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PORT LUDLOW ASSOCIATES
141 0011005
LAWYERS
II
Davis Wright Tremaine LLP
ANCHOaACl! Bl!LLEVUE LOS ANGELES NEW YORK PORTLAND SAN PIlANCISCO SiATTLE 5HhNCHAJ wASHINCTON. D.C.
MARCO DE SA E SILVA
DTRJ;CT (206) 628-7766
ma rc 0 d c sa C 5 j 1 va@ rJ:wt. ~ 0 In
2600 CENTURY SQUARE
150 l:rOT,JRTH AVENUE
SEATTLe. wA 98101-1688
TEL (206) 622.HSO
FAX (206) 628-7699
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August 4, 2004
Glen Huntingford, Commissioner
Pat Rodgers, Commissioner
Dan'Tittemess, Commissioner
Board of County Commissioners
Jefferson County Courthouse
Port Townsend, Washington
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VIA HAND DELIVERY
JEFFERSON COUNTY
OEPT. OF COMMUNITY DEVELOPMENT
Re: Port Ludlow Associates LLC: Port Ludlow Resort Project at Ludlow Bay Village
Honorable Conunissioners:
Introduction
I represent Port Ludlow Associates LLC. I am writing in response to your resolution yesterday
to conunence a declaratory judgment action to resolve the over-water construction issue involved
in PLA's proposed resort development project at Ludlow Bay Village. I respectfully request, for
the reasons set forth below, that you reconsider your resolution and that Jefferson County not
commence litigation at the present time.
Project and Applications
PLA proposes to construct 101 attached or detached residential dwelling writs, 100 marina
moorage slips, a new restaurant, a marina office and retail store building, a private recreational
facilityt a maintenance building, a central receiving dock, an emergency helipad, and surface
parking areas.
PLA has submitted the following applications relating to tlUs project (collectively, the
"Applications") :
1.
Major Resort Plan Revision dated June 25, 2003, revised April 29, 2004;
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PORT LlmLOW ASSOCIATES
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Board of County Commissioners
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2.
Plat Alteration Application dated April 30, 2004 (DCD File No.
);
3. Shoreline Substantial Development Permit Application dated
2004 (DeD File No. SDP04-00028) (covers all proposed upland improvements); and
4. Shoreline Substantial Development Permit Application dated
2004 (OeD File No. SDP04-00238/MLA04-00191) (covers Building 600 only).
The foregoing list of Applications is intended to comprise all land use and subdivision
applications by PLA now pending within the Plat of Ludlow Bay Village.
Over-Water Construction Issue
Four of the proposed residential buildings are to be located over portions of the existing artificial
pond now located within the property. We note that the Jefferson County Shoreline Master
Program prohibits residential structures "located on or over marshes, bogs, swamps, lagoons,
tidelands, ecologically sensitive areas or water areas subject to this Master Program." Shoreline
Master Program Section 5.160.
However, PLA contends that this development standard applies to wetlands, shorelines, and
shorelines of statewide significance - the types of bodies of water that the Shoreline
Management Act was intended to protect - and not bodies of water exempted from shoreline
regulation because of their size or artificial natute, such as stonn water detention pondsJ
swimming pools) and this artificial pond. (By definition under both the Shoreline Management
Act and Jefferson County Shoreline Master Program, the artificial pond is Dot wetlands,
shorelines, or shorelines of statewide significance.)
A field biologist for the Washington State Department of Ecology has taken the position that the
artificial pond should be protected from over-water construction under the Shoreline
Management Act because it is a body of water located within 200 feet of the shoreline. At least
three opponents of the project share that view.
Concerns About Declaratory Judgment Action
I understand the potential benefits of a declaratory judgment action. The action will resolve an
important issue. However, I have the following concerns about the proposed action:
1. Judgment May Not Be Binding Against All Affected Persons. I believe the
judgment will be binding only against parties to the litigation. Jefferson County
therefore vvill have to name individual citizens and citizen organizations as
defendants or they will not be bOWld by the court's decision. Howevert after the
litigation is concluded, new residents will move to Port Ludlow, and new citizen
groups may be formed, and the judgment probably will not be binding against them.
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2. Naming Individual Citizens and Citizen Groups as Parties May Upset Them. It
probably will upset many individuals to be named as defendants in the litigation.
Many of them will have done nothing more than submit comments on the
Applications, and to be named as defendants in litigation means they may have to
incur attorney fees, disclose the litigation in credit applications, and incur other
difficulties.
3. Judgment May Not Be Binding in Later Appeals of Shoreline Permit Decisions.
Even if a superior court judge agrees that the over-water construction rule does not
apply to bodies of water that are not subject to the Shoreline Management Act, a
different judge hearing an appeal of the shoreline permit subsequently issued for the
proj ect will not be bound by the first judge's decision and lawfully can reach the
opposite result.
