Exhibit 1, page 1 of 3

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1 Exhibit 1, page 1 of 3 CITY OF WOODINVILLE, WA REPORT TO THE PLANNING COMMISSION rd Avenue NE, Woodinville, WA To: Planning Commission Date: August 5, 2009 From: Hali H. Hart, Development Services Director tt1t "" Subject: Public Hearing Annual Docket Comprehensive Plan Amendments: Mixed Use Overlay Extension, CPA09005 ISSUES: 1. Shall the Planning Commission hold a public hearing to consider the proposed 2009 Annual Docket of Comprehensive Plan Future Land Use Map amendment to extend the Mixed Use Overlay to all parcels designated Central Business District as presented in Exhibit 1-a? 2. Shall the Planning Commission recommend City Council adopt the proposed docket amendment to extend the Mixed Use Overlay to all parcels designated Central Business District? STAFF RECOMMENDATION: Staff recommends the Planning Commission hold a public hearing to receive and consider citizen comments regarding the proposed amendment to the Comprehensive Plan Future Land Use Map and following deliberations, to make a recommendation to the City Council to adopt the proposed (or revised) map amendment. POLICY DECISION: Woodinville Municipal Code (WMC) section requires the Planning Commission to hold a public hearing for all proposed Comprehensive Plan amendments. Amendments to the Comprehensive Plan may be initiated by the City Council, the Planning Commission, City Staff, or application submitted by a citizen (WMC ). Pursuant to Woodinville Municipal Code Chapter 17, amendments to the Comprehensive Plan are subject to City Council approval. POLICY CONTEXT: The Planning Commission must determine whether the proposed Comprehensive Plan amendment complies with the applicable criteria contained in WMC (Exhibit 1-b). EXECUTIVE SUMMARY: The purpose of this report is to provide: 1. Analysis and Facts & Findings regarding the proposed amendment. 2. Summary and map of the proposed amendment (Exhibit 1-a). 3. Recommended motions. BACKGROUND: The GMA requires that each county and city planning under the Growth Management Act have a procedure for interested persons to suggest amendments to its comprehensive plan or development regulations. The City of Woodinville's procedure is contained in WMC Chapter Pursuant to this chapter, all suggested amendments are placed on the "Docket", which is a list of proposed amendments, and considered on an annual basis. The Planning Commission reviewed the proposed map amendment in study sessions on March 18, and May 20, In section 3.4.1, the Comprehensive Plan states the intent and purpose of the Mixed Use Overlay designation:

2 Exhibit 1, page 2 of 3 'The intent of this designation is to encourage the development of the community's center as a pedestrian-oriented place that supports a wide variety of commercial, residential, governmental, professional services, and entertainment activities. Mixed-use developments that contain, for example, retail on the ground floor and residential or office above are highly encouraged in this designated area. " The Growth Management Act requires consistency between a city's comprehensive plan and it's zoning designations. To this end, Zoning Map Amendment application, ZMA09003, to extend the Pedestrian-oriented Mixed Use Special District Overlay to all parcels zoned CBD (Central Business District) has been submitted and will be considered by the Planning Commission at the 2009 Annual Docket Land Use Code public hearing scheduled for September 16, CTED Comments: Pursuant to the Growth Management Act, all of the 2009 Annual Docket proposed amendments have been submitted to the Washington State Department of Community, Trade and Economic Development (CTED) for review and comment. CTED initiated the required 60-day state agency review period on April 17, 2009 (Exhibit 1-h). To date, no comments have been received from CTED regarding this year's Docket items. ANALYSIS: The Growth Management Act (GMA) requires the public involvement in the process of considering proposed amendments to a city's comprehensive plan or land use development regulations (code). As stated above, the Woodinville Municipal Code requires the Planning Commission to hold a public hearing and make a recommendation to the City Council before the Council can act on a proposed Comprehensive Plan amendment. The Planning Commission has held two study sessions (public meetings) and an open house on May 20, 2009 at which the public was able to review and make informal (non-public hearing) comments on all of the 2009 Annual Docket proposed amendments including the subject Comprehensive Plan Future Land Use Map amendment to extend the Mixed Use Overlay to all parcels designated Central Business District. The proposed map amendment (Exhibit 1-a) was part of the implementation strategies included in the Downtown Little Bear Creek Corridor Master Plan adopted last year by the City Council. The amendment will afford the same opportunity for property owners west of 131 st Avenue NE to take advantage of the mixed-use development incentives (see Exhibit 1-d) available to owners of property east of 131st Avenue located within the Central Business District designated area of downtown. Encouraging and obtaining a mix of commercial and residential development throughout downtown is one of the primary objectives of the Master Plan and the Comprehensive Plan to achieve the stated vision to "create a vibrant compact downtown Woodinville that is an inviting place to work, shop, live and socialize." The recommendation to extend the overlay was first proposed by a group of property owners of CBD zoned property located west of the Sammamish River. As stated earlier, a Comprehensive Plan amendment is subject to the criteria contained in WMC Exhibit 1-b provides an analysis of how the proposed map amendment (CPA09005) complies with these criteria. FACTS & FINDINGS: 1. The 2009 Annual Docket proposal subject to this report is a City Council-initiated: Comprehensive Plan Future Land Use Map amendment that would extend the Mixed-use Overlay to all parcels designated Central Business District as shown in Exhibit 1-a.

