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HomeMy WebLinkAbout05/24/2022 - Regular - Additional Docs-Park Impact Fees FG:100359090.3 Direct Phone: 206.447.2905 Fax: 206.749.1915 pat.schneider@foster.com May 19, 2022 BY EMAIL to jrobertson@insleebest.com Jennifer S. Robertson Inslee Best Skyline Tower, Suite 1500 10900 NE 4th Street Bellevue, WA 98004 Re: Port Orchard’s proposed new Park impact fees Dear Jennifer: I write on behalf of McCormick Communities LLC to express serious concerns with the City’s proposed new Park impact fees, which the City is proposing to increase from $811 per single-family dwelling unit to $6,658 per unit. The City Council is holding a public hearing to consider this increase on May 24, 2022. For the reasons explained in this letter, the imposition of such fees on McCormick Woods, by its inclusion within a single service area with the rest of the City, does not comply with RCW 82.02.060(8), which requires the City to establish “one or more reasonable service areas.” The City’s proposed fee increase is based on the analysis in the City’s Parks, Recreation & Open Space (PROS) Plan, and specifically on the data and analysis in Appendices D and E. McCormick is concerned about the accuracy of this data, but this letter focuses on the City’s determination of its Existing Level of Service (ELOS) and Proposed Level of Service (PLOS), which are ratios of the supply of park lands per 1,000 residents. Taking “total park lands” as an example, the discussion on page 3 of Exhibit D states the National Recreation & Park Association (NRPA) has determined that the “benchmark” or median acreage provided by cities of 15,000 – 25,000 population is 12.6 acres per 1,000 persons, but that the existing ratio in Port Orchard is only 5.93 acres per 1,000 because the City owns only 89.7 acres of parkland, much of which is within McCormick Woods. For example, the City’s existing inventory of park land includes McCormick Village Park, which for some reason is listed as only a 40-acre park even though GEM I conveyed 63.5 acres for this Park and McCormick Communities conveyed another 13 acres. Jennifer S. Robertson May 19, 2022 Page 2 FG:100359090.3 McCormick Woods includes many other parks and open spaces, including Deer Park, which is 32 acres, and more than 150 acres of forested open space and wetlands with miles of maintained trails. And there is the McCormick Woods Golf Course, with 168 acres of open space. Even assuming the McCormick Village Park is only 40 acres, as stated in Appendix D, and including the golf course, this total of park and open space within McCormick Woods is 392 acres. The existing population within McCormick Woods is approximately 4,010 people in 1,412 single-family homes. This means that the ELOS within McCormick Woods for its residents is 97.754. As McCormick Woods develops and population is added, an additional 126.8 acres of parks and open space also will be developed. Using the City’s cost estimates in Appendix E to the PROS Plan, the cost of developing these acres will be $7,786,449 – not including the cost of the land itself. McCormick Communities will provide the land for these future parks and open spaces, and the funds for their development, just as McCormick Communities and its predecessor, GEM I, provided the existing 392 acres and the funds for their development. The population within McCormick Woods will increase as lots and homes are developed, but even at full build-out the LOS will be at least 46.34 acres per 1,000 residents, almost four times the NRPA benchmark of 12.6 acres per 1,000 residents – all provided by McCormick Communities. The City expects McCormick Communities to continue to provide land, financing, and construction for these parks and open space, but the City also proposes to increase the park impact fees within McCormick Woods from $811 per single-family dwelling unit to $6,658 per unit, to pay for parks and open space elsewhere in the City. The LOS within McCormick Woods is and will be much higher than in the rest of the City, and it is not “reasonable,” as required by RCW 82.02.060(8), to include McCormick Woods within a single service area that comprises the City as a whole. In addition, the proposed increase in park impact fees does not take into account the 2010 “Interlocal Agreement Between Kitsap County and the City of Port Orchard Relating to Parks, Open Space and Recreation Within the McCormick Urban Village And McCormick/ULID #6 Urban Growth Area.” In this Interlocal Agreement, the County