Poulsbo council releases 1970s Terhune concomitant agreement after public hearing

The Poulsbo City Council voted unanimously Oct. 15 to approve Ordinance No. 2025-16, removing a recorded concomitant (development) agreement that was placed on the Terhune property in the 1970s.

The release affects three parcels historically associated with the Vikings Crest condominium development and a vacant parcel on the north end of Fourth Avenue now owned by Housing Kitsap. Planning staff said the change would allow future subdivision or boundary-line adjustments and would enable redevelopment under current zoning and code rather than the decades-old agreement.

Planning staff member Edie (last name not provided) explained at a public hearing that the recorded agreement tied the properties to a 1970s site plan and zoning approach. “If this agreement is released, any future development or redevelopment of property would be regulated under whatever current zoning regulations exist at the time the property comes in for an application,” Edie said during the hearing.

During public comment, nearby residents raised traffic and safety concerns for Fourth Avenue if future development proceeds. Resident Missy Sewell, who said she has lived on Fourth Avenue for more than 50 years, asked how the council would address traffic and asked why past requests for speed bumps had not been acted upon. The council and staff replied that no development plan is proposed with the agreement release and that any future use would be evaluated under current code and standards; councilmembers also noted that traffic-calming requests are handled separately through the city’s public-works processes.

Councilmembers discussed the specific property mechanics: Housing Kitsap seeks to adjust parcel boundaries so a small piece of infrastructure currently at the southeast corner can be sold or otherwise reallocated to better match ownership and use. Councilmember Newell summarized that the larger 13-acre parcel is effectively unbuildable and is likely to remain as park or conservation land at some future date. Parks staff previously identified the larger parcel as part of a potential connected trail system tying the city’s park acres together.

Councilmember McVay moved the ordinance to formally release the concomitant agreement; the motion carried on a unanimous vote of the council.

With the ordinance now adopted, staff said Housing Kitsap can pursue the necessary boundary-line adjustment or parcel-conscious transaction; any future subdivision, sale or park development would return to the city for review under current land‑use rules.

Why it matters: The release removes a 45-plus-year constraint recorded on the title that had governed how the property could be redeveloped. Staff said the change will make titles clearer for the involved parcels, enable boundary adjustments, and let future uses be evaluated under up-to-date zoning and environmental rules rather than the older recorded contract.

Next steps: Planning staff will process any boundary-line-adjustment applications from Housing Kitsap. Parks staff said they expect to continue coordinating on trail connections and possible passive-park uses for the larger parcel.