AN ORDINANCE related to land use and zoning amending Sections 23.49.008, 23.49.015, and 23.86.006 of the Seattle Municipal Code; allowing an increase in building height in portions of the Downtown Mixed Commercial 340/290-400 zone on certain conditions; and making technical revisions.

WHEREAS, Policy DT-UDP5 of the Downtown Urban Center Plan in the Neighborhood Planning Element of the Seattle Comprehensive Plan specifies that increased heights beyond the limits specified for downtown zones may be considered when the public purpose served by the additional height justifies the higher buildings and is consistent with other height policies; and

WHEREAS, on certain full-block sites Downtown that are adjacent to a zone allowing much greater height, the impacts of height greater than the limits of the zone may be mitigated when a substantial portion of the block is maintained as open space and development is limited to a single tower, sited on the block so as to limit such impacts; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section Subsections A and B of Section 23.49.008 of the Seattle Municipal Code, which Section was last amended by Ordinance 122054, are amended as follows:

23.49.008 Structure height.

The following provisions regulating structure height apply to all property in downtown zones except the DH1, PSM, IDM, and IDR zones.

A. Base and Maximum Height Limits.

1. Except as otherwise provided in this Section, m Maximum structure heights for downtown zones, except PMM, are fifty-five (55) feet, sixty-five (65) feet, eighty-five (85) feet, one hundred twenty-five (125) feet, one hundred fifty (150) feet, one hundred sixty (160) feet, two hundred forty (240) feet, three hundred forty (340) feet, four hundred (400) feet, five hundred (500) feet, and unlimited, as designated on the Official Land Use Map, Chapter 23.32.

In certain zones, as specified in this section, the maximum structure height may be allowed only for particular uses or only on specified conditions, or both.

2. Except in the PMM zone, the base height limit for a structure is the lowest of the maximum structure height or the lowest other height limit, if any, that applies pursuant to the provisions of this title based upon the uses in the structure, before giving effect to any bonus for which the structure qualifies under this chapter and to any special exceptions or departures authorized under this chapter. In the PMM zone the base height limit is the maximum height permitted pursuant to urban renewal covenants.

3. In zones listed below in this subsection A3 there is a base height limit for portions of a structure containing nonresidential and live-work uses, which is shown as the first figure after the zone designation (except that there is no such limit in DOC1), and a base height limit that applies to portions of a structure in residential use, shown as the figure following the "/". The third figure shown is the highest possible applicable height limit for a structure that uses the bonus available under 23.49.015 and has no nonresidential or live-work use above the first height limit shown for that zone:

DOC1 Unlimited/450 - Unlimited DOC2 500/300-500 DMC 340/290-400 DMC 240/290-400.

4. A structure in a DMC 340/290-400 zone on a lot comprising a full block that abuts a DOC1 zone along at least one street frontage may gain additional structure height of thirty (30) percent above the maximum residential height limit if the structure uses the bonus available under 23.49.015, or thirty-five (35) percent above 340 feet if that bonus is not used, in either case on the following conditions:

a. Only one tower is permitted on the lot;

b. Any additional floor area above the maximum height limit for nonresidential or live-work use, as increased under this subsection A4, is occupied by residential use;

c. The average residential gross floor area and maximum residential floor area of any story in the portion of the tower permitted above the base residential height limit does not exceed the limits prescribed in Section 23.49.058D1;

d. Any residential floor area allowed above the base residential height limit under this provision is gained through voluntary agreements to provide low-income or moderate-income housing according to the provisions of 23.49.015;

e. At least thirty-five (35) percent of the lot area, or a minimum of 25,000 square feet, whichever is greater, is in open space use substantially at street level meeting the standards, and subject to the allowances for coverage, in this subsection e.

i. The location and configuration of the space shall enhance solar exposure, allow easy access to entrances to the tower serving all tenants and occupants from streets abutting the open space, and allow convenient pedestrian circulation through all portions of the open space. The open space shall be entirely contiguous and physically accessible. To offset the impact of the taller structure allowed, the open space must have frontage at grade abutting sidewalks, and be visible from sidewalks, on at least two streets. The elevation of the space may vary, especially on sloping lots where terracing the space facilitates connections to abutting streets, provided that grade changes are gradual and do not significantly disrupt the continuity of the space, and no part of the open space is significantly above the grade of the nearest abutting street. The Director may allow greater grade changes, as necessary, to facilitate access to transit tunnel stations.

