Loading...
HomeMy WebLinkAbout04/21/99 AGENDABREMERTON CITY COUNCIL 239 4TH STREET BREMERTON, WA 98337 CITY COUNCIL AGENDA APRIL 21, 1999 CITY COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. A. General Council Business CALL TO ORDER: 5:30 P.M. A. Pledge of Allegiance B. Invocation CONSENT AGENDA Items listed below have been distributed to Council members in advance for study and will be enacted by one motion. If separate discussion is desired on an item, it may be removed from the Consent Agenda and placed on the Regular Agenda at the request of a Council member. A. Minutes of Meeting - April 7, 1999 #AB99-069 B. Easement Grant to Cascade Natural Gas for Bremerton #AB99-070 Transportation Center Gas Line 4. CLAIMS/CHECK REGISTERS 5. COUNCIL MEMBER REPORTS 6. MAYOR'S REPORT 7. LEGISLATIVE REPORT 8. PUBLIC RECOGNITION -- (Comments Limited to 3 Minutes) o PUBLIC HEARING - 6:00 P.M. or LATER A. Continued Public Hearing and Resolution No. 2701, Consideration of a One-Year Extension of Preliminary Plan Approval for PUD 96-0002, Sinclair Landing Commercial and Residential Portion of Development; Applicant: The Commercial Group #AB99-071 AGENDA BILL BREMERTON CITY COUNCIL 1. ~: MINUTES OF MEETING-APRIL 7, 1999 FOR AGENDA OF: APRIL 21~ 1999 ORIGINATING DEPT: CITY COUNCIL ORIGINATOR: DATE SUBMITTED: MIKE SHEPHERD, PRESIDEI APRIL 12~ 1999 2. ~: (comment on back 3. EXHIBITS: if necessary) MAY OR 4. SUMMARY STATEMENT AND REOUIREMENT FOR COUNCIL ACTION: 8. RECOM/4ENDATION: RESPONSIBLE OFFICIAL: ENFORCEMENT OFFICIAL: EXPIRATION DATE: REVIEW DATE: PULLED TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED DISAPPROVED DATE: 3DED 11. AGENDA BILL NO: TAPE #1607 UNAPPROVED DRAFT CITY COUNCIL MEETING MINUTES APRIL 7, 1999 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, April 7, 1999, at 5:30 P.M., with Council President Mike Shepherd presiding. Council members present were Carlos Montgomery, Carol Arends, John Law, Cecil McConnell, and Wayne Olsen. Council members Jim Reed, David Fart, and Lon Overson were absent. Also present were City Attorney Glenna Malanca, Deputy Clerk Paula Johnston, and Council Assistant Christine Grenier. The meeting opened with the Pledge of Allegiance led by Council President Shepherd and invocation given by Reverend Cleveland Williams of Ebenezer African Methodist Episcopal Church. President Shepherd made the following announcements: (1) City Council held a Pre-Council Study Session to discuss General Council Business. CONSENT AGENDA A. Minutes of Meeting - March 17, 1999 #AB99-062 #0075 MISICIU (McConnell/Montgomery) Motion to approve the Consent Agenda as presented. CLAIMS/CH ECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a listing that had been made available to the Council. #0105 M/S/C/U (Montgomery/Arends) On April 7, 1999, the Council does approve for payment those vouchers included and further described as follows: 229493 to 229694 in the amount of $424,013.27; and Regular Payroll for the period ending March 31, 1999, in the amount of $980, 097.96. COUNCIL MEMBER REPORTS Mr, McConnell announced that metal spikes may be worn at Gold Mountain Golf Course until May 1, 1999. For more information, call 415-5428. Also, there will be a District 1 and 2 Town Meeting on Thursday, April 15 from 7:00-9:00 P.M. at the Parks and Recreation Center located on Lebo Boulevard. Mayor Lynn Horton will be attending. TAPE #1607 City Council Reg. Mtg. Minutes April 7, 1999 Page 2 of 4 Mr. Law announced that Sammy Kahn's memorial service was held today where many recalled his service to the community. The next District 3 meeting will be held on April 20, 1999 with special guest Sheriff Steve Boyer, at the Senior Center located on the corner of Nipsic and E 13th Street. Mrs. Arends announced that the "Clean-Up Week" for the City of Bremerton will be April 12-16 from 10:00 A.M.-6:00 P.M., and April 17 from 8:00 A.M.-4:30 P.M. Those items accepted for pick up are limited to City residents and may be up to 8 feet in length. The restrictions for pick-up are that no loads can be larger than a pickup truck or small trailer. Olympic View Landfill will accept furniture, mattresses, and other "soft" items, while no appliances will be accepted. The Olympic View Landfill will accept those items during the week for half of the normal rate. For information on either Clean-Up Week or The Olympic View Landfill, please call 478-5920. The School District Board of Directors will be meeting on Thursday, April 15 at 5:30 P.M. at the School District Administration Office located on Marion Avenue to discuss a Resolution to approve an education plan and a reduction in force. Mr. Montgomery announced that a combined District 6,7,8 meeting will be held in April with the date to be announced at a later time. Mr. Shepherd announced that the Evergreen Children's Theater will hold a sneak preview benefit for the new puppet museum at Admiral Theater located on Pacific Avenue on Sunday, April 11, 1999 from 3:00-6:00 P.M. The West Sound Arts Council will hold a grand opening for the Gilded Age Collection April 9 from 7:00-9:00 P.M. located on 4th Street. Habitat for Humanity will hold an orientation meeting on April 18 at 3:00 P.M. at the Ebenezer African Methodist Episcopal Church located on Park Ave. MAYOR'S REPORT The Mayor announced that there will be an Armed Forces Pageant this evening at 7:00 P.M. located at the Bremerton High School. A listing of events is available for Water Week, which will take place August 28-October 3 and the registration deadline for Water Week events is May 28. Further information can be obtained by calling (360) 943-3642. The Mayor proclaimed the month of April 1999 as "Countdown to Earth Day 1999" in the City of Bremerton. April 17 will be commemorated nationally as the 29th anniversary of the founding of Earth Day. The annual statewide clean-up, recycling, and beautification events are being sponsored in part by Kitsap County Department of Surface and Storm water Management with the theme "Think Globally, Act Locally", to clean our environment. The Clean-up will take place on April 17 at the First Street Dock from 1 lam- 2pm. Don Larson received the proclamation and encouraged people to attend. Meeting sites will be located at the end of 2nd Street near the boardwalk, Lion's boat launch located on Lebo Boulevard. Other sites included the area near the Shipyard and Port Orchard near Annapolis. TAPE #1607 City Council Reg. Mtg. Minutes April 7, 1999 Page 3 of 4 The Mayor proclaimed April 4-10,1999 as "Building Safety Week" in Bremerton. For construction and building codes to be effective and enforced, cohesion and cooperation must exist between buildings and officials and the people they serve. Through the efforts of state and local building officials and their working relationships with the construction industry, the administration of these health and life safety standards is assured. Numerous groups are joining efforts to promote the use of building and construction codes through the observance of Building Safety Week. The theme of the 1999 Building Safety Week will be "A Safer World Is On the Horizon". The Proclamation was received by Judy Johnson. She encouraged the public to call 478-5211 or 478-5275 to receive further information regarding Building Safety Week or other concerns regarding current building projects. The Mayor also announced there will be a welcoming of the USS Abraham Lincoln tomorrow night at Legends, located at the Puget Sound Naval Shipyard. LEGISLATIVE REPORT None. PUBLIC RECOGNITION Louis Mentor emphasized that ferries are vital to Bremerton and offered the idea of Iow interest loans to residents to fix bulkheads in order to eliminate the need for lawsuits and injunctions against ferry service providers. Buck Kinq presented a letter to the City Council and requested that the cable on the flag pole at a waterfront park located on Trenton Avenue be fixed so that the P.O.W. flags may be replaced. Larry Dickerson offered an apology regarding last week's Diamond. He emphasized that tenants, rental owners, and responsible to provide for a peaceful neighborhood. comments regarding Joe property owners must be John Becker announced that on April 8 at 7:30 AM at the Silverdale Community Center, located on Silverdale Way, the Bremerton and Silverdale Chamber of Commerce in conjunction with Puget Sound Naval Bases Association, are sponsoring a meeting with Congressman Dicks and Congressman Inslee, who will provide an update on Congressional issues. Don Larson mentioned the process of urban renewal in the San Diego area and discussed how project design can improve tourism and pedestrian access. Roy Mclnnis apologized for comments that he made at a prior City Council meeting. TAP E #1607 City Council Reg. Mtg. Minutes April 7, 1999 Page 4 of 4 9A - PROFESSIONAL SERVICES AGREEMENT WITH WASHINGTON TIMBERLAND MANAGEMENT FOR CABLE SALVAGE AND THINNING, #AB99-063 Washington Timberland Management (WTM) will provide logging plan, operator, operations management, and marketing for highest value, on approximately 130 acres of second growth timber within Water Utility forest land as specified by the Forestry Manager. Harvest operations will consist of thinning to a residual stocking of approximately 120 stems/acre and salvaging of diseased and/or dead timber as identified from GIS maps provided by the Forestry Division and field identification provided by WTM. This action will further the overall goals of the Forest Management Plan and will substantially contribute to the Water Utility's revenue for 1999. WTM will be compensated by receiving 10% of the delivered log price on harvested timber. Bill McKinney discussed the history of other agreements similar to this agreement before the City Council. Prior salvage projects have generated $3.5 million dollars. As of today, 70,000 trees have been planted. The prospective salvage and thinning project includes 130 acres and $240,000 dollars is expected to be the return on this project. Mr. Mont.qomery asked how the Endangered Species Act listing would affect the harvest. Mr. McKinney responded that there are 50-100 foot buffer zones around streams that are located in the areas of the thinning project. Therefore, the project would not be affected by the Endangered Species listing which applies to projects in the proximity of salmon bearing waters. #1400 MISICIU (Montgomery/McConnell) Motion to authorize the Mayor to execute the attached professional services agreement. With no further business meeting adjourned at 6:15 P.M. PAULA JOHNSTON, Deputy City Clerk MIKE SHEPHERD, Council President City of Bremerton PJ/MS/cg C: Normal Distribution File AGENDA BILL BREMERTON CITY COUNCIL SUBJECT: Easement Grant to Cascade Natural Gas for Bremerton Transportation Center Gas Line FOR AGENDA OF: April 21, 1999 ORIGINATING DEPT: Parks & Recreation ORIGINATOR: Jim Spencer DATE SUBMITTED: April 14, ~999 2. ~: (comment on back 3. if necessary) City Attorney . . PW&U Director ×~/~ Fiscal/Budget ~t..~~3 '~'~ Operations 4. S~RY STATE~NT ~D REOUIREMENT FOR COUNCIL ACTION: Easement Kitsap Transit Letter Cascade Natural Gas is requesting an easement grant across the parking lot adjacent to the boardwalk from 2nd Street to the Bremerton Transportation Center for underground gas lines. This land parcel is not included in Parks Protection properties so Parks Commission review is not required prior to bringing this issue before City Council. This easement description will be superseded at a later date with a surveyed description once the gas line has been installed. 