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HomeMy WebLinkAboutExhibit 56-7 - Att F - City of Poulsbo_HE DecisionBEFORE THE HEARING EXAMINER FOR THE CITY OF POULSBO FINDINGS, CONCLUSIONS AND DECISION APPROVING “WESTRY VILLAGE” UNIT LOT SUBDIVISION APPLICATION APPLICANT/OWNER: JIM C. LAUGHLIN, LAUGHLIN DEVELOPMENT, LLC, BAINBRIDGE ISLAND, WA LOCATION/TAX PARCEL NUMBER: THE PROPOSED UNIT LOT SUBDIVISION WILL BE LOCATED ON APPROXIMATELY 7.69-ACRES IN THE NORTHWEST PORTION OF THE POULSBO CITY LIMITS, A VACANT PORTION OF THE PREVIOUSLY-APPROVED OLHAVA MASTER PLAN AREA, AKA THE COLLEGE MARKETPLACE DEVELOPMENT. THE PROJECT IS LOCATED WITHIN A SINGLE TAX PARCEL, NUMBERED 102601-2-066-2000, SOUTH OF RELIANCE STREET, WITH NO ASSIGNED ADDRESS AS OF THIS DATE. APPLICATION: UNIT LOT SUBDIVISION OF THE 7.69-ACRE SITE INTO 66 LOTS AND 10 TRACTS, TO ALLOW FOR FEE-SIMPLE OWNERSHIP OF LOTS WITHIN THE PROJECT. THIS APPLICATION WILL NOT MODIFY LOT CONFIGURATION AND OTHER KEY ASPECTS OF THE PREVIOUSLY-APPROVED 66-UNIT WESTRY VILLAGE TOWNHOME APARTMENTS SITE PLAN APPROVAL ISSUED IN AUGUST OF 2022 UNDER FILE NO. P- 12-22-21-01. THE APPROVED SITE PLAN INCLUDES TWO PARKING SPACES DEDICATED TO EACH UNIT AND 17 GUEST PARKING SPACES, 5 RECREATIONAL AMENITIES (GAZEBO WITH MULTI-FAMILY BAR-B-QUE AREA, COURTYARD WITH BENCHES ALONG TRAIL CONNECTION, BENCHES ALONG SIDEWALKS IN OPEN SPACE TRACTS, PICNIC AREA, PROFESSIONAL OUTDOOR EXERCISE CIRCUIT ALONG PRIVATE TRAIL LOCATED IN OPEN SPACES, AND PUBLIC TRAIL LOCATED WITHIN THE REQUIRED BUFFER AT THE WEST PROPERTY LINE), AND 31% SITE LANDSCAPING. THE PROPOSAL RETAINS TREE BUFFER ALONG WEST PROPERTY EDGE AND PROVIDES STORMWATER TO EXISTING POND LOCATED ADJACENT TO SITE. THIS IS THE FIRST UNIT LOT SUBDIVISION APPLICATION REVIEWED BY THE CITY’S HEARING EXAMINER UNDER THE CITY’S UNIT LOT SUBDIVISION REGULATIONS, APPROVED BY ORDINANCE NO. 2024-03 IN MARCH OF 2024, REFERENCED AS CHAPTER 17.65 OF THE CITY’S MUNICIPAL CODE. SUMMARY OF DECISION: APPROVED, SUBJECT TO CONDITIONS DATE OF DECISION: JANUARY 27, 2025 CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 2 of 18 I. CONTENTS OF RECORD Exhibits entered into evidence as part of the record, and an audio recording of the public hearing, are maintained by the City of Poulsbo, in accord with applicable law. Exhibits: City of Poulsbo “Staff Report” and recommendation (of APPROVAL), dated November 5, 2024, provided to the Hearing Examiner before the public hearing regarding the Westry Village Unit Lot Subdivision, including one Addendum to the Staff Report, dated November 25, with attachments. For the reader’s convenience, the following chart, prepared by Staff lists most, if not all, Exhibits entered into the record for this matter: Exhibit Description Staff Report Exhibit 1 Westry Village Unit Lot Subdivision Staff Report, dated April 2, 2024 Application A 2 Unit Lot Subdivision Application A1 3 Technical Memorandum – Response to Suquamish Tribe comments A2 4 Proposed Unit Lot Subdivision Drawing B1 5 Approved Westry Village Townhome Site Plan Review (Site Plan Review Exhibits are not included) C 6 Approved Site Plan Phasing Plan (Reviewed with Tree Cutting & Clearing and Grading Permit Reviews) D 7 Tree Risk Assessment (Reviewed with Tree Cutting & Clearing and Grading Permit Reviews) E 8 Notice of Application and Affidavits F 9 Unit Lot Subdivision SEPA Adopt Existing Environmental Documents and Affidavit G 10 Unit Lot Subdivision Public Comment Letters H 11 Engineering Department Review Memo I 12 Unit Lot Subdivision Interim Ordinance J NEW HEARING EXAMINER EXHIBITS Staff Report Addendum 1, Memorandum from PED Department, dated November 25, 2024 13 Planning Commission minutes. K 14 Planning Commission Findings of Fact, Conclusion and Recommendation L 15 Public Hearing Notice and notice affidavits of mailing, publishing, and posting M CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 3 of 18 Testimony/Comments: The public hearing for this matter occurred on December 11, 2024, in Council Chambers at Poulsbo City Hall, where all witnesses were sworn in by the Examiner and provided testimony under oath, including the following individuals: 1. Edie Berghoff, Senior Planner for the City of Poulsbo, and the primary staff representative at the public hearing, summarized review, how the Unit Lot Subdivision regulations were adopted by city council to allow for fee-simple ownership of lots within the development; how the current application is consistent with the previously-approve site plan already issued for the property; that there were no SEPA comments or any appeal filed under applicable SEPA codes; that there were no substantive comments critical of the proposal, except for one comment that generally preferred no new development or something to that effect; and that the application merits approval, subject to conditions of approval; 2. Michael Bateman, PE, Transportation Engineer, with the City’s Public Works Department, summarized Public Works’ review and key recommended conditions; noted that the proposal does not alter the approved site plan for the property; highlighted how individually-owned lots must be served by individual meters for various utilities, in contrast with how large/consolidated meters are often used for apartment buildings; noted how the garbage service aspects of the subdivision proposal are acceptable, though city codes may need to be updated on such issues; and 3. James Laughlin, the applicant, appeared on his own behalf and accepted the Staff Report analysis and