HomeMy WebLinkAboutAgenda Packet 03/15/1999 WASHINGTON, U.S.A.
GITY MANAGER'S OFFiGE
NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that the City Council of the City of Port Angeles will
hold a special meeting on Monday, March 15, 1999, at 4:30 p.m. in the City Council
Chambers at City Hall, 321 East Fifth Street. The Council will be meeting in joint session
with the Commissioners o~the Port of Port Angeles to discuss the folloWing:
I. Landfill - Wildlife Management Plan
II. Airport Road Relocation Project
III. Storm Water Management
A. Lincoln Park Drainage
B. Industrial Development Park(s) Drainage
C. Slope Stabilization - Marine Drive
IV. Other Infrastructure Development Needs.
A. South Airport Industrial Park Development
V. Oak Street Development
A. Convention Center Development Options
B: Alternate Uses for Oak Street
C. Memorandum of Understanding
VI. Rayonier Site
A. Redevelopment Opportunit!es
B. Clean Up Issues
VII. DOE - Harbor Wood Waste
VIII. Update on Admiral Marine
IX. Claim fOr Damage to Port Pier
Becky J. Upton
City Clerk
Distribution: City Manager
City Council
Peninsula Daily News
KONP Radio
Peter Ripley
Northland Cable
Front Lobby (Post)
321 EAST FIFTH STREET ® P. O. BOX 1150 ® PORT ANGELES, WA 98362-0217
PHONE: 360-417-4500 ® FAX: 360-417-4509 ® TTY: 360-417-4645
E-MAIL: CITYM GR~CI. P~RT-AN GEI~ ES.WA. U S
CITY OF PORT ANGELES
CITY COUNCIL SPECIAL MEETING
March 15, 1999
I. CALL TO ORDER - REGULAR MEETING:
II. ROLL CALL:
Members Present:
(~~,~ ~-'~ Mayor Braun
/" Councilman Campbell .~ (~..~ ~qO) ~.~~
Councilman Doyle
Councilman Hulett ---~
Councilmember McKeown
Councilman Wiggins V/
Councilman Williams V/
Staff Present: Other Staff Present:
Manager Ibarra V/
Attorney Knutson b~
Clerk Upton
B. Becker -
S. Brodhun -----'
B. Collins b/
K. Godbey ------
S. Ilk -------'
J. Pittis V/
III. ADJOURN TO EXECUTIVE SESSION:
~Reason: //"
A~proximate Length: // '
Led y-bT~.'
CITY OF PORT ANGELES
CITY COUNCIL SPECIAL MEETING
Attendance Roster
DATE OF MEETING: March 15~ 1999
LOCATION: City Council Chambers
pORTANGELES
WASHINGTON, U.S.A.
CITY COIdNCii, lVIElViO
DATE: March 11, 1999
TO: MAYOR BRAUN AND CITY COUNCIL
FROM: Patrick Ibarra, City Manager
SUBJECT: Agenda for joint meeting with Port Commissioners.
Attached is the agenda for the meeting and a brief synopsis of each of the items. City staff will be
present to provide any further information and respond to any questions.
c: Department Directors
Tim Smith
l//'Becky Upton
C:\O FFICE~WPWIN~PO RTANGL\COUNC1L~vl EMOS~JOINTMTG. 399
poR'
WASHINGTON, U.S.A.
