Transfer of Development Rights Project Grants for Central Puget Sound Cities

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3 APPLICATION FORM JULY 6, 2010 Transfer of Development Rights Project Grants for Central Puget Sound Cities Release Date: July 6, 2010 Due Date: August 10, 2010 Received by 5:00 PM, Pacific Time, Department of Commerce, Growth Management Services

4 A. Applicant Information Fill out applicant organizational contact information. Applications should include the following: Application Title Hilltop/MLK Mixed-Use Center Sub-Area Plan: Priority TDR Receiving Area Application Funding Amount $100,000 Brief Summary of Application Subarea planning for a specific area of the City ( words) that will allow it to function effectively as a TDR receiving area by using measures that will include: fast tracking revitalization through up front environmental review under SEPA; planning and design of capital facilities; and, planning for infrastructure and neighborhood amenities to support increased density. Estimated Start and End Dates Estimated Start: December 31, 2010 Estimated Completion: June 30, 2012 Name of Jurisdiction(s) City of Tacoma Name of Project Lead Ian S. Munce, AICP Address, City, State, Zip Code Community & Economic Development Dept. 747 Market Street, Room 1036 Tacoma, WA Phone, Fax, (Voice) (Fax) imunce@cityoftacoma.org Name of Partners (when applicable) Upper Tacoma Business Association Allen Renaissance B. Work Plan A transfer of development rights (TDR) project work plan with tasks, milestones/critical steps, and deliverables with deadlines is included with this application as Attachment A. The work plan demonstrates that the funds will be expended and project or program goals achieved within the timeframe indicated in the application. C. Budget A TDR project grant budget is included in Attachment A. The budget goes hand-in-hand with the work plan. Budget amounts are tied to tasks and deliverables. The budget includes evidence of applicant funds used for the project. Budget amounts include the grant amount and committed local leveraging funds. Page 2 of 10

5 D. Evaluation Questions Explanations of these questions are included in the table shown under Evaluation Criteria and Scoring System in the Application Packet. Please provide answers to the following questions: 1. Project Overview a. How does the work plan ensure a successful outcome and ultimate use of TDR? Over the past three years, the City of Tacoma ( City ) has devoted extensive resources to develop a voluntary TDR program. Last year, the City Council amended the City s development regulations to include TDR as a development incentive, authorizing increased building heights in the City s mixed-use districts. However, the ultimate use of TDR in the City requires additional work. During our TDR outreach, we learned that developers will use the City s voluntary TDR program only if TDR also increases their project s certainty. This finding mirrors the TDR Policy Advisory Committee s findings. To increase certainty, and to ensure a successful outcome of the City s TDR work plan, we envision using this grant application to complete subarea planning and environmental review for an identified mixed-use TDR receiving area. The envisioned subarea planning and environmental review consists of two interconnected steps: (1) receiving area community outreach and (2) completing an Environmental Impact Statement ( EIS ) for the subarea that analyzes the maximum build-out of the subarea under the existing development regulations. These steps build community support for TDR development and provide certainty for the developer, both in terms of identifying necessary mitigation and in terms of minimizing SEPA-based legal challenges. This is the final (and currently unfunded) step that will ensure the ultimate successful use of TDR in Tacoma. Specifically, this grant application seeks $100,000 to fund the envisioned subarea planning for the Martin Luther King neighborhood ( MLK ), one of the City s 16 mixed use centers that are identified in the City s Code as TDR receiving areas (MLK boundaries shown in Figure 1). We selected MLK because developers told the City that the area is well positioned for economic revitalization and densification. We agree. The MLK neighborhood has significant, well documented, and zoned capacity for additional density and access to multi-modal transportation, e.g. bus transit, with connections to light rail, and commuter rail. Brownfield development in this area will not impact critical areas but will instead facilitate the revitalization of this urban core. MLK is located within the designated Downtown Tacoma Regional Growth Center. A coalition of community stakeholders recently completed a detailed neighborhood strategic plan that entailed extensive community outreach, input, and direction, and that identifies the subarea planning envisioned in this grant as the logical next implementation step. This application seeks to build on and not replicate this work and to make use of the community energy that is currently mobilized. Page 3 of 10

