Comprehensive Plan Periodic Review

The Mercer Island City Council will hold a public hearing at its Hybrid Meeting on Tuesday, November 19, 2024, at approximately 5pm, to receive comments on proposed Ordinance No. 24C-18, Interim Regulations related to the 2024 Comprehensive Plan Periodic Update and HB 1220 for affordable housing capacity and requirements in Title 19 Mercer Island City Code (MICC).

At the October 1, 2024 City Council meeting, the Council directed staff to prepare an ordinance to address a shortfall in multi-family and mixed-use housing capacity, as required by HB 1220 and the City's identified affordable housing needs. Staff are currently drafting Ordinance No. 24C-18 based on this Council direction. The proposed ordinance will be published on the City Council Agendas webpage on or before November 13, 2024.

Ordinance No. 24C-18 would amend the Town Center development regulations in Chapter 19.11 MICC as follows:

1. Increase maximum building heights:
   1. TC-5 and TC-4 Plus subareas: increase the maximum building height from five to seven stories
   2. TC-4 subarea: increase the maximum building height from four to five stories
2. Increase housing affordability requirements:
   1. increase the required percentage of affordable housing in new development from 10 percent to 15 percent
   2. deepen the affordability requirement for affordable housing units in new development from 60 percent to 50 percent of the area median income (AMI) for rental housing and from 90 percent to 80 percent of the AMI for ownership housing.

The City Council will hold a public hearing on this matter and conduct first reading of proposed Ordinance 24C-18 on November 19, 2024. The Council is scheduled to hold second reading of the ordinance on December 3, 2024. If the ordinance is adopted on December 3, it would take effect on December 31, 2024.

The public hearing will be held in person and using Zoom. The public will have the opportunity to comment during the public hearings by either attending in person, calling in, or logging onto the meeting as a Zoom attendee. Written comments may be submitted to the City of Mercer Island by email to council@mercerisland.gov until such time that the public hearing is adjourned.

Detailed instructions on how to comment live during the public hearing will be available online on or before November 13, 2024, at: https://www.mercerisland.gov/citycouncil.

On October 15, 2024, the City Council will conduct the first reading of Ordinance No. 24C-15. This ordinance would establish a new Open Space Zone in Title 19 mercer Island City Code (MICC). The Open Space Zone is one of the implementing code amendments that will be adopted concurrently with the Comprehensive Plan periodic review.

Ordinance No. 24C-15 will implement the Open Space Zone by creating new sections of City Code (MICC 19.05.030 Open Space – OS and MICC 19.05.040 Open Space Development Standards), amending MICC 19.16.010 Definitions and MICC 19.01.040 Zone Establishment, and repealing and replacing MICC Chapter 19 Appendix D – Zoning Map. These code amendments align with amendments to the Land Use Map currently under consideration by the City Council as a part of the Comprehensive Plan Periodic Update. The proposed amendments to the development code and Zoning Map must be adopted concurrently with the Comprehensive Plan to ensure the code remains consistent with the Comprehensive Plan without any gaps in timing.

The scope of work for the Comprehensive Plan periodic review, adopted by the City Council in 2022, included creation of a new Parks Zone. A preliminary Parks Zone draft was presented to the PRC (PRC 24-01) and Planning Commission (PCB 24-01) in January 2024. After receiving feedback from the commissions and community, the City Manager directed staff to pause the legislative review process and return to the PRC for further discussion.

The PRC revisited the Parks Zone in March 2024 and provided a recommendation to staff to separate the Parks Zone planning work into two phases: the first phase to develop a new zone for City-owned public Open Space Lands, and the second phase to develop a new zone for other City-owned public park properties. The PRC recommended prioritizing the development of the Open Space Zone to be included as part of the 2024 Comprehensive Plan Periodic Update. The OSCT Board was invited to hold joint meetings with the PRC to provide input on the proposed Open Space Zone and the associated development regulations.

At the March 21, 2024, joint PRC/OSCT meeting, the PRC and OSCT each voted to approve a joint recommendation to the Planning Commission (PC) on the Open Space Zone and the associated development regulations.

