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Home My WebLink About111615_ra01Regular Agenda 10:00 am JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: David Goldsmith, Department of Community Development (DCD) Interim Director David Wayne Johnson, Associate Planner DATE: November 16, 2015 SUBJECT: Port Ludlow Associates request to extend expiration of Olympic Terrace II Preliminary Plat approval STATEMENT OF ISSUE: On June 28, 2005, the Jefferson County Hearing Examiner granted preliminary plat approval for the Olympic Terrace II Long Plat, Phase One of which was finaled on May 7, 2007. Phase Two had yet to be finaled when the economic downturn of 2008 made doing so infeasible. On May 21, 2012, the BoCC approved a one year extension of the preliminary plat approval due to economic conditions. The Port Ludlow Development Agreement was amended on May 13, 2013 to allow an additional extension of the plat up to June 28, 2016. Port Ludlow Associates (PLA) has submitted a request for an additional twelve (12) extension of the preliminary plat under Section 6.212 of Subdivision Ordinance 04-0526-92, to allow expiration of the plat on June 28, 2017. ATTACHMENTS: Port Ludlow Associates request letter received November 5, 2015 May 21, 2012 one year extension Consent Agenda Amendment No. 2 of the Port Ludlow Development Agreement Section 6.212 of Subdivision Ordinance 04-0526-92 ANALYSIS/STRATEGIC GOALS/PROS and CONS: Due to market factors that influence the type of home and location most advantageous to sales, PLA will need additional time to design, complete and final Olympic Terrace II Phase 2. Section 6.212 of Subdivision Ordinance 04-0526-92 allows the BoCC extensions to plats not to exceed twelve (12) months at a time upon showing that the applicant has in good faith attempted to submit the final plat long plat within the initial twelve month period. BoCC approval to extend the plat an additional one year is appropriate since PLA has demonstrated good faith in completing the plat by already acquiring final approval for Phase One, and will need additional time to design a housing style that will fit with emerging trends in real estate. FISCAL IMPACT/COST-BENEFIT ANALYSIS: PLA has to date paid the County a total of $23,377.75 in fees to process the Olympic Terrace II Long Plat. Should their preliminary plat approval expire, and they desire to continue their development of Olympic Regular Agenda 10:00 am Terrace II Phase Two, PLA would be required to re -apply for a new plat under the current fee schedule after completing the required Pre -application Conference. DCD charges PLA for Lead Planner services not included in an application fee at the standard hourly rate of $78.00 per hour. RECOMMENDATION: DCD recommends the Board of County Commissioners: 1. Review the attached request and supporting documentation and make a motion to approve an additional twelve (12) month extension to the preliminary plat approval for Olympic Terrace II, making the new expiration date June 28, 2017. REVIEWED BY: Philip Morl y County A mi r Date Z I ASSOCIATES LIX Mr. David Johnson Jefferson County Department of Community Development 621 Sheridan Street Port Townsend, WA 98368 Re: 01yrnple'rerrace 2 (OT 11), Phase 2 Request for Extension Dear Mr, Johnson: IL DO PT OF fTV,"'JN1Y VI'VROPWNT Port I.Aldlow Associates, LLC (PLA) is requesting a 12 -month extension of the Olympic Terrace 2, Phase 2 development (Plat - Sub 05-00003) expiring on June 28, 2016. As you are aware, Port Ludlow Associates has recently begun building new construction single- family residences, While one may assume this is an indication that the economy and market has recovered to a point that building is sustainable, this is not necessarily the case within Port Ludlow. Upon analyzing the housing climate within Port Ludlow, Port Ludlow Associates determined that the housing niarket remains prohibitive to build new construction homes that reside any distance away from waterfront locations. After careful consideration and extensive diligence, the decision was made to build Ludlow Cove: Cottages, Ludlow Cove Cottages is a project we felt through careful planning could overcome the challenges of soft prices, distressed inventory and historically low selling prices within Port Ludlow. By leveraging the premiere waterfront location, a progressive landscape plan and home design, Port Ludlow Associates created a unique neighborhood that Would