CITY COUNCIL
SPECIAL CITY COUNCIL MEETING
Joint Meeting
City of Port Angeles and Port of Port Angeles
Monday, March 15, 1999
· City Council Chambers
· . . AGENDA
· I. Landfill - Wildlife Management Plan
~ II. Airport Road Relocation Project
III. Storm Water Management
A. Lincoln Park Drainage
B. Industrial Development Park(s) Drainage
· C. Slope Stabilization - Marine Drive
' IV. Other InfrastructUre Development Needs
A. South Airport Industrial Park Development
V. Oak Street Development
A. Convention Center Development options
B. Alternate Uses for Oak Street
C. Memorandum of Understanding
VI. Rayonier Site A. Redevelopment Opportunities
B. Clean Up Issues
VII. DOE - Harbor Wood Waste
VIII. Update on Admiral Marine
IX. Claim for Damage to Port Pier
321 EAST FIFTH STREET · P. O. I~OX 1150 · PORT ANGELES, WA 98362-0217
PHONE: 360-417-4500 · FAX: 360-417-4509 · TTY: 360-417-4645
E-mall: COU NCl L@Cl. PORT-ANGELES.WA.US
I. Landfill Wildlife Management Plan - This is a plan that establishes procedures and protocols to manage
wildlife in the vicinity of the airport and landfill. The professional management of wildlife in this area
is mutually beneficial to the Port and the City for continued operation of the airport and landfill in close
proximity to each other· The Plan establishes that Co-Wildlife Coordinators be appointed, the Airport
Manager and the City Director of Public Works. It further establishes who is responsible for what
activities, reporting requirements and a schedule for meetings of various parties. Implementation of this
plan will require that an Interlocal Agreement be adopted by the Port and the City·
II. Airport Road Project - This project is to eliminate the intersection at Airport Road/Edgewood
Drive/Lauridsen Blvd by straightening the road. The project also will provide a more direct access to
the airport from US101 and the current access road from "L" Street will be eliminated. The project is
a partnership of the City, Port, and County using local and state funding sources· The project has been
delayed due to right of way difficulties, but is scheduled for construction in 1999. The project will
require that a revised estimate be made and project costs adjusted upward, mainly due to the right of way
costs and delay of construction. After right of way is certified, a revised estimate will be presented to
TIB to request additional state funding, but the local match amount will also increase· The original
estimate and 1992 estimate of costs are below:
AGENCY ORIGINAL ESTIMATE REVISED ESTIMATE
· 15/92}
City $154,000 $204,000
County $100,000 $132,450
Port $100,000 $132,450
WSDOT $20,000 $0
TIB $726,000 $836,100
TOTALS $1,100,000 $1,305,000
III. Long Range plan for stormwater management [specifically around Lincoln Park and Airport
Industrial Park] - Stormwater management in general will become increasing more important as an
activity needing resources. The listing of the salmon as an endangered species will add more reasons for
tighter controls for stormwater and the need for dedicated stormwater funding. A grant application has
been submitted to FCAAP [Flood Control Grant] to construct a storm line from Big Boy Pond to the east.
This pipeline will allow the valve at Lincoln Park to be opened and drained to Big Boy which can then
to drained through this new pipe. By managing the flows, both areas should have flooding reduced.
Marine Drive Stabilization status - in regards to stormwater management - Stability of the bluffs
is a complex issue as can be seen by our recent weather. Continued education of residents living along
the bluffs about appropriate management practices and the management of the flows that create the
ponding at Lincoln Park will go along way toward assisting in this problem. Bluff erosion, however, is
a natural environmental event that is difficult to totally control without great expense. City and Port
officials have been meeting with concerned property owners and businesses for several months. It now
looks like the group will organize to hire a feasibility study of the marine bluff geology, hydrology, and
vegetation and are expecting the City, the Port, and the County to participate like other property owners
in the study area (Tumwater Street to Hill Street).
IV. Other Infrastructure Development Needs - South Airport Industrial Park Development - concerns
recent acquisition by Port of 100 acres and the installation of water and sewer service.
V. Oak Street Development - A Memorandum Of Understanding was prepared by City staff(Attachment
A) and reviewed it with the Real Estate Committee. The Port has reviewed it and their revised MOU,
along with their comments (Attachment B) is provided. The Real Estate Committee has not yet met to
reviewed the revised version, but I did have Tim review it and provide some comments. It appears the
Port wants the City to further explore the construction of a conference/convention center on the site prior
to exploring alternative uses. While some discussion at the March 15 meeting may be helpful, I would
advise the Real Estate Committee further examine the revised MOU before we agree to it.
VI. Rayonier Site - discussion will most likely concem clean-up and potential uses of site.
VII. DOE - Harbor Wood Waste - An item that was added to the agenda very late. Brad Collins will be
present at the meeting to further discuss it. Essentially it concerns the presence of wood waste in the
harbor. This item will most likely effect Daishowa.