3 Exhibit 1, page 3 of 3 2. The proposed map amendment, CPA09005, is a Downtown Little Bear Creek Corridor Master Plan (Adopted March 18, Ordinance No. 458) recommended implementation strategy. 3. The proposed map amendment shown in Exhibit 1-a was reviewed by the Planning Commission at the March 18 and May 20, 2009, Planning Commission study sessions. 4. As indicated in Exhibit 1-b, the proposed amendment is consistent with the requirements of WMC Decision Criteria. 5. The City SEPA Official reviewed the proposed amendment, CPA09005, for environmental impacts under SEPA (RCW C), and issued a Determination of Non-Significance (DNS) for proposed amendment on May 4, 2009, see Exhibit 1-c. The appeal period ended on May 18, No comments or appeals were received. 6. To encourage public involvement, the City published a notice (Exhibit 1-e) and held a public open house meeting on May 20, 2009 to receive public comment on all of the 2009 Annual Docket including the subject Comprehensive Plan Future Land Use amendment, CPA Pursuant to the City of Woodinville Municipal Code (WMC) Chapter 17, the Planning Commission is required to hold a public hearing on the amendments and make a recommendation to the City Council. 8. The public hearing has been advertised (Exhibit 1-f) in the Woodinville Weekly and posted (Exhibit 1-g) at City Hall, the Post Office and on the City's web site ALTERNATIVES: 1. Conduct a public hearing and following deliberations, recommend adoption of the proposed Comprehensive Plan Future Land Use Amendment CPA09005 as presented in Exhibit 1-a. 2. Conduct a public hearing and following deliberations, recommend adoption of the proposed Comprehensive Plan Future Land Use Amendment CPA09005 as amended by the Planning Commission. 3. Conduct a public hearing and do not recommend adoption of proposed Comprehensive Plan Future Land Use Amendment CPA09005 (no change). 4. Postpone the public hearing to time and date certain and take no action or receive public testimony regarding proposed Comprehensive Plan Future Land Use Amendment CPA09005 at this time. RECOMMENDED MOTIONS: [To open the public hearing] I MOVE THE PLANNING COMMISSION OPEN THE PUBLIC HEARING FOR THE 2009 ANNUAL DOCKET COMPREHENSIVE PLAN AMENDMENT CPA [At the conclusion of public testimony] I MOVE THE PLANNING COMMISSION CLOSE THE PUBLIC HEARING FOR THE 2009 ANNUAL DOCKET COMPREHENSIVE PLAN AMENDMENT CPA [OR] I MOVE THE PLANNING COMMISSION CONTINUE THE PUBLIC HEARING FOR THE 2009 ANNUAL DOCKET COMPREHENSIVE PLAN AMENDMENT CPA09005.