not compete with the resale housing market but aid in overall resale absorption. We have witnessed Ludlow Cove Cottage visitors purchase resale homes within Port Ludlow, The distinct di ff.erence of this new neighborhood as opposed to Current inventory was critical in our ability to secure appropriate institutional lending and cora-nence the project. Furthermore, no existing neighborhood inventories, prior home or architectural designs inhibit Ludlow Cove Cottages as they do within Olympic Terrace 11. We recognize that Olympic Terrace 11 is an important asset to the Port Ludlow community. It is just as important to Port Ludlow Associates and we are diligent about completing this neighborhood. Upon reviewing the home sales within Olympic Terrace I and OlyiripicTerrace 11 it's evident the values remain soft. Within OlympicTerraceI many homeowners have not recovered or remain in a negative equity position. Several foreclosure sales have occurred. The average sold price per Square foot within Olympic Terrace 11 is $130. The most recent sale (03/05/14) within our records reflects 570 Mount Constance Way selling at $123.54 a square foot. This is where the Issue resides. This .same home plan and comparable lot location would dictate Port 1-,iidlow Associates determining a selling price of $671,685.81 at minimum. This is building the exact same home plan as 570 Mount Constance Way at $135 a square foot. It has become very clear that we could not compete, as the costs to build new construction arc well above what is feasible. We also feel confident that without any changes to the overall size, home Port LudknvAssadok's LLC yo Brcoker Linc P011 LUCHOIA; �'VA 98,)6-) id[VS-COM design etc, obtaining financing for this project is unlikely. It Would be extremely detrimental to the existing homeowners within Olympic Terrace 11 and Olympic Terrace Jr if Port Ludlow Associates started a. new neighborhood, only to not have it sell out within a reasonable timefrarne. Therefore, careful diligence and planning must occur to ensure the success of the neighborhood, not only for Port Ludlow Associates but also for the community. it is our belief the expiration of the preliminary plat would further compromise the integrity of the neighborhood. This is the prirnary reason for our extension request. Port Ludlow Associates hopes that in the near future we will be able to be at the point Of focusing on OTIL We will need to be very careful with OT 11 and exercise the same level of difigerice as performed on Ludlow Cove Cottages. Depending on recovery, we may need to ask for an additional extension in the future. Thank you :for your timely consideration. Sincerely, Diana Smeland President CC: March de Sa e Silva, Davis Wright Trernaine Z. 1011 LH(How Msocialvs LI.C. 70 tipaker Lane P011 1A.01CM; VA'A ()8,, 65 7 -22 Consent Agenda 1k JEFFERSON COUNTY 0 os BOARD OF COUNTY COMMISSIONERS V CONSENT AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Carl Smith, Department of Community Development (DCD) Direction Stacie Hoskins, DCD Planning Manager ?il David Wayne Johnson, Associate Planner DATE: May 21, 2012 SUBJECT: Port Ludlow Associates request to extend expiration of Olympic Terrace 11 Preliminary Plat STATEMENT OF ISSUE: On June 28, 2005, the Jefferson County Hearing Examiner granted preliminary plat approval for the Olympic Terrace 11 Long Plat, Phase One of which was finaled on May 7, 2007. Phase Two had yet to Ibe finaled when the economic downturn of 2008 made doing so infeasible. Preliminary Plat approval for Olympic Terrace 11 will expire on June 28, 2012 per DCD Code Interpretation dated June 7, 2010. Port Ludlow Associates (PLA) has submitted a written request to extend the expiration of that Plat for one additional year consistent with Section 6.212 of Subdivision Ordinance 04-0526-92, the relevant regulations under the Port Ludlow Development Agreement. On May 7, 201,2 the BoCC discussed the issue at the County Adminstrator's Briefing. ATTACHMEN—TS: Port Ludlow Associates letter dated March 20, 2012 Section 6.212 of Subdivision Ordinance 04-0526-92 ANALYSIS/STRATEGIC GOALS/PROS and CONS: Port Ludlow's request is appropriate considering the cost of plat development to complete infrastructure necessary for final approval and the economic conditions that to date have inhibited that development. It is also in keeping with the proper procedure to extend preliminary plat approval consistent with their development