transferred to the City 63.5 acres and $643,742 for McCormick Village Park, after GEM I conveyed this land and made payment to the County for the Park. This Interlocal Agreement includes the same vesting language as the earlier Development Agreement between the County and GEM I: Vesting. The City acknowledges that for all development within the McCormick Urban Village, the City shall not require the payment of additional fees related to open space, parks, and recreation impacts and projects that are duplicative of the park impact fees already paid. Jennifer S. Robertson May 19, 2022 Page 3 FG:100359090.3 The City has never given McCormick Communities appropriate credit against impact fees for the 63.5 acres and $643,742 provided for McCormick Village Park (or for the subsequent 13 acres that McCormick Communities conveyed). The City has drafted a proposed new Development Agreement that would require McCormick Communities to make substantial additional improvements to McCormick Woods Park, in exchange for a credit against future impact fees of $6,658 per single-family dwelling unit, to help defray the cost to McCormick Communities of further developing the Park. For the reasons summarized above, McCormick Communities does not believe that a park impact fee of $6,658 per residence within McCormick Woods can be justified either legally or equitably. McCormick proposes the following alternative: • the park impact fee remain $811 per single-family residence within McCormick Woods, which will become its own “reasonable service area” per 82.02.060(8); and • the City and McCormick Communities enter into a development agreement in which McCormick Communities agrees to develop the facilities within McCormick Woods that are identified in the PROS Plan (at an estimated cost of $7,786,449) without seeking credit against impact fees. Making McCormick Woods its own service area for park impact fees is not only consistent with RCW 82.02.060(8), it also is consistent with the history and current reality of this community, for example: • the area has been developed from the beginning as an “urban open-space- recreation community,” to use the words in the Open Space, Parks and Recreation Plan that is an exhibit to the 2010 Interlocal Agreement between the City and County; as a consequence the area is far more rural than the rest of the City; • the area is geographically isolated, connected to the rest of the City only by the Sedgwick/Glenwood corridor, and governed by its own concurrency standards; • the area is governed by its own development standards and its development occurs pursuant to a series of development agreements that are unique to this community. The Council is scheduled to hold a public hearing on the proposed park fees on May 24, and I ask that that we and our clients meet as soon as possible to discuss McCormick’s concerns and to attempt to reach agreement about fees and future development of parks and open space within McCormick Woods. Thanks in advance for your consideration of these concerns and this proposal. Jennifer S. Robertson May 19, 2022 Page 4 FG:100359090.3 Sincerely, FOSTER GARVEY PC By Patrick J. Schneider Principal Enclosures cc: Eric Campbell Greg Krabbe ADAR E S T . S W ADAR E S T . S W 45' 45' 60' SW OLD CLIFTON RD FEIG L E Y R D S W SW OLD CLIFTON RD FEIG L E Y R D S W 35 A 35 A PR O J E C T B O U N D A R Y AP P R O X I M A T E L O C A T I O N TR A I L / D I R T R O A D ( T Y P . ) MC C O R M I C K W O O D S D R S W GLENEAGLE AVE SW MCC O R M I C K W O O D S D R . S W SW DUNRA V E N L N . MCCO R M I C K W O O D S D R . S W RU T H E R F O R D C O R . S W ST. A N D R E W S D R . S W ST. ANDRE W S D R . S W MCCOR M I C K W O O D S D R . S W MAYM A R C D R . S W McCORMICK OVERVIEW WOODS-WEST-NORTHMCCORMICK COMMUNITIES, LLC May 12, 2022 0 1" = 30 0 ' 15 0 3 0 0 J:\ 202 1 \ 2 1 3 9 6 \ P l a n n i n g \ E x h i b i t s \ S i t e P l a n s \ C o m p o s i t e M c C o r m i c k W o o d s - W e s t - N o r t h S i t e P l a n 2 . d w g , 5 / 1 2 / 2 0 2 2 4 : 5 4 : 2 7 P M , D W G T o P D F . p c3 Existing McCormick Park McCormick Woods Open space tracts and trails McCormick Park trail head improvements Deer Park Future St Andrews Park Mary McCormick Park West future park 2 Future McCormick West open space and trail system McCormick Woods open and recreation spaces Multi modal trail Future multi modal trail Existing multi modal trail West Future park 2 West Future park 1 Park or open space amenity Description Elements Estimated cost / value Notes Existing McCormick Village park 40 acre park north along the east side of  McCormick North.  