2024/01/17 Council Agenda Packet

City Council Agenda Item Cover Sheet Project title: Ordinance Amending the Development Agreement for the Everett Riverfront District Properties Related to the Landfill Site, Amending Section 1 of Ordinance No. 3121 -09, as previously amended Council Bill # interoffice use CB 2310-59 Project: Adopt ordinance regarding Riverfront Project Partner/Supplier: Shelter Holdings Location: Riverfront Preceding action: Amendment of Development Agreement in 2021 Fund: N/A Agenda dates requested: 11/8/23, 11/15/23, 1/17/24 1st Reading/Briefing: 11/8 2nd Reading: 11/15 3rd Reading/Hearing: 1/17 Ordinance X Public hearing X Yes No Budget amendment: Yes X No PowerPoint presentation: X Yes No Attachments: 1. DA Amendment Ordinance (with DA Amendment) 2. Planning Commission Resolution 23-04 Department(s) involved: Planning, Parks & Facilities, Legal Contact person: Yorik Stevens-Wajda Phone number: (425) 257-8725 Email: ystevens@everettwa.gov Initialed by: Department head Administration Council President Fiscal summary statement: N/A Project summary statement: This ordinance will allow an amendment to the Riverfront development agreement (DA), consisting of two relatively minor changes intended to have positive impact on the continuing development of the former landfill portion of the site. The proposed amendment was considered and recommended to Council by the Planning Commission at its meeting on 10.17.23. The DA is one of several agreements between the City and the developer (Shelter Holdings) that govern the Riverfront development. These agreements envisage six phases of development on the central portion (landfill site). Most of the First Phase is complete. The first proposed change is to the cinema element of the development. In 2021, considering the impact of the pandemic, Council approved a DA amendment that postponed the development’s cinema element from the First Phase and recognized that a cinema may no longer be viable at the Riverfront. Shelter is now working on negotiating a long-term agreement with a restaurant/recreational anchor tenant for what is currently indicated as the cinema site. Accordingly, the proposed change to the agreement would replace the current cinema element with a proposed Anchor Food and Recreation use, which Shelter representatives more fully described at the briefing at first reading on 11.8.23. The second proposed change regards the Eclipse Mill Park, which is planned as a park with upland amenities (playground and picnic shelter) and in-water amenities (dock). Under the current agreements (going back to 2008 and 2019), Shelter first builds the upland part in stages, with the City building the in-water portion later when the City has funds. However, the City now will be able to use LIFT grant dollars to finance in-water park construction in 2025. Accordingly, the proposed change will adjust construction schedule to accommodate this, as it causes construction access issues if upland construction occurs before in-water work. This means the City will construct in-water in 2025, with Shelter following with its stages of upland work. Finally, as mentioned above, several agreements govern the Riverfront. To make these two changes, corresponding revisions must be made to the Amended and Restated Property Disposition Agreement (ARPDA), which governs certain Riverfront real estate matters. Unlike a DA amendment (which is by ordinance), the ARPDA amendment is approved like other contracts, and is a separate council action on 1.17.24, at the same meeting as the third reading of the proposed DA amendment ordinance. Recommendation (exact action requested of Council): Adopt Ordinance Amending the Development Agreement for the Everett Riverfront District Properties Related to the Landfill Site, Amending Section 1 of Ordinance No. 3121 -09, as previously amended.