agreement with the County. Board approval to extend plat expiration one year is appropriate since PLA has demonstrated good faith in completing the plat by already acquiring final approval for Phase One. FISCAL IMPACL/COST-BENEFIT ANALYSIS: PLA has to date paid the County a total of $23,377.75 in fees to process the Olympic Terrace II Long Plat. Should their preliminary plat approval expire, and they desire to continue their development of Olympic Terrace II Phase Two, PLA would be required to re -apply for a new plat under the current fee schedule after completing the required Pre -application Conference. DCD charges PLA for Lead Planner services not included in an application fee at the standard hourly rate of $74.00 per hour. Consent Agenda RECOMMENDATION; DCD recommends the Board of County Commissioners: 1. Review the attached request and supporting documentation and make a motion to approve a twelve (12) month extension to the preliminary plat approval for Olympic Terrace 11. REVIEWED 4 P IiP Morl Y, un y alor Date 0 NMEND 576053 PGS sor-1 TES LLC 0jLJq0LW PS IdIridge, Auditor (DS 114 I'll" 3C1.14,n2t6y PWMn 1-- - D -r'" F,-' Jefferson WHEN RECORDEA D, R -ET UJZ:N'1'0' Im w"I'MV, Marco de Sa e Silva Davis WrightTremaine LLP 1201 Fourth Avenue, Suite 2200 Seattle, Washington 98101 AMENDMENTNO. 2 TO pola lAJDLOW DEN4'LOPMENT AGREEMENT Grantor, JETFERSON COUN"11Y, a political subdivision of the State of Washington Grantee: PORT LUDLOW ASSOCIATES LLC, a Washington limited liability company OLYMPIC WATER AND SEWER, INC,, a Washington corporation Abbreviated Legal De9criptiow Portions of Sections 8, 9, 16, 17, 20, 21 and 29,'"1`owriship 28 North, Range I East; Us 48, 68, 71, 105 and 45 Area 4, Pt Ludlow No. 1; Lt 16 Area 3 Pt Ludlow No. 2; Lot 8 South Bay #12, Lt 74 -Teal Lake Village; Parcels 1-11 Ludlow Bay Village; I-ts 8-11 Ludlow Cove Div 1, Phase 2; T'I's A-E Ludlow Cove Div 1, Ph 1; Lt 16 Olympic Terrace #1; Us 1-41 and TI's A-E Olympic Terrace Div 2, Ph 1; and tidelands fronting Ludlow Bay Village and Lt I Ludlow Beach T"I"s Complete legal description is on page .. ___ Q xhjbit�A) of document. Assessor's, Property Tax Parcel Account Numbers: Sec :tkLtaphjne _]jt,No. I hereto. 1eference to Related I)ocuinent: A.T. No. 435974 (Development Agreement) AT. No, 536369 (Corrected Amendment No, 1) �)WT2292NW4 0065364-000016 AMENDMENT'NO. 2 1-110 POR'f LIJI)LOW DEVELOPMEN17AGREEMEN17 THIS AMENDMF.NTNO. 2��.� PORT LUDLOW DEVELOPMEN"FAGREEMENI' (this "Amendment") is rnadc this 13 day of jj,�/A � 2013, by PO- If Zt ......... . 'R Y L,Ul)[,OWA,SSOCIA"['E',Sl.,L,C,aWa,shi�ngtc)nliniitedli .)Ilitycoiripa,tiyat'idC)I,,YMPIC WATER AND sE,'VER, INC., a Washington corporation (collectively "PL,,A"), and JEFFERSON COUNTY, a political subdivision ofthe State of Washington (the "COUI-lty"). This Amendment amends and modifies that certain Port Ludlow Development Agreement dated May 1, 2000, betweenPope Resources, Olympic Property Groupl...LC, Olympic Resorts I...,LC, 01yrnpic Water and Sewer,'Inc., and Olympic Real Estate Development LLC (collectively G4pope-) and the County, which was recorded in the real property records of Jefferson County, Washington, under Auditor's File No. 435974, as amended by Corrected Amendment No. I to Development At dated and effective July 7, 2008, which was, recorded in the real property records of Jefferson County, Washington, under Auditor's File No. 536369 (as amended, the "Agreement"). REC1'rALS A. 11e Agreement is a development agreement under RC W 3 6.70B. 170 and, Jefferson County Code (JCC) 18,40,850. lope and the County made the Agreement effective May 8,2000, PLA is thc—issicS."U,-and successor to Pope under the Agreement. r A, A al r� -F real propertyri npd by P T A &) Ti r] B1he Agreement govems e �v F," � n f n located in the approximately 1,200 -acre Port Ludlow Master Planned Resort (MPR), which is a master planned resort designated by Jefferson County in 1998 under the authority of RCW 36 70A.361 C. Adverse econornic conditions in Jefferson County and throughout the rest of the nation and the world since 2008 have significantly reduced the demand for real estate, delaying, the period of tirne between the commencement and, completion of real estate development projects. Ttlese imlmets are especially severe in resort, communities like the Port Ludlow MPR. The Washington State 1,,egislature recognized this impact in 2010, when it amended R(',W 58,17,140 to extend