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1 From: Martin, Larry Sent: Tuesday, June 14, 2016 10:16 AM To: [EMAIL REDACTED] Cc: Paulette M. Norman ([EMAIL REDACTED]); Min Luo; 'Rob Crittenden'; Jessica Clawson ([EMAIL REDACTED]) Subject: Redmond Town Center Transportation Impact Fee Credit Issue Attachments: State and Local Statues on Impact Fee Credits.pdf; 1998 RTC Traffic Mitigatin Agreement - Signed.pdf; RTC Trip Entitlements - History.pdf Hello Jim – I represent DRA Advisors, LLC, which through it ownership entities, owns the retail-mixed use portion of Redmond Town Center (RTC). Per Min Luo’s email below, I understand you have been (or will be) asked to help City staff resolve a question that has arisen concerning entitlement to transportation impact fee credits. DRA has sold an undeveloped parcel designated “future development” in the RTC Master Plan to Lowe Enterprises. Lowe is completing its site plan entitlement process for an apartment complex. DRA wants to assign impact fee credits to Lowe to offset impact fees for the project. As Min notes, the RTC transportation mitigation agreement (attached) between the developer and prior owner of RTC provided for complete mitigation of all transportation impacts from development of all phases of RTC through 2010. Accordingly, I agree the City is entitled to review transportation impacts of the Lowe project under current, updated traffic models, and determine whether additional mitigation is required. However, whether credit must be given against impact fees for mitigation that has already been provided in the form of extensive road construction, dedication of land, and payment of fees is another question. I know you are familiar with these, but for convenience, I have attached state statutes and portions of the Redmond Municipal Code that require that credits be given. I have also attached Jeff Haynie’s memo providing background of how this has been handled at RTC previously, and his analysis of the current situation. Jim, I would like to schedule a time when we can discuss this situation on the phone, or even better, perhaps I can meet you when you are at the City or in your office to talk this through. Can we do that this week? Thanks, Jim. Larry Larry Martin I Davis Wright Tremaine LLP 777 108th Avenue NE, Suite 2300 I Bellevue, WA 98004 Office: (425) 646-6153 I Cell: (425) 283-3886 Email: [EMAIL REDACTED] I Website: www.dwt.com Anchorage I Bellevue I Los Angeles I New York I Portland I San Francisco I Seattle I Shanghai I Washington, D.C. From: Min Luo [mailto:[EMAIL REDACTED]] Sent: Friday, June 10, 2016 8:47 AM To: Morris, Suzi <[EMAIL REDACTED]>; Michael Read <[EMAIL REDACTED]>; Skone, Colin <[EMAIL REDACTED]>; Chris Nagamine <[EMAIL REDACTED]> Cc: Jeff Haynie <[EMAIL REDACTED]>; Paulette M. Norman <[EMAIL REDACTED]>; Sarah Vanags ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- TENW Transportation Engineering NorthWest Transportation Planning I Design I Traffic Impact & Operations 11400 SE 8th Street, Suite 200, Bellevue, WA 98004 I Office (425) 889-6747 MEMORANDUM DATE: May 20, 2016 TO: Rob Crittenden, P.E./Min Luo, P.E. City of Redmond FROM: Jeff Haynie, P.E. TENW SUBJECT: Redmond Town Center Entitled Trips TENW Project No. 5208 This memorandum documents a summary of our understanding of the status of the entitled trips on the Redmond Town Center (RTC) site located in Redmond, Washington. Background/History The RTC site as originally entitled in the late 1990’s, is generally bounded by Bear Creek Parkway to the south, 170th Ave NE to the east, NE 76th Street to the north, and Leary Way to the west. The traffic study completed for the RTC project was based on a full buildout land use that was estimated to generate 2,363 PM peak hour trips. Transportation system mitigation requirements were imposed by the City of Redmond to mitigate the transportation system impacts associated with full buildout of the RTC site. The Redmond Town Center master developer was required to construct all of the transportation system improvements necessary for full development of the site prior to the opening of the first phase of RTC. Mitigation included construction of numerous street improvements, dedication of land for rights-of-way, payment of a mitigation fee to Redmond in the amount of $229,277 and payment of a fee in the amount of $46,675 to King County to mitigate impacts to the SR 520/202 intersection. The required transportation improvements and right-of-way dedications are listed on Exhibits D and E to the Redmond Town Center Traffic Mitigation Agreement. A copy of each exhibit is included with this memorandum as Attachment A. Revisions to