recommended conditions of approval without objection or requests for changes. No other individuals appeared in person or online to offer comments regarding the pending unit lot subdivision application. Throughout the review and hearing process, there was no evidence or testimony provided in this record that would serve as a basis to deny the pending application. As the staff report, applicant and staff testimony at the public hearing explain(ed), conditions of approval and compliance with relevant development regulations are intended to allow for appropriate, well-planned urban development in the zoning district where the proposed project is located. II. APPLICABLE LAW Jurisdiction. There is no dispute that relevant provisions of the Poulsbo Municipal Code and City ordinances expressly provide the hearing examiner with jurisdiction and authority to review most Type III land use matters, which includes a Unit Lot Subdivision application for a site with 5-acres or more. (See PMC Table 19.20.020; and Interim Development Regulations, assigned PMC 17.65.060, though copy shared with Examiner includes manifest error where it reads that applications larger than one acre [instead of five acres] shall be processed as a Type III matter). CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 4 of 18 Criteria for Approval of the pending Unit Lot Subdivision Application. The City’s approval criteria for a Unit Lot Subdivision are found at PMC 17.65.050. As mandated by state law, the provisions of city codes addressing review for this subdivision project are substantially similar to state subdivision mandates found in RCW 58.17.110(2). Burden of Proof. The applicant bears the burden of proof to establish by a preponderance of the evidence that their Unit Lot Subdivision application is consistent with state law, city codes and standards. Rule 3.9, HEx Rules of Procedure. Any decision to approve or deny a Unit Lot Subdivision must be supported by evidence that is substantial when viewed in light of the whole record. See RCW 36.70C.130(1)(c). III. ISSUE PRESENTED Whether a preponderance of evidence demonstrates that the applicant has satisfied their burden of proof to satisfy the criteria for Unit Lot Subdivision approval? Short Answer: Yes, subject to conditions of approval. IV. FINDINGS OF FACT Upon consideration of all the evidence, testimony, codes, policies, regulations, and other information contained in the file, the undersigned Examiner issues the following findings, conclusions and Decision approving the Westry Village Unit Lot Subdivision as set forth below. 1. Any statements in previous or following sections of this document that are deemed findings of fact are hereby adopted as such and incorporated by this reference. 2. The applicant and owner in this matter is James C. Laughlin, and his business entity known as Laughlin Development, LLC, from Bainbridge Island, Washington. (Staff Report, page 5, General Information; Application materials, Ex. 2). 3. The project site is about 7.69-acres, located within a single tax parcel, numbered 102601- 2-066-2000, south of Reliance Street, with no assigned address as of this date. The applicant’s proposed Unit Lot Subdivision is in the northwest corner of the Poulsbo City Limits, a vacant portion of the previously approved Olhava Master Plan Area, aka the College Marketplace development. (Staff Report, page 5). CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 5 of 18 4. In this matter, the applicant seeks the City’s first “Unit Lot Subdivision” approval to divide the 7.69-acre site into 66 lots and 10 tracts, to allow for fee-simple ownership of lots within the project. (Staff Report; Testimony of Ms. Berghoff). 5. This application will not modify lot configuration and other key aspects of the previously approved 66-unit Westry Village Townhome Apartments Site Plan approval issued by the City in August of 2022 under File No. P-12-22-21-01. (Testimony of Ms. Berghoff; Testimony of Mr. Bateman; Staff Report). 6. The previously-approved site plan includes two parking spaces dedicated to each unit and 17 guest parking spaces, 5 recreational amenities (gazebo with multi-family bar-b-que area, courtyard with benches along trail connection, benches along sidewalks in open space tracts, picnic area, professional outdoor exercise circuit along private trail located in open spaces, and public trail located within the required buffer at the west property line), and 31% site landscaping. This subdivision proposal retains tree buffer along west property edge and provides stormwater to existing pond located adjacent to site. (Staff Report, page 5; Testimony of Ms. Berghoff; Westry Village Townhome Apartments Site Plan approval, included in the record as Ex. 5). 7. This is the first Unit Lot Subdivision Application reviewed by the City’s Hearing Examiner under the City’s Unit Lot Subdivision regulations, approved by Ordinance No. 2024-03 in March of 2024, referenced as Chapter 17.65 of the City’s municipal code. As with all projects brought forward for the first time under new or amended codes, the Examiner undertook thorough research and review to ensure compliance with controlling state statutes or caselaw. 8. While the record does not include any fact-specific opposition to the current proposal, one comment generally opposed all new development, in the form of an email that reads: “My public input regarding this request is NO MORE DEVELOPMENTS.” (Ex. 10, public comments received). 