so that he's that phone call Dean said we have started televised minutes before seven o'clock but formally start the special meeting right now all your business cell phone Richard so I'm the chairman of development creation honest commissioners to introduce themselves that's my name is Mel Morgan and the Vice Chair Mike Brennan Richard Sanford Kevin price and I'd like to introduce raiding the out this development commission legal representative are turning in dramatic I've heard you summarize maybe in the context of a letter that we just received earlier today and give us some alternative or some course of action that we might pursue sure so as the Development Commission received this morning they are in a receipt of a letter from applicant mr. foster pepper and applicants objection to jurisdiction and motion to stay so this is a special meeting under the open public meetings act this is not one of your regularly scheduled meetings and as a result the topics that can be addressed in the course of a special meeting need to stay true to the agenda that has been published and noticed for this meeting change 24 hours before the meeting but because it's a special meeting you can't actually eat from this agenda it would allow you to if you so choose to have whole discussion on issues that aren't on the agenda that you would not be able to take final action on that there is an exception to be open public meetings act that concerns portions of meetings of a quasi-judicial body which relates to a quasi-judicial matter between named parties as distinguished from a matter having general effect on the public or another class or group of people but unless all of the parties stipulate that this indeed is a outside of the open public meetings act because of that context my recommendation to you would be to to presume that this is a special meeting of the open public meetings active we're not able to take final action on something agenda so if you proceed with assuming this is subject to feel fun public meetings act you have some choices short of taking final action you can you can't make a final decision but you can you can deliberate and hear information or if you can hold discussion on this motion if you so choose I would recommend that you allow the parties procedurally to address how they might address this in the in the proceeding this evening and you probably should do that a thing at the outside or you can decide to continue the discussion to a feature proceeding particularly because I understand this public hearing is not anticipated to conclude this evening and you can you can hold the public hearing and decide not to discuss this issue or you can also decide that you're gonna put off the decision and you're also going to put up the public hearing so you actually have a lot of choices but you just can't take an action on that so now this letter item unless we're outside the context that the open public means out so lots of lots of choices but I guess with a threshold whether or not you can take actions beginning that's the first point order they we need to decide and then from there you can decide to what extent you want to hear deliberations on that tonight so how do we decide our right to take care of you you have the option to decide as a commission that this is a special meeting you also have this decision you could you could ask all parties to stipulate in writing I would recommend that this is outside the context I've been up for public meeting per student RCW forty two point thirty point one four zero sucker - so that wouldn't it mitigate your risk of being found subsequently to be um in violation of local public miss tabulate so that we could in terms of the action before we know just to take afternoon on decision to make a decision on this short of mitigating your risk in terms of taking taking action in violation of yoga public meetings act i would i would recommend that to you that out all the praise would would need to agree that this is not subject to any open public meetings at this this issue of the meeting because it hasn't been noticed on your agenda but short of that i would i which at this meeting in general there's overall meeting since it's a special meeting is that this topic not being on the agenda oh right as well unless our ability to take action on it's not on the agenda the only way that you can take action on this tonight is by making a termination that it's not that we are we are outside the context that the open public meetings at because there's a PTAs are because you are a quasi-judicial in that matter and it's relating to a to me you are a quasi-judicial body and this is related to a quasi-judicial matter so just trying to get more clarity on exactly the step two options so if we didn't get the stipulation that we were operating outside the from the parties can we hear the discussion presentation from the parties on responding to the letter president present to the letter responding to the letter but not act on time Frank okay the other is have the stipulation take the testimony and then make a decision if there's agreement to operate outside the the Kratt framework ran with the stench right and then the other option is let's just go home we'll deal with it at a regular meeting when we put it on the agenda right okay yeah all right or you can say we're gonna put this issue on the side and proceed with the public hearing scheduled but take no action and no deliberation on this we will continue this issue to a later date when it can be noticed or as part of their regular meeting it's not your recommendation was to continue with agenda my recommendation is but for a stipulation is that to deviate from the agenda and take final action on this motion would be outside the bounds of the philosophy exact that recommendation would be to certainly not take action on this as to whether or not you decide to take testimony from your argument from either side so deliberate and ask questions that is completely within your purview as to whether or not you want to address that this evening before the public hearing or address it at a later date and allow the public right so what we need to get in writing and permission to discuss the letter and have presentations of the letter to help us understand better both sides of an issue here's what I would recommend at this point I think that you might be able to ask the parties to speak to this they haven't they haven't spoken to this issue at all this is sort of my out the gate framework for you all but if you want to invite each side to make comments on that at the start of meetings that we can you get that you can figure out whether or not how you're going to proceed with your each other even seeing that hearing hearing the discussion from both parties on validity of the claims or their positions would really help us understand whether this letter a proposal is a question firestation not necessarily if you do not plan to take action we won't take it's here some discussion for both parties on the claims made in the letter the proposal the constant guess isn't the most effective that makes sense and if they're prepared to kill it [Music] we'd like to hear from you if you're willing to speak to it absolutely that's why we're here so if I may I'll just introduce the side of the room and next to me is Jackie air a my colleague next to her is Tia high and is representative of what I would call shelter because it's easier to say than IH IFC and Gary Young who's a principal in shelter is idea we have brought this motion for both technical legal reasons and temporary practical reasons I think the code is clear that only the development services director to decide the best conditions whether someone in this case is vested to the regulations and the development agreement that governed the Highlands for more than 20 years or whether the applicant shelter new subject to the new regulations of the council adopted earlier this year the code clearly says that the development director and consultation with the city attorney makes that determination mr. nevan's told us in a letter a tape called of d1 fest we tried to appeal that the City opposed it so we weren't able to challenge that decision at that point in time but in the staff report he makes the vesting determination he uses that word determination he says were not vested and he asks you all to deny the applications because they don't conform to the replacement regulations there's no dispute that the applications do not comply with the replacement regulations they were prepared and submitted before the newer replacement regulations were adopted and we believe firmly and completely that we are vested to the development regulations so by bringing this issue to you in the staff report and asking you to make a decision the only issue in dispute whether vested or not as an issue over which you did not have jurisdiction given the clarity in the code that the development director makes that decision the law is clear there are many cases you could have cited we cited a couple of letters that say a body that lacks jurisdiction can't do anything except decide that it doesn't have jurisdiction so what happens if we go ahead and hold this hearing well first of all it's going to be a lengthy hearing take up many my many evenings because it's not just simply an issue of what the law says we also have an extensive factual record we need to make because we have evidence testimony many exhibits witness testimony that shows the determination the department made in this case is inconsistent with fire representations that is inconsistent with how the department is treating other applicants so we have to be able to make that factual record testimony and many exhibits as if you all you're not set up for that kind of adversarial plays a judicial decision as far as I've been able to determine you don't have rules that would guide you in this situation as far as I know you know you just you don't operate in that way because it's not part of what stage you're supposed to do which is to make decisions about design and so forth so you're not set up to do it in terms of your rules in terms of your experience I'm assuming in terms of your background and you don't have jurisdiction so what happens let's say we spend the next two months and special meetings in front of you presenting all of this evidence presenting all of these exhibits what are you going to do with that you can't make a decision because you don't have jurisdiction so at the end of that if you can't make a decision how do we how do we move on to the next level there's nothing for either side to appeal even if the Hearing Examiner but the court because you can't make a decision it's it's a complete waste of your time our energy our resources to conduct a hearing on this issue in front of a body that does at jurisdiction and I think the law is absolutely clear that you don't because you don't get to second guessing over all the decisions that the Development Director made so for both the technical legal reason if you don't have jurisdiction and for the practical reality of presenting all this evidence when you can't do anything with it we respectfully and sincerely asks you to decide that because you don't have jurisdiction you shouldn't take action of any sort up or down one way or another until the vesting issue is resolved by a body that does have jurisdiction that's what we're asking just don't waste everyone's time and energy sit tight on this issue until we can get it resolved and then and then something will come back in front of me in terms of both sides presenting and then we have chance asking questions yes sir mr. chairman Zach Lowe on behalf of the supply department of development services I'm with the City Attorney's Office with me as my lab partner Jeff Dunbar to my right and development services director Keith Niven to my left manager Lucie Sloman is loved thank you the city just received as the Commission did IH IFC's objection letter and motion for a stay this morning and in light of the extremely compressed timeframe we haven't obviously had an opportunity to prepare a formal written response however there are a few points that I would like to make before the Commission considers the applicants request first what the applicant is requesting here is extraordinary in staff view this request for a stay as well as the underlying attempt to appeal the city's staff report has no basis in the city's procedural regulations under the city's code the Development Commission has the exclusive jurisdiction to review and to issue final decisions on site development permits for projects that are located within the Isola islands and that meet the project size and location thresholds specified I am see 1819 B 270 it is equally clear from the same code provision that the city's level 3 procedural process inclusive of a pre-decisional public hearing before the development commission is required in this context which IMC is attempting to do is to file what's known as an interlocutory appeal of the city staff report rather than waiting for the Commission to actually issue its final decision in the manner contemplated by the city's code the staff report is not and does not