ii. Up to twenty (20) percent of the area used to satisfy the open space condition to allowing additional height may be covered by the following features: permanent, freestanding structures, such as retail kiosks, pavilions, or pedestrian shelters; structural overhangs; overhead arcades or other forms of overhead weather protection; and any other features approved by the Director that contribute to pedestrian comfort and active use of the space. The following features within the open space area may count as open space and are not subject to the percentage coverage limit: temporary kiosks and pavilions, public art, permanent seating that is not reserved for any commercial use, exterior stairs and mechanical assists that provide access to public areas and are available for public use, and any similar features approved by the Director.

f. Open space used to satisfy the condition to allowing additional height in this section is not eligible for a bonus under Section 23.49.013.

g. Open space used to satisfy the condition to allowing additional height in this section may qualify as common recreation area to the extent permitted by SMC subsection 23.49.011B and may be used to satisfy open space requirements in SMC subsection 23.49.016C1 if it satisfies the standards of that subsection.

h. No increase in height shall be granted to any proposed development that would result in significant alteration to any designated feature of a landmark structure, unless a Certificate of Approval for the alteration is granted by the Landmarks Preservation Board.

45. In the DRC zone, the base height limit is eighty-five (85) feet, except that, subject to the conditions in subsection A56 of this section:

a. The base height limit is one hundred fifty (150) feet when if any of the following conditions is satisfied:

i. When all portions of a structure above eighty-five (85) feet contain only residential use; or

ii. When at least twenty-five (25) percent of the gross floor area of all structures on a lot is in residential use; or

iii. When a minimum of 1.5 FAR of retail sales and service or entertainment uses, or any combination thereof, is provided on the lot.

b. For residential floor area created by infill of a light well on a Landmark structure, the base height limit is the lesser of one hundred fifty (150) feet or the highest level at which the light well is enclosed by the full length of walls of the structure on at least three (3) sides. For the purpose of this subsection a light well is defined as an inward modulation on a nonstreet facing facade that is enclosed on at least three (3) sides by walls of the same structure, and infill is defined as an addition to that structure within the light well.

56. Restrictions on Demolition and Alteration of Existing Structures.

a. Any structure in a DRC zone that would exceed the eighty-five (85) foot base height limit shall incorporate the existing exterior street front facade(s) of each of the structures listed below, if any, located on the lot of that project. The City Council finds that these structures are significant to the architecture, history and character of downtown. The Director may permit changes to the exterior facade(s) to the extent that significant features are preserved and the visual integrity of the design is maintained. The degree of exterior preservation required will vary, depending upon the nature of the project and the characteristics of the affected structure(s).

b. The Director shall evaluate whether the manner in which the facade is proposed to be preserved meets the intent to preserve the architecture, character and history of the Retail Core. If a structure on the lot is a Landmark structure, approval by the Landmarks Preservation Board for any proposed modifications to controlled features is required prior to a decision by the Director to allow or condition additional height for the project. The Landmarks Preservation Board's decision shall be incorporated into the Director's decision. Inclusion of a structure on the list below is solely for the purpose of conditioning additional height under this subsection, and shall not be interpreted in any way to prejudge the structure's merit as a Landmark:

Sixth and Pine Building 523 Pine Street Decatur 1513-6th Avenue Coliseum Theater 5th and Pike Seaboard Building 1506 Westlake Avenue Fourth and Pike Building 1424-4th Avenue Pacific First Federal Savings 1400-4th Avenue Joshua Green Building 1425-4th Avenue Equitable Building 1415-4th Avenue Mann Building 1411-3rd Avenue Olympic Savings Tower 217 Pine Street Fischer Studio Building 1519-3rd Avenue Bon Marche (Macy's) 3rd and Pine Melbourne House 1511 3rd Avenue Former Woolworth's Building 1512 3rd Avenue

c. The restrictions in this subsection 5 6 are in addition to, and not in substitution for, the requirements of the Landmarks Ordinance, SMC Chapter 25.12.

67. The applicable height limit for a structure is the base height limit plus any height allowed as a bonus under this chapter and any additional height allowed by special exception or departure, or by subsection A4 of this section. The height of a structure shall not exceed the applicable height limit, except as provided in subsections B, C and D of this section.

78. The height of rooftop features, as provided in subsection D, is allowed to exceed the applicable height limit.

B. Structures located in DMC 240/290-400 or DMC 340/290-400 zones may exceed the maximum height limit for residential use, or if applicable the maximum height limit for residential use as increased under the provisions of subsection A4 of this section, by ten (10) percent of that limit, as so increased if applicable, if:

1. the facades of the portion of the structure above the limit do not enclose an area greater than nine thousand (9,000) square feet, and

2. the enclosed space is occupied only by those uses or features otherwise permitted in this Section as an exception above the height limit.

