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Council hears planning and policy updates: middle‑housing interim ordinance, cabaret code review and state bills to watch

2777143 · March 26, 2025
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Summary

Staff reported a change in the schedule for middle‑housing code work to meet a Commerce grant requirement; council received a memo and will discuss cabaret-license code changes and is tracking state legislation on AI bargaining and a proposed 3% property-tax cap increase.

Port Orchard — Council and staff discussed several planning and policy matters, including a pivot on middle‑housing code work required by state law and grant deliverables, a forthcoming memo on cabaret-license code changes, and continued monitoring of state legislation on artificial intelligence bargaining and a potential increase in the property-tax cap.

Middle housing: Staff reported a June 30 statutory deadline for code updates and said the Washington State Department of Commerce — which provided the grant supporting the city's work — requested an earlier deliverable. To meet Commerce's timeline, staff said they will present an interim ordinance to the Planning Commission in May containing "bare bones" changes required by state law while continuing a comprehensive code overhaul through the summer. The interim ordinance will go to the land use committee and the planning commission before returning to council.

Cabaret license review: Councilmember Sarchar (committee member) said research indicates the cabaret license has utility but could be improved; she plans to circulate a memo for council discussion and suggested the matter could go to a work study or committee given overlap between economic development and land-use impacts.

State legislation: Staff and councilmembers noted they are tracking a bill on mandatory bargaining over use of artificial intelligence (the city and Association of Washington Cities are opposed) and another bill that would allow local property-tax increases up to 3 percent tied to CPI, possibly requiring a substantial-needs ordinance to take effect. Council members described the proposals as alive in the legislative process; no local action was required at the meeting.

McCormick golf-cart zone: Council clarified that an ordinance passed in 2023 expanded the McCormick golf-cart zone to include McCormick West (also called McCormick Trails), and staff said signs need to be installed at the West-side entrances to reflect that change.

No formal land‑use votes were taken at the meeting; staff will return with interim ordinance language and memos for committee and commission review.