the generally applicable preliminary plat vesting period from five (5) to seven (7) years. As amended, RCW 58 17.140 currently provides in part as follows: "A final pter shall be submitted to the legislative plat meeting all requirements Of this ch,abody of the city, town, or county for approval Within seven years of the date of preliminary plat approval. Nothing I any city, town, or county frorn adopting by coritairled in this section shall act to Prevent ordinance procedures which would allow extensions oftime that rnay or may not contain additional Or altered conditions and requirernerits." D. PLA and the County desire to extend the vesting period for preliminary plat approv(11s relc1tin' to the PLA Property, as authorized by RCW 16.70- 170(3)(i) (development I f stan&irds set forth in development agreements include "[a g p I build -out or vesting or �,jppllcablc, standards"). 2 1.)W9 2`,ry,�,IUv,[ o06`,,3&d !)000I d' E. The Agreement expires May 8, 2020, twenty (20) years after its effective date. The build -out of the PLA Property currently is expected to occur over the next six (6) to twelve (I 2) years, PLA and the County desire to extend the term of the Agreement, as contemplated by Section 3,11 of the Agreement ("the parties acknowledge that modifications to the proposed development will occur during the build -out period in order to achieve a variety of purposes," including; responding to changing market needs), and as authorized by RC W 3 6.70B. 17 0(3)(i), F. This Amendment was the subject of a fifteen (15) day cornment period, which ran 2013, to 2013, As required by frorn IAC W 36.7013 200, a public, hearing was held before the Jefferson County Board of County Commissioners on 2013. The Board of Courity Commissioners reviewed and took official action adopting this Amendment by ordinance/resolution # on _0 2011 NOW, THEREFORE, in consideration of the mutual covenants, conditions, and agreements of the parties, it is agreed by and between the parties that the Agreement shall be amended and modified as follows. AGREEMENT 1. Defined 1, erms. The following terms used in this Amendment shall have the following meanings: "PLA Property" means the real property legally described on Exhibit A attached hereto, which comprises those portions of the Pope Property that are owned of record by Pl,',,A and located within the Port Ludlow MPR as of the effective date of this Amendment. All references in the Agreement to "Pope Property" shall mean "Pt..,A Property." 2. 11'reliminarY Plat Vesting Period. Each preliminary Plat approval relating to any portion of the PLA Property, including without limitation the Preliminary Plat of Olympic Terrace Division 11, Jefferson County File No. SUB05-00003, and the Preliminary Plat of Ludlow Cove Division 11, Jefferson County File No. SUB07-0003 8, shall expire tern (10) years after the date of approval, subject to potential extensions as provided in the applicable subdivision regulations. A final plat meeting all requirements of the applicable development standards shall be submitted to the Board of County Commissioners for approval within ten (1 0) years after the date of preliminary plat approval uriless such period is extended as provided in the applicable subdivision regulations. This period of time shall apply even if it expires after the tem, of the Agreement. 3. Term of Agreement.The term of the Agreement shall be extended five (5) years and shall expire May 8, 2025. 4. riffect of Aniendment. This Amendment amends and modifies the Agreement and shall be effective as of the date of mutual execution and delivery hereof. In the event of any conflict between the Agreement and this Ainendinent, this Amendment shall control. Capitalized terms riot I - eement, Except as otherwise defined herein shall have the meanings given them under the Agr contained within the Agreement and this Amendment, there are . no other agreements or understandings between PLA and the County relating to the Sub , ject matter of the Agreement and this Amendment, The Agreement Is hereby confirmed and ratified. 4D DWT 229276SA 0065364-00001 6 FNWl'rNL ESS WHEREOF, the parties hereto have rautually have executed and delivered this Anaerldment. JEFFERSON COI. N'FY Jefferson County Board of County Commissioners By— - — - - - -- ------------ By By APPROVE'D AS,ro FORM: ---------- pro'iecuting Attorney Director I)cpartment, Of Ugnmunity Development PORT' LUD I..,OW ASSOCIA11S I..,LC, a Washington limited liability company By Its President OLYMPIC WA1`ER AND SEMER, FDIC'. By t�� .. . . . ... . ........ ... . .. .. .... . ....... . . .... . . .. . .... ..... . .. ... . .... ... Its Presiclentll�:--- - -1 5UM G)W 1 EXHIBITS: A -- Legal Description of PLA Property STATE OF WASHINGTON ) ss. couNTY OF JEFFERSON On this bl- f tl -L 2013 m , before e, a Notary Public in and for the -/,� day o 'L State of Washington, persona'F1'y'-"a'pp;-L-d 1 personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument, on oath stated that he or she was authorized to execute the instrument, I and acknowledged it as the �'C . ...... . Port Ludlow Associates LLC, to be the free and voluntary act and deed of said limited liability company for the uses and purposes mentioned in the instrument. WHERI-'?OF, I have hereunto set racy hand and official seat the day and year first OTARk NOTARY PUBLIC an and fort State o was ington, P' USresiding at AZ . ...... e, 'Z:' My appointment expires Print Name.r rc 11// OF \015 ON . . ....... . ...... ... . ..... - -- — --------- 1'1//i1t1j1W0\\ STATI" OF WASHINGTON COUNTY OF JEFFERSON this pt� for the On _t day of ------ - 1-11-1--1 2013, before me, a Notary Public in and f State of Washington� personally appeared L &.-vp .......... . . .. .... personally .j known to me (or proved to me on the basis of satis6ctory evidence) to be the person who executed this instrument, on oath stated that he or she was authorized to execute the instrument, of Olyrripic Water and and acknowledged as the Sewer, Inc,, to be the free and voluntary act and deed of said corporation for the uses and purposes mentioned in the instrument. IN OF, I have hereunto set my hand and official seal the day and year -NI first abov,,tvfen. ZZ : �OT UP :7- UC in and for the'State of ashington, ;A U B 00 NOTAIRY PUB, 0 Z�' A g at WAS DWT22927680 Ui)65364-00001 6 My appointment expires . . . . . ....... .... 1-1 ... .. ..... ....... ... Print Narne STATE OFWASHING , PON ) ss. Co�jNj'y OF JEFFERSON f h -u a 20 IV.,, before me, a Notary Public in arid t"o r the On this 3 �y o .- � ...- w�4 ---_5 1 Igtorl, personally appe'Ared State of Wash" and '—Tki- -,.d " I-- personally no tome (or Droved to me on the basis of satisfactory evidence) to be the persons who executed this . instrument, On oath stated that they were authorized to execute the instrument, and acknowledged it as the three members of the Jefferson County Board of County Cornmissioners to be the free and V01UDtarY act and deed of said Board, acting in their official capacity representing Jefferson Cotinty, Washington, for the uses, and purposes mentioned in the instrument. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. J -U N00 �oUjqk EV. 09)W2014 E P U B 00 C) ......... I [),,V,[, �, (.,g v�j (jo,,'� 1364,0100(h 16 , N0TAJR'Y PUBLIC in and for the State of,Ahington, residing at My appointment expires PrinNm t ae 0-0 Z err_/'Iz � I - —L — - .4". en�.r. sarwr� waM...ns.s �rsw rn�wa .. 19b.W .hw .a«« 'INND I �NiF► �.R�MVylq 11:44A thereafter approve or disapprove the preliminary hong plat.' the Sord's approval of the preliminary long plat and supporting submissions shall furnish a firm basis upon which the applicant may proceed with development of the long subdivision and preparation of the final long plat in compliance"wvith these regulations, and in accordance with tiny conditions of approval imposed by the Board; or b. If, after considering the matter at a public meeting, the Board deems a change in the Hearing Examiner's recommendation approving or disapproving any preliminary plat necessary, the change of the recommendation shall not be Made until the Board conducts its own public hearing and thereupon adopts its own findings and thereafter approves or disapproves the preliminary long plat. Such public bearing may be herd before a committee constituting a majority of the -Board. if the hearing is before a committee, the committee shall report its recommendation on the matter to the full Board for final action.. ,. The Clerk of the Board shall keep records of the public meetings and public hearings set and held by the Board which shall be made available for public inspection. 3. In any event, the Board shall take action on a preliminary long plat within ninety (94) days of the date of the fling of a completed application unless the applicant consents to an extension of the' time period PROVIDED, if an environmental impact statement is required, the ninety (90) day period shall not include the time spent preparing and circulating the environmental impact statement.. 