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10/04/2023 - PacketCity of Port Orchard Land Use Committee October 4, 2023 4:30 pm City of Port Orchard City Council Chambers 216 Prospect Street Port Orchard, WA 98366 Hybrid Meeting Zoom Webinar Public Link (not to be used by LU Committee): https://us02web.zoom.us/j/81034433449 Dial -in: 1 253 215 8782 Webinar ID: 810 3443 3449 AGENDA 1. Discussion: Annual Suggested Code Amendments 2. Discussion: Prospect parking lot (Chang) 3. Discussion: Undeveloped City property (Rosapepe) CITY OF PORT ORCHARD rA=: Department of Community Development s Nui;, 216 Prospect Street Port Orchard, WA 98366 Phone (36o) 874-5533 - Fax (36o) 876-4980 Memorandum To: City of Port Orchard Land Use Committee From: Nicholas Bond, AICP Date: October 2, 2023 Re: 2023 Suggested Code Amendments At Issue: The docketing procedure for suggested code amendments consistent with Port Orchard Municipal Code (POMC) 20.06 involves a structured method for organizing and prioritizing proposed amendments. Individuals, departments, or committees may submit their proposed code amendments for consideration. These proposals can come from City Council members, the Planning Commission, the Director of Community Development, or other relevant stakeholders. The Department of Community Development collects suggested code amendments from all stakeholders submitted to the Department prior to September 3011 of each calendar year. The proposed amendments are then reviewed by the Department of Community Development, which assesses their feasibility, alignment with city goals, in compliance with POMC 20.06. This review ensures that the proposed changes meet legal requirements and are consistent with the adopted Comprehensive Plan. Subsequently, a docket is prepared, listing the proposed amendments in order of priority and providing a brief description of each. This docket is then presented to the Land Use Committee and may also be shared with the public for transparency and awareness. The docket of proposed amendments is formally reviewed by the Land Use Committee. The committee evaluates the priority, feasibility, and potential impact of each proposed amendment, and may recommend adjustments to the docket. The docket of proposed amendments is made available for public review and comment. Public input may be solicited through public meetings, hearings, or other engagement mechanisms to ensure community involvement in the prioritization process. After considering public input and Land Use Committee recommendations, the docket is finalized, incorporating any necessary changes and presented to the City Council for action. The City Council may review and approve the final docket of proposed amendments, offer alternatives, and/or choose not to approve a docket of annual amendments. The City Council action signifies the acceptance of the prioritization and scheduling of the proposed code amendments. Page 1 of 2 10729441.1 - 366922 - 0021 If approved, or approved with modifications, an approved docket is integrated into the city's work plan, outlining the timeline and scheduling for addressing each proposed amendment in alignment with its priority. This docketing procedure ensures a structured approach to considering and prioritizing suggested code amendments in adherence to POMC 20.06, promoting transparency, community engagement, and effective implementation of the proposed changes. The attached table introduces a list of suggested code amendments received from the public and City of Port Orchard staff prior to September 30, 2023, aimed at enhancing the community of Port Orchard. It emphasizes the goal of aligning municipal regulations with evolving needs, fostering responsible development, and creating an aesthetically appealing urban environment. The Department of Community Development recommends the approval of the suggested code amendment docket. These amendments are vital for advancing our urban form objectives and aligning with our long-term city development goals. It is proposed that the approved suggested code amendments be integrated into the City of Port Orchard Comprehensive Plan periodic update. The periodic update is a comprehensive effort that has been in progress since the summer of 2022 and is anticipated to conclude by December 31, 2024. The Comprehensive Plan periodic update is expected to yield several more essential code updates. Some of these updates are mandated by the State of Washington as a result of recent legislative sessions. This integration ensures that the work related to the suggested code amendments aligns with the broader objectives outlined in the Comprehensive Plan, the work associated with the periodic update, and the mandates from the Legislature. Recommendation: Staff recommends that the City Council approve the 2023 Code Amendment docket pursuant to POMC 20.06.040 and incorporate it into the 2024 Comprehensive Plan Periodic Update, as presented. Attachments: 2023 Suggested Code Amendments 10729441.1 - 366922 - 0021 TITLE 20 POMC - SUGGESTED 2023 ANNUAL CODE AMENDMENT REVISIONS Section Title Comment Individual/Organization Date Class 20.127.020 Applicability and compliance Create exemption for boathouses from the design standards City of Port Orchard 1/18/2023 Design Create exemption for public buildings (such as pump houses and lift stations if they are 20.127.020 Applicability and compliance not visible from the ROW) from design standards. City of Port Orchard 1/18/2023 Design On -site open space contains