ROLL CALL:

Commission Members Tom Barrett; Jim Bishop; Sharon Robinson; Edie Norton; and Danne Neill

Commission Members
Absent Kurt Baumgarten and Allen Matsumoto

Planning Staff Members Tim M Stewart,Director
Greg Aucutt,Senior Planner
Marilyn A Vogel,Senior Planner
Moshe L Quinn,Planner 2
Heather M Aven,Secretary

1. To consider proposed text amendments to the Birchwood Neighborhood Plan. The proposed amendments consist of removing outdated text information and adding new clarification text.

2. Amendments to the Land Use and Development Ordinance (Bellingham Municipal Code, Title 20) to:

· Provide exceptions to the 90,000 square foot size limit for retail establishments. The proposal as drafted would allow exceptions in portions of the Guide Meridian/Cordata Neighborhood and the Meridian Neighborhood by adding regulations to Areas 17C, 18, 19, 20, 25, 26 and 26A of the Guide Meridian/Cordata Neighborhood Zoning Table (BMC 20.00.080) and Areas 1, 1A, 2, 4, 5, 8, 9, 10, 12, 12A and 12B of the Meridian Neighborhood Zoning Table (BMC 20.00.110); and amending BMC 20.10.025, Retail Establishments – Maximum Size; BMC 20.38.050.C. Planned Commercial, and BMC 20.38.050.D. Planned Industrial. New or expanded retail facilities would be allowed to exceed the existing 90,000 sq. ft. size cap if they are located in an Area listed above and if any new or expanded impervious surfacing complies with proposed Green Factor landscaping requirements.
· Adopt a new Chapter Subsection BMC 20.12.030.E. adopting a “Green Factor” landscaping regulation designed to improve the quantity and quality of planted areas while allowing greater flexibility for designers to meet open space and landscaping requirements.


STAFF PRESENTATION – Hearing #1

Moshe Quinn commented on the different processes that have happened to date that have led to the evaluation of the amendments to the Birchwood Neighborhood. He pointed out that the original plan had been adopted in 1980 and contains a lot of outdated information. He explained that staff included more factual information to the plan so that it was more consistent with the current Comprehensive Plan. He emphasized that the amendments do not create a rezone nor does it change any underlying neighborhood boundaries. He highlighted some of the areas that were amended, and discussed the changes that had were done after the Commission received their packet. Moshe emphasized that those departments directly affected by the amendments, reviewed and approved them.

Danne Neill referenced page 2-24, Area 7A. She wanted to know what “the adequacy of sub-surface geology (from previous coal mine use) must be determined prior to any building permit issuance” meant.

Moshe Quinn stated that this was in the original plan and since this was a housekeeping update, this subject was not researched. He commented that the Neighborhood Association would like to do a full neighborhood plan update in the future.


PUBLIC HEARING OPENED

Rebecca Schlotterback, Neighborhood Association Board – stated that the neighborhood supports the changes that staff made to the plan. She reiterated that the plan only underwent a housekeeping update and based on the results of a neighborhood survey, a complete update will be done in the future. She recommended the Commission approve the update.

PUBLIC HEARING CLOSED

DISCUSSION
No Commission discussion.

MOTION: JIM BISHOP MOVED TO ADOPT THE FINDINGS OF FACT, CONCLUSIONS, AND RECOMMENDATIONS CONTAINED IN THE JUNE 25, 2009 BIRCHWOOD NEIGHBORHOOD PLAN UPDATE STAFF REPORT, AND FORWARD A RECOMMENDATION OF APPROVAL TO CITY COUNCIL. DANNE NEILL SECONDED. VOTE: ALL AYES


STAFF PRESENTATION – Hearing #2

David Webster stated that the proposal was created after hours of research and conversations with the community regarding all sides of the issue. He clarified that the ordinance is not being lifted, rather modified so that additional mitigation can be added for anyone who would like to take advantage of the amendment, if approved. He pointed out that the comprehensive plan identifies a regional retail hub area in the Guide Meridian / Cordata Neighborhood. He stated that the proposed amendment would identify this area, create an overlay zone, and specify that exceptions to the current size-cap would only be allowed in that designated area.

