone of the County Zoning Code, as permitted uses in the I-2 zone subject to compliance with the development standards of the B-3 zone. In 2004, the City amended various development standards of the I-2 zone. 27. On May 10, 2006, the City implemented a new City Comprehensive Plan("Comprehensive Plan"), pursuant to City Ordinance No. 06-010. The City Phase I Development Regulations were revised to implement the Comprehensive Plan, pursuant to City Ordinance No. 06-011. 28. The Comprehensive Plan designates the site, and the land lying west of the southerly one- third (1/3) of the site, in the Mixed Use category; designates the land lying north of the site, and the land lying west of the northerly two-thirds (2/3) of the site, in the Parks and Open Space category; and designates the land lying south of the site and Indiana Avenue in the Regional Commercial category. 29. The site and neighboring land are zoned I-2; except for the land lying south of easterly two- thirds (2/3) of the site, which is zoned Regional Business (B-3). HE Findings, Conclusions and Decision ZE-37B-96 Page 4 30. The land lying between the site and the Spokane River contains a portion of the Spokane Centennial Trail, a regional trail system, and is owned by the Washington State Parks and Recreation Department. A credit union owns the land lying between the site and Mirabeau 1 Parkway to the west. 31. The land lying northwest of the site, west of Mirabeau Parkway, is owned by the City, contains a 10-acre City park, and a large natural area. An 88-acre, undeveloped conservation area owned by the Washington State Natural Resources abuts the City parkland on the west. 32. The land lying west of the northerly two-thirds (2/3) of the site, between Mirabeau Parkway and Discovery Place Road, north of Mansfield Avenue, is owned by the City and includes a community center and vacant land. The land lying further to the west, and the land lying west of the southerly one-third (1/3) of the site, consists of a YMCA, office uses and vacant land. 33. The Spokane Valley Mall, commercial and office uses, vacant land and a railroad line are located between Indiana Avenue and Interstate 90 south of the site. A transit stop is located southwest of the site, along the north side of Indiana Avenue. 34. The City Arterial Road Plan designates Mirabeau Parkway and Mansfield Avenue as Collector Arterials; Mansfield Avenue extended east beyond Mirabeau Parkway, and south to the intersection of Evergreen Road and Indiana Avenue, as a future Collector Arterial; Indiana Avenue as a Minor Arterial; and Evergreen Road and Sullivan Road as Principal Arterials. 35. The 1999 rezone decision noted various reasons for imposing the public hearing requirement in Planning Condition#4 of the decision. The decision found that each phase of the Mirabeau Point project should be subject to detailed site plan review through the public hearing process; due to the general nature of the conceptual site plan submitted for the Mirabeau Point project, the range and high intensity of uses possible under the 1-2 zone, the need to determine compliance with the County Shoreline Master Program and County Critical Areas Ordinance, and the need to determine compliance with all development standards and conditions of approval, 36. The 1999 rezone decision expressed concern regarding the intensity and types of business park uses planned along or near the river, east of Mirabeau Parkway, some of which were potentially located within the 250-foot wide riparian buffer and the 200-foot wide shoreline area associated with the river; and that some uses allowed in the I-2 zone would be too intensive to be located in this area. 37. The 1999 rezone decision also expressed concern over the development of uses in the I-2 zone, in the north portion of the rezone area(northwest of the site), that may be too intensive to be located adjacent to the DNR conservancy land and the proposed County park land, which land J y p p Yp was zoned Rural Residential-10 (RR-10) under the County Zoning Code at the time; and also expressed concern over the potential commercial development along Euclid Avenue (now part of Mirabeau Parkway) to the north. This concern did not relate to the current site. 38. At the time the 1999 rezone decision was approved, the site and other land making up the rezone property were designated in the Rural category of the County Comprehensive Plan, which category did not contemplate development of the light industrial and commercial uses allowed in HE Findings, Conclusions and Decision ZE-37B-96 Page 5 the I-2 zone at the time. This played a factor in the imposition of the public hearing requirement in Planning Condition#4 imposed by the 1999 rezone. 39. The Staff Report found that the provisions of the City Critical Areas and the City Shoreline Master Program provided adequate protection for the shoreline area and 250-foot riparian buffer area on and adjacent to the site, and that the public hearing requirement in Planning Condition#4 should be deleted. 