Title
Approval of an Ordinance Revising the Process for Considering Development Agreements
Recommended Action
Committee Recommendation:
The Land Use and Environment Committee recommends adopting an Ordinance revising the process for considering development agreements.
City Manager Recommendation:
Move to approve second reading the Ordinance revising the process for considering development agreements.
Report
Issue:
Whether to approve on second reading the Ordinance revising the process for considering development agreements.
Staff Contact:
Leonard Bauer, Director, Community Planning and Development. 360.753.8206
Presenter(s):
None - Consent Calendar item.
Background and Analysis:
Background and Analysis did not change from first to second reading.
In early 2021, the City Council referred to the Land Use and Environment Committee consideration of updates to the City’s approach to potential future development agreements. The Committee discussed this referral at its May 27, 2021, meeting and directed staff to draft an ordinance allowing for development agreements to be considered after submittal of a development permit application. In addition, the Committee directed staff to include the following considerations in discussions of the content of future development agreements:
• Tenant relocation assistance
• Climate action goals
• Housing Action Plan
Legal Requirements for Development Agreements
Chapter 36.70B.170 of the Revised Code of Washington (RCW) authorizes cities to enter into a written development agreement with a property owner. Washington Administrative Code (WAC) 365-196-845 provides additional guidance for cities. The City of Olympia’s procedures for development agreements are contained in Chapter 18.53 of the Olympia Municipal Code (OMC).
The attached Municipal Research and Services Center (MRSC) website link leads to a useful overview with examples of development agreements.
Olympia’s Process for Development Agreements
Under the existing OMC 18.53, consideration of a development agreement may be initiated by City Council or Council committee, or requested by the Planning Commission, City Staff, or the property owner. Development agreements are not required by the City.
Any person intending to propose a development agreement must first meet with City staff for purposes of discussing parameters of the proposal and understanding the applicable procedures. Because they are negotiated agreements between the City and a property owner, development agreements are typically the subject of multiple discussions before being filed as an application with the City.
A development agreement is one of the few tools in the Olympia Municipal Code that allow projects to be phased over several years. Development agreements may address a wide variety of topics, including but not limited to installation of public improvements, land acquisitions or dedications, payments for public benefits or mitigation, housing affordability, and public access or open space. As mentioned above, the Land Use and Environment Committee has directed staff to specifically address tenant relocation assistance, climate action goals, and Housing Action Plan implementation in future development agreements. This direction is being carried out through a Community Planning & Development Department administrative policy.
Following is a brief summary of additional procedures and requirements for proposed development agreements in the current Olympia Municipal Code:
• The City Council is the authority to make a final decision on a development agreement.
• The City Council must hold a public hearing on the development agreement. Notice for the public hearing is provided consistent with the City’s public notice requirements (OMC 18.78.040).
• A development agreement must be heard by the City Council prior to consideration of any application for development.
• A development agreement must be consistent with existing City regulations as they would apply to the development. It may address methods for achieving the development standards and other applicable requirements, vesting of the development-to-development standards, the time frame of the agreement, and any mitigation measures to address potential impacts of the agreement.
• A development agreement must reserve authority to impose new or different regulations to the extent required by a serious threat to public health and safety.
• Development agreements are recorded with Thurston County and remain in force and applicable to the property according to the terms of the agreement, even if the property is sold or transferred to another party.
Proposed Code Amendments
In addition to numerous minor amendments to bring this section of code up to current ordinance standards, the following are the primary substantive amendments in the attached ordinance:
• Development agreements may be considered either before or after the City receives a development permit application for the property.
• A public hearing must be held on the development agreement, either by the City Council or the Hearing Examiner. The final decision on the development agreement remains with the City Council.
• If the City has received a development permit application that is required to be reviewed by the Hearing Examiner, the public hearing is held by the Hearing Examiner. This ensures consistency with RCW 36.70B.060, which requires no more than one public hearing on a development project. The Hearing Examiner would make a recommendation to City Council regarding the development agreement.
• If the City has not received a development permit application, or an application does not require Hearing Examiner review, the development agreement public hearing would be held by the City Council.
Neighborhood/Community Interests (if known):
Development agreements are of interest community-wide, particularly the neighborhood in which the subject property is located.
Options:
1. Move to approve on second reading the Ordinance revising the process for considering development agreements.
2. Make specific changes and move to approve on second reading the Ordinance revising the process for considering development agreements.
3. Do not Move to approve the Ordinance revising the process for considering development agreements.
Financial Impact:
The proposed amendments would not add procedural steps to the review of development agreements or development project applications would not have a significant impact on City financial resources or future development projects. Impacts of specific future development agreements would need to be analyzed at that time.
Attachments:
Ordinance
Administrative Policy
MRSC Web Page Link