David Webster provided an explanation as to why the amendment to the size-cap is coming forward at this time. He commented that this proposal would not diminish the commitment to urban villages, infill, improvement to multi-modal transportation, as well as other community development strategies. He pointed out that, in the administration’s opinion, retaining the economic activity in this designated zone, would allow more resources in other quality of life initiatives. He highlighted some of the reasons that small businesses may depend on larger business, thereby potentially benefiting from the amendment.

David Webster pointed out that if big-box stores were not enticed to remain in the regional retail hub, and instead chose to move beyond the City’s borders, the goals of the comprehensive plan and the benefit of tax revenues would be in jeopardy. He acknowledged that the big-box stores substantially contribute to the City’s tax base; as well as offer diverse opportunities and meet the economic needs of low-income families by providing goods at an affordable price. He reviewed some of the regional strategies that are currently being considered.

Marilyn Vogel provided background on the current 90,000 square foot cap adopted in 2007. She pointed out that there are currently 9 confirmed stores over 100,000 square feet, and provided some statistics relating to what these large retail stores mean to Bellingham. She reviewed some of the reasons that the amendment to the size-cap should be considered. She emphasized that those zones that encourage residential uses and the industrial zones that do not allow major retail uses would be excluded from the proposed exception. She stated that any store taking advantage of the proposed exception would be required to meet a pre-determined Green Factor Score. She provided three different examples of how the Green Factor would work in different circumstances.

Edie Norton wanted to know what the purpose of the Green Factor is.

Marilyn Vogel replied that the Green Factor is intended to achieve more intense plant use in urban areas, so that there is an alternative to pavement.

Danne Neill referenced page 1-10. She stated that there are currently 8 areas zoned planned-commercial and wanted to know if the zoning would be changed in the remaining 11 areas.

Marilyn Vogel replied that the zoning would not change in any area. She clarified that the proposed amendment only applies to the size rule in those areas that currently allow retail.

PUBLIC HEARING OPENED

Charles Law stated that he is not in favor of the proposal. He does not encourage the crowds that the large retail stores attract, and believes that this amendment is an attempt to shore up declining revenues.

Beverly Jacobs stated that the Guide Meridian Neighborhood Association is in favor of allowing big box stores to expand in their own footprint. She pointed out the large retail stores currently employ over 600 people and if they relocate, they not only leave behind neighbors without a job, but big empty spaces as well. She listed some of the benefits the big box stores bring to the City of Bellingham, and encouraged the Planning Commission to not “let them move to other cities that want them”.

Danne Neill wanted to know if the neighborhood was only interested in allowing only Costco and Wal-Mart to expand.

Beverly Jacobs stated that, it was her understanding that only these two stores had requested to expand, even if you do not like them, they are serving a lot of people.

Betsy Pernotto – submitted written comments. She expressed her opposition to the proposed changes to lifting the size-cap. She stated that it was determined in February, 2007 that the big box stores, in excessive of 90,000 square feet, were inconsistent with the Bellingham Comprehensive Plan to “foster the development of urban villages in neighborhoods where people can walk, bike, or drive a short distance to shop, especially for groceries”. She listed some of the unintended negative impacts of a big-box stores, and stated that if the size-cap is modified then strict contingencies must be in place to mitigate the negative impacts. She read from her letter, submitted into the record, and urged the commission to vote no.

Bob Marshall requested that the proposal be denied. He stated that he does not agree that the financial state of the City should be a factor in changing an ordinance that was passed with the intent to define our city for decades to come. He commented that the proposal to allow large retail stores to expand will favor them over other smaller stores. He stated, that in his opinion, amendments to the ordinance will not generate any additional income for Bellingham in the near future.

