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AN ORDINANCE related to natural resources; establishing policies and procedures for the administration of the transfer of development credit bank; defining amenities; amending Ordinance 12076, Section 9, as amended, and K.C.C. 4.08.015, adding new sections to K.C.C. chapter 21A.06, adding new sections to K.C.C. chapter 21A.55 and adding a new section to K.C.C. chapter 4.08.
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PREAMBLE:
For the purpose of effective land use planning and regulation, the King County council makes the following legislative findings:
1. The Growth Management Act identifies transfer of development credits as an innovative technique for land use management.
2. King County has a long tradition of developing innovative strategies to conserve resource and environmentally sensitive lands that are essential to this region's quality of life.
3. Protecting rural farms and forests, agricultural and open space lands, wildlife habitat, urban separators, regional trail or natural linkages, historic sites and proposed park sites is a goal of the countywide planning policies, the King County Comprehensive Plan and the transfer of development credit (TDC) pilot program established in Ordinance 13274.
4. Countywide planning policy LU-14 establishes that the county may transfer density from rural area properties to other rural or urban area properties in order to secure county open space land, protect a significant natural resource or retain rural resource-based uses.
5. The 1999 adopted budget, Ordinance 13340, includes one million five hundred thousand dollars for purchase of development credits from the rural and urban unincorporated areas and five hundred thousand dollars for receiving area amenities to offset the impacts of increased densities in urban incorporated or unincorporated areas.
6. The city council of Seattle is considering adopting an ordinance to establish a TDC program in the Denny Triangle neighborhood in downtown Seattle, which will be the first Urban Center in this region to receive development credits from rural areas.
7. Ordinance 13340 includes a proviso stating that no funds may be expended or encumbered for purchasing development rights from sending sites until enactment of an ordinance establishing policies for management of the TDC program and bank and approval of a work program specifying use of amenity funds.
8. Ordinance 13340 further provides that expenditures from transit CIP project number A00473, smartgrowth amenities, shall be limited to transit supportive infrastructure normally included as transit expenses in the capital improvement program. No funds may be expended from this project until the council adopts by motion a work program specifying use of these funds.
9. Ordinance 13340 further provides that two hundred fifty thousand dollars in expenditures from Roads CIP project #RDCW 17, agreements with other agencies, shall be available for smartgrowth amenities under the transfer of development rights program. No funds may be expended from this project until the council adopts by motion a work program specifying use of these funds.
BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:
NEW SECTION. SECTION 1. There is hereby added to K.C.C. chapter 21A.06 a new section to read as follows:
Public transportation amenities. Public transportation amenities: Transfer of Development Credits (TDC) amenities financed by public transportation funds that shall provide transportation improvement or programs.
NEW SECTION. SECTION 2. There is hereby added to K.C.C. 21A.06 a new section to read as follows:
Road amenities. Road amenities: Transfer of Development Credits (TDC) amenities financed by road CIP or operating funds that shall provide transportation improvements or programs.
NEW SECTION. SECTION 3. There is hereby added to K.C.C. 21A.06 a new section to read as follows:
TDC. TDC transfer of development credit.
NEW SECTION . SECTION 4. There is hereby added to K.C.C. 21A.06 a new section to read as follows:
TDC amenities. TDC amenities: improvements or programs that are implemented to facilitate increased densities on or near receiving sites inside cities or in the urban unincorporated area.
NEW SECTION. SECTION 5. There is hereby added to K.C.C. 21A.06 a new section to read as follows:
TDC bank fund. TDC bank fund: the fund established under section 9 of this ordinance.
NEW SECTION. SECTION 6. There is hereby added to K.C.C. 21A.06 a new section to read follows:
TDC conversion ratio. TDC conversion ratio: the ratio by which development credits purchased from a sending site are converted into additional development capacity for use on a receiving site.
