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City of Puyallup

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AI- 3499   13.    
City Council Agenda
Meeting Date: 02/05/2013  
Subject:    Approve the rezone of city-owned property at 9th Street SW/31st Avenue SW
Presenter: Tom Utterback
Department: Development Services  

Recommended Action
Conduct second reading of an ordinance approving the rezone of City-owned property at 9th Street SW and 31st Avenue SW from "Office Professional" to "Limited Commercial."  
The City Council previously authorized the sale of an approximately 3.0 acre City-owned property at the northeast corner of 9th Street SW and 31st Avenue SW, which was acquired for the now-defunct purpose of siting a new fire station. While originally a split-zone site, in 2011 Council approved a Comprehensive Plan amendment and associated rezone which established a uniform "Office Professional" (OP) zoning for the site. The OP zone permits principally office-type uses.

At Council's August 28, 2012 study session, staff presented the idea of changing the zoning on this site, which consists of four parcels, from Office Professional to Limited Commercial. While similar in scope, the Limited Commercial zone allows a slightly greater range of commercial uses than Office Professional. As noted previously, the real estate broker representing the property on the City's behalf had suggested that the city consider this rezone to help increase interest in the property in the current market. Council concurred and directed staff to initiate this rezone. Site-specific rezones such as this (with no companion Comprehensive Plan map change) require a public hearing before the City Hearing Examiner, which occurred on December 18, 2012. The Hearing Examiner issued a decision approving the request on December 31, 2012. Per City Code, the City Council must next formally amend the City Zoning Map via an ordinance. As the Hearing Examiner held the only allowable open record public hearing on this item, however, the Council's consideration is intended to be solely on the Examiner's record.   

Attached to this packet is the staff report to the Hearing Examiner, which provides more background on this request, as well as a copy of the Examiner's decision and a report provided by the city's real estate broker outlining the rationale for this rezone request.
Previous Actions (Discussions/Presentations)
This property was originally acquired by the City in stages for potential use as a future fire station location. After some time, it was determined that the properties were not needed for this purpose. The parcels were subsequently declared surplus and put on the market for sale.  

In 2011, the City initiated and approved an amendment to the Comprehensive Plan future land use map to redesignate two of the four parcels on the site under a consolidated "Limited Commercial - Professional Office" LC/OP designation and zone district. Prior to the 2011 amendment process, the property was split-zoned, with two of the four parcels zoned "Public Facilities."

At its August 28, 2012 study session, the City Council heard a staff presentation on this potential rezone from Office Professional to Limited Commercial, including a recommendation by the city's real estate broker that the rezone take place. Council directed staff to initiate that rezone process. The City Hearing Examiner held a duly-noticed public hearing on this rezone on December 18, 2012, with a follow-up decisioned rendered on December 31, 2012 to approve this rezone.

The City Council approved first reading of this ordinance at its regular meeting of January 22, 2013.
Summary of Proposal
An ordinance to implement a decision by the City Hearing Examiner approving a rezone on the City-owned site at 9th Street SW and 31st Avenue SW from "Office Professional (OP)" to "Limited Commercial (CL)." 
Council can approve the attached ordinance, implementing the proposed rezone, or not approve the ordinance, which would retain the existing Office Professional zone on the site. 

Fiscal Impact
Amount Budgeted:
Bid Amount:
City Funding Needed for Project:
Funds from Other Sources:
Ongoing Staff Costs:
Fiscal Impacts:
The proposed rezone action does not itself have any fiscal impact. However, it may improve the marketability of the property, thus potentially facilitating the sale of this City-owned asset. Such a sale would have a positive fiscal impact both as to purchase proceeds and to the potential long-term development of the property.

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