Julie Guy stated that although she understands why some of the larger stores are not favored, she believes that they are both wanted and needed in the community. She pointed out that the Guide Meridian / Cordata Neighborhood is a commercial engine, not an urban village and briefly discussed the difference. She stated that since Whatcom Transportation Authority serves this commercial area, people from all over the county have accesses to it. She urged the Commission to approve the proposal and stated that she would be in favor of more restrictions if appropriate. She emphasized that the alternative would be additional empty spaces from big-box store relocating.

Derek Long stated that Sustainable Connections recommends not removing or modifying the ordinance. He suggested that if proposed modifications must be made, then they should be more stringent; such as strict Green Building Standards not just the Green Factor, and the concept of regional tax sharing. He commented that, in his opinion, the city should be making more of an investment in local businesses.

Jim Bishop wanted to know how Wal-Mart would be a threat if they were allowed to expand.

Derek Long replied that they may not be a threat, but the gains that city has made in green power, supporting local farmers, and building green buildings have all been done with locally owned businesses, which have the resources to invest in the sustainable practices that are so important to the community.

Edie Norton wanted to know what he thought of an economic analysis being done to measure the impact of a big-box expansion to local business.

Derek Long supports that idea. He referenced other communities that require an economic impact study be completed prior to expansion. He encouraged everyone to consider how money re-circulates in the community and how often tax revenue is thereby affected.

Aileen Satushek stated that, in her opinion, the expansion of big box stores tends to create poverty not prosperity; therefore, she is not in favor of the proposed amendment. She commented that large retail stores pay poverty level wages, do not offer adequate health benefits, and cause smaller business to go out of business. She pointed out that smaller businesses are more firmly committed to the community because the profits stay in the community. She requested that, if big box stores were allowed to expand, requiring them to provide living wages and health care benefits, union neutrality, and construction of buildings that can be either be re-used or demolished should be considered.

David MacLeod pointed out that although the City’s revenue should be a concern; the decline in sales tax revenue did not happen because larger stores are preferred over local businesses. He stated that “we should not be trying to solve today's problems with yesterday’s solutions”. He provided some information relating to the price of oil and how that is effecting the economy. He concluded with a quote by David Auer from a 2006 Planning Commission Meeting.

Adrienne Lederer stated that those neighbors that cannot afford the prices of some local businesses should be considered too. She pointed out that the only two big box stores that she is aware of wanting to expand are Costco and Wal-Mart. She commented that the general economy should be considered; especially those that cannot afford to spend a dollar more than necessary on items essential for their families. She stated that she is in favor of the expansion, and encouraged the requirement of the Green Factor restrictions.

Ken Mann stated that the local, small businesses should be the ones that are supported during these hard economic times. He pointed out that the money given to the large retail stores do not get reintegrated back into the community. He discussed the benefits of the Regional Sharing Tax, which will prevent pitting one jurisdiction against another. He suggested some things that should be included in the expansion proposal before it is passed by City Council.

Scott Miles stated that, in his opinion, a case has not yet been made that indicates why the policy needs to be changed. He commented that none of the big box stores have left to date, and expressed concern that the language in the proposed amendments may scare them away anyway. He suggested that the City should not be dependent on the 16% of the tax base these big box stores contribute to the revenue. He pointed out that some of the big box stores are not interested in "big" any longer, and so he questioned why new larger stores should be allowed.

Sharon Robinson wanted to know if the Green Factor requirements are not stringent enough.

Scott Miles replied that, in his opinion, it financially does not make sense. He pointed out that it will not necessarily have an effect on whether the large stores stay or go.

Bill Henshaw stated that he is in favor of the proposed amendment. He stated that the comprehensive plan indicates that Bellingham is to be the Regional Retail Center of the county. He pointed out that some of the smaller local businesses utilize Costco and other big box stores for supplies and merchandise. He stated that it is important to have the mix of large retail stores and smaller local businesses in the community. He strongly urged the Planning Commission to support the proposed ordinance.

