Downtown Kingston Port-Owned Properties Task 1 Baseline Analysis Summary Report

Transcription

1 TO: Jim Pivarnik, Prt f Kingstn Executive Directr CC: Bruce Macintyre, Prt f Kingstn Cmmissiner Walt Ellit, Prt f Kingstn Cmmissiner Mary McClure, Prt f Kingstn Cmmissiner FROM: Matt Andersn, Heartland LLC Matt Hffman, Heartland LLC Carsn Bwlin, Heartland LLC DATE: February 10, 2017 RE: Dwntwn Kingstn Prt-Owned Prperties Task 1 Baseline Analysis Summary Reprt Heartland LLC has been engaged by the Prt f Kingstn (Prt), with the supprt f a Cmmunity Ecnmic Revitalizatin Bard (CERB) grant, t identify and analyze cmmercial develpment alternatives fr tw Prt wned prperties (Prperties) lcated in dwntwn Kingstn, Washingtn. The Prt f Kingstn is a public entity lcated within Kitsap Cunty, whse missin is t respnsibly pursue ecnmic develpment pprtunities and imprve the Kingstn Prt District fr its residents and visitrs. The success f its missin is measured by the Prt s ability t attract, retain, and manage cmmercial activity within the Prt District. Heartland cnducted a thrugh review f existing dcuments pertaining t the Prperties and dwntwn Kingstn, the surrunding develpment patterns and the regulatry envirnment. The findings frm this research cnclude Task 1 f the Scpe f Wrk (SOW) and are summarized in the sectins belw. The infrmatin cllected, rganized, and summarized during this prcess will infrm Heartland s public utreach effrts, alternatives assessment fr the Prperties, and implementatin recmmendatins. Prperty Cntext The first Prt-wned Prperty is lcated at Washingtn Blvd NE and cmprises apprximately 0.68 acres. This Prperty is referred t herein as the Washingtn Blvd Site and is part f a larger 7.1 acre parcel (Parcel #: ) that is wned by the Prt. The Washingtn Blvd Site lies directly t the nrth f Mike Wallace Park, which is a cmmunity and visitr gathering place that is managed and prgramed by the Prt. On the nrthern brder f the site is Washingtn Bulevard, which n the nrth side f the street is lined with three cmmercial buildings that huse the Kingstn Cve Yacht Club, a wellness center, and Drifters Pub and Grill. This east/west right f way intersects with NE State Hwy 104. This rad is current a ne-way street running suth int the Kingstn t Edmnds ferry terminal lt.

2 Ferry bat riders that are waiting fr the next bat may easily access the Washingtn Blvd Site and the Mike Wallace Park. There is an apprximately ten (10) ft grade change between the 13 n-street parking stalls alng Washingtn Bulevard and the remainder f the Prperty that frnts Mike Wallace Park. The Washingtn Blvd Site is being perated as a surface parking lt with 55-parking stalls and a three bay strage garage lcated n the eastern prtin f the site. There is als a temprary strage tent n the suthwest crner f the Prperty. The fllwing graphic depicts the Washingtn Blvd Site and its surrunding uses. Exhibit 1: Washingtn Blvd Site Cntext Map The secnd Prperty, referred t herein as the West Kingstn Site is lcated at NE West Kingstn Rad in Kingstn and cnsists f apprximately 2.75 acres f land acrss five parcels. This assemblage is adjacent t Central Ave NE t the west, which is an imprtant access rad t the Kingstn Marina and t the waterfrnt. Acrss the Prperty there is a grade change f apprximately fifty (50) feet frm the uplands prtin lcated alng NE West Kingstn Rad dwn t the shreline f Appletree Cve creating a gently slping site. Currently, tw f the parcels are being utilized as a surface parking lt that can accmmdate 64 vehicles r 32 bat trailers frm the nearby Kingstn Marina. Tw f the parcels are