4. Declaratory Judgment Action Will Delay the Project. Litigation will delay the
project. Although we accept the possibility that the project may be delayed for years
by appeals, it would be unfair to put PLA through that process twice: once for the
declaratory judgment) the second time for appeals of the pennits themselves.
s. Declaratory Judgment Action Might Be Expanded to Include Claims Against the
County and PLA. The proposed litigation could begin as a declaratory judgment
action, but it might be expanded by the defendants and intervenors to include new
claims, even over the objections of Jefferson County and PLA. The litigation could
delay the resolution of the substantive issue and increase the conflict relating to the
project.
SEA 1532947vl 65364-2
6. PLA Needs Additional Time to Discuss the Over-Water Construction Issue with
the Department of Ecology. PLA has asked a biologist to prepare a report on the
artificial pond, to detennme the environmental protection purposes of the over-water
construction rule and to analyze whether those purposes are served by prohibiting
construction over the pond. When that report is completed, and if it supports PLA's
position, PLA intends to meet with the Department of Ecology and to ask it to
reconsider its decision. If the Department of Ecology reconsiders its decision, then a
declaratory judgment will be unnecessary. But if the action already has been
commenced and citizens have been named as defendants or have intervened, then
even a reversal by the Department of Ecology will not bind the citizens, and a
settlement with the Department of Ecology will be impossible.
7. PLA May Make Design Changes that Moot the Over-Water Constrnction Issue.
There may be design alternatives available to PLA for the four buildings affected by
the over-water constru.ction controversy. For example, PLA may propose to reduce
the size of the artificial pond, an idea that has been both proposed and recommended
in the past. Reducing the size of the pond will reduce the temperature and improve
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the water quality of the pond. PLA needs time to explore those alternatives. Design
revisions that eliminate the over-water construction issue would make the litigation
unnecessary.
8. Declaratory Judgment Action Disregards Established Land Use Process. PLA
has the right to a prompt hearing on its Applications before an impartial County
hearing examiner. A declaratory judgment action undennines that right.
Based on these concerns, I believe that a declaratory judgment action will not accomplish its
intended purpose and may cause wrintended damage to Jefferson County and to PLA. It also
may upset those citizen defendants and community organizations named as co-defendants.
Deferral of Applications
If Jefferson County will consider rescinding its resolution to commence a declaratory judgment
action, then PLA will agree that the County may defer until further notice from me the
processing of the Applications described above, including without limitation the publication of a
final Supplemental Environmental Impact Statement under the State Environmental Policy Act
and the commencement of the agency and public comment periods relating to the applications if
such comment periods have not already commenced:
This deferral will extend (or ''toll'') the applicable time periods for Jefferson County action on
the applications, including time periods arising under RCW 36.70B.070 (County determination
of completeness within 28 days of application) and RCW 36.70B.080 (eounty decision within
120 days of complete application) by the number of days after the date of this letter until the date
on which I give notice to Jefferson County requesting that it recommence the processing of the
applications.
This deferral will allow PLA sufficient time to resolve the over.water construction and other
design issues raised during the SEP A environmental review process. It will save Jefferson
Connty and PLA the significant administrative resources that will be dedicated toward
processing and reviewing the Applications until the over-water construction and other design
issues are more clearly resolved.
In the meantime, PLA would continue discussing design and enviromnental review issues with
Jefferson County personnel as it moves toward recommencing the processing of the Applications
sometime within the next few months.
Withdrawal of Shoreline Permit Application (Building 600 Only)
Without regard to whether you rescind your resolution to commence a declaratory judgment
action, PLA agrees to withdraw its Shoreline Substantial Development Permit Application dated
.2004 (DCD File No. SDP04-00238/MLA04-00191) (covers Building
600 only). This application will be resubmitted at a later date with a moditied design,
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Conclusion.
As you know, there is a small but very vocal group of opponents to this project. Within the past
few months, this small group has made many arguments in opposition to the project. They have
criticized past actions of Jefferson County. They have attempted to make the project a political
issue, when by law it is a quasi-judicial proceeding tried by the eounty hearing examiner, in
which neither the Board of County Conunissioners nor the County Administrator is involved.
They have attempted to subvert the process and to hurt the project by hurting Jefferson County
itself.
All that I can offer you in this letter is the assurances that we understand the arguments that have
been made, that most of the argwnents lack merit, that most of the argwnents that do not lack
merit are not relevant to the project, and ofthose arguments remaining PLA will find a way to
design the project to resolve the issues. The project will be good for the community and it will
comply with your ordjnances. I think we can trust the examiner to make certain of that.
For the foregoing reasons, and based on PLA's agreement to allow Jefferson eounty to defer the
processing of the Applications until further notice from me, to allow PLA sufficient time to
resolve its design issues, I again respectfully request that you reconsider your resolution of
August 3, 2004, to commence an action for a declaratory judgment.
Thank you very much for your consideration.
Sincerely yours,
~!~e~
Marco de Sa e Silva
cc: John F. Fischbach, Jefferson County Administrator
Al Scalf, Director, Jefferson County Department of Community Development
Michelle Farfan, Senior Planner, Jefferson County Department of Community Development
David Alvarez, Office of Jefferson County Prosecuting Attorney
Greg McCany, Port Ludlow Associates
Mark Dorsey, Port Ludlow Associates
Lyn Keenan, Reid Middleton
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