40. The Comprehensive Plan indicates that the Mixed Use category is intended to allow for two or more different land uses within developments; which can be either vertically or horizontally mixed; and may include employment uses such as office, retail and/or lodging with higher density residential uses, and in some cases community or cultural facilities. Mixed use developments in the category are contemplated as being developed pursuant to a coherent, approved plan of development; and achieving compatibility through a design that integrates physical and functional features such as transportation systems, pedestrian ways, open areas and courtyards, and common focal points or amenities. 41. The policies under Goal LUG-2 and LUG-9 of the Comprehensive Plan are relevant to development in the Mixed Use category. Such policies contemplate the development of a variety of housing types in such category; including apartments, condominiums, town houses, duplex and single-family dwellings on small lots. The Comprehensive Plan also contemplates a mix of other land uses in such category; including a full range of retail goods and services, public/quasi-public uses and/or open space, professional office and other employment oriented uses, and commercial uses that require large land areas but have low employment density and are auto-dependent. 42. Policy LUP-2.2 of the Comprehensive Plan recommends use of design and performance standards to achieve integration in mixed use developments; including performance standards that focus on scale, appearance and compatibility; and variations in facades and rooflines to add character and interest to multifamily developments. 43. Under the City Phase I Development Regulations, the I-2 zone is one of the implementing zones for the Mixed Use category of the Comprehensive Plan. 44. The Examiner takes notice that the City is in the process of revising the City Interim Zoning Code to provide zones and development standards that implement the various categories of the Comprehensive Plan, including the Mixed Use category. 45. The City Interim Zoning Code indicates that the purpose of the I-2 zone is to meet the needs for industrial land identified in the Comprehensive Plan; the industrial uses included in such zone were processing, fabrication, light assembly, freight handling and similar operations of a non- offensive nature; the intent of the I-2 zone was to allow for such uses by making them compatible with surrounding uses; and areas zoned I-2 would be served by a high level of public services and urban infrastructure. See Zoning Code 14.632.100. HE Findings, Conclusions and Decision ZE-37B-96 Page 6 46. The I-2 zone contains development, storage, screening and landscaping standards that are intended to buffer industrial uses from neighboring land uses and ensure the aesthetic development of such uses. 47. Neighboring property owners did not comment on the cwTent application, and public agencies did not express any opposition to the application or request any new conditions. 48. The City Shoreline Master Program prohibits commercial development in the Pastoral Area. The riparian habitat performance standards set forth in the City Critical Areas Ordinance generally require riparian buffer areas to be retained in their natural condition. Such regulations would appear to significantly restrict commercial or light industrial development of the portion of the site located within 250 feet of the ordinary high water of the Spokane River. Based on the above findings of fact, the Hearing Examiner enters the following: III. CONCLUSIONS OF LAW 1. RCW 36.70B.030 provides that fundamental land use planning choices made in adopted comprehensive plans and development regulations shall serve as the foundation for project review; and that the review of a proposed development's consistency with applicable development regulations, or in the absence of pertinent development regulations, the policies of the adopted comprehensive plan, shall govern the type of land use, density of residential development in urban growth areas, the availability and adequacy of public facilities identified in the comprehensive plan if the plan or development regulations provide for funding of such facilities under the State Growth Management Act, and other features of the development. 2. Under Washington case law, a local zoning code supersedes any conflicting policies in a local a comprehensive plan. 3. Section 10.35.070(J) of the City Municipal Code requires the Hearing Examiner to hear and decide applications for a change of conditions to a prior rezone that requires a public hearing. Section 14.504.040 of the City Interim Zoning Code requires that proposed a l t er ations or additions to approved site development plans for rezones that are contrary to the findings and conditions adopted for the rezone must be approved by the City Hearing Examiner. 4. The current application is subject to hearing and decision by the Examiner, under such provisions. 5. The public hearing review requirement contained in the 3rd and 4th sentences of Planning Condition#4 is not needed to ensure that future development of the site will provide adequate protection of shoreline areas and riparian buffer areas on and adjacent to the site; since the other conditions of approval imposed by the 1999 rezone decision require the City Planning Division to administratively apply the provisions of the City Shoreline Master Program and City Critical Areas Ordinance to any proposed site development. 