purport to be in any manner an independently appealable final decision in its own right while the city's code does empower the development services director to make determinations regarding the vested status of land use applications this determination is way to facilitate the city's ultimate review of each proposal by clarifying which body of regulations will be used to evaluate it nothing in the code remotely suggests that this procedural determination is appealable by itself if it party ultimately feels that the city applied the wrong body of regulations to its project application its recourse is to wait until a final decision has been made on the application itself and then to appeal it in the ordinary course that's the first point the second point is that this precise issue has already been considered and formally addressed by the city's Hearing Examiner and in that regard I'd like to respectfully direct the Commission's attention to the development services directors April 4th 2018 letter to the applicants Council this is an exhibit 10 to your staff report this letter explained the city's position regarding the vested status of IH IFC's pending project applications and just like IH IFC is attempting to do now with respect to the staff report for tonight's hearing ih IFC previously attempted to appeal the city's April 4th letter to the city's Hearing Examiner the examiner ultimately granted the city's motion to dismiss that appeal concluding correctly that the letter was not a final decision that could be independently appealed ih IFC is now attempting to relitigate that precise point and if it please the Commission I would like to distribute copies of the hearing examiner's decision in IH IFC's previous administrative appeal the decision was issued June 28 2018 and it's under number 88 2018 - to cite a PN two seven two four zero six nine two zero eight and the relevant analysis and conclusion is on pages 5 & 6 of the decision finally in the end the city recognizes that it can't prevent the applicant from filing an appeal of the staff report to the Hearing Examiner just like it couldn't physically prevent the applicant from filing an appeal of the city's previous April 4th letter instead city can only wait and like it did before file a motion to dismiss the appeal if the Commission wishes to take this issue under advisement or ultimately decides to grant IHI fc's motion for a stay of this proceeding while it's Hearing Examiner appeal goes forward then that is the Commission's prerogative but I would like to be very clear for the record that staff is fully prepared tonight to go forward with this hearing as scheduled and if these proceedings are paused and delayed while IH IFC pursues what the city strongly believes is a baseless administrative appeal of the staff report I would like to the record to reflect that the resulting delay is due to IH IFC's own actions and not those of the city thank you I would like an opportunity to respond if I may so mr. Ellis is correct that we tried let her and mr. LL argue but it a decision had not been made and therefore there was nothing true and he succeeded with that right now what he is saying is well staff you know where the early April to mid September what has happened during that time nothing the applicant has been sitting here unable to do anything with his property waiting for this staff report the staff report does contain of nesting determinations it says it does so now the city's position is and I'm sure mister well will correct me if I'm wrong but this city's position tonight is you go ahead and conduct the meaningless hearing that I just described and take all this evidence and all of this testimony and you can't make a decision on the vesting determination apparently it either hasn't been made or you don't have I didn't hear any dispute that you don't have jurisdiction over so again the city is asking for months of delay and meaningless expense of resources in your time and energy over an issue you have no jurisdiction over and what are you going to do at the end you're going to deny the the applications because they don't comply with the replacement regulations that's not in dispute we concede that tonight so this hearing is entirely meaningless the city can get this resolved at any point and it could have at any point since April if the city is going to say that the staff report is not a final determination on this issue it can make an appealable decision it can make a level zero or level one decision it can issue a code interpretation and we can get the vesting issue resolved and cut in front of a body with jurisdiction the city is refusing to do that and it is said creating this meaningless wasteful damaging process that is the choice in front of you or you're going to go ahead and endure a couple of months where their testimony on an issue that you can make the staff is in control of this if they want to decide that no you have to do that apparently they can do it and we may not succeed in front of the hearings amber we may have to wait but if we have to wait it will be at your expense as well as ours because we will have done this meaningless hearing that you can't even make findings and decisions on because you don't have jurisdiction I fully understand counsels frustration about the length of time that any quasi judicial proceeding it takes it's inherently a time-consuming process because it's supposed to be conducted in a careful thorough manner with due regard to the parties respective rights that's part and parcel of the quasi judicial land use decision on process but at the end of the day what we're all left with both parties and the Commission is what the city's procedural regulations is codified in the IMC prescribed for proceedings like this and the features that the IMC imc contains could not be clearer a site development permit within the Asuka Highlands meeting the structural and locational criteria of IH IFC's proposals requires a level three review by the Development Commission you are the only body in the city capable of making a final decision on that proposal and while the staff through the director has indicated what body of regulations should guide their analysis what body of regulations you should use to evaluate the proposal at the end of the day mr. Niven if the director doesn't have jurisdiction to issue a final decision on the underlying permit so this process as meaningless as mr. Schneider contends that it might be is ultimately one that the code requires you to take and that's why we're here today I don't have any particular interest in delaying this any more than anyone else does and I certainly empathize with the the desire people to have an expeditious ending to this process but at the end of the day we need to follow the procedure that the code indicates and that's what staff has attempted to do here and I could not more profoundly disagree and I know you need to put an end to this back and forth at some point but I think that it's fundamentally profoundly wrong and I've been be happy to address it if you if you will give me the opportunity so to say that you have to go through an entire quasi judicial process to reject an application because it's not consistent with the code is its conditions there is no jurisdiction in the state that has that practice and there is nothing in this code that requires it if someone comes in and submits an application for a multi-family building in a single-family zone they don't put you through an entire quasi judicial process to reject your application if something doesn't comply with the regulations it's not even accepted for processing so if the department has made a decision that with that we are subject to the replacement regulations and the application clearly doesn't comply with those regulations it can simply say no and as I pointed out the department can say no in multiple ways a level zero a level one a code interpretation decision it can do that it's choosing not to do that nothing in the code compels it so there's absolutely no reason except the exercise of discretion on the part of the department that has put us in this situation there is one person a lost truck is there currently an issue inside the Hearing Examiner regarding the decision of the director so the letter of April 4th was you present you provided hearing examiner's decisions on that I thought I've heard you say that that there's another appeal in front of Hearing Examiner related to this matters there is not and if I said that I apologize I missed you in two characterize that the appeal decision from the Hearing Examiner that was issued in June of this year was a separate appeal an appeal filed by IH IFC I believe in April of 2018 ultimately resolved in the city's favor through a motion for dismissal it was granted June of 2018 that case was not further appealed to the Superior Court and is essentially resolved at this point I only provided copies of it for context and to demonstrate hopefully to the commissioners that this is the precisely the same issue regarding jurisdiction regarding the intent and effect of the directors construction of the the vesting framework that applies in this context so you could understand that what IH IFC is attempting to do tonight through its motion for stay and its attempt to appeal the staff report is almost identical to their previous attempt their unsuccessful attempt to appeal mr. dibbens April 4th letter and the city's position that again it's not right for appeal because a decision has not been made that is correct and if the Commission pleases the city's first witness that it intends to call when when and if the hearing actually proceeds is mr. Niven and he will testify to his official interpretation of the various I am I am see provisions that bear on this procedural issue and if the Commission would prefer I would be happy to call mr. Nibin right now and lead him through a series of questions so you you have the benefit of his official interpretation of those code sessions I take one step backwards so the the applicants attorney maintains it's not our jurisdiction city says it is who decides if it is or isn't how do we move forward on any action is that our decision to decide whether it's in our jurisdiction a commissioner I appreciate the question I think that might be more appropriately directed to your legal counsel and I'm going to advocate here on behalf of staff I can't advise you on that point can I ask a question I guess if you don't mind you're saying that the directors decision on vesting is their decision and we have no say over that's correct yes in the letter we quote the code provision that says only the directors make that decision so you're saying that we have no right to question their decision yes because the code also does not give you appellate jurisdiction over the decisions made by the director and would you agree with that too I concur that the the code delegates the authority to the director to determine which body of regulations particularly should be evaluated against a valid caveat that heavily by noting that that must inherently occur in the context of the broader project review procedure which in this case is a level three process requiring a development Commission final decision that is then appealable to the hearings okay so if I guess the question is if the director has the right to make the decision on best deemed and we can't question that if the director comes to us and says this is the status of vesting we can't question that so if we can't question that what would stop us from moving forward on a project that they put in front of us with a level three review because we have to pursue that they have the right to make that decision and we can't question it right again if I would I will answer your question but I would suggest that because you can't question it why are we here but the problem that is presented to us procedurally is that an appeal from you to the Hearing Examiner is a closed record appeal we can't present the digital evidence as part of the Hearing Examiner all the evidence has to be taken here so they are putting us in the impossible situation of trying to make a record on the vesting issue they've got no jurisdiction over the disaster record that the voters that does have jurisdiction over the directors decisions but if we make the record in front of you and you don't have jurisdiction as I say the case law is clear you can't even make findings and conclusions you can't make a decision so how how how is that leading to a resolution of this issue I guess from our perspective we wouldn't be making a decision on jurisdiction undusted I'm sorry because we don't have that right - we would just be making a decision on the proposal right which is we wouldn't care all the evidence you want to put up for our final decision will only be on the proposal itself the three applications you've decided and proceed in that manner it means that you will be making a final decision of something that isn't in dispute we did begin we do not disagree that we I mean we agree that we did not comply with the replacement regulations that's not in dispute you can decide that issues is easy but the problem is we have to make the record