041-23_McCormick_Dev_Agrmt_OrdinanceDocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
ORDINANCE NO. 041-23
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
AUTHORIZING THE MAYOR TO AMEND AN EXISTING DEVELOMENT
AGREEMENT WITH MCCORMICK COMMUNITIES, LLC; PROVIDING FOR
CORRECTIONS; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, pursuant to RCW 36.7013.170, the City Council has the authority to review and
enter into development agreements that govern the development and use of real property within
the City; and
WHEREAS, the City Council has adopted standards and procedures governing the City's
use of development agreements, codified at Chapter 20.26 of the Port Orchard Municipal Code
(POMC); and
WHEREAS, in January 2021, the City and McCormick Communities, LLC entered into a
Development Agreement to address the design, construction, and funding of certain
transportation improvements within and near the McCormick Woods development in the vicinity
of Old Clifton Road and Campus Parkway, as provided in "Exhibit A" of this Ordinance; and
WHEREAS, McCormick Communities is requesting to update this previously approved
development agreement to correct a discrepancy between the number of peak pm trips and the
number of housing units covered by the proposed development agreement; and
WHEREAS, on December 9, 2020, the City's SEPA official issued a determination of non -
significance for the proposed development agreement and consolidated permits under the
Optional DNS process, and there have been no appeals; and
WHEREAS, on December 19, 2023, the City Council held a public hearing on the proposed
amendment to the development agreement, and comments were received; and
WHEREAS, the City Council, after careful consideration of the development agreement
and all public comments and testimony, finds that the revised development agreement is
consistent with the City's Comprehensive Plan and development regulations, the Growth
Management Act, Chapter 36.70A RCW, and that the amendments herein are in the best
interests of the residents of the City; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. The City Council adopts all of the "Whereas" sections of this ordinance and
all "Whereas" sections of the Development Agreement as findings in support of this ordinance.
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
Ordinance No. 041-23
Page 2 of 3
SECTION 2. The City Council approves of and authorizes the Mayor to execute a
development agreement with McCormick Communities, LLC and McCormick Land Company, as
provided in "Exhibit A" of this Ordinance.
SECTION 3. Severability. If any section, sentence, clause or phrase of this Ordinance
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity of constitutionality of any other
section, sentence, clause or phrase of this Ordinance.
SECTION 4. Corrections. Upon the approval of the city attorney, the city clerk and/or
code publisher is authorized to make any necessary technical corrections to this Ordinance,
including but not limited to the correction of scrivener's/clerical errors, references, Ordinance
numbering, section/subsection numbers, and any reference thereto.
SECTION S. Effective Date. This Ordinance shall be published in the official newspaper
of the city and shall take full force and effect five (5) days after posting and publication as required
by law. A summary of this Ordinance may be published in lieu of publishing the entire Ordinance,
as authorized by state law.
SECTION 6. Appeals. Since the Development Agreement is related to a project permit
application, the provisions of chapter 36.70C RCW shall apply to the appeal of the decision of the
development agreement.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested
by the City Clerk in authentication of such passage this 19th day of December 2023.
n- by:
@...
Brandy Wallace, MMC, City Clerk
,Pe#4TO FORM:
Charlotte A. Archer, City Attorney
PUBLISHED: December 22, 2023
EFFECTIVE DATE: December 27, 2023
DocuSigned by:
RRAMP9FRFSRd7n
Robert Putaansuu, Mayor
SP BbC85igned by:
,�bU,ln, �Sbin,
John Clauson, Councilmember
Q'oRT of C �,,,,�
`a. Go
gEAL
9 A4B.•
rrrnuinut ��
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
Ordinance No. 041-23
Page 3 of 3
EXHIBIT A: MCCORMICK COMMUNITIES, LLC, DEVELOPMENT AGREEMENT
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF PORT ORCHARD AND MCCORMICK
COMMUNITIES, LLC FOR THE DEVELOPMENT AND FUNDING OF
CERTAIN TRANSPORTATION IMPROVEMENTS
Contract No. 035-21
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT FOR THE
DEVELOPMENT AND FUNDING OF CERTAIN TRANSPORTATION
IMPROVEMENTS ("Amendment Agreement") is entered into between the City of Port
Orchard, a Washington municipal corporation ("City" or "Port Orchard") and McCormick
Communities, LLC, a Washington limited liability company ("McCormick"). City and
McCormick are each a "Party" and together the "Parties" to this Amendment Agreement.