8. RECOMMENDATION: Move to approve the easement grant to Cascade Natural Gas for underground gas lines across the parking lot adjacent to the boardwalk from 2nd Street to the Bremerton Transportation Center. RESPONSIBLE OFFICIAL: Parks Director ENFORCEMENT OFFICIAL: Parks Director EXPIRATION DATE: REVIEW DATE: PULLED TABLED COUNCIL DIRECTIVE: 10. NOTICE OF ACTION APPROVED DATE: DISAPPROVED 3ED 11. AGENDA BILL NO: 2. CLEARANCE COM~4ENTS (cont.~: 4. SUM1WARY STATEMENT (cont.): 5. IMPACT ON NON-PASSAGE: City is obligated through the Memorandum of Understanding with Kitsap Transit to provide necessary easements for Bremerton Transportation Center construction. IMPACT ON STAFFING~ BUDGETS~ FACILITIES, ~QUIPMENT OR OTHER RESOURCES N/A 7. RESEARCH SOURCES: TEMPORARY CONSTRUCTION EASEMENT City: Bremerton County: Kitsap ORIGINAL ERg: 1070-107-56657 The undersigned CITY OF BREMERTON, a municipal corporation (hereinafter referred to as "Grantor"), for and in consideration of Ten Dollars (St0.00), and other good and valuable consideration, the receipt of which is hereby acknowledged, does hereby grant, convey, and warrant to CASCADE NATURAL GAS CORPORATION, a Washington corporation (hereinafter referred to as the "Grantee"), a temporary construction easement over the following described property of the Grantor: Property Description: GOVERNMENT LOT 3 OF SECTION 13 AND GOVERNMENT LOT 1 OF SECTION 24, TOWNSHIP 24 NORTH, RANGE 1 EAST W.M. AND ADJOINING TIDELANDS. Temporary Easement Location A strip of land 10 feet in width having 5 feet on each side of the centerline of Grantees' facilities as constructed, to be constructed, extended, or relocated within Grantors' property described above. This temporary construction easement shall be superseded by a permanent easement once construction hereunder has been completed. Exhibit "A", attached hereto and made a part hereof shows an approximate location of Grantees' proposed facilities. Grantee will obtain a survey of showing the location of the facilities. The Grantee agrees to hold the Grantor harmless from any loss, cost, or damage resulting from the Grantee's negligence in connection with the coustruction, operation or maintenance of the pipeline and the Grantor agrees to hold the Grantee harmless from any loss, cost, or damage caused by the Grantor, its agents, invitees, or licensees or from any breach of this agreement. Grantor agrees to cooperate with Grantee to obtain all necessary permits, licenses and governmental action so that Grantee may enjoy the full use and benefit of a permanent easement. This temporary easement shall be binding upon the heirs, executors, administrators, personal representatives, successors, and assigns of the parties hereto and shall terminate upon recording of the permanent easement. Upon entry onto the property in the exercise of this temporary construction easement, the surface of the ground shall be substantially restored to it's condition prior to commencing work or as nearly thereto as is reasonably possible. In consideration of the specific agreements to be performed by the parties hereto and written in this agreement, the parities bind themselves to the terms and conditions stated herein. No verbal representations or agreements shall be binding upon either party. In witness whereof, the undersigned have executed this temporary easement this day of ,1999. State of Washington ) County of Kitsap ) On this day personally appeared before me to me known to be the of the City of Bremerton, the municipal corporation that executed the foregoing instrument, and acknowledged the said instrument to be of the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned. Given under my hand and official seal this __ day of , 1999. Notary Public for: Residing at: My Commission Expires: CITY OF BREMERTON, Grantor BY: LYNN S. HORTON Mayor DEPARTMENTAL APPROVAL: JIM SPENCER Parks Department APPROVED AS TO FORM: GLENNA MALANCA City Attorney RECEIVED FOR FILING: KATHLEEN L. ivlcCLUSKEY City Clerk ~-09-1999 1 '~: 23A1'4 CNG SEA 2~ C:~ 41a~9 F,. 2 January25,1999 Mr. Mike Dun Cascade Natural Gas 6313 Kitsap Way Bremerton, WA 98312 KITSAP TRANSIT Re: Natural Gas Supply Line Bremerton Transportation Center Dear Mr. Dun: In November 1998, at our request, the natural gas line starting from Wa.qhinglon Street to the Bremerton Ferry Terminal, other 1" Street Businesses and the Port of Bremerton Marina complex was disconnected and capped. Capping was required because of the demolition work in pro~ess to prepare the site for the new Bremerton Transportation Center (BTC). A new gas pipeline is required to service this new facility, a future three story retail building and to reconnect the Pon of Bremerton Marina to nmmal gas Attached for your use in planning a reute and obtaining an easement from the City to install a new Natural Gas line we have enclosed the following information: 1. Drawing Job No. 21-3627-01 "Power Location" showing the location of the power and telephone conduits servicing the future BTC. 2. Part of drawing P - 2.2 showing the location of the gas meter to be installed for the BTC only. A separate meter will be installed at this same location for the future three-story retail building 3. Drawing CP203 that shows some of the other utilities in the Area. This Drawing is not complete for the area adjacent to 2~ Street. We recommend that the pipeline be installed from 2"d Street to the site to avoid interference with new BTC construction and'to reconnect the marina. The pipeline will nm through the city parking lot, which has been rented by. Kitsap Transit. This parking lot is the active bus operations area servicing the ferries during BTC construction. Any work in this area must be closely coordinated with KT bus operations. The earlier this project can be completed, the easier it will be to provide access for the installation crew. We request that Cascade natural Gas ex-pedite the completion of this project. If you need any other data please call me at 360475-0238. Sincerely. ,~ ~ H. Donald Laford. ~2cM Agencies Project Manager Cc: Wendy Clark/KT Bill Geil/HSWCC Steve Toms/Port of Bremerton Randy Witt/city of Bremenon File 234 South Wycoff Brernerton, Washington 98312-4199 [.qRfT) .q77-70178 W~h.eif~. ' www /df.e~nfr~n.wif ora ENGINEERING DIVISION MEMORANDUM TO: FROM: DATE: SUB J: W. Eugene Sampley, Director of Public Works and Utilities Tom Knuckey, Senior Engineer April 12, t999 Response to Questions in Letter from Mr. Paul Drnjevic dated March 24, 1999 Question No. 1 - How much work was done on this system after September 14, 19987 By September 14, 1998, the rough site grading was complete along with installation of the detention pond, and neady all site piping. The CCF Building base slab, e~er.~dp_r (masonry) w_all__s, interior (wood stud and gypsum wall board) w~lls, and roof were installed. Installation of mechanical equipment inside the building was underway, and submittals for most of the equipment had been approved and the equipment was on-order. The remaining work to be done was as follows: Sitework · Final grading, asphalt paving and installation of bollards · Hydroseeding Building · Paint concrete base slab and stemwalls · Texture and paint the gypsum wall board, and install trim · Install doors and glazing · Stucco the exterior gable ends of the facility, and paint gables and trim · Install control room and lavatory cabinets and fixtures · Install grating and handrails March 24, 1999 City Council City of Bremerton 239 Fourth St. Bremerton, WA 98337 2515 E. 2Znd St. Bremerton, WA 98310 Bremerton City Council Members: On or about September 14, 1998 Bremerton City Council passed a resolution to cease implementation of the fluoridation equipment until after the ballot results of the special election in February 1999. Apparently the fluoridation system work proceeded and the system was installed entirely (all equipment, piping, etc.). This appears to be in direct opposition to the resolution which City Council passed. Was it the plan of City Council to stop all work and all spending as implied by the resolution, or was the plan to continue spending money and continue work? If it was the intent of City Council to stop spending and stop work on the fluoridation system, who then authorized the continuation after City Council advertised to the Citizens of Bremerton and everyone to cease implementation of fluoridation until after the election7 Regardless of who authorized the continuation, please answer the following questions. 1. How much work was done on this system after September 14, 19987 2. How much money was spent purchasing and continuing installation of equipment and or piping after September 14, 19987 This information is being requested under the Freedom of Information Act. Paul Drnjevic ' i~ity Council-:~F~e: C~iJ~en Request f~r ,.~. From: To: Date: Subject: Gene Sampley City Council Thu, Mar 18, 1999 2:19 PM Re: Citizen Request for Info There is no written agreement. It was part of a presentation made to the Council in support of a rate adjustment request about three years ago. At that time the administration agreed that we would do everything we could to keep future annual rate adjustments at 3% or inflation, whichever is greater. Rich Hanna would have the proforma used to convey that information. rqy >>> City Council 03/18 11:07 AM >>> At the City Council meeting last night, during discussion on item "9A - Review of Conditional Approval of Mediation Resolution between PSA and City of Bremerton", the Mayor referred to an Agreement from three years ago, where it was outlined that utility rates would not be raised, other than cost-of-living adjustments, which would average about 3% per year. John Becker has requested a copy of this Agreement. Where can I get a copy? Thank you... Lori (5280) CC: Rich Hanna, The Mayor April 21, 1999 251 5 E. 22nd St. Bremerton, WA 98310 City Council City of Bremerton 239 Fourth St. Bremerton, WA 98337 Bremerton City Council Members: First I wish to congratulate President Mike Shepherd on his letter to the Editor in the Sun. Quite clearly the anti-fluoridation folks did not defeat the school levy. It was the people outside the City. The anti-fluoridation folks were in favor of the levy. The article which accused the anti-fluoride folks for failure was on the front page of the Sun. Mr. Shepherd's letter should also have been on the front page. On March 24, 1999 I gave a letter to City Council with 4 questions on the fluoridation system equipment and work. On April 2, 1999 someone signed Mr. Sampley's name as "Signing For" Mr. Sampley, on a letter indicating they expect to respond before April 19, 1999. I guess "respond" is a crucial word to the letter, because it didn't say they would "answer" the questions. On April 17, 1999 I received a non-answer 'Engineering Department Memorandum' of Tom Knuckey to Mr. Sampley, passed to Lori Smith, City Council Secretary, with a short cover letter signed by Christine Grenier, Council Assistant. To me that letter/memorandum is a disgrace to the City and seems to fit in the vein of a city official referring to some voters as "crummy voters", and indicates that City Government will ignore the constituents or try to confuse them. I hope this isn't what was intended. I have no way of knowing if this letter was reviewed or seen by anyone on City Council. And I think the answers should be coming through City Council, not directly from Mr. Tom Knuckey, unless you want that. The following is paraphrasing from my March 24, 1999 letter with comments about the letter from the city (I am including a copy of my letter because the questions were not answered. Please re- read my letter.). question 1 concerned City Council's intent of their Sept. 14, 1998 resolution to cease implementation. This question is not even addressed. question 2 asked who authorized continuation of the work. This question is not even addressed. .question 3 asked how much work was done after September 14, 1998. For this there is very confusing information presented. Is this an attempt at gross confusion? Actually, the information doesn't address the question. question 4 asked for the amount of money spent on purchase and continuing installation of equipment and the system after September 14, 1998. Again the information presented is confusing. I hope City Council intends to answer these questions clearly and to the point by April 2_7, 1999 - more than a month after my letter. Paul Drnjevic March Z4, 1999 City Council City of Bremerton 239 Fourth St. Bremerton, WA 98337 2515 E. 22nd St. Bremerton, WA 98310 Bremerton City Council Members: On or about September 14, 1998 Bremerton City Council passed a resolution to cease implementation of the fluoridation equipment until after the ballot results of the special election in February 1999. Apparently the fluoridation system work proceeded and the system was installed entirely (all equipment, piping, etc.). This appears to be in direct opposition to the resolution which City Council passed. Was it the plan of City Council to stop all work and all spending as implied by the resolution, or was the plan to continue spending money and continue work? If it was the intent of City Council to stop spending and stop work on the fluoridation system, who then authorized the continuation after City Council advertised to the Citizens of Bremerton and everyone to cease implementation of fluoridation until after the election? Regardless of who authorized the continuation, please answer the following questions. 