the Redmond Town Center Master Plan were subsequently proposed and analyzed in an EIS Addendum dated December 23, 1997 (“Addendum”). The revisions were approved by the City. The revised Master Plan changed the relative quantities of commercial and retail development and increased the maximum allowed combined commercial and retail development to the current level of 1,490,000 GLA (which may be increased up to 1,800,000 GLA with use of TDRs and/or the Green Building Program). The traffic analysis set forth in the EIS Addendum showed that 2,367 PM peak hour trips would result from full build out of the revised Master Plan—an increase of just four trips compared to full build out of the development as originally approved. The City approved the amended Master Plan. The City also approved the transfer of 281 additional PM peak hour trips to RTC from the RTC West site as part of an agreement to keep that site undeveloped, resulting in a total of 2,648 entitled trips (2,367 + 281). The most recent correspondence with the City of Redmond regarding RTC entitled trips was in 2002. In 2002, the Marriott Hotel was added to the RTC site. Based on the traffic analysis completed for this project, it was determined the RTC site’s total trip generation was 2,254 PM peak hour trips. As a result, the remaining ---PAGE BREAK--- Memorandum – RTC Entitled Trips TENW May 20, 2016 Page 2 entitled PM peak hour trips on the RTC site is 394 trips (2,648 - 2,254). See Attachment B for the most recent public documentation outlining this information. Available Use of Entitled PM Peak Hour Trips Based on our historical involvement, it is our understanding the remaining 394 PM peak hour entitled trips can be applied to future development on the RTC site. Historically, the entitled trips have been used to exempt projects from both concurrency and impact fees. Also, the only level of analysis needed was essentially a consistency memorandum similar to the one included in Attachment B. Transfer of Remaining Entitled PM Peak Hour Trips DRA Advisors, through its ownership entities, is the current owner of those portions the revised Town Center Master Plan area designated as sites for future development. We understand that DRA Advisors can transfer a portion or all of the remaining 394 PM peak hour entitled trips to a third party for use to satisfy impact fees and transportation concurrency as long as the receiving project falls within the boundaries of RTC. It is our understanding that a third party is planning a proposed project (Redmond Town Center Apartments) on Parcel 5B within the original boundaries of the RTC site. The proposed project would include an 8-story mixed use building containing approximately 285 residential units and 8,092 sf of ground-floor retail. The estimated trip generation for this project is 127 PM peak hour trips. With 394 entitled PM trips remaining on the RTC site, 127 PM trips could be transferred to accommodate the proposed Parcel 5B development and still have 267 remaining entitled PM peak hour trips to accommodate future development. Please call me at [PHONE REDACTED] or email me at [EMAIL REDACTED] if you have any questions with the information presented in this memo. ---PAGE BREAK--- Memorandum – RTC Entitled Trips TENW May 20, 2016 Page 3 ATTACHMENT A Exhibits D and E to Redmond Town Center Traffic Mitigation Agreement ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- Memorandum – RTC Entitled Trips ATTACHMENT B RTC Marriott Hotel Trip Generation May 1, 2002 ---PAGE BREAK--- Transportation Engineering/Operations ♦ Impact Studies ♦ Design Services ♦ Transportation Planning/Forecasting Eastside Office: 11410 NE 124th Street, #691 ♦ Kirkland, WA 98034 ♦ Office (425) 820-1728 ♦ Fax (425) 820-5913 Seattle Office: PO Box 65254 ♦ Seattle, WA 98155 ♦ Office/Fax (206) 361-7333 ♦ Toll Free (888) 220-7333 Transportation Engineering NorthWest, LLC Memorandum DATE: May 1, 2002 TO: Rob Crittenden, P.E. City of Redmond FROM: Jeff Haynie P.E. Transportation Engineering Northwest, LLC RE: RTC – Marriott Hotel Trip Generation TENW Project No. 2178 This memorandum documents the estimated p.m. peak hour trip generation associated with the proposed Marriott Hotel at Redmond Town Center (RTC) as it relates to the overall site and the traffic entitlement for the RTC development. The RTC Marriott Hotel is proposed to include 262 rooms. The number of entitled trips for the RTC site was determined based on the approved master plan for the Redmond Town Center site, as documented in the Redmond Town Center EIS Addendum Appendix C, dated April 1995. The p.m. peak hour trip generation associated with full buildout of the site