Playground and equipment The 40‐acre site was deeded over to the city in two sections and  a cash contribution of approximately $600,000 was given to the  city along with the initial parcel of land. As of this writing  McCormic has not receive any credit against park fees for these  contributions to the city.   Dog park (2) Water park  Parking lot Restrooms Mary McCormick Park 2 acre site  located at McCormick Woods  drive and Marymac drive. Tennis court Pickleball courts (2) Full Basketball court Restrooms Parking lot Deer park 32 acre park site partially developed at the  south end of McCormick Woods drive.  Baseball diamond 1/2 Basketball court Playground and equipment Forested walking trails McCormick open space tracts 150+ acres of forested open space and  wetlands with established pedestrian trails  3.5 miles of maintained hiking trails  Multi modal trail 9' wide paved trail along McCormick  Woods drive.  3 miles of paved multi modal trails McCormick Woods Golf Course 168 acres of open space Proposed parks Appendix G.1 McCormick Village Park trailheads Two new trailheads along east boundary of  park 1,000' of new trail Trailhead landing structures Lighting Landscaping St Andrews Multimodal trail Approximately 1 mile of  new trail along St  Andrews Drive.  5000 lf of paved 10' trail. 979,012$                                        St Andrews park Approximately 2 acre park at east entrance  to McCormick Woods Pickle ball courts (4) w/o lights Outd 610,670$                                        Playground and equipment 10‐ch 471,902$                                        Restrooms 443,463$                                        Parking lot 135,000$                                        Picknick tables and areas 3 tabl 81,930$                                          1,500 lf Jogging trail w/ fitness 107,907$                                        Grassy Playfield 1 acr 1,044,488$                                     McCormick West open space tracts Approximately 125 acres of open space and  wetland areas within the plat.  Day hike trail class 5 2 mil 197,966$                                        McCormick West park 1 Approximately 2 acres of open space  located at the NW corner of McCormick  West. Playground and equipment 5‐chil 235,951$                                        basketball court (1/2) 125,000$                                        McCormick West park 2 Approximately 2 acres of open space at the  south east entrance to McCormick West.  Playground and equipment 471,902$                                        Pickle ball court (2) 305,353$                                        Picknick tables and areas 81,930$                                          Landscaping/soft trail 175,000$                                        McCormick West park 3 Approximately 1.25 acres of opens pace at  sout end of McCormick West.  Playground and equipment 5‐chil 235,951$                                        Landscaping 125,000$                                        McCormick West multimodal trail Approximately 2 miles of 8' paved trail  around the interior of McCormck West.  2 miles 8' paved muti modal trail. 1,958,024$                                     subto 7,786,449$                                     remaining  lots West & Woods 2026 credit 3,843.26$                                       McCormick Population 4,010 McCormick Population at Buildou 11,559 Improvements LOS Standard current at McCormick current LOS Additional  Improvements at  McCormick Projected LOS excess/ deficit of LOS Land Requirements 12.6 acres per 1,000 persons 392 97.754 126.8 44.884 32.284 Linear Trails Number of Parks .77 pars per 1,000 persons 4 0.997 5 0.779 0.009 Picnic tables & shelters Multipurpose bike and walking trails .29 per 1,000 3 0.748 3 0.519 0.229 Park and Hiking trails .15 per 1,000 3.5 0.873 2 0.476 0.326 Outdoor basketball/outdoor courts .14 per 1,000 1.5 0.374 0.5 0.173 0.033 tennis/picketball courts .23 per 1,000 3 0.748 6 0.779 0.549 Soccer fields .47 per 1,000 1 0.249 0.5 0.130 (0.340) Single Family 2.8 Multifamily Community Occupied Homes Existing Population Projected Homes  & Units Projected  Population Total at  Build Out Woods Single  Family 1,412 4,010 451 1,281 5,291 West Single Family 1,575 4,473 4,473 Multifamily 100 200 200 North Single  Family 411 1,167 1,167 Multifamily 285 428 428 McCormick Neighborhoods outside of Woods Subtotals 1,412 4,010 2,822 7,549 11,559