1. How much work was done on this system after September 14, 19987 2. How much money was spent purchasing and continuing installation of equipment and or piping after September 14, 19987 This information is being requested under the Freedom of Information Act. Paul Drnjevic AGENDA BILL BREMERTON CITY COUNCIL 1. SUBJECT: CONTINUED FOR AGENDA OF: Auri! 21, 1999 PUBLIC HEAi~ING/RESOLUTION # ~70~ DEPT. OF ORIGIN: DECD - Planning ACTION: One Year Extension of Pre] ]minar¥ ORIGINATOR: Jon Holan Plan Approval for PUD 96-0002, DATE SUBMITTED: April 15, 1999 Sinclair Landing - Commercial/Residential Portion of Development APPLICANT: The Commercial Group LOCATION: P.O. Box 10145 Bainbridge Island, WA 98110 2. C~~CES: (CQ~ent on back if necessary) 3. E~IBITS: D ECD Director : City A ttorney~ /L~ CC Resolution No. Staff Report & AttacN_menns ~DOCUHENTS WILL BE AVAILABLE MONDAY, APRIL 19~ 1999) ENDORSEMENT ./NO i2?TION APPROVED BY COUNCIL PRESIDENT FOR SUBMITTAL: co cIL P S DENT o SUM~Y STATEMENT AND REQUIREMENT FOR COUNCIL ACTION: Council muse decide if the applicanE's request for a one Eime one ',fear extension for submission cf 5he Final Dian for PUD 96-0002, Co.~umercia!/Residen~ia! Por~i.cn of Deve!opmen~. The applicant mus! show ~:~a~ progress is being mas= and ~nar -'r is very ~ike!y =~-- --~=; ~ will be = '~ -~ed wi'' ' ,~l~= _ ~uo::~=~ Enzn .... extended Eime period. 5. RECOMMENDATION: P~ESPONSiBLE OFFICIAL: Jon Ho!an ENFORCEb~NT OFFICIAL: EXPIRATION DATE: REVIEW DATE: PULLED TABLE D COUNCIL DIRECTIVE: 7. NOTICE OF ACTION APPROVED D I SAPPROVE D DATE: 9A 8. AGENDA BILL NO.: 9. CLEARANCE CO~4ENTS: 10. IMPACT OF NON-PASSAGE: Failure to approve the extension by April 21, 1999 would result in the expiration of Preliminary PUD 96-0002. 11. IMPACT ON STAFFING~ BUDGETS~ FACILITIES~ EQUIPMENT OR OTHER RESOURCES: Additional staff resources will be required to review the PUD's Final Plan. 12 . RE SEARCH SOURCE S: Zoning Ordinance File ATTACHMENT TO: In re BEFORE THE CITY COUNCIL OF THE CITY OF BREMERTON S]~ICLAIR LANDING PLANNED UNIT DEVELOPMENT, Commercial Group, Applicant. PUD 96-0002 Resolution 2701 The Bremerton City Council, having heard this matter in open session and being otherwise fully advised, finds, concludes, and resolves as follows: FINDINGS This is an application pursuant to BMC 21.02.520 for an extension of time limit for action on a preliminary plan for a PUD. The PUD at issue is commonly known as Sinclair Landing. The Council opened a public hearing with proper notice on 24 March 1999. At this he~aring it was noted that staff required additional time to prepare a report. The hearing was continued to 21 April. On 21 April the Council reopened the hearing and accepted into the record and reviewed the application, the staff analysis and recommendation, and evidence from citizens, including testimony. Under a master development agreement, the PUD has two, distinct portions with two separate developers: 1) the Bremerton Transportation Center, of which Kitsap Transit is the developer, and 2) the balance of the PUD, of which Commercial Group is the developer. This application and this resolution deal only with the latter. The Council approved the Preliminary Plan on 27 March 1997. No Final Plan has been submitted. The record does not support a finding that Commercial Group has made the required progress on the proposal, especially on the elements expressly set out in the conditions of the Preliminary Plan. The record does not support a finding that it is very likely a Final Plan would be submitted within the one-year extension period requested. CONCLUSIONS The Preliminary Plan would expire 21 April 1999 unless either a Final Plan were submitted or an extension granted pursuant to BMC 21.02.520(a). Commercial Group has timely filed for an extension. Commercial Group has not shown that it has made progress under the Preliminary Plan nor has shown that it is very likely that a Final Plan will be submitted with the one-year extension requested here. THEREFORE BE IT RESOLVED that Commercial Group's application for an extension is denied. Dated this day of April 1999. BREMERTON CITY COUNCIL MIKE SHEPHERD, Council President ATTEST: PAULA JOHNSTON, Deputy City Clerk Date: April 21, 1999 To: City Council From: Phil Berry, Director of Community and Economic Development Subject: Time Extension for Preliminary PUD 96-0002, The Commercial Group Background: Section 21.02.520(a) allows the City Council to extend a preliminary approval on a planned unit development (PUD) for a period of one year upon a showing by the applicant that progress is being made and that it is likely that a Final Plan will be submitted within the extended time period. The Commercial Group made a request for a time extension on the Preliminary PUD 96-0002. On March 24, 1999, the City Council opened the public hearing to consider extension and concurred with the staffrecommendation to continue the matter until April 21, 1999 to allow The Commercial Group the opportunity to address the issues raised in the March 24 staff report (see Attachment A). Analysis: At the time of the writing of this report, The Commercial Group has not submitted any information or analysis to address the issues raised in the March 26 staff report. The organization did submit a letter dated April 9, 1999 (see Attachment B). In that letter, they argue that based on Condition 19 of the Preliminary PUD approval, the Final PUD can be submitted by the end of 1999. Further, they contend that the Council has within its authority to extend the filing time for the Sinclair Landing PUD from March 26, 1999 to the end of 1999 as an integral part of its initial approval. In its letter, they cite a passage from the March 24 staff report to confirm the Final PUD submittal date. The staff`report reference to the Final PUD approval cited in the letter was in context of determining at what date the City Council could emend the Preliminary PUD approval if the extension was granted. However, Section 21.02.520 (a) states in part: "Within a maximum of two (2) years following City Council approval of a Preliminary Plan, the applicant shall file a Final Plan for all or part (if phased) of the Planned Unit Development. If the Final Plan is not filed within two years (from Preliminary PUD approval), the right to proceed under the Preliminary Plan shall expire." Based on this requirement, the City Council does not have the discretion to extend the approval of the Preliminary Plan to the end of 1999. Since the original Preliminary PUD approval was on March 27, 1997, the applicant must obtain a time extension on the Preliminary Plan approval to preserve the permit. Recommendation: Staff recommends that the City Council deny the time extension request since the applicant failed to show, based on the criteria identified in the March 24 staff report, that progress being made and that it is very likely that the Final Plan would be submitted within the extended time period. JON HOLAN ATTACHMENT A Date: March 24, 1999 To: City Council From: Phil Berry, Director of Community and Economic Development Subject: Time Extension for Preliminary PUD 96-0002, The Commercial Group Background: The City Council on March 27, 1997 adopted Resolution 2588 (see Attachment 1) approving Pre 'hminary Planned Unit Development Number PUD 96-0002, known as Sinclair Landing. The proponent at that time was the Sinclair Landing Association. The PUD was for the development of commercial retail and office, and residential development as well as the development of a transportation facility known as the Bremerton Transportation Center (BTC). The overall development covers approximately 22.5 acres with the commercial/residential portion comprising 21.41 acres and the BTC coveting 1.21 acres. (Note: There is some overlap in acreage because a portion of the commercial/residential component of the PUD, the Commuter Retail Building, is located in part of the area for the BTC.) On March 18, 1998, the Sinclair Landing Association, the City of Bremerton, The Commercial Group (developers of the commercial/residential portion of the PUD), Kitsap Transit, and Port of Bremerton entered into the "Sinclak Landing Master Development Agreement" (see Attachment 2). As part of that agreement, Sinclair Landing Associates assigned that portion of the PUD pertaining to the BTC (excluding the Commuter Retail Building) to Kitsap Transit. The remaining portion of the PUD was assigned to the Master Developer, which is The Commercial Group (see Section V.C. PUD on page 8 of the Agreement). According to Section 21.02.520 (a) of the Bremerton Municipal Code, within two years of Council approval of the Preliminary PUD the applicant shall either file a Final Plan for the PUD or the Council may approve an one year extension on the preliminary. Since no Final Plan has been filed on the commercial/residential portion of the permit, The Commercial Group is requesting a one year extension on the Preliminary PUD (see Attachment 3). A similar request is being made by Kitsap Transit for the other portion of the PUD. It should be noted that Condition 19 of the PUD approval indicates that the Final Plan for Phase 1 of the PUD must be submitted by the end of 1999. The Assistant City Attorney has indicated that the extension request, if approved, is a modification of the permit approval and would extend the first phase submittal to March of 2000. The applicant contends that an extension of the Preliminary PUD approval is unnecessary (see Attachment 4). They contend that Paragraph F of the recitals in the Sinclair Landing Master Development Aggreement modified the phasing of the PUD to include only the Bremerton Transportation Center (BTC) as the only portion of the first phase. As discussed below, the approval of the Preliminary PUD included the BTC and other retail/commercial components. The applicant also contends that the Final PUD for the BTC has been met and they as co-applicants have completed the Final PUD for PUD 96-0002 and