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HomeMy WebLinkAbout65G_2024-0521 AramburuMay 21, 2024 Jefferson County Department of Community Development Planning@co.jefferson.wa.us Cristina Haworth, AICP SCJ Alliance 8730 Tallon Lane NE, Suite 200 Lacey, WA 98516 Delivered via email: cristina.haworth@scjalliance.com RE: Pleasant Harbor Proposed Subdivision: Case #SUB2023-00025: Comments on Notice of Preliminary Plat Application dated May 1, 2024 Dear Ms. Haworth and Jefferson County Planning: Thank you for your letter of April 16, 2024, which responds to my February 7 letter to you and other Jefferson County officials submitted on behalf of my client, the Brinnon Group. As you know, the Brinnon Group has been closely following and commenting on the Pleasant Harbor Resort proposal for many years, including engaging in litigation concerning the development agreement. Your correspondence references a subdivision application submitted on November 20, 2023. On May 1, 2024, we received notice from the County that the applicant’s preliminary subdivision application was finally complete and that comments could be submitted through May 21, 2024. This letter provides comments on this preliminary subdivision application. The notice also states that the comments will be provided to the applicant, who then “has seven days from receipt of the comments to respond to them.” Please provide us with the applicant’s responses to all comments received. In your April 16, 2024 letter you respond to my client’s concerns in several places by stating: “the preliminary subdivision is a land division application that does not authorize construction.” This appears at the top of page 2; twice on page 3. To the extent this statement would allow the applicant’s avoidance of impacts and the subdivision requirements, it is an erroneous interpretation of Washington subdivision requirements, a part of Washington law since 1969 as will be discussed in detail below. LAW OFFICES OF J. RICHARD ARAMBURU PLLC 705 Second Avenue, Suite 1300 Seattle, WA 981044797 Telephone 206,625,9515 Facsimile 206,682,1376 www,aramburulaw,com www,aramburu-eustis,com May 21, 2024 Jefferson County Department of Community Development Planning@co.jefferson.wa.us Cristina Haworth, AICP SCJ Alliance 8730 Tallon Lane NE, Suite 200 Lacey, WA 98516 Delivered via email: cristina.haworth@scjalliance.com RE: Pleasant Harbor Proposed Subdivision: Case #SUB2023-00025: Comments on Notice of Preliminary Plat Application dated May 1, 2024 Dear Ms. Haworth and Jefferson County Planning: Thank you for your letter of April 16, 2024, which responds to my February 7 letter to you and other Jefferson County officials submitted on behalf of my client, the Brinnon Group. As you know, the Brinnon Group has been closely following and commenting on the Pleasant Harbor Resort proposal for many years, including engaging in litigation concerning the development agreement. Your correspondence references a subdivision application submitted on November 20, 2023. On May 1, 2024, we received notice from the County that the applicant’s preliminary subdivision application was finally complete and that comments could be submitted through May 21, 2024. This letter provides comments on this preliminary subdivision application. The notice also states that the comments will be provided to the applicant, who then “has seven days from receipt of the comments to respond to them.” Please provide us with the applicant’s responses to all comments received. In your April 16, 2024 letter you respond to my client’s concerns in several places by stating: “the preliminary subdivision is a land division application that does not authorize construction.” This appears at the top of page 2; twice on page 3. To the extent this statement would allow the applicant’s avoidance of impacts and the subdivision requirements, it is an erroneous interpretation of Washington subdivision requirements, a part of Washington law since 1969 as will be discussed in detail below. Exhibit 65G May 21, 2024 Page 2 Brinnon Group also attaches, and incorporates by reference, our other comment letters on the subdivision and project including those of February 2, 2024 and September 6, 2023. A copy of a letter to the Consumer Protection Division of the Attorney General’s office, dated June 10, 2022, is also included as Attachment C, and incorporated by reference, as related to the continuing presales of residential lots and units within this subdivision. In Washington state, subdivisions must comply with the terms of chapter 58.17 RCW. Per RCW 58.17.030: “Every subdivision shall comply with the provisions of this chapter.” RCW 58.17.195 states: No plat or short plat may be approved unless the city, town, or county makes a formal written finding of fact that the proposed subdivision or proposed short subdivision is in conformity with any applicable zoning ordinance or other land use controls which may exist. Washington law is clear. The current subdivision application must comply with the Development Agreement for the Pleasant Harbor Master Planned Resort (PHMPR) and with the Master Planned Zoning ordinances of Jefferson County as well as state and local subdivision laws and regulations. The factors to be considered, and conditions for approval, are found in RCW 58.17.110(2) as follows: (2) A proposed subdivision and dedication shall not be approved unless the city, town, or county legislative body makes written findings that: (a) Appropriate provisions are made for the public health, safety, and general welfare and for such open spaces, drainage ways, streets or roads, alleys, other public ways, transit stops, potable water supplies, sanitary wastes, parks and recreation, playgrounds, schools and school grounds and all other relevant facts, including sidewalks and other planning features that assure safe walking conditions for students who only walk to and from school; and (b) the public use and interest will be served by the platting of such subdivision and dedication. The current application is deficient because “appropriate provisions” for the features identified in the state law have not been made, and because the public use and interest will not be served by the proposed preliminary subdivision and associated features necessary for a functioning Master Planned Resort. The statute requires that “adequate provision” be made for a variety of features required for residential and commercial use, including: “open spaces, drainage ways, streets or roads, alleys, other public ways, transit stops, potable water supplies, sanitary wastes, parks and recreation. ...” In turn, for the PHMPR, the adequacy of these May 21, 2024 Page 2 Brinnon Group also attaches, and incorporates by reference, our other comment letters on the subdivision and project including those of February 2, 2024 and September 6, 2023. A copy of a letter to the Consumer Protection Division of the Attorney General’s office, dated June 10, 2022, is also included as Attachment C, and incorporated by reference, as related to the continuing presales of residential lots and units within this subdivision. In Washington state, subdivisions must comply with the terms of chapter 58.17 RCW. Per RCW 58.17.030: “Every subdivision shall comply with the provisions of this chapter.” RCW 58.17.195 states: No plat or short plat may be approved unless the city, town, or county makes a formal written finding of fact that the proposed subdivision or proposed short subdivision is in conformity with any applicable zoning ordinance or other land use controls which may exist. Washington law is clear. The current subdivision application must comply with the Development Agreement for the Pleasant Harbor Master Planned Resort (PHMPR) and with the Master Planned Zoning ordinances of Jefferson County as well as state and local subdivision laws and regulations. The factors to be considered, and conditions for approval, are found in RCW 58.17.110(2) as follows: (2) A proposed subdivision and dedication shall not be approved unless the city, town, or county legislative body makes written findings that: (a) Appropriate provisions are made for the public health, safety, and general welfare and for such open spaces, drainage ways, streets or roads, alleys, other public ways, transit stops, potable water supplies, sanitary wastes, parks and recreation, playgrounds, schools and school grounds and all other relevant facts, including sidewalks and other planning features that assure safe walking conditions for students who only walk to and from school; and (b) the public use and interest will be served by the platting of such subdivision and dedication. The current application is deficient because “appropriate provisions” for the features identified in the state law have not been made, and because the public use and interest will not be served by the proposed preliminary subdivision and associated features necessary for a functioning Master Planned Resort. The statute requires that “adequate provision” be made for a variety of features required for residential and commercial use, including: “open spaces, drainage ways, streets or roads, alleys, other public ways, transit stops, potable water supplies, sanitary wastes, parks and recreation. ...” In turn, for the PHMPR, the adequacy of these Exhibit 65G May 21, 2024 Page 3 provisions is determined by the Development Agreement and associated county ordinances. Though the typical preliminary subdivision in Jefferson County is a simple layout of streets and lots, with supporting utilities, this proposed preliminary plat is large and contains a variety of commercial and residential uses, including a community center and a nine-hole golf course. “Adequate provision” for utilities, sewer systems, water supplies, streets and other supportive facilities is much more complex for the PHMPR than for a garden-variety local subdivision. Washington law makes clear the burden is on the applicant during the preliminary plat stage: The applicant must make a threshold showing that the completed development is able to comply with applicable zoning ordinances and health regulations. See id.; Topping v. Pierce County Bd. of Comm'rs, 29 Wash.App. 781, 783, 630 P.2d 1385 (1981). Knight v City of Yelm, 173 Wn.2d 325, 343-44 (2011). No such showing of consistence with the Pleasant Harbor MPR Development Agreement or the provisions of RCW 58.17.110(2) is possible under these circumstances. In addition, the applicant now proposes construction of certain modular facilities on site, which would be a manufacturing use not permitted, or even identified, in the Development Agreement. Where an infirmity appears in a plat inconsistent with underlying zoning, “it is incumbent upon the planning body to reject the plat.” Loveless v Yantis, 82 Wn 2d 754, 761 (1973). The application for the preliminary plat is also deficient in other respects, as described below. 