NEW SECTION. SECTION 7. There is hereby added to K.C.C. 21A.06 a new section to read as follows:
TDC executive board. TDC executive board: the board established under section 12 of this ordinance.
NEW SECTION. SECTION 8. There is hereby added to K.C.C. chapter 21A.55 a new section to read as follows:
Transfer of development credit (TDC) pilot program -- transfer of development credit (TDC) bank -- purpose. The purpose of the TDC bank is to assist in the implementation of the transfer of development credit pilot program by purchasing and selling development credits. The TDC bank may purchase development credits only from sending sites located in the rural area or in an agricultural production district as designated in the King County Comprehensive Plan. Development credits purchased from the TDC Bank may only be used for receiving sites in cities or in the urban unincorporated area as designated in the King County Comprehensive Plan.
NEW SECTION. SECTION 9. There is hereby added to K.C.C. chapter 4.08 a new section to read as follows:
Transfer of development credit (TDC) pilot program -- TDC bank fund authorization. The TDC bank fund is hereby established and shall be classified as a first tier fund with all investment proceeds credited to the fund. The fund shall be managed by the resource lands section in the department of natural resources or its successor. Appropriation authority of one million five hundred thousand dollars established in fund 3522, project 352320 in Ordinance 13340 shall be transferred by the executive to the TDC bank fund, in a new project.
NEW SECTION. SECTION 10. There is hereby added to K.C.C. chapter 21A.55 a new section to read as follows:
A. The TDC bank may purchase development credits from qualified sending sites at prices not to exceed fair market value and to sell development at prices not less than fair market value. The TDC bank may accept donations of development credits from qualified TDC sending sites.
B. The TDC bank may use funds to facilitate development credit transfers. These expenditures may include, but are not limited to, establishing and maintaining internet web pages, marketing TDC receiving sites, procuring title reports and appraisals and reimbursing the costs incurred by the department of natural resources, resource lands and open space section, or its successor, for administering the TDC bank fund and executing development credit purchases and sales.
C. The TDC bank fund shall not be used to cover the cost of identifying and qualifying sending and receiving sites, or the costs of providing staff support for the TDC interagency review committee or the office of regional policy and planning.
NEW SECTION. SECTION 11. There is hereby added to K.C.C. chapter 21A.55 a new section to read as follows:
Transfer of development credit (TDC) pilot program -- administration of TDC bank.
A. The department of natural resources, resource lands and open space section, or its successor, shall administer the TDC bank fund and execute purchases and sales of development credits in a timely manner consistent with policy set by the TDC executive board. These responsibilities include, but are not limited to:
1. Managing the TDC bank fund;
2. Authorizing and monitoring expenditures;
3. Keeping records of the dates, amounts and locations of development credit purchases and sales;
4. Executing development credit purchases, sales and conservation easements; and
5. Providing periodic summary reports of TDC bank activity for TDC executive board consideration.
B. The department of natural resources, resource lands and open space section, or its successor, in executing purchase and sale agreements for acquisition of development credits shall ensure sufficient values are being obtained and that all transactions, conservation easements or fee simple acquisitions are consistent with public land acquisition guidelines.
NEW SECTION. SECTION 12. There is hereby added to K.C.C. chapter 21A.55 a new section to read as follows:
Transfer of development credit (TDC) pilot program -- sale of TDC credits by TDC bank.
A. The sale of development credits by the TDC bank shall be at a price that equals or exceeds the fair market value of the credits. The fair market value of the credits shall be established by the department of natural resources and shall be based on the amount the county paid for the development credits and the prevailing market conditions.
B. When selling development credits, the TDC bank may select prospective purchasers based on the price offered for the credits, the number of credits offered to be purchased, and the potential for the sale to achieve the purposes of the TDC program. C. The TDC bank may sell development credits only in whole or half increments to incorporated receiving sites through an interlocal agreement The TDC bank may sell development credits only in whole increments to unincorporated King County receiving sites.
