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Development Commission - Special Meeting - 05 M Auto captions

Tuesday, March 5, 2019

3h 44m
1. CALL TO ORDER
1a
Commission Membership
packet pp.5
Staff report:
Development Commission About Staff Liaison Created in 1983, this commission reviews all land Lucy Sloman, use actions requiring a Level 3 review. The Land Development Manager Commission further serves as an advisory board to Email the City Council on land use actions requiring council approval (Level 5 review). Regular Members 2019 – Michael Brennan The appearance of fairness doctrine prohibits 2019 – Randolph Harrison Development Commission members and City 2020 – Melvin Morgan Council members from discussing the merit of 2020 – Kevin Price specific land use development applications outside 2022 – Jasmina Mihova of the formal public meeting process. Citizens, 2022 – Richard Sowa however, may discuss any issue with the City's 2022 – Richard Sanford Development Services Department. Written comments are also welcome. Alternate Members 2019 – Ryan Roeter Membership 2019 – Vacant The…
2. APPROVAL OF MINUTES
2a
Minutes of February 5, 2019
packet pp.7–10
Staff report:
APPROVAL OF MINUTES a) 02-05-19 Development Commission Minutes Page [0000] `CITY OF ISSAQUAH Development Commission SPECIAL MEETING February 5, 2019 Council Chambers 6:30 PM MINUTES 135 E. Sunset Way
2b
Minutes of February 6, 2019
packet pp.11–14
Staff report:
APPROVAL OF MINUTES b) 02-06-19 Development Commission Minutes Page [0000] CITY OF ISSAQUAH Development Commission 6:30 PM Council Chambers February 6, 2019 MINUTES 135 E. Sunset Way
2a
Issaquah Highlands Retail (High Street Collection) Site Development Permit, Application No. SDP18-00001; PRJ17-00027 Issaquah Highlands Medical Office Administrative Site Development Permit, (Q)* Application No. ASDP18-00007; PRJ17- Issaquah Highlands Self-Storage Administrative Site Development Permit, (Q)* Application No. ASDP18-00006; PRJ17
packet pp.23
Topics: Land UseTransportation
0:19 okay good evening ladies and gentlemen
0:21 I'd like to call to order the special
0:23 meeting uh development commission
0:25 special meeting that's going to be
0:27 discussing
0:28 the continue tion of the isqua Highlands
0:31 retail site development permit The isqua
0:34 Highlands Medical Office administrative
0:36 site development permit and the isqua
0:38 Highland self- Storage administrative
0:40 site development permit before we get to
0:42 start get started with our direct
0:44 examination again I would like to uh
0:46 have the Commissioners look at the uh
0:50 minutes from February 5th and February
0:53 [Applause]
0:54 6th and would ask for any motions to be
0:58 made
1:06 chair uh I'm I um move approval of
1:10 meeting minutes of February 5th
1:12 2019
1:15 second uh motion's been made and
1:17 seconded on approval of the minutes of
1:19 February 5th all those any discussion
1:22 comments
1:24 Corrections all those in favor say I I I
1:27 opposed so motion carries
1:31 Mr chair I move approval of our meeting
1:33 minutes from the February 6 2019
1:37 meeting second motion's been made and
1:40 seconded does there U any
1:46 discussion all those in favor of
1:48 approval of the minutes please indicate
1:50 by saying I I
1:53 oppos motion carries thank you so miss
1:56 Kye I think uh we're ready to start your
1:59 directing examination of your witness
2:02 thank
2:03 [Applause]
2:05 you just you
2:31 all right um again this is Jackie k for
2:34 the record uh Tia hi welcome back you um
2:37 Tia will you just confirm for us again
2:39 that you are still testifying under oath
2:42 um continuing on from your previous
2:43 testimony in the prior hearings I am
2:46 thank
2:48 you so uh the last time that we met we
2:52 left off in roughly the February 2018
2:55 time frame um we were talking about a
2:58 variety of events that happened early in
3:00 February um can you just kind of take us
3:04 back a little bit and um help us set the
3:06 stage again for your testimony tonight
3:08 um what was happening in February of
3:11 2018 um just in general terms between
3:14 shelter and the city with respect to
3:16 these applications that we're talking
3:20 about um so with respect to the
3:24 applications they had been deemed
3:29 insufficient several times we were
3:31 immediately responding and resubmitting
3:33 trying to address all of the issues um
3:36 that had been
3:38 identified um the larger picture was
3:42 that in early February I believe it was
3:45 February 2nd the city sent out um an
3:49 email announcing that the administration
3:51 had changed their recommendation with
3:55 respect to the vesting language that
3:58 would be included in the replacement
4:00 regulations so up until February 2nd of
4:05 2018 the city Administration was
4:08 recommending that the language that was
4:11 proposed to be part of the replacement
4:13 regulations would recognize vesting of
4:16 site development permits and preliminary
4:18 land use applications as they had been
4:21 doing um everywhere else in the city and
4:24 and um as they had previously cited
4:28 would uh allow the city to be in
4:31 compliance with the West Main V Bell viw
4:33 case so in February on February 2nd we
4:37 received an email with the with the
4:39 notice that the vesting language was
4:41 going to be changed um although there
4:45 were other applicants who received
4:48 notice that that change was going to be
4:50 made at various points before we
4:53 did do the replacement regulations you
4:56 know regardless of what they say how did
4:58 those impact vested rights
5:01 um they don't impact vested rights uh
5:04 with respect to applications that were
5:06 previously vested like
5:08 ours and so um was this what's your
5:13 understanding of what brought about this
5:14 change in the replacement regulations
5:16 around February 2nd time
5:18 frame um well I think it says it's it
5:22 states that it's a change in the
5:24 administration um that precipitated that
5:27 change um and so that was explained to
5:30 us to mean that the new mayor who had
5:32 taken office in January had changed the
5:35 recommendation of the the city were you
5:39 here and present to hear um the opening
5:41 statements that were made on um behalf
5:44 of the City by Mr L yes um and do you
5:48 recall I'm paraphrasing but the
5:50 arguments regarding the end of the
5:52 buildout period and the um end of the
5:55 development agreement termination of the
5:57 development agreement overall yes
5:59 generally can you um summarize just kind
6:02 of what you heard in terms of that
6:04 argument um well the arguments that that
6:07 we've heard I think primarily from Mr L
6:10 in the context of this hearing were new
6:13 to us because they the city is now
6:16 taking the position that the buildout
6:18 period had some significance that is
6:21 neither included in the actual words
6:24 that are in the development agreement
6:26 nor was it ever explained to us or to
6:29 anyone else to have that significance
6:33 so basically from what I've heard in the
6:36 context of this hearing uh the city is
6:39 saying that somehow applications that
6:41 were deemed complete prior to the end of
6:44 the buildout period are to be treated
6:47 differently than applications deemed
6:49 complete during the term of the
6:51 development agreement but after the the
6:54 buildout period and the the thing that
6:58 makes that a particular ularly hard
7:01 argument to put much uh faith in is
7:07 that there have to be land use
7:09 regulations that apply to our property
7:12 at all
7:13 times the development agreement was the
7:16 mechanism that enacted develop the land
7:18 use regulations or development standards
7:21 that applied to our property those were
7:23 the only standards that applied to our
7:25 property or that were available for us
7:27 to use from the time time the
7:29 development agreement was enacted all
7:32 the way through the end of March
7:34 2018 so to say that somehow you could
7:38 only vest prior to the end of the
7:40 buildout
7:41 period really makes no sense because you
7:44 would you would be saying that the only
7:48 development regulations those that were
7:50 enacted through the development
7:53 agreement didn't apply for some period
7:56 time um so that answer the question so
8:00 is is it um is it right that the
8:02 buildout period ended in September of
8:05 2017 yes or 201 2018 no 20 2017 2017 yes
8:11 um and and so you have September of 2018
8:15 going forward if if the arguments that
8:18 you just reiterated to me were true what
8:20 would that mean for development
8:21 regulations on shelter's
8:24 property can you restate that question
8:27 so so if the buildout period ends in
8:30 September and we know that the uh
8:33 development agreement didn't terminate
8:35 until March of 2018 um if the city's
8:39 argument were accurate as you just
8:41 paraphrased what regulations would be
8:43 covering shelter's property in the
8:45 meantime I don't know if the development
8:47 agreement didn't apply between the end
8:49 of buildout and the effective date of
8:52 the replacement regulations then there
8:54 would be no regulations that governed
8:57 our
8:58 property is that consistent with your
9:00 understanding of Washington state law
9:02 and what it would require for
9:03 development
9:04 regulations no um Washington state law
9:07 requires that you have development
9:08 regulations in place um particularly in
9:11 a in a GMA area um but also it's
9:16 inconsistent with the the terms of the
9:18 development agreement the development
9:19 agreement is really clear that it
9:21 continues to be effective until it
9:24 terminates and it gives a very specific
9:27 instruction for how it terminates and I
9:29 think both the city and we agree that it
9:32 didn't terminate until the end of March
9:34 2018 so to put some significance that is
9:38 not there on the end of a buildout
9:41 period is just I mean it it strikes me
9:45 as an attempt to go back and justify
9:48 actions that City staff and
9:49 administration took
9:52 um in hindsight after they've after they
9:55 already took those actions and just for
9:57 clarification you mentioned that acronym
9:59 GMA a minute ago what does that stand
10:01 for uh the growth growth man management
10:08 act so um you may recall from the last
10:12 hearing we had some larger packets of
10:14 materials that we were introducing um
10:16 we've got a couple more of those tonight
10:18 um so we're going to move through them
10:19 in the same manner as using an exhibit
10:21 number and then Parts ABCD to delineate
10:24 the subp parts um so let's start with
10:33 so around the um February early February
10:37 time frame um was shelter working on any
10:41 other applications um besides we talked
10:45 last time about the medical office
10:46 building um there was an office space
10:49 and then also the retail um what else
10:52 was going
10:53 on so the other application that we
10:55 worked on was the the storage
10:57 application and that one was slightly
11:00 behind um the the medical office and the
11:03 retail and the office building okay so
11:07 the next exhibit that we're going to add
11:10 into the record is going to be exhibit
11:13 s72 um and then we'll start working on
11:15 the subp parts so this first one will be
11:19 f72 a
11:41 Tia will you please describe what s72 a
11:45 is um this is the administrative site
11:48 development permit level 1 and two
11:50 review submitt requirements checklist
11:54 and it is
11:56 annotated uh
11:59 as it was submitted with our application
12:03 okay and then
12:05 s72
12:13 B this is the sepa envelope
12:18 determination um and I think I described
12:21 it in my earlier testimony but this was
12:23 a statement that references the uh
12:28 sea analysis had already been done for
12:30 the development with the development
12:33 agreement okay and s72
12:38 C uh s72 C is a Geotech
12:44 report and was that prepared as part of
12:47 the application for the storage yes this
12:50 was part of that application as well
12:59 right then s72
13:02 d s72 d is the storm water report that
13:08 was part of the application for the
13:11 storage uh administrative site
13:13 development
13:25 permit s72 e s s 72e is the um the main
13:33 package that was
13:36 submitted for the self storage facility
13:39 so it it includes the plans um the site
13:43 plan the views from around the site some
13:47 preliminary
13:48 engineering um
13:52 Landscaping
13:54 uh parking
13:57 layout internal unit
14:00 layout um
14:03 elevations things of that nature okay so
14:07 um and that's what I just pulled up on
14:09 the screen here is that the same thing
14:14 [Applause]
14:18 yes okay and then um that was fm2 e so
14:22 fm2 f is our next one
14:35 so s72 f is the public notice site plan
14:40 so it's part of the application that's
14:42 required and it's the um it's a site
14:46 plan that would be used for posting the
14:48 site and for public
14:50 notice okay uh s72
14:54 G this is the Affidavit of ownership and
14:59 the Affidavit of agent Authority that
15:02 were part of the
15:13 application s72
15:19 H um s72 H is a letter from isqua
15:23 Highlands Community
15:25 Association um that is the Arc or the
15:30 Architectural Review Committee approval
15:33 for the storage
15:41 proposal what does that process look
15:44 like the um you said the Architectural
15:45 Review Committee Arc um what does that
15:49 entail um so to get the the ARC approval
15:55 you bring your preliminary package in
15:58 front of their committee um give a
16:01 presentation have a discussion with them
16:03 and then if if they have comments
16:06 they'll give them to you if they have
16:08 changes they want to see they'll let you
16:09 know and then ultimately what you're
16:11 seeking is their approval of your um
16:15 basic architectural
16:18 design and then s72
16:25 I s72 I is the the design narrative that
16:30 was prepared by Jackson Maine
16:32 architecture who is our consultant on
16:35 this
16:40 project so the project narrative what's
16:43 what purpose does that
16:45 serve
16:47 um it's a required element of the
16:50 administrative site development plan but
16:53 it goes through um what the goals are
16:57 and then how we meet those goals
16:59 so things like site planning
17:00 architectural expression pedestrian
17:02 environment
17:04 and Landscaping Building Material colors
17:08 Etc s72
17:12 J s72 J is the land use permit
17:15 application for the um
17:25 asdp s72 k
17:29 s72 K is a title commitment from first
17:35 American and again is a requirement of
17:51 submittal s72 l s72 l is uh
17:57 transportation memo analyzing the block
18:02 e storage facility and it's prepared by
18:05 transpo group our transportation
18:13 consultant s72 m s72 m is a memorandum
18:20 from transpo group and it is
18:23 specifically about a parking
18:25 modification request that we submitted
18:29 um for the self storage
18:37 facility s72
18:41 n s72 n
18:45 is uh land use application for the self
18:48 storage facility and who's the person
18:51 that um listed themselves as applicant
18:53 there uh looks like William Bilu is
18:59 listed as the applicant and he's with
19:00 Jackson main architecture who was our
19:03 architect and our consultant running
19:05 point on this
19:06 project thank you um so that is the end
19:09 of s72 as an exhibit um and so Tia that
19:14 whole package that we just went through
19:16 what what was that um I that was the
19:19 initial submittal for the
19:21 storage uh project for the
19:26 administrative site development permit
19:34 so following submission of this um did
19:36 you receive any sufficiency letters from
19:38 the
19:39 city we did we received a letter of
19:45 insufficiency I'm going to pull up um
19:48 what is exhibit
19:51 c24 um and so that should be Tia and
19:54 your
19:55 binder here okay
20:09 so is c24 one of the letters of
20:12 insufficiency for this project it is um
20:15 and what's the date of this one this
20:17 letter is dated February 23rd
20:21 2018 can you run through um again it
20:24 doesn't have to be every single line but
20:26 um kind of the the highlights of some
20:28 the insufficiency comments that you got
20:31 in this letter yes so the first one uh
20:36 fits in the category that we've
20:38 previously discussed which was basically
20:41 saying that certain elements don't exist
20:43 because the plat isn't approved yet um
20:47 and this one actually references that
20:50 the letter uh agreement that was
20:52 ultimately signed by shelter and the or
20:55 by ihfc and the City in March it
20:59 references that it
21:02 was not signed yet and that that's part
21:04 of the insufficiency it also includes a
21:08 lot of things that we thought were and
21:10 think are um very minor and not not like
21:15 anything we've ever been called out uh
21:18 on for purposes of determining an
21:20 application insufficient so one of them
21:24 is that the PDF size is slightly larger
21:29 than is technically Allowed by the
21:32 checklist um another is that on the
21:37 submitt checklist it says these the not
21:41 applicable items these were blacked out
21:43 which made review for concurrence
21:46 difficult in the future please strike
21:47 with a finer line or otherwise retain
21:49 the legibility of the item for staff's
21:52 reference um while we understand that as
21:55 a comment putting that in the letter as
21:58 a basis for insufficiency seemed pretty
22:01 um unusual and
22:04 absurd
22:07 uh so as a practical matter I mean the
22:10 going back to number two the the size of
22:12 it something that was 116 megabytes in
22:16 size I mean is it your understanding
22:18 that that was ultimately successfully
22:19 submitted to the city so they were able
22:21 to see
22:25 yes there any other um highlights that
22:28 you wanted to talk about in this
22:46 letter
22:47 [Music]
22:50 um I don't think so I mean actually
22:52 there's things in here like that we
22:54 struck uh struck rooftops training as
22:59 not applicable but they're actually
23:01 asking us to clarify that no equipment
23:03 would be located on the roof or provide
