NEWCASTLE CITY HALL NEWCASTLE WAY, SUITE 200 NEWCASTLE, WA 98056

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1 CITY OF NEWCASTLE PLANNING COMMISSION MEETING MINUTES APRIL 15, 2015 NEWCASTLE CITY HALL NEWCASTLE WAY, SUITE 200 NEWCASTLE, WA The following is not a verbatim transcript. An audio recording of the meeting Is available. REGULAR MEETING 7:00 P.M. CALL TO ORDER The Planning Commission of the City of Newcastle met in the Council Chamber in City Hall in Newcastle, Washington, on Wednesday, April 15, The meeting was called to order at 7:00 p.m., with Chair Allen Dauterman presiding. ROLL CALL On roll call the following members were: Present Chair Dauterman, Vice Chair Tom Magers, and Commissioners Jackie Steinke, Charlie Gadzik, Elizabeth Thompson, Orville McDonald and Karin Blakley. The meeting was quorate. Other Newcastle officials and staff present were: Community Development Director Tim McHarg, Senior Planner David Lee, City Clerk Sara McMillon, and Councilmembers Rich Crispo, Gordon Bisset and Carol Simpson. PLEDGE Chair Dauterman led the pledge. PUBLIC COMMENT No public comment was available. COMMISSIONER COMMENT Commissioner Magers welcomed new Planning Commissioner Jackie Steinke. PLANNING COMMISSION MEETING April 15, 2015 Page 1 of 6

2 REPORTS Chair Dauterman said in conducting research on density in Newcastle's Community Business Center (CBC), he found that the current density created in 2011 was the result of a recommendation from an architectural firm in Seattle. The consultant's recommendation in 2011 was for a higher density than what the City currently allows. Community Development Director McHarg reported that staff presented the Planning Commission's recommended code change establishing a maximum residential density of 48 dwelling units per acre in the Residential-18, Office and Community Business zoning districts within the CBC overlay zone at the April 7 City Council meeting. At the meeting, the owner of the Del Mar Apartments was concerned that he and other property owners had not received notification. Mr. McHarg said property owner notification is not required for a zoning code text amendment, but the Council shared the property owner's concern. The Council voted to postpone action to the April 21 meeting to allow additional time for public notification. Director McHarg noted that the scoping period for the Puget Sound Energy (PSE) Energize Eastside project Environmental Impact Statement (EIS) process is set to begin April 30. One of the scoping meetings will be held at Newcastle Elementary Thursday, May 28, from 6 p.m. to 8 p.m. He said as soon as additional information is available, it will be distributed. Chair Dauterman asked if PSE could apply for city permits prior to completion of the EIS, and Mr. McHarg replied that this would be premature and unlikely, but PSE could apply for permits at any time. FINAL AGENDA MOTION: Commissioner McDonald moved to approve the final agenda. Commissioner Blakley seconded. VOTE: 7 in favor, 0 against. Motion carried. MINUTES MOTION: Commissioner Steinke moved to approve the minutes of the March 18, 2015, meeting as presented. Commissioner Blakley seconded. VOTE: 7 in favor, 0 against. Motion carried. GENERAL BUSINESS Scope for Update of the CBC/CBC Master Plan Planning Director McHarg summarized his proposal. He said his goal is not to produce a "zone it and they will come" plan that is out of touch with conditions. He is proposing the commission look at a much smaller area with more defined characteristics. The first step is to discover the vision of what people want, and then conduct an analysis to find out if it is feasible to pursue that vision. If it isn't feasible, then the vision can be adjusted. The City can also identify some different tools to make the plan implemental:4e. A different way of engaging property and business owners than used by the City in the past is proposed. A focus group or committee representing a cross-section of the community can provide input to the Commission. PLANNING COMMISSION MEETING April 15, 2015 Page 2 of 6

Commissioners discussed public engagement. Commissioner Thompson said in the past she has been involved in three different update processes for the CBC/LBC plan.

