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HomeMy WebLinkAbout12-022 Authorizing Implementation of Agreement Addressing Issues of Mutual Concern including Kah Tai Lagoon Property and City Docks (2) City Resolution No. 12-022 Port Resolution No.575-12 Page 1 of 4 STATE OF WASHINGTON City of Port Townsend Port of Port Townsend A Joint Resolution of the City Council of the ) City of Port Townsend, Washington and the ) Commission of the Port of Port Townsend, ) Washington, Authorizing and Delegating to ) the Executive Managers of Each Jurisdiction ) (the City Manager and Port Executive ) City Resolution No. 12-022 Director respectively) to Execute and ) Port Resolution No. 575-12 Implement an Agreement that ) Addresses a Number of Issues of Mutual ) Concern, Including Port Owned Property at ) Kah Tai Lagoon, Resolution of Litigation ) Concerning Port Property at Kah Tai, City ) Dock and Union Wharf, and Other Matters ) The City Council of the City of Port Townsend, Washington, and the Port Commission for the Port of Port Townsend, Washington, do hereby jointly resolve as follows: RECITALS A. This Resolution addresses and provides a framework for cooperatively resolving certain matters that mutually affect the City of Port Townsend and the Port of Port Townsend and which have been the subject of discussions over a number of years. The framework is set forth in a Summary Outline (attached as Exhibit A). As set forth below,the Summary Outline provides only a framework for the resolution of these matters. Before any Settlement becomes final, both the City Council and the Port of Port Townsend must undertake further review of these matters, which will include public input. Neither the City Council nor the Port Commission has predetermined the outcome of these matters. B. The matters include the following: 1. The transfer of approximately 20 acres of property owned by the Port in the vicinity of Kah Tai Lagoon to the City for inclusion into the City's Kah Tai Lagoon Nature Park, subject to matters of record title and all applicable grant restrictions, continued maintenance of free public access to the property, and proper maintenance of the property and associated improvements. This property is described in Exhibit B, and referred to in this Resolution as the "Port Kah Tai property." This transfer implements the City's plans, including, ensuring the full 80-acre Kah Tai area remains a park (see Parks and Open Space Functional Plan). The Port Kah City Resolution No. 12-022 Port Resolution No.575-12 Page 2 of 4 Tai property is the subject of a lawsuit filed by the Port in Federal District Court for the Western District of Washington at Tacoma, Case No. 3:11—cv-05848—RBL (the "Lawsuit") contesting certain actions by the named Defendants and determinations by the UNITED STATES and the STATE OF WASHINGTON, by and through various agencies of those entities, with respect to the Port Kah Tai property. If the terms of the Summary Outline are implemented,the lawsuit would be dismissed without fees and costs to any party, and the Port property would transfer to the City and be incorporated into the City's Kah Tai Lagoon Nature Park and be subject to the LWCF's 6(f) encumbrance. The transfer is subject to the property and attendant improvements being properly maintained according to the applicable provisions as described in Exhibit A, section 1 (a)( i ). 2. The City's transfer of City Dock and Union Wharf to the Port, subject to existing recorded covenants and encumbrances (i.e., RCO grant restrictions), continued free pedestrian public access to the structures (provided that allowed commercial uses of the docks will not be precluded), and proper maintenance of the docks according to the applicable provisions as described in Exhibit A, section 1(a)(ii). This transfer allows the Port to own and manage these facilities, which are more within the Port's expertise and mission than the City's. This action may require the vacation of those portions of right-of-way necessary to convey title to the docks, and would also be accompanied by the City's repeal of chapter 5.46 of the Port Townsend Municipal Code relating to City Dock and Union Wharf use regulations and charges, which matters would become Port responsibilities after the transfer. 3. The elimination of City stormwater fees in Boat Haven. This elimination recognizes that the Port's stormwater system is independent of the City's system, and the fact that the City system does not handle stormwater which originates on the Port property. This action would necessitate City Council amendments to Chapter 13.05 PTMC to exempt the M- II(A) Zoning District/Boat Haven from stormwater fees. 4. The City's transfer of deed and/or vacation of certain rights of way in Boat Haven to the Port, and transfer by the City of a portion of the former railroad line to the Port (which portion is not being used for the Larry Scott trail and which partially bisects the shipyard). The street vacation, if approved, would be subject to maintenance of traffic circulation in Boat Haven consistent with the conditions specified in street vacation Ordinance 2487 (1995). These rights-of-way and the railroad line are graphically depicted in Exhibit C. This completes a process of vacating rights-of-way in Boat Haven, last undertaken by Ordinance 2487 (1995) which vacated a number of rights-of-way in Boat Haven, and helps ensure efficient facility management and planning within Boat Haven. 