VIII. Update on Admiral Marine -concems the status on their reorganization efforts.
IX. Claim for damage to Port Pier -The Port of Port Angeles has filed a claim with the City in the amount
of $26,182.62 for damage that occurred to the Port's Terminal 2 pier. The damage was allegedly caused
by camel logs that broke loose from the City Pier on January 25, 1998. On that day the harbor was
experiencing a high ground swell condition.
The City has tendered the claim to General Construction, the company that the City had contracted with
to maintain the pier pilings and camel logs. General Construction has refused to accept the tender.
The City has informed the Port that it is unwilling to pay the entire claim but is willing to consider a
reasonable settlement. The City believes that negligence would be difficult to establish due to the fact
that the City did exercise reasonable care in maintaining the camel logs as evidenced by the considerable
amount of money that it paid General Construction to keep the camel log system in good condition. The
Port apparently believes that the City is liable for failing to properly secure and maintain the camel logs
as evidenced by the fact that the City owned the logs and they broke loose.
C :\OFFICE\WPWIN~PORTANGL\COUNCIL'uMEMOS~ORTMTG.399
ATTACHMENT "A"
MEMORANDUM OF UNDERSTANDING
OAK STREET DEVELOPMENT SITE
This memorandum of understanding (MOU) is executed by and between the City of Port Angeles
("City") and the Port of Port Angeles ("Port") (hereinafter jointly referred to as "the parties") for
the purpose of outlining principles, guidelines and responsibilities for the joint marketing of the
Oak Street Site in downtown Port Angeles to the private development sector. The parties make
and enter into this MOU effective the __ day of ,19 ., for the
purposes and under the terms contained herein.
RECITALS
WHEREAS, it is the mutual desire of the City of Port Angeles ("City") and the Port of Port
Angeles ("Port") to support the revitalization of downtown Port Angeles through comprehensive
planning efforts, investment in downtown public properties and public infrastructure owned by
the parties, and
WHEREAS, the parties cooperated in moving the Port Angeles Harbor Line and rezoning the
Oak Street Site to support opportunities for commercial development, and
WHEREAS, the parties recognize development of the Oak Street Site will be a significant
contribution toward downtown revitalization, and
WHEREAS, the parties have consistently supported the concept of a private or public/private
partnership toward a commercial development of the Oak Street Site;
UNDERSTANDINGS
NOW THEREFORE, in consideration of the mutual promises and covenants contained herein,
the parties hereby agree to the following understandings:
1. The City and the Port will each be co-sponsors of the overall development effort including
equal responsibilities in support of activities that may be necessary such as a feasibility study, an
environmental impact statement, or so forth, thereby recognizing the significant benefits to City
residents and allowing the Port to balance its responsibilities among county-wide
responsibilities.
2. The parties shall continue to pursue an appropriate development of the site in accordance
with the Downtown Forward Plan including completion of the adjacent Valley Creek Estuary
Project and Waterfront Trail segment.
3. The City shall share responsibility with the Port for marketing the site including contacting
prospects, soliciting from them possible uses and developments, and discussing potential
financial terms. Should either the City or the Port make contact with a prospect that leads to a
point necessitating the discussion of financial terms or negotiations, the other party shall be
contacted and the parties shall both be included in such discussions or negotiations.
4. Until such time as a prospect begins development, the Port shall maintain vegetation control
at the development site at a height of 5-10 inches, and the City shall maintain litter control on a
quarterly basis at a minimum.
5. When the development of the site takes place, the City will assist the developer and the Port
by endeavoring to expedite City permits for development of the site as a top priority application
once received by the City from the Port or developer.
6. MODIFICATIONS: This MOU may be modified by written agreement of the parties.
7. TERMINATION: This MOU shall terminate unless terminated
earlier by mutual written agreement of both parties.
Whereby, the parties have executed this memorandum of understanding in duplicate by the
subjoined signatures of their duly authorized officials.