not only for the BTC. Preliminary PUD 96-0002 Time Extension Request - The Commercial Group March 24, 1999 Page -2- First, the requirements of the zoning ordinance takes precedence and must be met. As mentioned above, the ordinance requires that within two years after the Preliminary PUD approval, either the Final Plan be submitted or the City Council grant a one year time extension on the.preliminary. Second, Staff believes the applicant's interpretation of the Master Development Agreement is in error and that the Final Plan has not been submitted. Recitals of an agreement merely states certain facts surrounding the agreement but is not part of the terms of the agreement itself'. This is illustrated in the agreement after Recital F when it states, "Now, Therefore, the parties agree as follows:." Staff's review of the Master Development Agreement indicates that there are no provisions within the terms of the agreement that modifies the approved phasing schedule under the original PUD application. As a result, the PUD phasing has not been modified by the agreement. Further, The Commercial Group is not a co-applicant on the BTC. As mentioned above, the Master Development Agreement identified two different parties to be responsible for different portions of the PUD. This is the reason that two different extension requests are being considered by the Council. Regarding the issue of the final PUD approval on the BTC, as indicated in the staff report on that extension request, Kitsap Transit has prepared many of the elements required for the Final Plan. However, the Final Plan has not yet been submitted and is the reason Kitsap Transit is requesting the time extension. As a result of the above situation, staff maintains that, pursuant to the requirements of the Bremerton Municipal Code, the applicant needs to request an extension on the Preliminary PUD approval if the PUD is to remain active. ANALYSIS: Standards of the Extension Approval: Section 21.02.520 (a) states that, "The City Council may approve a one year extension of the time [of the Preliminary Plan] upon a showing by the applicant that progress is being made and that it is very likely that the Final Plan will be submitted within the extended time period." The following is a discussion of The Commercial Group's request for the time extension in relation to the two standards for approving the extension. Progress is Being Made: The Commercial Group has taken some initial steps in developing the commercial/residential portion of the PUD. The applicant has submitted a Project Description to the City Council as part of its responsibilities under the Master Development Permit. Further, according to materials submitted with the extension request, The Commercial Group has been actively seeking tenants and partners to finance the project. In addition, the applicant has met with property owners within the PUD project area to engage their involvement. Further, The Commercial Group has engaged design and economic consultants as well as a general contractor and land appraisers to move the project forward. To this end, The Commercial Group indicates it has expended $ 746,000 to pursue the implementation of the PUD. Preliminary PUD 96-0002 Time Extension Request - The Commercial Group March 24, 1999 Page However, The Commercial Group presented the Project Description to the City Council on September 23, 1998 and February 3, 1999. As a result of this review process, The Commercial Group was required by the City Council to provide to the City: - Future tenant commitments as recommended by the City's Financial Analyst; - Responses to reasonable inquiries and verification requests by the City's Financial Analyst; Arrangements for sufficient Public Attractions; Detailed construction estimates; Updates on their efforts to purchase necessary properties within the project area; and - Acceptable parking for the Marina. To date, the applicant has not provided any information to indicate how they have met or are meeting these requirements as part of its demonstration of making progress on the PUD. It should be noted that the shoreline approval process is intended to be phased. To date, the only portion of the Preliminary PUD which has received shoreline approval is identified as Phase A/B and includes the Commuter Retail Building and the BTC. As a result, there has not been any shoreline permit approval for any of the proposed commercial/residential development portion of the Preliminary PUD including the waterfront park and waterfront esplanade. The City Council can consider this situation in making its determination that progress has been made by the applicant. Staff did not consider this issue since there is no requirement that the shoreline approvals must precede Final Plan submittal. Further, the shoreline permits for the commercial/residential portion of the development could be requested at any time without necessarily delaying the PUD process. Final Plan Likely to be Submitted: According to the Municipal Code, the Final Plan includes: Any modifications to the underlying zoning standards which were part of the Preliminary PUD approval; Final detailed engineering plans on: - Drainage, - Grading, - Trash collection, Preliminary PUD 96-0002 Time Extension Request - The Commercial Group March 24, 1999 Page -4- - Fire hydrants, - Waste disposal systems, - Water systems, - Electrical systems, - Street improvements, and - Other necessary public improvements. Necessary agreements to assure installation of all improvements; Any needed Covenants, Conditions, and Restrictions to provide for ongoing maintenance and repair of all private service facilities held in common. The Final Plan may be submitted for the entire PUD or phases as adopted by the Preliminary PUD approval. Phase 1 includes the Bremerton Transportation Center, the Commuter Retail Building which is in the same development area as the BTC, four other commercial buildings, a parking structure, a waterfront park and waterfront esplanade. Excluding the BTC, this initial phase of the development includes: 193,360 square feet of retail space 141,118 square feet of office space 59,763 square feet of miscellaneous space (museum and health club) 99 room hotel 714 parking spaces The Preliminary PUD approval also specifies that signatures from all affected property owners are required as part of the Final Plan application. As indicated above, the applicant must demonstrate that it is likely that the Final Plan can be submitted within the time extension. Thus, the applicant must show that it is feasible to obtain affected property owners' signatures, and submit final detailed engineering plans and any covenants and restrictions in one year. The commercial/residential development requires no zoning ordinance modifications and such amendments would not be needed for the Final Plan submittal. The applicant did indicate in a project time line submitted with its request that the Final Plan would be submitted by February 14, 2000 (line 8 of the timeline). However, there is no other information provided to demonstrate that this date can be met. SEPA: A Mitigated Determination of Non-Significance (MDNS) was issued for this project on December 4, 1996. Since this request is for the extension of the original project, the MDNS is adequate for this proposed request. Further, staffwould also note in support of this determination Preliminary PUD 96-0002 Time Extension Request - The Commercial Group March 24, 1999 Page -5- that there has not been any substantial change in the environment where the facility is being built and no substantial new information has been discovered since the approval of the Preliminary PUD. In addition, it should be noted that this determination takes into account recent issues related to ferry wake impacts on beach homes in Rich Passage. However, staff'finds that this is not an issue related to this particular permit extension since the ferry operations are currently occurring and will continue to occur regardless of the development of the commercial/residential project. While a successful implementation of Sinclair Landing would generate additional ferry passengers, the wake issue, if it is found to be an impact, is the responsibility of the Washington State Department of Transportation through operational and/or vessel design modifications. CONCLUSION AND RECOMMENDATION: With this complex project, there are a variety of factors that can enter into making these determinations. Due to the short time frame for the time extension request, there has not been sufficient time to identify the relevant criteria. Thus, staffrecommends that the City Council continue this matter to April 21 to allow sufficient study time to address the issues raised in this staff'report. During this period, the Council may identify other factors or criteria for The Commercial Group to address in demonstrating progress and likelihood that the Final Plan can be submitted within one year. JON HOLAN Planning Manager ATTACHMENT B April 9, 1999 Mike Shepherd City Council President City of Bremerton 239 4" Street Bremerton, WA 9833 7 Via; FAX Re: Time extension for PUD 96-0002, Sinclair Landing Dear Mike; 1he purpose of this letter is to advise the City that we assert our rights pursuant to the terms of Candition 19 of the PUD. AS iterated previously, The Commercial Group [TCG] believes there is no n~-'ad to request an extension of the Sinclair Landing PUD at the present time. On the other hand, to satisfy the concerns of the City of Bremerton as expressed in the letter of February 3, 1999, TCG agreed to supply additional information and request an extension in an effort to reach an accommodation on this issue. Nevertheless, it must be painted out that the City Council, in its initial approval of the PUD on March 26, 1997 [Resolution No. 2588], specified in clear and unambiguous languacje ~ the applicant had until the end of 1999 to submit a final PUD proposal for the initial phase of the project: Phase 1: 1997 throuqh 1999 - Buildings 1,2,3, 4, and 5; 15 & 16 & 12 (Emphasis added) The Cily's Director of Community and Economic Development has confirmed this paint, In his letter to the City Council dated March 24, 1999, he states, 'it should be noted that Condition 19 of the PUD approval indicated that the Final Plan for Phase I of the PUD must be submitted by the end of 1999.* (Emphasis added) The Bremertan Municipal Code, Section 21.02.520(a) provides that within two years of Council's approval of the preliminary PUD, or, aiterr~zfltvely, the Council may approve a one year extension of the filing requirement. As the Council is empawered under the Cade to extend the filing time for up to one year, clearly it was within its author~ to extend the filing time for the Sinclair Landing PUD from March 26, 1999 to the end of 1999 as an integral part of its initial approval. 