5. Changes to the nonconforming use sections in the City's zoning code, Chapter 17.88 PTMC,to allow greater flexibility in Boat Haven for legal nonconforming uses to be replaced, relocated and expanded (within defined limitations). This allows the shipyard to function more efficiently (e.g., by moving nonconforming uses away from marine-related uses so that the marine-related uses can be better served by the haul-out). This action helps City Resolution No. 12-022 Port Resolution No.575-12 Page 3 of 4 implement both Port and City plans. For example, the City's Comprehensive Plan provides that the City should "provide opportunities for manufacturing development and diversification of the local economy." ( Land Use, Goal 9. ) 6. The City's docketing, with staff recommendation, and formal legislative consideration of an overlay zone or similar land use management technique to allow, subject to a use preference for marine-related uses, non-marine-related light industrial uses as well as the retailing and wholesaling of goods manufactured on site within a defined portion of Boat Haven (i.e., the 1.3-acre former lumberyard site within the Boat Haven). An overlay zone or similar land use management technique applied to this Boat Haven property, which was historically occupied by a non-marine use (i.e.,the lumberyard), would allow for greater flexibility of uses. This action helps implement both Port and City plans. For example,the City's Comprehensive Plan provides that the City should "provide opportunities for manufacturing development and diversification of the local economy' (Land Use, Goal 9) and further provides that the City should "work closely with the Port of Port Townsend to provide for the development of Boat Haven and Point Hudson properties in a way that ensures the viability of long-term marine uses, the vitality of the area for port-related uses and compatibility with surrounding areas" (Land Use Policy 9.9). 7. Agreement by the Port to explore, as practicable, permitting for a mooring buoy field adjacent to Quincy Street Dock, a process the City initiated and that both the City and Port recognize to be of mutual interest. 8. Agreement by both jurisdictions to collaborate and mutually support each other in investigating and attempting to resolve a number of other Boat Haven issues, as follows: a. In coordination with the Washington State Department of Transportation (WSDOT)the potential to redirect Sims Way/SR 20 runoff to a location other than the Boat Haven; b. The potential to expand the developed portion of the Boat Haven to encompass the Balch Property (i.e., Blocks 32 and 33 of the Eisenbeis Addition), including the investigation of off-site wetland mitigation options; and C. The potential to relocate the Larry Scott trail to a "bluff" route alignment from the Boat Haven entrance, provided that the existing trail location, including the "spur" and restrooms are maintained. C. As set forth in the attached Summary Outline, a number of these actions are conditions to be fulfilled prior to the transfer of the Port's Kah Tai property to the City and the City's Union Wharf and City Dock transfer to the Port. The City Council decisions on code amendments, property exchanges, street vacations, and disposition of public property, and the Port decision on the disposition of the Kah Tai, have not been pre-determined and can only be made following required legislative processes including public input at public hearings. Only if the City Council approves, following applicable public processes, the conditions in the Summary Outline relating to street vacations, disposition of public property, nonconforming use code City Resolution No. 12-022 Port Resolution No.575-12 Page 4 of 4 changes, and elimination of stormwater fees, and only if the Port Commission approves the surplusing of the Port property, will the Port Kah Tai property be transferred to the City, and City Dock, Union Wharf, and property in Boat Haven be transferred to the Port, and other actions take place that are agreed to by the parties and set forth in the Summary Outline. NOW,THEREFORE, BE IT JOINTLY RESOLVED AND ORDERED by the City Council of the City of Port Townsend and the Commission of the Port of Port Townsend as follows: The City Council delegates to its City Manager and the Port Commission delegates to its Port Executive Director,the authority to execute and implement an agreement between the jurisdictions that is substantially consistent with the terms in the Summary Outline, attached as Exhibit A. APPROVED AND SIGNED THIS 21St day Of May 2012 David King, Mayor City of Port Townsend Attest: Approved as to form: Pamela Kolacy, MMC, City Clerk John P. Watts, City Attorney APPROVED AND