4 Exhibit 1, page 3 of 3 [At the close of deliberations] I MOVE THE PLANNING COMMISSION ADOPT THE FINDINGS OF FACT CONTAINED IN EXHIBIT 1, STAFF REPORT, AND RECOMMENDS THAT THE CITY COUNCIL ADOPT THE PROPOSED COMPREHENSIVE PLAN FUTURE LAND USE MAP AMENDMENT AS PRESENTED IN EXHIBIT 1-a. EXHIBITS: 1 Public Hearing Staff Report re: CPA a CPA09005 Proposed Comprehensive Plan Future Land Use Map Revision 1-b WMC Decision Criteria 1-c SEPA - Determination of Non-significance 1-d Mixed Use Overlay Incentives 1-e Open House Public Notice 1-f Newspaper Public Hearing Notice 1-g Posted Public Hearing Notice 1-h CTED,letter dated April 20, 2009

5 Exhibit 1-a, page 1 of 1 Comprehensive Plan Future Land Use Map Amendment CPA09005 Central Business District Designation Mixed Use Overlay Extension Proposal: Amend the City of Woodinville Comprehensive Plan Future Land Use Map to extend the Mixed Use Overlay to include all of the designated Central Business District area west of 131 sl Avenue NE as shown on the map below. Comp ehensive Plan future land Use 12/ n.t.s.

6 _ ~~O~ _" Exhibit 1-b, page 1 of 2 WMC Decision Criteria Required Findings for Comprehensive Plan Amendments Comprehensive Plan Amendment CPA09005 is consistent with the applicable criteria contained in WMC pursuant to the following comments and findings: Decision criteria. Applications for Comprehensive Plan amendments shall be subject to the following criteria. (1) The proposed action shall be consistent with the Growth Management Act and other applicable State laws; Comment & Finding: On April 14, 2009, the Washington State Department of Community, Trade and Economic Development (CTED) initiated the GMA mandated 60-day state agency review and comment period. No state agency found the proposed map amendment CPA05009 inconsistent with the Growth Management Act or applicable State laws. (2) The proposed action shall be consistent with the applicable Countywide planning policies; Comment and Finding: The proposed action to extend the Mixed Use Overlay to all Central Business District designated parcels is consistent with county-wide planning policies by serving to implement King County Policy LU-74 "Encourage mixed uses within existing commercial areas". (3) The proposed action shall be consistent with the goals and policies of the Comprehensive Plan (a change to a particular goal or policy not included); Comment and Finding: The proposal is consistent with the Comprehensive Plan because it will put into effect an implementation strategy of the Downtown Little Bear Creek Corridor master Plan, a sub-element of the Comprehensive Plan. (4) The proposed action shall be beneficial to the City as a whole, and to the health, safety, and welfare of its residents; Comment and Finding: The proposal will provide greater opportunity for affordable housing and jobs in the downtown thereby benefiting the City as a whole and its residents. (5) The various types of applications shall be subject to the following decision criteria: (a) Type A. Amendments to the City's Future Land Use Map (Comprehensive Plan Figure 3-3) shall be subject to the criteria listed in Section in the City's Comprehensive Plan. Comment and Finding: The proposal is: supported and consistent with existing Comprehensive Plan policies; promotes a desirable land use pattern; and would have a positive impact and be compatible with the current use of property in and adjacent downtown pursuant to Section 1 of the Downtown Little Bear Creek Corridor Master Plan adopted March 18, 2009, Ordinance No The following criteria are not applicable to a City's Future Land Use Map amendment. (b) Type B. Amendments to the City's goals and policies shall meet the criteria described in Section of the City's Comprehensive Plan. (c) Type C. Other text amendments shall meet one of the following criteria:

7 -----._-~- Exhibit 1-b, page 2 of 2 (i) The change is necessary because of changes to the State Office of Financial Management's population projection; (ii) The change is necessary because of changes to the counties' allocation of population to the City; (iii) There has been a change to the law; (iv) There is an error that requires correction; (v) The text needs to be refined or to better reflect the goals and policies of the Comprehensive Plan, changes in or clarification of the plan's ability to provide services or accommodate the needs of the City's citizens, or changes in or clarification of conditions in the field. (d) Type D. The City has determined that it is necessary or desirable to add or delete an element or subarea plan of the Comprehensive Plan in order to better the ability of the plan to accommodate the needs of the existing or future City, or as required by State law. (Ord , 1997)

8 Exhibit 1-c, page 1 of 1 CITY OF WOODINVILLE MITIGATED DETERMINATION OF NON-SIGNIFICANCE PROJECT: Pedestrian Oriented Mixed Use Expansion Zoning Map Amendme Mixed Use Overlay Expansion Comprehensive Plan Amendment Threshold Determination: Mitigated Determination of Non-Significance Date of Issuance: May 11, 2009 ". File Number: SEP09013;Str09024 Applicant: City of Woodinville Proposal Location: CIty Wide-Central Business District SITIR: N/A-non project action Proposal Description: Lead Agency: Proposed amendment to the CorlJprehensive Plan Future Land Use Map and the City of Woodinville Zoning Map to extend the mixed use overlay to the'entire area of downtown designated Central Business Distlk;.t City ofwoodinville NOTE: This determination does not constitute approval of the proposal. This proposal will be reviewed for compliance with applicable codes which regulate development activities and all other permit review processes. Threshold Determination: In making this threshold determination the Responsible Official, pursuant to WAC has reviewed the environmental checklist, supporting documents and considered mitigation measures which the applicant will implement as part of the proposal. As required by WAC , the Responsible Official finds this information reasonably sufficient to evaluate the environmental impact of this proposal and concludes that it does not pose a probable significant adverse impact to the environment provided the mitigation measures listed below are applied as conditions of permit issuance consistent with WAC These mitigation measures are based on policies, plans, rules, or regulation as a basis for the exercise of substantive authority and in effect when this determination of non-significance is issued. MitigatIon List: The following mitigation measures shall be attached as conditions of approval: "CitiuIIS, busl"es5 ahd!ocnl $"''f'fmlllntl; II COltllll:mity commitmrllt 10 Oll(ficllm. ~ 1. Specific mitigation measures may be required of future development within the proposed overlay expansion area to address traffic impacts associated with higher density and intensity of development allowed pursuant to the mixed-use overlay. COMMENTS AND APPEALS: Any interested party may submit written comments on this determination. Written comments or appeals must be received in the City of Woodinville, Department of Development Services before 5:00 P.M. May 25,2009 Any appeal shall state with specificity the reasons why the determination should be reversed. All appeals must be accompanied by a non-refundable $ filing fee. Comments or appeals should be addressed to the Responsible Official designated below. Any questions regarding the determination should be directed to Planning Manager, Ray Sturtz, at (425) ext SEPA OFFICIAL: POSITIONITITLE: ADDRESS: Hal H. Hart City of Woodinville SEPA Official 'd Avenue NE Woodinville, WA SIGNATURE: 74 1//~TE: May 11, rd Avenue NE Woodinville, WA Fax: , I) prinll'd on rk)'cled. paper

9 --_..' ~ --- Exhibit 1-d, page 1 of 1 Mixed Use Overlay Incentives Special district overlay - pedestrian-oriented mixed use development. (6) Development Potential. Except as otherwise provided herein, all development in the Pedestrian Oriented Commercial Overlay Zone shall comply with all applicable City regulations. Developments that are determined by the Director to meet the criteria as shown in WMC (5) and that enter into a voluntary development agreement with the City and that provide mitigations or public benefits that exceed those required under standard regulations, may receive additional development potential or incentives, as part of an approved development agreement that specifies the mitigation or public benefit and the City-provided development incentive. These development incentives may include but are not limited to the following: (a) City cooperation in timing the construction of public infrastructure, including but not limited to streets designated on the City's official Street Map, that will in part serve and facilitate the proposed development. (b) Potential increased structure height limit, up to a maximum of 150 percent (52.5') of the standard limit of35', as specified in WMC (c) Potential increased residential density, up to a maximum of 150 percent (54 dulac) ofthe standard limit of36 dulac, as specified in WMC , or use a floor area ratio (FAR) of not more than 2.5. (d) Other alternative standards, as determined through a development agreement, consistent with provisions ofwmc