CITY OF PORT ANGELES PORT OF PORT ANGELES
Patrick Ibarra, City Manager Chris Anderson, Executive Director
ATTEST:
Becky J. Upton, City Clerk
APPROVED AS TO FORM:
Craig D. Knutson, City Attorney
ATTACHMENT "B"
PORT
i~l~OF PORT ANGELES
W A S H I N G T O N
March 2, 1999
Patrick Ibarra
City Manager
City of Port Angeles
321 E. Fifth St.
Port Angeles, WA 98362-0217
Dear Patrick:
Enclosed is a revised draft of the proposed MOU for Oak Street. I have not had
an opportunity to discuss this with my Commission yet, but will do so on March
8th. I had some concerns with the original draft because it seemed to be vague
relative to responsibilities of the parties. I also don't believe it is a good idea for
both agencies to be talking terms of agreements with developers. The
Commissioners have previously indicated that the negotiation responsibility
should remain with the Port unless the City is willing to enter into an agreement
where the City takes on an actual liability for the property. You have indicated on
several occasions that the City is not interested in taking that step at this time,
therefore I have rewritten the MOU accordingly.
Also, I changed the vegetation control to the City's responsibility. If this is a
contentious issue, then I suggest we drop it from the agreement. Both
Commissioner Foster and I expressed concern about maintenance of the site
when the City requested permission to grade and seed the site. We even
suggested seeding the site for wild flowers so that mowing would not be an
issue. It was my recollection that the City (or a group of volunteers) were going to
make sure the property was maintained. The Port has a limited number of
maintenance staff and since we do not have parks or other similar grounds to
maintain we also have limited equipment for this type of grounds maintenance.
We expressed all of these concerns at the Downtown Forward meetings when
Tim Smith originally suggested grading and seeding the site.
If the City still wants to consider pursuing a tidelands swap with DNR we could
also include some provision for discussing this issue and approaching DNR in
this agreement.
338 West First Street (360) 457-8527 COMMISSIONERS EXECUTIVE DIRECTOR
P.O. Box 1350 Fax: (360)452-3959 Glenn Beckman M. Christine Anderson
Port Angeles, WA 98362 portofpa~olypen.com Dick Foster lBARA399.DOC
Jack Waud
I will be out of the office March 4th and 5th and will return to work on March 8th. I
will discuss the MOU with the Commission when I return. We can discuss the
drafts any time during the week of the 8th. Let me know when you are available.
Sincerely,
PORT OF PORT ANGELES
M. Christine Anderson
Executive Director
IBARA399.DOC
MEMORANDUM OF UNDERSTANDING
OAK STREET DEVELOPMENT SITE
This memorandum of understanding ("MOU") is executed by and between the
City of Port Angeles ("City") and the Port of Port Angeles ("Port"), hereinafter
jointly referred to as "the parties," for the purpose of outlining principles,
guidelines and responsibilities for the marketing and development of the Oak
Street Site in downtown Port Angeles to the private sector. The parties make and
enter into this MOU effective the __ day of ,19__., for
the purposes and under the terms contained herein.
WHEREAS, it is the mutual desire of the City and the Port to support the
revitalization of downtown Port Angeles, and
WHEREAS, the Oak Street Site is owned half in fee by the Port and half
controlled under a Port Management Agreement between the Port and the
Department of Natural Resources, and
WHEREAS, the parties cooperated in moving the Port Angeles Harbor Line and
rezoning the Oak Street Site to support opportunities for commercial
development, and;
WHEREAS, the parties recognize that development of the Oak Street Site will be
a significant contribution toward downtown revitalization, and;
WHEREAS, the parties have supported the concept of a private or public/private
partnership in the development of the Oak Street Site; and,
WHEREAS, the City has financial resources available to support development
and promotion of tourism related facilities;
NOW THEREFORE, in consideration of the mutual promises and
understandings contained herein, the parties agree to the following:
CITY RESPONSIBILITIES:
1. The City will pursue the development and operation of an expanded
conference facility either through private development or a public/private
partnership.
2. Once an agreement is reached for the development of the conference center
then the City will advise the Port of the agreement and the proposed location
of the center.
3. The City will subsequently provide the Port with suggested concepts for the
development of Oak Street.