1. Landscape Plan and Vegetation Management Plans. The so-called landscape plan and vegetation management plans do not demonstrate adequate provisions under RCW 58.17.110(2) for open space areas. The landscaping plan only provides for existing vegetation and ground cover, with no provisions for post-construction landscaping for the proposed residential and commercial structures. And as noted below, while there is mention of “protected trees” in the CCRs, no protected trees are identified or located on the Landscape Plan. The Vegetation Management Plan provides no information regarding how vegetation will be maintained consistent with the criteria for a Master Planned Resort. Of particular concern is addressing wildland fires, which are becoming more frequent and intense in Western Washington. Indeed, concerns regarding forest fires are May 21, 2024 Page 3 provisions is determined by the Development Agreement and associated county ordinances. Though the typical preliminary subdivision in Jefferson County is a simple layout of streets and lots, with supporting utilities, this proposed preliminary plat is large and contains a variety of commercial and residential uses, including a community center and a nine-hole golf course. “Adequate provision” for utilities, sewer systems, water supplies, streets and other supportive facilities is much more complex for the PHMPR than for a garden-variety local subdivision. Washington law makes clear the burden is on the applicant during the preliminary plat stage: The applicant must make a threshold showing that the completed development is able to comply with applicable zoning ordinances and health regulations. See id.; Topping v. Pierce County Bd. ofComm'rs, 29 Wash.App. 781, 783, 630 P.2d 1385(1981). Knight v City of Yelm, 173 Wn.2d 325, 343-44 (2011). No such showing of consistence with the Pleasant Harbor MPR Development Agreement or the provisions of RCW 58.17.110(2) is possible under these circumstances. In addition, the applicant now proposes construction of certain modular facilities on site, which would be a manufacturing use not permitted, or even identified, in the Development Agreement. Where an infirmity appears in a plat inconsistent with underlying zoning, “it is incumbent upon the planning body to reject the plat.” Loveless v Yantis, 82 Wn 2d 754, 761 (1973). The application for the preliminary plat is also deficient in other respects, as described below. 1. Landscape Plan and Vegetation Management Plans. The so-called landscape plan and vegetation management plans do not demonstrate adequate provisions under RCW 58.17.110(2) for open space areas. The landscaping plan only provides for existing vegetation and ground cover, with no provisions for post-construction landscaping for the proposed residential and commercial structures. And as noted below, while there is mention of “protected trees” in the CCRs, no protected trees are identified or located on the Landscape Plan. The Vegetation Management Plan provides no information regarding how vegetation will be maintained consistent with the criteria for a Master Planned Resort. Of particular concern is addressing wildland fires, which are becoming more frequent and intense in Western Washington. Indeed, concerns regarding forest fires are Exhibit 65G May 21, 2024 Page 4 mentioned in the PHMPR 2017 Vegetation Management Plan as follows: In some timbered portions of the Pleasant Harbor property “Fuel Ladder” issues exist where thick and tall understory vegetation provides a burn route that often will enable a forest fire to reach the upper canopy limbs of dominant trees. Should a forest fire occur in this situation, it is far more likely to be catastrophic in its effect on the vegetation community in which it occurs. Forested areas of the property should be inventoried for this situation and evaluated for understory preventative treatment where prudent. Despite the concerns about “catastrophic” fires, and the passage of seven years, no “inventory for this situation” has been presented. As noted below, there is no plan to manage wildland fire presented by the Applicant. 2. Compliance with Phasing Requirements. The Jefferson County subdivision ordinance has specific provisions for phased development, as follows: 18.35.330 Preliminary plat approval – Phased development. Where subdivision development is proposed in distinct phases, preliminary plat approval must be granted for the entire subdivision . The plat map must delineate the separate divisions or phases that are to be developed in increments. The preliminary approval is conditional upon completion of the proposed phases in a particular sequence and may specify a completion date for each phase. Final plat approval is granted for each separate phase of the preliminary plat. Any changes in the development after preliminary approval will require approval in accordance with JCC 18.35.320. (Emphasis supplied.) Phasing requirements for the current subdivision proposal must address the phasing required by the Development Agreement and the Decision of the Kitsap County Superior Court. Tracts for development of the golf course, multi-family residences, the conference center, and condominiums are set forth on Sheet 10 of the plat drawing. However, there are no provisions related to phasing of the project (DA page 3) and the sequence of construction within the plat (see further discussion below). As noted in our correspondence, the pending subdivision application is fully inconsistent with the phasing requirements of applicant’s Development Agreement and the ruling of the Kitsap County Superior Court on March 28, 2019. Moreover, as addressed in the February 26, 2024 letter from the Prosecuting Attorney to the applicant’s lawyer, the applicant has not complied with a number of requirements found in the Future Staffing and Consultant Agreement and in the Development Agreement. Of additional concern, the applicant has now provided a “Sequence of Construction” document from John Holbert, identifying himself as “Project manager for the Hamlet at May 21, 2024 Page 4 mentioned in the PHMPR 2017 Vegetation Management Plan as follows: In some timbered portions of the Pleasant Harbor property “Fuel Ladder” issues exist where thick and tall understory vegetation provides a burn route that often will enable a forest fire to reach the upper canopy limbs of dominant trees. Should a forest fire occur in this situation, it is far more likely to be catastrophic in its effect on the vegetation community in which it occurs. Forested areas of the property should be inventoried for this situation and evaluated for understory preventative treatment where prudent. Despite the concerns about “catastrophic” fires, and the passage of seven years, no “inventory for this situation” has been presented. As noted below, there is no plan to manage wildland fire presented by the Applicant. 2. Compliance with Phasing Requirements. The Jefferson County subdivision ordinance has specific provisions for phased development, as follows: 18.35.330 Preliminary plat approval - Phased development. Where subdivision development is proposed in distinct phases, preliminary plat approval must be granted for the entire subdivision. The plat map must delineate the separate divisions or phases that are to be developed in increments. The preliminary approval is conditional upon completion of the proposed phases in a particular sequence and may specify a completion date for each phase. Final plat approval is granted for each separate phase of the preliminary plat. Any changes in the development after preliminary approval will require approval in accordance with JCC 18.35.320. (Emphasis supplied.) Phasing requirements for the current subdivision proposal must address the phasing required by the Development Agreement and the Decision of the Kitsap County Superior Court. Tracts for development of the golf course, multi-family residences, the conference center, and condominiums are set forth on Sheet 10 of the plat drawing. However, there are no provisions related to phasing of the project (DA page 3) and the sequence of construction within the plat (see further discussion below). As noted in our correspondence, the pending subdivision application is fully inconsistent with the phasing requirements of applicant’s Development Agreement and the ruling of the Kitsap County Superior Court on March 28, 2019. Moreover, as addressed in the February 26, 2024 letter from the Prosecuting Attorney to the applicant’s lawyer, the applicant has not complied with a number of requirements found in the Future Staffing and Consultant Agreement and in the Development Agreement. Of additional concern, the applicant has now provided a “Sequence of Construction” document from John Holbert, identifying himself as “Project manager for the Hamlet at Exhibit 65G May 21, 2024 Page 5 Pleasant Harbor MPR,” dated November 17, 2023. This document says that: Given the pace and concurrent nature of the anticipated manufacturing on-site, it is confusing at best to view this development process as phases. The