4. The Planning Department shall notify the applicant of the Board's action by mail as soon as practicable after the action. The notification shall specify any conditions imposed, or in the event of disapproval, the reasons thereof. 5. The Board's approval of the preliminary lung plat and supporting submissions shall furnish a firm basis upon 'which the applicant may proceed with development of the long subdivision and preparation of the final long ,plat in compliance with these regulations and in accordance with any conditions of approval imposed by the Board.. 5. 1a r j n I h ' Ripon receipt of preliminary long plat approval, the applicant may proceed with detailed engineering plans for construction of roads, bridges, utilities, drainage works and other required improvements. After submission of plans to the departments and agencies having jurisdiction, and receipt from them of the necessary permits and approvals, the applicant may proceed with construction PROVIDED, arrangements shall be made for inspection 'by the department of Public Works, and by other departments and agencies having jurisdiction.. 212 i=xtration; Approval of a preliminary luting plat shall expire unless the final long plat is submitted in proper form for final approval within thirty-six (36) months, unless an :extension is grunted by the Board upon an. C 111011111111 NI #III lu 11111111 IM111 pose.. 30 Of 641 4frersen ematy. MA POPE *am*= Mr 12000 11:40A 699,00 affirmative recommendation of the Planning Departmentat least thirty (30) days prior to the date of expiration. Applicants may submit written extension requests to the Planning Department at least thirty (30) days prior to the date of expiration. The Board may grant extensions not to exceed twelve (112) months; upon a Showing that the applicant has in good faith attempted to submit the final long Plat within the initial twelve (1 2) month period. long Plat upon which preliminary approval has expired shall be resubmitted and processed as a new application. 6.21 1. The final long plat and supporting data shall be prepared in accordance with Appendix D of this ordinance, and shall be submitted to the Planning Department. When the Hearing Examiner has conducted a public hearing prior to preliminary long plat approval, the final long plat and supporting data shall be submitted to the Planning Department—no later than thirty (30) days prior to final review by the Board. 2. The Planning Department shall cause the'final long plat to be circulated to the Department of Public Works and the Health Department for their individual approval in accordance with the conditions for final long plat approval and the requirements of this, and other applicable laws and\or ordinances. The Planning, Department shall provide a copy of the Plat to the County Assessor who shall segregate the assessed valuation of the property being platted and furnish same to the County Treasurer for segregation of taxes, 3. When the Hearing Examiner has conducted a public hearing prior to preliminary long plat approval, the Planning 'Department shall check the final long plat and supporting data for compliance with the conditions for final long plat approval and shall prepare a written recommendation for the advice of the Board. The Board shall not consider approval of the long plat until the recommendations of the Health Department, the Department of Public Works, the Planning Department, and other relevant government agencies are in hand. 4. The Health Department and the Department of Public Works shall promptly notify the Planning Department of any obstacles or problems which prevent or delay approval of the long plat, and the Planning Department shall thereupon notify the applicant. In all cases where a final long plat is not approved within sixty (60) days, for long plats consisting of five (5) to fourteen (14) lots, or ninety (90) days for long plats consisting of fifteen (15) or more lots, the Planning Department shall either return the long plat to the ,applicant with a statement of the reasons approval is denied, or shall secure a written authorization from the applicant permitting the long plat to be considered for a longer period. 5, After approval by the Health Department, the Department of Public Works, and the Planning Department, the taxes and delinquent 37