so you're going to have to sit here to take evidence make evidentiary rulings decide when mr. Lowell and I disagree with one another you know who's right you're going to have to take all that evidence on an issue that you can't make any decision captain's question you should want me to address my question um well I will tell you that at least the outset that I similarly had been able to review this for less than 12 hours so to the best answer at the moment that I can give you is they you know there are provisions of the code multiple provisions of the code that define what the scope and authority that the Development Commission has here and that like basically from for the purposes of this evening is my best response to you most all of the provisions speak to the process and the standards for making a decision on a level three site development permit the ones that I'll just rattle off the provisions for the benefit of the Commission that I I know summarize them for the purposes of quickly illuminating you section 18 o 3o 4'o subpart B provides that you shall review and make the decision on all elements including design and technical of a series of land-use actions including site development permits the the code provision cited by the applicant eighteen oh three point oh eight Oh speaks to the objective of the Development Commission which is to determine compliance with the design criteria checklist 18 point oh three point one hundred okay me vibrate my hundred anything's up so pretty adopt rules and regulations as necessary for the conduct of business eighteen point oh four point four three zero process and decision sub per be can make decisions to approve condition to not your this is this is about the process of site development permit review the decision to approve conditioner deny she'll be based on staff report applica Legrand applicable criteria public comment and discussion of the issues and then the approval criteria is listed in next subsection point 4.0 level three permits decided in accordance with 1804 using approval criteria and eighteen point oh seven including an applicable development regulations assign criteria checklist and other applicable approval criteria so in terms of the code that's the scope Authority you've been given as effectively to implement consistent with the scope that's been identified glutamine coke I think I don't think anyone is disagreement here that that jurisdiction and that's out like there speaks to vesting at all no I did not all he talks about reviewing the permit in compliance with the standards at South fork's that in the Colo question so if we are reviewing the applications under the jurisdiction as defined in the C's code for the development condition and it doesn't include the question of vesting but it would include designs to meeting design standards etc of standards that have been defined as applicable by those directors the placement regulations then would we limit the amount of could we limit the amount of testimony and discussion to just that and not even include conversation testimony etc about that question of nested you could so to my stance for this the one and let me see this might need clarification are you asking whether or not you can preclude any evidence on that question of vesting or are you asking whether or not you can preclude your decision as addressing that it's just yeah the discussion of testing goes we do things they have jurisdiction over vacancy correct that's correct so we would be hearing evidence considering the application materials for the permit the three site development permits and reforming the Commission thinking determination on compliance or not standard from I can make a make our decision based on that the technical question about vesting if we conclude our jurisdiction when the document stand as it is part of the record but our determination we did consider that yeah so so if I'm in to repeat back to make sure I'm clear and answering a question you could allow they each party to put information on to the record and I would advise you to to not limit their ability to do that but at the end of the day you decide to make a decision that does not address the question at that stage I do it guys absolutely within your right because that is consistent with decision on the type of element permanent standards are set forth in the code that you can effectively let that evidence it on the record and not make a district determination or the other on that State Council so I'm just trying to figure out how to navigate through this what our options are so because we have a special meeting tonight agenda did not include discussion deliberation decision-making on the question and we're discussing has a question of asking that the from the dress by the letter we received today if we were tonight to say take discussion on that additional discussion on that hear from the director of there etc and then our next scheduled meeting whenever that turns out to be include as part of the agenda the potential for a an executive session with the with the mission of our council and include as part of the agenda that topic I'm just trying to figure out how do we get clear for the Commission what our legal option and performance risks are for the path that we choose to follow here it's hard to do that on the fly um I would say just to take this one step at a time it sounds like you're the first decision to make is whether or not you're going to to take and actually you've taken the deliberation and I think you trying to make sure that you guys are clear with what you our next step is tonight each other procedural essentially and then thereafter in terms of putting us on the agenda for decision at a future meeting you have the ability to do that the question of expected session I would recommend that we do that and I deal with that issue once you you know potentially the end of the proceeding tonight or in the future public in that next session we can make that determination about whether or not that the executive session it's a question of the city sent general if an applicant came in and said want to do this project and city spreading a brain to the Development Commission and the applicant said hold on we want to hold off on that don't take it to the Development Commission yet but the city typically say okay well we'll delay that if the applicants request so the city code talks about inactive permits and there's provisions in it for a certain period of time where if something sits on the books we can call it we can basically call it inactive and then not a permit so you know there there is the opportunity to agree to a delay that is not the case here can I ask a question about the staff report I'm not sure do they present three alternatives that we may consider today and and you know these all seem to present an alternative that we haven't discussed one is to remand you know this is specifically for the retail and it back to tab to review as is this recommendations and we approve an alternate to approve as is and 3-plays the application on hold can we speak to that a little bit to the alternative yeah so the staff report was written with alternatives based on us knowing that there was going to be some differences of opinion here at this meeting this evening you know ultimately the Commission you know I think the city code is clear whose decision vesting is the responsibility of if the Commission however wanted to heard the arguments from the applicant and decided the city erred the commission could remand this back to the city to review under the provisions of the now terminated development agreement we would then have the opportunity then to appeal that decision to the Hearing Examiner so what we try to do is create I think a balanced playing field for you all so that you could think about this objectively and ultimately if if you think we made an error in our decision great we may have made an error I'm not saying we did but that's something that we're open to hearing that conversation if ultimately that is a decision that the Commission wanted to make we would take that under consideration and then we would have choices on what we did with that if that's ultimately the outcomes that the Commission made so so we wanted to present that as an alternative it's not our recommended alternative obviously but it is an alternative and so I think what we were trying to do is provide you with all the alternatives so that you could think about this reasonably at the time we wrote the staff reports we did not at that point have counsel lined up for you and I think what we wanted to make sure is that you guys have all the tools you needed to make a good decision through this process so that was the intent and why the staff report was written the way it was thank you if I could mr. ed sheeran I think the critical point from staffs perspective is that there needs to be a record made on these issues I think we have a fundamental difference of agreement with the applicant regarding the extent to which the director can make a vesting determination that is independently appealable that is divorced from the larger project review process I guess we'll have to agree to disagree on that point for purposes of tonight's proceeding but fundamentally what needs to occur procedurally is that a record must be created if this matter and presumably will be is ultimately appealed upward through the Hearing Examiner and then potentially the court after that there must be a record made that establishes the factual basis for why particular determinations were made and and how the Commission reached its decision this is really the opportunity to do that so even though the director has indicated what his position on vesting is I don't think that that's the end of the story what needs to occur throughout this proceeding is the the evidentiary gathering process the elicitation of testimony the presentation of written documents for your review because all of that will form the bundle of materials that will form the closed record through which the Hearing Examiner and then the Superior Court will sit in judgment on that thank you may I speak apologize I know things are coming at you from many directions here but I feel obliged to point out that mr. Newton said is not only inconsistent was like I said about your authority I believe it's inconsistent with mr. Lowell said you do not have the authority to second-guess the domestic issue the code is clear he has that authority in his decision is not appealable to you and it just muddies the waters hopelessly and makes it much more difficult to suggest you figure of authority that I think mr. Lowell and I both agree that you don't have so you know that is a fundamental problem with this is all the confusion that is being generated by this process yes a record has to be made but the department has a very simple way of making the record mr. Niven can make his vesting determination if he says he hasn't done it yet and I've heard I've heard to completing things from that side of the room either it has been made or it hasn't been made but there is a vesting determination in the staff report if their position is that's not appealable to you all and I think it has to be because that's what the code says they can make it appealable to the Hearing Examiner by simply calling it the levels there are a level one decision or by calling it a co determination that sends it to the Hearing Examiner and not to you and so this idea has just popped into my head as I listen to this but I think one of the alternatives you all want to consider is making a recommendation to the Hearing Examiner that he make a decision that is appealable to hearing his MO this issue so the record is made in front of a body that can actually decide the issue you can do that as a recommendation without actually exercising jurisdiction which you don't have but that would get us out of this hopeless situation okay if I hear something tonight so what's confusing to me as you've already conceded that regulations language so it really it really seems to teach or to move ahead listening to the our news when we hear don't so how do you plead to that it doesn't this ting really becomes a significant I'm still confused but it doesn't sound like we have jurisdiction so I just asked for clarification has the Hearing Examiner already made a decision on the applicability of the vesting is that what this does letter I haven't had time to read this entire letter no that's a fair question I'm sure to answer mr. commissioners no the Hearing Examiner made a jurisdictional determination and concluded as part of the appeal decision that I handed out that the directors vesting determination as expressed in the April 4th 2018 letter was not a final appealable decision over which the Hearing Examiner himself would have appellate jurisdiction and it's tabs position that in the same manner the staff report before you tonight is likewise not an independently appealable determination over which the Hearing Examiner has review Authority the Hearing Examiner has review authority over your decision so when you make a final decision on a project permit application that decision is properly appealable to the