Developer is obligated to follow the court ruling, and in order to meet these requirements of Amenities to coincide with Residential Move-Ins , we are proposing to manufacture the various components in the order set down in the 2019 amendment to the Development Agreement. (Italics in Original). The more recent “2024-03-20 Phasing Response” is equally vague and incoherent: The reference to “phases” in the Project Narrative was a poor choice of words. The intent of the Project Narrative was to explain general sequencing of development. It was not intended to propose a new “phasing” plan. The attached revised Project Narrative removes the reference to phasing. To be clear, the project is not being phased in the sense that the applicant has not applied for a preliminary subdivision of a portion of the MPR and securing final plat, and developing the final platted property before subdividing other portions of the MPR. Rather, the Applicant has opted to secure preliminary subdivision approval of the entire MPR. The sequencing of development of Preliminary Facilities, Public Amenities and other resort development will, however, continue to comply with the requirements of the Development Agreement, state law, and the Jefferson County Code. As the proposed subdivision includes multiple lots, units and tracts, it is essential that a sequence of construction of these facilities be set forth to meet Master Planned Resort requirements. Since the Applicant has been, and continues to engage in “presales” of residential units, a clear understanding of what a consumer can expect is required to meet Consumer Protection rules. 3. Facilities for “Sanitary Wastes.” A preliminary plat must make adequate provision for treatment and disposal of sanitary wastes. The project includes 890 residential “units,” 216 residential “lots” and a number of restaurants, pubs and other dining facilities. The “sanitary wastes” that will require treatment are substantial and far exceed any prior development in Jefferson County. However, though a tract for a sewage treatment plant is set aside, there is no design or plan for this facility that might meet the standard of “adequate provision” to treat sanitary wastes. The preliminary plat should be denied for this reason. If the applicant were to post a security bond in the amount required to construct this facility by Jefferson County, together with all collection facilities and pump stations, that might be considered, but no such security is proposed by the applicant. May 21, 2024 Page 5 Pleasant Harbor MPR,” dated November 17, 2023. This document says that: Given the pace and concurrent nature of the anticipated manufacturing on-site, it is confusing at best to view this development process as phases. The Developer is obligated to follow the court ruling, and in order to meet these requirements of Amenities to coincide with Residential Move-Ins, we are proposing to manufacture the various components in the order set down in the 2019 amendment to the Development Agreement. (Italics in Original). The more recent “2024-03-20 Phasing Response” is equally vague and incoherent: The reference to “phases” in the Project Narrative was a poor choice of words. The intent of the Project Narrative was to explain general sequencing of development. It was not intended to propose a new “phasing” plan. The attached revised Project Narrative removes the reference to phasing. To be clear, the project is not being phased in the sense that the applicant has not applied for a preliminary subdivision of a portion of the MPR and securing final plat, and developing the final platted property before subdividing other portions of the MPR. Rather, the Applicant has opted to secure preliminary subdivision approval of the entire MPR. The sequencing of development of Preliminary Facilities, Public Amenities and other resort development will, however, continue to comply with the requirements of the Development Agreement, state law, and the Jefferson County Code. As the proposed subdivision includes multiple lots, units and tracts, it is essential that a sequence of construction of these facilities be set forth to meet Master Planned Resort requirements. Since the Applicant has been, and continues to engage in “presales” of residential units, a clear understanding of what a consumer can expect is required to meet Consumer Protection rules. 3. Facilities for “Sanitary Wastes.” A preliminary plat must make adequate provision for treatment and disposal of sanitary wastes. The project includes 890 residential “units,” 216 residential “lots” and a number of restaurants, pubs and other dining facilities. The “sanitary wastes” that will require treatment are substantial and far exceed any prior development in Jefferson County. However, though a tract for a sewage treatment plant is set aside, there is no design or plan for this facility that might meet the standard of “adequate provision” to treat sanitary wastes. The preliminary plat should be denied for this reason. If the applicant were to post a security bond in the amount required to construct this facility by Jefferson County, together with all collection facilities and pump stations, that might be considered, but no such security is proposed by the applicant. Exhibit 65G May 21, 2024 Page 6 4. Facilities for “Potable Water.” One of the plat features that requires a showing of “adequate provision” is “potable water.” As noted above, the size of this development requires substantial infrastructure to provide water to the many residential and commercial uses. Again, there is no plan that shows how water, together with distributions systems, can be provided for this massive development. As with provisions for Sanitary Wastes, no financial guarantee or security is provided to assure the County that these essential utilities will be constructed. In addition, more fully described below, the Applicant has engaged in a comprehensive program to “presell” residential lots and units and states it will continue that effort. Any purchaser under a “presell” agreement should be assured that basic utilities, such as water and sewer, will be available on closing. If these “presell” purchasers find water or sewer services are not available, it is likely they will demand the County provide such services based on subdivision approval. 5. Fire Flow . The application materials include a reference to requirements of county codes re “adequate water sources and facilities for fire protection.” The response is a single page, with an undocumented reference stating “system design criteria requires it to deliver 2000 gallons per minute.” However, there is no indication of the duration required for such minimum fire flows. The “Project Description” found in the notice for comments lists some 890 residential units and a community center, including 37 tracts for residential and commercial buildings. The fire flow requirements for buildings with high occupancy loads and sleeping units, some of which are multi-story buildings, are very substantial. The system will plainly require large water storage tanks to provide extended duration for fire flows. However, the response from the applicant is without substance: Once the preliminary plat is approved the PHMPR will produce and submit the final water system design including the fire protection system. The project team understands that the infrastructure to service a structure will need to be installed and tested including the fire system prior to obtaining development permits for buildings. Given the size and extent of this proposal, this response is woefully insufficient. It is fully inappropriate to piecemeal fire protection issues to individual buildings; fire suppression facilities must consider the entirety of the proposal. See JCC 18.35.330. This response is also deficient by not identifying the fire equipment available to fight fires in this area, which must include the six story “parkade” and the 206 room, four story hotel. Moreover, there is no plan or showing as to how wildland fires on this extensive wooded property will be suppressed and how the spread of fire to adjacent properties on Black Point will be contained. May 21, 2024 Page 6 4. Facilities for “Potable Water.” One of the plat features that requires a showing of “adequate provision” is “potable water.” As noted above, the size of this development requires substantial infrastructure to provide water to the many residential and commercial uses. Again, there is no plan that shows how water, together with distributions systems, can be provided for this massive development. As with provisions for Sanitary Wastes, no financial guarantee or security is provided to assure the County that these essential utilities will be constructed. In addition, more fully described below, the Applicant has engaged in a comprehensive program to “presell” residential lots and units and states it will continue that effort. Any purchaser under a “presell” agreement should be assured that basic utilities, such as water and sewer, will be available on closing. If these “presell” purchasers find water or sewer services are not available, it is likely they will demand the County provide such services based on subdivision approval. 