9. The time to pursue a challenge of the City’s ordinance adopting the Unit Lot Subdivision regulations that apply to the current application – which expressly allows for a development of the sort described in the application materials – has long since passed. Individuals who wish to challenge development regulations adopted by a City Council can submit a petition for review of such codes to the Growth Management Hearings Board within 60-days after publication of an ordinance that adopts new or modified development regulations. (See RCW 36.70A.280(1)(a) and 36.70A.290(2)). 10. There is no dispute that applications for Unit Lot Subdivisions larger than 5-acres, like this proposal with over 7-acres, are subject to review and approval by the City’s Hearing Examiner as a Type III land use decision. (See Ex. J, Ord. No. 2024-03, Ord. Ex. A, at new language assigned CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 6 of 18 PMC 17.65.060 and changes to PMC Table 19.20.020, adding Unit Lot Subdivisions with 5-acres or more as Type III matters). 11. Like standard applications for Preliminary Plat approval, all Unit Lot Subdivision applications are reviewed under applicable city codes, including without limitation zoning provisions in Title 18 PMC. (See Decision Criteria for Unit Lot Subdivisions at PMC 17.65.050(2)). 12. For this matter, the Staff Report and Staff witnesses credibly explained that the applicant’s proposed Unit Lot Subdivision is simply ‘overlayed’ onto a previously approved site plan that was reviewed and issued by the City as a Type II matter for the exact same property, with the site plan approval decision issued for this project expressly including a detailed zoning code analysis. (See Ex. 5, Site Plan Approval, Zoning code compliance analysis and discussion found on pages 10- 21). So, the question of whether the pending application is consistent with applicable city zoning codes has already been addressed, through approval of the Type II site plan, which was never appealed as it could have been under applicable city codes. (See PMC 19.20.020, and Table included in such section, listing Site Plan review as a Type II decision that is subject to appeal before the Hearing Examiner; Staff Report, on page 8, noting no appeal of site plan). The Director’s decision to approve the site plan that forms the basis for all zoning related issues included in the current Unit Lot Subdivision application stands unchallenged for purposes of considering this subdivision and finding that it complies with applicable zoning regulations, including those addressed in the Olhava Master Plan that applies to the project site and most surrounding properties. 13. For instance, the Site Plan approval provides an analysis and finding that with 66 residential units, the proposal satisfies applicable Minimum and Maximum Density calculations that apply to projects in the Residential Medium (RM) zone. For this site the Minimum density would be 42, and the maximum density would be 77. 66 lots fall within the acceptable density range for the project site. (See density calculations on page 11 of the Site Plan Approval, included as part of Ex. 5). 14. The Staff Report provides a credible and unrebutted summary of relevant events and legal instruments of significance to the project site, including without limitation annexation into the City of Poulsbo in 1994, the Olhava Master Plan that applies to the area, the approved site plan addressed above, and the interim zoning ordinance that has been used for purposes of reviewing this pending Unit Lot Subdivision application. (Staff Report, pages 5 and 6). 15. The parcel where the subdivision is to occur is rectangular in shape, with a regional stormwater pond on a separate parcel encircled by the south perimeter of the site. An aerial photo of the project site is found on page 6 of the Staff Report and is republished below: CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 7 of 18 16. The lots in the new subdivision will be developed in the north side of the project parcel, the right-hand side of the photo above. 17. The subdivision layout, which will be substantially similar to the overall site plan illustrations found in Ex. 5 (the uncontested Site Plan approval decision), include an overall proposed landscape plan illustration on page 14 that is republished below: 18. A screenshot showing some of the key elements of the applicant’s Phasing Plan for development in the proposed subdivision is provided below: CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 8 of 18 (See Ex. 6, Approved Site Plan Phasing Plan). 19. The unrebutted Staff Report and sworn testimony from Ms. Berghoff establish that the application review process included public notices, consideration of comments, review of relevant environmental documentation, Planning Commission consideration and a recommendation of approval, all in accord with relevant City codes and policies. (Staff Report, page 12; Staff Report Addendum, with attached Planning Commission minutes, Findings and Recommendation of Approval; Ex. 15, public hearing notices and confirmation materials; Testimony of Ms. Berghoff). 