zoning designation of "Employment-industrial/office zone" language that is a hold -over from a previous version of the code. This language 20.127.350(3) Usable Commercial Open Space. should be replaced with current implementation designation of industrial properties. City of Port Orchard 1/26/2023 Code consistency The term "home business" or "home businesses" shall include home (cottage) 20.60.020 Definition — Home business. industry, home occupation and home profession as defined in Chapter 20.12 POMC. - City of Port Orchard 2/16/2023 Code consistency Multifamily is permitted in NMU. These sections indicate apartment as an 3/29/2023 Code consistency 20.32.100 & 20.32.015 Apartment - NMU unpermitted building type. POMC 20.32.010(9) indicates apartments are permitted in NMU City of Port Orchard Under RCW 35A.21.430 (2021), Washington cities may not prohibit permanent supportive housing or transitional housing in areas where multifamily housing or hotels are permitted (other parts of state law define "multifamily" as four or more units). This supersedes a similar 2019 law, RCW 35A.21.305. Similarly, emergency shelter and emergency housing may not be prohibited in any zones in which hotels are allowed.emergency shelter and emergency housing must also be allowed in the GMU 20.39.040 Supportive housing zone, where hotels are allowed City of Port Orchard 3/29/2023 Land Use This building type is described as allowing 3-4 units, but its name is misleading and 20.32.015 & 20.32.080 Fourplex may cause code users to conclude triplex buildings are not allowed. City of Port Orchard 3/29/2023 Land Use 20.98.060 Inspection and acceptance of improvements. Section is unclear regarding the issuance of building permits when subdivider has 3/30/2023 Clarification posted a performance bond. Consider clarifying the issuance of 50% of building permits subject to a performance bond within a development. City of Port Orchard 20.124.140 Minimum parking standards. Change unit of measure to "per bed" and require .25 stalls/bed John Williams 5/3/2023 Development Standard 20.124.140 Minimum parking standards. Include unit of measure as "per bedroom" and require 1 stall/bedroom John Williams 5/3/2023 Development Standard 20.124.140 Minimum parking standards Revise to be consistent with detached house as required by RCW 70.128.140 City of Port Orchard 7/24/2023 Development standards Revise timing of proposed code amendments consideration to be consistent with 20.06.040 ITiming and process for consideration. I POMC 20.04.060 City of Port Orchard I 9/19/2023 Code consistency Port Orchard Housing Action Plan — June 2023 Page 21 2.1.6 — Tiny Homes Consider defining and permitting tiny homes in as another relatively affordable housing option but doing so in a limited number of lower intensity zones, such as R1 and R2 zones. Because tiny homes are uncommon or unknown in Port Orchard, the City could potentially create a pilot program that allows limited construction on one or two sites in partnerships with the property owners (such as at a religious facility). There are currently several building code limitations that the City would have to address to make tiny homes viable to build. Other regulatory considerations and potential categories of tiny homes are shown in the following table. Permanent When a permanent tiny home is placed on a lot with ADU a principal structure, treat the tiny home as any other type of detached ADU. Such homes must be on permanent foundations with all required utility connections. Permanent When more than one permanent tiny home is placed cluster on a lot, apply permanent tiny home cluster standards. Such homes must be on permanent foundations with all required utility connections. Consider density provisions, such as limiting tiny homes to 250-400 square feet of floor area and counting each home as one -fifth of a dwelling unity for density purposes. Consider providing basic design standards similar to cottage housing. Explore reasonable parking requirements that balance affordability with neighborhood integration; consider one space per two or three tiny homes as a starting point. Do not allow tiny homes to be used for short- term rentals. Consider whether tiny homes should be able to use a unit lot subdivision to create homeownership opportunities. See some example standards from Langley.'$ Consider limiting permanent clusters to lower intensity residential zones such as R1 and R2. 18 Langley Municipal Code 18.22.290. https://www.codepublishing.com/WA/Langley/#!/Langleyl 8/Langley1822.html#18.22.290 Port Orchard Housing Action Plan — June 2023 Page 22 Figure 11. Tiny home options 19 Seattle Municipal Code 23.42.054 and 23.42.056. https://library.municode.com/wa/seattle/codes/municipal code?nodeld=TIT23LAUSCO SUBTITLE IIILAUSRE C H23.42GEUSPR Port Orchard Housing Action Plan — June 2023 Page 56 4.3 - Public Land for Affordable Housing Actions: Consider rezonings, environmental assessments, pre -development activities, and partnerships to promote use of surplus public land for affordable housing. The City has a modest amount of surplus publicly -owned land. Some of it is well -located or positioned to merit consideration for housing development. Considerations for key properties and strategies are described in this section. Other public lands (such as those owned by Kitsap County, the Port of Bremerton, and other agencies) could be reviewed in the future. 