5. Fire Flow. The application materials include a reference to requirements of county codes re “adequate water sources and facilities for fire protection.” The response is a single page, with an undocumented reference stating “system design criteria requires it to deliver 2000 gallons per minute.” However, there is no indication of the duration required for such minimum fire flows. The “Project Description” found in the notice for comments lists some 890 residential units and a community center, including 37 tracts for residential and commercial buildings. The fire flow requirements for buildings with high occupancy loads and sleeping units, some of which are multi-story buildings, are very substantial. The system will plainly require large water storage tanks to provide extended duration for fire flows. However, the response from the applicant is without substance: Once the preliminary plat is approved the PHMPR will produce and submit the final water system design including the fire protection system. The project team understands that the infrastructure to service a structure will need to be installed and tested including the fire system prior to obtaining development permits for buildings. Given the size and extent of this proposal, this response is woefully insufficient. It is fully inappropriate to piecemeal fire protection issues to individual buildings; fire suppression facilities must consider the entirety of the proposal. See JCC 18.35.330. This response is also deficient by not identifying the fire equipment available to fight fires in this area, which must include the six story “parkade” and the 206 room, four story hotel. Moreover, there is no plan or showing as to how wildland fires on this extensive wooded property will be suppressed and how the spread of fire to adjacent properties on Black Point will be contained. Exhibit 65G May 21, 2024 Page 7 6. Construction Prior to Final Plat Approval. Your April 19, 2024 letter to me, at page 2, states: “The preliminary subdivision is a land division application that does not authorize construction.” However, the Applicant has provided a lengthy “Sequence of Construction” dated November 11, 2023, which lists the work that is planned without reference to phasing or plat review. Related to utilities such as sewer and water, #5 on the list is “Commence the slab for the wastewater treatment plant equipment” but nowhere does the applicant describe the design, permitting or construction of the wastewater treatment plant itself. Such work is contrary to the commitment made by the County in the plat notice that: “No Construction is authorized as part of the preliminary plat application.” Jefferson County cannot avoid requiring complete and thorough compliance with state and local subdivision requirements by claiming the subdivision does not authorize construction of individual houses, condominiums, hotels or other developments. 7. Preservation of Protected Trees. Section 6.03 of the proposed CC&RS’s references “Preservation of Protected Trees” but there is no designation of such trees, their species or location. Such trees should be identified in the Vegetation Plan before preliminary plat approval. 8. Anticipated Lot Sales and Presales. The “Sequence of Construction” submittal, dated November 11, 2023, has a list of twenty-seven separate activities on the site. One of the activities is the following: “10) Commence presales for the single-family lots and the Sea-View Villas with plan of subdivision.” As noted in our prior correspondence, this applicant has been engaging in this illegal pre-sale activity for more than two years already. In our letter of February 2, 2024, we addressed not only the subdivision proposal, but also the litany of unfulfilled promises included in various website postings. Pages 6-7 of our letter documented offerings and sales materials advertising for sale residential real estate of various types. Based on these, we requested that the Jefferson County Prosecuting Attorney take steps under RCW 58.17.100 to prevent further advertisements for sale of properties within the subdivision proposal now before the County for review. In response, you state at page 4, apparently based on some unidentified conversations with the Jefferson County Prosecutor, that: We agree that the Statesman group is advertising the Pleasant Harbor Master Planned Report project. But lots, tracts or parcels are not identified in the advertisements and Jefferson County is not aware of the advertisement for or pre-sale of any specific lots, tracts, or parcels in the Pleasant Harbor Master Planned project. May 21, 2024 Page 7 6. Construction Prior to Final Plat Approval. Your April 19, 2024 letter to me, at page 2, states: “The preliminary subdivision is a land division application that does not authorize construction.” However, the Applicant has provided a lengthy “Sequence of Construction” dated November 11, 2023, which lists the work that is planned without reference to phasing or plat review. Related to utilities such as sewer and water, #5 on the list is “Commence the slab for the wastewater treatment plant equipment” but nowhere does the applicant describe the design, permitting or construction of the wastewater treatment plant itself. Such work is contrary to the commitment made by the County in the plat notice that: “No Construction is authorized as part of the preliminary plat application.” Jefferson County cannot avoid requiring complete and thorough compliance with state and local subdivision requirements by claiming the subdivision does not authorize construction of individual houses, condominiums, hotels or other developments. 7. Preservation of Protected Trees. Section 6.03 of the proposed CC&RS’s references “Preservation of Protected Trees” but there is no designation of such trees, their species or location. Such trees should be identified in the Vegetation Plan before preliminary plat approval. 8. Anticipated Lot Sales and Presales. The “Sequence of Construction” submittal, dated November 11, 2023, has a list of twenty-seven separate activities on the site. One of the activities is the following: “10) Commence presales for the single-family lots and the Sea-View Villas with plan of subdivision.” As noted in our prior correspondence, this applicant has been engaging in this illegal pre-sale activity for more than two years already. In our letter of February 2, 2024, we addressed not only the subdivision proposal, but also the litany of unfulfilled promises included in various website postings. Pages 6-7 of our letter documented offerings and sales materials advertising for sale residential real estate of various types. Based on these, we requested that the Jefferson County Prosecuting Attorney take steps under RCW 58.17.100 to prevent further advertisements for sale of properties within the subdivision proposal now before the County for review. In response, you state at page 4, apparently based on some unidentified conversations with the Jefferson County Prosecutor, that: We agree that the Statesman group is advertising the Pleasant Harbor Master Planned Report project. But lots, tracts or parcels are not identified in the advertisements and Jefferson County is not aware of the advertisement for or pre-sale of any specific lots, tracts, or parcels in the Pleasant Harbor Master Planned project. Exhibit 65G May 21, 2024 Page 8 (Emphasis in original). However, a brief review of the sales materials presented by Statesman indicates that Statesman is, and has been for some time, offering for sale specific properties within the proposed subdivision. Specifically for the “Seaview Villas,” Statesman’s website contains the information found at Attachment A hereto. As seen, the offering contains facades of residences for sale and includes floor plans (two floors), unit sizes and sales prices. For the Seaview Villas, the sales material says: There are only 162 Villas from 1,850 sf. to 2,300 sf available. Select a VILLA with 2 bedrooms, and either a den or media room with parking for two cars or one car and one 26 ft boat. (Emphasis supplied.) This material was also included in Attachment I to our February 2, 2024 letter. A portion of that webpage has a “CONTACT US” box. There is no question this is an offering for sale of specific units. The mass mailer titled “The Seattle Signal” unequivocally stated: Pre-sales begin Fall 2022, contact them today for updates and to be the first in line for this community. See Attachment B. Another of the website offerings by Statesman is found in Attachment A. On the same webpage as the residential villas and lots are long lists of “Amenities” for both Indoors and Outdoors, which are at best fanciful, including: Golf Course and Pro-Shop for both 9-holes and 18-hole challenges Family Fun Center with Tree-Topper Adventure with multi-ZIP-LINES Walking-on-Water League Play: Junior Hockey-Soccer-Lacrosse-Volleyball-Figure Skating Indoor Pools for Swim Meets and Family Entertainment The Royal Flush Indoor/Outdoor Water slide Conference Center and Theater None of these facilities currently exist; indeed, there are no designs, plans or building/construction permits for any of these items. While the current subdivision proposal sets aside “Tracts” for these facilities, together with a single line drawing of a potential building perimeter, there are no applications to construct them. Indeed, as you point out, no construction is permitted by approval of the preliminary plat. However, the current promotional materials treat these as existing amenities, showing, for instance, a colorful facade of a large hotel and conference center. Indeed, Pleasant Harbor continues its advertising efforts described above and its website containing the representations remains available as of April 23, 2024 (see Attachment A) and today. See https://pleasantharbormarina.com/stay/residential. Our recent public records request for county permitting documents reveals not even a discussion of these items May 21, 2024 Page 8 (Emphasis in original). However, a brief review of the sales materials presented by Statesman indicates that Statesman is, and has been for some time, offering for sale specific properties within the proposed subdivision. Specifically for the “Seaview Villas,” Statesman’s website contains the information found at Attachment A hereto. As seen, the offering contains facades of residences for sale and includes floor plans (two floors), unit sizes and sales prices. For the Seaview Villas, the sales material says: There are only 162 Villas from 1,850 sf. to 2,300 sf available. Select a VILLA with 2 bedrooms, and either a den or media room with parking for two cars or one car and one 26 ft boat. (Emphasis supplied.) This material was also included in Attachment