includes 2,367 net p.m. peak hour trips (see Attachment Based on the approved master plan, the RTC development has mitigated the off-site impacts associated with these trips and is vested to this p.m. peak hour trip level. It should be noted that the 281 p.m. peak hour trips that have been approved and transferred from the RTC West site have not been included in this analysis. The p.m. peak hour trips from the RTC site (including the proposed Bon Marche) with the addition of the Marriott Hotel was determined using the trip generation methodology documented in the Institute of Transportation Engineers (ITE) Trip Generation Manual 6th edition. Reductions to the gross trips were taken to account for both pass-by and internal trips. The pass-by trip percentage used was based on the average pass-by rate determined using building area and adjacent street traffic. As a result, a pass-by rate of 31.2 percent was used. The internal capture rate was conservatively estimated to be 15 percent. It should be noted that Macerich reserves the right to revise the pass-by and internal capture rate for future trip generation estimates associated with the full buildout of the Redmond Town Center site. Based on the ITE trip generation methodology, the RTC site (including the proposed Bon Marche) with the Marriott Hotel is estimated to generate 2,254 net p.m. peak hour trips (860 entering, 1,394 exiting) (see Attachment ---PAGE BREAK--- Transportation Engineering NorthWest, LLC RTC Marriott Hotel May 1, 2002 Page 2 Transportation Engineering/Operations ♦ Impact Studies ♦ Design Services ♦ Transportation Planning/Forecasting Eastside Office: 11410 NE 124th Street, #691 ♦ Kirkland, WA 98034 ♦ Office (425) 820-1728 ♦ Fax (425) 820-5913 Seattle Office: PO Box 65254 ♦ Seattle, WA 98155 ♦ Office/Fax (206) 361-7333 ♦ Toll Free (888) 220-7333 In summary, the net p.m. peak hour trips from the RTC site (including the proposed Bon Marche) with the Marriott Hotel (2,254) is less than the entitled trips for the site (2,367+281). Therefore, the p.m. peak hour trip generation estimated for the Marriott Hotel falls well within the envelope of the entitled and mitigated p.m. peak hour trips. Please call me at (425) 820-1728 if you have any questions regarding the information included in this memorandum. cc: Rick Beason, Macerich Company \RTC Marriott - #2178\Deliverable\RTC Marriott TGEN Memo Final 5-1-02.doc ---PAGE BREAK--- ATTACHMENT A Redmond Town Center Next Phase of Development TENW Project No. 2136 "Approved Land Use" per Redmond Town Center EIS Addendum 10/23/97 - 1,490,000 GLA Land Use Area Units ITE LUC In Out Total In Out Total RETAIL 601,159 GLA 820 1.71 1.71 3.42 1,028 1,029 2,057 Internal Trips 10% 103 103 206 Passby Trips 31% 319 319 638 Subtotal (less internal+passby) = 606 607 1,213 OFFICE (739,341 GLA) 786,742 GFA 710 0.18 0.90 1.08 144 706 850 Internal Trips 15% 22 106 128 Subtotal (less internal) = 122 600 722 BUTLER WALLS Retail 149,500 GLA 820 2.83 2.84 5.67 424 424 848 Internal Trips 10% 43 42 85 Passby Trips 39% 166 165 331 Subtotal (less internal+passby) = 215 217 432 Gross P.M. Peak Hour Trips Generated = 1,596 2,159 3,755 Less Internal Trips = 168 251 419 Less Passby Trips = 485 484 969 Net New P.M. Peak Hour Trips Generated = 943 1,424 2,367 Approved RTC Trips = 2,367 Trips Transferred from RTC West = 281 Total RTC Entitled Trips = 2,648 Trips Generation Rate Trips Generated Peak Peak Marriott TGEN Revised 4-30-02 4/30/2002 ---PAGE BREAK--- ATTACHMENT B Redmond Town Center Next Phase of Development TENW Project No. 2136 Existing Trip Generation + Bon Marche + Marriott Land Use Area Units ITE LUC In Out Total In Out Total EXECUTIVE HOTEL (115,496 GLA) 175 Occupied Rooms 312 0.37 0.25 0.62 65 44 109 Internal Trips 15% 9 7 16 Subtotal (less internal) = 56 37 93 HOTEL (Marriott - 150,000 GLA) 262 Occupied Rooms 310 0.35 0.36 0.71 91 95 186 Internal Trips 15% 14 14 28 Subtotal (less internal) = 77 81 158 RETAIL(with 115k Bon Marche) 635,392 GLA 820 1.61 1.74 3.35 1,021 1,107 2,128 Internal Trips 15% 153 166 319 Passby Trips 1 31.2% 270 294 564 Subtotal (less internal+passby) = 598 647 1,245 OFFICE (681,030 GLA) 724,616 GFA2 710 0.21 1.02 1.23 152 740 892 Internal Trips 15% 23 111 134 Subtotal (less internal) = 129 629 758 Gross P.M. Peak Hour Trips Generated = 1,329 1,986 3,315 Less Internal Trips = 199 298 497 Less Passby Trips = 270 294 564 Net New P.M. Peak Hour Trips Generated = 860 1,394 2,254 Note: 1. Passby trip rate = average of passby rates determined using building area and adjacent street traffic. 2. Office GFA = 1.064 X GLA Trips Generation Rate Trips Generated Peak Peak Marriott TGEN Revised 4-30-02 4/30/2002