RECITALS:
WHEREAS, on February 1, 2021 the Parties entered into a Development Agreement for
the purposes of establishing transportation improvements and concurrency for the McCormick
Woods development project; and
WHEREAS, Section 9 of the Development Agreement establishes the number of lots and
peak pm trips that can be constructed/generated in McCormick Woods and the Parties desire to
modify these numbers such that the maximum number of lots is aligned with the maximum number
of peak pm trips already approved in the Development Agreement; and
WHEREAS, McCormick is the owner of all parcels that will be impacted by the
concurrency change; and
WHEREAS, this First Amendment does not change any impact fee credits, concurrency,
development standards, or entitlements for any parcels that may be covered by the Development
Agreement and that have since been sold by McCormick to other parties, therefore, none of the
other owners are parties hereto as their rights are not affected; and
WHEREAS, the properties impacted by this Amendment are shown on Exhibit D which
is attached to this Amendment; and
WHEREAS, McCormick Land Company's rights under the Development Agreement are
not impacted by this First Amendment, therefore, they are not a party hereto; and
WHEREAS, in consideration of the promises and undertakings described above together
with those in the Development Agreement, the City and McCormick agree as follows:
FIRST AMENDMENT TO McCORMICK TRANSPORTATION DA
Page 1
/9-28-2023
10728979.7 - 367463 - 0005
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
AGREEMENT:
1. Development Agreement affirmed. The Development Agreement is affirmed
except as modified by this Amendment Agreement.
2. Exhibits. Section 4 "Exhibits" of the Development Agreement is hereby amended
to read as follows:
Section 4. Exhibits. Exhibits to this Agreement are as follows:
a) Exhibit A-1— Parcel numbers of the McCormick Property that are subject
to impact fee credit.
b) Exhibit A-2 — Map depicting the boundaries of the McCormick Property
that are subject to the impact fee credit in this Agreement.
c) Exhibit B-1 — Parcel numbers of the McCormick Property with vested
concurrency.
d) Exhibit B-2 — Map depicting the boundaries of the McCormick Property
with vested concurrency.
e) Exhibit C — Map showing the original boundaries for the 2005
Transportation DA which remains the reimbursement area for MLC.
f) Exhibit D — Map showing properties impacted by this Amendment.
3. Concurrency. Section 9 "Concurrency" of the Development Agreement is hereby
amended to read as follows:
Section 9. Concurrency. The Parties agree that City streets affected by
development of the McCormick Property have the capacity to serve the McCormick
Property in compliance with the City's concurrency requirements so long as such
development does not result in the generation of more than 3,806 PM peak hour
trips, which is the number of remaining trips identified in Section 9 of the 2005
Transportation DA reserved for the McCormick Property identified on Exhibits 13-
1 and B-2. This remaining concurrency provided in the 2005 Transportation DA is
being carried forward for the duration of this Agreement as set forth below. These
trips are available as of December 15, 2020.
Available
Map
Lots/Units for
Area
PM Peak
Residential
Designation on
Trips
Ex. C
FIRST AMENDMENT TO McCORMICK TRANSPORTATION DA
Page 2
/9-28-2023
10728979.7 - 367463 - 0005
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
McCormick North
North
• Village local
center (residential
659
(See Note 1)
North
+ commercial
• Single Family
312
315
North
Residential
Total McCormick
971
North
McCormick West
West
• Multifamily
415
419
West
• Single Family
1,530
1,545
West
Residential
Total McCormick
11945
West
McCormick Woods
697
697 640
Wd
McCormick Woods
63
N/A
Wd
Retail
McCormick Woods
Conference (Golf
122
N/A
GC
Facilities
McCormick Woods
8
g
Not depicted
legacy lots
Total McCormick
890
Woods
Grand Total
3,806
1 There are 659 PM Peak Trips available within the Village local center. Residential
PM Peak Trips will be calculated per unit and commercial PM Peak trips will be
calculated by use type and square footage.
The defined areas for the assigned concurrency numbers above are listed by parcel
number on Exhibit B-1 and shown (except for the eight legacy lots, which are
vacant lots in prior subdivisions) on Exhibit B-2, which Exhibits are attached hereto
and incorporated herein by this reference as if set forth in full. Residential
development shall be limited by either the PM peak hour trips or the number of
units, whichever is more restrictive. Commercial development shall be limited only
by the PM peak hour trips. To the extent that McCormick in the future proposes
residential or commercial development within the McCormick Property that will
generate more than the number of PM peak hour trips shown in the above table, the
City will make a new concurrency determination regarding the capacity of its street
system at that time.