SIGNED THIS 21st day of May 2012 At st: David H. Thompson, Secretary Leif W. Eyickson, President 14 'f T Stephen R. Tucker, Vice President �(7 r,ove"' � Carolyn A. Lake, Goodstein Law Group, PLLC Port Attorney EXHIBIT A SUMMARY OUTLINE: Port/City Staff Recommended Settlement Agreement To Address Issues of Mutual Concern (May 21,2012) 1. Escrow Account Established: a. Reciprocal Deeds. Reciprocal quitclaim deeds would be placed in an escrow account upon the fulfillment of the conditions detailed in item 2, below, closing would occur, and: L The Port would transfer the entirety of its Kah Tai property to the City subject only to the following: matters of record title and all applicable grant restrictions; continued maintenance of free public access to the property; and proper maintenance of the property and improvements; ii. The City would transfer its entire ownership interest in City Dock(excluding the Pope Marine Building) and Union Wharf to the Port,subject only to the following: existing recorded covenants and encumbrances (i.e., RCO grant restrictions); continued free pedestrian public access to the structures, provided that allowed commercial uses of the docks will not be precluded; and proper maintenance of the docks; and iii. The City would transfer the entirety of its abandoned railroad right-of-way and associated tidelands property not in use as part of the Larry Scott Trail (i.e., portions of Tax 34, APN 001104011, a vacated portion of Jefferson Street within the Boat Haven, and the old railroad "Y" south of the Boat Haven)to the Port. b. Estimated Duration of Escrow. To allow the fulfillment of the agreed upon conditions detailed in item 2 below, escrow would be anticipated to require approximately six months. 2. Conditions Prior to Closing: NOTE: The actions detailed in this item 2(a)-(d)are not and cannot be guaranteed outcomes (due to legislative process). Council decisions on code amendments, property exchanges, and street vacations can only be made following required processes(including public hearings). a. Nonconforming(NC) Uses Code Changes. The City would undertake amendments to Chapter 17.88 PTMC and/or Chapter 17.22 PTMC to permit the following NC use changes by way a Type I administrative permit (Director could require Type II): i. Allow a Similar or Less Intensive Use. Allow legal nonconforming uses of land to be changed to other nonconforming uses, as long as: • The change does not result in more intensive use or greater impacts than the existing use; and • This change would apply City-wide; SUMMARY OUTLINE: RECOMMENDED SETTLEMENT AGREEMENT 1 ii. Allow an Existing NC Use to be Moved. Allow nonconforming uses within the M- II(A)Zoning District to be relocated within the district—such use relocations would be processed as Type II administrative permits, subject to the following limitations: • Only permitted uses would be allowed in the former NC use location (i.e., the NC status of former location would be abolished); • Displacement of an existing marine-related use would not be allowed, unless the marine-related use was relocated elsewhere within the M-11(A) District; • The new location of the NC use must be outside the 200'jurisdiction of the Shoreline Management Act; and • This change would apply only within the M-11(A) Zoning District, not city- wide; iii. Allow an Existing NC Use to be Expanded. Allow limited expansions of nonconforming uses within the M-11(A)Zoning District,subject to a Type II administrative process, and subject also to the following: • The size of the expansion would be limited (i.e., not to exceed an "upset" size limit; city staff would provide detailed recommendations based on a percentage of the existing NC use and/or a square footage cap); • A limit would be placed on the incremental expansion of NC uses (i.e.,the ability to relocate from site "A"to "B"to expand, and then from site "B"to "C"to expand,would be limited or prohibited); and • This change would apply only within the M-11(A) Zoning District, not city- wide. NOTE: There are three existing NC uses/sites(Skookum,Sunrise Coffee, and the Port Townsend Furniture Clinic. The Port will provide an inventory of existing NC uses that would be subject to the code changes detailed above. b. Boat Haven Stormwater Fees Exemption. i. The City would process and approve amendments to Chapter 13.05 PTMC to exempt the M-11(A)Zoning District/Boat Haven from stormwater fees (i.e.,the fee exemption would apply both to the Port and its Boat Haven tenants);the ordinance amendments would become effective only upon closing; and ii. The Port would agree to maintaining and continuing to commit an appropriate level of funding for the operation and maintenance of its existing and separate Boat Haven stormwater system consistent with legal requirements. C. Street Vacations. The City would agree to process applications to vacate the remaining street rights-of-way within the Boat Haven, as well as those portions of right-of-way necessary to convey title to the docks as outlined in item 1(a)(ii), above,subject to the following conditions: i. Maintenance