John Carter, Finance Director spoke to the research he has done. He stated that he has spoken to 7 of the 9 big box retailer’s real-estate provisions; as well as, Stacy with the Institute for Self-Reliance. He stated that during his research 35 big box ordinances were studied. He commented that the current big box ordinance, in relation to others around the United States, is relatively broad by restricting size only. He stated that of the 16,000 sales tax filers we have in this community, 20% of them change over every year. He clarified that the stores that have vacated their buildings have all been below 60,000 square feet, and those that have moved to other jurisdictions have been around 10,000 - 30,000 square feet range. He discussed the real-estate strategies of Home Depot, Lowes, Costco, and Target. He contrasted the reality of the sales tax revenue contribution from the big box stores and the locally owned businesses. He also pointed out that other jurisdictions such as, WTA, Washington State, Bellingham School District, and others, receive tax revenue from the large retail stores.

Jim Bishop wanted clarification on the fact that big box stores receive tax breaks.

John Carter stated that they do not receive any city tax breaks.

Sharon Robinson wanted to know if he had any conversations with Costco or Wal-Mart.

John Carter replied that these two are the most likely to have expansion plans as their real-estate strategies are different from the size currently developed in the community.

PUBLIC HEARING CLOSED

David Webster reiterated the intention of the administration is to make an incremental improvement. He stated that dialog with Sustainable Connections will continue in regards to the suggestions they brought forth.

Marilyn Vogel responded to some conditions that were mentioned. She stated that other ideas mentioned in the testimony could be researched if the Planning Commission would like to take more time.

Discussion

Jim Bishop stated that although he is not entirely in favor of the expansion, he recognizes the importance of the need large retail stores meet for some members of the community. He expressed his concern about the size-cap forcing the stores to relocate and the large building they leave behind. He suggested that the Green Factor be more specific in what they should be planting.

Sharon Robinson referenced the different economic changes that have taken place over the past few years and stated that the environmental concerns need to be taken seriously. She expressed her concern about what the proposed ordinance could really mean for our community because, according to her understanding, any store of any size can be built in the designated areas. She commented that she would be in favor of allowing existing big box stores the opportunity to expand, but she is not in favor of new stores being developed. She recommended that the ordinance be changed to reflect a .4 Green Factor instead of the .3, and any new store should be held to a LEED Silver. She also suggested that, in an effort to relieve some of the traffic impacts, transportation incentives for their employees should also be required.

Edie Norton agreed with Sharon and stated that modifications to the ordinance would be beneficial. She expressed her concern that the community is moving toward more people friendly developments, which the big box stores do not fit into. She commented that, over the past year, the population did not grow as much as projected and she believes that it is not likely to increase in the near future. She suggested that the process slow down so that an analysis of the impact on the community and the economy can be considered. She encouraged the continued support of our own business community.

Danne Neill also agreed with Sharon. She stated that currently, there are 8 areas that have existing big box stores, and expressed concern over the fact that the proposed ordinance will allow an additional 11 areas to house large retail stores. She emphasized that she is favor of allowing the existing big box stores to expand in their current locations, but is not in favor of adding new areas. She commented that Costco is an asset to our community, and we should work to keep them here. She also recommended considering LEED certification for those stores that we currently have; as well as additional requirements as it relates to the Green Factor.

Tom Barrett commented that in previous meetings, representatives from the big box stores have testified that a large percentage of their business is Bellingham and Whatcom County’s own small, locally-owned businesses. He stated that the large retail stores are critical to the success of the smaller businesses. He pointed out that the large retail stores also do a lot for the community. He expressed concern about the business climate in Bellingham. He pointed out that this city has the strictest storm water regulations and permitting process in the county; as well as, significant impact fees, and various tax levies that cause us to be less competitive. He stated that the B&O tax and the size-cap are just two more restrictions that Bellingham imposes and other jurisdictions do not. He stated that he supports the amendment. He cited some portions of the Bellingham Comprehensive Plan that support his position. He pointed out that this is really an economic development proposal and by adopting the ordinance as staff proposed, Bellingham will become more competitive and meet the goal of becoming a Regional Retail Center. He stated that, in his opinion, allowing the expansion of the large retail stores could be good for the community.