D. All offers to purchase development credits from the TDC bank shall be in writing, shall include a certification that the credits, if used, shall be used only inside an identified city or within the urban unincorporated area, include a minimum ten-percent down payment with purchase option, shall include the number of credits to be purchased, proposed purchase price and the required date or dates for completion of the sale, not later than one hundred twenty calendar days after the date of receipt by King County of the purchase offer.
E. Payment for purchase of development credits from the TDC bank shall be in full at the time the development credits are transferred unless otherwise authorized by the department of natural resources.
NEW SECTION. SECTION 13. There is hereby added to K.C.C. chapter 21A.55 a new section to read as follows:
Transfer of development credit (TDC) pilot program -- requirements for transfers by the TDC bank for use in incorporated receiving areas.
A. For credits sold by the TDC bank to be used in incorporated receiving site areas, the county and the affected city or cities must first have executed an interlocal agreement and the city or cities must have enacted appropriate legislation to implement the program for the receiving area.
B. At a minimum, each interlocal agreement shall describe the legislation that the receiving jurisdiction adopted or will adopt to allow the use of development credits, shall identify the receiving area, should address the conversion ratio to be used in the receiving site area. If the city is to receive any amenity funds, the interlocal agreement shall set forth the amount of funding and the amenities to be provided in accordance with section 8 I of this ordinance. Such an interlocal agreement may also indicate that a priority should be given by the county to acquiring development credits from sending sites in specified geographic areas. If a city has a particular interest in the preservation of land in a rural area or in the specific conditions on which it will be preserved, then the interlocal agreement may provide for periodic inspection or special terms in the conservation easement to be recorded against the sending site as a pre acquisition condition to purchases of development credits within specified areas by the TDC bank.
C. A TDC conversion ratio for development credits purchased from a sending site and transferred to an incorporated receiving site area may express the amount of additional development credit in terms of any combination of units, floor area, height and other applicable development standards that may be modified by the city to provide incentives for the purchase of development credits.
NEW SECTION. SECTION 14. There is hereby added to K.C.C. chapter 21A.55 a new section to read as follows:
Transfer of development credit (TDC) pilot program -- expenditure of TDC bank funds on TDC amenities -- restrictions.
A. Expenditures by the county for amenities to facilitate development credit sales shall be authorized by the TDC executive board during review of proposed interlocal agreements, and should be roughly proportionate to the value and number of development credits anticipated to be accepted in an incorporated receiving site incorporated receiving site jurisdiction pursuant to the controlling interlocal agreement, or in the unincorporated urban area, in accordance with K.C.C. 21A.55.150.
B. The county shall not expend funds on TDC amenities in a city before execution of an interlocal agreement, whichever first occurs, except that:
1. The executive may authorize up to twelve thousand dollars be spent by the county on TDC amenities before a development credit transfer for use at a receiving site or the execution of an interlocal agreement if the TDC executive board recommends that the funds be spent based on a finding that the expenditure will expedite a proposed transfer of development credits or facilitate acceptance of a proposed transfer of development credits by the community around a proposed or established receiving site area;
2. King County may distribute the funds directly to a city if a scope of work, schedule and budget governing the use of the funds is mutually agreed to in writing by King County and the affected city. Such an agreement need not be in the form of an interlocal agreement; and
3. The funds may be used for project design renderings, engineering or other professional services performed by persons or entities selected from the King County approved architecture and engineering roster maintained by the department of finance or an affected city's approved architecture and engineering roster, or selected by an affected city through its procurements processes consistent with state law and city ordinances.
C. TDC amenities may include the acquisition, design or construction of public art, cultural and community facilities, parks, open space, trails, roads, parking, landscaping, sidewalks, other streetscape improvements, transit-related improvements or other improvements or programs that facilitate increased densities on or near receiving sites.
E. King County funding of amenities shall not exceed appropriations adopted by the council or funding authorized in interlocal agreements, whichever is less.