3 Commissioners discussed public engagement. Commissioner Thompson said in the past she has been involved in three different update processes for the CBC/LBC plan. In the past, the Commission used a subcommittee that engaged business owners in a dialogue about proposed changes. Subcommittee members then reported to the full Commission. Letters also were sent to property owners, and meetings held. She said the subcommittee method seemed to work well. Commissioner McDonald suggested that the community youth council and Community Activities Commission could assist with public outreach. Director McHarg agreed that the City can reach out to community groups and networks, such as homeowner's associations. The outreach process will be carefully designed to solicit input from a broad spectrum of the community. There may be people living in unincorporated King County near the city limits who may have valuable input as well, Commissioner Dauterman said. Parent Teacher Associations may also be good groups to involve. Commissioner Steinke discussed outreach through neighborhood groups on social media. Vice Chair Magers discussed the need for an updated economic analysis of the possibilities for development in the downtown sector. The vision in the current master plan is from the year 2000, and was based on economic and development assumptions from the point of analysis, 15 years ago. The City needs analysis of what is currently taking place on which to base its decisions. There may be too many dwelling units in the CBC or too much commercial, but without the analysis, making a determination would be difficult. Chair Dauterman said he would be in favor of balanced uses. Vice Chair Magers said one possible outcome of analysis and discussion is a Commission recommendation concerning a predominant zoning type in the downtown sector. He said he has a concern about required mixed use percentages where mixed use is allowed. Mr. Magers said two Councilmembers at a City Council meeting did not agree how the City code would be applied for redevelopment in the downtown sector. He asked if there is a trigger in the existing code, for redevelopment of the Safeway site, requiring them to move their building to the street front. In response, Mr. Lee said this would only occur if the site were to be completely demolished. Councilmembers don't seem to be able to agree on the interpretation, and so it may be difficult for the Commission to understand, Mr. Magers said. He requested additional information be provided. Vice Chair Magers said he can see the area covered by the plan as the CRC sector and the Lake Boren sector, and all the area to the north. Commissioners may need to discuss what the boundaries of the planning area should be. Commissioner Gadzik said the plan should be based on what is feasible, not only on what is desired. If the City knows what the economy is pushing for, then the demand can be harnessed to the direction that is best for the city. The Commission should know this before it can do its work. Planning Director McHarg agreed that just because the City wants something, doesn't mean it can be done. There is a big economic development component embedded into this plan. Newcastle may have some opportunities to capture more of the traffic that drives by the area on Coal Creek Parkway. Concerning the CBC area, Mr. McHarg commented that the city has had mixed use industrial zoning there for some time, and the market may not be favorable for this zoning type. An analysis may support elimination of this zone. Chair Dauterman discussed possible incentives for redevelopment. This type of tool could be a part of implementing the plan. Planning Director McHarg asked for some initial thoughts on a vision for the CBC. Commissioner Blakley asked if there are standards for the amount of retail establishments communities should plan for. There is no level of service standard for retail in an area such as this, Mr. McHarg said. Some types of retail have significant enough demand to support them, and some are not feasible, and this is the kind of information a market study would provide. Avalon Bay does not know what types of businesses will locate there, because prospective businesses will want to see what conditions are like when those buildings are completed. The retail will likely not be PLANNING COMMISSION MEETING April 15, 2015 Page 3 of 6

destination retail, but will appeal to people living in the development and the local community. Avalon will create a pedestrian friendly atmosphere.

4 destination retail, but will appeal to people living in the development and the local community. Avalon will create a pedestrian friendly atmosphere. Chair Dauterman said it seems the city has been based on a vision of a small bedroom community. This aspect is what attracted people to live here, he said. It's not in the city's best interest to try to change that, but some additional amenities can be provided without losing this appeal. Any redevelopment should adhere to stricter quality control. Setting the bar higher than some adjacent communities should be a part of the vision, Chair Dauterman commented. Newcastle has the demographic base to support higher quality. Commissioner Steinke said she likes the look of downtown Kirkland, where there is a mix of older and newer buildings. Commissioner Gadzik said he likes that vision of an attractive urban environment, with some uniquely Newcastle design elements established through design standards. Kirkland has very strict design standards, Chair Dauterman said, and Newcastle may not want to follow that example but use it as a guide. Mercer Island also may be a good example to follow, he said. In this city, there is greater density than in Kirkland, and each property has specific requirements for development. Mr. Dauterman said he thinks Newcastle may be able to afford to absorb density, but transportation will guide this the most. In Vancouver, British Columbia, there is a variety of heights, which could work well in Newcastle. Director McHarg said some people think density is attractive, and some don't. Quality is one part of the vision, but what the City is currently struggling with is the fundamental density and height question. Overall density will be driven by transportation constraints. Mr. McHarg said what he has heard loudly from the community is that six stories is not appropriate in Newcastle. These are the issues that need to be articulated and understood. Newcastle is not in the same category as Kirkland and Mercer Island, because the city doesn't have the same property values and demographic. It seems Newcastle really is a small bedroom community, and people want to maintain that. Director McHarg said he thinks Newcastle does have the opportunity to grow, yet maintain that small suburban community feel with a bit more quality. The community is unique in that it is landlocked and is very small. It seems the vision is improving on what the city has, and growing it, without major changes to what it is. How to achieve this vision is the question. Chair Dauterman said he does not think Newcastle should copy other cities, but raise the bar on quality. For example, old downtown Redmond is fully developed, but this city continues to redevelop to a higher standard. Commissioner Gadzik said Newcastle wants to keep what is unique, but isn't able to articulate what makes Newcastle unique. It's a small bedroom community, but isn't a small town in the country. Looking at how the region is developing, what does the future look like in Newcastle? Mr. Gadzik said he chose Newcastle because he has close access to Seattle and Bellevue, but can live in a place with a small town feel. Driving out of the city to services is arduous, and so it would be nice to have more local businesses. He said cities around Newcastle are growing, but Newcastle is not growing at the same pace. The City should retain key things that make it special, but also look towards the future. Attractive new buildings downtown will add to the entire Newcastle community, Commissioner Blakley commented. She agreed the City should look at what is happening throughout the region, as well as listening to what Newcastle residents want. What makes Newcastle special is its sense of community, regardless of building structure. If you ask most people about Newcastle, they wouldn't talk about the downtown core, Commissioner Gadzik said. Density isn't necessarily contrary to a vision of a small town community, but should be effectively managed in transition, boundary areas. If boundary areas are well managed, density can exist in the downtown core, and something can be built with Newcastle character that is more memorable than what is currently present. Development in Seattle and Bellevue will make the Newcastle community more attractive in the future, Chair Dauterman said. One of the greatest attractions to Newcastle is its location. Director McHarg noted that PLANNING COMMISSION MEETING April 15, 2015 Page 4 of 6