23:06 the required information so I mean it
23:08 just it was it was a combination of of
23:11 sort of ticky tacky little things and
23:14 things that are easily and typically
23:17 handled within the review process not as
23:20 a basis for deeming an application
23:23 complete and then um number five on this
23:26 list references um
23:29 request request a modification to the
23:31 parking standards which is in amm um and
23:34 I think we talked a little bit about
23:35 this last time but can you describe
23:37 again what an amm is and then put that
23:39 into context here for us sure an amm is
23:42 an administrative
23:44 modification um and so what that is is
23:48 the at the administrative level the
23:50 staff can make modification certain
23:52 modifications to some of the development
23:54 standards if an applicant requests a
23:57 modification and meets the criteria that
24:00 are set forth in the development
24:01 agreement so this was um this comment
24:07 was telling us that because we were
24:08 asking for a modification with respect
24:10 to the parking standard um that we
24:14 needed to follow the development
24:15 agreement because again it's the only
24:17 set of regulations that existed at the
24:19 time and and submit the the amm
24:23 following the process in the development
24:26 agreement um which which we did with uh
24:30 with our
24:32 resubmittal and the reason we were
24:34 asking for an administrative
24:36 modification is that the the standards
24:38 in the development agreement required
24:41 much much more um parking than any
24:44 storage facility actually needs and so
24:47 that was the the issue so we were
24:50 providing the parking studies and and
24:52 the documentation to to show that the
24:55 appropriate amount of parking could be
24:57 provided so this reference to the um it
25:00 says please review the submittal
25:01 requirements listed in this section as
25:03 well as the approval criteria in the
25:05 development agreement in parenthesis
25:07 appendix o comma section 10 and
25:10 parenthesis against the transpo memo
25:12 provided to ensure that the necessary
25:13 materials are
25:15 included um so what did you understand
25:18 to be the applicable development
25:20 regulations to this application at this
25:23 time well the the development
25:25 regulations that were enacted by the
25:26 development agreement because again
25:28 again they were the only regulations
25:30 that there were and then this letter
25:33 also I mean confirms that and and tells
25:35 us to follow the development agreement
25:37 so is that just coming from your opinion
25:39 or also what the city's
25:41 saying uh
25:42 both and then in section uh
25:46 four um there's also a reference here
25:49 I'm looking at it's the last section of
25:52 section four so it's actually on page
25:54 two it says also ensure that the
25:57 documents you are referencing are from
25:58 the development agreement and not the
26:00 arc's architectural standards um is that
26:04 a similar issue to what we were just
26:06 talking about in terms of uh what we
26:08 discussed with Section Five excuse me of
26:10 that letter um I think it is because
26:13 again it's the city instructing us to
26:15 follow the development agreement
26:33 Okay so we've got another um packet of
26:37 materials um this will be
26:40 s73 and then we'll do the subp parts
26:43 again like we just
26:53 did and um so for starters Tia so after
26:56 you received the um um sufficiency
27:00 letter that we were talking about um
27:02 what did shelter do
27:04 next um respect to the storage
27:06 application we immediately got our team
27:09 to work on addressing all the issues
27:11 that were raised and and get a
27:16 resubmittal submitted as as soon as
27:19 possible okay so this is going to be
27:23 s73 a
27:37 will you describe what s73 a is
27:40 please yes so this s73 a is um the main
27:46 packet of of plans elevations and
27:50 information that is was resubmitted for
27:54 uh the storage facility so it has an
27:56 update on it that says asdp application
27:59 Corrections and a date
28:02 of 227
28:05 2018 okay let me pull that one up so we
28:09 can take a look at it while we're there
28:11 so um and the date on that so that was
28:14 is it right that that's a couple days
28:15 later from the sufficiency letter we
28:18 were just talking
28:19 about
28:21 yes um and this will be this next one
28:24 will be s 73b
28:35 and what's the document at s73 B so s73
28:40 B is the asdp sub midle narrative and
28:44 it's dated February 28th
28:47 2018 so did they um did your consultants
28:50 and shelter update the um narrative that
28:53 we were talking about before um I would
28:56 assume so
28:59 this next one is s73
29:03 c s73
29:17 c is the amm request
29:22 form does that relate to the parking
29:25 standards that you described a minute
29:26 ago
29:34 does and then s73
29:39 D this one's
29:43 marked s73 D is the land use application
29:47 form for the Self Storage proposal
30:02 is s73 e
30:06 s73 is the
30:09 updated um transportation memo for the
30:13 storage
30:22 proposal s73
30:26 f um s 73f is the updated memorandum
30:31 regarding the administrative parking
30:33 modification
30:43 request s73
30:50 G um this s73 G looks like it is
30:55 generated out of mybuildingpermit.com
30:57 and and is the
31:00 administrative modification or
31:03 administrative adjustment of standard
31:05 that we were requesting for the parking
31:15 standards and
31:19 then this is s73 G wait that was G oh
31:24 sorry about that s73
31:29 H thank
31:35 you
31:36 um s73 H is
31:43 uh a sufficiency determination with
31:47 respect to the amm for the parking
31:51 requirements and so this this um letter
31:56 states that based on the development
31:58 agreement that it that permit had been
32:02 determined to be incomplete or
32:04 insufficient um and then the specific
32:07 basis for that determination
32:12 was uh it states that it that the
32:17 development agreement appendix M
32:19 requires that the master developer
32:20 approve the amm request so that City
32:22 staff can process it please obtain
32:24 Master developer approval from John Shaw
32:26 at Hartland and provide the city with
32:28 written documentation of that approval
32:31 um we had had and have Pro provided that
32:37 approval to the city and the city has on
32:40 multiple occasions received from both us
32:42 and from um John shot Hartland who
32:46 represents Port Blakeley as well as from
32:49 Port blakeley's attorney Tom GS uh very
32:53 clear statements that that we as
32:56 property owner and and
33:00 um designated successor under the uh
33:04 development agreement have do not
33:07 require Master developer approval for
33:10 this and other
33:18 issues so looking at this was there um
33:22 was there any basis outside of the
33:24 development agreement for the city's
33:26 insufficiency letter
33:29 no the only one that was cited was that
33:31 we didn't have Master developer
33:33 approval so what was your understanding
33:36 of the development regulations that were
33:37 being applied to your application at
33:39 this
33:41 time um again it was the the development
33:45 regulations that were enacted by the
33:46 development agreement because they were
33:49 the only ones and the city specifically
33:51 sites to the development agreement and
33:54 to the appendix of to one of the
33:56 appendices of the development agement
33:58 and instructs us to follow
34:05 those okay this next one is s73
34:13 I and what's that document s73 I is the
34:17 administrative site development permit
34:19 level one and two review submittal
34:21 requirements and again this one is
34:24 annotated because it was submitted with
34:26 one of our submitt
34:34 next one is
34:35 s73
34:41 J s73 J is a letter from Jackson M
34:45 architecture to Jean Lynn at the city um
34:49 and it
34:51 is response to the pre-application
34:56 comments
34:58 that we eventually received from miss
35:01 Lynn do you recall when the preapp
35:04 comments were received um I believe they
35:06 were received on the same date as the
35:09 insufficiency letter so I think that was
35:11 February
35:16 23rd what implications does that have
35:19 for the permit process when you get the
35:22 um preapp comments on the same day as an
35:24 insufficiency letter
35:28 um well I mean typically you would get
35:30 preup comments right after a preup
35:32 meeting happens um and and would
35:36 incorporate those in your application
35:38 submittal but in in this case and in the
35:41 case of our permits the city was taking
35:44 so long to issue the preapp comments
35:47 that we went ahead and submitted um the
35:51 applications prior in most cases prior
35:53 to receiving the prea
35:56 comments in in written form obviously we
35:59 received some feedback at the
36:01 pre-application meeting itself going
36:03 back to something that we discussed
36:05 earlier in your testimony um under the
36:08 development agreement appendix L are
36:10 prea meetings required for these
36:13 applications no they're
36:15 not and and it was it seemed pretty
36:18 unusual the amount of time that that the
36:20 city took to issue the preop comments on
36:22 our sdp and asdp applications because I
36:25 think on our um that application we got
36:30 I think it was a week or less um before
36:33 we got between the pre meeting and when
36:35 we got the preop comments um and in the
36:38 case of most of our sdp and asdp
36:40 applications it was more like six
36:44 weeks and just again for clarification
36:47 so you testified a minute ago that um
36:50 the appendix all the development
36:51 agreement does not require the preamps
36:53 so why was shelter going through the
36:55 prea process the city is requiring us to
36:58 do the the
37:03 preamps next one will be um s73
37:10 k s73 k is a letter from Jackson main
37:15 architecture dated February 27th 2018 to
37:19 Lucy
37:20 slowman and it
37:24 is okay in response to the the
37:27 sufficiency
37:37 determination and then um s73 L looks
37:41 similar but maybe we can explain kind of
37:43 the difference between those so this is
37:45 s73 L and can you explain what that
37:48 document is um so s73 L is also a letter
37:55 from Jackson main architecture
37:58 to the city it's dated February 28th
38:02 2018 and it is the design
38:06 narrative so it's separate from the s73
38:11 k um is responding to the specific
38:14 things that were called out as the basis
38:16 for insufficiency of the application and
38:19 this is actually this s73 L is actually
38:23 um the updated design narrative
38:33 so this next one is s73
38:53 M um so s73 m is a non-residential sewer
38:58 use
39:00 certification which appears to be a King
39:02 County
39:04 form and um if you could do me a favor
39:07 can you hand me back the copies of um L
39:11 and K I just want to take a look really
39:14 quick thank
39:24 you so this next one is s73
39:29 n thank you
39:40 mhm what's this document at s73
39:46 n s73 n
39:52 so Mr chair for a second we've got a j
39:56 and a k that look to be the same
39:58 document the K's single page and the J
40:02 is let me take a look at and make
40:08 sure
40:11 right looks like this is the
40:13 double-sided and that's a single sided
40:15 of the same letter let me um make
40:22 we because they're back to back and they
40:25 might
40:28 if you go with those we'll we'll take
40:29 care of the duplicates just so you can
40:31 figure out which one you meant to use
40:33 this one is
41:06 February 27
41:09 2018 to
41:15 miss okay that's different so that's
41:18 your K yes that's different than what
41:20 they have so let's make sure got the
41:23 right so okay is this one
41:28 and these two are the same I
41:32 think this was
41:36 K so it should be the sufficiency
41:39 determination and address to Lucy slon
41:41 so theirs is mixed up
41:46 then and to complicate it more if these
41:49 two are the same thing and and N which
41:52 you were just going to introduce is J
41:54 okay let's focus on this one first
41:57 we'll do one at a time so I think they
41:59 got duplicates and that's it of um of
42:03 these so J is correct I don't think you
42:07 have the letter that you have I don't
42:10 think you have a copy of that yet
42:14 the to corre yeah so I think that there
42:18 was just a mixup in the um stack so um
42:22 so J is correct because that's the
42:23 February 27 to
42:25 G yes okay
42:27 we'll just be missing okay we'll get
42:33 you
42:35 okay the Gan
42:37 line
42:39 to slowman that's
42:44 okay
42:49 fine oh you're missing missam
42:57 I think we
43:00 have I never had J think we figured it
43:10 out3
43:11 that's I think we might have found it
43:13 because we got three JS and one k so I
43:16 think this must be the the
43:18 K yes that's correct okay we're caught
43:21 up okay good thank you
43:25 everyone so then T we just got to sort
43:28 out what we've got over here so then N I
43:31 think is the same
43:42 right it's got the same
43:50 dat which page are you
43:55 on it's different
43:58 mhm well just um here flip on my
44:05 page maybe not
44:11 same
44:17 okay yeah this is the same
44:22 letter
44:25 okay so that's J okay so n you don't
44:28 need to n we don't need okay thank you
44:31 so this was do you have your K already
44:35 yeah yeah okay I'm going to take these
44:38 away we have JK l
44:42 m and then we were about to start on N
44:44 yes okay but we're going to skip n well
44:47 with the document that we were going to
44:48 talk about um and actually I think with
44:52 all that confusion we've reached the end
44:54 of the pile anyways so that's good um
44:57 thank you for bearing with us on that so
44:59 that's a73 and that's the conclusion of
45:01 it would have been on exhibit M you guys
45:04 and Zach and Jeff you guys have the
45:06 documents as well okay excellent thank
45:09 you so um so that packet s73 and all the
45:13 subp parts um can you remind us again
45:15 what what was that in its
45:17 entirety so that packet was a
45:20 resubmittal of our storage application
45:23 which happened I think on February 28th
45:25 2018 thank you
45:41 here so after you did the reubal um did
45:44 you get additional sufficiency letters
45:47 from the city for the storage
45:49 application we did let's turn and take a
45:53 look at those the first one that I'm
45:54 going to pull up is C
45:58 25 um is this one of the letters the
46:01 sufficiency letters for
46:09 storage um yes it
46:12 is well actually
46:15 c25 it looks like is
46:19 the
46:21 sufficiency determination of incomplete
46:24 insufficient for the a mm so I think it
46:28 might actually be the same
46:33 s73 H got it okay so we've talked about
46:36 that one
46:40 yes and then the other one would be uh
46:48 c26 yes C c26 is um an insufficiency
46:54 determination for the Self Storage build
46:57 asdp
46:59 submitt okay and um can we do the same
47:03 thing of run through some of the
47:05 insufficiency comments in this
47:07 letter um there's only one comment in
47:10 here and it
47:12 references um it says many required
47:15 submittal requirements do not exist at
47:17 this time because the plotting process
47:18 to establish this property is not
47:20 complete and then it gives some
47:23 examples um and then it says however in
47:26 our dispute resolution meeting on
47:28 February 6 2018 there was agreement that
47:31 shelter Holdings Attorney Patrick melany
47:33 of foster pepper and the City attorney
47:35 Jim Haney of Ogden Murphy Wallace will
47:38 edit a draft letter provided by Mr
47:40 melany the signed form of that letter
47:42 lays out the terms under which the city
47:44 will accept the submitt prior to
47:46 completion of the platting and deem it
47:49 complete within the vesting framework
47:51 referenced in the letter without certain
47:54 submitt requirements being provided in
47:56 their re recorded final and approved
47:58 form so this was again the um argument
48:04 that Miss slowman was making that she
48:07 would not um accept an application for a
48:11 site development permit until the
48:14 platting was complete and it's a a
48:18 little bit unclear but I think it seems
48:20 to indicate that she's talking about not
48:22 only preliminary plat but also final
48:25 plat which
48:27 if you remember our what we talked about
48:31 several several nights ago now
48:35 um could be years down the road the
48:37 final plat isn't
48:39 recorded uh until after the plat is
48:42 actually built and all the
48:43 infrastructure is is in
48:46 place and this letter that um it's
48:50 referencing if if you could turn to
48:53 exhibit s36
48:57 it's already in the
49:16 record is this the uh the letter
49:19 agreement that that sufficiency letter
49:22 is referencing that it wasn't prepared
49:24 at that time but it eventually was
49:26 prepared
49:27 yes it it is that letter and I think it
49:31 was prepared at that time because they
49:33 it it may not have been in its final
49:35 form um but it had been prepared much
49:39 earlier than that I think in in January
49:43 or maybe even December thanks for that
49:45 clarification um and we'll we'll turn
49:47 back to this letter in a minute I just
49:49 wanted to check to see if we were
49:51 talking about the same
49:52 thing um
50:01 let's take a look at a new exhibit
50:03 exhibit uh
50:24 s74 and I'm actually going to hand you
50:26 two exhibits what the first will be s74
50:29 and the second will be
50:31 s75 um we'll explain both of them as we
50:40 here first one's
50:51 s74 and if you could explain um what the
50:54 exhibit s74 is please
50:58 uh yes so
51:00 s74 is a letter that I submitted to the
51:06 land and Shore committee on March 1st
51:09 2018 um and it was in response to um the
51:15 packet that was prepared by staff for
51:18 that land and Shore meeting where they
51:21 would be discussing the end of the iso
51:23 Highlands development
51:25 agreement okay
51:27 and why did you submit this
51:30 letter um I submitted the letter because
51:34 I was concerned that the land and Shore
51:39 committee and the public were not
51:42 getting accurate and complete answers to