I to our February 2, 2024 letter. A portion of that webpage has a “CONTACT US” box. There is no question this is an offering for sale of specific units. The mass mailer titled “The Seattle Signal” unequivocally stated: Pre-sales begin Fall 2022, contact them today for updates and to be the first in line for this community. See Attachment B. Another of the website offerings by Statesman is found in Attachment A. On the same webpage as the residential villas and lots are long lists of “Amenities” for both Indoors and Outdoors, which are at best fanciful, including: • Golf Course and Pro-Shop for both 9-holes and 18-hole challenges • Family Fun Center with Tree-Topper Adventure with multi-ZIP-LINES • Walking-on-Water • League Play: Junior Hockey-Soccer-Lacrosse-Volleyball-Figure Skating • Indoor Pools for Swim Meets and Family Entertainment • The Royal Flush Indoor/Outdoor Water slide • Conference Center and Theater None of these facilities currently exist; indeed, there are no designs, plans or building/construction permits for any of these items. While the current subdivision proposal sets aside “Tracts” for these facilities, together with a single line drawing of a potential building perimeter, there are no applications to construct them. Indeed, as you point out, no construction is permitted by approval of the preliminary plat. However, the current promotional materials treat these as existing amenities, showing, for instance, a colorful facade of a large hotel and conference center. Indeed, Pleasant Harbor continues its advertising efforts described above and its website containing the representations remains available as of April 23, 2024 (see Attachment A) and today. See https://pleasantharbormarina.com/stay/residential. Our recent public records request for county permitting documents reveals not even a discussion of these items Exhibit 65G May 21, 2024 Page 9 during project review. Because of the development agreement, these are required features within the proposal. The applicant must make “a threshold showing that the completed development is able to comply with applicable zoning ordinances.” See Knight v City of Yelm, supra, 173 Wash.2d at 343-44. The failure to address these issues – and demonstrate compliance with the Development Agreement – requires rejection of this proposal. 9. Financing of Project Features. As indicated above, the applicant has indicated its intention to continue its aggressive “presale” activity, even before the preliminary plat has been reviewed. Under these circumstances Jefferson County should confirm that “no presales for the single-family lots and Sea-View Villas” are permitted until the final plat is approved and project infrastructure completed. JCC 18.35.360 requires construction of infrastructure within the plat, or a surety bond (JCC 18.35.350) in the amount of 200 percent of the cost of subdivision improvements, as a prerequisite for final plan approval. RCW 58.17.205 permits the sale of a lot “following preliminary plat approval” if it is “expressly conditioned on the recording of a final plat” and if “all payments . . . shall be deposited in an escrow or other regulated trust account and no disbursement to seller shall be permitted until a final plat is recorded.” Since these presales are currently ongoing, and the applicant says they will continue, the issue of presales must be addressed. We have particular concern regarding the financing of infrastructure for this project. The plan presented will require substantial construction and expense, given its substantial size and rural location. The plan includes a full sewage treatment plan, water lines and facilities; fire suppression facilities and equipment; installation of miles of roads, a new intersection with State Route 101, and a golf course with irrigation piping. All facilities are proposed to be privately owned and the funding of all maintenance and repair of these substantial facilities will apparently be the responsibility of a home owners association, as indicated by the draft “Declaration of Covenants, Conditions, Restrictions and Easements for The Hamlet of Pleasant Harbor.” (the CCRs). However, the responsibility for each of the residential lots, condominium units and commercial properties is not clear. Section 2.02 references the following: Section 2.02 “Allocated Interest” shall mean the Common Expense Liability and the votes in the Association allocated to each Lot and Unit. The formula for the Allocated Interests is an equal share to each Lot and Unit for the total to equal 100.00 percent. The total number of Lots and Units on the Property shall not exceed 890 without the approval of Jefferson County. However, there is no formula for determining the responsibility of each tract or lot in the May 21, 2024 Page 9 during project review. Because of the development agreement, these are required features within the proposal. The applicant must make “a threshold showing that the completed development is able to comply with applicable zoning ordinances.” See Knight v City of Yelm, supra, 173 Wash.2d at 343-44. The failure to address these issues - and demonstrate compliance with the Development Agreement - requires rejection of this proposal. 9. Financing of Project Features. As indicated above, the applicant has indicated its intention to continue its aggressive “presale” activity, even before the preliminary plat has been reviewed. Under these circumstances Jefferson County should confirm that “no presales for the single-family lots and Sea-View Villas” are permitted until the final plat is approved and project infrastructure completed. JCC 18.35.360 requires construction of infrastructure within the plat, or a surety bond (JCC 18.35.350) in the amount of 200 percent of the cost of subdivision improvements, as a prerequisite for final plan approval. RCW 58.17.205 permits the sale of a lot “following preliminary plat approval” if it is “expressly conditioned on the recording of a final plat” and if “all payments . . . shall be deposited in an escrow or other regulated trust account and no disbursement to seller shall be permitted until a final plat is recorded.” Since these presales are currently ongoing, and the applicant says they will continue, the issue of presales must be addressed. We have particular concern regarding the financing of infrastructure for this project. The plan presented will require substantial construction and expense, given its substantial size and rural location. The plan includes a full sewage treatment plan, water lines and facilities; fire suppression facilities and equipment; installation of miles of roads, a new intersection with State Route 101, and a golf course with irrigation piping. All facilities are proposed to be privately owned and the funding of all maintenance and repair of these substantial facilities will apparently be the responsibility of a home owners association, as indicated by the draft “Declaration of Covenants, Conditions, Restrictions and Easements for The Hamlet of Pleasant Harbor.” (the CCRs). However, the responsibility for each of the residential lots, condominium units and commercial properties is not clear. Section 2.02 references the following: Section 2.02 “Allocated Interest” shall mean the Common Expense Liability and the votes in the Association allocated to each Lot and Unit. The formula for the Allocated Interests is an equal share to each Lot and Unit for the total to equal 100.00 percent. The total number of Lots and Units on the Property shall not exceed 890 without the approval of Jefferson County. However, there is no formula for determining the responsibility of each tract or lot in the Exhibit 65G May 21, 2024 Page 10 community. For example, what percentage is allocated to an individual single family lot? What percentage is allocated to each condominium tract, and will each condominium unit have a share of maintenance responsibilities? What portion of the construction, maintenance and upkeep will each owner be responsible for? Section 8.04 seems to say that each unit will be responsible for an equal share, however, expenses can be “specially allocated” to certain lots under Section 8.10. Will each of the 890 lots and units be responsible for common expenses? Section 2.13 seems to exclude the “tracts” on which the conference center and 206 room hotel will be located from payment of these common area expenses, however, such facilities will use the majority of the community services such as water, sewer, roads, electricity, gas, etc.. Will each lot or unit be responsible for a portion of costs for construction and maintenance of the sewer treatment plant and water system, including somehow the conference center and hotel? Since the owner has expressed its intention “to commence presales” for single family lots and “Sea-View Villas” it is essential that each prospective owner know what their responsibilities for financial contribution to the community will be. Based on the foregoing, we request that the County find that the present application does not meet minimum requirements for a subdivision under state law, Jefferson County codes and the Development Agreement for the property, and accordingly the current subdivision proposal be denied. In addition, we again request that Jefferson County follow state law and commence an action to restrain the continuing “offers or advertisements for sale or transfer” of portions of the pending subdivision until and unless a final plat is approved. JRA:cc cc: Brinnon Group; Jefferson County Board of Commissioners, jeffbocc@co.jefferson.wa.us; Mike Fong, Director, Washington State Department of Commerce, mike.fong@commerce.wa.gov; Josh D. Peters, AICP, Jefferson County Community Development Director, Jpeters@co Jefferson.wa.us; Pinky Feria Mingo, Jefferson County Director, Environmental Health & Water Quality, pmingo@co.jefferson.wa.us; Port Townsend Leader; Peninsula Daily News; Exhibit 65G May 21, 2024 Page 11 Port Townsend Free Press; Jefferson County