F. Public transportation amenities shall enhance the transportation system. These amenities may include capital improvements such as passenger and layover facilities, if the improvements are within a designated receiving area or within one thousand five hundred feet of a receiving site. These amenities may also include programs such as the provision of security at passenger and layover facilities and programs that reduce the use of single occupant vehicles, including car sharing and bus pass programs.
G. Road fund amenities shall enhance the transportation system. These amenities may include capital improvements such as streets, traffic signals, sidewalks, street landscaping, bicycle lanes and pedestrian overpasses, if the improvements are within a designated receiving site area or within one thousand five hundred feet of a receiving site. These amenities may also include programs that enhance the transportation system.
H. All amenity funding provided by King County to cities to facilitate the transfer of development credits shall be consistent with federal, state and local laws.
I. The timing and amounts of funds for amenities paid by King County to each participating city shall be determined in an adopted interlocal agreement. The interlocal agreement shall set forth the amount of funding to be provided by the county, an anticipated scope of work, work schedule and budget governing the use of the amenity funds. Except for the amount of funding to be provided by the county, these terms may be modified by written agreement between King County and the city. Such an agreement need not be in the form of an interlocal agreement. Such an agreement must be authorized by the TDC executive board. If amenity funds are paid to a city to operate a program, the interlocal agreement shall set the period during which the program is to be funded by King County.
J. A city that receives amenity funds from the county is responsible for using the funds for the purposes and according to the terms of the governing interlocal agreement.
K. To facilitate timely implementation of capital improvements or programs at the lowest possible cost, King County may make amenity payments as authorized in an interlocal agreement to a city before completion of the required improvements or implementation programs, as applicable. If all or part of the required improvements or implementation programs in an interlocal agreement to be paid for from King County funds are not completed by a city within five years from the date of the transfer of amenity funds, then, unless the funds have been used for substitute amenities by agreement of the city and King County, those funds, plus interest, shall be returned to King County and deposited into the originating amenity fund for reallocation to other TDC projects.
L. King County is not responsible for maintenance, operating and replacement costs associated with amenity capital improvements inside cities, unless expressly agreed to in an interlocal agreement.
NEW SECTION. SECTION 15. There is hereby added to K.C.C. chapter 21A.55 a new section to read as follows:
Transfer of development credit (TDC) pilot program -- TDC executive board -- establishment -- membership -- duties.
A. The TDC executive board is hereby established. The TDC executive board shall be composed of the director of the budget office, the director of the department of natural resources, the director of the department of transportation, the director of the department of parks and recreation and the director of the office of regional policy and planning, or theirdesignees. A representative from the King County council staff, designated by the council chair, may participate as an ex officio, nonvoting member of the TDC executive board. The TDC executive board shall be chaired by the director of the office of regional policy and planning or that director's designee.
B. The issues that may be addressed by the executive board include, but are not limited to, using site evaluation criteria established by administrative rules, ranking and selecting sending sites to be purchased by the TDC bank, recommending interlocal agreements and the provision of TDC amenities, if any, to be forwarded to the executive, identifying future funding for amenities in the annual budget process, enter into other written agreements necessary to facilitate density transfers by the TDC bank and otherwise oversee the operation of the TDC bank to measure the it's effectiveness in achieving the policy goals of the TDC pilot program established in Ordinance 13274.
D. The office of regional policy and planning shall provide lead staff support to the TDC executive board. Staff duties include, but are not limited to:
1. Making recommendations to the TDC executive board on TDC program and TDC bank issues on which the TDC executive board must take action;
2. Facilitating development credit transfers through marketing and outreach to the public, community organizations, developers and cities;