51:46 the questions and issues that had been
51:49 raised um and because we were continuing
51:54 to participate in the public process
51:56 related to
51:59 um everything that related to our
52:01 project or our property um including the
52:05 replacement regulations that were being
52:09 proposed and then
52:12 s75 what's uh what's this document
52:15 what's that letter
52:34 um this letter which is also one that I
52:38 submitted on March 1st 2018 to the land
52:41 and Shore committee is is more
52:44 specifically um on vesting there had had
52:48 started to be a lot of discussion on on
52:52 vesting um and the the council members
52:56 on that committee were asking for
53:00 information
53:02 um so this
53:04 was in response to some of the questions
53:08 that had been asked what did you explain
53:10 to them about
53:13 vesting
53:15 um well I mean I
53:20 I in in the first section of the letter
53:24 I tried to address what ing is and so it
53:28 states that the vested rights Doctrine
53:31 refers generally to the notion that a
53:33 land use application under the proper
53:35 conditions will be considered only under
53:36 the land use statutes and ordinances in
53:39 effect at the time of the application's
53:41 submit submission and that's a quote
53:43 from Noble Manor versus Pierce County
53:47 case um and then it goes on to to talk
53:51 about the purpose of vesting in
53:52 providing certainty and predictability
53:54 in land use regulations um um and the
53:57 fact that development rights are
53:59 recognized as valuable property
54:02 interests under Washington state law um
54:06 it also went on
54:08 to clarify that the development
54:10 agreement does in fact address vesting
54:13 because staff was telling them them
54:16 being uh the council members and the
54:18 public otherwise as you've seen I think
54:20 in the earlier um slides that were
54:23 presented they were stating that it
54:26 didn't provide any guidance on on
54:29 vesting when in fact it actually
54:32 provided quite a lot of of guidance on
54:35 vesting
54:37 um there also the the council members
54:41 had been asking
54:42 for um city attorney's position on
54:46 vesting um and what came out in the
54:49 packet of that was public was um a very
54:54 generic memo on on vesting law it didn't
54:59 once mention the development agreement
55:01 or the fact that that there was a
55:03 vesting provision in the development
55:05 agreement so while it addressed vesting
55:09 generally it really didn't provide any
55:11 guidance with respect to the specific uh
55:14 situation that the the council was
55:16 dealing with at that time
55:22 also called out that that
55:27 um the city's position
55:31 that vesting naturally terminates at the
55:34 end of the contract had no support in
55:36 Washington state law or in the
55:38 development agreement and despite having
55:40 asked for that the that no one at the
55:43 city was providing that um and there
55:47 seemed to be just a general confusion at
55:50 the council level as
55:54 to the dis
55:56 the items that vest per state law so
56:00 state law requires that plats building
56:02 permits and development agreements
56:05 vest and so there was confusion between
56:08 that and the concept of complying with
56:10 Washington state law so what we were
56:12 trying to do was to say yes there are
56:16 those three categories are things that
56:18 Washington state law requires the city
56:20 to acknowledge as as vested um but you
56:24 also are required to follow Washington
56:27 state law generally and and that some of
56:29 the ideas that had been proposed or
56:32 floated as options in the the
56:36 documentation or um explanations from
56:40 staff were in fact not
56:46 legal so absent this interpretation from
56:50 the city that the replacement
56:53 regulations that were ultimately adopted
56:55 uh dive vest to use their term uh
56:58 shelter of their vested rights um do the
57:02 replacement regulations actually have
57:05 any impact on your vested rights I mean
57:07 a lot of the letters that we're just
57:08 talking about are talking about the
57:09 replacement regulations but what impact
57:11 should there be on your vested rights
57:13 and your understanding well we have we
57:16 have vested applications we had vested
57:18 applications at the time the replacement
57:20 regulations were adopted and effective
57:24 so they really should have no impact the
57:27 replacement regulations should have no
57:29 impact on our projects
57:32 um the I think the interpretation that
57:36 they retroactively take away our vested
57:39 rights is
57:40 particularly
57:43 um absurd because it they don't say that
57:46 they do that when you read the the
57:49 regulation itself it doesn't say that it
57:52 retroactively takes away uh vested
57:55 rights it doesn't say that it applies
57:57 retroactively it just
58:00 acknowledges that there are three things
58:02 that the city is required
58:05 to um required to recognize as vested
58:10 the building permits plats and short
58:12 plats and development Agreements are
58:15 specifically listed as the third item we
58:18 vested under a development agreement so
58:20 even if under some scenario you were
58:23 trying to retroactively apply
58:25 regulations that didn't exist at the
58:27 time our applications were submitted to
58:29 our application it still says that you
58:32 vest to the development agreement so
58:34 I've never quite understood the city's
58:36 logic in pointing to the replacement
58:39 regulations as a basis
58:41 for divesting our
58:46 projects a minute ago when you were
58:48 describing um the March 1 letter at
58:52 s75 um you talked about predictability
58:55 and certainty um as part of of vesting
59:00 law um if the city were were right in
59:04 its arguments that we've heard here so
59:06 far what impact would that have on
59:08 predictability and certainty for for
59:10 shelter and um for other developers or
59:13 property owners in your
59:15 experience um well I think there's maybe
59:18 two parts to that question um one if if
59:23 a city or any legislative body has the
59:26 ability to retroactively take away
59:30 vested
59:31 rights that turns all land use and
59:35 development in Washington state upside
59:37 down I mean there everything that I know
59:40 and have experienced about land use law
59:41 is wrong and we're changing all the
59:44 rules it would have major major
59:47 implications on development in
59:49 Washington state um if you're talking
59:53 about this other concept about vesting
59:56 naturally terminating at the end of a
59:58 development
59:59 agreement I think that that also has has
1:00:05 major implications on land use law in
1:00:07 Washington and on the desirability or
1:00:10 viability of using a development
1:00:12 agreement which is intended to be a tool
1:00:14 to allow cities and developers to or
1:00:19 Property Owners to work
1:00:21 collaboratively together to find um the
1:00:27 result for the community um and if a
1:00:30 developer cannot rely on the terms of
1:00:33 the development agreement or the term of
1:00:36 a development
1:00:37 agreement it it becomes useless and it
1:00:40 won't it won't be something that
1:00:42 developers will pursue and I think that
1:00:45 would be unfortunate because there's a
1:00:47 lot of good development that's happened
1:00:48 as a result of development agreements
1:00:56 you also mentioned a minute ago um
1:01:01 the the presentations or representations
1:01:05 um that the development agreement
1:01:07 doesn't say anything about vesting by
1:01:09 City staff and we've heard about that
1:01:11 from other Witnesses a little bit too um
1:01:13 but I'd like to introduce another
1:01:15 exhibit this will be
1:01:20 um and we can talk about that a little
1:01:22 bit more
1:01:28 so what's the um what is the document
1:01:34 s76 is a PowerPoint
1:01:38 presentation um dated March 1st 2018 for
1:01:42 the council land and Shore committee so
1:01:45 this would be the same
1:01:48 um meeting at which I provided the the
1:01:52 two letters that we just talked about as
1:01:53 s75 and s74
1:01:56 and if you flip through it I I believe
1:01:58 it's on the last page of this
1:02:02 um there is yeah it's the very last page
1:02:06 33 um there's a slide titled vesting um
1:02:11 can you tell us more about this slide
1:02:13 and what it
1:02:20 provides um
1:02:30 well the first sentence says why is
1:02:33 vesting in the rest of the city more
1:02:35 lenient um and my understanding is that
1:02:39 that's a reference to the fact that uh
1:02:43 staff was acknowledging that everywhere
1:02:45 else in the city they were planning to
1:02:47 continue their current
1:02:50 um procedure of or policy of recognizing
1:02:54 that vesting happen happens at complete
1:02:56 preliminary land use
1:02:58 application uh because that
1:03:02 was uh necessary in order to comply with
1:03:05 the West Main V bellw case the first
1:03:08 bullet on the page says the development
1:03:11 agreement does not provide regulations
1:03:13 or guidance on vesting of
1:03:15 projects that's just flat out not
1:03:21 um the the next bullet was Property
1:03:24 Owners knew the development agreement
1:03:25 had a specific buildout period or
1:03:28 term that's true but it doesn't really
1:03:31 have anything to do with
1:03:33 vesting
1:03:35 um the third is vesting projects to
1:03:37 outdated standards is not in the best
1:03:40 interest of the community and the fourth
1:03:43 partnership the partnership with the
1:03:45 master developer for good design
1:03:47 standards expires with the
1:03:51 agreement so that last Point expires
1:03:54 with the agreement um it you know
1:03:56 obviously doesn't say specifically what
1:03:57 it's talking about but um is what was
1:04:02 your understanding of this expiration
1:04:04 with the agreement and how that affected
1:04:06 vested rights from from the city's
1:04:07 perspective at this
1:04:09 time um I think they were trying to
1:04:12 imply that the master developer had a
1:04:14 continued level of control over
1:04:17 developments that were occurring in
1:04:19 isqua Highlands that that actually was
1:04:21 not there um I don't think it's accurate
1:04:24 to say that the all the design standards
1:04:26 expired because there was still the you
1:04:29 know the ccnr or the covenants
1:04:31 conditions and restrictions were not
1:04:32 expiring and those continue to be
1:04:34 implemented through isqua Highlands
1:04:36 Community
1:04:37 Association um and particularly with
1:04:40 respect to our property but also with
1:04:43 respect to the other properties that had
1:04:45 been sold off by the master developer
1:04:49 um there just wasn't any element of
1:04:52 Master developer control over design
1:04:55 standards which they were telling the
1:04:57 the council and the public that there
1:05:00 were going back to that the first point
1:05:02 that you brought off why is vesting in
1:05:04 the rest of the city more lenient um you
1:05:07 mention you know the rest of the City
1:05:09 versus um versus what um versus let's
1:05:14 see at at this point in time I believe
1:05:16 that the isqua highlands
1:05:20 um had been separated from Talis in
1:05:23 terms of the termination of the
1:05:24 development agreement because both had
1:05:26 termination of development agreement and
1:05:28 replacement
1:05:29 regulations uh being adopted on similar
1:05:32 time frames and at some point they split
1:05:34 the two um but they were I think
1:05:38 planning to treat them the same for
1:05:39 purposes of most of the code including
1:05:42 the vesting provision so they were
1:05:46 saying the the vesting in the rest of
1:05:48 the city would refer to everywhere else
1:05:51 outside of those two Urban Villages for
1:05:53 which the development agreements were
1:05:54 being
1:05:56 terminated so for the highlands the
1:05:58 isqua highlands um what what properties
1:06:03 remained to be developed and would need
1:06:06 to benefit from vesting um specifically
1:06:10 just in the highlands area versus the
1:06:12 rest of the
1:06:13 city um there's very few undeveloped
1:06:17 properties left in isqua Highlands I
1:06:19 think there's some information in one of
1:06:23 the exhibits that we've already talked
1:06:25 about that showed a chart of all of the
1:06:27 properties that were left
1:06:30 undeveloped
1:06:31 um at this point in time so as of March
1:06:37 1st I believe that the
1:06:40 only two properties that they that the
1:06:43 city staff was saying would potentially
1:06:46 be left
1:06:47 unvested if the city went with the
1:06:50 vesting language and interpretation that
1:06:53 the staff was again at that point in
1:06:55 time time um recommending would be our
1:07:00 property and the city surf property the
1:07:04 city served property the city later
1:07:06 changed position and decided to
1:07:08 recognize vesting for them at the last
1:07:10 minute the day day before two days
1:07:13 before the um replacement regulations
1:07:16 were adopted so that left us and our
1:07:19 property as the only property with
1:07:21 applications pending that the city was
1:07:23 not going to recognize as vested to the
1:07:25 the development
1:07:33 agreement then this uh first point the
1:07:35 development agreement does not provide
1:07:36 regulations or guidance on vesting of
1:07:38 projects I think in your first binder
1:07:42 here this one uh yeah I just want to
1:07:45 make sure we get the right exhibit
1:07:46 number
1:08:16 okay so we're looking at
1:08:19 s25 um and that's the excerpts from the
1:08:23 development agreement that we talked
1:08:25 about the first night that you
1:08:27 testified um can you point out a couple
1:08:30 examples of where the development
1:08:32 agreement provides for regulations or
1:08:34 guidance on vesting of projects sure so
1:08:37 section 3.23 is titled vesting of
1:08:40 development standards and
1:08:49 mitigation and then going to this second
1:08:51 bullet point where it says Property
1:08:52 Owners knew the development agreement
1:08:54 had a specific buildout period or term
1:08:57 um you said it's true that you know that
1:08:59 you knew that there was a build out
1:09:00 period or term um but what what
1:09:04 implications does that have under the
1:09:06 development
1:09:07 agreement so after the buildout period
1:09:10 the development agreement continues in
1:09:12 place um the only change is that the
1:09:15 city is allowed to
1:09:18 adopt CH changes to the development
1:09:21 standards in the development agreement
1:09:23 or to terminate or either the city or
1:09:26 the master developer could terminate the
1:09:28 development agreement so we knew that
1:09:31 both of those things were possible but
1:09:32 we also knew that there's a required
1:09:34 process for the city to enact those new
1:09:36 ordinances so the development
1:09:39 agreement
1:09:41 continues
1:09:44 until it terminates by enacting by the
1:09:47 city enacting the replacement
1:09:49 regulations can you look specifically at
1:09:52 section 3.2 3.2 of the development
1:09:56 agreement and uh
1:09:59 s25 and um you just explained it in
1:10:03 terms of the buildout period but what
1:10:04 does that provide for in that
1:10:07 section um it specifically is talking
1:10:09 about after the buildout period And it
1:10:11 says the development standards shall
1:10:13 continue to apply to all applications
1:10:15 for implementing approval submitted
1:10:17 after expiration of the buildout period
1:10:20 except either party May terminate this
1:10:21 agreement and the zoning and development
1:10:23 regulations may be modified as provided
1:10:25 in section
1:10:27 5.13 so that's what I was just
1:10:29 describing that everything stays the
1:10:32 same and continues to apply unless and
1:10:35 until something is modified per
1:10:39 5.13 and 5.13 is the term section of the
1:10:43 development agreement and that's where
1:10:46 it outlines how the
1:10:49 city uh goes about adopting replacement
1:10:52 regulations to terminate the agreement
1:10:55 and even there it says no sooner than 6
1:10:58 months after the notice of termination
1:11:00 they have to hold public hearings um
1:11:04 prior
1:11:05 to um adopting the the new zoning
1:11:10 so under any
1:11:13 scenario the development agreement
1:11:15 contemplates that there's a period after
1:11:17 buildout where the development agreement
1:11:19 needs to still apply because the
1:11:23 development regulations under the
1:11:24 development agreement are the only thing
1:11:26 that can apply to this property um until
1:11:29 new regulations are
1:11:41 implemented oh sure
1:11:57 I think if you don't mind um we're at a
1:12:00 pretty clean spot to take a break if
1:12:02 that's okay it's 741 so about an hour in
1:12:04 a little over an hour um is that okay
1:12:07 with you we continue if you would like
1:12:08 to either way I was going to ask for
1:12:10 that so I appreciate the recognition of
1:12:12 that and uh I would offer that we take a
1:12:15 break for 10 minutes thank
1:23:23 e all right we're back on the A and back
1:23:25 in session okay thank
1:23:28 you uh so Tia we left off a minute ago
1:23:30 talking about um a couple documents from
1:23:33 March 1st we're looking at the
1:23:35 PowerPoint from the March 1st 2018
1:23:37 Landon Shore meeting um do you recall
1:23:40 whether you were present at that
1:23:42 meeting I don't believe I was I think um
1:23:45 Patrick melany of foster pepper are
1:23:48 outside um land use Council attended
1:23:52 that meeting um
1:23:55 both because I was sick but also because
1:23:58 I received an email from uh council
1:24:01 member Stacy
1:24:03 Goodman uh I think in the afternoon
1:24:05 before that meeting letting me know that
1:24:09 she had decided to allocate the 3 minute
1:24:14 um time limit that they put on on people
1:24:17 making public comment that she had
1:24:19 decided that she was going to allocate
1:24:21 it on a group byg group basis so that we
1:24:25 would only get a total of three minutes
1:24:27 for however many um people came to speak
1:24:31 um on behalf of of
1:24:33 ihfc and she said that she wanted to
