Chapter 17.09
DEVELOPMENT AGREEMENTS

Sections:

17.09.010    Purpose.

17.09.020    Authority.

17.09.030    Content of development agreement – Modification and review criteria.

17.09.040    Initiation of proposals.

17.09.050    Preparation of development agreement.

17.09.060    Applications.

17.09.070    Official file.

17.09.080    Preapplications required.

17.09.090    Compliance with State Environmental Policy Act.

17.09.100    Development proposal.

17.09.110    Timing of public hearings.

17.09.120    Factors to be considered in review of a development agreement.

17.09.130    Public notice.

17.09.140    Staff report.

17.09.150    Public hearing and city council action.

17.09.160    Notice of final decision.

17.09.170    Judicial review.

17.09.180    Term and effect of agreement.

17.09.190    Recording.

17.09.200    Amendment of development agreement.

17.09.210    Minor modification of development proposal.

17.09.010 Purpose.

The purpose of this chapter is to authorize the use of development agreements, as authorized by state law, as a means to document conditions and procedures for certain types of development and to thereby provide greater certainty to the city, applicants, and the public regarding how property will be developed. Development agreements may be used for any type of proposals but are anticipated to be applied most often to master planned development and to other large, complex, phased, and/or sensitive development proposals where useful. (Ord. 2021-634 § 3).

17.09.020 Authority.

Pursuant to RCW 36.70B.170, the city council may consider and enter into a development agreement with a person having ownership or control of real property within the city of Newcastle as part of a development proposal. The execution of a development agreement is a proper exercise of city police power and contract authority. A development agreement may obligate a party to fund or provide services, infrastructure, or other facilities. The decision of the city council to approve or reject a request for a development agreement is a discretionary, legislative act. As a discretionary act, the city council has no duty, obligation, or requirement to approve or enter into a development agreement. (Ord. 2021-634 § 3).

17.09.030 Content of development agreement – Modification and review criteria.

A. A development agreement must set forth the development standards and other provisions that apply to and govern and vest the development, use, and mitigation of the development of the real property for the duration specified in the agreement. Except as set forth in subsection (C) of this section, a development agreement shall be consistent with applicable city of Newcastle development regulations.

B. For the purpose of this section, “development standards” may include, but are not limited to:

1. Project elements such as residential densities, nonresidential densities and intensities or building sizes;

2. The amount and payment of impact fees imposed or agreed to in accordance with any applicable provisions of state law, any reimbursement provisions, other financial contributions by the property owner, inspections fees, or dedications;

3. Mitigation measures, development conditions, and other requirements under Chapter 43.21C RCW. Design standards such as maximum heights, setbacks, drainage, and water quality requirements, landscaping, and other development features;

4. Affordable housing;

5. Parks and open space preservation;

6. Phasing;

7. Review procedures and standards for implementing decisions;

8. A build-out or vesting period for applicable standards; and

9. Any other appropriate development requirement or procedure.

C. A development agreement may modify the following development regulations of the Newcastle Municipal Code, but only to the extent the applicant can demonstrate the modification of the development regulation is necessary to provide flexibility to achieve public benefits and to provide superior outcomes than those that would result from strict compliance with applicable development regulations:

1. NMC Title 16, Impact Fees;

2. NMC Title 17, Site Development;

3. Chapter 18.08 NMC, Permitted Uses;

4. Chapter 18.12 NMC, Development Standards – Density and Dimensions;

5. Chapter 18.14 NMC, Development Standards – Design Requirements;

6. Chapter 18.15 NMC, CBC Development Standards;

7. Chapter 18.16 NMC, Development Standards – Landscaping and Tree Retention;

8. Chapter 18.18 NMC, Development Standards – Parking and Circulation;

9. Chapter 18.20 NMC, Sign Regulations;

10. Chapter 18.24 NMC, Critical Areas. Modification is only permitted for stream, wetland, and associated buffer regulations, but only if the applicant can demonstrate to the satisfaction of the city that the modification will achieve greater hydrological, water quality, or aquatic area habitat functions;

11. Chapter 18.31 NMC, Development Standards – Accessory Dwelling Units and Cottage Housing Developments;

12. Chapter 18.32 NMC, General Provisions – Nonconformance, Temporary Uses, and Re-Use of Facilities;

13. Chapter 18.34 NMC, General Provisions – Residential Density Incentives;

14. Chapter 18.36 NMC, General Provisions – Floor Area Ratio Incentives; and

15. Chapter 18.38 NMC, General Provisions – Affordable Housing.

D. A development agreement may not modify any provision of the Newcastle Municipal Code that is not identified in subsection (C) of this section.