20. As part of the review process for the pending Unit Lot Subdivision, the City’s SEPA responsible official considered the application materials and relevant environmental documents prepared for previous land use reviews and approvals on the same project site. Following her review of relevant information and applicable SEPA regulations, the responsible official issued a SEPA determination captioned as “ADOPTION OF EXISTING ENVIRONMENTAL DOCUMENT”. (Ex. 9, SEPA Threshold determination, adoption of existing document, dated October 30, 2024). The determination adopted the Notice of Decision and SEPA Determination of Non-Significance (DNS)) issued in 2022 for the Westry Village project site plan, included in Planning File No. P-12-22-21-01, and explained that in the site plan approval, the Olhava Final CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 9 of 18 Environmental Impact Statement was incorporated by reference and mitigation measures found in the FEIS that pertain to the site, if any, were required as part of the site plan approval. 21. The SEPA notice explained the applicable comment period expressly provided: “APPEAL: Any agency or person may appeal this SEPA determination by filing a written appeal to the responsible official no later than 10 working days from the date of this notice. Contact the responsible official to read or ask about the procedure for SEPA appeals.” (Ex. 9, last page). No one appealed the City’s SEPA threshold determination issued for this subdivision, so it stands as issued for purposes of issuing this Decision. 22. By operation of WAC 197-11-545 (re: Effect of no comment), if a consulted agency does not respond with written comments within the time periods for commenting on environmental documents, the lead agency may assume that the consulted agency has no information relating to the potential impact of the proposal as it relates to the consulted agency's jurisdiction or special expertise; further, lack of comment by other agencies or members of the public on environmental documents within the applicable time period shall be construed as lack of objection to the city’s environmental analysis. The record establishes that the no one submitted timely comments regarding the City’s adoption of existing environmental documents. 23. A copy of the Staff Report and a Notice of Public Meeting was issued at least 7 days prior to a Poulsbo Planning Commission meeting that occurred on November 12, 2024. Following their meeting, the Planning Commission voted to recommend approval of the pending Unit Lot Subdivision project, subject to conditions of approval recommended in the Staff Report. (See Staff Report, Addendum, dated Nov. 25, 2024, and Exhibits K, L, and M, aka Exs. 13, 14, 15). 24. Soon thereafter, but right before the Holiday Season, on December 11, 2024, the undersigned Hearing Examiner conducted a public hearing regarding this Unit Lot Subdivision application, with the Examiner, applicant representatives, project-review staff, and interested members of the public able to participate in-person at Poulsbo City Hall in the Council chambers, or an online hearing platform coordinated by Staff. (Ex. 15, Notice and confirmation records, for public hearing before the City’s Hearing Examiner). All persons who offered testimony or comments during the hearing were placed under oath. No one appeared to offer testimony or evidence opposing the application. 25. The Planning and Economic Development Department’s Staff Report and Recommendation of Approval, with one Addendum included in the record, shared with the Examiner in the weeks before the hearing, (the “Staff Report”), includes a number of specific findings and conditions that credibly establish how the pending Unit Lot Subdivision application satisfies provisions of applicable law, is consistent with the city’s Comprehensive Plan, and is designed or conditioned to comply with applicable development standards and guidelines. CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 10 of 18 As designed and conditioned, the Westry Village Unit Lot Subdivision application satisfies applicable approval criteria. 26. The Staff Report and Engineering Department Review Memo fully detail how the project is designed or can be conditioned to comply with applicable codes, including without limitation: critical area protections, density, concurrency, tree retention, amenities, stormwater management, utility infrastructure, payment of impact fees, and requirements for projects in the RM zone. (Staff Report; Engineering Dept. Review Memo, Ex. I). 27. State subdivision statutes mandate that appropriate provisions be made for the public health, safety, and general welfare including sidewalks and other planning features that assure safe walking conditions for students who walk to and from school. See RCW 58.17.110(2). The Staff Report explains that the site is served by North Kitsap School District. Vinland Elementary is slightly more than 0.5 mile walking distance when the development is completed. The public path in the west 100’ tree buffer is one school route option. North Kitsap High School and Poulsbo Middle School are located approximately 2.75 miles southwest. School impact fees are required as a condition of Westry Village Townhome Apartments Site Plan Review, Planning File No. P- 12-21-22-01, approved by the PED Director August 4, 2022. (Staff Report, page 11). 