4.3.1 — Disnosition Police Formally adopt a surplus land disposition policy that gives the right -of -first -refusal to affordable housing developers or other community -determined uses, consistent with the allowances of RCW 39.33.015 (note that some modifications to the affordability provisions of the statue were made in 2023 under House Bill 1695). The policy could be adopted by City Council resolution and embedded within the Comprehensive Plan's Housing Element (also see Strategy 4.2). 4.3.2 — Land Acquisition The cost of land can be a major cost for any housing development, and providing a discounted land lease or sale can help some projects become economically viable. Since the City does not have much surplus land, the City can identify and purchase underutilized or vacant properties that can be developed as affordable housing. Land assembly can be a powerful tool for putting together larger sites that can be redeveloped at a more economically feasible scale. This strategy could be focused on close -in locations (e.g. Downtown and the Bethel Avenue and Mile Hill Drive corridors) where land ownership is fragmented. Port Orchard may also focus on vacant, abandoned, or tax -delinquent properties. These sites usually have negative impacts on surrounding properties and the City's role would include resolving ownership issues and/or addressing tax liens or land encumbrances that otherwise deter developers from pursuing these properties.59 Once acquired and assembled, Port Orchard would lease or sell the land for affordable housing. See the related need for a land disposition policy in Strategy 4.4.1 4.3.3 - Tremont/Pottery Roundabout Property (Parcel 342401-4-016-2001 & 342401-4-015-2002) This is a one -acre vacant site within the Tremont Center and zoned Commercial Mixed Use. The site could be viable for townhomes or multifamily development with a small commercial component, potentially leveraging new single stair provisions (see Strategy 2.4.7). It is eligible for the Type 1 and Type 3 MFTE programs, which could improve the feasibility of affordable housing on the site. While Tremont Street is newly rebuilt with pedestrian and bike infrastructure, the general area is not walkable to services besides gas stations, medical offices, and schools. This and parking 59 "Support the Reuse of Abandoned, Vacant, & Delinquent Properties." Family Housing Fund. https://www.fhfund.org/report/reuse-of-abandoned-properties/ Port Orchard Housing Action Plan — June 2023 Page 57 requirements will require a significant portion of the site be dedicated to surface parking, limiting the housing capacity of the site. Some amount of structured parking might be economically feasible with the savings from a discounted land transfer, though the site's irregular shape could make efficient parking layouts a challenge. Parking could potentially be shared with the healthcare facility directly behind the site to the north. Development could fully or partially vacate Alder Lane, which is City right-of-way and does not serve any other properties (any utilities may need to be relocated). The site could also potentially expand by acquiring part of the adjacent healthcare facility site if there is underutilized parking there; that site is zoned as Public Facilities which does not allow any residential land uses. 1�c Figure 20. City owned property at the Tremont and Pottery Roundabout 4.3.4 — Mitchell Avenue Property (Parcel 252401-3-045-2009) This is a 1.7 acre forested site within the Lower Mile Hill Center and it is zoned R4, which allows up to four-story buildings. The site boundary has a small cutout of R3 zoning where there is a cell phone tower. The site could be viable for townhomes or multifamily development. The site is across the street from South Kitsap High School and could be an ideal location for family housing (units with two or more bedrooms). It is eligible for the Type 1 MFTE program, which could improve the feasibility of affordable housing on the site. The site is moderately sloped, with a 70 feet elevation difference between the top and bottom of the property (a horizontal distance of 240 feet). Significant tree standards and topography may add construction costs and reduce housing capacity, but the economic feasibility may also be Port Orchard Housing Action Plan — June 2023 Page 58 improved with the savings from a discounted land transfer. A recent study by Portland State University suggested an increase of 40-50% in development costs for affordable housing built on sites of 20% slope or more.60 The site could potentially be configured with two separate clusters of buildings at the top and bottom of the hill. The site is bordered to the west and north by strips of undeveloped City right-of-way, which could be vacated to expand the site and/or provide access solutions. The site could also potentially expand by acquiring one or more of the adjacent parcels, particularly off Bethel Avenue, to increase circulation options and improve economies of scale. The adjacent commercial properties are either vacant or have low -value improvements, they are zoned Gateway Mixed Use, and they are within the Downtown Height Overlay District 5 which allows up to five -story buildings. 0. Figure 21. City owned property off of Mitchell Avenue 6o"Impact of Slope on Housing Development Costs." Portland State University. 2010. https://www. pdx.edu/realestate/sites/g/files/znldhr3251 /files/2020- 10/01 impact of slope on development SU20 p2.pdf Note: This study also has other useful data on the impact of slope on development costs for various building types