10 Exhibit 1-e, page 1 of 1 Open House Public Notice: CITY OF WOODINVILLE NE 133 rd Avenue NE WOODINVILLE, WA (425) PUBLIC OPEN HOUSE The City of Woodinville Planning Commission is considering the 2009 Annual Docket of amendments to the Comprehensive Plan, Zoning Code, and Development Code. Public hearings are anticipated in July to consider Comprehensive Plan amendments and in September to consider Zoning and Development Code amendments. You are invited to review the proposed amendments and talk with staff at the following open house: Wednesday, June 10, :30-7:00 p.m. Council Chambers Woodinville City Hall rd Avenue NE Woodinville, WA For more information, please contact Ray Sturtz, Long Range Planning Manager at (425) , extension 2281.

11 Exhibit 1-f, page 1 of 1 Newspaper Public Hearing Notice: The Woodinvi _II e ~;A.~i.":J.~D. Vleeldy COmrnul1il)' News Since 1976 'c_~~?fnorthlake News... Vol. 33 No. 42 ~ July 20, 2009 P.O. Box 587.WOodiIMIle, WA :_.-.ClJm CITY OF WOODINVILLE td Awnue HE WOODINVILLE, WA (425) NOTICE OF PUBLIC HEARING The City 0' WoocIinvtllG PLANNING COMMISSION will ~..Ope" "*:on! Public Hearing on li1e hm$ described below. DESCRIPTION OF APPLICATIONS Prol~H.m.: ~\xed u.. 0v0J~Exlenalon 2009 Mnllel Dock"t =~noive Amendment. FIle Numb."': "",,'Icant: City 01 'tlclodinvllle Contact: Ray SI..,rtz. Planning ManaQer LOClIlIon: C~y Wide. Woodlnwle. K,r.g COunty, VlasIlinglon Secllon of Colle '"-'11".nl to Hearln8 P_edule: W\lC Pnlpoul: 2009 Amual Dod<el Comprel1en_ PlenAmernlmont!O ~,xien&ion ~~~::'=~~~Land~~~O:: QIy ~edoploci Downbom LillIe Bear=COntddrMalllor Plall. Public HNrtne Dale: AlVI" 5 200ll 11mr. 2.:lllWlm'. Heartng locailon: WOQCjnWleCity.Heil. ~ CIwnbers 17~1 133ld A""nue HE, Wood""""'. WA 9IlOn Date or NolIce: JuIw 20, 2009 ~...OIIIcllll: Hal H. Halt, lllmiiopmer1t SaMces o.-r Coplea.oI all ~doeumenl$...aiiabl8lor """"" or purcllase at ely HeD. in addllion; a~qt lie ataif~ wii be evai1abi8 7 dll)'s pric< 10 li1e Hearing. All nt.ereated Jl"'tiea may appew and pioilih leatimony \l> tho eboy!> pjop058ls lith Pubic tlfitirin9. WriIlen cxmmenl8 "'liludnlir- ~.w11 "~Upll>andlll"'PUblIcHeaMil.Comments -.oo.ic1 b"~lll"'~~ ~enl81thoedch:n... _.If~...",~pIeaM""Ray ~. i7s It. "NOTE: The heering Nlject lo lhia nollce Is..0f'EJII RECORD Hl!AftlIIG. Mcaro.oI. Nsl!6lrbl wli be amied. Artt I*lY ~In Ihlllledsion rjllle ~ IIllI\I ~ IIIlOl*l or... fdatimdny for Ihe.-d altho OP N RECORD. HEARING. My appm! of a Ile8rtng ~...'IIrRIl8dto 8n Adrnir:Ujnllllle I\jlpQlll bolsed on tho ~ record. In case 01 an ""peal appeal wlli bd"''l!.,e. CLOSED ReCORD Al'PEAl1lEARJNG wlth no _...11"" 0' a1100nd to lie... _"~"zoiii 1:\Council, Boards It Conunissions\Planning Commission\SlaffRcports\lOO9\08~5\PH_MixcdUsc (h'crlay CPAJI.doc