5 the eastside is aging, and many people are aging in place. This may be a huge factor for Newcastle. Because of the amenities and value of Newcastle, aging people will choose to stay here. Commissioners should consider what types of visualization tools are needed to engage the Newcastle community in developing a vision for the downtown area. People want to understand what a six-story building looks like, Comparative examples may be effective. The City will want to keep the conversation going within the confines of the project scope, but will not just want to tell people what they want to hear. Mr. McHarg asked Commissioners if they would like to develop a vision and then test it, or obtain some baseline data and use that to inform what the general parameters might be, getting to the point of engaging the community. Commissioner McDonald said he would like to see some preliminary data first. Mr. McHarg said some preliminary analysis and preliminary conversations with property owners about redevelopment to see what might be possible could take place. He asked if the Commission would like to use a steering committee. Chair Dauterman suggested developing visuals, forming a subcommittee, and conducting some kind of presentation. Director McHarg said he would like to scope the project so that a consultant can perform the work. The City does not have the staff power to drive the process, and a stakeholder driven process would be effective if the Commission is comfortable with receiving recommendations from a steering committee. Vice Chair Magers said he would be in favor of a subcommittee structure if the subcommittee represents a variety of stakeholders. If the group is made up of downtown property owners only, the recommendation will be one-sided. Director McHarg discussed the purpose of the CBC/LBC plan. He said the document is a plan, and is not a zoning scheme or a set of design standards. The plan is a subarea plan taking a more defined look at a smaller area than the overall Comprehensive Plan, It is a policy document that will set the stage if the City wants to redraft zoning regulations or develop design guidelines. Vice Chair Magers added that he believes the document must be updated so the Commission can make valid recommendations in regards to zoning and design guidelines for the downtown sector. Mr. McHarg said he is gathering input from the Commission on a scope of work and what process the Commission would like to use. Vice Chair Magers said he views this as a reboot of the plan. The slate should be wiped clean, but the new plan should contain the same level of detail with new economic and market data to support it. Commissioner Gadzik asked what comes first, the vision or the process. He said the Commission should have its vision as the process begins, and test it against other groups. Something should be moved along to the Council tonight, Vice Chair Magers said. MOTION: Vice Chair Magers moved to request funding from the Council to perform a market research analysis of the downtown sector for all aspects of land that was documented for the CBC in the year Commissioner Steinke seconded. VOTE: 7 in favor, 0 against. Motion carried. Chair Dauterman asked how the steering committee is put together. There are a number of ways to go about it, Mr. McHarg responded. It would be effective to retain a consultant who will inform the process. Mr. McHarg said he will take the Commission's input to the Council with additional information he gathers. He said he would prefer a steering committee to provide for a greater cross-section of the community and because the group will not have to follow a rigid monthly meeting schedule. While the project to update the plan moves forward, Commissioners will take a look at utility regulations. MOTION: Commissioner Gadzik moved to add 30 minutes to the meeting. Vice Chair Magers seconded. VOTE: 7 in favor, 0 against. Motion carried. PLANNING COMMISSION MEETING April 15, 2015 Page 5 of 6

6 PUBLIC COMMENT Councilmember Crispo addressed the Commission as a resident of The Highlands neighborhood in Newcastle. He said Commissioners should consider why people live here, why Commissioners came here, and what makes Newcastle special. This will help determine the vision. City residents don't want to see high rises here. The City can't tell people what to build and what businesses come in, but the vision of the Planning Commission counts. He said he thinks the Commission should come up with a vision and then take that out to the community. He thanked the Commission for its efforts. PLANNING CALENDAR Chair Dauterman said he will provide a report at the Tuesday, May 5, 2015, City Council meeting. The next regular Planning Commission meeting will be held Wednesday, May 20, Commissioner Steinke said she thinks the Commission should talk about what Newcastle means at the next meeting. ADJOURNMENT 9:05 p.m. The meeting was adjourned. PLANNING COMMISSION MEETING April 15, 2015 Page 6 of 6

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