This exception shall not be combined with any other height exception for screening or rooftop features to gain additional height.

*** Section Subsection B of Section 23.49.015 of the Seattle Municipal Code, which Section was last amended by Ordinance 122235, is amended as follows:

23.49.015 Bonus residential floor area for voluntary agreements for low-income housing and moderate-income housing.

***

B. Voluntary Agreements for Housing.

1. The voluntary agreement shall commit the applicant to provide or contribute to low-income housing or moderate-income housing, or both, in an amount as set forth in this subsection B. The quantities in this subsection are based on findings of an analysis that quantifies the linkages between new market-rate units in highrise residential structures in DOC1, DOC2, and DMC zones and the demand that residents of such units generate for low-income housing and moderate-income housing. The amount of such housing and income levels served, and the amount of any cash payment, shall be determined as follows:

a. For the performance option, the applicant shall provide, as low-income housing or moderate-income housing, net rentable floor area equal to eleven (11) percent of the net residential floor area sought as bonus development, computed by multiplying the following sum by an efficiency factor of eighty (80) percent: (i) the total square footage of gross residential floor area to be developed on the lot above the base height limit for residential use under SMC Section 23.49.008, plus (ii) the excess, if any, in each tower to be developed on the lot, of (X) the total number of square feet of gross residential floor area between the height of eighty-five (85) feet and such base height limit, over (Y) the product of the "average residential gross floor area limit of stories above 85 feet if height does not exceed the base height limit for residential use" as provided in Chart 23.49.058D1, column 2, multiplied by the number of stories with residential use in such tower above eighty-five (85) feet and below such base height limit. All low-income housing or moderate-income housing provided under the performance option shall be on the lot where the bonus development is used or an adjacent lot. The adjacent lot must be within the block where the bonus development is used and either abut the lot where bonus development is used, or be separated only by public right-of-way. All rental housing provided under the performance option shall be low-income housing.

b. For the payment option, the applicant shall pay the lesser of the following:

(1) an amount that equals the approximate cost of developing the same number and quality of housing units that would be developed under the performance option, as determined by the Director; or

(2) (i) in DMC zones, Ten Dollars ($10) per square foot of net residential floor area sought as bonus development between the height of eighty-five (85) feet and the base height limit for residential use under Section 23.49.008, Fifteen Dollars ($15) per square foot of the net residential floor area of the first four (4) floors stories above the base height limit for residential use, Twenty Dollars ($20) per square foot of net residential floor area of the next three (3) floors stories, and Twenty-five Dollars ($25) per square foot of net residential floor area of the higher stories remaining floors up to the maximum residential height limit, not to exceed an average of Eighteen Dollars and Ninety-four Cents ($18.94) per square foot of net residential floor area sought as bonus development; and

(ii) in DOC1 and DOC2 zones, Eighteen Dollars and Ninety-four Cents ($18.94) per square foot of net residential floor area sought as bonus development above the base height limit for residential use under Section 23.49.008. Net residential floor area shall be computed by multiplying the total gross floor area sought as bonus development by an efficiency factor of eighty (80) percent. The full amount must be paid to the City in cash, except that if the City shall approve by ordinance the acceptance of specific real property in lieu of all or part of the cash payment, the Housing Director may accept such real property.

2. Each low-income housing unit provided as a condition to the bonus allowed under this section shall serve only households with incomes at or below eighty (80) percent of median income at the time of their initial occupancy. Each moderate-income housing unit provided as a condition to the bonus allowed under this section shall serve only as owner-occupied housing for households with incomes no higher than median income at the time of their initial occupancy. For rental housing, housing costs, including rent and basic utilities, shall not exceed thirty (30) percent of eighty (80) percent of median income, adjusted for the average size of family expected to occupy the unit based on the number of bedrooms, all as determined by the Housing Director, for a minimum period of fifty (50) years. For owner-occupied housing, the initial sale price shall not exceed an amount determined by the Housing Director to be consistent with affordable housing for a moderate-income household with the average family size expected to occupy the unit based on the number of bedrooms, and the units shall be subject to recorded instruments satisfactory to the Housing Director providing for sales prices on any resale consistent with affordability on the same basis. The Housing Director may promulgate rules specifying the method of determining affordability, including eligible monthly housing costs. The Housing Director may also promulgate rules for determining whether units satisfy the requirements of this section and any requirements relating to down-payment amount, design, quality, maintenance and condition of the low-income housing or moderateincome housing.