E. A development agreement may modify the provisions of the Newcastle Municipal Code, as identified in subsection (C) of this section, only if the city council determines that the requested modifications are necessary to provide flexibility to achieve public benefits and provide superior outcomes than those that would result from strict compliance with applicable development regulations.

F. Any approved modifications to the Newcastle Municipal Code under a development agreement shall not require any further variance from development standards apart from the development agreement. (Ord. 2021-634 § 3).

17.09.040 Initiation of proposals.

A development agreement that will be reviewed under this chapter may be initiated by city staff or the owner of real property. (Ord. 2021-634 § 3).

17.09.050 Preparation of development agreement.

A. After consultation with the applicant, the city shall determine the parameters of the development agreement in accordance with NMC 17.09.030.

B. The applicant shall prepare a development proposal that is consistent with the parameters of the development agreement determined by the city. The development proposal may vary in the amount of detail to be included, depending on city council direction identified in NMC 17.09.030. A development agreement shall be reviewed concurrently with a related development proposal under the permit/approval application type process set forth in NMC 19.07.030. (Ord. 2021-634 § 3).

17.09.060 Applications.

A. Who May Apply. Any owner of real property may, personally or through an agent, apply for a decision regarding property he or she owns.

B. How to Apply. The applicant shall file the following information with the department of community development:

1. A completed application, with supporting affidavits, on forms provided by the department of community development services;

2. Two sets of stamped envelopes, and a list of the same, labeled with the name and address of all current owners of real property, as shown in the records of the county assessor for the subject property, within 500 feet of each boundary of the subject property;

3. A copy of the county assessor’s map identifying the properties specified in subsection (B)(2) of this section;

4. A vicinity map showing the subject property with enough information to locate the property within the larger area;

5. Any information or material that is specified in the provision of this title that describes the applied-for decision;

6. All information specified in this title for a complete application for the type of development proposal. The detail to be included in the development proposal is based on the council’s direction identified in NMC 17.09.030 and shall be related to the nature and scope of the project and its potential impacts; and

7. Any additional information or material that the director of community development services determines is reasonably necessary for a decision on the matter.

C. Fee. With the application the applicant shall submit the fee established by the city. The application will not be accepted unless it is accompanied by the required fee and meets the requirements of this title and this section relating to what constitutes a complete application for the type of development proposal. (Ord. 2021-634 § 3).

17.09.070 Official file.

A. Contents. The city shall compile an official file on the application containing the following:

1. All application materials submitted by the applicant.

2. The staff report.

3. All written comments received on the matter.

4. The electronic recording of the city council on the matter.

5. The decision on the development agreement by the city council.

6. Any other information relevant to the matter.

B. Availability. The official file is a public record. It is available for inspection and copying in the department of community development services during regular business hours. (Ord. 2021-634 § 3).

17.09.080 Preapplications required.

All applicants seeking approval of a development agreement must apply for a preapplication conference with the city. (Ord. 2021-634 § 3).

17.09.090 Compliance with State Environmental Policy Act.

The State Environmental Policy Act applies to some of the decisions that will be made using this chapter. The director of community development services shall evaluate each proposal and, where applicable, comply with the State Environmental Policy Act and with state regulations and city ordinances issued under authority of the State Environmental Policy Act. (Ord. 2021-634 § 3).

17.09.100 Development proposal.

A. Any development plan accompanying the development agreement shall be subject to the applicable project permit/approval application type pursuant to NMC 19.07.030. The application shall not be deemed complete until a draft development agreement has been prepared and a development proposal conforming to the parameters of the development agreement and meeting all pertinent requirements has been submitted.

B. Development agreements are not “project permit applications” as defined in RCW 36.70B.020(4). Therefore, there is no deadline for processing a development agreement. (Ord. 2021-634 § 3).

17.09.110 Timing of public hearings.

Any requests associated with the project-specific development proposal requiring a public hearing by the hearing examiner shall be heard by the hearing examiner prior to the public hearing by the city council on the development agreement. The hearing examiner’s review shall follow the provisions of Chapter 19.07 NMC, project permit application Type IV, and shall be limited to that particular aspect under his or her purview and shall not extend to either the development agreement or the development agreement’s application to the project-specific development proposal. (Ord. 2021-634 § 3).

17.09.120 Factors to be considered in review of a development agreement.

The city shall consider, but is not limited to, the following criteria when considering whether to approve a development agreement:

A. The proposed development agreement will result in a development that is in conformance with, and substantially implements, the comprehensive plan;

B. The proposed development agreement will result in a development that is compatible with adjacent land uses and surrounding neighborhoods;

C. The proposed development agreement will result in a development that adequately mitigates impacts to public facilities including utilities, roads, public transportation, parks, recreation, and schools; and

D. The proposed development agreement will result in a development that provides greater public benefits to the community and provides superior outcomes than those that would result from strict compliance with applicable development regulations. (Ord. 2021-634 § 3).

