Study session on Wilburton LUCA: staff recommends mandatory inclusionary approach; commission schedules Feb. 26 public hearing

Staff recommended a mandatory inclusionary approach (Option A) for the Wilburton Vision land-use code amendment on Jan. 22, proposing a 10% affordable housing set-aside for rental projects (80% AMI) with a fee-in-lieu alternative, a higher base FAR than the voluntary option, and a temporary "pioneer" bonus intended to accelerate early delivery of up to 200 affordable units.

The recommendation grew out of two prior study sessions (Oct. 23 and Dec. 11) and public engagement dating to the Wilburton subarea plan process. Assistant Director Nick Whipple and Senior Planner Josh Steiner presented the two policy paths staff evaluated: Option A (mandatory inclusionary with a fee-in-lieu and land-transfer alternative) and Option B (voluntary incentive-based amenity program with affordable housing prioritized among bonus amenities). Whipple said the mandatory approach yields more predictable and equitable outcomes across projects and is easier to scale or reduce later if conditions change.

Economic consultant Mikaela Jelicos (Community Attributes) summarized a nexus study and feasibility work supporting the recommendation. The study translated the subsidy need for affordable units into maximum supportable fees (residential and commercial), produced prototype analyses, and showed maximum allowable fees ranging from roughly $20 to $39 per square foot for several residential prototypes and a maximum commercial fee (support level) above $100 per square foot. Jelicos noted these are upper bounds for legal proportionality; actual fees should be set below those maxima and recalibrated periodically.

Staff proposed specific fee levels for Wilburton in the Jan. 3 draft: $18 per nonexempt square foot for residential projects in the urban core and $13 per square foot elsewhere in Wilburton; a single commercial fee of $24 per square foot was proposed for all Wilburton districts. Staff also described the "pioneer" provision: the first 200 on-site affordable units delivered in Wilburton would earn a larger FAR bonus (an 8:1 ratio — 8 market-rate sq. ft. for each affordable sq. ft.) to induce earlier delivery; after that threshold the bonus would reset to a 4:1 ratio.

Public commenters were numerous and largely focused on inclusivity and affordability in Wilburton. Representatives of the Eastside Housing Roundtable — including Jasmine Smith (FutureWise), Patience Malaba (Housing Development Consortium), Joe Fain (Bellevue Chamber), Brady Nordstrom (HDC), and others — urged a "well-calibrated" mandatory requirement with cost-reduction measures, an in-lieu fee, and a catalyst/pioneer program designed as an integrated package rather than a menu of options. Commenters across affordable housing non-profits and some property owners said Wilburton represents one of Bellevue’s largest opportunities for affordable housing near light rail and Eastrail.

Other public commenters asked staff to reconsider several cost drivers in the code: sidewalk and flexible access-corridor widths, local street requirements, and some transportation-access standards that can reduce developable area on constrained sites. Property owners and land-use counsel (TJ Woosley, Jackie Quarry) asked for changes to avoid making redevelopment infeasible on constrained parcels, including relief from some local-street dedications and flexible access requirements. Several speakers representing smaller sites urged that the amenity system include building-based amenities (affordable commercial, childcare, murals/public art, deeper green-building tiers) that do not consume scarce ground-level area.

Commissioners asked staff and the consultant detailed questions about: how the nexus and feasibility numbers were calculated; why staff chose the proposed $13/$18 residential fee levels and the $24 commercial fee; how the "pioneer" provision would be administered and vested; whether the master development plan (MDP)/ADR vesting interaction needs clarity; and how sidewalk and corridor width standards might be tailored to different street types. Several commissioners and members of the public urged that staff analyze the Eastside Housing Roundtable letter (submitted shortly before the meeting) and return with the technical implications.

Following discussion, Commissioner Farris moved to schedule a public hearing on the Wilburton LUCA for Feb. 26; the commission approved the motion by voice vote. Commissioners asked staff to provide additional analysis and an updated memo for the public hearing addressing: fee calibration (including a response to the Eastside Housing Roundtable proposal), the commercial fee and catalyst options, the vesting question for MDPs and ADRs, and more granular proposals for flexible access-corridor/sidewalk widths and other transportation standards.

Staff said the LUCA timeline anticipates a public hearing on Feb. 26, followed by a Planning Commission recommendation to council and a council hearing in the spring. Staff noted the Wilburton LUCA is one piece of a larger program of changes (including middle housing and other plan-area LUCA items) required by state and city policy.

The commission left the meeting with a Feb. 26 public hearing scheduled and a clear list of technical follow-ups staff will prepare for that hearing.