of traffic circulation through the Boat Haven consistent with the conditions specified in Street Vacation Ordinance No. 2487 (1995); ii. Dedication of sufficient right-of-way at the Haines Place entrance to the Boat Haven to enable the City to control all four corners of the intersection (i.e.,to enhance opportunities for grant-funded intersection improvements); SUMMARY OUTLINE: RECOMMENDED SETTLEMENT AGREEMENT 2 iii. The Street vacations and dedication would become effective only upon closing; and iv. The City would bear all costs associated with the street vacations. d. Repeal of Dock Use and Fee Ordinance. i. The City would agree to repeal, in its entirety, Chapter 5.46 PTMC, "City Dock and Union Wharf Use Regulations and Charges"; and ii. The repeal ordinance would become effective only upon closing. e. Obtain all necessary third party approvals(e.g., United States National Park Service (NPS), Washington State Recreation and Conservation Office (RCO),Washington State Department of Ecology(DoE)). 3. Closing(Upon Fulfillment of Conditions in Paragraph 2): a. Deeds Transferred. The property exchanges would be completed (i.e.,the City would transfer the docks,the railroad "Y"/vacated Jefferson Street property to the Port,and the Port would transfer its Kah Tai property to the City). b. Fees Split Evenly. The parties would evenly divide all fees and costs associated with the property transfers. C. Lawsuit is Dismissed. Promptly upon closing,the Port and City would jointly approach all defendants to obtain universal approval to file a Stipulated Order of Dismissal with Prejudice of the Port's lawsuit against the City, United States National Park Service and the Washington State Recreation Conservation Office,without fees or costs to any party. 4. Future Terms(i.e.,terms reflected in the Settlement Agreement, but which would be effective into the future if the closing occurs(the property exchange and dismissal of lawsuit outlined in item 3, above): a. Overlay Zone. As part of 2014 mid-cycle assessment,the City Development Services Department (DSD)would docket and recommend the establishment of an overlay zone or similar land use management technique for the 1.3 acre lumberyard site at the Boat Haven that would: i. Establish a preference for marine-related light industrial uses; ii. Allow,subject to the use preference identified in item 4(a)(i), above, non- marine-related light industrial uses as well as the retailing and wholesaling of goods manufactured on site; iii. Allow the relocation of NC uses (consistent with item#2(a) above); and iv. Address consistency between the overlay zone and Port planning documents (i.e.,the Port of Port Townsend Strategic Plan as well as the Comprehensive Scheme of Harbor Improvements). NOTE: The proposed code amendments detailed in item 4(a),immediately above,are not and cannot be guaranteed outcomes(due to legislative process). Council SUMMARY OUTLINE: RECOMMENDED SETTLEMENT AGREEMENT 3 decisions on code amendments can only be made following required processes (including public hearings). b. Mooring Buoy Fields. The Port would agree to explore, as practical, permitting for a mooring buoy field adjacent to the Quincy Street Dock. C. Cooperation to Address Other Boat Haven Issues. The Port and City would agree to collaborate and mutually support each other in investigating and attempting to resolve the following Boat Haven issues: i. The potential (in coordination with the Washington State Department of Transportation (WSDOT))to redirect Sims Way/SR 20 runoff to a location other than the Boat Haven; ii. Expanding the developed portion of the Boat Haven to encompass all or a portion of the Balch Property, including the investigation of off-site wetland mitigation options; and iii. The relocation of the Larry Scott Trail to a "bluff" route alignment from the Boat Haven entrance, provided that the existing trail location, including the "spur" and restrooms would be maintained. Note: There would be no obligation in this acknowledgment to contribute monies or resources unless agreed to in the future. SUMMARY OUTLINE: RECOMMENDED SETTLEMENT AGREEMENT 4 EXHIBIT B Port Property in Vicinity of Kah Tai Lagoon The"Port Kah Tai property"is the property the Port owns north of Sims Way in the vicinity of Kah Tai Lagoon, comprising approximately 20 acres. It includes any interest in the following property(if located north of Sims Way): 1. The property described in the lawsuit filed by the Port in Federal District Court for the Western District of Washington at Tacoma, Case No. 3:11—cv-05 848—RBL. 2. The property shown in a map called Kah Tai Park Ownership (Attachment A to September 7, 2011 Letter from Kaleen Cottingham (Director, State of Washington Recreation and Conservation Office) to Heather Ramsey (Program Manager, National Park Service), a copy of which map is attached as Attachment A to this Exhibit. 3. Property encompassed in the following Jefferson County assessor parcel numbers: 991 400 601 991 402 501 991 403 303 991 403 501 Port and City authorize staff to insert correct legal descriptions.