Daily News; Olympic Peninsula Environmental News; Hood Canal Environmental Council (Phil Best). May 21, 2024 Page 11 Port Townsend Free Press; Jefferson County Daily News; Olympic Peninsula Environmental News; Hood Canal Environmental Council (Phil Best). Exhibit 65G Attachment A Attachment A Exhibit 65G Exhibit 65G Exhibit 65G Exhibit 65G Exhibit 65G Attachment B Attachment B Exhibit 65G The Seattle Signal 308913 US Highway 101 Brinnon, WA 98320 PR SRT STD US POSTAGE PAID PERMIT N0 1541 OKLA CITY, OK 731 HOW DO WE WANT TO LIVE? COMING SOON THE HAMLET OF PLEASANT HARBOR. THIS IS THE FUTURE HOW AMERICANS WANT TO LIVE! GOLF COURSE VISTA LOTS are fully serviced and for sale in various .1.. widths and depths, with spectacular views. These lots are available to those who want to build a dream home perfect for their lifestyle. While some are golfing or enjoying REJUV-Health, others benefit from the Recreation Centers indoor pools, skating and hockey rink, indoor soccer, racquetball and numerous training facilities for league sports, as well as the Family Fun Center. filled lowerJ SEA VIEW VILLAS are sinLlevel living for guests. The villas vary in size from 1850-2350 square feet and include three bedrooms plus a den/media room (with 5G connection) as well as a two-car attached garage that can accommodate a 28-foot boat. Talk about retiring the right way! -Z TERRACED LOFTS are single level suites of various sizes with extraordinary ™ window walls to enjoy the views of the sea and the gracious mountain peaks. These are mainly adult living homes where people focus on living and retaining their Wellness. REJUV- Health exercise therapists work with residents emphasizing that to be healthy and to extend longevity, you must understand what your body is saying to you when you read your Lab Results & Vitals. /I THE INN BY THE SEA has two-bedroom for lease suites. Guests can stay * for a weekend sporting event or a month for the ultimate vacation. Where on earth can you experience activities, such as learning to sail, enjoying a conference, or an entertainment evening, or engaging in various league sporting challenges such as competitive swimming, hockey or soccer matches—while building a lifetime of fond memories for you and those you love. THE MARITIME VILLAGE for-lease and shorter stay suites are located ’ above the Farmers Marketplace where Pleasant Harbor guests and residents shop for fresh fruit, herbs and leafy greens and vegetables grown hydroponically right at the Hamlet of Pleasant Harbor. "The recent pandemic has been a catalyst for change in the United States of America and abroad. Values, manifesting in the character of the people is more evident now than ever before. This identifiable change appears to be ' based on a desire to focus on what’s most important. Be it health, security, fitness, friendships and or social interaction; folks are asking themselves: HOW DO WE WANT TO LIVE?" Dr. M. Garth Mann, Director THEHAMjiT OF i RESIDENTIAL COMMUNITY RECREATION CENTER GOLF RESORT MARINA A NEW CONCEPT-DESIGN FOR SECURE, HEALTHY LIVING OFF HIGHWAY 101 Just a 2-hour scenic drive around or ferry ride across Puget Sound This brand-new HAMLET has been designed with security, recreation, entertainment, activities and improved wellness through medical & kinesiology at its core. Added to these concepts is a focus on socialization and the ideal sporting life with like-minded friends. The Hamlet of Pleasant Harbor is adjacent to Puget Sound’s Hood Canal. The well-protected deep water marina houses 300 vessels and is framed by the natural beauty of the Olympic Mountains, Olympic National Park, and Forest. A truly idyllic destination, where nature predominates this all-weather community with both indoor and outdoor facilities to satisfy the year-round interests of residents and guests. The Seattle Signal 308913 US Highway 101 Brinnon, WA 98320 PRSRTSTD US POSTAGE PAID PERMIT N0 1541 OKLA CITY, OK 731 HOW DO WE WANT TO LIVE? li COMING SOON.. THE HAMLET OF PLEASANT HARBOR. THIS IS THE FUTURE- HOW AMERICANS WANT TO LIVE! GOLF COURSE VISTA LOTS are fully serviced and for sale in various A widths and depths, with spectacular views. These lots are available to those who want to build a dream home perfect for their lifestyle. While some are golfing or enjoying REJUV-Health, others benefit from the Recreation Center’s indoor pools, skating and hockey rink, indoor soccer, racquetball and numerous training facilities for league sports, as well as the Family Fun Center. y SEA VIEW VILLAS are single level luxury living, with sun-filled lower sbd level living for guests. The villas vary in size from 1850-2350 square feet and include three bedrooms plus a den/media room (with 5G connection) as well as a two-car attached garage that can accommodate a 28-foot boat. Talk about retiring the right way! CZ TERRACED LOFTS are single level suites of various sizes with extraordinary <«, ™ window walls to enjoy the views of the sea and the gracious mountain peaks. These are mainly adult living homes where people focus on living and retaining their Wellness. REJUV-Health exercise therapists work with residents emphasizing that to be healthy and to extend longevity, you must understand what your body is saying to you when you read your Lab Results & Vitals. /i THE INN BY THE SEA has two-bedroom for lease suites. Guests can stay 1 for a weekend sporting event or a month for die ultimate vacation. Where on earth can you experience activities, such as learning to sail, enjoying a conference, or an entertainment evening, or engaging in various league sporting challenges such as competitive swimming, hockey or soccer matches—while building a lifetime of fond memories for you and those you love. CZ THE MARITIME VILLAGE for-lease and shorter stay suites are located ’ above the Farmers Marketplace where Pleasant Harbor guests and residents shop for fresh fruit, herbs and leafy greens and vegetables grown hydroponically right at the Hamlet of Pleasant Harbor. "The recent pandemic has been a catalyst for change in the United States of America and abroad. Values, manifesting in the character of the people is more evident now than ever before. This identifiable change appears io be ' based on a desire to focus on what’s most important. Be it health, security, fitness, friendships and or social interaction; folks are asking themselves: HOW DO WE WANT TO LIVE?" Dr. M. Garth Mann, Director THE HAMLET OF I RESIDENTIAL COMMUNITY RECREATION CENTER GOLF RESORT MARINA A NEW CONCEPT-DESIGN FOR SECURE, HEALTHY LIVING OFF HIGHWAY 101 Just a 2-hour scenic drive around or ferry ride across Puget Sound This brand-new HAMLET has been designed with security, recreation, entertainment, activities and improved wellness through medical & kinesiology at its core. Added to these concepts is a focus on socialization and the ideal sporting life with like-minded friends. The Hamlet of Pleasant Harbor is adjacent to Puget Sound’s Hood Canal. The well-protected deep water marina houses 300 vessels and is framed by the natural beauty of the Olympic Mountains, Olympic National Park, and Forest. A truly idyllic destination, where nature predominates this all-weather community with both indoor and outdoor facilities to satisfy the year-round interests of residents and guests. Exhibit 65G K & >5 - 4 ’#• T a r F 4 A Secure, Self-Contained and Sustainable, Gated Community The Hamlet of Pleasant Harbor offers more than anywhere else in the Pacific Northwest. Whether it’s exploring nature, playing golf or living aboard on the still waters of the Marina, people discover how simple it is to fulfill their desire for a quality, peaceful lifestyle in this sanctuary. The grandchildren will want to visit every weekend to race the indoor electric Hamlet Karts with Grandpa. • The Hamlet of Pleasant Harbor Utility District will provide exceptional drinking water, and a wastewater treatment plant, plus geothermal healthy heating and cooling system, with solar panels for off-setting electrical energy costs. • Lake Pleasant is a large reservoir for irrigation and fire prevention. Residents will enjoy the waltzing waters in the evening as the calm music de-stresses your lifestyle. • Pleasant Harbor Farms will grow its own leafy-greens and vegetables plus fruits and herbs that are served by the chefs at our marketplace food court. • Pleasant Harbor Security has an internal network of technology and skilled staff protecting residents and guests within this gated community. On site wellness professionals safeguard residents with recommended procedures to mitigate pandemics and other health concerns. • Pleasant Harbor Forest will provide multiple pathways for hiking and biking adventures, bordering views of the golf course. • Pleasant Harbor Marina will be world class 'with a full-service fuel dock and pump-outs for vessel lengths from 25 to 70 feet. Pleasant Harbor Recreation and Convention Center will offer a variety of activities and entertainment for all ages where like-minded neighbors and friends enjoy indoor and outdoor events. Pleasant Harbor Management will provide residents and guests with the best services; because it is our home too— and we CARE. Advanced Medical Group (AMG) will include medical and wellness facilities. The REJUV-Health Center is recognized for utilizing the Four Pillars to preserve wellness. People will visit from around the globe; being coached through learning how to read your biometric/vitals for improved wellness and longevity. AMG is a healthy atmosphere for wellness recovery Pleasant Harbor Wines plus Crafts/ Drafts will become a respected label for quality house-wines and crafts/ drafts served throughout the various Food Courts. Pleasant Harbor Ecology practices environmental techniques for preserving the water environment through natural fertilizers, sanitation and insecticides. Pleasant Harbor General Contractors is a Statesman GC, in Washington state, nearing half a century of state- of-the-art construction techniques for modular