17.09.130 Public notice.

Public notice provisions under this section shall be consistent with the requirements for Type IV project permit applications pursuant to Chapter 19.11 NMC. (Ord. 2021-634 § 3).

17.09.140 Staff report.

A. Contents. The director of community development shall prepare a staff report for the public hearing by the city council containing the following information:

1. All pertinent application materials.

2. All comments regarding the matter received by the department of community development prior to distribution of the staff report.

3. An analysis of the application under the relevant provisions of this title and the comprehensive plan.

4. A statement of the facts found by the director of community development and the conclusions drawn from those facts.

5. A recommendation on the matter.

B. Distribution. Prior to the hearing, the director of community development shall distribute the staff report as follows:

1. A copy will be sent to the members of the city council.

2. A copy will be sent to the applicant.

3. A copy will be sent to each person who has specifically requested it. (Ord. 2021-634 § 3).

17.09.150 Public hearing and city council action.

A. Generally. The city council shall consider the application for approval of the development agreement after holding a public hearing.

B. Scope of Review. The city council may consider the request for approval of the development agreement on the criteria set forth in this chapter.

C. City Council Action. After consideration of the entire matter and upon approval by a majority of the voting membership, the city council may take one of the following actions:

1. The city council may:

a. Grant the application as proposed or modify and grant the application. In either case, it shall give effect to this decision by adopting a resolution, which approves the application based on the approved development agreement and development proposal;

b. Deny the application. The city council shall give effect to a denial by adopting a resolution; or

c. Remand for additional information.

2. Findings of Fact and Conclusions. The city council shall include in the ordinance or resolution:

a. A statement of the facts that support the decision, including any conditions and restrictions that are imposed; and

b. The city council’s conclusions based on those facts.

D. Effect. The decision of city council on an application for a development agreement is the final decision of the city. (Ord. 2021-634 § 3).

17.09.160 Notice of final decision.

A. General. Following the final decision by the city council, the director of community development shall prepare a notice of the city’s final decision on the application.

B. Distribution. After the city council’s decision is made, the director of community development services shall distribute a copy of the notice of the final decision pursuant to NMC 19.09.050. (Ord. 2021-634 § 3).

17.09.170 Judicial review.

Pursuant to RCW 36.70B.200, if the development agreement relates to a project permit application, the provisions of Chapter 36.70C RCW shall apply to the appeal of the decision on the development agreement. (Ord. 2021-634 § 3).

17.09.180 Term and effect of agreement.

A. Unless amended or terminated, a development agreement is enforceable during its term by a party to the agreement.

B. A development agreement and the development standards in the agreement govern during the term of the agreement, or for all or part of the build-out period specified in the agreement, and may not be subject to an amendment to a zoning ordinance or development standard or regulation adopted after the effective date of the agreement. Provided, however, in all development agreements the city shall reserve the authority to impose new or different regulations to the extent required by serious threat to public health and safety.

C. A permit or approval issued by the city after the execution of the development agreement must be consistent with the development agreement. (Ord. 2021-634 § 3).

17.09.190 Recording.

A development agreement shall be recorded with the King County department of records at the cost of the applicant. During the term of the development agreement, the agreement is binding on the parties and their successors. (Ord. 2021-634 § 3).

17.09.200 Amendment of development agreement.

Amendments to the terms of the development agreement shall be done only by a written instrument executed by all parties pursuant to the procedures of this chapter, or as may be amended. The city will process and decide upon an application for an amendment as if it were an application for a new development agreement. (Ord. 2021-634 § 3).

17.09.210 Minor modification of development proposal.

The director of community development may approve minor modifications to the development proposal on a case-by-case basis pursuant to NMC 19.09.060. Criteria for approving minor modifications include but are not limited to the following guidelines:

A. Modifications shall conform to the terms of the development agreement;

B. The change will not result in reducing the total landscaped area, buffer areas, or the amount of open space on the project;

C. The change will not result in increasing the residential density or gross floor area of the project;

D. The change will not reduce any required yard;

E. The change will not result in any increase in height of any structure;

F. The change will not result in a change in the location of any access point to the project;

G. The change will not increase any adverse impacts or undesirable effects of the project; and

H. The change in no way significantly alters the project.

Any modification to the development proposal not deemed to be minor shall be considered major and shall be reviewed and decided upon as if it were an application for a new development agreement and/or development proposal. (Ord. 2021-634 § 3).