28. A preponderance of evidence in the record, including without limitation the summary of relevant reports and analyses provided in the unchallenged Staff Report and Engineering Memo, the Examiner’s site visit to the area, and credible testimony by Staff, fully supports a finding that the proposed subdivision has been designed or can be conditioned to satisfy applicable approval criteria for the proposed Unit Lot Subdivision, including without limitation the state subdivision statute found at RCW 58.17.110(2), and the City’s approval criteria for a Unit Lot Subdivision, adopted by City Ordinance, and referenced as new chapter PMC 17.65.050(A) and (B), as explained in the unrebutted Staff Report and Engineering Memo, and summarized below, with additional findings in italics: PMC 17.65.050. Decision Criteria. A. A proposed unit lot subdivision may be approved only if the following findings are made by the review authority: 1. The proposed unit lot subdivision conforms to the requirements of Title 17 PMC. As reviewed and conditioned, the proposed preliminary subdivision conforms to the requirements of Title 17, Land Division. The City Engineer has reviewed the project for consistency with Chapter 12.02, Construction and Development Standards, Chapter 17.65 Unit Lot Subdivisions, and supports approval of the preliminary plat subject to all conditions of approval. 2. The unit lot subdivision conforms to the site requirements for the zoning district in which the property is located and/or other applicable zoning provisions. CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 11 of 18 The proposed unit lot subdivision is overlayed onto Westry Village Townhome Apartments Site Plan Review, Planning File No. P-12-21-22-01, approved by the PED Director August 4, 2022. The proposed unit lot subdivision conforms to the requirements of Title 18, Zoning, as an overlay on the previously reviewed, conditioned and approved site plan. 3. The unit lot subdivision: a. Makes adequate provision for access and neighborhood circulation. Two access points are provided to Reliance Lane. Access and neighborhood circulation are consistent with Westry Village Townhome Apartments Site Plan Review, Planning File No. P-12-21-22-01, approved by the PED Director August 4, 2022. b. Will be adequately served with water, sewer, storm drainage, and other utilities appropriate to the nature of the unit lot subdivision. The application has made adequate provision for water, sanitary sewer and public utilities and services to ensure that the proposal will not be detrimental to the public health and safety. Water service connection is revised and conditioned consistent with the city’s single-family requirement. The City Engineer has determined there is adequate provision for sanitary sewer and water. Other public utilities including electric and phone are available. Water service connection is revised and conditioned consistent with the city’s single- family requirement which requires water meter provision for each lot. All other utilities are consistent with Westry Village Townhome Apartments Site Plan Review, Planning File No. P-12-21-22-01, approved by the PED Director August 4, 2022. c. Makes adequate provisions for sidewalks and other planning features that provide safe walking conditions for students who walk to and from school. The site is served by North Kitsap School District. Vinland Elementary is slightly more than 0.5 mile walking distance when the development is completed. The public path in the west 100’ tree buffer is one school route option. North Kitsap High School and Poulsbo Middle School are located approximately 2.75 miles southwest. School impact fees are required as a condition of Westry Village Townhome Apartments Site Plan Review, Planning File No. P-12-21-22-01, approved by the PED Director August 4, 2022. d. Makes adequate provisions for critical area protection pursuant to Chapter 16.20. The unit lot subdivision is an overlay and consistent with the Westry Village Townhome Apartments Site Plan Review, Planning File No. P-12-21-22-01, approved by the PED Director August 4, 2022. Also see Section V of the staff report, on page 7, and Exhibit C, aka Ex. 5. e. Makes adequate provisions for fire and emergency access and protection. Poulsbo Fire/District 18 has reviewed the proposal. Fire sprinklers in all structures is required as a condition of the OMP. Provisions for fire and emergency access and CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 12 of 18 protection are fully addressed in the Westry Village Townhome Apartments Site Plan Review, Planning File No. P-12-21-22-01, approved by the PED Director August 4, 2022. f. Serves the public interest and makes appropriate provisions for public health, safety, and welfare. The proposed project has been mitigated and conditioned according to city code and SEPA mitigations, so as not to be detrimental to the public health, safety and welfare of the city and its residents. Compatibility with neighboring properties and adjacent uses has been determined not to require further mitigation. The west 100’ of the property will remain treed with public walking path. Through the SEPA mitigations and conditions of approval, the public health, safety, and welfare have been adequately served. B. If the findings in subsection A of this section [set forth above] have not been met, the review authority shall deny the proposed unit lot subdivision, unless specified conditions have been issued to fully satisfy the criteria. Findings mandated in subsection A are met and satisfied in the application materials and project conditions of project approval, all of which are consistent with the Westry Village Townhome Apartments Site Plan Review, Planning File P-12-21-22-01, approved August 4, 2022. 