3 vacant and supprt an area cmmnly referred t as the West Kingstn Park, which is nt a Kitsap Cunty perated park. The remaining parcel is imprved with a vacant residential hme. The fllwing graphic depicts the West Kingstn Site and its surrunding uses. Exhibit 2: West Kingstn Site Cntext Map Regulatry Envirnment Kitsap Cunty Cmprehensive Plan Update Visin fr Kingstn (5/4/16) The Kingstn Urban Grwth Area was established in 1998 and encmpasses 1,400 acres. The defined areas in Kingstn are Old Twn, adjacent t the marina and ferry terminal; the Village Green district; and Lindvg Cmmercial, encmpassing the uptwn area alng State Rute 104. The Kitsap Cunty Cmprehensive Plan was adpted in 2012 and the Kingstn Sub-Area Plan has 59 stated gals with 69 identified plicies. The framewrk is divided int nine sectins: Build a Sense f Cmmunity; Enhance Kingstn s Visual Identity as a Cmmunity; Establish Predictable and Defined Land Use Patterns that Supprt Kingstn s Cmmunity Visin; Imprve and Encurage Ecnmic Develpment Opprtunities and Dwntwn Revitalizatin; Create an Integrated System f Parks, Trails and Open Space, Imprve Prt Facilities and the Waterfrnt;

4 Urban Residential, Cmmercial, and Industrial Land Use; Natural Systems; and Transprtatin. Each alternative that will be evaluated fr the Prperties will include a Cmprehensive Plan filter t ensure it addressed the gals f plicies f the plan. The update makes nte f the fact that ver a quarter f Kingstn s ppulatin is ver the age f 60 years ld. The updated plan cmments n hw imprtant f a partner Kitsap Cunty is t Kingstn in achieving its gals f lcal ecnmic vitality and develpment. Specifically, transprtatin infrastructure, imprved street aesthetics and parking facilities are ways in which Kingstn aims t cllabrate with the cunty and in a brader sense, the lcal S Kallam and Suquamish tribes. Zning Land use in dwntwn Kingstn is affected by three zning designatins specified under the Kitsap Cunty Land Use Cde. They are the Neighbrhd Cmmercial (NC) zne, the Urban Lw Residential Zne (UL) and the Urban Village Center (UVC) zne. The West Kingstn Sites are lcated within the UL zne and the Washingtn Blvd Site is lcated in the NC zne as seen in Exhibit 3. The zning regulatins fr the UVC zne have been included in the zning table (Exhibit 4) included belw in rder t prvide relevant cntext as the UVC zne brders bth f the Prperties. Exhibit 3: Regulatry Cntext Map

5 Washingtn Blvd Site Zning The Washingtn Blvd Site is zned NC which permits general cmmercial and recreatinal uses, while nly allwing fr limited residential and industrial uses. The specific prvisins f the NC zne summarized in the bullets belw as well as in in Exhibit 4, which cmpares density and height and massing requirements in each f the dwntwn znes: Residential Uses NC zne permits single-family, duplexes, and multifamily dwellings. Vacatin rental, cngregate care facility, hme business and htels are cnditinal uses. Cmmercial and Business Uses NC zne permits aut-related businesses, art and craft stres, day care center, prfessinal services, restaurants and drinks, laundry services, persnal services, general ffices and retails that are less than 4,000 sf. General ffices and retails that are between 4,000-9,999 sf, nursery, private parking facilities, pet shp and animal hspitals require administrative cnditinal use permits. Recreatinal/Cultural Uses NC zne nly permits parks and pen space. Civic r scial clubs, marinas, indr theaters, museums and recreatinal facilities need t receive administrative cnditinal use permits. Amusement centers, carnival and recreatinal vehicle camping parks are permitted cnditinally. Institutinal Uses Gvernment and public structures and public utility facilities are allwed in NC zne with administrative cnditinal use permits. Wrship places and schl are als allwed n a cnditinal basis. Industrial Uses NC zne nly allws cemeteries and self-strage n a cnditinal basis. Resurce Land Uses NC zne permits agricultural uses, frestry and temprary fd prduct selling stands. West Kingstn Site Zning The West Kingstn Site is zned Urban Lw Residential (UL) which permits mst residential uses and resurce land uses, while allwing cmmercial, recreatinal, institutinal and industrial uses n a cnditinal basis. The specific prvisins f the UL zne are as fllw and are highlighted in Exhibit 4: Residential Uses UL zne permits accessry living, lw density dwelling units and hme businesses; it als allws multifamily, cngregate care facility, vacatin rental and mbile hmes n a cnditinal basis. Cmmercial and Business Uses UL zne nly permits cnference center, day-care center, kennels, temprary ffices and temprary mdel hmes. Recreatinal/Art Uses UL zne nly permits parks and pen space and public recreatinal facilities. It als allws civic and scial club, glf curses, marinas, private recreatinal facilities and vehicle camping parks cnditinally.