1 04/09/99 Sinclair [angling T~me Exteasion Request TH[ I IIMMEHI IHI RO. Box 10145, Bainbridge Island, WA 98110 V: 206-855-9423 F: 206-855-9438 e-mail: rmcgrea188@aol.com The fact that the Council's action was not st~K~ifically characterized as an "extension" is irrelevant. As confirmed by Mr. Phil Berry, the intent of the City Council to permit filing of the final Sinclair Landing PUD until the end of 1999 is clear. To hold that the Council acted illegally is unnecessary and inappropriate. This is particularly lTue considering a third parly, acting in reliance upon this approval, has spent considerable time and money preparing for the submission of the Final PUD. The C~y of Bremen'on is urgently requested to r~s~ss this issue and confirm that TCG I"~s until Decenlz~r 31, 1999 to file a Final PUD Plan for the first phase of the Sinclair Landing Project. Sincerely, . ,.,, ,~ I~an Managing Director .cc Mayor Hod'on Glenna Malanca, City Attorney Phil Berry, Director of DC;ED Richard Hayes, Executive Director K[l'sap Transit Robert Schneidler, President of SLA Richard Brandenburg, Executive Director of Poff of Bremerton 2 04/09/99 Sinclair Landing Time Extension Request April 1,5, 1999 Mayor Horton Cily of Bremerton 289 4~ SITeet Brernerton, WA 98837 Re: Letter mailed April 12, 1999 concerning MDA Requirements & FebnJan/3, 1999 Performance Issues Honorable IVlayor; The timing of your letter and timeframe for our response seems a little peculiar. I thought the only issue before the City Council was whether to extend the PUD. Could you please clarify what is being discussed, and when and if, we will be given an opportunity to defend aumeives? Returning to the subject of your letter, it includes a few characterizations of events surrounding the Master Development Agreemem (MDA] with which I sffongly disag~. For Instance, the second paragraph of your letter recounts an Inaccurate description of both the MDA negotiations and the ~'rtent of the language canceming the Equity Letter requkement in the MDA. 1he following statement in y~ur letter is incorrect: 'The nego~ on this issue were clear: ~ Mayor was insistent that TCG establish its ability to commence the Project, and lhcrt there be a tight timeline for the Project to be under way" (sp.]. Neither you n~ the C~ Attorney ever conveyed anything about a 'tight timeline" to ~commence the P~'o.'lecl' to us, At the time the IVIDA was being crafted the principals of TCG knew enough ~bout the difficulty of developing in Brernertan that a discLJssior~ about a "tight timeline" would have boon considered laughably absurd. If this was your goal wiw' didnff you put in ~.nguage that the .p~ of the Equity Letter is for TCG to establish its ability lo meet a '11cJi ,-t, timeline" to "commence the Project. In fact, the openir:;I senter~ce o~ paragraph VIII C. describes the purpose of the Equity Letter and the other Milestones as simph/: "To facilitate ~ economic ana~is ct the I~oject while proceeding with Project //~nning ,and design,' ~ ~,uity Letter ~'e provided trom the R. K. Getiy Company fulfills ti'~ conditior~ of the MDA. ~ letter is ff, m'n a local de~Joper knov~~ about the developrnent conditions in Bremefton, an owner of an Outlet Mall, and o qu~lifled an,J experienced investor willing to invest his money u~ler the financial terms of the Pro Forma una~ ! Si~lclai~ L~g Ting Exgnsion P.O. Box 10145, Bainbridge Island, WA 98110 V: 206-855-9423 F: 206-855-9438 e-mail: rmcgrea188@aol.com review by CB/staff at the time. Not only is this a valid EquB/Letter for the intended purpose, but the combination of local knowledge and ownership of an Outlet Mall makes the willingness of this firm to invest extremely persuasive 'in the City's "economic analysis of the Projecl" (see Paragraph VIII C. of the MDA). You are l~4nq~ to reinterpret the purpose of the Equity Letter. TCG has clearly and completely fulfilled the conditions of the EquB/Letter Milestone. Before leaving the EquB/Letter topic left me clarify that this type of document in development parlance is simply the introductory letter. This is not an EquB/Loan Commitment which is a legal binding document. As another example, I am going to attach an EquB/Letter [Exhibit "A"] I received ~his week-end so you can appreciate the simplicB/of preliminary correspondence used in the business world. We all try to avoid the legal mumble-jumble until the last possible moment. Next, let me go to the third paragraph of your letter that addresses the parking garage deal structure. Remember last summer when you, the CB/Attorney, CB/Treasurer, City Bond Counsel and TCG principals attended a meeting at CIBC Oppenheimer in Seattle with their national lending executives. In that meeting Rich Hanna described the City's financial position. CIBC Oppenheimer executives determined a City "guarantee" would be inadequate to finance the parking garage without a "co-signer." CIBC Oppenheimer agreed to lend the funds to finance the parking garage pursuant to the terms of the MDA, but only if the CB/obtained the participation of the State of Washington to "guarantee" the payment under the terms of the MDA. We all left that meeting with the understanding the City would pursue such a relationship with the State of Washington. Let me simplify the parking garage deal structure, and see if we can reach an understanding on this issue. First, put aside thoughts about the annual payment formula. Just concentrate on two facts: first, the City is purchasing the parking garages from TCG by making 25 annual payments; second, CIBC Oppenheimer is lending money to TCG to build the garage. Now put yourself in the shoes of CIBC Oppenheimer. CIBC Oppenheimer says to themselves, "That sounds fine, but what if for example, the CB/gets served with an injunction by Puget Soundkeepers that freezes revenues which were intended to make the annual garage payments?' CIBC Oppenheimer considers, "We must have a guarantee from the CB/, but wait a minute, the CB/does have enough cash. We want a guarantee from a bigger fish like the State of Washington." The purpose of the MDA "guarantee" is the same as any guarantee. It is simply to provide funding if there is some unforeseen hic-cup. At the conclusion of the meeting, CIBC Oppenheimer told us that they have done this before, and would be willing to help CB/staff structure an Agreement with the state of Washington. 2 04/19/99 Sinclair Landing Time Ex'tension Request We have previously provided everything required by Paragraph II. B. of the MDA and Agenda Bill #98-212. Please refer to my letter of March 3, 1999 for a summary of our responses. Some of the answers are in the numerous documents we have provided to you over the past 1 2 months. If you are having difticutty finding a particular piece of information we would be delighted to help you find it. As a note of fact, the City can not unilaterally terminate, revoke, or cancel our rights under the MDA without the "mutual agreement" of the other parties to the MDA [Paragraph VIII. E. 5.). Are we really spending our time in a worthwhile manner?. We have reached a paint where the Land Acquisition Plan we provided last year needs to be updated. This update of the Land Acquisition Plan for the "Public Features" will be attached as Exhibit "B". In addition, I am going to attach a spreadsheet analysis of the cost to bring the current buildings in the PUD zone up to code. This document will be attached as Exhibit "C". The significance of this document is that there is virtually no value to any building in Bremen'on except for a couple owned by Bremer Trust. This is critical to an understanding of how to value downtown Bremerton real estate, In other words, the value of downtown Bremerton real estate is simply the value of the land, because the cost to upgrade buildings will be more expensive than building new. This is how the market value of Bremerton real estate should be determined. As further evidence about properly values, I am going to attach a sales brochure for a retail center in Tacoma. This item will be attached as Exhibit "D". This retail center has some similarities with the area of downtown Bremerton in the Sinclair Landing PUD. Both developments are commercial projects, equal in area and price. Presumably, they should be similar. Let me summarize the differences in order of importance to a real estate investor: Cfiteda T~con'~ Race Downtown Bremen'on Location Cost Population (1 mile ring) HH Income (1 mile ring) Daily traffic by site Percentage leased Effective Rental Rate Age of buildings Free parking Cost to bring up to code Area Adjacent to Tacc~ma' Mall on I-5 Next to'ferry terminal $27,500,000 $26,000,000 13,804 13,492 $51,228 $25,492 172,000 cars 23,000 cars 100% 60% $15.00 $6.00 10 years 60-70 years lypically 1,268 stalls None $0 $25,500,000 23.19 acres 24 acres 3 04/19/99 Sinclair Landing Time Extension Request Tacoma Place is priced to be competitive in the national real estate market. Downtown Bremerton must be similarly priced it it is to attract real estate investors. 1 think even the most unsophisticated person can see that Bremerton is not priced at a realistic market level. When you honestly look at Bremeron the conclusion you reach is that the location is sorely lacking in sufficient HH income to support a commercial center, there is not sufficient drive-by traffic, the buildings are only slightly more than half leased, the rental incame daes not justify the sales price, the buildings are old and require substantial upgrades and finally there is no free commercial parking. Clearly, Tacoma Place is the better investment. Any experienced real estate investor will compare Bremerton property values with similar properties and like markets to determine if it is a gcx:)d investment. They will look at the Tacoma Places ot the world and determine which is the better investment. Finally, I am going to attach two Exhibits, E and F, that demonstrate the level of tenant and lender interest in the project. Both these Exhibits demonstrate the level of work and commitment to the Sinclair Landing project by The Commercial Group LLC. From the progress we have made to date, I can state with absolute assurance that the Sinclair Landing Project can become a realB/, but only if it is unburdened of unrealistic expectations, The number one unrealistic expectation is that there is a "quick fix", The number two unrealistic expectation is that without the leverage of a CB/parking garage to reduce unit land costs development is even possible. Redevelopment of Bremerton is a very complex and difficult process, but the Sinclair Landing model is both viable and feasible. Sincerely, Randy McGreal Managing ~)irector ,CC Glenna Malanca, CB/Attorney Phil Berry, Director of DCED Richard Hayes, Executive Director Kitsap Transit Robert Schneidler, President of SLA Richard Brandenburg, Executwe Director of Port of' Bferrfertan 4 04/19/99 Sinclair Landing Time Extension Request Exhibit A April 17, 1999 Mr. Randy MeG-real ~ Dkector The Commercial Group PO Box 10145 Bainbridge Island; WA 98110 De~ l~m~dy: This letter serves as notice that I have identifit~d three tamies, cipher individuals, funds, and/or in--cs t~ have cxprems~ imer~ in funding the Sinclair Landing project. Mr. Budd Moms, a merc~umt banking prof~ional in the stye of Florida, lms shown the d~[ to one of his t'~al estate trust contacts, who h~u indicat~t interest per facsimile dated April 16, 1999, and inquired-about several aspects of'the project. Please respond accordingly as soon as possible to the questions and I will forward them to Bud& Look forward to speaidng with you soor~ Sincerely, Randy Lewis EquityNet Research Exhibit B Land Acquisition Strategic Plan B, !!! Confidential Unfortunately, the Land Acquisition Strategy we presented in June 1999 has not been successful. There are two reasons for this failure: first, some property owners did not wish to become Equity Investors in the Sinclair Landing project because of the risk involved; second, other property owners offered a cash sale were unwilling to sell their property at a cost even close to a market rate. Cansequently, we think it is time to go on to Plan B as we have previously discussed. This document will briefly outline Plan B. PRIVATE LAND ACQUISITION Once issues concerning the PUD extension and Development Program Milestone are approved by the City of B~emerton in a satisfactory way to The Commercial Group we will prepare Cash Purchase and Sale Agreements for all properties that do not have according to the Sinclair Landing PUD a proposed parking garage structure underneath them. The terms offered will be indust~ standard. All Cash Purchase and Sale Agreements will only be contingent upon all property owners within the PUD zone agree to terms. PUBLIC LAND ACQUISITION We were hopeful that we could come to terms with many of the property owners that currently own the property necessary for the MDA parking garages. This has not bccn possible for the reasons dated above. It is therefore necessary for the City of Bremerton to acquire the property for the public parking garages as dated in MDA Paragraph VI. A.: 'The City shall be responsible for the acquisition of all the public properly rights required in connection with the development of the Sinclair Landing Project." For sake of clarification this includes all the property within Blocks 2 [not including property within the BTC], 3, 8 and 9. Once the City acquires the property TCG will step in and reimburse the City for their land acquisition costs. Obviously, this requires a Callateral Agreement between TCG and the City that must be prepared. I 04/19/99 Sinclair Landing Land Acquisition Strategic Plan B. Exhibit C Pa,eel No. PROGRAM SUMMARY OF ESTIMATED RENOVATION COSTS List BIk Site GBA Bsmt, Abatement $isemic Needs SprinklersMeets Glazing Needs Cost to Price Pa~_~cel No. No. No, Lot(s) Address Description (SF) (SF) (SF) Rc,~rd Re,ltd Roof Re~]rd ADA Reclrd HVAC CURRENT BUILDING DESCRIPTION Up, rede SF Building 120-Enetai Plaza &Naval ~uesoem('ranonta-Fraiche Cup. Bremerton ~-hamber of Commerce, Kitsap Transit, National Benefit Advisory, Naval Muesenm)- Building exterior-Horizonlal 1x6 wood end stucco on sit. eat aide, rear Of building is Ix6 3~7~18 002-004 0009 5 2 4.