Jim Bishop suggested that since some of the larger stores have expressed an interest in being a better member of the community, we should connect with them to consider ways they can contribute. He pointed out that a big box store would do more environmental damage by relocating and building a new store, than they would do by expanding in their current footprint.

Sharon Robinson suggested that the Planning Commission provide input on what they would like to see in the event a new store was built.

Marilyn Vogel reviewed the choices of action the Planning Commission can take, including amending the current proposal. She pointed out if they chose to go that route, additional meetings should be held.

Sharon Robinson wanted to know if the Commission can add conditions to the ordinance without needing another public hearing.

Jim Bishop reiterated his position on the importance of additional landscaping in front of the large retail stores, that way if they are abandoned it is not so dismal.

Danne Neill referenced a comment by Commissioner Barrett, and stated that she heard the Guide Meridian / Cordata Neighborhood Association ask that Costco and Wal-Mart be allowed to expand, which is different from what this ordinance is stating.

Tom Barrett referenced the letter that was submitted by the Association.

Sharon Robinson pointed out that the expansion of the large retail stores is what they are supporting, according to the letter.

Danne Neill stated that in her opinion, that is different from supporting the entire ordinance as written.

Sharon Robinson referenced Attachment B, Big Box Retail Exception Area, and noted that area 19 and 20 is not along the Guide Meridian, so in reality we are talking about two different areas of the city and not just one.

Marilyn Vogel replied that Area 19 currently contains the Fred Meyer store and there is not a lot of development in Area 20. She stated that Area 20 is connected to the Fred Meyer parcel and it allows retail at this time; therefore, it was one of the areas that were chosen as exception areas.

Edie Norton suggested that this plan be reconciled to the other visions of Bellingham. She stated that it is not adequate as written and would like to see additional work done on it.

Marilyn Vogel explained the proposed expansion area and pointed out that it would be only these areas that would allow the size-cap to be removed.

The Commissioners requested that staff consider:
1. The additional areas included in the Exception Area – are they all appropriate additions.
2. The implications of an increased Green Factor – specifically .4 instead of .3.
3. A higher standard by requiring LEED Silver certification for new development.
4. Requiring that applicants provide a plan for possible re-use if vacated.
5. The implications of de-construction bond.
6. Providing employee transportation subsidies – alternative transportation opportunities.
7. Requiring a landscape design that improves the face of the building.

The Commissioners would like to encourage City Council to consider the Regional Tax Sharing strategy.

MOTION: SHARON ROBINSON MOVED TO ADOPT THE FINDINGS OF FACT, CONCLUSIONS, AND RECOMMENDATIONS CONTAINED IN THE JUNE 25, 2009 STAFF REPORT AS WRITTEN AND FORWARD A RECOMMENDATION OF APPROVAL TO CITY COUNCIL. THE COMMISSION ALSO REQUESTS THAT THE COUCIL REVIEW THE 7 CONSIDERATIONS OUTLINED ABOVE AND SEEK STAFF INPUT. SECONDED. VOTE: 3-2-0 (NORTON & NEILL OPPOSED)


GENERAL BUSINESS

Planning Director’s Report – Tim Stewart
Nothing to Report

Staff Discussion
None

Commissioner Discussion
None

ADJOURNED: 9:50 p.m.

NEXT MEETING: July 9, 2009 in City Council Chambers – worksession regarding the Samish Way Urban Village and the Urban Village Design Standards.


Minutes prepared by:

_____________________________
Heather Aven, Recording Secretary

Minutes edited by Planning Commission members and various Planning Staff.