FIRST AMENDMENT TO McCORMICK TRANSPORTATION DA
Page 3
/9-28-2023
10728979.7 - 367463 - 0005
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
4. Project Schedule. Section 10 "Project Schedule" of the Development Agreement
is hereby amended to read as follows:
Section 10. Project Schedule. The Developer will commence construction of the
two McCormick Projects on the following schedule:
a) Work on the roundabout at the intersection of Old Clifton Road and Campus
Parkway (Project ID #1.5C on the City's TIP) (Permits #PW20-031 and
PW20-032) shall commence no later than June 30, 2021, and Developer will
complete construction in a timely and workmanlike manner. Such work
shall be completed no later than September 30, 2022.
b) Developer will submit a complete set of plans and permit applications for a
roundabout at the intersection of Old Clifton Road and McCormick Woods
Drive (Project ID #2.08) no later than J-1ine 1, 1023 January 31, 2025 and
McCormick will commence construction of said roundabout no later than
June 1, 24242026, provided that the City has before then acquired the
additional land, not owned by Developer, that is needed for this roundabout;
and Developer will complete construction in a timely and workmanlike
manner. Such work shall be completed no later than Septe October 30,
242-52027, so long as the City has acquired the land neeessar-y any necessary
additional right of way and issued the permits for the roundabout before
June 1, 24242026. If the City has not acquired the lad neeess g@y
necessary additional right of way or issued the permits for the roundabout
before June 1, 24242026, but does so more than 24 months before expiration
of their Development Agreement, Developer shall construct the roundabout
with 24 months of such acquisition and/or permit issuance, whichever
occurs later_
5. Default. Failure or delay by either Party to perform any term or provision of this
Amendment Agreement shall constitute a default. In the event of alleged default or breach of any
terms or conditions of this Amendment Agreement, the Party alleging such default or breach shall
give the other Party not less than thirty (30) days' notice in writing, specifying the nature of the
alleged default and the manner in which said default may be cured. During this thirty (30) day
period, the Party charged shall not be considered in default for purposes of termination or
institution of legal proceedings.
After notice and expiration of the thirty (30) day period, if such default has not been cured
or is not being diligently cured in the manner set forth in the notice, the other Party to this
Amendment Agreement may, at its option, institute legal proceedings pursuant to this Amendment
Agreement.
FIRST AMENDMENT TO McCORMICK TRANSPORTATION DA
Page 4
/9-28-2023
10728979.7 - 367463 - 0005
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
6. Non -Waiver of Breach. The failure of a Party to insist upon strict performance of
any of the covenants and agreements contained herein, or to exercise any option herein conferred
in one or more instances shall not be construed to be a waiver or relinquishment of said covenants,
agreements, or options, and the same shall be and remain in full force and effect.
7. Conflict. In the event of any conflict between this Amendment Agreement and the
Port Orchard Municipal Code, this Amendment Agreement shall control.
8. Resolution of Disputes and Governing Law. If any dispute arises between the
City and McCormick under any of the provisions of this Amendment Agreement, jurisdiction of
any resulting litigation shall be filed in Kitsap County Superior Court, Kitsap County, Washington.
This Amendment Agreement shall be governed by and construed in accordance with the laws of
the State of Washington. The non -prevailing party in any action brought to enforce this
Amendment Agreement shall pay the other Parties' expenses and reasonable attorney's fees.
9. Written Notice. All written communications regarding enforcement or alleged
breach of this Amendment Agreement shall be sent to the parties at the addresses listed below,
unless notified to the contrary. Unless otherwise specified, any written notice hereunder shall
become effective upon the date of both emailing and mailing by registered or certified mail, and
shall be deemed sufficiently given if sent to the addressee at the address stated below:
McCORMICK:
Eric Campbell
12332 NE 115th Place
Kirkland, WA 98033
eric&msp groupllc. com
CITY:
Rob Putaansuu, Mayor
City of Port Orchard
216 Prospect Street
Port Orchard WA 98366
rputaansuu(a cit ofportorchard.us
Nick Tosti A copy shall also be transmitted to the City Clerk at the
805 Kirkland Avenue, Suite 200 above address
Kirkland, WA 98033
nicktostigemail.com
10. Modification. No waiver, alteration, or modification of any of the provisions of
this Amendment Agreement shall be binding unless in writing and signed by a duly authorized
representatives of the City and McCormick.
11. Severability. The provisions of this Amendment Agreement are declared to be
severable. If any provision of this Amendment Agreement is for any reasons held to be invalid or
unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall
not affect the validity or constitutionality of any other provision.
FIRST AMENDMENT TO McCORMICK TRANSPORTATION DA
Page 5
/9-28-2023
10728979.7 - 367463 - 0005
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
12. Good Faith and Due Diligence. The Parties agree to perform all obligations under
this Amendment Agreement in good faith and with due diligence.