3. Identifying potential receiving sites;
4. Developing proposed interlocal agreements with cities;
5. Assisting in the implementation of TDC executive board policy in cooperation with other departments;
6. Ranking certified sending sites for consideration by the TDC executive board;
7. Negotiating with cities to establish city receiving areas with the provision of amenities;
8. Preparing agendas for TDC executive board meetings;
9. Recording TDC executive board meeting summaries;
10. Preparing administrative rules in accordance with K.C.C. chapter 2.98 to implement this chapter; and
11. Preparing annual reports on the progress of the TDC program to the council with assistance from other departments.
NEW SECTION. SECTION 16. There is hereby added to K.C.C. 21A.55 a new section to read as follows:
Transfer of development credit (TDC) pilot program -- exemption from surplus provisions. The transfer of development credits from the TDC bank may be completed consistent with King County's needs and in accordance with the criteria of this chapter. The transfers are exempt from the real and personal property provisions of K.C.C. chapter 4.56.
SECTION 17. Ordinance 12076, Section 9, as amended, and K.C.C. 4.08.015 are each hereby amended to read as follows:
First tier funds and designated fund managers. A. First tier funds and fund managers are as follows:
Fund No. Fund Title Fund Manager
104 Solid Waste Landfill Post Closure Dept. of Natural Resources
Maintenance
109 Recorder's O & M Dept. of Information &
Administrative Services
111 Enhanced-911 Emergency Tel System Dept. of Information &
Administrative Services
112 Mental Health Dept. of Community & Human
Services
115 Road Improvement Guaranty Dept. of Transportation
119 Emergency Medical Services Dept. of Public Health
121 Surface Water Management Dept. of Natural Resources
122 Automated Fingerprint Identification Dept. of Public Safety
System
125 Bridge Replacement Dept. of Transportation
127 Real Estate Excise Tax (REET) Dept. of Finance
128 Local Hazardous Waste Dept. of Public Health
129 Youth Sports Facilities Grant Dept. of Parks & Cultural
Resources
130 Real Estate Excise Tax (REET)#2 Dept. of Finance
131 Noxious weed control fund Dept. of Natural Resources
134 Development and Environmental Dept. of Development &
Services Environmental Svcs
164 Two-Tenths Sales Tax Revenue Dept. of Transportation
Receiving
165 Public Transit Self Insurance Dept. of Transportation
303 Solid Waste Const 1987 Dept. of Natural Resources
305 Police Field Fac Const 1987 Dept. of Public Safety
309 Neighborhood Parks & Open Space Dept. of Construction & Facility
Management
311 Zoo Development Dept. of Finance
312 HMC Long Range CIP Dept. of Construction & Facility
Management
313 Health Department Clinic Projects Dept. of Construction & Facility
Const Management
314 Solid Waste Const 1989 Dept. of Natural Resources
315 Conservation Futures Levy Dept. of Natural Resources
316 Parks, Rec. & Open Space Dept. of Construction & Facility
Management
318 Surface & Storm Water Mgmt Const Dept. of Natural Resources
319 Youth Svcs Detention Facility Const Dept. of Construction & Facility
Management
320 One Percent for Art Dept. of Parks & Cultural
Resources
322 Housing Opportunity Acquisition Dept. of Community & Human
Services
326 1990 Series B Youth Detention Facility Dept. of Construction & Facility
Management
327 Equipment and Building Acquisition Dept. of Finance
328 Pacific Medical Center Const Dept. of Finance
329 SWM CIP Construction 1992-1997 Dept. of Natural Resources
330 River and Flood Control Const 1961 Dept. of Natural Resources
331 Building Modernization Construction Dept. of Construction & Facility
Management
333 Health Centers Construction Dept. of Construction & Facility
Management
334 Capital Acqn and County Fac Budget Organization in Executive
Renovation Office
335 Youth Services Facilities Construction Dept. of Construction & Facility
Management
336 Arterial Highway Development Dept. of Transportation
338 Airport Construction Dept. of Construction & Facility
Management
339 Working Forest 1995 B Dept. of Natural Resources
340 Parks CIP Dept. of Natural Resources
340-3 Urban Reforestation & Habitat Dept. of Natural Resources