12 Exhibit 1-g, page 1 of 1 Posted Public Hearing Notice: CITY OF WOODINVILLE _133 rd Avenue NE WOODINVILLE, WA (425) NOTICE OF PUBLIC HEARING The City of Woodinville PLANNING COMMISSION will conduct an Open Record Public Hearing on the items described below. DESCRIPTION OF APPLICATIONS Project Name: Mixed Use Overlay Extension 2009 Annual Docket Comprehensive Plan Amendment. File Numbers: CPA09005 Applicant: City of Woodinville Contact: Ray Sturtz, Planning Manager Location: City Wide, Woodinville, King County, Washington Section of Code Pertinent to Hearing Procedure: WMC Proposal: 2009 Annual Docket Comprehensive Plan Amendment to consider extension of the Mixed Use Overlay to all parcels designated Central Business District on the Comprehensive Plan Future Land Use Map as recommended in the City Council adopted Downtown Little Bear Creek Corridor Master Plan. Public Hearing Date: August 5,2009 Time: 7:00 pm Hearing Location: Woodinville City Hall, Council Chambers rd Avenue NE, Woodinville, WA Date of Notice: June 20, 2009 Responsible Official: Hal H. Hart, Development Services Director Copies of all application documents are available for review or purchase at City Hall. In addition, a copy of the staff report will be available 7 days prior to the Hearing. All interested parties may appear and provide testimony to the above proposals at the Public Hearing. Written comments regarding these proposals will be accepted up to and at the Public Hearing. Comments should be addressed to the Development Services Department at the address shown above. If you have any questions, please call Ray Sturtz at (425) ext *NOTE: The hearing subject to this notice is an OPEN RECORD HEARING. A record of this hearing will be created. Any party interested in the decision of the hearing may present spoken or written testimony for the record at the OPEN RECORD HEARING. Any appeal of a hearing decision is limited to an Administrative Appeal based on the existing record. In case of an appeal, the appeal will be heard as a CLOSED RECORD APPEAL HEARING with no new evidence or information allowed to be submitted. 1:\Couocil, Boards & Comrnissions\PJanniJlg Commiss.ion\StafTRcporn\2009\08.Q5\J>H_Mixed Use (A-erlay CPAll.doc

13 Exhlibit 1-h, page 1 of 1 DEPARTME T OF COMMUNITY. TRADE AND ECO IOMIC DEVELOPME T ' PO 151' tym :I. W. /Iinqfi II.152 S (.l ~ ~ April 20, 2009 Ray Sturtz Director of Community Development Department of Planning & Community Development rd Avenue Northeast Woodinville, Washington Dear Mr. Sturtz: Thank you for sending the Washington State Department of Community. Trade and Economic Development (CTED) the following materials as required under RCW 36.70A Please keep this letter as documentation that you have met this procedural requirement. City of Woodinville Proposed 2009 Annual Docket. These materials were received on 04/17/2009 and processed with the MaterlallD # We have for.varded a copy of this notice to other state agencies. If this is a draft amendment, adopted amendments should be sent to CTED within ten days of adoption and to any other state agencies who commented on the draft. If you have any questions. please call me at Sincerely, tj,~ti/fi "", ~.,i.jf 10" Sam Wentz GIS Coordinator Gro,\oth Management Services I:\Council, Boards & Commissions\Planning Commission\StatTReports\2009\08-05\PH_Mixed Use Overlay CPAU.doc