1:24:36 call that out to us because we um
1:24:39 typically brought more than one person
1:24:41 to participate in the public
1:24:44 process are um or was this meeting the
1:24:46 March 1st meeting was it videotaped yes
1:24:50 and did you review the video and watch
1:24:52 it after the fact yes um did you also
1:24:55 review the slides that we were just
1:24:57 talking about at
1:24:59 s76 yes I've reviewed the slides and and
1:25:02 the packet that went into the meeting
1:25:06 obviously so next I'd like to turn to
1:25:09 exhibit uh new exhibit
1:25:19 s77 uh Tia what is this
1:25:23 document s 77 is an email um from Sarah
1:25:27 Beth LaVine to me uh Sarah Beth Works um
1:25:32 in my office and is part of the
1:25:34 development team and she had gone to the
1:25:38 city to drop off the application fee for
1:25:43 the storage
1:25:45 asdp and the person at the desk and as
1:25:51 well as the permit technician that was
1:25:53 there
1:25:55 um refused to accept the application fee
1:25:59 and then told her while she was there
1:26:04 um they wanted to give her back to
1:26:07 previous checks that she had dropped off
1:26:10 because our applications were denied and
1:26:15 she she Angie Angie Aldrich the permit
1:26:20 technician gave Sarah Beth the two
1:26:24 previous checks that she had submitted
1:26:26 and as well as the check she was
1:26:29 attempting to submit that day and asked
1:26:32 her to take them back as the city was
1:26:34 refusing them um and this was on March
1:26:40 2018 so this was before the replacement
1:26:43 regulations had been
1:26:46 adopted
1:26:48 um and it was it was surprising to me
1:26:51 that the city would refuse the checks
1:26:53 and the that they were giving back
1:26:56 checks that they had accepted months and
1:26:58 months earlier when we had submitted our
1:27:00 applications for the medical office
1:27:02 building and the um retail sdp so this
1:27:07 also says that
1:27:10 um the applications were
1:27:13 denied is what's your understanding of
1:27:16 what it means to have a denied
1:27:20 application well a denied application
1:27:23 would mean
1:27:25 that it was not approved
1:27:29 and I I mean I I don't I didn't know how
1:27:32 to take
1:27:33 that is that um consistent with your
1:27:37 understanding of how the sufficiency
1:27:39 letters worked in that process or is
1:27:41 that something different to
1:27:44 you well I mean the sufficiency letters
1:27:47 we had been going back and forth I mean
1:27:49 we had been submitting and getting in
1:27:51 insufficiency letters for several months
1:27:53 at this point point we had the um letter
1:27:56 agreement pending City
1:27:59 signature um at that point so this all
1:28:03 just seemed very bizarre to to reject
1:28:06 application
1:28:07 fees and then to also state that the
1:28:10 applications were
1:28:12 denied so that was March uh
1:28:15 14th um there was another document uh at
1:28:19 S40 if you can turn to that I believe
1:28:22 was dated March 14th this as
1:28:42 well so um Patrick mlan testified about
1:28:46 this document uh a few evenings ago um
1:28:49 can you describe again what this
1:28:51 document is please
1:28:55 so S40 is a letter from Patrick melany
1:29:00 addressed to Keith nen
1:29:04 regarding city transportation impact fee
1:29:07 credit
1:29:11 proposal do you um Recall why this was
1:29:15 provided or just kind of what the
1:29:17 purpose of This
1:29:20 was um well I think that Mr nian had
1:29:25 suggested that we
1:29:33 um draft a
1:29:35 proposal to get some sort of
1:29:40 discounted impact fee credit for traffic
1:29:44 mitigation fees that had already been
1:29:46 provided per the development agreement
1:29:50 um and so
1:29:54 Patrick melany was writing back to Mr
1:29:56 nien to explain that because our
1:30:00 preliminary plat application and which
1:30:03 allocates all of the allowable
1:30:04 development that we had under the
1:30:06 development agreement across the
1:30:08 property um was vested that part of what
1:30:13 vests per the terms of the the
1:30:16 development agreement are the
1:30:18 development standards the development
1:30:19 standards expressly include the
1:30:22 mitigation so
1:30:26 he was explaining to Mr nien that
1:30:29 because we were vested under the plat we
1:30:32 did not see any reason why there should
1:30:34 be a deeply discounted recognition of
1:30:38 Transportation mitigation impact fees
1:30:40 that had been already received by the
1:30:45 city okay and then if you can turn to um
1:30:48 exhibit s36 please
1:30:56 yes um we briefly mentioned this letter
1:31:00 a minute ago um remind us what what is
1:31:02 this letter
1:31:04 again so this is uh March 15 2018 letter
1:31:10 agreement regarding completeness
1:31:12 determinations for the sdp applications
1:31:14 and asdp
1:31:17 applications and can you walk us through
1:31:20 um what this letter provided for in
1:31:22 terms of um the agreement between
1:31:25 shelter and the
1:31:28 city um sure it it provided for the city
1:31:32 to recognize that the sdp applications
1:31:35 were in fact complete
1:31:38 um and and then that shelter or
1:31:43 ihfc was um consenting
1:31:50 to have the city review the plat applic
1:31:54 before the sdps because that seemed to
1:31:57 be their issue that they wanted the plat
1:31:59 to be processed first um despite that
1:32:04 being what they were articulating that
1:32:06 they wanted the plat to be processed
1:32:07 first they had done nothing up until
1:32:10 that point to process that application
1:32:13 that at that point had been sitting with
1:32:17 for at least 7 months because it was
1:32:22 August 1st 20
1:32:25 17 when the complete application was
1:32:28 submitted and we were now in mid
1:32:30 mid-march
1:32:32 2018 um so I think those were the two
1:32:36 the the two biggest points of that
1:32:37 letter were that they were deeming the
1:32:39 sdp applications complete and we were
1:32:41 saying
1:32:43 fine process the plat um so it actually
1:32:51 says following the completeness
1:32:53 determinations the city will focus on
1:32:54 the timely processing of the of IH ifc's
1:32:57 preliminary plat application before
1:33:01 ihf's sdp applications are
1:33:08 processed so it also mentions there if
1:33:10 you look at the next sentence and what
1:33:11 you were reading it says that um uh it
1:33:14 mentions because of the added procedural
1:33:16 requirement of appearing before the
1:33:17 development commission or the Urban
1:33:19 Village design commission um what's your
1:33:22 understanding of what that meant
1:33:29 sorry where are you let me read this so
1:33:31 okay so following preliminary plat
1:33:32 approval the city's goal is four to six
1:33:37 months for for asdp review and 69 months
1:33:40 for sdp review because of the added
1:33:43 procedural requirement of appearing
1:33:45 before the development commission or the
1:33:47 Urban Village design commission so um
1:33:55 that was just describing that there was
1:33:58 a process
1:34:01 for consideration of sdp
1:34:04 applications um that actually would not
1:34:07 apply
1:34:08 to all of them it would have only
1:34:11 applied to the sdp applications not the
1:34:15 asdp and is that um where where are you
1:34:18 getting that from that uh that it would
1:34:20 only apply to one versus the other oh
1:34:23 because the development agreement
1:34:25 provides that only the site development
1:34:28 permit applications go in front of a
1:34:29 commission the asps are administrative
1:34:32 and that's supposed to be approved by
1:34:34 the administrative
1:34:44 staff
1:34:51 okay let's then um turn to exhibit s38
1:34:56 which was um I believe
1:34:59 the next day after that letter was
1:35:02 dated
1:35:05 um can you describe what s38 is for us
1:35:09 yes s38 is an email to Keith nien from
1:35:13 Patrick melany and it copies Jim Haney
1:35:18 myself um and Pat
1:35:20 Schneider um and it's this it's
1:35:24 regarding shelter's response regarding
1:35:26 City partial traffic impact fee credit
1:35:28 proposal so the email chain um is in
1:35:33 response to the letter that we were just
1:35:35 talking about
1:35:37 under
1:35:39 s 40 I think S40 which was S40 okay so
1:35:45 it was Patrick melan's letter and and in
1:35:48 the email chain on Thursday March 15th
1:35:51 437 Keith wrote to Patrick saying my
1:35:54 read of this letter is that ihfc does
1:35:56 not want to enter into a conversation
1:35:57 with the city about impact fees if I
1:35:59 have misunderstood please let me know um
1:36:02 so the next day Patrick wrote back to
1:36:05 Keith and said I do think you that you
1:36:08 misunderstand ihc's position ihfc has
1:36:12 always been willing to discuss the
1:36:13 development agreement mitigation and
1:36:15 remains willing to do
1:36:17 so um there's more there but I don't
1:36:20 know that I need to read it in unless
1:36:21 you want me to no that thank you that's
1:36:23 okay and so um so was shelter willing to
1:36:27 discuss mitigation with the
1:36:31 yes had shelter been trying to discuss
1:36:34 mitigation with the city yes I mean
1:36:37 throughout all of our conversations with
1:36:39 the city
1:36:41 um throughout the the process of the
1:36:46 replacement regulations being considered
1:36:48 and throughout the process of our
1:36:49 applications being submitted we always
1:36:52 had been open to disc discussion and in
1:36:54 fact asking for discussion um but
1:36:57 typically what was happening was Keith
1:36:59 would ask us or specifically to have
1:37:03 have us to have Patrick write something
1:37:06 which then Keith would say he was
1:37:08 sending to the City attorney and we
1:37:10 would get no
1:37:11 response um no response from Keith or no
1:37:15 response from the city attorney and even
1:37:18 when uh Patrick would call the City
1:37:21 attorney he often wouldn't get calls
1:37:23 back or wouldn't get get response um at
1:37:27 all so you know there are several
1:37:30 letters that are in the record that
1:37:32 you've seen that we we provided per as
1:37:35 requested
1:37:37 and there just wasn't any response on
1:37:39 the city's
1:37:41 side so this email also makes reference
1:37:43 to it says in IH ifc's view mitigation
1:37:46 is intertwined with vesting and both
1:37:48 issues are raised in the notice of
1:37:50 default um if we look at S4
1:37:58 one um is this the notice of default
1:38:01 that that email was referring
1:38:09 yes and what's your understanding of why
1:38:12 this was provided what's the purpose of
1:38:15 this um the notice of default was a
1:38:18 formal notice to the city of all of the
1:38:21 ways that they were in default of the
1:38:23 development
1:38:27 agreement it also had the development
1:38:29 agreement also has a provision that if
1:38:31 you deliver a notice of default you're
1:38:32 supposed to meet within a set number of
1:38:34 days I think it might be seven did you
1:38:37 end up meeting with the
1:38:39 city we did
1:39:00 so let's turn um let's let's turn to
1:39:03 that meeting and talk about it um and
1:39:05 we'll come back to to another issue in a
1:39:07 moment um so do you recall and you're
1:39:10 welcome to look at your meeting minutes
1:39:12 if you need to to refresh your memory um
1:39:15 but do you recall when that default
1:39:16 meeting
1:39:18 happened um I believe that it happened
1:39:23 March
1:39:28 2018 although these notes say 19 but
1:39:33 18 and just um for a matter of the
1:39:35 record Zach I wanted to make sure you
1:39:36 have a copy of the meeting minutes for
1:39:38 this meeting that correct okay perfect
1:39:41 just wanted to make
1:39:42 sure um okay so let's talk about what
1:39:45 happened in this meeting um who who were
1:39:47 the people that attended
1:39:49 it um so this meeting it was Gary Young
1:39:53 me Patrick melany Pat Schneider Zack L
1:39:58 Keith nien and Lucy
1:40:01 slowman and um and so you mentioned a
1:40:03 minute ago that this was arising out of
1:40:05 that um March 5th letter
1:40:10 um so what was I mean we we know that it
1:40:12 was a notice of default and this was
1:40:13 coming out of that but um what were the
1:40:16 the topics in general that that you were
1:40:18 talking about at this
1:40:20 meeting um
1:40:23 well I mean we were going through the uh
1:40:27 the defaults that we had specified in
1:40:30 the in the letter um Mr
1:40:33 nian explained that rather than Write a
1:40:36 response that he wanted to talk through
1:40:41 defaults were you here to listen to um
1:40:44 Patrick mol's testimony about this
1:40:46 meeting I was do you agree with his
1:40:49 characterization of what happened in the
1:40:51 meeting I do
1:40:55 do you recall um how City staff reacted
1:40:59 at this meeting to the issues that were
1:41:01 being raised in the
1:41:03 discussion uh yes um Mr nien seemed
1:41:08 upset to at having to be present at the
1:41:12 meeting from the outset um
1:41:15 [Music]
1:41:16 and made that clear in his
1:41:19 Communications with us and with our
1:41:21 attorney um
1:41:28 so we it was it was a little bit
1:41:31 contentious from from the very beginning
1:41:33 but we attempted to walk through um the
1:41:37 notice of
1:41:46 default I'm looking on the um the the
1:41:50 second page here of the meeting minute
1:41:54 um it's 1 two 3 four five bullet points
1:42:05 um after you've had a chance to review
1:42:08 can you um can you tell us about Mr
1:42:10 Nan's reaction in this
1:42:13 meeting yeah so at some point um partway
1:42:17 through the
1:42:18 meeting uh Mr nen
1:42:23 stated that he needed to leave by 2:45
1:42:27 for another meeting across town so he
1:42:29 suggested that Mr Schneider should
1:42:31 manage his time more efficiently um at
1:42:34 that point Mr nien was really kind of
1:42:37 agitated and and getting
1:42:44 angry if you go further down the page
1:42:46 there
1:42:48 um and look at let's see it's one two
1:42:54 10 bullet points
1:43:00 down um what did Mr nan have to say
1:43:03 about the the timelines under the
1:43:05 development
1:43:09 agreement
1:43:14 um well he said he wasn't prepared to
1:43:17 answer questions about the timelines
1:43:21 because he didn't know them because he
1:43:23 didn't he he didn't feel like that was
1:43:25 his job but that maybe Lucy might know
1:43:30 timelines then if you go further down
1:43:32 there um what did Miss Lowman have to
1:43:34 say about the the timelines under the
1:43:36 development
1:43:38 agreement she acknowledged that the
1:43:40 timelines were
1:43:44 exceeded so after that
1:43:48 meeting was it what was your impression
1:43:50 in terms of um at least one of the
1:43:53 defaults that was being alleged in terms
1:43:54 of the timing and exceeding the time
1:43:57 requirements under the development
1:44:00 agreement sorry can you say that again
1:44:02 so after that so miss slowman you just
1:44:05 explained um had said that the timeline
1:44:08 was exceeded um was that one of the
1:44:11 defaults that was alleged in your
1:44:14 default letter on from March 5th that
1:44:17 the city wasn't following the timelines
1:44:19 of the development agreement yes that
1:44:21 was one of the
1:44:27 defaults and so after she acknowledged
1:44:30 that that that that time frame had been
1:44:32 exceeded Mr Schneider asked if we could
1:44:35 all agree that there was at least one
1:44:37 default
1:44:41 um and then he pointed out that the
1:44:43 development agreement states that if
1:44:45 there are defaults that the defaulting
1:44:48 party has 30 days to cure did they cure
1:44:51 the default in 30 days no they did not
1:44:54 they still it our plot is still in
1:44:59 process so then on the next
1:45:03 page about seven seven bullet points
1:45:09 um this conversation it appears from the
1:45:12 notes continue to progress um what was
1:45:16 Mr nen's reaction as the meeting went
1:45:19 on um as I stated before he was he was
1:45:23 agitated and upset at having to be there
1:45:26 he kept saying things like he didn't
1:45:28 understand or he didn't know or it
1:45:29 wasn't his job
1:45:33 um and at one point he told us that the
1:45:36 city can respond by April 4th but all
1:45:39 the letter was going to say is that he
1:45:41 didn't understand and so there wasn't
1:45:43 really going to be any substance to the
1:45:51 response um and then
1:45:54 Mr Schneider said what pointed out that
1:45:57 it was clear that he really hadn't that
1:45:59 Mr nien hadn't really read the notice of
1:46:01 default carefully and and hadn't given
1:46:04 it adequate Focus so rather than having
1:46:08 him read it out loud um he wanted to
1:46:10 move to the agenda items that we had
1:46:14 provided at the outset so Mr Schneider
1:46:16 had provided an agenda at the beginning
1:46:18 of the meeting at that point Keith got
1:46:20 really angry and started packing up hisu
1:46:22 stuff and was attempting to leave the
1:46:25 meeting
1:46:27 um saying it wasn't a good use he didn't
1:46:30 know if it was a good use of of our time
1:46:35 and that his plan was just to write back
1:46:37 to us in 30 days saying that he needed
1:46:39 more information and he wanted to leave
1:46:41 at that point um Mr Schneider pointed
1:46:44 out to Mr nian that according to what he
1:46:48 had told us earlier in the meeting he
1:46:50 still had 20 minutes left before he
1:46:52 needed to leave to get to his meeting
1:46:55 and asked that he please sit back down
1:46:58 so that we could continue to go through
1:47:00 the agenda items um and the city could
1:47:03 explain their position as we went on um
1:47:07 and Mr nien did did end up sitting back
1:47:09 down and
1:47:11 staying you f to the the very last page
1:47:14 of your um notes I'm looking at a bullet
1:47:19 point that's 1 two 3 4 up from the
1:47:21 bottom
1:47:24 um what did Mr Divan have to say about
1:47:27 the um vested status of the plat he
1:47:31 confirmed that the plat is vested and
1:47:33 will be reviewed based on the standards
1:47:35 in the development
1:47:37 agreement and so then um Patrick melany
1:47:40 pointed out that the development
1:47:43 agreement defines development standards
1:47:46 capitalized term um as including
1:47:50 mitigation and so he asked for
