This ordinance amends the Land Use Code to revise the transfer of development rights (TDR) and public benefit features (bonus) programs, as well as other provisions of the Land Use Code, to achieve Downtown neighborhood plan objectives and responds to concerns raised by the Citizen’s Advisory Committee (CAC), made up of representatives of varied downtown neighborhood, business and nonprofit housing interests.

Downtown regulations will continue to govern density in most zones by establishing a base and maximum floor area ratio (FAR), varying among the downtown zones. The amendments fundamentally change the system for increasing floor area above the base FAR and related development standards including height provisions. The implementation of the proposed amendments requires the creation of new Code sections and the elimination or repeal of a number of existing provisions.

The following is a summary of the major amendments:

• Allow an increase in height of up to 10% in the Downtown Office Core 1 (DOC 1) and Downtown Office Core 2 (Doc 2) zones as a replacement for the sculptured building top bonus. Allow an increase in height of up to 20% in the DOC 1 zone and a limited portion of the DOC 2 zone to provide more flexibility to accommodate development that results in towers with reduced bulk and that includes open space, low scale structures or preservation of a landmark structure on the development site.

• Propose no changes in maximum FAR, except in the DRC zone, where the maximum FAR would be reduced from 6 FAR to 5 FAR.

• Increase permitted base FAR in the DOC 1, DOC 2, and DRC zones. These changes will establish a graduated range of base FARs reflecting a land use pattern that focuses greatest density on the downtown office core in the DOC 1 zone, with the next greatest density permitted in the DOC 2 zone. Corresponding changes are also proposed for the DRC zone. Increases in the base FAR also offset proposals to eliminate bonuses for some features, such as overhead weather protection.

• Prioritize mitigation of housing impacts: in DOC-1 and DOC-2, seventy-five percent (75%) of any floor area above 1 FAR above the base FAR would be earned by TDR transferred from qualified housing sites or by facilities bonuses that involve mitigation of housing and child care impacts. Twenty-five percent of the floor area above 1 FAR above the base FAR would be earned from other (non-housing) development rights transfers or amenity bonuses, or both. Five percent (one-fifth of the twenty-five percent) would be achieved through TDR from Landmark structures when available. In DRC, the 75%-25% split would be applied to chargeable floor area above the base FAR.
  
• Allow maximum FAR to be achieved in several ways:

1) TDR;

2) Floor area bonuses when certain impacts of development are mitigated by voluntary agreements to provide or contribute to housing and child care ("facilities bonus");

3) Floor area bonuses when certain impact-mitigating features are provided ("amenity bonuses");

• Allow other choices for achieving floor area above the base including:

1) The first FAR above the base in DOC 1 and DOC 2 zones, using amenity bonuses, including short-term parking and retail uses, or non-housing TDR; and

2) In DMC zones, using one of two options: a) existing rules governing floor area in general and for gaining bonus floor area, or b) the new bonus and exemption rules described in this report.

• Allow base density to be transferred within blocks and from eligible sites in some areas of the downtown to other areas, similar to current Code provisions. Transfers will continue to be permitted from sites developed with landmark structures and from sites with housing for households with incomes up to 80% of median income, provided a minimum amount of housing for households with incomes up to 50% of median income is included. The area where landmarks are eligible as TDR sending sites would be expanded to include zones north of Virginia Street to Denny Way. Transfers would no longer be permitted from Pioneer Square infill sites, from sites occupied by new housing or from new or existing performing arts facilities (except landmarks). Transfer would also be permitted from sites provided as downtown public open spaces, subject to special conditions. All transfers would be subject to limitations, some of them new (for example, in many areas lower FAR is used to calculate floor area available to transfer from sending sites).

• Allow floor area above the base FAR to be gained if mitigation is provided for impacts on housing and child care demand. Also, floor area could be increased if certain amenity features are provided in specified areas: open space, access to transit facilities, human services, shopping corridors and hillclimb assists.

• Allow certain types of mixed-use development that includes residential use or a minimum amount of retail and/or entertainment uses to reach the height of 150 feet in the Downtown Retail Core (DRC) zone. In addition, up to 30% more height will be permitted on two half-blocks along the western edge of the retail core on the east side of 2^nd Avenue between Pine and Union Streets. The current maximum height is 150 feet, but it is conditioned on Council approval of a major retail store or performing arts theater.

• Consolidate TDR and Bonus Code provisions, such as permitted base densities and rules for achieving is proposed.

• Amend definitions including: deleting terms no longer in use, defining new terms and amending existing definitions to be consistent with proposed amendments.

This ordinance is one step in responding to the recommendations of the neighborhood plan and the Citizen’s Advisory Committee. The next step will examine proposals such as height and density increases, which need more analysis and review. SPO is conducting and environmental review process now and anticipates further recommendations to follow, particularly amendments to the Downtown Mixed Commercial (DMC) zone. Ultimate recommendations (STAGE 2) will depend upon the additional analysis and review during preparation of an environmental impact statement.