Cutting deals with developers to benefit public? Council learns more Tuesday

Should the City of Edmonds consider negotiating with developers to provide public amenities in exchange for being able to build a taller residential building or add more density to a commercial project? That concept generated many questions at Tuesday’s Edmonds City Council meeting, as councilmembers listened to a presentation on the subject of incentive zoning and development agreements and how those could apply to future Edmonds projects.

City Attorney Jeff Taraday explained that with incentive zoning, the idea is “to find right balance” between obtaining a benefit the public wants — perhaps amenities that are difficult to provide given the city’s budget challenges –and an incentive that will be both attractive to the developer and acceptable to citizens.

If the council decided to pursue such an idea, Taraday recommended that they identify three areas of benefits or amenities they would like to see, and what kind of incentives they’d be willing to offer a developer. Ultimately, developers want to make money and the idea is to provide something that appeals to their bottom line, he added. He recommend that any ideas should be tested before adoption by reaching out the development community to ensure that such incentives are appealing.

Then Taraday explained the concept of development agreements, essentially a state-authorized contract between the city and a developer “that sets forth just about all of the regulations that are going to apply to a particular development on a property.” Such agreements are often used for very large developments — he cited as examples Redmond Ridge and Snoqualmie Ridge — where cities and developers want to be very clear about what type of development is allowed and what regulations will apply, particularly when  project is being built over a long period of time.

Among the questions asked by councilmembers, a common theme was how to ensure that the developer held up its end of the bargain once such agreements were made. Taraday stressed the need for “tightly crafted” language and also due diligence in monitoring the projects to ensure they met agreed-upon specifications.

After nearly 90 minutes of council discussion on the matter, Mayor Dave Earling recommended that the issue be referred to both the Edmonds Planning Board and Economic Development Commission to obtain citizen input.

rectangle map webNext up was the City’s possible participation in the creation of a Regional Fire Authority, Finance Director Shawn Hunstock gave an overview of the current status of the RFA planning committee, which was formed in 2011 and has been meeting regularly to sort out whether there is support for such a regional fire service.

The cities of Brier, Edmonds, Lynnwood, Mill Creek, Mountlake Terrace and Mukilteo; the town of Woodway and Snohomish County Fire Districts 1 and 7 initially expressed interest in the concept. Mill Creek recently dropped out and Lynnwood may leave as well, Hunstock said. As a result, the total cost to the remaining municipalities will be higher, which may make the idea less attractive, he said. Once final numbers are received, Hunstock hopes to be able to have a recommendation at the Feb. 5 council meeting on whether to continue the city’s participation.

The Washington State Legislature in 2005 enacted a law — RCW 52.26 – that permits municipalities to combine resources and personnel to provide fire and emergency medical services on a regional basis. A regional fire authority must be composed of at least two or more adjacent fire districts or municipalities and must be approved by a majority vote of residents living in those districts.

For cash-strapped municipalities, the regional fire concept — which by law must be approved by voters –  is attractive because it take the cost of fire protection out of the municipalities’ budget and funds fire services through a separate tax levy just for the fire service. Municipalities can also impose an additional fee, known as a benefit charge, for the regional service. Such a fee  is a variable rate based on the square footage and the amount of fire service provided to a  home or business.  (Businesses with a greater fire risk, such as manufacturing or companies handling hazardous materials, would pay more.)

The assumption is that cities involved in a regional fire district would continue the normal property tax, although some cities have reduced the amount collected for regular property taxes to offset the fire service charge. You can learn more via the Regional Fire Authority planning website — www.rfa-planning.org.

  1. Working with developers to bring about the things we may want and need in the city can be useful rather than a disaster. For example if a developer would offer to build a new Senior Center as a part of a development that would save the city millions of dollars. When the initial plans for the development of the post office site were developed there was some interesting discussion about how to get more affordable rentals right down town and a botique hotel on the site for a very small height increase. Working for more open space or amenties like a public market would also be enhancements for the city. Much of the susccess of working with a developer depends on what we the citizens would like to have for additions to the city. Take a look at the Strategic Plan for some good ideas that the citizens would like to have.

  2. The current arrangement with Fire District 1 is up for renewal. Either party can give notice to cancel. At this point the ideas floated for a Regional Fire Authority would have cost Edmonds more than the current plan. Council will need to make some tough decisions about fire and EMS service. Hopefully they will put all the details on the table as the consider how to provide fire service for Edmonds. We essentially subcontract for some services like Fire and Library. We Pay a bit over $6m for Fire and retain and maintain the fire house properties and buildings. Similarly we house and maintain the Library and currently pay $3m. Our payment for the Library fluctuates base on the total value of our tax base. When w funded the Library directly from the General Fund we paid $1m then with the direct taxing authority given to Sno-Isle the cost was as high as $4m. It is temporily down to under $3m but will go back as housing prices grow. The key to subcontracting for services is that we pay our fair share. It is hoped we pay the cost of providing the service but not pay more than our fair share that would end up in subsidizing other communities.

    Council should create policies that help us all understand what we are pay for and what we are getting and where the money is coming from to pay the bills. That is a form of transparency that needs some work.

  3. I have been viewing paper-work from the past 30 years in regards to “development”, and it doesn’t appear that the developers have ever had any other incentive than making money without any other regards. This paper-work also shows that the land in question for development is not stable (this shown a number of years ago)……….With some of the recent mud-slides, and all of the areas where the land is clearly unstable across King and Snohomish counties, one only has to look at the “development” done to see how this happens and continues……….Ninety percent of Edmonds was considered “developed” a number of years ago, so that pretty much tells it all. And that earthquake is coming! I walk every day down by the marina and look up at those brown condos on that high embankment and clearly the land is sliding down because of that development……..one area already netted.
    I look at the paper-work from the past 30 years, all the “strategic plans”, options, developers ideas, lawyer stuff, consultant stuff, drawings, paintings, and wonder how much $$$$ has been wasted on this, just for the idea of “development” in this little town of 38,000 people. And the time spent by all elected/paid officials discussing this over and over. Maybe money would b e better spent coming up with ideas that have nothing to do with developers. ……or building tall buildings. I don’t think we need developers $$ to keep the town of Edmonds going

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