6 Institutinal Uses UL zne nly grants administrative cnditinal use permit fr gvernment/public structures and allws fr wrship places, schl and public utility facilities n a cnditinal basis. Industrial Uses UL zne nly allws cemeteries and self-strage cnditinally. Resurce Land Uses UL zne permits agriculture uses, frestry and temprary agriculture prduct selling stands. Exhibit 4: Density Regulatin Cmparisn Table Zning Regulatins NC UL UVC Min. Density (per acre) Max. Density (per acre) Min. Lts Size (sf) - 2,400 - Max. Lts Size (sf) - 9,000 - Max Height (feet) Max Impervius Lt Cverage 85% 85% 85% Frnt Setback (feet) 20 fr garage r 20 - carprt, 10 fr habitable area Side Setback 5* 10 - Rear Setback 10** 10 - *If n an alley, 10 feet fr a garage r carprt pening directly n the alley, r 5 feet in all ther instances **If n an alley, 20 feet fr a garage r carprt pening directly nt the alley Shreline Master Plan As enacted by the State f Washingtn in 2003, the prperties in Kingstn are als affected by the Shreline Master Plan (SMP). The gals f this prgram are t prtect shreline-based natural resurces, prmte public access and t encurage water-dependent uses. The jurisdictin f this regulatin applies t prperties lcated within 200 feet f the shreline edge (rdinary high water mark) which des affect prtins f bth Prt-wned Prperties. Prtins f the Prt-wned Prperties are lcated within the High Intensity shreline envirnment designatin as part f the SMP as depicted in Exhibit 3. As this exhibit illustrates, the majrity f the West Kingstn Site is within the High Intensity shreline envirnment designatin and behlden t the land uses listed belw. The Washingtn Blvd Site nly has a small crner f the Prperty within the shreline envirnment and therefre its lands uses are regulated by the NC zning cde. The High Intensity shreline designatin prvides fr high-intensity water-riented cmmercial, transprtatin, and industrial uses while prtecting existing eclgical functins and restring eclgical functins in areas that have been previusly degraded. Land uses permitted under the High Intensity designatin are as fllw:

7 Permitted Uses Eclgical Restratin Bating facilities Water-Oriented Cmmercial Eclgical Restratin Class IV General Frest Practices Water-Oriented Industrial Uses Mring Structures and Activities Recreatin and public access Residential Uses Transprtatin Utilities Cnditinal Uses Cmmercial Geduck General Barrier Structures Marinas Dredging & Dredge Dispsal Fld Hazard Reductin Measures Mining Hard Shreline Stabilizatin Prhibited Uses Agriculture Nn-Water-Oriented Cmmercial Cmmercial Frestry Nn-Water-Oriented Industrial Prperty Relevant Dcumentatin As part f the Task 1 analysis, Heartland reviewed reprts, crrespndence and studies pertaining t the greater Kingstn area that were prvided by the Prt f Kingstn. The fcus f this wrk was t summarize the cnsideratins that each f these dcuments highlighted which may stand t affect the Prt-wned Prperties. Rger Brks Survey (12/19/13) This survey was a cllabratin between the Greater Kingstn Ecnmic Cuncil and the Prt f Kingstn aimed at assessing hw lcal residents view dwntwn Kingstn and t determine ways in which it might be imprved. Seven strategic questins were presented and feedback was received frm 173 individuals within the cmmunity. Of the respnses 64% listed Prt-