-7 11~ Washington Weir L & D 13,50312,00~ 6,000 Yes Yes Yes Partial No No Partial horizontal siding. $530,725 DO $29 48 The Sinclair Building is on the Historical regisby-2-stol'y w/daylight basement. Exterior is brick o~ 3-sides w/horizontal wood siding on waler side. Exsisflng wlndow'~ are single glazed double-hung. Brick needs repointing 3718-003-006-0005 t 1 3 7-8 232 Washington Ave. Watertront Partners-Brain 8,712 10,260 3,420 No Yes Yes Yes No Yes Partial and roof leakstl $530,726.0~ $38.80 Building was built in 1963 and currenUy houses Dental offices. Exterior in gond 371B-004-001-0008 t 3 4 1-3 400 Washingtan Ave Hanie¥/Protaau/Lamb 27,4427,236 Yes Yea Yea Exsisting No Yes No shape. Interiors contain GWB, 2x4 lay-in tile, $322,311 00 $44.54 4-Stray brick apartment building built 1926. -004-005-0004 27 4 5-6 424 Washington Ave Bale Walter F& Phyllis A 9,147 8,436 Yes Yea Yes Yes No Yea Yes Needs roof, windows, elevator, sprinklers, $714,281 DO $8467 Roxy Theater built in 194l, also contains Jorgen Nelson Jeweler. Exteri~ Of bldg ia poured-in-place concrete & glazed tile 3716 006-006-0008 . 6__~_4 6 6-7 268 4th St Heine M & C. 6,O9~ 9,180 Yes Yes Yes Yes No Yea Yes ~vainscoat. $538,033 00 $58.6C The Car Muesum was built in 1940. Bldg ia a ;)ad, al 2-stray bldg w/combination of poured- In-piece concrete & concrete block with 37 lB-006-0! 2-0000 65 8 $ 2-17230 4Ih SI. Weir L. & D. 19,16~28,74~ Yes Yea Yes Yes No Yes Yes single glazed steel sash windows. $971,572.DO $3379 Built in 1941.3-story renovated office bldg. 3718-007-001-0001 102 7 1-4 302 Pacitic AveConnnily Michael 12,196 No Yes Yes ? No N° No YeP/nice apace. Dk as is ok as is Built In 3930, Renovated office nice apace.Vstucco exteriro ov~ concrete 37 ! 8 DO?-005.000? ! 03 , ~ , 5 264 Burwall St Connoll¥ Michael 3,049 3,960 No Yes Yes ? No No No blsok,w/~ermope~e w~ndows.Roof ok. ~k as ia ok as ia Built in 1920. Renovated ~'tce nice space.Vstucco exte~lro over concrete 37___18-007-006-0006 104 7 6 262 Burwell $l. Connotl¥ Michael 3,049 3,000 No Yes Yes ? No No No bicok,w/tflemlopene windows.Roof o.k. ok aa ia ~k as ia Built tn 1933. CASTLE APARTMENTS.Very go~cl shape, 2-story brick w/daylighti basement,w/single glazed aluminum 31 IS-DO?-DOT-OO05 105 7 7--9 256 Burwell St Haynes Janlce Et Al 6,969 7,192 2,484 Yes Yes Yes Yes No Yea Yes wtndowsRonf ok. $350,584.00 $48.74 Built in 1948. Tear Down, NITE SHIFT TAVERN Terra-Col/a tile and brick over 37.._~18 O07.00g*0003 34_ 7 9 242-246 Bur'~vell St Bu~don Bemord E 5,227 .9. ~4~6 4~743 Yes Ye~ Yes Ye~ No Yes Yes ,rood. Needs eve~/Ihing. $547,34800 $57.7(~ 'Built in 1905. Tear Down. Evergreen Upholstery, Stucco over wood. Needs 3718.007-011-0009 49 7 11 238 Burwell St ~Nelch James T& Joanna K 3,045 3,150 540 Yes Yea Yea Yea No Yes Yea evar~hlng $293,156.0(; $79.44 Built In 1921. CITY HALL BUILDiNG.2-stary w/paPal basement. Does'/meet ADA ,but has  elevator. Extark~ skin is Terra-cots tile 007.014.00064 7 14,15,22-~? 239 4th St Cit~ of Bremertom 26r128 Yes Yes No Yea No Yes No wi~in~[Ita ~[llazed aluminum windows. Roof ok. ? ? Pago 1 Parcel No. List BIk Site GBA Bsmt. Abatement Sisemic Needs Sprinklers, Meets Glazing Needs Cost to Price Parcel .No. No. No. Lo!rs} Address Description , {$F) {SF) {$F) Reqrd Reqrd Roof Reqrd ADA RecFd HVAC CURRENT BUILDING DESCRIPTION U~rade BuiE in 1919. Rab~nis B~ls.2-s~ b~ck bl~. Re~il on I st fir, A~en~ on 2nd fir. 3718-007~16-~4 33 7 16 17 12~ Bu~e~l St Diamond J~l 3,049 6,6~ Yes Yes Yes Yes No Yes Ye~ N~ds ev~i~. Brick n~s re-~infl~. $4~.562.~ $69.47 ~ in 1~. Tear ~, Ta~ S~ ~ to Rabbis ~.2-sto~ s~cco bldg Re~il o~ 1st fir. Apa~ment~ on 2nd fir. Needs 3718-007016010353 7 16-17 214 Bu~ell SI Diamond Joel 1~,~8 2,862,, Ye~ Yes Yes Yes No Yes Yes evenly. $171,854.~ ~,~ ~ilt in 1~7. 245 w/~al beretta ok,Bremedon Ptinfl~ in ba~t. E~ skin is Tena- co~ tile w/single gl~ed aluminum ~ndo~.R~f ~, n~e ma~e I~. 37~8~7-028-~ 1~ 7 28-29 245 4th SI Laine Michael 6,~8 30.~ 6,0~ Yes Ye3 No Yes Yes Ye3 Yes terf~o fl~s $998,~.~ $2729 w/paPal ~s~ent pi~e of junk. Tear ~7~6-~7-030-~ 107 7 ~-31 255 ~ S~ Sodan~ Rear Estate 6,~8 1~,3~ 6,1~ Y~ Ye~ Y~ Yes No Yes Yes s~km d~n. R~ ~ks. , ~7~367.~ $41 BuiE in 1~0. 1.~o~ w~a~menl. [~o~t~ ~ Ni~ bldg. E~efio[ skin m st~co wlss~p~-in wnil ~nd~. Interiror finbhes are 2x4 lay-in ceiling, car~t, 3718-~7-032-~4 1~ 7 32-33 263~[hSt ConnollyMicheel 6,~ 16,~2 ,. 6,3~ No No No No Y~ No NO ~prinklem~rou~ ~AC. okasis okasis BuiE in 1~7.2-~to~ w~se~nt. R~enfly ~ renovated ve~ Nice bldg. E~er~r skin is stucco w/sstopp~-tn ~il ~nd~ nted~or finishes a~e 2x4 lay-in ceiling, car~t 3~18-~7-034-~2 109 7 ~-35 275 4th St Connolly Michael ~ 6,0~ 15,~ 5.1~ No N~ No No Yes ,, No No !sprinklers ~rou~ho~ ~AC. ok as is ok as is BuiE In 1920.2-~to~ wlpadial ~sement pi~e of junk. Tear ~is sucker do~. E~eriof skin Is s~cco w/single glaz~ aluminum 3718-007-036-~ 110 7 36 281 4th St ~eir Louis J 3,04S9,~ 3,~ Yes ~es Yes Yes No Yes Ye~ wind~R~f leaks ~d. $~7,~2 ~ $4565 Built in 1921 Die~ Bldg. 3-s/o~ wlpadial basement E~eHor skin is stucco w/single glazed aluminum ~ndo~.R~ leaks ~d. 3718-~7-037-0~9t 1 ~ 7 37-39 285 4th St Die~ Building Inc 9,147~ ~ 9,270 Yes Yes _ Yes Yes No Yes Yes BremedonEn~re ~d fl~Savi~s~cant.& Trust ~dg, 2-st~ $1.~9.044.~ $47.02 bldg, 1si fir o~ces r~en~y re~a~. 2nd fir tefra~o, ~s elector, bldg e~efior- bdck,lerrac~.~ de~il~, hislorlcal 37 ~8-~8-~1-~ 9 8 1-4 :~202 Pacifm AveReese W. & R. 4.791~0,~8~225 No Yes Yes Yes Maybe ~o, No sku~re. $334,~2.~. $32.49. ..... ~ Penny Bldg 2-sto~ ~ basement. 2nd sto~ Is ~rking d~k. 12'-0 ' from ceiling to 2x4gfid 4'~ from gdd lo ~ of d~k, 3718-~8-~1-01083 ~ 1-14 No Site AddressConnolly Michael 692~ Yes Yes Yes Yes Yes Yes Yes D" d~p ~ns. 24'-0 x 28'~ bay s~cin~. $3,180,~.~ Em~rom Res~fant-single sto~ bldg, ~ 3718-~-017-~1 ~ 6 17 221 Washingtoq ~ve Pete~son Nell J 3,049 2 870 Yes Yes Yes Yes Yes Yes Yes [tame ~ stucco Bremer Bldg/~ug Fox Travel-2-sto~ (L~ks ~ike 3-sto~ E~ e~erlor) termopanes ha~ 3~18-~9-~-~7 16 9 1-2 1 ~ Paci~c Ave Ryan Tim Pro.dies 6,098 18,~ 6,~ Yes Yes ~es Yes No Yes Yes ~een rekofiffed, le~&plaster, 2x4 ~yin tile, $1 ,~7,4~.~ $41.97 ~estsound Bank. Pr~es~ck skinand gan~e ~in~oat w/single glaz~ wi~, ~-~9 003-~5 10 9 1~ Pacfic Ave Btemer J. I E 14.810 2,135 No Yes Yes No No 3-7~ 6,~ Yes Yes $416~72.~ $47.27 Sing~ sto~ stu~o bldg(ne~ to Mc~nalds)- ~3718-~-01g-~7 42 9 19-20 l~Washin~ton Ave Naka~a~ Yoko Trustee3,~9 3,240 Yes Yes Yes Yes Yes Yes Yes TEAR ~WN $1~,~.~ ~52.~ Page 2 Parcel No List BIk Site BBA Beret. Abatement $isemic Needs SprinklersMeets Glazing Needs Cost to Price ParcetNo. No. No. Lot(s) Address DescripUon (SF} (SF[ (SF} Reqrd Reqrd Roof' Reqrd ADA Reqrd HVAC CURRENT BUILDING DESCRIPTION Upgrade SF 3718-OO9-O21-~O3 30 9 21 .<)0 1st St. McO<mltd's Cofp<xation871 945 , No Yes Yes Yes Yes Yes No McD<malds Restura~ 3~18-009-O22-0002 43 9 22 204 1st St ~riedman J S 3,049 3,120 Yes__ Yes Yes Yes Yes Yes Yes TAVER~4-1-STORY TEAR DOWN I New sto,'efront system-HS Wrights 3718-009-023-0001 _22 9 23-24 208-212 1 st St.imantzakle John A/Polaris 3,09~ 5,044 Yes Yes Ye~ Yes Yes No Yes :empofa~/office for parkin~ stnJctui'~ proiect. ~.heer s Tavem-2-story brick bldg,let llr- ~avem, 2nd flr-apa~"~enbl, Ihormopanes on 3718-009-025-0009 , 40; 9 25 218-220 let St :ederer RaymondlJo¥ce 3,04S 9.000 3,000 Yes Yes No Yes No Yes Yes 2nd floor only-TEAR DOWN $602,643 O0 $50.22 ·. , !Ne son Bu Idfng-(Wlndsor House &Bemies ' Coctalls) 3-story bldg brick alld stucco,lath and Plaster.has thermopane windows-Tear '222 224 tat StFriedman Properties LLC 3,04g 10,26C 900 Yes Yes Yes 3718-009-026-..0~8 21 9 26 ! - Yes No Yes Yes Down $736,845.00 $6602 -- 1 broken-up into separate tenants---TEAR 3718 014.005-0003 82 14 5 6 646 Burvvell S!. OietZ Building inc. 6,098 1,92(] 960 Yes Yes No Yes i~io Yo:~ Cooling only DOWN Tear Down Tear Dowr ' ' r - Les Schwab Tire sto~e. I -sto~y concrete 3718 014-010-0006 85 14 10-14 626 Burwetl SI Shaub Sanord Et UX 1.3~939 6,672 Yes Yes Yes Yes No Yes Yes s~ructure, con~minated soiL.TEAR DOWN ]'ear Down Tear Dowr 2-story wood/concrete/block parking structure Potenial 4x20 wood beams to be 3716-014,-014-0002 86 14 14-15 604 Bur,veil StShaub Sartord Et LI~( 4,791 2.75(3 No ,, yes Yes Yes No NIA Exhaust s~lva~led ,Teal Dow~ Tear Dow; ~.18-014~016-0000 87 14 16-17 538 Buiq~vall St. Sorlanos Real Estate6,098 12,154 ,,, No. Yes N/A Yes NIA N/A N/A 2-$tof~ concrete structure. Diamond parking ? ? Single eto~y brick and concrete bldg w/blue .f18-014-018-0008 88 14 18-19 532 Burwell St.Sorlanos Real Estate6,098 12.000 Yes Yes No Yes Yes Yes Yes canop)',Sorieno'sRealEstate $384,100.00 $32.00 37~1~-014-020-0004 8,9 14 20-21 524 Bufwell Bt.S~lenos Real Estate 6,098 12 360 Yes Yes No . Yea Yes Yes Yes $389.650.00 $31.54 Single story bt~illding built in 1974. (Christian Science Reading Room,Pub/Eatery) 3718-014-(~22-0002 90 14 22-25 301-311 Pacit~cAva Navy Yard lnv Co. 12,63212,000 Yes Yes No Yes Yes Yes Yes Comblnatlen wood end brick starefrontl $384,100.0~ $3200 2.story building w/panel basement & mezzanine. Stucco/concrete tile skin. metal [hermopane lath/plaster w/2x41ay-in tile. Retail 1st 3718-014-026-0008 91 14 26.29 509 Pacific Ave5orianosRealEst~le 12,632, 29,050 Yes Yes Yes No Yes No Partial ~lr,ofticesabove. $990,445.00 $3,4.94 -- Bui8 in 1918 Soriano's Bldg. ~?-sto~y w/parttal ~nezzanine and basement. Exterior skin is stucco&concrete tile, metal thermopece retrofil in wood sash, capitals/dentals at 3718-014-030-0002 ~ !4 30 509 4th St Sorianos Real Estate1~742 1,545 Yes Ye~ Yes Yes No Yes Yes parapit. Built in 1918 O~e Accord Christian ~entar, 3718-014.030-0101 93 14 30-3! 