1:47:52 confirmations that what they're saying
1:47:54 was that we vest through the plot to the
1:47:58 mitigation and Mr nien said that they
1:48:01 would need to get back to us on
1:48:04 that have they gotten back to you on
1:48:09 um sort of there there is a letter on
1:48:13 from April 4th that Mr nien wrote back
1:48:16 in response to this
1:48:20 meeting um before we before that meeting
1:48:25 ended
1:48:28 um I guess Patrick mlini kept asking
1:48:35 um some questions about vesting and if
1:48:39 the city's position was that even if we
1:48:41 had a complete application the
1:48:43 replacement regulations could
1:48:45 retroactively
1:48:51 unvested at the time time and so he said
1:48:54 something to the effect of you want my
1:48:57 opinion on that I'll give you my opinion
1:48:59 it's and then Mr L cut him off and said
1:49:02 no we'll get back to you on that and
1:49:04 that was kind of how the the meeting
1:49:07 ended uh Mr Schneider said that it would
1:49:09 be helpful if we had their official
1:49:11 position because we don't have any clear
1:49:14 answers and that they are $33 million
1:49:17 plus questions and the Clock Was ticking
1:49:26 so you mentioned that um the city
1:49:29 responded least in part with a letter
1:49:32 from uh date of April 4th
1:49:35 2018 um can you turn to exhibit s30
1:49:39 please
1:50:01 is the letter at s30 is that the letter
1:50:03 that you were just referring
1:50:06 to it
1:50:10 is so what did the city have to say in
1:50:14 this letter and I know it's it's a
1:50:15 lengthy letter so we don't have to go
1:50:16 through every aspect of it but um let's
1:50:21 talk first about the the plat
1:50:23 application issue uh do you recall what
1:50:25 the city had to say about the plat in
1:50:30 letter um I believe they acknowledged
1:50:32 that it was vested let me find the
1:50:36 section
1:50:54 [Applause]
1:51:00 I think to um to help you find it I'm
1:51:03 looking at page
1:51:04 five uh there's a section
1:51:08 that runs onto that page and let me know
1:51:11 if that's what you're thinking
1:51:21 about yeah
1:51:23 yes this is what I was thinking about
1:51:36 um so it
1:51:40 um it says in part on actually the top
1:51:44 of page five there's a sentence that
1:51:46 reads where a plat application actually
1:51:49 identifies a specific development plan
1:51:51 or concept such as building Footprints
1:51:53 setbacks Etc what is vested is what is
1:51:57 sought in the application for a plat and
1:52:00 that's a quote from Noble Manor
1:52:03 um based on
1:52:06 this uh our plat application vests us to
1:52:13 both the building Footprints of the sdps
1:52:16 which are shown on our plat
1:52:18 application um as well as the parking is
1:52:22 also shown a parking layout is also
1:52:24 shown on the plat application um and the
1:52:28 the development plan or concept is shown
1:52:32 in the form of the table that allocates
1:52:35 the allowable development um under the
1:52:38 development agreement across the blocks
1:52:41 so when I read that portion of this
1:52:44 letter I thought well that portion is
1:52:47 correct um they somehow come to
1:52:50 different conclusions
1:52:53 um I actually suspected that this
1:52:57 when the city responded to this and
1:53:01 wrote this that maybe the people that
1:53:04 wrote this letter weren't aware that the
1:53:06 building Footprints and allowable
1:53:07 development were shown on the plat
1:53:11 um because I think it it
1:53:14 really I mean it it states what the law
1:53:16 is and and our our plat complies with
1:53:20 that and given those two things there's
1:53:23 no reason why we should
1:53:24 be here in this hearing because we were
1:53:27 vested and are vested to the development
1:53:30 agreement the development standards
1:53:32 under the development agreement which
1:53:35 would give jurisdiction over our sdp
1:53:38 applications to the UVC not the
1:53:40 development commission and to the and
1:53:44 the asps should be administrative
1:53:47 decisions that are made by the
1:53:50 administrative staff
1:53:53 so a minute ago um you were mentioning
1:53:56 the what the plot shows um we have a
1:54:02 a figure of the plot that's already in
1:54:06 the record but um we noticed that maybe
1:54:09 because the shading is very light that
1:54:11 some of the features aren't showing up
1:54:14 so um we wanted to
1:54:16 introduce another exhibit which is going
1:54:18 to be
1:54:19 s78 um this is just a higher resolution
1:54:23 image of the plat um so that's a little
1:54:28 bit easier to
1:54:41 see yes
1:54:47 please redefined or or clarified version
1:54:50 of a PL are you refering to the CL that
1:54:53 was contained in the August 2017
1:54:55 submittal or the December 15th 2017
1:54:59 supplement the the December that was
1:55:02 included with the notice of decis or
1:55:03 notice of application thank you so
1:55:06 that's um here's one for record think I
1:55:09 have an extra here for me
1:55:12 p and tia if you could take a look at it
1:55:15 and just confirm you know what I just
1:55:17 explained that this is is what I said it
1:55:21 is yes this is a sheet out of our plaid
1:55:24 application materials and it's just a
1:55:27 better print out of what was actually
1:55:29 submitted okay and what were some of the
1:55:32 um the features that you were concerned
1:55:34 may not be showing up on the lower
1:55:37 resolution images of this um I think
1:55:40 specifically the parking was hard to see
1:55:42 in the smaller and and lower resolution
1:55:46 version that was previously included as
1:55:48 an exhibit and if you look down at the
1:55:51 bottom um here here in it's it's almost
1:55:54 in the middle of the page what's the
1:55:56 date of this
1:55:58 document 12:14
1:56:01 2017 okay so that's referencing back to
1:56:03 that December submitt that we were just
1:56:05 talking about yeah and again the way
1:56:09 that Mr L refers to it infers that there
1:56:11 are two applications there are not two
1:56:14 applications there is one single
1:56:16 application for one single plat and
1:56:19 never before this hearing has the city
1:56:21 ever alleged that there were two
1:56:24 applications or that somehow this was
1:56:27 not part of our
1:56:30 application
1:56:34 okay so before we get too far along um
1:56:37 in the timeline wanted to go back to um
1:56:44 uh new exhibit which will be s79
1:57:11 um will you please
1:57:13 describe what the document is at s79
1:57:22 yes this is a
1:57:25 letter that I wrote to the isaca city
1:57:29 council on March 16th
1:57:32 2018 and why did you write that
1:57:37 letter um we wanted to make sure that
1:57:40 the city council was aware of what was
1:57:44 going on with the staff and the review
1:57:48 of our applications and that there were
1:57:53 serious defaults under the development
1:57:55 agreement
1:57:59 um and that if they proceeded in the way
1:58:03 that the administration was recommending
1:58:07 that there we would have no choice but
1:58:10 to pursue legal action that was not what
1:58:13 we wanted to do it's not in anybody's
1:58:16 best interest but it
1:58:18 was the only Avenue that that staff and
1:58:22 and the administration were leaving us
1:58:26 with and turning back to the April
1:58:30 fourth letter that we were just talking
1:58:32 about so that's back at
1:58:39 um what did shelter do after receiving
1:58:42 this letter
1:58:44 um what next steps did it take with
1:58:47 respect to the letter and what it says
1:58:50 um we
1:58:53 because what this letter said was that
1:58:55 they were deeming our sdp applications
1:58:58 to not be vested any longer to the um
1:59:04 development standards enacted by the
1:59:06 development agreement
1:59:09 we appealed this determination to the
1:59:12 hearing
1:59:14 examiner um the city argued at the
1:59:17 hearing examiner that it wasn't a final
1:59:21 determination that they were going to
1:59:22 make that final determination later and
1:59:25 that we were premature in our uh
1:59:29 appeal let's take a look at exhibit S2
1:59:49 please okay um what is this doc doent at
1:59:55 S2 it is a declaration of Mr nen signed
2:00:00 May 31st
2:00:04 2018 and
2:00:07 um what did uh Mr nian tell the hearing
2:00:10 examiner well and actually to back up
2:00:13 was this submitted to the hearing
2:00:14 examiner that you just
2:00:17 referenced yes it was uh what did Mr
2:00:20 nian tell the hearing Examiner
2:00:23 about when a final decision would be
2:00:28 issued um in number eight of his
2:00:31 declaration he stated that each of these
2:00:34 applications which he's referring to the
2:00:36 sdp applications and asdp applications
2:00:39 is currently under active administrative
2:00:41 review and is being processed by the
2:00:43 city the city has not yet issued a final
2:00:47 decision approving denying or
2:00:48 conditioning any of the requested
2:00:50 permits
2:00:52 although not certain I anticipate that a
2:00:54 final decision on ihc's sdp and asdp
2:00:59 applications will be issued in June or
2:01:04 2018 and that a decision on IH ifc's
2:01:07 preliminary plat will be issued in
2:01:09 August or September of
2:01:11 2018 did any of those things happen no
2:01:15 they did
2:01:17 not and what was the date of this
2:01:20 declaration so this was was from May
2:01:26 2018 so May 31st 2018 and then he's
2:01:30 anticipating June or July
2:01:36 um is it your understanding that it
2:01:38 would be even possible for the
2:01:40 applications to be heard and decided in
2:01:42 front of something like the development
2:01:43 Commission in that time
2:01:45 frame uh I don't I don't believe so um
2:01:49 since they would have had to be noticed
2:01:51 and staff reports would have had to be
2:01:53 written um and they really hadn't done
2:01:57 any review on the applications at that
2:02:00 point
2:02:02 um nor are we aware of any review being
2:02:05 done until much later in in August and
2:02:10 September of
2:02:12 2018 did you review this declaration um
2:02:16 when you received it around around this
2:02:18 time of um May 31st yeah
2:02:22 yes what was your understanding when you
2:02:25 reviewed it of what would happen with
2:02:28 applications my understanding was that
2:02:31 city administratively was going to issue
2:02:35 a decision on the applications saying
2:02:37 that they had determined that they were
2:02:40 not vested to the development standards
2:02:42 in the development agreement and instead
2:02:44 would be considered under the
2:02:48 um replacement regulations and were
2:02:51 there for being denied I thought those
2:02:55 decisions would be issued
2:02:58 administratively um there was
2:03:01 another communication from Miss slowman
2:03:05 around this time we got I believe it was
2:03:08 on May 25th of 2018 we got a letter on
2:03:12 each of our applications stating that
2:03:15 the city was going to apply the
2:03:17 replacement regulations and asking us to
2:03:20 either revise our applications so that
2:03:22 they complied with the replacement
2:03:24 regulations
2:03:26 or um let them know in writing that we
2:03:30 would not be doing that because we
2:03:32 didn't agree in which case they would
2:03:34 expeditiously issue a decision on the
2:03:38 applications so never in that
2:03:41 communication nor in this communication
2:03:43 did they say anything about development
2:03:45 commission um there were also additional
2:03:48 conversations that were happening and
2:03:50 Communications that were happening
2:03:52 between the city's attorney and our
2:03:54 attorneys
2:03:56 um no one communicated that we would go
2:03:59 to development commission until much
2:04:04 later so let's um going back to what you
2:04:07 said just a minute ago these May 25th
2:04:09 letters um let's talk about those for a
2:04:13 minute so those would be new exhibits um
2:04:17 which we should be at s79
2:04:28 S8 okay s next no you're correct that's
2:04:31 right because the March 16 letter is s79
2:04:34 thank you so
2:04:36 S80 um and there's three of these
2:04:41 letters so it'll be
2:04:47 s81 and s82
2:05:05 here's the first
2:05:15 one this is not the same
2:05:18 thing sorry
2:05:27 so S8 is the medical office
2:05:32 yeah okay so they've left us shy of one
2:05:42 but then
2:05:45 s81 should be for
2:06:00 this one we have the correct number of
2:06:02 so there you
2:06:20 okay so uh Tia can you
2:06:23 describe um what the letters are at S80
2:06:28 s81 and s82 please yes S8 is regarding
2:06:33 the medical office building s81 is
2:06:36 regarding the retail and
2:06:40 s82 is regarding the storage facility
2:06:43 all of these letters are the letters
2:06:45 that I just described they're dated May
2:06:49 2018 um
2:06:56 and they acknowledge that
2:06:59 our administrative site development
2:07:02 permit or site development permit
2:07:03 application was deemed
2:07:05 complete
2:07:10 um um but
2:07:14 then they say that following termination
2:07:17 of the agreement and the city council's
2:07:20 adoption of replacement regul
2:07:21 regulations the project site is
2:07:23 therefore is thereafter governed by the
2:07:25 replacement regulations rather than the
2:07:28 standards set forth in the agreement
2:07:31 um and then they ask us to
2:07:36 review uh well it asks it says please
2:07:38 notify me if any changes are necessary
2:07:41 to comply with the newly effective
2:07:42 regulations which you may view here and
2:07:44 they provide a link if your position is
2:07:46 that the replacement regulations are not
2:07:48 applicable to your permit application
2:07:50 and you decline to form the review and
2:07:53 make the modifications referenced above
2:07:55 please confirm your intent to this
2:07:56 effect in writing at your earliest
2:07:58 convenience in that event the city will
2:08:00 proceed expeditiously to issue a final
2:08:02 decision on your permit based upon the
2:08:04 application's compliance or
2:08:06 non-compliance with the replacement
2:08:07 regulations this request to um make our
2:08:13 make revisions to comply with the
2:08:15 replacement
2:08:17 regulations
2:08:19 um seemed
2:08:24 a little bit disingenuous to us given
2:08:27 that the replacement
2:08:29 regulations
2:08:32 were portions of them were developed to
2:08:35 prohibit
2:08:37 the exact type of development that we
2:08:40 were proposing specifically on the
2:08:42 retail application um and that everyone
2:08:46 already knew that the none of these
2:08:49 three applications complied with the
2:08:53 with the replacement regulations um so
2:08:56 we received this letter on May 25th
2:08:58 which I think was either the Thursday or
2:09:01 the Friday before Memorial Day weekend
2:09:03 and we responded back to them I think by
2:09:06 the 31st so only a couple business days
2:09:09 later and
2:09:11 then nothing we didn't get any
2:09:15 expeditious decision we didn't get
2:09:18 anything um until much later well I
2:09:22 guess there were conversations happening
2:09:24 between the attorneys like I had said
2:09:26 before um where we were under the
2:09:29 impression that the the decisions were
2:09:32 coming
2:09:34 administratively
2:09:35 um and at
2:09:38 one at some point in August I believe we
2:09:42 were informed that the city had changed
2:09:44 its position once again and had now
2:09:47 decided that we should go to development
2:09:50 commission um to determine if there if
2:09:52 the applications complied with the
2:09:55 replacement
2:09:57 regulations so um so minute ago you
2:09:59 mentioned that you responded a couple
2:10:01 days later to those letters um there's a
2:10:05 new exhibit at
2:10:07 s83 um is this the the letter that you
2:10:11 were referencing
2:10:17 [Applause]
2:10:28 um I think this is part of the response
2:10:32 because I think there was also there was
2:10:33 a letter from me as well as a letter
2:10:37 from Foster pepper I believe um so this
2:10:41 is yes part of the the response if you
2:10:44 take a look at uh S7 in the
2:10:48 record um I'll give you a minute to get
2:10:51 it in front of you but is uh if you can
2:10:53 tell me if S7 is the other part of that
2:10:56 response that you're
2:11:04 referencing yes it
2:11:08 is and then um you made reference a
2:11:11 minute ago to conversations between the
2:11:13 attorneys um
2:11:17 about the um
2:11:23 the process that was being applied um
2:11:25 this will be
2:11:38 84 can you describe what the document is
2:11:41 at s84
2:11:44 please yes this is a letter
2:11:48 from Pat Schneider to Zack
2:11:58 um following up on a conversation that
2:12:02 they had had on August 2nd um in which
2:12:07 Mr L had explained that the city had
2:12:10 changed its position and now intended to
2:12:13 process our
2:12:14 applications for sdps and
2:12:19 um by means of the process in the
2:12:22 replacement regulations which meant it
2:12:24 was going to development
2:12:27 commission the letter goes on to explain
2:12:30 why that should not be uh happening
2:12:36 but that's where we
2:12:39 are so just again being um conscious of
2:12:43 time I've got another topic that is is
2:12:46 fairly short I think to get through so
2:12:48 I'm going to try to get through that and
2:12:49 then pause for a break again if you
2:12:51 would like to um I think it would take
2:12:54 about 10 to 15 minutes but I just wanted
2:12:57 to let you know let's do
2:13:18 that so this next exhibit um
2:13:23 will be
2:13:45 s85 uh Tia will you please describe the
2:13:48 document at s85
2:13:51 uh so this is a
2:13:53 continued email
2:13:56 chain um regarding our preliminary plat
2:14:01 application and
2:14:02 processing um the email at the very top
2:14:06 is from Lucy slowman to me um on Friday
2:14:12 December 21st
2:14:15 2018 okay and there's um there's some
2:14:18 attachments to that
2:14:21 um this and I want to provide um one of
2:14:25 those attachments this would be uh
2:14:29 s86 if you could just confirm for me
2:14:32 that this is in fact one of the
2:14:34 attachments
2:14:51 yes so s86 was attached to the December
2:14:55 21st 2018 email from Miss lomman to me
2:14:59 um and this is a
2:15:04 coated responses back and forth
2:15:08 on um questions related to our plat and