29. As noted above, the Staff Report and Engineering Review Memo (Ex. 11) include a number of specific findings and proposed conditions that establish how the proposed Unit Lot Subdivision application satisfies provisions of applicable law, is consistent with the city’s Comprehensive Plan, and is designed or can be conditioned to comply with applicable development standards and guidelines. Except as modified in this Decision, all Findings, recommended findings, and statements of fact contained in the Staff Report and its addendum, and those in the Engineering Review Memo (Ex. 11), are incorporated herein by reference as Findings of the undersigned hearing examiner. 30. Based on all evidence, exhibits and testimony in the record, the undersigned Examiner specifically finds that the proposed Westry Village Unit Lot Subdivision, as conditioned below, makes appropriate provision for the considerations detailed in applicable law, and that the public use and interest will be served by the Unit Lot Subdivision and associated improvements. 31. The Conditions of Approval included as part of this Decision are reasonable, consistent with applicable law, supported by the evidence, and capable of accomplishment. V. CONCLUSIONS OF LAW 1. Based on the Findings as summarized above, the undersigned examiner concludes that the proposed Westry Village Unit Lot Subdivision, as conditioned below, conforms to all applicable CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 13 of 18 zoning and land use requirements and appropriately mitigates potential adverse environmental impacts. Upon reaching such findings and conclusions as noted above, the application meets the standards necessary to obtain approval by the City. 2. Any Finding or other statements in previous or following sections of this document that are deemed Conclusions of Law are hereby adopted as such and incorporate herein by reference VI. DECISION Based upon the preceding Findings of Fact and Conclusions of Law, evidence presented through the course of the open record hearing, all materials contained in the contents of the record, and site visits to the affected area, the undersigned Examiner APPROVES the Westry Village Unit Lot Subdivision, Planning File No. P-09-15-24-01, subject to the attached Conditions of Approval. Decision issued: January 27, 2025. Gary N. McLean Hearing Examiner for the City of Poulsbo CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 14 of 18 CONDITIONS OF APPROVAL Westry Village Unit Lot Subdivision File No. P-09-15-24-01 [NOTE: For convenience of the parties, these conditions are generally organized and numbered as they were presented with the Staff Report. The use of captions, numbering, or sections has no substantive effect regarding the full scope or applicability of any condition to various aspects of the project]. General Conditions added by the Examiner. A. Unit Lot Subdivision approval shall be null and void if any condition enumerated herein is not satisfied. B. No construction or site development activities related to the plat may be undertaken until required land-use and engineering approvals become effective, and the City and other regulatory authorities with jurisdiction issue applicable permits. C. The applicant shall comply with all professional report conclusions and recommendations submitted in connection with the Unit Lot Subdivision and engineering reviews, as approved and or amended by the City. D. Applicant shall be responsible for consulting with state and federal agencies, and tribal entities with jurisdiction (if any) for applicable permit or other regulatory requirements. Approval of a Unit Lot Subdivision does not limit the applicant’s responsibility to obtain any required permit, license or approval from a state, federal, or other regulatory body. Any conditions of regulatory agency permits/licenses/approvals shall be considered conditions for this project. E. The final engineering plans and submittals necessary to obtain final approval of the plat shall conform to all applicable provisions of the Poulsbo Municipal Code and the Conditions of Approval herein. Conditions based on those recommended by the Planning and Economic Development Department: P1. Westry Village Unit Lot Subdivision is proposed as an overlay to the Westry Village Townhome Apartments Site Plan Review approved under Planning File No P-12-22-21-01. The unit lot subdivision shall be consistent with conditions found in the site plan review unless stated here in or modifications to the site plan and or unit lot subdivision are approved by the appropriate review authority. P2. Westry Village Unit Lot Subdivision approval does not extend the validity of the Westry Village Townhome Apartments Site Plan Review approved under Planning File No P-12-22-21-01. Westry Village Townhome Apartments Site Plan Review occurred August 4. 2022 and expires August 4, 2027. PED Director may extend Site Plan Review approval up to but not exceeding one year with a timely request CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 15 of 18 pursuant to PMC 18.270.080.B. P3. Site phasing shall be as approved with Tree Cutting & Clearing and Grading permits reviewed for Westry Village Townhome Apartments Site Plan Review approved under Planning File No P-12-22-21-01 or may be modified with approval of, at a minimum, PED Director and City Engineer. P4. Before a unit lot subdivision can be recorded, all foundations, including common wall foundations, shall be installed, and located on the face of the unit lot by the land surveyor of record. The proposed unit lot must be consistent with the approved building permit application in order to record with Kitsap County. P5. Portions of the parent site not subdivided for individual unit lots shall be owned in common by the owners of the individual unit lots, or by a homeowners’ association