3. For purposes of this section, housing may be considered to be provided by the applicant seeking bonus development under the performance option if the housing satisfies all of the following conditions:

(i) It is committed to serve an eligible income group, and for a time period, referred to in this section pursuant to an agreement between the housing owner and the City.

(ii) The agreement required by subsection (i) is executed and recorded prior to the issuance of the master use permit to establish the use for the project using the bonus development, but except when subsection (iii)(B) below applies, no earlier than one (1) year prior to issuance of that master use permit.

(iii) Either (A) the Certificate of Occupancy for the new low-income housing or moderate income housing, or both, must be issued within three (3) years of the date the Certificate of Occupancy is issued for the project using the bonus development, unless the Housing Director approves an extension based on delays that the applicant or housing developer could not reasonably have avoided, or (B) only in the case of low-income housing on a lot adjacent to the project using bonus development, which housing is subject to a regulatory agreement related to long-term City financing of low-income housing and was developed under a master use permit issued pursuant to a decision that considered the housing together with a project then proposed on that adjacent site, a final Certificate of Occupancy for the low-income housing was issued within five (5) years of the building permit issuance for the project proposed for bonus development on the adjacent lot.

(iv) If the low-income housing or moderate-income housing is not owned by the applicant, then the applicant made a financial contribution to the low-income housing or moderate-income housing, or promised such contribution and has provided to the City an irrevocable, unconditional letter of credit to ensure its payment, in form and content satisfactory to the Housing Director, in either case in an amount determined by the Housing Director to be, when reduced by the value of any expected benefits to be received for such contribution other than the bonus development, approximately equal to the cost of providing units within the project using the bonus development, and the owner of the low-income housing or moderateincome housing has entered into a linkage agreement with the applicant pursuant to which only the applicant has the right to claim such housing for purposes of bonus development under this section or any other bonus under this title.

4. Any applicant seeking to qualify for bonus floor area based on development of new housing shall provide to the City, prior to the date when a contribution would be due for the cash option under subsection C of this section, an irrevocable bank letter of credit or other sufficient security approved by the Director of the Office of Housing, and a related voluntary agreement, so that at the end of the three (3) year period specified in subsection B3 of this section, if the housing does not qualify or is not provided in a sufficient amount to satisfy the terms of this section, the City shall receive (i) a cash contribution for housing in the amount determined pursuant to this section after credit for any qualifying housing then provided, plus (ii) an amount equal to interest on such contribution, at the rate equal to the prime rate quoted from time to time by Bank of America, or its successor, plus three (3) percent per annum, from the date of issuance of the first building permit for the project using the bonus. If and when the City becomes entitled to realize on any such security, the Director of the Office of Housing shall take appropriate steps to do so, and the amounts realized, net of any costs to the City, shall be used in the same manner as cash contributions for housing made under this section. In the case of any project proposing to use bonus development for which no building permit is required, references to the building permit in this subsection shall mean the master use permit allowing establishment or expansion of the use for which bonus development is sought.

5. Nothing in this chapter shall be construed to confer on any owner or developer of housing, any party to a linkage agreement, or any assignee, any development rights or property interests. Because the availability and terms of allowance of bonus development depend upon the regulations in effect at the relevant time for the project proposing to use such bonus development, pursuant to SMC Section 23.76.026, any approvals or agreements by the Director of the Office of Housing regarding the eligibility of actual or proposed housing as to satisfy conditions of a bonus, and any approval of a linkage agreement and/or assignment, do not grant any vested rights, nor guarantee that any bonus development will be permitted based on such housing.

6. The Director of the Office of Housing is authorized to accept and execute agreements and instruments to implement this section. For the performance option, the voluntary agreement by the applicant or, if the applicant is not the housing owner, then a recorded agreement of the housing owner acceptable to the Housing Director, shall provide for an initial monitoring fee payable to the City of Five Hundred Dollars ($500) per unit of low-income housing or moderate-income housing provided, and in the case of rental housing, an annual monitoring fee payable to the City of Sixty-five Dollars ($65) for each such unit. For rental housing, such agreement also shall require the housing owner to submit to the City annual reports with such information as the Housing Director shall require for monitoring purposes. In the case of housing for owner-occupancy, the recorded resale restrictions also shall include a provision requiring payment to the City, on any sale or other transfer, of a fee of Five Hundred Dollars ($500) for the review and processing of transfer documents to determine compliance with income and affordability restrictions.