and panelized quality. Our motto, “What a Beautiful Way to Live,” steadfastly remains our vision statement even after thousands of residential properties. Work from Home is becoming very common today. The Hamlet is planning 5G reception with exceptional WIFI. The HAMLET of PLEASANT HARBOR: A MARINA & RECREATION COMMUNITY can never be duplicated. This one-of-a-kind location is off Coast Highway 101, where residents expect to enjoy their life within this self-contained and sustainable community that has been designed to protect A Beautiful Way to Live! Pre-sales begin Fall 2022, contact them today for updates and to be the first in line for this community Vancouver [stand Clallam Bay Sekiu (5g) Sequkn Forks Olympic National Park Quilcene ® Brinnon Seattle eatac Airport Hoquiam Olympia Victoria Town- end GETTING THERE >Only a 2-hour drive from Sea-Tac Airport 308913 US HWY 101 Brinnon, WA 98320 (206) 747-5522 ■ info@hamletofpleasantharbor.com Hamletofpleasantharbor.com /ARBOR RESIDENTIAL COMMUNITY RECREATION CENTER GOLF RESORT MARINA A Secure, Self-Contained and Sustainable, Gated Community The Hamlet of Pleasant Harbor offers more than anywhere else in the Pacific Northwest. Whether it’s exploring nature, playing golf or living aboard on the still waters of the Marina, people discover how simple it is to fulfill their desire for a quality, peaceful lifestyle in this sanctuary. The grandchildren will want to visit every weekend to race the indoor electric Hamlet Karts with Grandpa. • The Hamlet of Pleasant Harbor Utility District will provide exceptional drinking water, and a wastewater treatment plant, plus geothermal healthy heating and cooling system, with solar panels for off-setting electrical energy costs. • Lake Pleasant is a large reservoir for irrigation and fire prevention. Residents will enjoy the waltzing waters in the evening as the calm music de-stresses your lifestyle. • Pleasant Harbor Farms will grow its own leafy-greens and vegetables plus fruits and herbs that are served by the chefs at our marketplace food court. • Pleasant Harbor Security has an internal network of technology and skilled staff protecting residents and guests within this gated community. On site wellness professionals safeguard residents with recommended procedures to mitigate pandemics and other health concerns. • Pleasant Harbor Forest will provide multiple pathways for hiking and biking adventures, bordering views of the golf course. • Pleasant Harbor Marina will be world class with a full-service fuel dock and pump-outs for vessel lengths from 25 to 70 feet. Pleasant Harbor Recreation and Convention Center will offer a variety of activities and entertainment for all ages where like-minded neighbors and friends enjoy indoor and outdoor events. Pleasant Harbor Management will provide residents and guests with the best services; because it is our home too— and we CARE. Advanced Medical Group (AMG) will include medical and wellness facilities. The REJUV-Health Center is recognized for utilizing the Four Pillars to preserve wellness. People will visit from around the globe; being coached through learning how to read your biometric/vitals for improved wellness and longevity. AMG is a healthy atmosphere for wellness recovery. Pleasant Harbor Wines plus Crafts/ Drafts will become a respected label for quality house-wines and crafts/ drafts served throughout the various Food Courts. Pleasant Harbor Ecology practices environmental techniques for preserving the water environment through natural fertilizers, sanitation and insecticides. Pleasant Harbor General Contractors is a Statesman GC, in Washington state, nearing half a century of state- of-the-art construction techniques for modular and panelized quality. Our motto, “What a Beautiful Way to Live,” steadfastly remains our vision statement even after thousands of residential properties. Work from Home is becoming very common today. The Hamlet is planning 5G reception with exceptional WIFI. The HAMLET of PLEASANT HARBOR: A MARINA & RECREATION COMMUNITY can never be duplicated. This one-of-a-kind location is off Coast Highway 101, where residents expect to enjoy their life within this self-contained and sustainable community that has been designed to protect A Beautiful Way to Live! Vancouver Island Victoria Town end Sequkn —< Forks Olympic National Park Qullcen* ® Brinnon Seattle eatac Airport Hoquiam Olympia Pre-sales begin Fall 2022, contact them today for updates and to be the first in line for this community GETTING THERE >Only a 2-hour drive from Sea-Tac Airport 308913 US HWY 101 Brinnon, WA 98320 (206) 747-5522 ■ info@hamletofpleasantharbor.com Hamletofpleasantharbor.com /ARBOR RESIDENTIAL COMMUNITY RECREATION CENTER GOLF RESORT MARINA Exhibit 65G Exhibit 65G LAW OFFICES OF J. RICHARD ARAMBURU PLLC 705 Second Avenue, Suite 1300 www.aramburulaw.com Seattle, WA 98104-1797 www.aramburu-eustis.com Telephone 206.625.9515 Facsimile 206.682.1376 June 10, 2022 Consumer Protection Division Washington State Attorney General’s Office Consumer Resource Center 800 Fifth Avenue, Suite 2000 Seattle, WA 98104 Consumer Financial Protection Bureau PO Box 27170 Washington, DC 20038 Re: Offering Materials for the Hamlet of Pleasant Harbor, Jefferson County, Washington State Dear CPD and CFPB: This office represents the Brinnon Group, a Washington non-profit corporation organized in 2008 to protect the residential, environmental and community values of the greater Brinnon Community. For the past fifteen years, the Brinnon Group has been involved with the possible development of the Pleasant Harbor Master Planned Resort (PHMPR) on a 230 acre portion of the larger Black Point area on the western side of Hood Canal (approximately 15 miles south of the Hood Canal Bridge) on Highway 101. The PHMPR proposal is located in Jefferson County. As will be described herein, the Brinnon Group is concerned that the project proponent is improperly soliciting sales of interests in the PHMPR through mail offerings and internet solicitations. Because there are no applications, approvals or permits for substantially all references to infrastructure and improvements in the Pleasant Harbor solicitation materials, the offering materials are inaccurate and actions should be taken to require these solicitations to cease until definitive plans for the PHMPR have been completed. Exhibit 65G June 10, 2022 Page 2 BACKGROUND: MASTER PLANNED RESORTS Under the Washington State Growth Management Act (the GMA), “Master Planned Resorts” are permitted under limited circumstances as described in RCW 36.70A.360. MPRs “may constitute urban growth outside of urban growth areas as limited by this section.” RCW 36.70A.360(1). The statute defines an MPR as follows: A master planned resort means a self-contained and fully integrated planned unit development, in a setting of significant natural amenities, with primary focus on destination resort facilities consisting of short-term visitor accommodations associated with a range of developed on-site indoor or outdoor recreational facilities. The Municipal Research and Services Center of Washington has produced guidance for development of MPRs in a document entitled “Master Planned Resorts ‘Washington Style’” which at page 17 provides further guidance: The requirement that MPRs be self-contained means that visitors and residents should be able to meet most of their daily needs on site, without having to leave the site. Because visitors come to these destination resorts for extended rather than just overnight stays, MPRs must serve as a “home away from home” as well as to provide a variety of special recreational opportunities for its guests. If needs are met on-site, traffic and other demands on neighboring community facilities will likely be reduced. As noted, MPRs cannot be just another residential development, but must meet particular requirements to be allowed in rural areas. HISTORY OF PHMPR Prior to 2006, the Statesman Group of Companies, a real estate developer, acquired a 256 acre property in the Black Point area which was a former trailer campground previously owned and operated by the Thousand Trails Company. In 2006, Statesman requested that Jefferson County designate its property on Black Point as a Master Planned Resort. In January 2008, the County gave the proposed PHMPR an underlying land use designation of Master Planned Resort. In 2018, Jefferson County approved Ordinance 03-0604-18 adopted new zoning and on Exhibit 65G June 10, 2022 Page 3 the same day approved a “Development Agreement” for the PHMPR under Ordinance 04-0604-18. The Brinnon Group appealed these ordinances to the Kitsap County Superior Court in June, 2018 under Cause Number 18-2-01758-18. PHMPR PROVISIONS FOLLOWING SUPERIOR COURT REVIEW On March 28, 2018, the Superior Court entered its LUPA Decision and Order granting the Brinnon Group’s petition, reversing the approval of the Development Agreement and remanding to Jefferson County for further review. See Attachment A. In particular the Court required that each phase of development include facilities “sufficient to stand alone if no subsequent phases are developed.” Decision at page 10. In addition, the Court found that the deletion of the “community center” from the Development agreement was in error and required the Development Agreement be amended to include it in Phase 1 of the development. On remand, the Development Agreement was modified consistent with the Court’s ruling on July 22, 2019. That amendment is Attachment B hereto. The amendment required each phase of development to “contain adequate infrastructure, open space, recreational facilities, landscaping” and other conditions “to stand alone if no subsequent phases are developed.” Phase 1 required that substantial resort infrastructure and recreational facilities be constructed as follows: ! Clearing and construction of the golf course. ! Construction of the road network. ! Road improvements at Highway 101 and Black Point Road. ! Wastewater Treatment