At the May 8, 2024 PC meeting, City staff and the PRC and OSCT Chairs presented the PRC/OSCT recommendations and the draft development regulations, Zoning map, and Land Use Map to the Planning Commission (PCB 24-09). The PC had the opportunity to ask questions about the recommended draft, and commissioners were asked to submit written comments to staff following the meeting.

At the May 15, 2024 PC meeting, the PC reviewed the proposed amendments to the development regulations, Zoning Map and Land Use map (PCB 24-10). Written comments received prior to the meeting were discussed and a couple minor amendments were made by the PC. The PC approved a recommendation for amendments to the development regulations, Zoning Map and Land Use Map. The Land Use Map recommended by the PC was included in the draft Comprehensive Plan amendments considered during a public hearing on May 29, 2024. The PC approved a recommendation to the City Council including the amendments to the Land Use Map on June 12, 2024 (AB 6510).

On September 25, 2024, the PC held a public hearing on the Open Space Zone development regulations and Zoning Map amendments and approved a recommendation to the City Council (Exhibit 1). One person provided public comment during the hearing. Notice of the Planning Commission public hearing was published in the Mercer Island Reporter on August 21, 2024. The WA Department of Commerce was notified of the intent to adopt development code amendments on August 7, 2024. A State Environmental Policy Act (SEPA) determination of non-significance was issued on August 7, 2024, and the project was assigned SEPA register file number 202403416. The SEPA determination comment period was open from August 7 to 26, 2024; no comments were received.

At the October 1, 2024 regular meeting, the City Council directed staff to prepare an interim ordinance to amend Title 19 MICC to: (1) increase multifamily and mixed-use development capacity in the Town Center by raising the maximum building height from five to seven stories in the TC-5 and TC-4 Plus subareas and from four to five stories in the TC-4 subarea; (2) increase the required percentage of affordable housing in new development in Town Center from 10 percent to 15 percent; and (3) deepen the affordability requirement for affordable housing units in new development in Town Center from 60 percent to 50 percent of the area median income (AMI) for rental housing and from 90 percent to 80 percent of the AMI for ownership housing;

The Council also directed staff to further evaluate an optional additional capacity buffer in the TC-3 subarea along 80th Ave SE north of SE 30th Street and bring this matter back to City Council for further discussion in 2025.

The City Council will hold a public hearing and first reading of a draft ordinance based on this direction on November 19, 2024.

The 2024 City Council Draft Comprehensive Plan is now available for public review! This important document will help shape the future of Mercer Island for the next 20 years, and we invite you to share your feedback. Please send comments on the 2024 City Council Draft Comprehensive Plan Elements to comp.plan@mercerisland.gov by Thursday, October 31, 2024. Your input will be compiled and included in the City Council packet for the November 4, 2024, meeting. We look forward to hearing your thoughts and working together to plan for the future of our community!

The 2024 City Council Draft Comprehensive Plan Elements are available here:

• Introduction
• Land Use
• Housing
• Transportation
• Utilities
• Capital Facilities
• Shoreline Master Program Policies (Note: no amendments to this element are proposed)
• Economic Development (New Element)
• Parks and Open Space (New Element)

At the October 1 regular meeting, the City Council will review options for the City of Mercer Island to comply with new housing requirements enacted by the State Legislature through House Bill 1220. This bill established new requirements for cities and counties to address housing needs, such as increasing the number of housing units allowed per lot.

The process to implement the changes brought by HB1220 spans several years. In 2023, the State Department of Commerce issued guidance for cities and counties on complying with HB 1220, followed by the King County Council’s adoption of Ordinance No. 19660 which amended the County’s policies to establish the number of affordable dwelling units needed to meet these new requirements.

Once the State Department of Commerce’s guidance was issued, the City of Mercer Island prepared a Land Capacity Analysis Supplement which evaluated whether the City had sufficient land capacity to accommodate its assigned housing need from the updated King County policies. This analysis was presented to the City Council on January 2, 2024 and identified a capacity deficit of 143 dwelling units in multifamily and mixed-use zones. The City Council directed staff to evaluate options for accommodating this increased capacity requirement located in the Town Center (TC) and Commercial Office (CO) zoning districts.