2:15:14 it's a document that Miss slowman put
2:15:16 together based on correspondence that
2:15:18 the city received or sent to to us
2:15:21 related to the
2:15:23 plat and so have you um has shelter
2:15:27 responded to the most recent comments
2:15:31 from I guess this would be from December
2:15:34 2018 um yes so we resubmitted our plat
2:15:40 application today to the city um the
2:15:44 this email chain if you look back it
2:15:47 starts um back in April of
2:15:56 um and it's taken from April of 2018
2:16:01 until December 21st 2018 for us to get
2:16:07 straight answers out of the staff as to
2:16:10 what regulations apply to our plat and
2:16:16 when I say what regulations I don't I
2:16:19 maybe regulations isn't the right word
2:16:20 stand standards like specifically things
2:16:22 like Road standards um Trail standards
2:16:25 the things that you really need to know
2:16:27 in order to put together um an
2:16:30 application for a plat we were getting
2:16:33 changing direction inconsistent comments
2:16:36 so and just a lot of non-responsiveness
2:16:40 so I think we've already gone through
2:16:42 the some of the time frames in here
2:16:44 where there are long pauses where we you
2:16:47 know ask for information in April and we
2:16:49 get a response at the end of August
2:16:51 um so big big gaps in in um
2:16:56 communication and um finally on December
2:17:00 21st they sent back enough information
2:17:03 that we could revise our plat so we've
2:17:05 been working from then until now to
2:17:10 revise and resubmit the um plat
2:17:15 application so it's back into the city
2:17:17 now okay um and I have copies of that um
2:17:23 they're already in order so I can have
2:17:26 just a second to add them but this will
2:17:29 be s87 and then we'll go through the
2:17:31 subp parts um which are subp Parts a
2:17:35 through I believe it's F or yeah a
2:17:39 through f
2:18:02 give you I'm G to hand you these make
2:18:04 sure that I'm that they're the same ones
2:18:07 in each of these packets um in
2:18:11 order so B here you go okay
2:18:31 therey
2:19:09 right that's the complete Marked One um
2:19:13 these two are in the same order but not
2:19:21 okay so um if you could walk us through
2:19:25 the uh subparts of exhibit
2:19:29 s87 pleas um beginning with a so s87 a
2:19:34 is a preliminary storm water
2:19:39 report s
2:19:46 the main
2:19:49 plat package has some of the preliminary
2:19:52 engineering and the the layout that's
2:19:55 sort of the meat of the the plat
2:19:59 itself um
2:20:04 s87 wait did I oh this is C S8
2:20:08 87c is a a chart that responds to
2:20:16 the comments that
2:20:19 were Prov provided by the city as a
2:20:22 markup of the preliminary plat
2:20:25 application itself um so those were from
2:20:28 March 16th
2:20:34 um and then there
2:20:38 is uh a memo from transpo group that's
2:20:45 s87d um that resp responds to the
2:20:49 transportation related
2:20:52 questions um then s87 e is a
2:20:57 supplemental project
2:21:00 narrative um and S excuse me would you
2:21:05 what what was the supplemental project
2:21:07 narrative oh would have been s87
2:21:14 E I don't think we I have a copy of D I
2:21:18 see okay
2:21:21 [Applause]
2:21:26 do you guys have I think they're in here
2:21:29 okay okay thank you sorry excuse me okay
2:21:32 thank you so s87 e was the supplemental
2:21:36 project
2:21:37 narrative um and S
2:21:42 87f is another set of responses to City
2:21:47 comments so part of what happened was we
2:21:51 got comments as a markup of the plat
2:21:55 itself on in March of 2018 then we met
2:21:59 with the city on that on those comments
2:22:04 um at the end of March and then in
2:22:10 April they provided us with additional
2:22:14 comments that weren't entirely
2:22:16 consistent and in some case outright
2:22:19 conflicted with information that had
2:22:21 been provided either at our
2:22:24 pre-application or in the comments from
2:22:28 March so that's why there's two
2:22:30 different sets of comment
2:22:35 responses so why has it uh taken
2:22:38 until today um to be able for shelter to
2:22:43 be able to submit these materials for
2:22:46 plat um you mean from December 21st
2:22:50 first till today or what do you mean
2:22:53 well so so what was what was significant
2:22:55 about December the December 21st
2:22:57 communication versus everything else
2:22:59 that was going on for months in terms of
2:23:02 being able to submit these
2:23:03 materials well it wasn't until the
2:23:06 December communication that we had
2:23:08 enough information and clarification of
2:23:10 what which standards applied so we had
2:23:14 conflicting statements from the city
2:23:16 about what was the applicable standard
2:23:19 to apply what information was required
2:23:22 um and so the questions and um
2:23:28 clarifications that we had requested and
2:23:30 started requesting back in April well
2:23:33 March and April of 2018 it wasn't until
2:23:37 December of 2018 that we got enough
2:23:39 information to actually revise and and
2:23:43 resubmit um I think when Miss slowman
2:23:47 testified
2:23:48 she characterized it as you know us
2:23:51 asking an unusual number of questions or
2:23:55 somehow being unreasonable in the
2:23:57 information that we were requesting but
2:24:00 it was really information that without
2:24:03 which we couldn't revise and resubmit
2:24:07 our application appropriately and quite
2:24:10 frankly it was some of it was
2:24:12 information without which they would not
2:24:14 be able to review our application so the
2:24:17 best example of that would be our
2:24:20 request for all of the amm that would
2:24:23 apply to the road standards for our
2:24:28 project
2:24:30 um if there are modifications to the
2:24:33 standards we had no way of knowing that
2:24:36 unless the city provided those um and
2:24:39 that took I think that was cited in part
2:24:42 as one of the things that took so long
2:24:45 for them to
2:24:47 research and that was after they had
2:24:49 already complet completed one review of
2:24:51 our plat in March so I'm not sure what
2:24:53 they reviewed it
2:25:07 against do you recall were you um
2:25:10 present for Mr nen's testimony at our
2:25:13 October 24th Hearing in front of the
2:25:15 development commission yes do you recall
2:25:19 uh Mr n been testifying that he hadn't
2:25:21 had time to discuss with staff what
2:25:23 vested through the
2:25:27 yes and I thought that
2:25:30 was in direct conflict with everything I
2:25:35 mean with the the very premise of being
2:25:37 here because the argument that we have
2:25:41 been making and have made to the city
2:25:44 throughout is that the plat vested us
2:25:48 invested the sdp appliations um
2:25:52 so if if the city made the
2:25:56 determination that the sdp applications
2:25:59 were not vested to the de the
2:26:03 development standards enacted through
2:26:04 the development
2:26:06 agreement then they had to have already
2:26:09 determined that those sdp applications
2:26:12 didn't vest through the plat so they had
2:26:15 to have considered what did vest through
2:26:16 the plat um just by virtue of sending us
2:26:21 here um so that was one part of it the
2:26:25 other part of it
2:26:26 was the April fourth letter is their
2:26:30 response where they attempt to respond
2:26:32 to that and I think later in his
2:26:34 testimony he refers to the April 4th
2:26:38 letter as where he had answered the
2:26:40 question for us as to what vested
2:26:43 through the plat so I don't know how he
2:26:45 would have written the April 4th letter
2:26:47 explaining what was ed through the plat
2:26:51 and not having had the opportunity to
2:26:56 discuss with his staff and the City
2:26:59 attorney so I found his testimony very
2:27:01 inconsistent with what I knew to be
2:27:04 true do you also recall hearing uh
2:27:08 director Nan testify that um and I'm
2:27:11 summarizing that he made the decision to
2:27:13 send the your shelter's applications to
2:27:16 the development commission back in March
2:27:18 of 2018 yes
2:27:22 is that consistent um with your
2:27:24 understanding of what he was telling
2:27:26 shelter and the hearing
2:27:29 examiner no because we didn't like I
2:27:33 said we didn't ever hear anything of
2:27:36 development commission until August of
2:27:39 2018 and his declaration to the hearing
2:27:43 examiner on May 31st referenced that he
2:27:47 he believed it was the decision was
2:27:48 going to happen in June or July um if if
2:27:52 he believed that then and if he believed
2:27:56 that and he believed that the
2:27:59 applications were coming to development
2:28:01 commission then one would think he would
2:28:03 have taken some step to actually get the
2:28:06 applications to development Commission
2:28:08 in June or July um but he didn't do that
2:28:12 and looking back at the calendar for the
2:28:14 development commission there's a big gap
2:28:17 where you guys didn't have to meet on
2:28:18 anything in in most of June July and
2:28:22 August um so
2:28:25 I I find it hard to believe
2:28:29 that he could have both made that
2:28:31 decision
2:28:33 in March and
2:28:36 also at the end of May believed that he
2:28:39 was going to get the applications
2:28:40 through development commission and
2:28:43 comply with all the notice requirements
2:28:44 and staff reports and everything in in
2:28:46 June or July and you add to that the
2:28:49 fact that the the city attorneys were
2:28:51 not aware that that was his plan until
2:28:54 August when they informed our attorneys
2:28:56 that the position had
2:29:00 changed I think we're ready to take a
2:29:02 break
2:29:04 there let's come back in 10
2:29:19 minutes
2:41:15 okay I think we're back on the air so it
2:41:18 would be a good time to resume okay
2:41:20 thank
2:41:21 you um so we're going to start by
2:41:23 introducing a new exhibit
2:41:31 s88 put it up on the screen here as well
2:41:37 for thank
2:41:40 you excuse me
2:41:43 okay so um s88 is a demonstrative um
2:41:49 that we're going to use as we walk
2:41:50 through some other exhibits and
2:41:52 testimony from Tia um so starting with
2:41:56 this um T I wanted to talk with you a
2:41:59 little bit about some other projects
2:42:01 that are going on in the isqua highlands
2:42:04 um in the first one that I want to talk
2:42:06 about is this isqua Highlands Block 19
2:42:09 multif family
2:42:11 application um
2:42:17 there's we have the
2:42:21 um notice of application for that which
2:42:25 will add as exhibit
2:42:32 um if you could take a look at this and
2:42:34 just confirm that that's actually what
2:42:36 it is for the record please
2:43:00 yes this is a notice of application for
2:43:02 Block 19
2:43:04 multifamily
2:43:09 um it's a five-story apartment building
2:43:13 okay and then um S90 is the uh next
2:43:18 exhibit um and can you describe what
2:43:21 that document is
2:43:27 please um S90 is a notice of decision
2:43:32 and it's an administrative site
2:43:34 development permit for Block
2:43:36 19 it's dated October 13
2:43:39 2017 okay so can you walk us through the
2:43:43 um the timeline there then at
2:43:46 s88 um and just confirm with these
2:43:49 documents that the times on that
2:43:51 timeline are or dates on that timeline
2:43:55 accurate uh yes so if you look at the
2:43:59 notice of application which is
2:44:01 s89 um it notes that the application
2:44:05 date is April 21st
2:44:07 2017 the application complete date is
2:44:10 May 24th
2:44:12 2017 um and then the notice of decision
2:44:16 date is October 13th 2017
2:44:19 so you can see the time frames for
2:44:23 review were vastly different for this
2:44:26 application than for our
2:44:30 applications
2:44:34 um despite the fact that it looks like
2:44:37 these
2:44:38 applications came in and were processed
2:44:40 in a time when the city has said they
2:44:44 had shortage of staff so for this asdp
2:44:48 that the application came in within just
2:44:51 over a month it was deemed
2:44:54 complete and um it was approved less
2:45:00 than six months
2:45:02 later how long has shelter been waiting
2:45:04 on its
2:45:06 applications well it it varies um but we
2:45:11 we started the plat process with
2:45:15 conversations with the city back in
2:45:16 early 2017 so we're two years in on the
2:45:20 plat and um the sdp applications we
2:45:25 started
2:45:26 conversations and early meetings with
2:45:30 the city in September and October of
2:45:35 2017 so we're now in
2:45:40 2019 if you could turn to the next page
2:45:43 in s88 please
2:45:50 what's the city surf project what's your
2:45:53 understanding of what that is um so the
2:45:55 city surf project is a proposed
2:45:58 indoor um wave deep waterer
2:46:03 surfing uh facility um that also has I
2:46:08 think a restaurant space and maybe a
2:46:11 little bit of additional
2:46:13 retail so they have a site
2:46:15 administrative site development permit
2:46:20 and I think this next exhibit would be S
2:46:22 S90 so
2:46:26 [Applause]
2:46:29 um what what's the document at
2:46:44 s91 um so this is the notice of
2:46:47 application for the city surf project um
2:46:52 and it has an application date of May
2:46:56 2017 um a an application completeness
2:47:01 date of June 7th
2:47:04 2017 um and
2:47:07 then the exhibit shows that the
2:47:10 application was approved on October 10th
2:47:19 then s92 is going to be the next
2:47:22 document um what's the document at
2:47:37 uh part of an
2:47:40 email
2:47:41 chain between Lucy
2:47:45 slowman and John hos and it looks like
2:47:49 Keith niban is included on this as well
2:47:52 and Jennifer R Woods Valerie Porter and
2:47:55 Christopher Wright who are all City
2:47:57 Planning staff are copied on
2:48:04 it um what's this uh conversation about
2:48:08 encouraging encouraging him to pursue a
2:48:11 building
2:48:13 permit
2:48:16 um so miss slowman wrote to John
2:48:25 um and she says I don't know when you're
2:48:28 planning to submit your building permit
2:48:30 but I suggest you do it somewhat soon
2:48:32 the reason is that with the end of The
2:48:34 Da we are working to determine which
2:48:36 permits are vested under the da and
2:48:38 which aren't state law establishes
2:48:40 certain permits as vesting permits and
2:48:42 building permits if they are deemed
2:48:44 complete are one of them the land use
2:48:47 permit you received is not one
2:48:49 identified in state law staff has
2:48:51 proposed to council that land use
2:48:53 permits such as yours be vested but we
2:48:56 don't know what council's decision will
2:48:57 be the safest route to ensure your land
2:49:00 use permit is vested is to have a
2:49:02 complete building permit prior to the
2:49:05 new code going into effect and this was
2:49:08 on October 16th
2:49:10 2017 is what Miss slman was saying in
2:49:13 this email is that
2:49:15 accurate
2:49:16 um well I mean
2:49:20 the part about Council getting to decide
2:49:23 or staff getting to decide what whether
2:49:28 a permit remains vested or not is not
2:49:31 accurate it's not consistent with
2:49:33 Washington
2:49:35 law so what's this push for a building
2:49:37 permit for uh Mr Hoss's
2:49:42 application
2:49:45 um I don't know why they were wanting to
2:49:48 do that except for that I guess they
2:49:50 wanted to make sure that the council
2:49:52 couldn't undo undo vesting of his
2:49:58 project um and I guess Miss slowman felt
2:50:02 like building permit was the only thing
2:50:04 that was going
2:50:07 to accomplish that did Miss Lowman or
2:50:10 anyone else at the city reach out to
2:50:12 shelter to try to get shelter toest via
2:50:14 a building
2:50:15 permit no they never they never uh
2:50:20 reached out to us and suggested a
2:50:21 building permit or suggested any uh
2:50:26 extra means of ensuring that our vesting
2:50:28 was continued to be
2:50:32 recognized so let's look at uh new
2:50:34 exhibit
2:50:37 [Applause]
2:50:44 s93 what's the exhibit at s93
2:50:52 s93 is an email from Lucy slowman
2:50:57 to Crystal
2:51:00 Ki Chris W Christopher Wright uh and
2:51:05 John hos on November 14th
2:51:09 2017 regarding City serve building
2:51:12 permit presubmit
2:51:14 so she's saying there in this email um
2:51:19 they and I'm inferring that that's
2:51:21 referring back to City serf are racing
2:51:23 to submit a complete building permit so
2:51:25 that they will be vested under the IH
2:51:27 development agreement which likely means
2:51:29 by the end of this year
2:51:33 um what's your take on that
2:51:38 statement um well at this point in time
2:51:41 in November of
2:51:43 2017 staff was really pushing for
2:51:47 replacement regulations to be adopted on
2:51:49 December 4th of
2:51:52 2017 and so I think
2:51:56 um this is City staff trying
2:52:00 to help or encourage Mr hos
2:52:05 to get a building permit um application
2:52:10 complete application in so that they
2:52:13 could be sure that his project remained
2:52:17 vested
2:52:19 so I guess um I'm confused by this
2:52:22 because so he did he have is it your
2:52:24 understanding that he had a land use
2:52:25 permit issued yeah in October of 2017 he
2:52:30 had a an administrative site development
2:52:33 permit issued um for his project under
2:52:37 the development agreement where the
2:52:39 development standards enacted by the
2:52:41 development agreement are very specific
2:52:43 that implementing approvals vest and
2:52:46 site development permit is in
2:52:48 implementing approval so I don't know
2:52:52 why they were doing this
2:52:55 um but but they were advising Mr hos
2:52:59 that he should get a building permit
2:53:03 application in in order to maintain his
2:53:05 vested status which he clearly already
2:53:15 had okay let's turn now to S9 D4 a new
2:53:38 exhibit what's the document at
2:53:42 s94 uh s94 is a continuation of that uh
2:53:46 email chain that that we saw in
2:53:51 s93 um so at the
2:53:54 end of the November 14th 2017 email Miss
2:54:00 slman ask a question and she says what I
2:54:03 didn't know is what the threshold is for
2:54:06 pre submittal permit in other words does
2:54:08 John need one before he submits his BL