Hearing Examiner and the record of the hearing examiner will review in conducting his or her appellate review it's based on the record that's created before you as the Commission it's a and I think you agree with mr. Schneider at least I think I empathize with his point and that it's somewhat of a procedural procedurally unique situation where you have to make a record on something for the purposes of ultimately reaching a final decision where either the code indicates that that decision is supposed to have been made as part of this review for you by the director the missing link though is that there's nothing in the code that allows mr. nevan's staff report to be independently appealed upward it's a it's a recommendation on its on its face the staff report is a recommendation to you it doesn't do any anything more than recommend to you how staff feels these project permits should ultimately be ruled upon and again in order to bring this up to the examiner and allow the examiner to review it in context we need to make an evidentiary record here in this proceeding that will form the basis for future hire review so if I may of our council then regarding the extent of that record it was it your recommendation to us that we not constrain testimony only to our usual purview of making our decision based on detail and technical constraints the the essentially what you read from the code to us is it your advice to us that we do not attempt to constrain any carrying of this simply to those matters and exclude the substantive testimony that may take place over multiple weeks that may have to do with a vesting issue should we try to constrain it or not my recommendation would you need to allow each side to put information on the record that they would like to make the decision that you make though can be based on portions of the record to the extent that you think it's within your jurisdiction to review and make a decision moving forward but to limit or to control what people put into the record I wouldn't open recommend that add that at this time just a follow-up question to instance back to justice mr. well on the the carrying exam the last page of the hearing examiner's decision on summary analysis he also also states it's the last sentence if nothing in the development agreement grants to hearing hearing examiner authority to settle disputes over interpretations of the development agreement itself the case here so even then which seems to help complicate the matter even more there's a question about the hearing examiner's Authority now to even hear an appeal of determination on vesting under the unity so I think that in art isn't it that's an excellent point and I think that if reading that statement in context what the examiner was doing was construing not only the the the vesting component of mr. nubbins April for 2018 letter but also the balance of that document and if you look at that and again I believe this exhibit ten of the staff report a significant portion of the April fourth letter didn't address issues of vesting vesting was one issue that was addressed at the front of the letter but then the letter went on to substantively address a series of I believe almost 20 alleged breaches of contract that IH IFC had notified the city of and that was that was truly the thrust of that letter and I believe that the the Hearing Examiner statement that he referring to mr. Commissioner was in reference to those aspects of the April 4th letter that really were were issues of a contract dispute and the examiner felt that he didn't have authority ton to do they had to leave that was incorrect as a line measurement since I imagine the question that brought up the idea that we would to run tell the city what we think this should be just a level zero review instead of a level three but as the question is what I don't understand what right we would have as a commission to say that a project does not at our level and remanded back to lower levels that I appreciate you asking for question because I want to follow up on this when I made that suggestion mr. lentil spoke but he didn't respond to he just kept saying we have to make a record and this is how we do it but I didn't hear any responses as to why the - couldn't make a level zero or a level one decision of our code interpretation that would be a few I'm not suggesting you have the authority to tell the director to do that but I think you certainly have the authority to make the recommendation and as a practical matter I agree this has all come up quickly even though the directors snack reports are needed last Monday they weren't distributed until the end of the day on wind speed we've had very little time to prepare for this I think it would be appropriate if you take things under advisement my practical recommendation would be to make a recommendation to the staff they explain why they're not willing to make the vesting decision as a level zero or a level one or a code interpretation and get it resolved attorney examiner why they're not willing to do that and give that explanation to you in writing before the next hearing and then we can take it up the banned me again this whole process was created out of whole cloth and August we were told that the city would issue the vesting determinations in July or August it didn't happen we were suddenly told that we're not going to do that anymore we're going to do this level three process that is a recent invention it's a deliberate discretionary decision that the city is making and they have the discretion to do it differently so why not have to explain in writing why they're not doing it differently and then you can decide at the next meeting you can go into executive session if you want to because it is quasi judicial and then you can they might have their written response and an opportunity to us to briefly respond to it then make a decision how do you want to receive um but I think that what's in front of us right now at this point is the question of what we do with the recommendation letter that came out today right so the this letter says stay the hearing until the best in issue was decided what I haven't or anything about if that was the case how else would it be decided what else would be happening if I could mr. commissioner mr. Schneider can correct me if I'm wrong but my mic interpretation of the letter that you received from the applicants counsel today it was essentially a request to stay these proceedings while the applicant attempts to appeal the staff report up to the Hearing Examiner and that's that's not so much as I understand it a determination investing in and of itself it's really an issue of whether or not the examiner is dick ssin to consider an appeal of a staff report is that is that consistent with your understanding or did I state that yeah well I don't know what do you be doing and it's well I guess what I was wondering is what would be happening to resolve the issue and what I my recent suggestion was a variation of what's in the letter because mr. L has made it clear he's going to say that we can't appeal to the Hearing Examiner fine let's assume he is correct in that again that begs the question of why the Department won't make an appeal the decision when they have the authority to do that and what I'm asking you to do is to ask them to explain in writing why they won't make it viewable decision to the hearings ever so the Hearing Examiner will they can she make a determination of Avesta doesn't exactly the decision that they will make so I can't prospectively guesstimate what the Hearing Examiner will do I haven't even seen the applicants intended appeal of the staff report my assumption is that mr. Snyder's referring to a more intermediate step which would if this proceeding were to be stayed and staff is not recommending that but if that were to happen and I hoc were to attempt to appeal the staff report to the Hearing Examiner and the city would then presumably bring a motion to dismiss that appeal for jurisdictional reasons in the same manner that had brought a motion successfully to dismiss the April 4th 2018 letter that at that point there would be some more formal resolution of the issue of whether or not at least the staff report is in fact and independently at the killable determination staff doesn't believe that it is the applicant fills otherwise I believe that's the core of it so it seems like we have an agenda it doesn't have anything on it that taught us about vesting you have to see if it proposals within [Music] it doesn't seem reasonable to maybe seem to start the process of listening to the specific permanence requests without talking about the best to put that on the agenda for the next we would be discussing the best you know my understanding is that decision can only be made in response to our decision based on our ordinary purview our ability is to decide the merits of applications on all the standards that we were never to use I don't since we can't make a decision on testing my understanding events we go through that process in order for affordable information I wish to make deficit so it makes the most ultimate leave business to go through the proposals I've listened to the areas that we have jurisdiction over that make it to make a decision on that's my understanding and yet we can't it seems or it is not advisable for us to try to limit discussions for those matters but we must make a recordable decision of some sort it seems to me before any decision can be made on testing if it's to be channeled into the question in terms of the question we're looking at right now the proposal to stay the hearing if we decide to do that you think that both parties would have to stipulate that can be done at this meeting since it wasn't advertised yeah I would recommend we treat this as a special meeting meaning that you can't make a final action on something that's off the event if this was not listed on the agenda unless both parties were essentially to to stipulate that you would not evaluating the open public meeting at he chose to take action in response to this this evening as opposed to pushing that out to a future meeting where it is you to properly know those terms parts of your regular it's a regular and you can also just you can you can ask the parties to essentially insulate you from making them serve essentially stipulate that that this is the quasi judicial proceeding and this is a quasi judicial matter they here taking up or you can also just decide that you're going to not even answer the question that just continue on with with putting the decision that's on or the motionless on the table putting that aside and making that decision in a future meeting and then so that would be step one then step two what you want to do with the rest of this meeting continue have the hearing as as as listed in the agenda or continue the hearing if you decide that you'd like to wrap up for this evening and continue the hearing to another evening so if we were going to continually hear him and put the question questions raised let me receive today for mr. Schneider on the agenda I'm not clear about what our authority to decide that would be a future meeting I mean what what's the question we're responding to at the future meeting 22 yeah I mean you you you've been asked the emotions been raised as to whether you will status hearing so you can make it so we're talking about a future just future meaning you can decide to rule on that motion you can also decide there's up there's proceedings we're in this type of a context where some bodies will go through the whole hearing and wait to decide well you wouldn't be able to wait to sight on the motion to stay that you could also sort of put this jurisdictional question to the end at the hearing and make a decision on that essentially procedural question about whether I had jurisdiction period or the end and your decision to wrap that all together so you've got some flexibility there I do actually I guess need to make a decision at some point as to whether you're going to cram the session Tuesday do something with the stay but the jurisdictional question you could decide to continue through the end of the here going through the motion of a public hearing to take all the evidence and making your decision about jurisdiction at the end of all that is part of your decision so what the chair was suggesting is that we begin the process of just taking evidence tonight or some period of time to begin the process put on the agenda the question about jurisdictional authority for deciding this at a future today and that jurisdictional authority that just the decision to stay our hearing right yeah that not at a minimum you probably ought to do otherwise your continuing with the hearing and you're not babe I know slogans don't long day so if we don't have jurisdictional authority to decide on the question of vesting what's in front of us then what happens what I'm sorry if we stay them if we the question of vesting is what's raised so you know dude for now it's just a question can we stay here right if we stay the hearing for what purpose that's what I was asking about what would be the long name are the the motion on the table is to stay to proceeding