6. The 2nd sentence in Planning Condition#4 of the 1999 rezone should be deleted, because it applies to a different portion of the rezoned property than the current site. The 4th sentence of HE Findings, Conclusions and Decision ZE-37B-96 Page 7 the condition should be removed, since it is rendered superfluous by deletion of the 3`a sentence. The last (5"') sentence of the condition should be preserved, because substantial changes proposed to an approved site plan for a rezone are subject to the submittal of a change of conditions application, and review and approval of the application at a public hearing by the Hearing Examiner; as referenced above. 7. The proposed change of conditions conforms to the City Comprehensive Plan. 8. The proposed change of conditions bears a substantial relationship, and will not be detrimental, to the public health, safety or welfare. 9. A substantial change of circumstances has occurred in the area since the site was rezoned to the I-2 zone in 1999; including inclusion of the site in the County UGA and the City of Spokane Valley, adoption of the City Comprehensive Plan, adoption and amendment of the City Phase I Development Regulations, amendment of the I-2 zone through the adoption of the City Interim Zoning Code, the development of neighboring properties included in the 1999 rezone under the I- 2 zone in an aesthetic and non-offensive manner, and increased commercial and light industrial development south of the site. 10. The proposed change of conditions complies with the I-2 zone, the City Interim Zoning Code, the City Phase I Development Regulations, the City Critical Areas Ordinance, and other applicable development regulations. 11. The procedural requirements of the State Environmental Policy Act and the City Environmental Ordinance have been met. The application, as conditioned, will not have a significant, probable adverse impact on the environment. 12. Approval of the change of conditions application is appropriate under Section 14.504.040 of the City Interim Zoning Code, and Chapter 10.35 of the Spokane Valley Municipal Code; and meets the criteria established by Washington case law for approving a rezone IV. DECISION Based on the Findings of Fact and Conclusions of Law above, the above application for a change of conditions is hereby approved; and Planning Condition#4 of the rezone approved on August 17, 1999 in File No. ZE-37-96 is hereby amended for the current site to read as follows: "4. The proposal shall be developed substantially in accordance with the conceptual plan dated April 29, 1999 and submitted on April 29, 1999, except as modified to comply with conditions of approval and applicable development regulations. Any significant changes must be approved through the change of conditions process conducted pursuant to a public hearing. This amendment to Planning Condition#4 of the 1999 rezone applies only to the land currently referenced as County Assessor's tax parcel nos. 45104.9132, 45105.9133, 45113.9025 and 45114.9028. All other conditions imposed by the 1999 rezone decision in File No. ZE-37-96 HE Findings, Conclusions and Decision ZE-37B-96 Page 8 wu shall continue to apply to the Light Industrial (1-2) zoning of the site. The City official zoning map should be amended to reflect this zoning change for the site. DATED this 4°i day of October, 2007 CITY HEARING EXAMINER PRO TEM ii Ams Micha: C. Dempsey, WSBA#8235 DECISION AND NOTICE OF RIGHT TO APPEAL Pursuant to Chapter 10.35 of the Spokane Valley Municipal Code (SVMC), the decision of the Hearing Examiner on a change of conditions application is final and conclusive unless within twenty-one (21) calendar days from the issuance of the Examiner's decision, a party with standing files a land use petition in superior court pursuant to chapter 36.70C RCW. Pursuant to chapter 36.70C RCW, the date of issuance of the Hearing Examiner's decision is three (3) days after it is mailed. This Decision was mailed by Certified Mail to the Applicant and by first class mail to other parties of record on October 4, 2007. The date of issuance of the Hearing Examiner's decision is therefore October 8, 2007, counting to the next business day when the last day for mailing falls on a weekend or holiday. THE LAST DAY FOR APPEAL OF TIIIS DECISION TO SUPERIOR COURT BY LAND USE PETITION IS OCTOBER 29, 20071 counting to the next business day when the last day for mailing falls on a weekend or holiday. The complete record in this matter, including this decision, is on file during the appeal period with the Office of the Hearing Examiner, Third Floor, Public Works Building, 1026 West Broadway Avenue, Spokane, Washington, 99260-0245, (509) 477-7490. The file may be inspected during normal working hours, listed as Monday- Friday of each week, except holidays, between the hours of 8:30 a.m. and 5:00 p.m. After the appeal period, the file may be inspected at the City of Spokane Valley Department of Community Development, Division of Current Planning, 11707 E. Sprague Avenue, Spokane Valley, WA. Copies of the documents in the record will be made available at the cost set by City of Spokane Valley Ordinance. Pursuant to RCW 36.70B.130, affected property owners may request a change in valuation for property tax purposes notwithstanding any program of revaluation. HE Findings, Conclusions and Decision ZE-37B-96 Page 9