comprised of the owners of the individual unit lots located within the parent lot. P6. An OMP required public trail easement within the 100-foot buffer at the west property line, as approved with Westry Village Townhome Apartments Site Plan Review approved under Planning File No P-12-22-21-01, shall be shown on the recorded unit lot subdivision prior to certificate of occupancy of the third multiunit building. P7. The fact that the unit lot is not a separate buildable lot and that additional development of the individual unit lots may be limited as a result of the application of development standards to the parent lot shall be noted on the plat, as recorded with the Kitsap County recorder. P8. The unit lot final subdivision drawing(s) shall contain the following additional notes: 1. The title of the plat shall include the phrase “Unit Lot Subdivision”; 2. The individual unit lots are not separate buildable sites. Additional development of the individual unit lots may be limited as a result of the application of development standards to the parent lot; 3. Approval of the design and layout of the development was granted by the review of the development, as a whole, on the parent lot; 4. Subsequent platting actions, additions, or modifications to any buildings may not create a nonconformity of the parent lot; and 5. If a structure or portion of a structure has been damaged or destroyed, any repair, reconstruction or replacement of the structure(s) shall conform to the approved site development plan. P9. Subdivision of zero-lot-line developments shall provide a five-foot-wide building maintenance easement on adjacent lots for external walls, eaves, chimneys, and other architectural features that rest directly on or within four feet of the lot line. The maintenance easement shall be shown on the face of the plat. P10. A final copy of the unit lots covenants, conditions and restrictions (CCRs) shall be submitted to the city for review and approval prior to unit lot recording. The CCRs are subject to review and approval of the PED Department and City Attorney to ascertain if the documents are sufficient to assure compliance with the Conditions of Approval and SEPA Mitigations. Language shall also be included in the CCRs which requires notification to the City of Poulsbo PED Director of any amendments to the CCRs, and that the CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 16 of 18 City shall have the authority to object to any modification that is inconsistent with any condition lawfully placed upon the subdivision by the City of Poulsbo. Revisions to CCRs made with subsequent unit lot divisions shall also be submitted to the city for review and approval prior to recording of subsequent division. P11. Recreation vehicles, watercraft and utility trailers storage facilities are required for developments with 12 or more residential units or the development’s CCRs shall prohibit locating vehicles on the street. P12. CCRs shall include provisions of how the HOA will manage, maintain, and enforce all tree retention/west buffer. The CCRs shall outline, in detail, the roles and responsibilities of the HOA, individual property owners, and the City of Poulsbo. This shall include roles and responsibilities for removal of danger trees, replanting and any associated costs. Periodic assessment of retention trees health and risk potential must be included in CCRs. P13. CCRs shall include provisions of how the HOA will manage street tree maintenance, including irrigation. P14. A final draft of covenants, conditions and restrictions (CCRs) shall include provisions that the project’s homeowners’ association will own, maintain and enforce all open space tracts, perimeter buffers, fences, recreational amenities, private roads, parking bays, and all other applicable project condition(s) regarding ownership, maintenance and enforcement of all commonly owned elements. Further, the face of the final plat or final development plan shall include statement(s) that the project’s homeowners’ association will own, maintain and enforce all open space tracts, perimeter buffers, fences, recreational amenities, private roads, parking bays, and all other commonly owned elements. The city will not join the homeowners’ association as enforcers of the project’s CCRs. P15. A final draft of the project’s CCRs and face of the final plat or final development plan shall include the following statement: Open space areas not proposed to be improved with recreational amenities or purposes shall remain as natural vegetation or appropriately landscaped. Removal of preserved and approved open space in natural vegetation shall only be permitted for public safety reasons and upon review and approval of the Planning Director and City Arborist. Enhancement of critical area buffer vegetation shall be as allowed and prescribed in PMC 16.20, Critical Areas. P16. A unit lot subdivision does not become effective until all documents are recorded with the Kitsap County auditor. The applicant shall be responsible for submitting all final documents for recording to the city. Recording fees shall be the responsibility of the applicant. P17. The unit lot subdivision is valid until the site plan approval issued under Planning File No P-12- 22-21-01 expires or is no longer in effect. Conditions based on those recommended by the Engineering Department: E1. The Engineering department has reviewed the unit lot application and underlying approved Westry Apartments permit Planning File No. P-12-21-22-01 with regard to this unit