because you don't have jurisdiction to hear this to go forward with this proceeding you could you could decide to you can actually respond to this in multiple ways when you get to that point to say we're not going to stay in the proceeding but we're also not going to make a jurisdictional determination of whether or not we can make a decision here until we've gone through the public hearing which is effectively your jurisdiction to hear or to make a decision even not to hear but to make a decision on the applications that it can put for you because there's a question by vesting so that there are multiple ways to review this and that's that's something that you're entitled to continue to discuss and make a decision on at a future meeting we continue with the hearing putting this off until it's fully noticed and everything for the next meeting because by staying please become just a little bit sorry I would agree so we need to do that parliamentary life well you can say your agenda at this point which we're technically so on fun and remembering that you can't make any final actions off of this agenda you as the chair could decide and as part of that we would have to say yeah yeah however normally it's your agenda is developed by I posited um no functional yeah you put it on the record that there's a new one for us yes a there yes that you'll that you'll that you'll put this motion first day on the agenda for the next meeting yes you could you couldn't you could decide that is a group if that's what you want to do right now is this a procedural issue is it please please be complete argument I if you decide to proceed with the other items resolution and I believe you are acting outside your jurisdiction because the the only issue is invested issue nothing else's will disabuse me and they may be proceeding to take evidence in effect on the issue over which I don't believe you have jurisdiction so I again all I can do is make some suggestions to you which are free to reject but again my suggestion is that you don't proceed with the agenda items until you make a decision on this motion or in the alternative that you can consider my recommendation that you ask the department to explain in writing why they won't make an appealable decision on the best issue and takes this entire issue away from you so you don't have to wrestle with it and I also would just say you know I again recognize you've given you a lot and very little time to consider my suggestion would be wait and make any decision until the next schedule isn't this as soon as you can but not make a decision tonight because you decide to go ahead and we have to say we're proceeding under protest because we don't get you have jurisdiction and if you want additional briefing from me or from mr. ll a sport but be fully informed before you decide to go ahead [Music] go ahead listening to the discussion of each one of these building proposals you did if you want to limit the hearings so that that's all you're going to take evidence on you don't allow us to make evidence on the best inertia and you can go ahead and do that we can be done tonight because we don't dispute that we don't comply with replacement regulations that have gone hearing over and done with tonight but you need to tell us you're not going to make let us make a record well that issue otherwise we have to make the record and this is going to go on now again I can't you need to listen to your counsel not to me on that issue that again isent in you to suggest that this entire dilemma is unnecessary it can be avoided by the department exercising the discretion that has by refusing to do that they are basically continuing the problem that has been in place since last people so may I just ask the question in the view of the city then why is this appropriate as a level three review I think we know what the position is but I would like to do absolutely in the short answer mr. Commissioner with all respect that the city doesn't make that determination the code which is a policy document that has been adopted formally by the is simplicity Council has made the decision for us as much as I would prefer to probably spend my Wednesday nights elsewhere instead of going through a lengthy quasi judicial proceedings and runs the ASIC robust city code designates this proceeding these types of land use permits within the Issaquah Highlands as being a level three process that require a level three Development Commission review with the pre-decisional hearing you're the only body that has jurisdiction to do that and while again the vesting determination is supposed to be made in concert or in conjunction with your larger permit review proceeding are they for the development services director this is our one opportunity to make a record on everything I'm sorry if I keep repeating myself again you can cut bears emphasis in the staff report that's on page 7 of 307 and three a and listen Lee and clarifications of why this is level three for any code yes sir it was 24 I think a lot of in terms of precedence of what we do feather projects and thinking about if somebody came to us with a project that would qualify to the level 3 we turned around that's the body that's supposed to hold the public hearing and we said no work these infections must be pushed down to a level zero and the city should decide that I don't think we could do that because then that doesn't allow the public to happy keeping our duties as a development condition I would say that based on the good provisions that I listed there you're here as a your role in receiving a site development permit application is to decide whether or not that meets the criteria applicable to that application or not not to decide what a process or level of government is applicable to that that provision per se yeah I mean of course we haven't an interesting situation here because what's essentially being presented is that the analogous of this is supposed to be levels or a level 3 moment at different you know these standards of my verses we don't have the right to say it should be 0 not 3 that's in terms of what the authority is that you've been given under the code you know specific determining which process is applicable as opposed to what cry team the Krait really speaks to the criteria you need to decide if the applications replacing some of the criteria that are that US has specified in the code that's it up to the so you guys on the record the jurisdiction on his suppose he makes a decision I recall there was a time when we we said we didn't think it was hard to say anything we were told it was I'm still stuck with that I guess overall it sounds like we're kind of in a conundrum of having to make a decision on whether we want to go ahead with the public hearings or not without going ahead with the public hearings that decision is not going to be made that's appealable developer wants wants a decision made so that they can file an appropriate to be an appeal to the Hearing Examiner so I I feel compelled and stuck with the notion of having to sit here and listen to the public to have full public hearings in his building again that stuff entered into the record get get the information materials are counsel is saying we're not going to try to constrain what is discussed so we don't know we don't have tonight so what I think we need to do is move him on the public hearing I think we need to table the discussion on make a decision on the proposal or bursters stand the motion to stay get that on the agenda for our next special meeting can have some dialogue over that I need to good I think we need to move forward on listening to the recommendations of the three buildings those three proposals okay proceeding just proceed so you can see where we get tonight and then that little warmth in this room nobody else would like to stand up for five minutes I wouldn't mind standing up for five minutes just Claire getting my head clear a little bit so if you're all okay with well I'm going to give you a five minute break and you don't sit if you want stand up don't talk in tax our let's resume back [Music] you you you [Music] we are motion what I would like in advance is for the parties to if they are willing you know after they're willing to help us better understand what what the issue is in life decisions are taken that are being taken if they could give us a written explanation of that and give it to us a couple of days before the meeting so we'd have a chance to be able to really understand it because with I'll just be honest at getting it the day of the meeting is just really difficult I don't I didn't even look at my email until like five o'clock tonight so little behind time so yeah mr. chairman if I may since what has been presented to you as of this morning from mr. Schneider is essentially in the nature of emotion my request and proposal would be that the city have an opportunity to respond to that that's that's really what's on the table and if I H I've C doesn't object to that my request would be to have the opportunity to respond in writing in the same essential manner as the applicant has done within some reasonable opportunity for the applicant for to have a brief reply and write and to have some parameters established for that in terms of page length limits and timing of submittals so we're all clear about the ground rules yes I agree completely and my suggestion would be that we determine when the next meeting will be and that didn't work back from that and give us the deadlines in the next meeting is October 24th so the medium third is for another topic the other time so October 24 is the next week this topic this time in the 1717 didn't it's a where the 17th was not available he's so sold it be reasonable to get the written comments 517 cities the cities before this 24 SHINee for the 24th meeting yes sir mr. chairman close of business summit 17th so the packets get put together before then you wouldn't have time to respond so maybe we heard you know the 24th so so 17 gets funding the materials be forward to the commissioners outside the packet just analyst of and then made a violation is whether they're made available to the parties public all at the same time question who does that need to be by for 24th so we like to give you a week for the packet and then I'd like to give support services of data get that out so the packet would be a week before 17 the 17th what Lucy's saying is we would need to have any documents for that packet on the 16th 16th 16th so if we so what the question that I think we're answering is we would be able to provide that information to the Commission as part of the packet distribution which would happen one week prior to the next Commission meeting related to this topic which would be the 17th right so they have it by the 16th right so the question our internal mechanics are relevant to us and we're talking about talking about the response to motion and an opportunity for a brief response to the response so we've got two documents that we're trying to coordinate here and adequate time to actually produce those so given the city till the end of the week October 5th that be next week I think that's right end of next week to respond and then actually take it think that back into like the 10th so the 10th of October and then there would be until the 15th would be the response to make sure there's adequate time for processing the documents with the city to get them in the packet by the 16th don't agree to that yet cuz we're in budget I'm not like the budget so council member Commission remember what were you suggesting the city's response would be the 10th use so that would be two weeks from today and then applicants response to the city by the signal by the 15th or 16th whatever is needed for publication okay mr. Snyder's end I would request if they needed by the 16th that we be given a deadline of 16th 16th young so the 16th would need to be if we're gonna get that information out to the Commission in the morning [Music] mr. chairman yes I'm if I could also make yoga requests that the Commission and posts and reasonable page limits on these submittals just so the process does not get too out of a sermon we do have the staff level one additional procedural during the past couple of weeks we've been attempting to reach his stipulation with the applicant in their legal counsel regarding the format for tonight's procedure and jointly or independently reviewing the code it was determined that the IMC doesn't really contain particularly clear procedural strictures for a out of his time and I had prepared with in consultation with the applicant a proposed stipulation regarding the order of presentation the time and extent for producing evidence etc mr. Snyder can speak as a point but I believe that the applicant declined at the end to to ultimately execute that stipulation while their motion for the stay was pending so we haven't been able to count formal agreement and in lieu of that what I have done is prepared unilateral proposal based on the exact same substance of our original proposed stipulation regarding the procedural format and I've already provided a copy of this to mr. Schneider at the commencement of tonight's hearing and with