13. Impact of First Amendment. As set forth in the Recitals above and as shown on
Exhibit D, McCormick Communities, LLC is the only property owner that is bound by the
Development Agreement that is impacted by this First Amendment. This First Amendment does
not change any impact fee credits, concurrency, development standards, or entitlements for any
parcels that may be covered by the Development Agreement and that have since been sold by
McCormick to other parties, therefore, none of the owners other than McCormick Communities,
LLC are parties to this First Amendment as their rights are not affected. Therefore, given the
limited nature and impacts of this First Amendment, only McCormick Communities, LLC and the
City need to be parties to this First Amendment and no other parties who may otherwise be bound
by the Development Agreement need to participate in this First Amendment.
IN WITNESS WHEREOF, the Parties have executed this Amendment Agreement on this
day of , 2023.
MCCORMICK COMMUNITIES, LLC
By:
Its:
APPROVED AS TO FORM:
Patrick Schneider
Attorney for McCormick Communities
CITY OF PORT ORCHARD
DocuSigned by:
F�b
BY:
Its: Mayor
APPROVED AS TO FORM:
DocuSigned by:
s.
3CCD924BC20444F...
Jennifer S. Robertson
Attorney for Port Orchard
ATTEST:
DocuSigned by:
)I ujamt-
Brandy Wallace
Port Orchard City Clerk
FIRST AMENDMENT TO McCORMICK TRANSPORTATION DA
Page 6
/9-28-2023
10728979.7 - 367463 - 0005
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
Exhibit A 1
List of Parcels Subject to Fee Credit
McCormick North
052301-4-023-2008
052301-4-027-2004
052301-4-024-2007
052301-4-025-2006
052301-4-026-2005
052301-4-013-2000
042301-3-011-2005
McCormick West
082301-2-002-2004
082301-2-003-2003
082301-1-013-2003
082301-2-004-2101
082301-1-010-2006
082301-1-014-2002
172301-2-002-2003
172301-2-004-2001
172301-2-003-2002
172301-2-006-2009
172301-2-005-2000
172301-2-007-2008
172301-3-004-2009
McCormick Woods
042301-3-010-2006
6031-000-131-0002
5552-000-045-0008
092301-1-005-2002
092301-4-004-2007
092301-1-009-2008
092301-4-005-2006
092301-4-003-2008
092301-4-002-2009
162301-1-021-2003
162301-1-020-2004
162301-1-019-2007
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
Exhibit A2
Areas Subject to Fee Credit
Legend
McCormick North
McCormick West
McCormick Woods
........................................ %
North
• ........................................
........................................
West
.......................................
Wd
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
Exhibit 6 1
List of Parcels with Vested Concurrency
McCormick North
052301-4-023-2008
052301-4-027-2004
052301-4-024-2007
052301-4-025-2006
052301-4-026-2005
052301-4-013-2000
042301-3-011-2005
McCormick West
082301-2-002-2004
082301-2-003-2003
082301-1-013-2003
082301-2-004-2101
082301-1-010-2006
082301-1-014-2002
172301-2-002-2003
172301-2-004-2001
172301-2-003-2002
172301-2-006-2009
172301-2-005-2000
172301-2-007-2008
172301-3-004-2009
McCormick Woods
042301-3-010-2006
6031-000-131-0002
5552-000-045-0008
092301-1-005-2002
092301-4-004-2007
092301-1-009-2008
092301-4-005-2006
092301-4-003-2008
092301-4-002-2009
162301-1-021-2003
162301-1-020-2004
162301-1-019-2007
Legacy Lots
5190-000-018-0009
6031-000-032-0002
6031-000-025-0001
6031-000-063-0004
5161-000-021-0009
5145-000-023-0008
5139-000-013-0008
6031-000-074-0001
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
Exhibit B2
New Concurrency Areas
Legend
McCormick North
McCormick West
McCormick Woods
Golf Facilities
...................................... ti
North
........................................
........................................
West
........................................:
........................................
Wd
........................................:
.......................................
GC
........................................7
See Exhibit B1 for legacy lots vested to concurrency with this agreement
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
Exhibit C
Boundary of 2005 Traffic Agreement
DocuSign Envelope ID: 6A4DE39D-8CFE-49F8-8879-DFB3CBF2CB83
Exhibit D
Areas Subject to first revision
Legend
Parcels subject to 1s revision:
6031-000-131-0002
092301-4-004-2007
092301-4-003-2008
Parcel Numbers
5552-000-045-0008
092301-1-009-2008
092301-4-002-2009
:.................
092301-1-005-2002
092301-4-005-2006
162301-1-021-2003
162301-1-020-2004 162301-1-019-2007