7. If the Housing Director shall certify to the Director that the Housing Director has accepted and there have been recorded one or more agreements or instruments satisfactory to the Housing Director providing for occupancy and affordability restrictions on housing provided for purposes of the performance option under this section, and that either all affordable housing has been completed or the applicant has provided the City with an irrevocable, unconditional letter of credit satisfactory to the Housing Director in the amount of the contribution to the affordable housing approved by the Housing Director, if applicable, then any failure of such housing to satisfy the requirements of this subsection B shall not affect the right to maintain or occupy the bonus development. Unless and until the Housing Director shall so certify, it shall be a continuing permit condition, whether or not expressly stated, for each project obtaining bonus floor area based on the provision of housing under this subsection, that the low-income or moderate-income housing units, or both, as applicable, shall continue to satisfy the requirements of this subsection throughout the term specified in this section and that such compliance shall be documented to the satisfaction of the Director of the Office of Housing. The Director of the Office of Housing may provide by rule for circumstances in which low-income or moderate-income housing units, or both, as applicable, may be replaced if lost due to casualty or other causes, and for terms and conditions upon which a cash contribution may be made in lieu of continuing to provide low-income housing or moderateincome housing, or both, under the terms of this subsection.

8. Housing units produced with voluntary contributions made under this section, shall include a range of unit sizes, including units suitable for families with children. Housing units provided to qualify for bonus development shall comply with the following: (i) they shall be provided in a range of sizes comparable to those available to other residents; (ii) to the extent practicable, the number of bedrooms in low-income units and moderateincome units must be in the same proportion as the number of bedrooms in units within the entire building; (iii) the low-income units and moderate-income units shall generally be distributed throughout the building, except that they may be provided in an adjacent building; and (iv) the low-income units and moderate-income units shall have substantially the same functionality as the other units in the building or buildings. The Housing Director is authorized to prescribe by rule standards and procedures for determining compliance with the requirements of this subsection 8. The Housing Director is further authorized to adopt policies for distribution of unit sizes in housing developments funded by contributions received under this section.

9. References in this subsection B to a Certificate of Occupancy for a project mean the first Certificate of Occupancy issued by the City for the project, whether temporary or permanent.

***

Section 3. Subsection E of Section 23.86.006 of the Seattle Municipal Code, which Section was last amended by Ordinance 121476, is amended as follows:

23.86.006 Structure height.

***

E. Height Measurement Techniques in Downtown Zones.

1. Determine the major street property line, which shall be the lot's longest street property line. When the lot has two (2) or more street lot lines of equal length, the applicant shall choose the major street property line.

2. Determine the slope of the lot along the entire length of the major street property line.

3. The maximum height shall be measured as follows:

a. When the slope of the major street property line is less than or equal to seven and one-half percent (71/2%), the elevation of maximum height shall be determined by adding the maximum permitted height to the existing grade elevation at the midpoint of the major street property line. On a through lot, the elevation of maximum height shall apply only to the half of the lot nearest the major street property line. On the other half of a through lot, the elevation of maximum height shall be determined by the above method using the street lot line opposite and parallel to the major street property line as depicted in Exhibit 23.86.006 B.

b. When the slope of the major street property line exceeds seven and one-half percent (71/2%), the major street property line shall be divided into four (4) or fewer equal segments no longer than one hundred twenty feet (120') in length. The elevation of maximum height shall be determined by adding the maximum permitted height to the existing grade elevation at the midpoint of each segment. On a through lot, the elevation of maximum height shall apply only to the half of the lot nearest the major street property line. On the other half of a through lot, the elevation of maximum height shall be determined by the above method using the street lot line opposite and parallel to the major street property line, as depicted in Exhibit 23.86.006 C.

c. For lots with more than one (1) street frontage, where there is no street property line whichthat is essentially parallel to the major street property line, when a measurement has been made for the portion of the block containing the major street property line, the next measurement shall be taken from the longest remaining street lot line.

4. No parts of the structure, other than those specifically exempted or excepted under the provisions of the zone, shall extend beyond the elevation of maximum height.

5. Underground portions of structures are not included in height calculations. The height of structures shall be calculated from the point at which the sides meet the surface of the ground.

Section 4. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2007, and signed by me in open session in authentication of its passage this _____ day of __________, 2007. _________________________________ President __________of the City Council

Approved by me this ____ day of _________, 2007. _________________________________ Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2007. ____________________________________ City Clerk

November 28, 2007 Version #14 t