6 Figure 1 The first component of this grant proposal is community outreach. This outreach will build on the community outreach completing during the mixed use center update and the neighborhood initiated strategic plan. Groups that have participated in the development of the strategic plan represent non-profit and public health and social services, community organizations/advocacy groups, for-profit health care, faith community, business enterprise, public sector, and education. As a demonstration of continued support, two of these groups have agreed to partner on this project: the Upper Tacoma Business Association and Allen Renaissance; a letter of support from Allen Renaissance is included as Attachment B. The outreach will help the City identify infrastructure and neighborhood amenities needed to support increased density in the MLK TDR receiving area. The second component of this grant proposal is an upfront environmental review of the MLK TDR receiving area under SEPA. To complete the EIS, we will rely upon ESHB 2538 (2010), a law similar to SEPA planned actions, yet requiring increased community outreach during EIS scoping. The EIS will analyze the MLK mixed use center at the maximum build-out authorized with the use of TDR. This will allow a developer to use TDR to achieve a height bonus, knowing that the increased height will not trigger unknown mitigation or trigger a new environmental review. All work will be completed by June 30, 2012, with specific benchmarks and deliverables to be determined cooperatively between the City and the Department of Commerce. Page 4 of 10

7 b. Is the proposed work plan consistent with the multi-county planning policies adopted by the Puget Sound Regional Council in VISION 2040? If yes, please explain. Yes. The proposed work plan is consistent with and advances the multi-county planning policies adopted by the Puget Sound Regional Council in VISION VISION 2040 seeks to steer growth away from resource lands, critical areas, and rural lands and into established cities, particularly metropolitan cities such as the City. Between 2000 and 2040 VISION 2040 mandates that the City plan to accommodate an additional 127,000 people and an additional 97,000 jobs. The City has taken steps to accommodate a significant portion of that growth within our mixed use centers. Additionally, both VISION 2040 and the City s Comprehensive Plan envision a major transfer of development rights ( TDR ) from rural lands into the 16 designated mixed-use centers within the City, mixed use centers that can accommodate significant additional growth in well-designed, transit-orientated centers. To advance Vision 2040, the City recently rezoned the City s mixed use centers, significantly increasing each center s capacity to accommodate residential and economic growth. Consistent with Vision 2040 and the Regional TDR Program, the mixed use centers identify TDR as a development incentive, authorizing increased building heights in the City s mixed-use districts. Finally, the application advances national priorities. The Environmental Protection Agency ( EPA ) recently funded a regional TDR initiative between King County, Pierce County, and the City, among other parties. This grant will fund the final technical steps to complete the City s TDR development regulations (i.e. establishing TDR transfer ratios, etc.). The grant does not fund the actions contemplated in this grant proposal. c. Is the jurisdiction proposing to conduct this work as part of a strategic partnership? If yes, please explain. Yes. The City built its TDR program on strategic partnerships, and this grant funding will leverage these relationships to efficiently and effectively complete the envisioned scope of work. The City s TDR program is supported by Pierce County, community organizations, and environmental advocacy groups, among others. The City has already partnered with Pierce County to pursue activities that will result in helping make the City a regional TDR receiving site. The $1.33 million regional TDR initiative funded by EPA, and administered by King County, enables the City to conduct a TDR market analysis of its TDR receiving sites, develop the mechanics of a TDR program, and pursue opportunities to create a regional TDR receiving site pilot project. The deliverables are: a TDR economic analysis and Transfer Ratio, a draft Interlocal Agreement with Pierce County or adoption of Commerce s Interlocal Terms and Conditions Rule, and a TDR ordinance for City Council consideration. The City will match $110,000 in EPA funds with $53,000 in City funds (Attachment C). The funds from this grant will build on the City s efforts to make TDR successful. Beyond establishing a TDR program, the City has identified several tasks (see section 1a) that increase the likelihood that the partnership between Pierce County and the City will result in regional transfers of development rights. The City is committed to making TDR a success and funding for this subarea plan will help accomplish that goal. Page 5 of 10