your leave I would like to pass it out for the Commission's consideration thank you it's very basic as you can see it just provides general parameters regarding the order of presentation and the extent to which the parties can produce evidence [Music] yes one question would be the item for public testimony and typically I understand this right we closed public testimony and after that there's no more public testimony they can come but then there would be rebuttal witnesses and applicant with witnesses that would come after that someone green is that an issue of witnesses come after in the public testimony and public doesn't have a chance for me and I appreciate the question I think it's a valid point I believe that that was a point of at least conceptual agreement with the applicants legal counsel and the reason for proposing the format and the presentation order in that way was to ensure that the rights of the applicant are actually protected that the public will get its bite at the Apple I have an opportunity to comment based on the primary witnesses that have provided testimony with them at the very end of the proceeding there will be at least a brief opportunity for both the applicant and the city to comment on the comments that the public itself had had provided keeping in mind that the purpose of this proceeding is to essentially review and sit in judgment on the applicants projects of the applicant should I think in fairness get an opportunity to respond an end to the proceedings based on all the other comments that has been received during the course of the hearing respond to that the fundamental problem we have is that public testimony is not appropriate for quasi judicial proceeding it's entirely appropriate for what you normally do which is deal with design issues and that sort of thing but the issue on which you're going to be taking testimony of depending I suppose on the outcome of what you decide at the next meeting but on the issue of vested rights that is a quasi judicial proceeding you need to make a place a judicial record and public testimony is not appropriate in that God so we object to the public testimony on the vested rights issue if you are going to allow it then I agree that mr. Loans put it in the right place in the agenda but I don't think it should be part of the vested rights issue at all it's one questions I don't know that we've ever had the ability to tell somebody from the public what they can or can to say customer to limited them to a time period but so just maybe it can I ask a follow-up clarifying question as far as after the public testimony the additional evidence that will be presented will be there won't be new evidence it will be rebuttal evidence two witnesses or statements or information that has already been submitted yes that's the nature of rebuttal evidence it's supposed to respond to something that has previously been presented the question is I'm just thinking about our typical public hearings and public employees where we take public testimony they raise issues we raised as questions etc sometimes on behalf of the public after we tell the public hearings or and then we make a decision so I don't know if that this is too far astray from that and I think the question before us if it is revealing what the question was about testing its harmful procedural Elisabeth Community Impact question [Music] yes Thank You mr. chairman so staff presentation thank you again exactly all on behalf of the development services department I will be fairly brief in my opening comments because I think much of issues before you have been addressed during the preliminary discussions - yes sir presiding right - well you know to me parents of fairness disclosures which at our meetings is typically brought up by staff we want to go through that to make sure that you have that covered we know what it is but Lucy you typically at these hearings well remind us of that and you ask an important question right so he's told that now she has to find so I will skip the introduction and just to say that this please review the first set of questions and once you believe those questions I will ask for your responses inners would indicate no to all questions yes there have been any ex parte contents very challenged from applicant just like to clarify that given the nature the proceeding ex parte context would include contacts with staff regarding this issue as long as that's the question when responding to [Music] do you need to amend your answers regarding any context milestones that I wasn't what your mind said they can't have any communication with us on this and so I slipped in here have been more than quick to remind us that they can't speak to this with us [Music] stab presentation thank you sir please pass the Commission is aware of the purpose of this hearing as to review and evaluate three project permit applications that have been submitted by the applicant ih IFC for various Gildan proposals located within the usable Highlands area context of this hearing as has been discussed is somewhat unusual and that the typical land use hearing involves potentially a dispute over how particulars owning regulations are applied in which conditions of approval are appropriate but here the dispute is primarily over which set of regulations should govern the proceeding and which set of standards should be used to evaluate the regulatory compliance of the permit applications that have been submitted and there are three permit applications before you tonight to administrative site development permits or a SDPs and one site development permit or SDP these applications were submitted under the auspices of development agreement that formerly covered the ahsoka Highlands that was originally executed and recorded against the Issaquah Highlands area in 1996 refer to it throughout the proceeding as the 1996 development agreement or simply the development agreement that agreement had a build out period that ended in September of 2017 subsequently the Issaquah City Council as was always intended under the development agreement adopted an ordinance in March of 2008 in ordinance number 28 30 which enacted a series of replacement regulations to govern future development in the Issaquah Islands as replacement regulations were now codified at chapter 18 19 B of the Issaquah municipal code and the fundamental dispute between the parties in this proceeding is which body of standards which regulations should be used to evaluate the three ASDP s and s TVs that are before you and and for several reasons as explained in the staff report and we further enunciated during the public hearing testimony that is staff strong belief and position that the development agreement standards are inapplicable into these three permit applications and instead these permit applications should be reviewed under the recently enacted replacement regulations that are now codified in the Issaquah Municipal Code I think to set the table for the staff testimony that will be shortly received by the Commission elected to note for the Commission's edification that there are generally three ways by which a project permit application or over vesting can occur at the local land use level the first and most basic type of vesting occurs when a project applicant submits a fully complete subdivision application on preliminary plat application or a building permit application and both of those types of vesting are established by state statute RCW 5870 no 33 for Platts and RCW 1927 o 95 for building permits and there are different vesting rules that apply for each of those statutes but neither one of those vesting mechanisms is applicable here because what's before you tonight is not a plat and it's not a building permit is instead a series of site development permits and Washington case law could not be clearer that site development permits do not trigger vested rights there are at least two expressed decisions by the Washington appellate courts that of established binding precedent on that point and in recent investing slaw in Washington has clarified unequivocally but unless the particular type of vesting at issue is specifically codified and the Revised Code of Washington that it does not exist anymore and therefore site development permits do not vest under state law that's the first category of vesting the second category of vesting is a more nuanced approach and that occurs if there was for example in preliminary plat that was fully complete a plaid application was fully complete and submitted to the city and that plat application went into such significant detail regarding the applicants future development plans that it essentially defines precisely what the applicant wants to do in the future on that piece of property that property for which a preliminary plan has been submitted and this type of vesting is based on a relatively famous or seminal Washington Supreme Court case called noble Manor versus Pierce County and the role that came out of noble Manor versus Pierce County is that what is vested is what is shown on the plat so for example if a plat applicant goes beyond the usual approach of simply drawing a few lines on a map and indicating how a particular piece of property is going to be divided into future Lots and goes one step further than that and actually shows building footprints on that plateau application well if those building footprints indicate a particular setback between the edge of the building and a lot line what the city cannot do after that point is adopt a new setback requirement that's different than that that would that would be violated by that plat and then apply those new setback regulations against the applicant because the applicant is affected to what he or she showed on the face of his or her plat but that didn't occur here either I enjoy FC did submit a plat application to the city in August of 2017 during the build-out period of the in agreement but that plat did not show building footprints that platen gave a very general description about what the applicant intended to do on the subject property and therefore the noble manner versus Pierce County type of vesting that I've just described doesn't apply in this situation different type of vesting under Washington law is vesting through a development agreement and this is a fundamentally different type of vesting because it doesn't really rely on state law standards or case law and precedent or anything it is basically determined by what the parties themselves have contractually agreed to through their development agreement and instead of looking to some different body of case law or statute how you determine vesting under development agreement is to look at what the language of the development agreement says about that site and that I think is really the source of the primary dispute between the staff and the applicant in this case it is how the 1996 development agreements vesting provision should be construed in relation to the three ASTP and ask if the applications that are before you and the evidence will show I think it's fairly clear I don't know that they can reasonably be disputed that IH IFC's site development permit applications were submitted after the build-out period of the development agreement they were submitted in the fall of 2017 after the 1996 development agreements build-out period had already expired if you read the vesting clause the one provision of the development agreement that purports to address vesting it's in Section three point two three of the agreement strongly encouraged the commissioners to look at that very carefully because that I think is the linchpin of this proceeding the only reference to anything vesting related in that section says by its terms that the city is prohibited from imposing different regulations and new regulations are modifying its regulations during the build-out period and the obvious corollary to that statement is that once the build-out period is ended the city isn't constrained at all from adopting new regulations and it isn't constrainted often applying and enforcing those new regulations and that's precisely what the city of Issaquah did through its adoption of ordinance number 28 30 on March 19th of this year the ordinance that adopted the replacement regulations those are the new regulations that were by their terms intended to replace the standards that are contained in the 1996 development agreement all of the applicants all the landowners had 20 years plus to file applications and develop their property under the auspices of that agreement and the 20-year build-out period that was established underneath 15 and IHI FC didn't do that with respect to its STP and ASTP applications they submitted a preliminary plan that didn't show building footprints but they didn't submit their STP and ast Keys until after the build-out period ended so in staff's view they are fully subject to the replacement regulations and if there was any doubt about that if there was any reasonable doubt and that really shouldn't be after reviewing that provision of the development agreement I would respectfully direct your attention to the clause that immediately follows though that a section 3 point 2 point 3 point 2 and