8 related functins as Kingstn's greatest dwntwn assets. These functins included parks, the marina and the beach/waterfrnt. Traffic n SR 104 was identified as the biggest area f imprvement fr Kingstn by 84% f respndents. The need fr a dwntwn park, mre parking and restaurant chices were als mentined as high pririties. The need fr a dwntwn htel, as identified within the Prt f Kingstn Master Plan, was agreed upn by nly 4.5% f thse surveyed. Relevance t the Prt-wned Prperties: The Brks survey prvides an insight int the cmmunity sentiment regarding varius key cnsideratins within Kingstn that affect the Prt-wned prperties. These sentiments culd influence future uses acrss the sites, as well as hw t imprve the surrunding public infrastructure and allcate future investment. Kingstn - Htel Develpment Findings (5/22/15) This study was cnducted by HVS Cnsulting and Valuatin Services with the intent f understanding the feasibility f a htel develpment in dwntwn Kingstn. The cnclusin f the study was that a htel develpment is nt viable in the near-term given the current cntributing factrs within Kingstn. Specifically, the study highlighted the fllwing market challenges that a htel develpment in Kingstn wuld face: New Supply the lcal casins perated by the S Klallam and Squamish Tribes have recently expanded r are in the prcess f expanding bth their hspitality and their meeting space areas. Private Rental Pl many f the beachfrnt hmes thrughut the cmmunity are secnd hmes which are pled as private rentals thrugh platfrms such as AirB&B r VRBO (Vacatin Rental by Owner). The study cmments that these rentals prvide cmpetitin fr a htel develpment and the variable nature f their supply make it difficult t quantify their direct impact. Seasnality due t the lcal weather patterns, the mnths f June thrugh early September demnstrate healthy demand fr htel rms, while the remaining mnths f the year shw very little demand. Diminished Ferry Ridership the Washingtn State Department f Transprtatin (WSDOT) wh perates the Kingstn Ferry, has bserved a significant decline in ferry ridership since a peak in Presumably, this is due t greater web-based cnnectivity and a decrease in the need t physically cmmute t urban centers fr wrk. Military Per-Diem due t the military presence n the Kitsap Peninsula, htel rates reflects an amunt that is in line with the per-diem amunt that military persnnel receive when they are ff-base. HVS assumes that withut this phenmenn, htel rates thrughut all f Kitsap Cunty wuld be higher. Supprting Amenities the study fund that the lcal market is generally deficient in regards t the surrunding amenities that a htel develpment relies n fr its guests.

9 There are currently a handful f shps and restaurants, but their hurs are limited r seasnal in nature. Als, the study nticed that ferry riders quickly mve thrugh dwntwn Kingstn and that a redesign f the flw f ferry traffic culd help in capturing mre visitrs dwntwn. Cmmunity Misalignment the HVS study articulated a perceived lack f cmmunity pride and chesin within Kingstn. The effect f this attitude they determined was a stunting f grwth, business develpment and expansin. They als bserved a lack f well-trained individuals t help a htel develpment execute prperly n its business peratins. Over a lnger-term hrizn, the HVS study acknwledged that Kingstn culd cntinue t grw twards a future dwntwn hspitality presence. This culd cme in the frm f a butique waterfrnt prperty with a meeting space, a restaurant with a small cmplimentary inn r a bed and breakfast with five t ten units. Relevance t the Prt-wned Prperties: The HVS study cnceptually underwrte a future hspitality develpment within dwntwn Kingstn and cncluded that it is likely nt a viable ptin. Heartland will cnsider these cnclusins while perfrming ur wn market analysis specifically n behalf f the Prt-wned prperties. A key cnsideratin will be that the passenger ferry was nt enacted at the time f the HVS Htel Study and culd ptentially prvide mre supprt fr a htel develpment n ne f the sites. Kingstn Cmplete Streets (May ) This study was cnducted by the Kingstn Cmmunity and Kitsap Cunty with the gal f establishing a design apprach that facilitates the creatin f inclusive transprtatin netwrks that evaluate all streets, sidewalks and pathways as part f a brader safe, accessible and efficient system within the Urban Village Center (UVC). The fcus f the study was narrwed n five cmpnents f cnsideratin; cmplete streets, transprtatin, urban design, strm water and ecnmic develpment. This framewrk resulted in a Prject Summary Matrix f 20 actinable prjects thrughut the UVC that each has integrated cmpnents f the five key cnsideratins in their selectin. These prjects range frm imprving the visibility f lcal trail systems, t expanding sidewalks thrugh residential areas, t addressing strm water drainage systems with the Prt f Kingstn. The recmmendatins are brad in nature and in scale, each f which was drafted with a recmmended design standard, statement f purpse, prject descriptin, estimated cst and a pririty ranking. Specifically, there were three prjects that psitively affected the Washingtn Blvd Site: A shreline trail system aimed at tying tgether the surrunding street system, strategic viewpints, and prviding beach access;