4. Once the Port has approved a development optiOn or options for the site, the
City will cooperate with the Port in marketing efforts and will provide the Port
with information on any potential private developers.
5. If the proposed development requires assistance in infrastructure
development or other financial assistance, the City will consider, but is not
required to provide, the use of a portion of the 2% tax collected on hotel room
revenues to support the promotion of or development of the Oak Street Site.
6. The City shall maintain vegetation and litter control at the Oak Street Site.
7. The City will endeavor to expedite City permits for development of the site.
PORT RESPONSIBILITIES:
1. Upon notification from the City of an agreement for development of a
conference center and receipt of suggested development options for the Oak
Street Site, the Port will pursue development of a Request for Proposals or a
marketing package for the development of the Oak Street Site including a
description of acceptable development alternatives.
2. The Port will negotiate all necessary agreements for development of the site
including leases or others and will take appropriate actions to meet
requirements of the Port's agreement with the Department of Natural
Resources. Port may request assistance from City as needed and will involve
City in negotiations if the City's participation in any agreement is needed. Port
will keep City informed of progress in these negotiations as appropriate.
3. The Port will assist City in development or negotiation of an agreement for
the public/private construction of a conference center if assistance is
requested by City.
4. The Port will assist the developer in applications for City permits and will refer
developer to appropriate City staff for assistance in the permit process.
5. Port will work with developer to prepare necessary environmental
assessment or other documentation necessary to meet SEPA requirements.
This MOU may be terminated by either party upon days notice and
may be modified at any time by written agreement of the parties.
CITY OF PORT ANGELES PORT OF PORT ANGELES
ATTEST:
ITEM FOR CONSIDERATION
BY THE
BOARD OF PORT COMMISSIONERS
WORK SESSION
Janua~ 25,1999
SUBJECT: RAYONIER - HIGHEST AND BEST USE STUDY
BACKGROUND:
In mid-1998 Rayonier hired RCA/Huitt-Zollars, a Seattle real estate planning firm, to
conduct a land use study of its Port Angeles pulp mill site. In late December Rayonier
circulated copies of the study to interested parties in Port Angeles.
The study discusses the pros and cons of various land use possibilities for the site and
recommends a mixed use land use plan which includes light industrial, commercial,
residential and recreational (open space) uses for the 80 acre site. The study includes a
discussion of economic and demographic trends, and market opportunities (lodging,
retail, commercial and industrial).
The study indicates that housing stock has increased at slightly less than 500 units per
year since 1993. The study also indicated an expected population growth in the Port
Angeles urban growth area of roughly 2,400 people and 1,400 people in the City
between 1990 and 2010 (120 people in the urban growth area and 70 people in the City
per year). The study indicates that this growth implies new housing development within
the existing] City boundaries of 60 - 74 single family units and 15 - 19 multi-family units
per year. It concludes that there is a positive market opportunity to develop housing at
the mill site. There seems to be some problem with this analysis. If the growth projection
for the City is for an additional 70 people per year and an average family unit is probably
3+ people, then the total new residential units per year in the City would be in the range
of 23+ not 93 (74 single family and 19 multi-family) as the study suggests.
The analysis of lodging opportunities indicates that development of additional lodging
facilities in Port Angeles would be difficult in the near-term because lodging revenues
have not increased markedly in the past decade, sales are seasonal which cause
RAYSTY.DOC
difficulty in covering fixed and variable costs, and the Double Tree Inn which is west of
the Rayonier site offers better access to downtown Port Angeles.
Relative to retail sales, the study indicates that there has not been a "real increase in
retail sales" countywide since 1991. The study estimates that there is a "baseline
demand for 2.5 million square feet of new retail space on approximately 150 acres of
land." It further states that the Rayonier site is not well-located for most retail because of
its relatively poor access and visibility. It concludes that the site opportunities "are more
generally limited to restaurant and/or miscellaneous retail stores."
Opportunities for industrial development are discussed regarding areas of construction,
food and kindred products, apparel mills, printing and publishing, fabricated metal
products and industrial equipment/machinery, miscellaneous manufacturers, under-
developed manufacturing sectors (furniture, chemical, plastic products, scientific
instruments, etc.), transportation/communications/utilities, wholesale and water-
dependent uses.