2:54:11 which BL is referencing the building
2:54:14 permit um Christopher Wright responds
2:54:17 and says yes yes they should do a pres
2:54:19 submittal meeting especially given the
2:54:21 vesting situation the direction I've
2:54:24 given is to request the meeting when
2:54:25 their plans and submittal are at about
2:54:29 90% um and then miss slowman responds to
2:54:34 Christopher and says in light of the
2:54:36 times can you give John in light of the
2:54:39 tight times can you give JN some
2:54:42 guidance on timing since you're
2:54:45 saying he needs to do this Lo
2:54:51 so again she she miss slman is
2:54:56 attempting to help Mr hos make sure that
2:55:02 the city continues to recognize his his
2:55:05 vested status and her opinion is that
2:55:09 this should be
2:55:10 accomplished by getting a complete
2:55:13 building permit application in
2:55:27 and all of this is at the same time that
2:55:29 we're experiencing the exact opposite
2:55:32 from City staff
2:55:36 um you know we're having our stdp and
2:55:40 asdp applications repeatedly rejected
2:55:43 for um completeness which would clearly
2:55:47 vest them under the development
2:55:49 agreement since sdps are implementing
2:55:54 approvals so let's take a look at uh
2:55:58 s95 you
2:56:05 exhibit what is
2:56:11 s95 s95 is an email from Miss slowman to
2:56:16 Mary Lou poly Emily Moon and Keith nen
2:56:21 um since this was in January of
2:56:25 2018 uh mayor Paulie had just recently
2:56:28 taken
2:56:30 office
2:56:34 um and Miss slman references that Keith
2:56:38 had driven around mayor Paulie and they
2:56:42 had talked about ISO Highlands blocks 19
2:56:44 and 20 but she wasn't sure that Keith
2:56:47 had the most most up-to-date information
2:56:49 so she was providing some additional
2:56:52 information
2:56:54 um with respect to block 20 City
2:56:57 surf uh she states they have an approved
2:57:01 asdp and have said they are ready to
2:57:03 submit for construction permits this
2:57:06 week the owner and I have exchanged
2:57:07 emails and plan to talk this morning I'm
2:57:09 hoping he can submit his building permit
2:57:12 ASAP since I've told him about the
2:57:15 imminent adoption of replacement
2:57:16 regulations
2:57:19 uh submitt of a building permit which is
2:57:22 deemed complete would vest him under
2:57:23 state
2:57:26 law so what was the date of this
2:57:29 email January 26th
2:57:33 2018 and um how was the city treating
2:57:36 shelter with respect to um or were they
2:57:40 how how was shelter being treated with
2:57:42 respect to this building permit
2:57:43 conversation that the city was having
2:57:44 with John hos were you having the same
2:57:46 conversation something different no no
2:57:49 one was reaching out to us trying to
2:57:51 help us vest under any
2:57:53 scenario um it was never suggested to us
2:57:56 that we submit a building permit
2:57:59 application
2:58:01 um I think that's in part because the
2:58:04 city staff was also of the opinion that
2:58:06 they would not accept a building permit
2:58:09 application from us because they
2:58:11 required site development permit
2:58:13 application as a precondition to
2:58:15 building permit application so they did
2:58:18 not believe that was an option to vest
2:58:20 us plus they didn't want to vest our
2:58:23 projects um around this same time so
2:58:26 we're this this email is on January 26th
2:58:30 2018 the email announcing the change in
2:58:33 the administrative administration's
2:58:36 recommendation um came out on February
2:58:39 2nd so just a few days after this so
2:58:42 this is
2:58:43 the behind the scenes what was happening
2:58:46 to ensure that everyone else who had
2:58:50 applications potentially in isqua
2:58:52 Highlands had a path to being recognized
2:58:55 as vested as soon as that was
2:58:59 accomplished
2:59:01 we the the city adopted the replacement
2:59:05 regulations and decided that we were the
2:59:07 only property owner with pending
2:59:09 applications that were not going to be
2:59:12 um acknowledged as vested to the
2:59:14 development standards enacted by the
2:59:15 development regulations
2:59:20 let's take a look at s96 this is a new
2:59:36 exhibit uh what is this document at
2:59:41 s96 um this was a followup to the s95
2:59:47 continuation of of that email chain um
2:59:50 so mayor paully had responded excellent
2:59:54 update thank you on Friday evening and
2:59:58 then on Saturday January
3:00:01 27th um Miss slowman wrote back and said
3:00:05 I am concerned John hos the developer of
3:00:08 City surf block 20 and I have exchanged
3:00:10 a number of emails this week I've called
3:00:13 him two to three times but he will not
3:00:14 return my call his emails have focused
3:00:17 on the city's right to not vest his land
3:00:20 use permit rather than when he will
3:00:23 submit a building permit or the status
3:00:26 of his project even though I
3:00:28 specifically ask those
3:00:31 questions
3:00:33 so at this time um had you talked with
3:00:36 John hos at all about his
3:00:40 situation um yes we had been in contact
3:00:43 with with Mr hos throughout the process
3:00:46 I don't remember exactly when we started
3:00:49 talking to him so do you know what this
3:00:51 um what Miss suman's referen when she
3:00:53 says his emails have focused on the
3:00:55 city's right to not vest his land use
3:00:57 permit um do you know what that's
3:01:00 referring to yes John was adamant that
3:01:03 the city could not divest his project
3:01:07 particularly where he had an issued um
3:01:10 site development permit which clearly
3:01:12 vested under the development agreement
3:01:15 um so he was telling the city that that
3:01:18 did not feel the need to spend resources
3:01:24 on developing B building permit
3:01:27 application materials when he had a
3:01:30 vested permit and he adamantly believed
3:01:34 um and I believe correctly that that his
3:01:38 permit was vested
3:01:40 and he didn't need to do that um you
3:01:44 know the
3:01:45 city he he told us that the city offered
3:01:48 to relax building permit submittal
3:01:50 requirements for him if he would just
3:01:52 get his building permit
3:02:05 in did the city make any sort of
3:02:08 reference to you or to um to your
3:02:10 knowledge to Mr hos about why they were
3:02:15 taking this position that um building
3:02:18 permit would or I'm sorry a land use
3:02:20 permit would be
3:02:25 divested um I'm not
3:02:35 sure do you recall that there was ever
3:02:38 um a a reason given for this this shift
3:02:43 um this concept of retroactive divesting
3:02:49 I mean I think it was always described
3:02:51 to us and as far as I know to Mr hos
3:02:55 that it was a change in administration
3:02:58 and that they the new mayor had changed
3:03:00 the recommendation and she didn't want
3:03:02 to acknowledge vesting for those
3:03:15 projects so let's look at a new exhibit
3:03:34 s97 what's the document at
3:03:41 s97 um it is an email
3:03:45 chain and if you go all the way to the
3:03:49 back of it it starts with the February
3:03:51 2nd email that I referenced um which was
3:03:55 when they announc the change in position
3:04:00 um with respect to
3:04:03 vesting
3:04:06 um so it says there are several items to
3:04:10 note number one the vesting language has
3:04:13 been changed to match state law rather
3:04:16 than the previous broader vesting
3:04:18 language as this is an Administration
3:04:21 decision the mayor has offered to
3:04:23 discuss this change with concerned
3:04:26 parties and so following up to that
3:04:29 email um it looks like John had
3:04:32 forwarded that on to some
3:04:35 people I think he
3:04:41 replied all where are we yeah so that
3:04:44 was actually not him he didn't forward
3:04:47 it to those people that was a reply all
3:04:49 those were the people that were
3:04:50 initially copied on it by the city clerk
3:04:54 um and so he responded back to the city
3:04:58 clerk saying there is a contention of
3:04:59 stakeholders on this list who have asps
3:05:01 and other permits that would like to
3:05:03 speak with the mayor regarding the
3:05:05 administrative decision to drop the
3:05:06 proposed vesting language how would you
3:05:09 suggest we facilitate the meeting and
3:05:11 should we do so as a group or on a
3:05:13 property by propy basis
3:05:18 so then there's another email here from
3:05:20 um Tisha geyser to Lucy
3:05:24 slowman
3:05:27 um what does that one
3:05:29 say um so she Tisha says hi Lucy I'm
3:05:35 hoping you can address John's
3:05:37 question
3:05:39 um and then Lucy responds back this is
3:05:42 up to Emily and Mary Lou Keith has
3:05:45 already sent it to Emily on Friday I
3:05:47 haven't seen seen anything about how
3:05:48 they want to handle it and
3:05:51 then on
3:05:53 Tuesday Tisha asks again for a update on
3:05:57 a response for
3:06:01 um and then Keith
3:06:04 responds saying that he thinks what he
3:06:07 remembered Emily saying was that MLP or
3:06:10 Mary ly should take the lead on this
3:06:13 with staff providing backup I think
3:06:15 Joanne could schedule a meeting with LP
3:06:18 and John Lucy or I should be included as
3:06:20 staff staff
3:06:24 support so at this time
3:06:29 um was the city attempting to to go
3:06:33 through this same process that's being
3:06:35 described with John hos um in terms of
3:06:37 meeting with the mayor and moving that
3:06:39 along for um for
3:06:42 shelter
3:06:46 um not not exactly so we received the
3:06:51 email um on the 2 and we also requested
3:06:57 a meeting with the mayor right away
3:07:00 um in response to this email indicating
3:07:03 that the decision to change the vesting
3:07:06 language was her
3:07:08 decision
3:07:10 um so
3:07:13 we got a meeting with with the mayor and
3:07:16 with Keith separately from this and I
3:07:18 believe
3:07:20 John um also got a meeting with the
3:07:22 mayor
3:07:24 and I don't know if it was Keith or Lucy
3:07:27 um or maybe
3:07:31 separately but our meeting was not ever
3:07:34 no discussion was ever about helping us
3:07:36 to vest it was the con the the opposite
3:07:54 and the other thing that's not in these
3:07:56 emails is that the city informed um Mr
3:08:01 hos that they were changing the
3:08:03 administration's recommendation before
3:08:07 they ever told us or before they ever
3:08:09 released it
3:08:12 publicly so let's look at another
3:08:14 exhibit s98
3:08:18 um can you describe what's at s98
3:08:28 please this
3:08:31 s98 um appears to be um a
3:08:37 meeting notice an electronic meeting
3:08:40 notice for a meeting that was organized
3:08:43 by Lucy slowman regarding the city surf
3:08:46 phased permits
3:08:48 um so this was on March 7th
3:09:03 um how did the city based on this uh
3:09:07 email or meeting invite um how did the
3:09:11 city feel about Mr hass's Project
3:09:18 hang on just a second let me read
3:09:20 through
3:09:26 this so I think what this is is the text
3:09:31 that is actually below the the header of
3:09:34 the meeting request is an email cut and
3:09:37 pasted that John hos sent to the city
3:09:42 following up on the meeting that they
3:09:45 had had in response to his request that
3:09:49 was in the previous email string that we
3:09:52 were looking at under s97 got it so he
3:09:57 describes that he's proceeding Full
3:10:00 Speed Ahead on two parallel courses and
3:10:02 wants to get feedback their feedback
3:10:05 first that that he was planning to
3:10:07 proceed with the Deferred building
3:10:09 submitt building permit submittal
3:10:11 package within the time frame we
3:10:13 discussed for the city surf facility and
3:10:16 second we're seeking a tempor B
3:10:17 structure permit for a popup
3:10:24 so so this the from this um is
3:10:29 it what's a do you understand what the
3:10:31 Deferred building permit the middle
3:10:33 package would be based on conversation
3:10:36 conversations with John um after he met
3:10:39 with the mayor and staff um my
3:10:43 understanding is he's referring to what
3:10:44 they had offered him which was to relax
3:10:47 the building permit submittal
3:10:49 requirements so let him do um some sort
3:10:53 of lesser than normal building permit
3:10:56 submitt in order to check the box of
3:10:59 building permit submitt and recognize
3:11:01 his project as vested so my
3:11:04 understanding is that's what
3:11:07 he's referring to in this text and the
3:11:11 city relaxed any standards in um the
3:11:14 processes that it was requiring shelter
3:11:16 to go through on it permit
3:11:18 applications no quite quite the opposite
3:11:21 um as you saw from our sdp insufficiency
3:11:32 letters so let's turn to exhibit s99
3:11:39 [Applause]
3:11:48 um and what's this document at
3:11:51 s99 s99 appears to be a draft of a
3:11:57 letter that the city ultimately sent to
3:11:59 John hos and City surf
3:12:03 um acknowledging that their asdp
3:12:10 application was in fact
3:12:12 vested to the development standards in
3:12:15 the development agreement as Mr hos had
3:12:18 been contending all along so what were
3:12:20 in this draft at least what were they
3:12:22 relying on in terms of um saying that he
3:12:25 would be vested what was the rationale
3:12:27 for that that they're
3:12:30 providing
3:12:33 [Music]
3:12:35 they they refer to the three-year
3:12:38 boilerplate effective term reference
3:12:42 that was in the asdp document
3:12:45 itself together with the underlying
3:12:47 provisions of the development
3:12:49 agreement as the the basis for
3:12:52 recognizing the
3:12:57 vesting then let's look at uh exhibit
3:13:05 S100 what's the document at
3:13:09 S100 S100 is the actual final letter
3:13:13 that was issued to Mr hos and City surf
3:13:17 regarding investing of
3:13:19 his uh
3:13:25 permit does the development agreement
3:13:27 make any distinction to based on your
3:13:30 understanding between uh complete
3:13:32 application and a permit like John hos
3:13:35 has no it
3:13:37 doesn't not for purposes of of vesting
3:13:41 does it do you know of anything in the
3:13:43 development agreement that uh says
3:13:45 something about a three-year term of
3:13:47 permit governing vesting no there's
3:13:49 nothing like that in the development
3:13:53 agreement uh going back to exhibit s88
3:13:57 that figure of the different timelines
3:14:00 um let's move on to the next page in
3:14:04 that so it should be the page for
3:14:05 Westridge North single family polygon
3:14:09 application okay
3:14:14 [Applause]
3:14:17 this will be um the next exhibit will be
3:14:23 s101 um and can you describe for us what
3:14:26 that exhibit
3:14:28 [Applause]
3:14:32 ISE um this
3:14:36 is the combined notice of application
3:14:40 that the city issued
3:14:43 for three projects the Westridge North
3:14:46 single family plat the High Street
3:14:49 collection preliminary plat oops I
3:14:52 skipped one and the Westridge Town Homes
3:14:55 North site development permit so when
3:14:58 was um the Westridge North single family
3:15:02 application when was that
3:15:03 submitted uh July 14th
3:15:07 2017 when did the city deem it complete
3:15:10 July 24th
3:15:12 2017 so what's how many days did that
3:15:15 take them 10 days
3:15:18 as per the development agreement that's
3:15:20 what appendix L of the development
3:15:21 agreement
3:15:23 requires so you mentioned a minute ago
3:15:25 that this was combined with the High
3:15:27 Street so there was so the notice of
3:15:29 application for High Street did it go
3:15:31 out at the same time as this one it did
3:15:33 these three applications that are part
3:15:35 of this um S11 they all the notices came
3:15:39 out together as one combined notice it's
3:15:42 posted that way in the city's system of
3:15:45 active permits as well
3:15:50 so then the next exhibit
3:15:53 [Applause]
3:16:03 s102 uh what's this document at
3:16:09 s102 is a briefing response memo for
3:16:15 Westridge North single family family
3:16:18 plat and it's dated April 10th
3:16:21 2018 okay and um what what is that
3:16:26 document what is that just kind of as a
3:16:28 summary what does it
3:16:32 um so the briefing response memo would
3:16:36 respond to
3:16:39 um public comments and questions and
3:16:42 issues that had come up with respect to
3:16:45 the plat application
3:16:48 and it's the staff staff response
3:16:50 although I think also the staff allows
3:16:53 the applicant to help with the response
3:17:28 okay so then this next exhibit would be
3:17:38 s103 and can you describe what the
3:17:41 document is at s103 please
3:17:49 s103 is a notice of decision for the
3:17:51 Westridge North Town Homes one site
3:17:55 development
3:17:56 permit okay and there's also um so then
3:18:02 S10 4
3:18:18 s104 is the notice of action by isqua
3:18:22 city council
3:18:25 um for the Westridge North preliminary
3:18:29 plat so it says that the date of action
3:18:32 was July 16th 2018 so that was for the
3:18:36 Westridge North preliminary plat so that
3:18:38 was the one that
3:18:45 application had come in about a year
3:18:48 previous on July 14th 2017 so is that
3:18:51 the same thing as the Westridge North
3:18:53 single family application that's shown
3:18:56 on um I think this be the third page of
3:18:58 this yes okay figure that we're looking
3:19:01 at so you said it's taken about a year
3:19:04 for or it took about a year for that
3:19:06 plat from plat application to approval
3:19:09 and I think it's worth noting that that
3:19:11 was a
3:19:12 particularly um complicated plat because
3:19:15 it involved D
3:19:21 closing um a street that is part of
3:19:26 isqua Highlands and is going to be
3:19:28 converted into a trail so it had a
3:19:33 particularly contentious issue attached
3:19:36 to it and was therefore much more
3:19:39 complex than our plat
3:19:41 application and more complex than an
3:19:43 average plat
3:19:46 and then uh let's flip then to the next
3:19:49 page in this uh figure so we're looking
3:19:52 at the Westridge Town Homes One South in
3:19:56 exhibit
3:19:58 [Music]
3:20:05 s88 and uh this would be exhibit
3:20:09 [Music]
3:20:13 s105 I'm going to hand to you here
3:20:17 um what's exhibit
3:20:20 s105 s105 is the notice of application