that provision expressly governs situations like this one where an applicant submits project permit applications after the build-out period of the development agreement has expired but before the new replacement regulations have come into being while the agreement is technically in effect and what that provision says by its terms is that the development standards of the agreement continue to govern that situation but any party can then provide notice under the agreement of termination and then when that happens that section refers you to a different section of the development agreement section 5.1 3 and if you read that all the way through the linchpin there the absolutely dispositive provision that should govern this proceeding it says at the very end that once the City Council adopts the replacement regulations they govern they govern immediately it doesn't purport to reach back in time and rescue or save or or grant vested rights to previously submitted permit applications it doesn't say that at all it simply says the new regulations shall govern period and that's what I think despite all of the lengthy dispute and then mounds of paper that have been generated throughout the course of the city's dealings with the applicant on this point that the vesting issue here is actually very simple it's a basic question of contract interpretation regarding a clause in the agreement that in staff's view is clear on its face and its intent and in its effect so moving forward with the permission of the Commission I would like to proceed by calling a few City witnesses I don't believe that we'll be able to get through too much testimony tonight but the city's first witness is development services director Keith Nevin I'm gonna come up here commissioner so I can actually see you all thank you could you please state your full name for the record sure my name is Keith Wayne Yemen what is your official title and position for the city of Issaquah I'm the director of the city's Economic Development Department as well you also the city's official yeah how long have you held the positions that you just referenced so economic development director since 2012 own services director since 2015 in your position do you have ultimate supervisory authority over the city of Vista cause Development Services Department and you does your supervisor III include the city's permit center the long have you work for the city yes I mean sorry to interrupt but if we're doing this as a place like judicial proceeding I think the witnesses of the city has an objection to the hearing the witnesses should be put under oath they had tested their great to tell the truth under penalty of perjury okay you we would stipulate to that and I typically it's the city clerk I I don't believe that I'm available to to administer oaths court reporter man mr. Nibin are you the city's highest official with interpretive authority with respect to the city's development regulations as codified in the Issaquah Municipal Code yes do you have personal knowledge of the subject matter of tonight's hearing specifically the 1996 Issaquah violence development agreement the city's promulgation and adoption of their replacement regulations for the SFO Highlands area they were nakid under ordinance number 28 30 the development of the Issaquah Highlands area under the 1996 development agreement and the submittals processing and evaluation of IH IFC's various land use applications yes and I'd like to ask you a series of questions now concerning procedural issues that have been implicated in tonight's hearing were you present for mr. Schneider's statements throughout tonight's proceedings yes I was did you personally read the motion for stay that mr. Schneider submitted on behalf of the applicant IHI FC dated today's date I briefly read it this morning yes like you call your attention first to section 1801 o 500 of the Issaquah Municipal Code are you familiar with this provision which subsection yes did you please read aloud subsection a of 1801 o5o sure thority unless otherwise noted in this code development services department director or his or her designee shall be responsible for administering this code the development services director or his or her designee shall have the authority to interpret this code anyone may request an interpretation of this code by filing a written request with the permit center the development services director or or her designee shall respond in writing to all requests for a code interpretation clarifying language of one interpretation of this code may be used for another interpretation of this code Thank You mr. given to your knowledge has IH IFC ever submitted a request for an interpretation of the code to the permit center under the authority of this provision in your official interpretation of the Amissah qualm municipal code is a request to confirm or otherwise determine the vested status of a project application a request for an interpretation of the code within the meaning of IMC 1801 o5o you say that again do you believe that it requests to confirm or determine the vested status of a particular project application is that the same thing as a request for interpretation of the code you please read aloud subsection C of 1801 o5o the whole thing just the preface I'm unclear it's as vested rights nothing in this chapter shall be interpreted to require an applicant to obtain approval of any other permit or approval from the city prior to applying for a building permit all city determinations regarding vesting shall be made only by the development services director in consultation with city attorneys in your official interpretation of the code section is the directors quote determination regarding vested rights end quote intended to be formatted as a standalone independently and separately appealable administrative decision I do not believe so as written is that a determination of that type simply the directors direction as to which set of local regulations will be applied to the city's processing in review or evaluation of a particular project proposal with the ultimate decision then being made by the final decision-maker on the permit I am objecting that these are leading questions which are inappropriate for someone asking questions of his own witness the question should be open-ended not directing the witness to a specific response with respect to two responses first of all as I believe the Commission is aware strict rules of evidence don't apply and local land use proceedings of this type second a leading question basically answers its own question and that's not what the questions that have been posed to mr. Nigam attempt to do and I believe that this is a clearly relevant topic in fact it's the the basis of the dispute between the parties and I would respectfully request the opportunity to continue questioning mr. mr. Nimmo I'm not suggesting it's not relevant but I'm suggesting that in effect we're having mr. lile testify and not the witness so I again you don't have rules of procedure but I think the questions are necessarily leading and that the witness should be asked to get his opinion not confirm whether he agrees with mr. lel's opinion when this decision for use decision making quite excited even like to ask the city attorney to advise how he's asking any questions or not so typically in our hearings we don't have a question answer it's now to judicial proceeding we get a presentation made to us to consider evidence don't limit what applicants say during wanting to hear mr. dibbens answers so if there's a way to ask questions that don't appear as as leading thank you I will try to keep that in mind so I'll try to rephrase that mr. Miller you might have the Newton's direction when you as a director make a determination regarding the vesting status of a particular project application under subsection C of 1801 o5o of the Issaquah Municipal Code in your experience or intent or belief is that an independently appealable determination or does any appeal of your determination have to wait until the underlying project permit has reached a final decision so I think again as I responded earlier I you know that decision doesn't happen typically what happens is I mean if you think if you think about the staff reports that come before you from staff and you think about you pull the last 50 that we've given you you're not gonna see a section on vested rights it's just not there and part of that is we determine what regulations apply to applications and we provide our staff reports in response to that in this particular case the applicant doesn't agree with the regulations we believe are applicable to their permits and so a vested decision again as part of the length normal land use process is not evident in part of the land use process it's there if you look at what regulations staff would apply his word adopting new regulations all the time related to different things within the city right and so part of it is we then apply those regulations to applications and there's a decision that's been made about what applies to each application typically that's not pulled out as a separate decision as part of the process in your experience as the director working with the city are you aware of any situation in which you're vesting determination regarding a particular project application was independently appealed to the Hearing Examiner some other Authority before a final decision on the project application was made then thank you please turn to IMC eighteen oh three oh seven oh a one let's scroll down could you please read aloud actually just to save time can you just review that place that a subsection a okay and can you scroll down on the screen to reach the end of it okay okay so in the enumerated list of administrative actions for which you as the director are granted by this section of the code the authority to make final decisions which I believe is the the wording of the of the ordinance are any of those that are options that are listed any of them encompass a vesting determination in your view under 1801 o5o C so the lists one through seven that's part of that section does not indicate vesting as a separate item thank you are you aware of him that he's cutting off his own witnesses testimony I think the witness should be allowed to complete an answer I sorry I thought you were done to you but you know as I mentioned earlier I mean that's did the decision about vested rights is somewhat in every discipline use permit decision that's made I mean you look at things like all of these things have regulations tied to them and those regulations can change based on city council action our decision would have to have an understanding of what regulations apply to each one of those I understand that I just want to have you clarify that of the list of items that are designated under this section of the code as being matters for which you have ultimate final decision authority starting with number one an administrative site development permit wait generally do you have authority over that for this section of code yes but for example under a site development permit submitted under the auspices of the Issaquah Islands replacement regulations would you have authority over that you not because that's a different section of city code applies to that geography thank you and for an administrative adjustment of standards is that the same thing as a vesting determination you know is a shoreline substantial development permit under subsection 3 would a vesting termination for the auspices of that as as I described earlier codes codes represent a certain point in time and there's static until they change you know the the idea of vested rights you know would apply to every application potentially right and so shoreline and shoreline exemptions are about request to do something within the shoreline and it's reviewed against a code that's in place right it has it is it is not specifically a vested rights application but does it potentially apply sure it does everything can you please go now to IMC 1819 bo4 oh this is the interpretive provision of the replacement regulations are you familiar with this section and drawing your attention to the provision of this code that specifically authorizes the party to file a request for an interpretation of this code by filing a written request the permit center do you see that in the middle of the paragraph beginning with the word e anyone yes as IH IFC to your knowledge ever submitted a request for an interpretation of the code as referenced in this provision to the permit section or the musubi of the permit center under the authority of this IMC provision in your capacity as director have you ever issued a stand alone separately appealable determination regarding the vested status of a project application thank you are you aware of any of your predecessors or designee z' ever having issued a stand alone separately appealable determination to that effect in your official interpretation of the Issaquah municipal code does the code contain any provision that would authorize you as the director to issue a stand alone separately appealable determination regarding the vested status of a project application I'm not sure I'm ready to