Restoration
341 Arts and Historic Preservation Capital Dept. of Parks & Cultural
Resources
342 Major Maintenance Reserve Dept. of Construction & Facility
Management
343 Core GIS Capital Project Dept of Information &
Administrative Services
345 Cedar Hills Center Construction Dept. of Construction & Facility
Management
346 Regional Justice Center Construction Dept. of Construction & Facility
Management
347 Emergency Communications System Dept. of Information &
Administrative Services
349 Parks Facilities Rehabilitation Dept. of Construction & Facility
Management
350 Open Space Acquisition Dept. of Natural Resources
381 Solid Waste Cap Equip Recovery Dept. of Natural Resources
383 Solid Waste Environmental Reserve Dept. of Natural Resources
384 Farmland and Open Space Acquisition Dept. of Natural Resources
385 Renton Maintenance Fac Const Dept. of Transportation
386 County Road Construction Dept. of Transportation
387 HMC Construction Dept. of Construction & Facility
Management
388 Jail Renovation & Construction Dept. of Construction & Facility
Management
390 Solid Waste Construction Dept. of Natural Resources
391 Solid Waste Landfill Reserve Dept. of Natural Resources
394 Kingdome CIP Stadium
395 Building Repair & Replace Dept. of Construction & Facility
Management
396 HMC Building Repair and Replacement Dept. of Construction & Facility
Management
398 Industrial Land Reclamation Dept. of Natural Resources
404 Solid Waste Operating Dept. of Natural Resources
429 Airport Operating Dept. of Construction & Facility
Management
448 Stadium Management Stadium
461 Water Quality Dept. of Natural Resources
464 Public Transportation Dept. of Transportation
542 Safety & Workers' Compensation Office of Human Resources
Management
543 Transit nonrevenue vehicle rental and Dept. of Transportation
revolving fund
544 Wastewater equipment rental and Dept. of Transportation
revolving fund
550 Employee Benefits Program Office of Human Resources
Management
551 Facilities Management Dept. of Construction & Facility
Management
552 Insurance Dept. of Information &
Administrative Services
557 Public Works Equipment Rental Dept. of Transportation
558 Motor Pool Equipment Rental Dept. of Transportation
559 Purchasing Stores Dept. of Finance
560 Printing/Graphic Arts Services Dept. of Information &
Administrative Services
622 Judicial Administration Trust and Judicial Administration
Agency
624 School District Impact Fee Budget Organization in Executive
Office
674 Refunded Ltd GO Bond Rdmp. Dept. of Finance
675 Refunded Unltd GO Bond Dept. of Finance
676 H&CD Escrow Dept. of Finance
693 Deferred Compensation Office of Human Resources
Management
696 Mitigation Payment System Dept. of Transportation
843 DMS Limited GO Bonds Dept. of Finance
890 ULID Assessment - 1981 Dept. of Transportation
3643 Transit cross-border lease financing Dept. of Finance
fund
Transfer of development credit (TDC) Dept. of Natural Resources
bank fund
B. The following shall also be first tier funds:
1. All funds now or hereafter established by ordinance for capital construction through specific road improvement districts, utility local improvement districts or local improvement districts. The director of the department of transportation shall be the fund manager for transportation-related funds. The director of the department of natural resources shall be the fund manager for utility-related funds.
2. All county funds that receive original proceeds of borrowings made pursuant to Chapter 216, Washington Laws of 1982, as now existing or hereafter amended, to the extent of the amounts then outstanding for such borrowings for that fund. For purposes of this subsection, the director of the county department or office primarily responsible for expenditures from that fund shall be the fund manager.
3. Any other fund as the council may hereinafter prescribe by ordinance to be invested for its own benefit. If no designation is made by the council upon creation of the county fund, then the fund shall be treated as provided in K.C.C. 4.10.110.
SECTION 18. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance or the application of the provision to other persons or circumstances is not affected.