10 Redevelpment f Washingtn Blvd by establishing the arterial as a cnvertible street t create a chesive streetscape with the planned redevelpment f the Prt f Kingstn Park; and Imprvements alng SR 104 facilitated by WSDOT t imprve the develpment f nnmtrized facilities t imprve safety fr pedestrians. The specific prject-based recmmendatins were the result f a thrugh public utreach and stakehlder engagement prcess. Relevance t the Prt-wned Prperties: The implementatin f the high pririty prjects in the Cmplete Streets study will have a significant impact n bth Prt-wned prperties due t resulting recmmendatins t imprve the streetscape and verall pedestrian experience f dwntwn Kingstn. The Washingtn Blvd Site will benefit frm many f the recmmendatins as there is the ptential t cnnect the site with a brader netwrk f trails, imprve pedestrian safety and ptentially recnfigure SR 104 and redevelp Washingtn Blvd with cnstructin t cmmence in There are als recmmended prjects that are taking place n Central Ave NE and NE West Kingstn Rd which run n the east and nrth edges f the West Kingstn Site. The stated gal f these prjects is t better cnnect the dwntwn s existing infrastructure and t help make dwntwn Kingstn a mre livable place. These initiatives, if cmpleted, will be accretive twards value acrss the Prt-wned sites. Surrunding Develpment Supprt & Headwinds In rder t better understand the ptential fr the Prt-wned Prperties, Heartland researched the surrunding develpment activity t identify bth psitive and negative factrs affecting the Prtwned prperties. The mst significant develpment prject in Kingstn is the cmmunity f Arbrwd, which is currently being prpsed by the Olympic Prperty Grup (OPG) acrss 361 acres f prperty wned by Ppe Resurces. This single prject, lcated 1.5 miles frm dwntwn Kingstn, wuld add 765 residential units including 88 higher density twnhmes. The prject wuld als include a 20,000 square ft retail area t supprt the larger cmmunity. OPG has annunced that they will begin t clear the develpment site as part f Phase 1 f the develpment later this year. Lcal residents remain apprehensive abut the prject and have expressed cncern ver impacts regarding traffic, grundwater and sewer. When cmpleted these new husehlds will demand cmmercial and recreatinal fferings. Cmmercial businesses in Dwntwn Kingstn are psitined t benefit frm this added ppulatin. On Nvember 11 th f 2016, the vters f Kitsap Cunty apprved a ballt measure t establish a passenger-nly ferry cnnectin between Kingstn and dwntwn Seattle. This measure was

11 apprved by a 3/10 th f a 1 percent sales tax increase and narrwly passed with 51.7% f the vte. With a dck t dck time f apprximately 20 minutes, this new mde f transprtatin has the ptential t be catalytic fr Kingstn. The ferry will prvide an pprtunity fr individuals and families t live in the mre affrdable Kingstn while still having the ability t access jbs and pprtunities fr higher educatin in Seattle. The Prt-wned prperties are well psitined t benefit frm this new transprtatin ptin which is scheduled t begin peratin in On Nvember 25 th f 2016, the Prt Gamble S Klallam Tribe pened The Pint Htel lcated eight miles frm Kingstn. The fur-stry, 94-rm butique htel is lcated adjacent t the existing casin and will ffer an additinal hspitality ptin fr thse visiting the greater Kingstn area. Twards the beginning f 2017, the Swedish Medical grup decided t clse a medical practice that they had acquired a little ver a year prir. The facility was lcated n the Barber Cut Off Rad under a mile frm the dwntwn. Members f the cmmunity have expressed cncern ver their nging ability t access quality healthcare and the requirement t travel t either Edmnds r Bainbridge t access anther Swedish Medical facility. In 2018, majr imprvements are planned fr the Washingtn Blvd crridr, include the develpment f the Washingtn Blvd Park and imprvements in circulatin near the Ferry Terminal and thrughut dwntwn. Next Steps This Summary Reprt satisfies Task 1 f the SOW, Heartland has gained a firm understanding f the surrunding cntext affecting the tw Prt-wned Prperties. The unique pprtunities and challenges facing the Prperties have been carefully examined t better infrm the subsequent Market Assessment and Alternatives Feasibility Analysis as part f Task 2.