answer that question I think you can come back to them okay in your official interpretation of the Issaquah Municipal Code does the Development Commission have the exclusive authority under the code to issue final decisions on IH IFC's a STP and STP applications okay why would you say that it's so because it's identified as a level three review because they are and that was my last question which is just to confirm that in your interpretation of the code our HRC is a STP and STP applications subject to level three thank you like to asking out questions regarding the 1996 development agreement could you please describe the history and purpose of that contract Jim general Trumps sure so the development agreement was executed between the city and crankily sure partnership more than 20 years ago and it was to guide the development on property that was at the time outside of jurisdiction so it was actually a development agreement and annexation agreement there was a three-party agreement with the city and King County and and I'm going to use port Blakely it was legally they were grand glaciar partnership to to guide that development so brought it into the urban area annexed into the city and the development agreement and provided a contract by which the developer could then build out the project okay did you describe or define the build-out period under the agreement what was an effective that was sure so the purpose so the build-out period was you know part of a development agreement is to provide predictability for a property owner typically there's significant either infrastructure improvements or other costs associated with doing those and so the the purpose of the 20-year build-out period for his Collins was to give the property owner a reasonable expectation to then recoup investments on the property and with Issaquah Highlands it wasn't just major infrastructure but it was also the provision of a significant amount of open space and so it gave them time to then recoup their investment costs through the sale of property builders when did the go got period expire so build-up Curt expired in September of seventeen you read section three point two three of the development of ground I did you read aloud the third sentence of that provision of three twenty three Lucy would probably need to scroll up just a little bit [Music] third sentence you said or third line with what did you ask for the third sentence of section three point two three beginning with the words during that build-out plated during the build-out period the city shall not modify or in pull or impose new or additional development standards beyond those set forth in this agreement do you construe this reference as meaning that the city is prohibited from applying action it's a leading question the question should be how do you construe this not do you construe it in the way that he's suggesting it sorry how do you construe this for this provision mr. Navin in relation to the concept of vested rights under the agreement so what this sentence says to me is during the build-out period we cannot unilaterally modify or impose new development standards beyond those set forth in this agreement there was a provision in the development agreement that said if there was a situation that was a compromise of public health and safety we did have the authority to amend the standards but what this says is during that build-out period we could propose but we couldn't unilaterally adopt changes to the development standards based on what you just read or anything else that you're aware of in the development agreement is there anything that would prohibit the city from applying new or different regulations after the expiration of the build-out period thank you you scroll down please Lucy to section 3.2 3.2 that section allowed mr. Devon please it's a short section we need to be point to please so titled after build-out the development standards shall continue to apply to all applications for implementing approvals submitted after expiration of the build-out period except either party may terminate this agreement and the zoning and development regulations may be modified as provided in Section five point thirteen scroll to 5.30 can you please read the last two sentences of five point thirteen this is the section that was cross-referenced in section 3.2 3.2 yes this section is called term giving with no sooner than oh oh there it is sorry I guess missing the beginning of the sentence no sooner than six months after the notice of termination the city shall hold public hearings and shall adopt zoning and related development standards for the urban growth area portion of the property or portions thereof as determined appropriate by the city upon such adoption this agreement shall terminate and thereafter the uga portion of the property shall be governed by the adopted city zoning and related development regulations thank you how do you construe that provision in conjunction with the previous provision that you just read section three point two point so 3.2 3.2 with respect to project applications that are submitted after the build-out period so the way I understand the language in these sections of the development agreement is during the term of the build-out period applications that were submitted the city could not change standards and therefore they could reach their term which would be a permit under the provisions of the development agreement as they were crafted once the replacement regulations are adopted then those regulations shall apply to everything that is not vested thank you so just to clarify is it your position that a project permit application submitted during the effective term of the development agreement but after the build-out period expired would be fully subject to the new replacement regulations that the city adopted a LAN site development permit or administrative site development permit would be the preliminary plat because it's its festival is a different thing right thank you are you aware of any a provision of a development agreement that expressly states that applications submitted after the expiration of the build-out period would remain vested to the development standards in the agreement despite the city's adoption of replacement regulations I'm not aware of any provisions like that in the are you aware of any addendum or amendment or attachment or appendix to the development agreement that would support that interpretation did the development agreement contain timeframes governing the city's processing of permit applications that were submitted under the auspices of the agreement yes there's a an appendix within the development agreement its appendix L I believe without opening my development agreement that had timelines associated with different permit reviews so that was a piece were these timeframes mandatory or binding or were they aspirational well there was a caveat within those timelines that identified that they were subject to adequate staffing over the approximately two decades in which the development agreement was in effect was most of the property that was subject to the agreement ultimately developed oh yes there's you know the the four to one left approximately 460 developable acres and what's left to be developed is if I was going to guess I'd say somewhere around 30 or 40 acres was IH IFC's property developed at all during this period no could you please a turn to section five of ordinance number 28 30 you familiar with this provision yes do you interpret this provision as categorically terminating the 1996 development agreement yes do please turn to IMC 1819 B to 80 [Music] you familiar with this program yes in your official interpretation of the Issaquah Municipal Code does this provision afford any how in terms about whether he agrees with mr. Lowe I'll rephrase the question for councils benefit how do you interpret this provision in relation to IH IFC's a STP and STP applications what this says to me is the only thing that that's under the replacement regulations our building permits longer short plats and development agreements AAS DPS and SDPs do not thank you so to clarify is it your position that under this provision the vesting protection afforded by IMC 1819 B 280 does not cover IH IFC's a STP and STP applications thank you was IHI have C the original land owner and signatory of the 1996 development agreement you know when approximately IH IFC acquired its property I don't know I don't know exactly I believe it was somewhere around 2013 do you know from whom it was acquired the property was previously owned by the Microsoft Corporation after IH IFC acquired its property approximately how much time was left before the build-out period of the agreement was scheduled to expire well it was the fall of 2013 and the build up period ended in the fall of 2017 for years in light of this looming deadline did i hif see proceed to file and use applications to develop its property under the development agreement after acquiring its property they did eventually but not in those first three years give or take what did IH IFC do instead of seeking to submit project permit applications they were pursuing support for a rezone what would be analogous to a rezone which would allow residential on the property that they did not have entitlement for so to clarify ih IFC instead of submitting permit applications to develop its property expeditiously after it acquired the property sought instead some type of movie zone or amendment to the agreement right you be analogous to okay and what was the process for that amendment well the process to amend that to allow residential which was already excused up within the entitlement allowance within the development agreement would require the city council to convert some of the commercial or retail entitlement to residential design selection did IHI of C submit a formal application or request to that effect to the City Council what did they do in lieu of that so the process began with them trying to get the administration to support that request the administration after multiple meetings with the applicant told them we would not support that request unless they had community support so they then tried they had a number of meetings with the community to try and garner support for residential mixed use project so that is the pathway they went down and how long did that process take approximately so conversations and public outreach I don't know two plus years and were there efforts to obtain public support necessary to proceed with the proposal ultimately successful did IH IFC then abandoned its efforts to seek some type of a reclassification or de facto rezone under the agreement so IH IFC then submitted their land use permits and those are the land use permits that were submitted in 2017 so if I understood your testimony correctly from approximately 2013 when IH IFC acquired the property until 2017 when they actually submitted permit applications they owned the property and were not actively attempting to seek development approval through the submission of permit applications objection it is testimony and it mischaracterizes the evidence that I heard who would the test acquit missus testimony speaks for itself it doesn't need recharacterization I'm asking clarification of the witness's testimony I think that with all respect I think that's appropriate answer the question mr. Nevins show so again all I know is is what was evident from city staff perspective and what I can tell you is when they purchased the property they sought a land use that was not within their ability to get permits for they initially went through a phase where they tried to that out administratively with staff to get staff support for that when it became when the staff made it clear that we were not going to support that without strong community support they then turned to get the community support and that was the next chapter of their process trying to get something to happen when that didn't succeed then they moved on to submitting the permits therefore the Commission this evening in that process took approximately three and a half or four years if I heard you correctly I that would yes Thank You mr. chairman I have several more questions about mindful of the Commission's intents who I believe break at 9:30 and I'm about to shift into a different area of question and I think that this might be an appropriate breaking point before the Commission would be happy to continue with mr. dibbens testimony if that's the preference of the Commission I would assume at least 30 probably fortunately 31 minutes with mr. Newman [Music] I appreciate it I appreciate the dialogue of the information we look forward to our meeting Chairman real quick for the 2014 there's a question for our council can we we don't know what we're going to get in response to the letter from today we put a placeholder on the agenda for an executive session in case we need so recap the the response from the city is due the 10th is that correct yes response from the applicant it was due the 16th the 10th by close of business the 16th by noon and will start at 7 o'clock the 24th I appreciate your time appreciate your attendance and return thank you thank you