3:20:23 for the Westridge Town Homes
3:20:26 one um site development
3:20:30 permit and if you go back I think um a
3:20:33 minute ago I handed you an exhibit
3:20:36 for West Ridge North yeah let me
3:20:43 see that's a different one thank you um
3:20:49 well let's see so let's let's back up
3:20:51 and focus on that for a second so the
3:20:54 sdp application for that uh when was
3:20:58 that one
3:20:59 submitted um the application date shown
3:21:02 is February 11th
3:21:04 2016 um and when was it deemed complete
3:21:07 April 12th
3:21:12 2016 and um on this slide it shows uh
3:21:16 July 20 or July 19 of 2016 as the
3:21:20 application approved date is that
3:21:21 consistent with your memory of it yes I
3:21:26 don't remember the exact date but that
3:21:27 sounds generally consistent with my
3:21:32 understanding and so um if you look at
3:21:35 that exhibit uh 105 the notice of
3:21:38 application what did the notice of
3:21:40 application have to say about a um any
3:21:42 sort of plat related to the Westridge
3:21:44 Town Homes 1 South
3:21:47 um so it notes on the notice of
3:21:49 application that a short plat
3:21:52 subdivision is also required in order to
3:21:54 segregate the subject parcel for
3:21:56 development so this is significant
3:21:59 because it's the exact
3:22:01 situation that we have with our
3:22:05 applications um for site development
3:22:08 permits except for in our case the city
3:22:11 decided to tell us that until the plat
3:22:14 was done
3:22:17 the sdp
3:22:18 applications could not be accepted as
3:22:22 complete here clearly they were accepted
3:22:25 as complete prior to the subdivision
3:22:27 being done um and prior to the
3:22:31 preliminary subdivision being approved
3:22:34 um and significantly in this case they
3:22:37 actually approved the sdp prior to the
3:22:42 the plat so it's the extreme opposite of
3:22:45 the position they took just a year or so
3:22:48 later with respect to our
3:22:53 applications so if you flip to the next
3:22:55 page in
3:22:58 s88 um it's titled short plot of lot
3:23:09 a and uh this next exhibit would be s106
3:23:28 um what's the document at
3:23:31 s106 um s106 is the notice of decision
3:23:36 uh approving the short plot of lot a um
3:23:40 in isqua Highlands so this is the short
3:23:44 plot that's referred to in the the
3:23:46 Westridge Town Homes one um notice of
3:23:50 application so this was the the short
3:23:52 plat that created the lot that was then
3:23:55 the subject of that
3:23:57 sdp so when was that um
3:24:03 submitted
3:24:06 um looking let's see uh yeah the notice
3:24:10 of decision states that on February 2nd
3:24:14 2016 the property own owner submitted a
3:24:17 short plate short plat application to
3:24:20 subdivide lot a into three lots okay and
3:24:25 when was it approved and it was approved
3:24:28 on um January 6th
3:24:36 2017 so that
3:24:40 after the sdp approval which happened on
3:24:45 July 19th of
3:24:55 2016 okay so I'm um mindful that we have
3:24:58 about 5 minutes till
3:24:59 10 um and we can do one of two things um
3:25:05 and I know that lawyers give horrible
3:25:07 time estimates so I apologize in advance
3:25:10 but I think I think we can get through
3:25:13 the remainder of Miss heim's testimony
3:25:15 in another 15 minutes or so if we want
3:25:18 to stay past if not we're happy to pick
3:25:21 it up tomorrow and and we're here
3:25:22 anyways tomorrow and can do that
3:25:25 um wanted to throw it out
3:25:28 there I think process-wise if we can be
3:25:31 done in about 15 minutes that would
3:25:33 facilitate the uh cross examination
3:25:36 tomorrow starting first thing so that
3:25:38 that would make the most sense to me
3:25:40 council is that agreeable no objection
3:25:42 from the city Mr okay thank you we'll do
3:25:45 our best to move it along but um like I
3:25:47 said I think about 15
3:25:50 minutes okay so let's turn to the next
3:25:54 page in s88 it's uh Westridge block for
3:25:57 affordable
3:26:00 housing um
3:26:04 and this next exhibit would be s107
3:26:16 can you describe for us what s17 is
3:26:19 please s107 is a no of application for
3:26:23 Westridge block 4 affordable housing
3:26:27 asdp so when was the application date
3:26:30 for this April 27th
3:26:34 2018 uh is that before or after the
3:26:37 replacement regulations were adopted
3:26:40 that is after the replacement
3:26:42 regulations were adopted and effective
3:26:46 when was the application deemed complete
3:26:49 May 16th
3:26:51 2018 and what's the date of that notice
3:26:55 application uh July 17th
3:26:59 2018 what is that notice of application
3:27:02 have to say about the um standards that
3:27:05 are going to be used to evaluate that
3:27:07 Westridge block 4
3:27:15 project uh
3:27:19 um it says that the preliminary
3:27:24 determination of development regulations
3:27:26 that will be used for project mitigation
3:27:29 consistency is a qua Highlands
3:27:31 development
3:27:35 agreement so what do you understand that
3:27:37 to mean in terms of what regulations are
3:27:39 going to apply to that
3:27:41 application the city treated this
3:27:43 application as vested to the is
3:27:46 Highlands development agreement despite
3:27:48 the fact that it clearly came in after
3:27:52 the replacement regulations um were in
3:27:56 effect
3:27:59 and if it were processed under the
3:28:02 replacement regulations it would
3:28:06 um it would have come here to this
3:28:08 Commission because it's also on one of
3:28:11 the streets that are designated for
3:28:15 commission
3:28:19 approval so were you here when Mr niban
3:28:22 was um he provided some testimony on the
3:28:25 Westridge block 4 application and was
3:28:28 referencing um an affordable housing
3:28:31 development agreement as providing the
3:28:33 basis for why that vesting would occur
3:28:36 compared to shelter's Applications yes I
3:28:39 was here for that and um let's look at
3:28:41 exhibit
3:28:43 c33 please
3:28:56 can you describe what the document at
3:28:58 c33 is yes c33 is the developer sales
3:29:03 agreement for affordable units at
3:29:05 Westridge do you recall U Mr Nan
3:29:08 providing c33 as the the basis for his
3:29:13 um testimony that the Westridge block 4
3:29:17 application vested because of a
3:29:19 affordable housing agreement I do I
3:29:22 remember him pointing to this agreement
3:29:24 as the basis for vesting those projects
3:29:27 does this agreement say anything about
3:29:29 vesting it does not it's also not a
3:29:32 development
3:29:34 agreement what is it it's a developer
3:29:36 sales
3:29:38 agreement which really deals with the
3:29:42 affordable covenants that are attached
3:29:45 to the property
3:29:54 so then let's look at exhibit
3:30:05 please yes and um what's exhibit
3:30:10 S5 um it is also the developer sales
3:30:14 agreement
3:30:16 I think it has more
3:30:19 attached
3:30:29 here so this this exhibit is um they'll
3:30:32 represent is considerably longer than
3:30:34 the other one it's about 80 Pages or so
3:30:38 um and if you keep
3:30:42 flipping here we go
3:30:50 to so further along in there um what
3:30:55 else is included in this exhibit um
3:30:57 besides the developer sales
3:30:59 agreement um also a copy of a
3:31:05 development agreement with polygon
3:31:07 Northwest for the provision of
3:31:09 affordable housing so just to clarify do
3:31:12 you recall um director Nan giving this
3:31:16 document as a basis for his opinion or
3:31:18 was it just the developer sales
3:31:21 agreement um well this this document the
3:31:25 development agreement was also provided
3:31:27 by the city I think it's at
3:31:30 c34 um but director nian specifically
3:31:34 testified that the development agreement
3:31:38 with polygon um that is that we're
3:31:41 looking at in in
3:31:44 S5 but also that is
3:31:49 c34 um does not address vesting and is
3:31:52 not the basis for vesting those projects
3:31:55 instead he pointed to the developer
3:31:57 sales agreement and a provision that
3:32:01 addressed termination as the basis for
3:32:04 vesting which I found quite confusing
3:32:07 since it's both not a development
3:32:08 agreement and doesn't actually address
3:32:12 vesting but again this from from our
3:32:17 perspective is another example of the
3:32:21 city stretching and trying to find ways
3:32:24 to make sure that they could acknowledge
3:32:27 every other project in isqua Highlands
3:32:32 as vested other than our
3:32:38 projects so let's look at
3:32:44 um what's the document at
3:32:49 s108 um
3:32:52 this s108 is
3:32:55 the notice of decision for the
3:32:59 administrative site development permit
3:33:01 for Block 4 at isqua
3:33:05 Highlands and so um So based on on this
3:33:09 is it your understanding that block four
3:33:11 has been approved by the city is moving
3:33:13 forward yes
3:33:20 let's flip to uh the next page in s88 so
3:33:23 it says Westridge Town Homes North
3:33:25 polygon
3:33:28 application and this would be uh exhibit
3:33:32 s19 that we'll look at next
3:33:50 so s19 what's that
3:33:52 document s19 is the notice of
3:33:57 application for the Westridge Town Homes
3:34:01 North site development
3:34:02 permit when was that applied for October
3:34:09 2017 and um what's the when was it
3:34:12 determined complete October 30th 2017 10
3:34:15 days is after the application was
3:34:17 submitted did this one um was this one
3:34:20 of the ones that went out with shelters
3:34:22 notice of application for the um plat
3:34:26 yes it did go get noticed with our plat
3:34:28 um I think it's also significant that
3:34:31 it's uh to compare it to our projects
3:34:34 because it's a site development permit
3:34:36 applied for um in the same time frame as
3:34:41 our site development permits so this is
3:34:44 post buildout
3:34:46 period but still during the effective
3:34:48 term of the development
3:34:51 agreement
3:34:52 um and it's the same type of permit as
3:34:57 at least one of the permits that's
3:34:58 before you and what's your understanding
3:35:01 about what um development regulations
3:35:04 were being applied to this Westridge
3:35:06 Town Homes North
3:35:09 application um the city treated this as
3:35:12 vested to the development standards
3:35:14 enacted by the development agreement
3:35:21 and this next document would be
3:35:29 S110 what's the document at
3:35:37 [Music]
3:35:42 um this is a notice of decision for
3:35:45 Westridge Town Homes North site
3:35:48 development
3:35:50 permit and uh what's the what's the date
3:35:53 of that approval date May 10th
3:35:58 2018 what does it have to say about um
3:36:01 the development regulations that were
3:36:03 applied to that project
3:36:22 it says um whereas even though the isqua
3:36:26 highlands development agreement was
3:36:27 terminated on March 28th 2018 and
3:36:30 replacement regulations IMC
3:36:34 18.1 19B have been enacted this
3:36:37 application was vested to the now
3:36:39 terminated development agreement and was
3:36:41 reviewed under those regulations
3:36:50 why was this application reviewed under
3:36:52 the development regulations adopted
3:36:55 through the development agreement and
3:36:56 vested to those but shelters
3:36:59 wasn't according to the city well I mean
3:37:03 they both should have been processed
3:37:05 under the and and analyzed under the
3:37:08 development standards under the
3:37:09 development agreement um the only
3:37:13 explanations that I've heard were were
3:37:15 that they vested through a development
3:37:19 agreement um and then as you've heard
3:37:22 from Mr nien the only development
3:37:25 agreement that the city has entered into
3:37:29 with um with polygon with respect to
3:37:34 this property is that affordable housing
3:37:37 development agreement which he testified
3:37:39 does not address vesting and we agree it
3:37:41 does not address vesting
3:37:44 so I don't know how they justify
3:37:47 treating this one one way and treating
3:37:49 ours a different way
3:37:52 um but they both they both were vested
3:37:56 to the development to the development
3:37:58 standards enacted by the development
3:37:59 agreement per the terms of that
3:38:02 development agreement
3:38:04 which are what applied to both
3:38:07 applications does this document indicate
3:38:10 whether appendix L and the the
3:38:12 requirements in appendix l in terms of
3:38:14 the process were applied to this
3:38:15 application as
3:38:17 well um it does reference uh appendix L
3:38:21 processing of land use and construction
3:38:25 permits and it references that the
3:38:27 hearings were held in accordance with
3:38:30 appendix l so they followed appendix L
3:38:32 for this
3:38:43 application and again when did did the
3:38:46 when did the buildout period end can you
3:38:49 remind us of that the buildout period
3:38:51 ended in September of 2017 so before
3:38:54 this site development permit application
3:38:57 was deemed
3:39:09 complete so um
3:39:18 with all these different applications um
3:39:21 what what's your understanding of the
3:39:23 procedures and the timelines that the
3:39:25 city has been applying to them and I'm
3:39:27 when I say all these different
3:39:28 applications I'm talking about the the
3:39:31 ones other than shelters projects that
3:39:32 we just went
3:39:34 through well for all of these projects
3:39:38 that we've been discussing the city is
3:39:41 applying the development standards and
3:39:44 the process it that are set forth in the
3:39:47 development agreement so
3:39:51 um there they're treating it as fully
3:39:54 vested to um development standards and
3:39:57 process if they didn't if they somehow
3:40:02 um they've told us from time to time
3:40:05 that we wouldn't vest to process even if
3:40:07 we were vested um and if that were the
3:40:10 case if they were treating these other
3:40:11 applications that way then you would
3:40:14 have seen these these other applications
3:40:16 come before you because the
3:40:19 asdp um for the the uh block four
3:40:24 affordable housing fronts on Ellis and
3:40:27 per the replacement regulations if
3:40:29 that's what was needing to be followed
3:40:30 it would have come here to this
3:40:32 commission and it didn't um instead
3:40:36 you've seen all of these
3:40:37 applications either get an
3:40:39 administrative approval written by the
3:40:41 administrative staff or they went to UVC
3:40:45 which would be following the procedure
3:40:48 in the development
3:40:50 agreement so I guess then to to wrap up
3:40:55 um to clarify because we've heard a lot
3:40:57 of testimony about the vested rights
3:41:00 issue
3:41:02 um is there any dispute that shelter's
3:41:05 applications don't comply with the
3:41:07 replacement
3:41:08 regulations no I think you heard that
3:41:10 from us on day one and we will continue
3:41:13 to tell you that
3:41:16 these applications do not comply with
3:41:19 the um replacement
3:41:22 regulations because they were designed
3:41:24 and submitted in accordance with the
3:41:27 development standards enacted by the
3:41:28 development agreement so what's your
3:41:31 understanding of why we're here
3:41:41 today we are just trying to move forward
3:41:45 with our applications they are vested
3:41:47 under the develop to the development
3:41:50 standards that were enacted by the
3:41:52 development agreement um we've been
3:41:56 asking the city
3:41:59 since March of 2018 when we delivered
3:42:04 the the notice of default to comply with
3:42:06 the development agreement and process
3:42:08 our applications well we were asking
3:42:10 actually previous to that but but um at
3:42:14 that point it
3:42:16 became
3:42:19 um more involved from a legal
3:42:23 perspective and we've been simply trying
3:42:25 to get to a decision on vesting that we
3:42:28 can appeal to a body with jurisdiction
3:42:31 and while we really appreciate you all
3:42:34 taking the time to sit and listen to all
3:42:37 of all of this testimony um we continue
3:42:42 to believe as we stated at the very
3:42:43 beginning of this hearing that it is
3:42:46 unnecessary and
3:42:48 inappropriate and the city should have
3:42:51 just issued a decision that was
3:42:53 appealable and let the vesting issue get
3:42:55 decided by a body with
3:43:02 jurisdiction thank you I think that
3:43:05 concludes for this evening and for Miss
3:43:07 heim's testimony um and to a point that
3:43:10 she just made we do thank you very much
3:43:12 for staying over for your time we really
3:43:13 appreciate that um um so with that we're
3:43:17 we're closed for Miss Heim for now um I
3:43:19 guess tomorrow evening would be the
3:43:21 opportunity for the city to pick up on
3:43:23 Cross
3:43:24 examination
3:43:26 yes okay and um Zach do you have a an
3:43:31 idea of how long that will take whether
3:43:33 it would
3:43:34 be the whole time tomorrow evening or
3:43:36 something shorter than that probably
3:43:39 somewhat shorter than that I can't uh
3:43:42 unfortunately estimate with too much
3:43:43 specific I need to go back and review my
3:43:45 notes for this evening's proceeding but
3:43:47 I would anticipate that it will not last
3:43:49 the full three and a half hours okay
3:43:51 thank you very
3:43:55 much so we've reached uh a little past
3:43:58 the agreed upon time when we are going
3:43:59 to adjourn the public hearings on
3:44:01 tonight's agenda will be continued to a
3:44:03 special meeting of the commission on
3:44:05 March 6th tomorrow in the church in the
3:44:08 council chambers at 6:30 the meeting is
3:44:10 now adjourned thank you

Attendance

Council / Members (16)
Administration/Staff: Richard Sowa
Keith Niven
Econ. & Dev. Srcs. Dir. Mel Morgan
Lucy Sloman
Land Development Mgr. Michael Brennan Kevin Price Others Present: Richard Sanford Jeffrey Dunbar
City Attorney’s Office Commissioners Not Present (Excused): Tia Heim
Shelter Holdings Randolph Harrison Zachary Lell
City Attorney’s Office Jasmina Mihova Ray Liaw
Van Ness Feldman
LLP Mark Rigos
Alternate Jackie Quarré
Foster Pepper PLLC Ryan Roeter
Alternate Patrick Schneider
Foster Pepper PLLC Nischitha Venkatesh
Alternate [Gary Young
Shelter Holdings, audience]