523 4that Soriancs Re;~l Estate 4,791 4,635 Yes Yes Yes Yes No Yes Yes Tear Down. Exterior is drTvit. $150,684.00 $32.50 Built in 1920 Brinkerhoff's Appliance, Tear Down. Exterior Is concrete tile w/stucco 3718-014-032-0000 94 14 32 527-.533 4th StSorianoa RealEstate 3,46412,7001 Yes Yes Yes Yes No Yea Yes storefront. $117,096.001 $43.36 I -- Built in 1921 Evergreert Trophy 2-stery, Tear Down. Re4ail on 1st floor and vacant space on 2nd Ilr. Exterior is concrete tile w/exposed 3718-014.035-0007 96 14 35 547 4th St. Dawkina Morris 3,049 7,98~ 3.09(: Yes Yes Yes Yes No Yes Yes aggregat? storefront. $399,299.00$50.03 Page 3 ~4k,~ uc i~r F~. ~erdak, Phiia~lphia CaSa Aura Aul~a Begum C~e C~ C~ch Repub~c Ge~v Hon~ Kon~ Hu~' Indone*h M~co The Ne~eria~ New ~ Norm l~d P~pp~es Po~d Repub~c of l~l~d Sco~d Singa~re South ~cz Spmn ~nd Turkey Vie~m Exhibit D Mr. Randy McCn'eal Commercial Group P.O. Box 10145 Bainbridge Is. WA 981 l0 Re: Tacoma Place Shopping Center Investment Opportunity Dear: Mr. McGreal: Enclosed is an offering brochure on Tacoma Place, a retail investment opportunity. Place is a HomeBase, Gart Sports anchored retail center located on the 72"d Street interchange of Interstate 5 in Tacoma, Washington. Tacoma HomeBase had 1998 sales of $1.47 billion and has a stock holder's equity of $359 million. Gart Sports/Sportmart is the second largest sporting goods retailer in the U.S. with combined 1997 sales of $700 million. Other national and regional tenants include: Radio Shack, Taco Bell, Starbucks, Applebee's, Olive Garden, Dairy Queen, Red Lobster, Zoopa and Shah's. The property has tremendous Interstate 5 visibility, with over 1,600 lineal feet of frontage and 1-5 traffic counts of 172,000 cars per day. It has a history of very high occupancy and is currently 100% leased. The offering price is $27,500,000, a 9% capitalization rate. The property has a long term loan in place of approximately $19,500,000 at 7.99% interest, 30 year amortization, providing a cash-on-cash return of 9.5%. The loan is pre-payable for the all-cash buyer. Tacoma Place is a 100% leased, highly visible shopping center located at one of the major I-5 interchanges in the Puget Sound region. It offers the investor a strong yield in a captive, stable market. Please call me if you would like further information on this excellent investment opportunity. Sincerely, Paul Sleeth COLLIERS MACAULAY NICOLLS I~Nq-EtLNATIONAL r,". t x. ION STREET. >r ITE 5~(,7 · 5E.*,~!'LE. ~% ~-.': ?H~NE: (206) 223-0866' FAX: (2Ct,) 2231427 RETAIL INVESTMENT OPPORTUNITY Located on a major I-5 interchange (172, 600 cars per day) Tacoma Place has tremendous visibilirp with over 1,600 lineal feet of j~eeway j%nrage an~[ bene?rs jarom i~s surroundi.g dense population. Buil; i. 1988, this 231,686 square foot center is 100%/eased aha' historically we~/occz~pied. EXCLUSIVE SALES AGENT Paul $/eerh (206) 223-0866 CMN inc. Street, Suite 5300 gton 9810 l www. colliers.com Exhibit E List of firms interested in Sinclair Landing A~il 19, 1999 Hotel Group Reebok Greg Norman Shop Rockport Van's Shoes Kinde~are ESPN Zone Co Ho Caf~ Half Price Books Dick ClarKs American Bandstand Dave & Busters Fraiche Cup Starlight Cinemas Edwards Theatres Circuit Mel's Drive-in Pyramid Breweries Anthony's Restaurants History Channel Rocky Mountain Chocolate Factory Johnny Rockets Crunch Fitness Blockbuster Cole-Haan Movado Woolrich Nike Springmaid/Wamsutta Walgreens Rite Aid Bartels Associated Grocers Albertson's Brooks Brothers Eddie Bauer The Gap Bugle Bay Big Dog Nautica Nine West Group Exhibit F List of firms interested in providing financing for Sinclair Landing A~i119, 1999 CIBC Oppenheimer Credit Suisse First Boston Bank of America U, S, Bancorp Wells Fargo GMAC Commercial Mortgage Key Bank GE Capital Real Estate Center Financial Carpenter's Union Operating Engineer's Union lNG Bafings R. K, Gelly Company Discovery Themed Entertainment Entertainment Property Trusts EquityNet Starwood Capital KITSAP TRANSIT April 21, 1999 Mayor Lynn Horton and Bremerton City Council City of Bremerton 239 4t~ Street Bremerton, WA 98310 Re: Sinclair Landing Planned Unit Development (PUD) extension request Dear Ladies and Gentlemen, Kitsap Transit, after considerable discussion with city attorneys and planning staff, is withdrawing its request for the transfer of the Commuter Retail Building (CRB) rights to the Kitsap Transit element of the PUD. The key issue in our minds was the shoreline permit, which we have already obtained and which we would not lose with the loss of the PUD. Instead, the parties to the Master Developer Agreement (MDA), including Kitsap Transit, the City, The Commercial Group (TCG), Washington State Ferries and the Port of Bremerton, will re-negotiate a carry-on agreement comprised of what is left of the MDA after the loss of the PUD plus a few related side issues necessary to accomplish the permitting and construction of the CRB. 'The focus of the continuation agreement will be on the CRB, which Kitsap Transit believes the developer, TCG, still has the right and capabilities to accomplish. However, to go forward with the CRB, the development team; TCG and its members, would have to supply hold harmless agreements on all previous issues. In discussion of the CRB to this point, it has been identified by all parties that the critical need is long-term parking, which cannot be provided in Kitsap Transit's HOV garage because of commitments, in grants received to construct it, to retain that facility for transit usage. Resolution of the long-term parking issue will therefore probably require purchase by the developer of some additional portion of the city's parking lot. This provides an opportunity for all parties to work together to develop a Kiss 2q Ride facility at the same time. A Kiss 2q Ride facility would be a shared responsibility but would meet the terms of another agreement between Kitsap Transit and the City of Bremerton to develop such a facility prior to completion of the overall project. It is Kitsap Transit's expectations that these discussions would be able to proceed expeditiously, once they do not have the cloud of the PUD over them. Richard M. Hayes Executive Director 234 South Wycoff Brernerton, Washington 98312-4199 Phone: (360) 479-6962 FAX: (360) $77-7086 Webs/to: www. kitsaptransit, org Memorandum CC: F rom: Date: Re: Bremerton City Council Mayor Lynn Horton Glenna Malanca, City Attorney 04/19/99 The Commercial Group PUD Extension Application and Master Development Agreement Appearance of Fairness Doctrine Considerations A public hearing is scheduled for Wednesday night, April 21, on The Commercial Group request for an extension of the Sinclair Landing PUD. The Council's role at the public hearing is to determine whether a one-time one-year extension of the Preliminary PUD should be granted to The Commercial Group. Under BMC 21.02.520, the Council may approve the request for an extension if the applicant shows that progress is being made and that it is very likely that the Final Plan will be submitted within the extended time period. Wednesday's hearing is a quasi-judicial proceeding which is subject to Chapter 42.36 RCW. he Appearance of Fairness Doctrine. Issues relevant to the requested extension have been the subiect or' numerous discussions, media coverage, staff input and documents generated by both proponents and opponents of the requested extension. Most of the Ex-parte communication has been necessitated by the common issues between the PUD status and compliance requirements of the parties' Master Development Agreement executed effective March 18, 1998. The Appearance of Fairness Doctrine requires the substance of any Ex-pane communications wSth proponents or opponents to be disclosed by a public announcement of the content of the communication. Additionally the opponent's and proponent's right to rebut the substance of the communication should be announced prior to the public hearing. Anyone attempting to disquaii~.' a Council Member must object prior to the decision of the Council. RCW 42.36.090 also provides that even upon objection by a part5.', enough council members to constitute a quorum shall be allo~¥ed to vote upon full disclosure of the basis of disqualification. This provision is known as the Doctrine of Necessity. The most important step to take at this juncture is appropriate disclosure and announcement at r_he commencement of the public hearing at the Wednesday Council Meeting. Attached is a proposed announcement for each Council Member to tailor to their circumstances. My direct line is 415-5497 if you have any questions or need help with your announcement. To: Glenna Malanca From: Knute Rife Re:' Commercial Group PUD Date: 19 April 1999 Wednesday evening the Commercial Group's portion of the Sinclair Landing PUD expires unless the Council grants an extension. There is a proposal to grant an extension, not in favor of the Commercial Group, but in favor of the City. We have no authority to do this. A PUD preliminary plan is arises from a particular application and is approved for a particular applicant. BMC 21.02.380 and 410. The preliminary plan is a development ri~mht held by that applicant. BMC 21.02.520(a). The applicant is then obligated to file a final plan within two years, or the preliminary plan expires. Id. The Council may approve a one-time, one-year extension of the preliminary plan upon a showing by the applicant that it has made profess under the preliminary plan and that it is very likely a final plan will be submitted within the extension period. In the present matter, Commercial Group is the applicant. Commercial Group owns the development right and must apply for any extension, which it has done. Commercial Group must make the twin showing of progress and likelihood. This means that Commercial Grouo must have made progress and that Commercial Group has demonstrated likelihood, which would essentially require that either Commercial Group or an entity under Commercial Group's control would be filing a preliminary plan. If Commercial Group makes its case, it may receive an extension; if not, then not. An applicant holds the fights under a preliminary plan. An applicant may apply for an extension of those rights, and if the applicant makes a case, the applicant may receive an extension. An applicant may assign its rights, but the assignee would then be the applicant. There is no provision for extending a PUD for the benefit of any party other than an applicant. Knute Rife Assistant City Attorney PUBLIC ANNOUNCEM]ENT As required by RCW 42.36.090, I am placing on the record of this public hearing the substance of written and oral communications concerning the decision of action before us tonight. Because of the City Councils' responsibilities relating to the Master Development Agreement executed by The Commercial Group and the Ci~ of Bremerton, and others, effective March 18, 1998, I have read materials provided by City staff and The Commercial Group. Some of these materials that related to progress under the Master Devel6pment Agreement also are relevant to the matter before us tonight. There have been various City Council open meetings during which issues relevant to tonight's proceeding have been disclosed and discussed. Quotes from all parties have been contained in newspaper articles over the past year. Study sessions and meetings with the Mayor and small numbers of Council Members have occurred in furtherance of responding to Master Development Agreement administration. Alternative development possibilities have been discussed due to issues related to the Master Development Agreement. All communications referenced and detailed in this announcement have limited relevance to the decision before the Council tonight due to the then unknown nature of the verification and documentation that would be provided by The Commercial Group in support of its application for an extension. That information is contained in the record before us tonight. Anyone may rebut, during the course of the