Under the fabricated metal section, the report states "...These are relatively undeveloped
heavy industrial sub-sectors in Clallam County. It is unlikely that firms in this sector could
pay the premium required for view space at the Rayonier mill site." This statement
signifies a lack of understanding of real estate values relative to industrial property.
Industrial property does not generally generate a premium value because the property
has a view. If this was the case, the Port's waterfront industrial properties should
generate higher values than non-waterfront industrial land or should have comparable
values to downtown commercial land values. This is not the case.
In the under-developed manufacturing section, the report indicates that there are no
firms in Clallam County that manufacture scientific instruments. However, the do no list
AM Systems in Carlsborg anywhere in the report. As you are aware, AM Systems
manufactures medical diagnostic equipment and is one of the target sectors of the Port's
and EDC's marketing plans. In addition, the report does not seem to cover other high-
tech industries that are located in Clallam County many of whom are members of the
local Science Technology Manufacturing Association. In addition, the report completely
ignores the recreational equipment manufacturer industry. Mervin Manufacturing which
employees 40_+ people and the new Pacific Bay (fishing rods) are not mentioned in the
report. This is another industry targeted in recent years by the Port and EDC.
In the water-dependent uses analysis, the report indicates that Clallam County has a
relatively well developed marine repair and service industry. It also discusses firms
located in Central Puget Sound who may need to relocate due to infrastructure, adjacent
land use conflicts and land cost issues. While the report paints a good market picture for
this industry it concludes that "Noise (especially at night) and lighting may negatively
impact commercial and residential uses." However, there are no residential or
commercial uses currently on site. One can only conclude that the report is discussing its
ultimate mixed use plan which suggests that those uses should be placed on site. Two
pages later, the report questions whether passenger activities would be appropriate at a
site "mainly used by heavy industry." This seems contradictory to the earlier conclusion.
ANALYSIS:
The site is currently zoned for heavy industrial use. It has access to the industrial water
line and it is accessible via Ennis street. The Ennis street entrance to the site traverses a
few blocks of residential property before it becomes a private entrance/truck route into
the mill site. The site has a large industrial pier and substantial waterfront access. The
site has utilities available although some new lines may need to be laid in on site once a
master plan is developed. The site has excellent access and infrastructure, and is
situated well below and removed from the existing residential located on the bluff above
the site.
There appear to be numerous problems with the math and analysis within the Rayonier
study. These problems and contradictions create serious questions regarding the
conclusions drawn in the report.
Of most concern is the proposed mixed use plan which allocates significant land to
residential and commercial use. The report indicates that the residential sites will have
views, but it is hard to visualize any views from the single family lots created in the former
parking lot for the mill. The major issue with residential use on this site is its severe
impacts on the ability to utilize the remaining industrial land. The site which is currently
zoned for heavy industrial under the proposed plan would be primarily residential and
commercial with a small amount of "light industrial." remaining.
One of the first meetings of the Port Angeles Works committee was a brainstorming
session relative to economic development within Port Angeles. One of the conclusions
reached by that committee was that there should be "no net loss of industrial property."
The plan proposed by Rayonier is completely contrary to this concept.
In addition, the study virtually ignores the potential for marine trades, recreational
equipement manufacturing and high-tech growth in Clallam County. There are no other
industrial waterfront sites available in Clallam County. If this site is allowed to be
converted or its industrial use compromised by introducing adjacent non-compatible uses
then its use as a waterfront industrial site will be forever eliminated and the expansion of
the marine trades industry in Port Angeles will be stifled.
RAYSTY.DOC
A mixed use development with heavy industry such as marine trades and rother
manufacturing uses with buffer development of high-tech office and light manufacturing
space would provide protection for the true industrial nature of this site. To allow for any
other non-compatible uses would be significantly detrimental to the long-term economic
development potential within Clallam County.
ENVIRONMENTAL IMPACT:
None.
FISCAL IMPACT:
None.
RECOMMENDED ACTION:
No action in Work Session. Discuss and provide direction to staff.
RAYSTY.DOC