Plant. ! Water Storage Tank and distribution piping. ! Sanitary Sewer Pump Stations. ! Begin Implementation of Vegetation Management Plan. ! Construction of Community/Recreation Center, with 208 short term hotel rooms, spa services, pool, water slides, commercial space and sports courts. ! Construct residential units with 52 units of staff quarters for those working at the facility. ! Form a water and sewer district. Exhibit 65G June 10, 2022 Page 4 A drawing showing the proposal, with its phasing plan, is page 9 of Attachment B hereto. Only if these amenities and infrastructure elements are completed can the developer construct and sell approximately 252 units of residential housing. STATUS OF IMPROVEMENTS As noted above, the Development Agreement requires ten features of combined infrastructure and resort/recreational amenities be developed before residential units can be built and sold. However, as of this date, none of these infrastructure/amenities have been constructed; indeed no permit applications have even been filed for necessary features of Phase 1 of the proposal. No water/sewer district has been formed and no sewer treatment plant or water system has been permitted, constructed or installed.1 No permits have been filed for construction of the staff quarters. No road system has been constructed and no improvements made to the intersection of Black Point Road and Highway 101, the only entrance to the project. The most ambitious part of the project, a 208 room hotel, complete with premised water slides, spa services, commercial space and sports courts is, again, not constructed, and no building permit applications have been filed. The only progress on Phase 1 is logging (and timber sale) for golf course fairway areas. A current aerial photo of the site is attached showing no progress of any of the features required by Phase 1. Attachment E. OFFERINGS Though Statesman has neither completed nor started construction of any of the ten critical elements of Phase 1 infrastructure, it has engaged in a substantial effort to promote and sell interests in the Pleasant Harbor MPR, including the following. a. A website, Hamletofpleasantharbor.com (leading to https://www.pleasantharbormarina.com/) b. A 6 minute, 27 second video describing the Pleasant Harbor Development. See https://www.pleasantharbormarina.com/about/ (scroll down to second video, on left side of page) or https://www.youtube.com/watch?v=8heCW1GuuEs. c. A mass mailer under the lead “Seattle Signal,” distributed through the United 1Construction of any sewer and water facilities requires approval of the State Department of Health (DOH). Though application materials were sent to DOH, they were incomplete, as described in the attached letter from DOH dated September 22, 2020. Attachment C. A recent inquiry to DOH shows no additional material submitted by Statesman. Attachment D. Exhibit 65G June 10, 2022 Page 5 States Mail. Though we are not aware of the exact distribution and specific marketing plan, the “Seattle Signal” appears to be targeted at affluent property owners in the Seattle metro area. See Attachment F. As will be described below, this is clearly marketing material, with the “Seattle Signal” closing with the following: Pre-sales begin Fall 2022, contact them today for updates and to be the first in line for this community. Both the website and the “Seattle Signal” contain multiple inaccuracies and statements which are not – and will not be – accurate within any reasonable time. Some of those representations are outlined below. 1. As described in the “Seattle Signal,” Statesman says: “COMING SOON .. The Hamlet of Pleasant Harbor.” This is followed by: THIS IS THE FUTURE – HOW AMERICANS WANT TO LIVE! The five numbered items, “Vista Lots, Sea View Villas, Terraced Lofts, the Inn by the Sea and the Maritime Village” are all described for purchase or lease real estate interests. There is no indication that these facilities are permitted or constructed, and the brochure does not explain the ten elements of Phase 1 of the PHMPR that must be constructed before the real estate interests can be sold. There is no opportunity offered for prospective buyers to inspect the property. 2. Much of the material in the “Seattle Signal” relies upon the construction of the 208- room conference center. For example, under Number 1 on the front page, Statesman discusses the “GOLF COURSE VISTA LOTS” which are “fully serviced and for sale in various widths and depths, with spectacular views.” Benefits promised in conjunction with the sales of these lots include the following: While some are golfing or enjoying REJUV-Health, others benefit from the Recreation Center’s indoor pools, skating and hockey rink, indoor soccer, racquetball and numerous training facilities for league sport, as well as the Family Fun Center. However, not only is the “Recreation Center” not constructed and lacking any permit applications with Jefferson County, there are not even basic plans for the facility. Exhibit 65G June 10, 2022 Page 6 In its videos, Statesman has a sketch-up elevation for the Recreation Center. However this sketch is identical to Statesman’s similar proposal for “Pine Ridge Mountain Resort” near Invermere, British Columbia, “on hold” since 2007. Statesman has simply recycled an old sketch to market its Pleasant Harbor scheme. See Attachment G. What is common between the two recreation centers is that both were promised as part of a real estate development scheme, but neither has been permitted or constructed. Indeed, a check with Jefferson County indicates that no application has been filed to construct such a facility. 3. The website (Hamletofpleasantharbor.com, leading to https://www.pleasantharbormarina.com/) also offers medical services as a part of the proposals. The website states: Our Health Center includes an approved surgical operatory for various endoscopic day procedures such as those related to ear-nose-throat procedures, general surgeries, plastic surgery plus urology & gynecology and minor orthopedic procedures. See Attachment H at PDF page 5. Once again, there are no permits or plans for construction of such a facility. The thought that this geographically isolated Master Planned Resort, which does not even have sewer or water service, could assemble physicians, facilities, and support personnel for four or five medical specialities is at best fanciful, and at worst fully deceiving. 4. As described above, even Phase 1 of the PHMPR involves a very expensive proposal with a multi-year permitting and construction program. However, substantially no progress has been made on moving this project forward in the three years since the Development Agreement was approved, after modifications required by the Superior Court. There is every indication that Statesman lacks the financial wherewithal to complete this venture, much less even initiate it.2 Evidence of this lack of financial resources is shown by a proposal made by Statesman in August 2016 for public funding of the PHMPR, called: “THE PLEASANT HARBOR MARINA AND RECREATION COMMUNITY: A Vision for Investing in Puget Sound.” 2The “Seattle Signal” also provides information about Statesman’s “general contractor:” Pleasant Harbor General Contractors is a Statesman GC, in Washington state, nearing half a century of state-of-the-art construction techniques for modular and panelized quality. Checking with the Washington Department of Labor and Industries shows that “Pleasant Harbor General Contractors” is not registered in Washington state. Exhibit 65G June 10, 2022 Page 7 See Attachment I. The “Proposal” is found at page 3 of the document and states as follows: In order to finance this community resource, Pleasant Harbor Marina & Golf Resort LLP (PHM) will be seeking County and State of Washington support, where the stakeholders would all benefit from the increased attraction in the community.3 The proposal included requesting a $2,000,000 grant from Jefferson County and a $9,250,000 grant from the State of Washington from “the Washington State Utility Trust, a Recreational Community Grant . . .” Statesman further proposed that the State “would sponsor through the Federal Government a Tax Exempt Municipal Improvement Bond for $26.5 million dollars at a loan to PHM.” Given the questionable, indeed non-existent financial arrangements proposed, neither the State nor Jefferson County advanced any funds, much less the $37,750,000 requested. Indeed, Statesman asked local governments in British Columbia to provide similar financial support in the amount of about $40 million for the recreational center at its Pine Ridge resort, which unsurprisingly was declined by Canadian officials. It does not appear that Statesman has the financial resources to complete the ambitious plan anticipated in Phase 1 of the Development Agreement. None of these limitations or shortcomings are described on its Pleasant Harbor website, in its accompanying videos or in the “Seattle Signal” brochure. CONSUMER AND COMMUNITY CONCERNS As described above, though Statesman promotes its project with slick advertising, including videos and website, there is no substance. The Hans Christian Anderson title, “The Emperor Has No Clothes,” applies here. Statesman, though creating the PHMPR in name, has made no progress toward the completion of facilities necessary to meet the standards of a Master Planned resort, even the basics of water and sewer services. It appears that Statesman lacks the financial resources even to build the infrastructure and amenities required by its Development Agreement. This however does not deter Statesman from wild promises and misrepresentations concerning its proposal, as found in its promotional materials and advertising, all in an apparent attempt to solicit sales of real estate interests in this proposal. 3As noted above, in Washington state, a MPR is to be fully contained and is not allowed to be the source of incremental development in the rural area. Exhibit 65G Exhibit 65G