8 d. What innovative approaches, sustainable approaches do you propose? There are many aspects to this work plan that demonstrate innovative and sustainable approaches. The subarea plan is innovative because it moves beyond the idea that TDR is successful on its own. The success of TDR depends upon demand from developers; by the City doing up front planning and SEPA review, developers are provided more certainty that their projects are consistent with what the community wants. This in turn eliminates risk and results in more development and use of TDR. In addition, in being consistent with sustainability practices, the subarea plan will be undertaken and fully incorporated into the City s Comprehensive Plan in a manner that adheres to the City s planning principles, the City s recently adopted Mobility Master Plan and complete streets design standards, and associated capital programs. 2. Ability to Proceed a. What is the city or town s level of commitment to the project? Since 2007, Tacoma has dedicated significant resources to create a TDR program. The City has completed background research, identified potential sending and receiving sites, and conducted extensive public outreach with various community groups. In 2009, the City Council included TDR in the City s Mixed Use Centers plans and development regulations. With the downturn of the economy, TDR work was placed on hold until the City secured funding from the EPA in partnership with Pierce County to conduct a TDR market analysis and develop an interlocal agreement with the County. This application, continued community outreach, and upfront environmental review are the next logical steps towards successful TDR program implementation. b. How prepared is the jurisdiction to begin work under the grant contract, from a budget, staff capacity, and legislative standpoint? Since 2007, Tacoma has dedicated staff to establish a TDR program. With this experience, we have developed in-house TDR expertise. Through 2012, the City has funded staff to work on TDR programs. With additional resources from this grant, the City staff is prepared to expand the scope of work to include managing MLK community outreach and the subarea environmental review. As demonstrated from the language of the draft resolution, the City has the legislative leadership to advance the City s TDR goals. The City of Tacoma has proven its ability to efficiently and cost-effectively manage planning grants. The Department Commerce has selected the City s mixed-use center plans for one of its 2010 Smart Growth awards. This award is an example that the City has the existing expertise and professional capacity to execute major tasks such as those proposed in this grant application. Additionally, the City has the fiscal systems in place to properly select consultants and document grant expenditures. Commerce has acknowledged this fact by accepting the City s summer, 2010 Quarterly Report on its $100,000 grant from Commerce for the Container Port Element of the City Comprehensive Plan. Page 6 of 10

9 c. Are there other committed funds the jurisdiction will be using for the project? Please describe the funds and how they have been committed (e.g. a grant award, a letter of commitment from a bank). Yes. The City will match the $100,000 in Funds from Commerce with a $20,000 in in-kind contribution. E. Resolution of Support A draft Resolution is included with this application as Attachment D, indicating support for the work to be done and describing the level of commitment to the work funded by the grant. The City understands that an adopted resolution will be required before the contract can be signed. ATTACHMENT A: TDR Receiving Area: MLK Sub-Area Plan Work Plan The preliminary methodology outlined below is intended to address: (1) subarea planning that would allow a specific subarea of the City to function effectively as a TDR receiving area, (2) up front environmental review under SEPA for a designated TDR receiving area, (3) planning and design of capital facilities in a designated TDR receiving area, and (4) planning for infrastructure and neighborhood amenities to support increased density in a TDR receiving area (collectively sub-area planning ). The MLK neighborhood is one of the City s 16 mixed use centers that are eligible to be TDR receiving areas once a TDR program is in place pursuant to the City s EPA grant; MLK neighborhood boundaries are shown in Figure 1 of the application. The MLK neighborhood has been selected for this application because it is within the Downtown Tacoma Regional Growth Center and has a detailed, neighborhood strategic plan that has just been completed, a strategic plan that entailed extensive community outreach, input, and direction and that calls for subarea planning as the logical next implementation step. This application seeks to build on and not replicate this work and to utilize the community energy that is currently mobilized. High quality design and sound infrastructure is of critical importance to neighborhood acceptance of additional density. Task 1 Consultant Selection The City will use its established procurement process to retain consultant services. Deliverable: The consultant will be retained by April 1, 2011 Task 2 Project Kick-off City staff, Consultant, and key stakeholders will conduct a project kick-off meeting to: Review final Scope of Consultant Services, schedule, roles and responsibilities, expected outcomes, coordination with related planning activities and supporting organizations, and format for deliverables; Confirm the geographic boundaries of the study area; Page 7 of 10

10 Discuss preliminary direction for the stakeholder and public involvement plan; and, Identify and assess local needs, opportunities, and constraints, including a joint Staff/Consultant tour of the study area. Deliverable: Meeting summary by May 1, 2011 Task 3 Data Review The Consultant will work with City staff to collect and review available data. This will include information from existing studies, including the recently published MLK/Hilltop Neighborhood Report entitled Upper Tacoma Redevelopment Plan, census data, development guidelines, and other available information. The City Project Manager will prepare a memo that describes data gaps and recommends methods to fill gaps. The memo will also include an assessment of the relative significance and priority for filling any identified data gaps. Deliverable: Assessment of available data, data gaps, and recommendations for methods to obtain needed data by June 30, Task 4 Public and Stakeholder Input With input from the Consultant, City staff will develop a public involvement implementation plan that provides a detailed approach to the activities and timelines associated with the public involvement effort. The strategy will include the number and type of public venues and the timing and content of communication materials. Stakeholder Interviews Working with City staff, the Consultant will identify target stakeholder groups from existing organizations, agencies, and interest groups. The Consultant will schedule and conduct group meetings and/or individual interviews. The focus of these meetings will be to obtain stakeholder input on a vision for the study area, on changes needed to address future growth associated with MLK being a priority TDR receiving area, on environmental impacts and potential mitigations, and on infrastructure and neighborhood amenities necessary to support the increased density. Public Involvement The Consultant will schedule and facilitate large public workshops as planned for and approved in the public involvement plan. The focus of these workshops will be to obtain input on a vision for the study area, changes needed to address future growth associated with being a priority TDR Receiving Area, on environmental impacts and potential mitigations, and on infrastructure and neighborhood amenities necessary to support the increased density. The Consultant will summarize input and priorities from these workshops, including a discussion of how the findings will be incorporated into the planning process. Deliverables: Public involvement implementation plan, together with a summary report that documents methodology for gathering public and stakeholder input, summarizes all comments Page 8 of 10