lot application, and finds that previously approved project consistent with this application with the exception of the following conditions of approval which are edited. CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 17 of 18 E20. Water and Sewer connection fees are calculated based upon Equivalent Residential Units (ERUs) per PMC 13.70. These will be collected proportionally with each building permit according to the code in place at the time of the permit. The proposed project has 66 units. Anticipate upcoming code changes which may change the ERU adjustment factor in PMC 13.70.040 to accommodate unit lot subdivision. Per PMC 13.70 the adjustment factor as of the date of this memo is 0.80 resulting in 53 ERUs for the project. E21. A separate water meter is required for each of the proposed individually owned units. E29. The applicant has submitted a traffic impact analysis. This project is within the Olhava Master Plan area and the Schedule B of the Developers Agreement allocates trips to the subject site. Based on the TIA and analysis provided the site is exceeding Schedule B and is subject to Traffic Impact Fees per PMC 3.86. With unit lot subdivision the land use conde (LUC) applicable for the project will change from LUC 220 – Multifamily Housing (low-rise) Not Close to Rail Transit with a trip generation rate of 6.74ADT/unit to LUC 215 – Single Family Attached with a trip generation rate of 7.20ADT/unit. Based on the submitted TIA analysis using the new trip generation rate the project will be subject to traffic impact fees for 163 average daily trips (ADT) or at $564/trip a total of $91,932 in addition to those imposed under Schedule B ($9,505.65 for 66 units). PW7. Locate meters in a single bank when possible. Meters for each unit as shown on the revised site plan drawings submitted to the Engineering Department dated August 7, 2024 is acceptable. E2. Root barriers will be required around landscaping trees adjacent to public utilities such as water meters/fire hydrants/water services. They are recommended for trees adjacent to private utilities such as sewer laterals. E3. Solid waste and recycling collection will continue to be via dumpster pickup as shown. E4. These comments are based on reviewing revised drawing sheets C3.00, C6.00, C6.30 and C6.40 dated August 7, 2024 submitted to the Engineering Department along with the unit lot submittal. Earlier versions of those sheets submitted with unit lot subdivision application do not fully address changes needed for unit lot subdivision. E5. Private roads shall be placed in a commonly owned tract. The tract shall be owned and maintained in common by the owners of the individual unit lots, or by a homeowners’ association comprised of the owners of the individual unit lots located within the parent lot. Covenants, conditions, and restrictions (CCRs) and sales contracts for unit lots abutting private roads must indicate that the private roads are owned and maintained by the project’s common owners of individual lots or a homeowners’ association. E6. No on-street parking is allowed on private roads unless provided in eight-foot-wide bulb-outs or in parking bays sized to appropriate parking stall sizes. CCRs and sales contracts for lots abutting private roads must indicate no on-street parking is allowed if provisions for parking are not made. *End of Conditions. In the event of a need for clarification regarding the application or interpretation of any term or condition of approval set forth above, either the applicant or the city can invoke the jurisdiction of the Hearing Examiner to issue a written clarification of a particular term or condition, through a written request detailing the matter, and the basis for such request. Such request shall be made as a Request for Reconsideration. CA received 09/16/25 EXHIBIT 56-7 Findings, Conclusions and Decision Approving Westry Village Unit Lot Subdivision Application – File No. P-09-15-24-01 Page 18 of 18 NOTICE OF RIGHTS TO REQUEST RECONSIDERATION OR APPEAL THIS DECISION Reconsideration – As provided in PMC 19.40.040.F.5 (captioned “Request for Reconsideration”), any party of record may file a written request with the hearing examiner for reconsideration within seven calendar days of the date of the written decision. The request shall explicitly set forth alleged errors of procedure, law, or fact. No new evidence may be submitted in support of or in opposition to a request for reconsideration. Appeal – PMC 19.70.020 explains that all decisions of the hearing examiner on Type I and II appeals, and all decisions of the hearing examiner on Type III permits may be appealed to the city council. (See definition of “permit application” in PMC 19.10.030, and Table 19.20.020, where various proposals are listed as a permit type). The city council will make a final decision on such matters in a closed record appeal proceeding in which no new evidence may be submitted. The deadline and filing requirements for appeals are detailed in the city’s code, including without limitation PMC 19.70.020. NOTE: The Notice provided on this page is only a short summary, and is not a complete explanation of fees, deadlines, and other filing requirements applicable reconsideration or appeals. Individuals should confer with advisors of their choosing and review all relevant codes, including without limitation the city code provisions referenced above and the Land Use Petition Act (Chapter 36.70C RCW) for additional information and details that may apply. CA received 09/16/25 EXHIBIT 56-7