public hearing, the substance of any and all communications disclosed by this announcement and specific disclosures of each Council Member. Does any Council Member have a further disclosure in addition to the communications I have announced? Date: April 21, 1999 To: City Council From: Phil Berry, Director of Community and Economic Development Subject: Time Extension for Preliminary PUD 96-0002, The Commercial Group Background: Section 21.02.520(a) allows the City Council to extend a preliminary approval on a planned unit development (PUD) for a period of one year upon a showing by the applicant that progress is being made and that it is likely that a Final Plan will be submitted within the extended time period. The CommerCial Group made a request for a time extension on the Preliminary PUD 96-0002. On March 24, 1999, the City Council opened the public hearing to consider extension and concurred with the staffrecommendafion to continue the matter until April 21, 1999 to allow The Commercial Group the opportunity to address the issues raised in the March 24 staff report (see Attachment A). Analysis: At the time of the writing of this report, The Commercial Group has not submitted any information or analysis to address the issues raised in the March 26 staff report. The organization did submit a letter dated April 9, 1999 (see Attachment B). In that letter, they argue that based on Condition 19 of the Preliminary PUD approval, the Final PUD can be submitted by the end of 1999. Further, they contend that the Council has within its authority to extend the filing time for the Sinclair Landing PUD fi.om March 26, 1999 to the end of 1999 as an integral part of its initial approval. In its letter, they cite a passage fi.om the March 24 staff report to confirm the Final PUD submittal date. The staffreport reference to the Final PUD approval cited in the letter was in context of determining at what date the City Council could extend the Preliminary PUD approval if the extension was granted. However, Section 21.02.520 (a) states in part: "Within a maximum of two (2) years following City Council approval of a Preliminary Plan, the applicant shall file a Final Plan for all or part (if phased) of the Planned Unit Development. If the Final Plan is not filed within two years (from Preliminary PUD approval), the right to proceed under the Preliminary Plan shall expire." Based on this requirement, the City Council does not have the discretion to extend the approval of the Preliminary Plan to the end of 1999. Since the original Preliminary PUD approval was on March 27, 1997, the applicant must obtain a time extension on the Preliminary Plan approval to preserve the permit. Recommendation: Staff recommends that the City Council deny the time extension request since the applicant failed to show, based on the criteria identified in the March 24 staff report, that progress being made and that it is very likely that the Final Plan would be submitted within the extended time period. JON HOLAN Date: April 21, 1999 To: City Council From: Phil Berry, Director of Community and Economic Development Subject: Time Extension for Preliminary PUD 96-0002, The Commercial Group Background: Section 21.02.520(a) allows the City Council to extend a preliminmy approval on a planned unit development (PUD) for a period of one year upon a showing by the applicant that progress is being made and that it is likely that a Final Plan will be submitted within the extended time period. The Commercial Group made a request for a time extension on the Preliminary PUD 96-0002. On March 24, 1999, the City Council opened the public hearing to consider extension and concurred with the staff recommendation to continue the matter until April 21, 1999 to allow The Commercial Group the opportunity to address the issues raised in the March 24 staff report (see Attachment A). Analysis: At the time of the writing of this report, The Commercial Group has not submitted any information or analysis to address the issues raised in the March 26 staff report. The organization did submit a letter dated April 9, 1999 (see Attachment B). In that letter, they argue that based on Condition 19 of the Preliminary PUD approval, the Final PUD can be submitted by the end of 1999. Further, they contend that the Council has within its authority to extend the filing time for the Sinclair Landing PUD fi.om March 26, 1999 to the end of 1999 as an integral part of its initial approval. In its letter, they cite a passage from the March 24 staff report to confirm the Final PUD submittal date. The staff report reference to the Final PUD approval cited in the letter was in context of determining at what date the City Council could extend the Preliminary PUD approval if the extension was granted. However, Section 21.02.520 (a) states in part: "Within a maximum of two (2) years following City Council approval of a Preliminary Plan, the applicant shall file a Final Plan for all or part (if phased) of the Planned Unit Development. If the Final Plan is not filed within two years (from Preliminary PUD approval), the right to proceed under the Preliminary Plan shall expire." Based on this requirement, the City Council does not have the discretion to extend the approval of the Preliminary Plan to the end of 1999. Since the original Preliminary PUD approval was on March 27, 1997, the applicant must obtain a time extension on the Preliminary Plan approval to preserve the permit. Recommendation: Staff recommends that the City Council deny the time extension request since the applicant failed to show, based on the criteria identified in the March 24 staff report, that progress being made and that it is very likely that the Final Plan would be submitted within the extended time period. JON HOLAN Dat~: Bremerton City Council Mayor Lynn Horton Glenna Malanca, City Attorn 04/19/99 The Commercial Group PUD Extension Application and Master Development Agreement Appearance of Fairness Doctrine Considerations A public hearing is scheduled for Wednesday night, April 21, on The Commercial Group request for an extension of the Sinclair Landing PUD. The Council's role at the public hearing is to determine whether a one-time one-year extension of the Preliminary PUD should be granted to The Commercial Group. Under BMC 21.02.520, the Council may approve the request for an extension if the applicant shows that progress is being made and that it is very likely that the Final Plan will be submitted within the extended time period. Wednesday's hearing is a quasi-judicial proceeding which is subject to Chapter 42.36 RCW, the Appearance of Fairness Doctrine. Issues relevant to the requested extension have been the subject of numerous discussions, media coverage, staff input and documents generated by both proponents and opponents of the requested extension. Most of the Ex-parte communication has been necessitated by the common issues between the PUD status and compliance requirements of the parties' Master Development Agreement executed effective March 18, 1998. The Appearance of Fairness Doctrine requires the substance of any Ex-parte communications with proponents or opponents to be disclosed by a public announcement of the content of the communication. Additionally the opponent's and proponent's right to rebut the substance of the communication should be announced prior to the public hearing. Anyone attempting to disqualify a Council Member must object prior to the decision of the Council. RCW 42.36.090 also provides that even upon objection by a party, enough council members to constitute a quorum shall be allowed to vote upon full disclosure of the basis of disqualification. This provision is known as the Doctrine of Necessity. The most important step to take at this juncture is appropriate disclosure and announcement at the commencement of the public heating at the Wednesday Council Meeting. Attached is a proposed announcement for each Council Member to tailor to their circumstances. My direct line is 415-5497 if you have any questions or need help with your announcement. To: Glenna Malanca From: Knute Rife Re: Commercial Group PUD Date: 19 April 1999 Wednesday evening the Commercial Group's portion of the Sinclair Landing PUD expires unless the Council grants an extension. There is a proposal to grant an extension, not in favor of the Commercial Group, but in favor of the City. We have no authority to do this. A PUD preliminary plan is arises from a particular application and is approved for a particular applicant. BMC 21.02.380 and 410. The preliminary plan is a development right held by that applicant. BMC 21.02.520(a). The applicant is then obligated to file a final plan within two years, or the preliminary plan expires. Id. The Council may approve a one-time, one-year extension of the preliminary plan upon a showing by the applicant that it has made progress under the preliminary plan and that it is very likely a final plan will be submitted within the extension period. Id. In the present matter, Commercial Group is the applicant. Commercial Group owns the development right and must apply for any extension, which it has done. Commercial Group must make the twin showing of progress and likelihood. This means that Commercial Group must have made progress and that Commercial Group has demonstrated likelihood, which would essentially require that either Commercial Group or an entity under Commercial Group's control would be filing a preliminary plan. If Commercial Group makes its case, it may receive an extension; if not, then not. An applicant holds the rights under a preliminary plan. An applicant may apply for an extension of those rights, and if the applicant makes a case, the applicant may receive an extension. An applicant may assign its rights, but the assignee would then be the applicant. There is no provision for extending a PUD for the benefit of any party other than an applicant. Knute Rife Assistant City Attorney PUBLIC ANNOUNCEMENT As required by RCW 42.36.090, I am placing on the record of this public heating the substance of written and oral communications concerning the decision of action before us tonight. Because of the City Councils' responsibilities relating to the Master Development Agreement executed by The Commercial Group and the City of Bremerton, and others, effective March 18, 1998, I have read materials provided by City staff and The Commercial Group. Some of these materials that related to progress under the Master Development Agreement also are relevant to the matter before us tonight. There have been various City Council open meetings during which issues relevant to tonight's proceeding have been disclosed and discussed. Quotes from all parties have been contained in newspaper articles over the past year. Study sessions and meetings with the Mayor and small numbers of Council Members have occurred in furtherance of responding to Master Development Agreement administration. Alternative development possibilities have been discussed due to issues related to the Master Development Agreement. All communications referenced and detailed in this announcement have limited relevance to the decision before the Council tonight due to the then unknown nature of the verification and documentation that would be provided by The Commercial Group in support of its application for an extension. That information is contained in the record before us tonight. Anyone may rebut, during the course of the public hearing, the substance of any and all communications disclosed by this announcement and specific disclosures of each Council Member. Does any Council Member have a further disclosure in addition to the communications I have announced?