During this process, the City was also conducting its Comprehensive Plan Periodic Review as required by law – this review includes changes to housing policy. To avoid a situation where the City would finalize its Comprehensive Plan update before the changes brought forth by HB 1220 were fully established, in September 2024 the City Council paused review of certain parts of the Comprehensive Plan until more information was known. The Council provided staff with guidance and staff were then able to prepare options for compliance.

The proposed options would both accommodate the multifamily and mixed-use housing capacity increase necessitated by HB 1220 only in the Town Center (TC) zoning district. Details on the two options are provided in AB 6548 - the October 1 agenda packet is available online.

Council will provide direction at the October 1 meeting on which of the two options to move forward with. Staff will then draft a proposed ordinance to implement the changes approved by the Council – a public hearing will then be held with a first reading tentatively scheduled for November 19, 2024.

You can learn more about the Comprehensive Plan Periodic Review process here on Let’s Talk.

The Planning Commission will hold a public hearing on September 25, 2024, at 6:00 PM regarding the proposed code amendment to establish the Open Space Zone development regulations and update the Zoning Map in the Mercer Island City Code (MICC). If the Planning Commission makes a recommendation, the City Council is scheduled to review the Planning Commission’s Open Space Zone recommendations regarding both the code amendment and Comprehensive Plan amendment in Q4 2024.

At its September 17 Regular Meeting, the City Council reviewed and approved the Ad Hoc Committee's recommendations as contained in Exhibits 1, 2, and 3 (AB 6541). Furthermore, the City Manager recommended three amendments to the Economic Development Element as outlined in Exhibits 3, 4, and 5 to AB 6541, which the City Council approved.

Meeting Recording and Agenda Packet

The City Council is scheduled to receive an update on House Bill 1220 Affordable Housing Capacity Compliance Options at its October 1 Regular Meeting.

At its September 3 Regular Meeting, City Council reviewed proposed Councilmember amendments (AB 6519) and directed staff to incorporate all approved amendments into the 2024 City Council Draft Comprehensive Plan and make this draft available for public review and comment for a period of not less than thirty (30) calendar days prior to the City Council completing the first reading of an adopting ordinance scheduled for November 5, 2024. Additionally, City Council took action to form an Ad-Hoc Committee comprised of Councilmembers Reynolds and Weinberg and Mayor Nice to work with staff to formulate recommendations on the proposed Economic Development Element amendments contained in Exhibit 1 as well as any other proposed amendments referred by the City Council. The Ad-Hoc Committee was directed to commence work immediately and present their recommendations to the full City Council at the September 17, 2024 Regular City Council meeting.

Meeting Recording and Agenda Packet

On July 16, the City Council was briefed on the Planning Commission recommended draft of the Comprehensive Plan Periodic Review (AB 6510). From July 29 to August 12, City Councilmembers individually provided proposed amendments to the Planning Commission recommended draft.

The Councilmember proposed amendments were provided to the City Council on September 3 with Agenda Bill 6519. Beginning on September 3 and continuing to September 17, if needed, the City Council will consider the proposed amendments and provide direction to staff to prepare the 2024 City Council Draft Comprehensive Plan.

The 2024 City Council Draft Comprehensive Plan will be available for public comments for at least 30 days beginning in October. The City Council is expected to discuss the public comments on the 2024 City Council Draft Comprehensive Plan beginning in November.

On June 12, 2024, the Planning Commission recommended adoption of amended Comprehensive Plan Elements to the City Council. Arriving at a recommendation to the City Council marks the end of the Planning Commission legislative review of the Comprehensive Plan goals and policies. This step in the process marks a major milestone in the Comprehensive Plan periodic review project that began when the City Council approved a scope of work in March 2022.

There are still several steps remaining to complete the Comprehensive Plan periodic review:

• The City Council will review the Comprehensive Plan update; a process that will include an initial briefing and two touches in advance of adopting the update by ordinance. The City Council will receive and initial briefing on the Planning Commission recommendation in July, currently planned for July 16. City Council meeting agendas are posted on the City website here.
• the periodic review will include some development code amendments to implement the updated policies. The Planning Commission will begin review implementing development code amendments at its next scheduled meeting on September 25, 2024. Planning Commission meeting agendas are posted on the City website here.
• The periodic review of the Comprehensive Plan including the implementing development code amendments must be adopted before December 31, 2024, the deadline set by the WA Legislature in the statewide Growth Management Act.