11 received, and describes how this information will be incorporated into the future sub-area plan, TDR incentives, and upfront SEPA review, all by June 30, Task 5 Existing Conditions Report Based on the findings of Tasks 2 and 3, the Consultant will prepare a draft existing conditions report for the Land Use Plan. Depending on the availability of information, elements of the Existing Conditions Report could include a discussion of: Land use inventory data, development trends, land tenure and other characteristics based on available information Urban and rural character Applicable plans, policies and regulations Housing Economic Development Infrastructure systems and capacity transportation, public services, utilities Natural systems, including aquifers and shoreline areas Parks, open spaces, and cultural/historic resources of significance Deliverable: Draft existing conditions report by September 30, Task 6 Draft Vision Statement Based on the results of Tasks 4 and 5, the Consultant will prepare a draft vision statement for review. Deliverable: Draft vision statement by September 30, Task 7 Draft Goals, Objectives, and Policy Framework Based on stakeholder and public input, the Consultant will prepare a preliminary draft Goals and Policies framework for the sub-area plan. For the purpose of this Scope of Services, topics to be addressed are assumed to include (1) Vision, (2) Land Use, (3) Housing, (4) Economic Development, (5) Open Space, (6) Natural Systems, (7) Infrastructure, (8) TDR, and (9) Environmental mitigation measures and systems. Deliverable: Draft Goals, Objectives and Policy Framework by September 30, Task 8 Draft Sub-Area Plan The Sub-Area Plan will focus on the fact that the MLK neighborhood has significant and well documented capacity for additional density, access to multi-modal transportation, e.g. transit, light rail, and commuter rail, and further development will not only not impact critical areas but will facilitate significant restoration of degraded areas. Further, the Sub-Area Plan will build on existing neighborhood partnerships and bring in county and regional stakeholders and additional private investment. The Consultant will finalize the draft sub-area plan, land use categories, and land use map for future action and adoption by the City of Tacoma. The draft plan will include up front Page 9 of 10

12 environmental review under SEPA, environmental impacts and potential mitigations, planning and design of capital facilities, and planning for infrastructure and neighborhood amenities to support the increased density associated with the neighborhood being a priority TDR receiving area. In this regard, the City has recently adopted a Mobility Master Plan and complete streets design standards, and associated capital programs; these will be fully integrated into the proposed MLK subarea plan. Further, consistent with the City s planning principles the Sub-Area plan will present a plan and projects that are consistent with the City s sustainability principles. Deliverable: Draft Sub-Area Plan, including goals, objectives and policies, land use categories, land use map, SEPA review, environmental impacts and potential mitigations, and infrastructure and neighborhood amenities, all by June 30, Task 9 Plan Implementation In order to implement the Sub-Area, the City will prepare recommendations for: Use of existing regulations, with or without modifications, to implement the Sub-Area Plan. Recommendations may address administrative guidance, training, or other measures to help implement the Sub-Area Plan. Changes to existing zoning regulations and building codes. Recommendations will address consistency between regulations and policies and unique characteristics and needs of the MLK Neighborhood. Environmental impacts and potential mitigations. TDR implementation measures tailored to the MLK receiving area. Resolution of conflicts. If conflicts between the Sub-Area Plan, SEPA mitigations, and/or TDR measures and existing regulations are identified, recommendations for prioritizing and resolving such conflicts will be prepared. Deliverable: Report with recommendations for Sub-Area Plan implementation by June 30, Task 10 Project Management This task includes completion of all services required to administer this project. These services include preparing and filing all correspondence, preparing monthly progress reports, monitoring the project budget, and regular coordination with project Consultant. PROJECT BUDGET: $100,000 for consultant services with $20,000 from the City in in-kind match. Page 10 of 10