Director’s report: November tree-canopy presentation, Kitsap Bank merger and downtown redevelopment potential

Nick Bond, Port Orchard community development director, gave two announcements in his director’s report: Public Works will present on a forthcoming citywide tree-canopy initiative and tree-canopy ordinance work at the commission’s November meeting, and Kitsap Bank is merging with Heritage Bank, prompting potential changes to a downtown headquarters project.

Bond said the tree-canopy work is tied to the city’s National Pollutant Discharge Elimination System (NPDES) permit, a federal stormwater-permit program that requires the city to set goals and policies to improve tree canopy as part of stormwater management. The presentation in November will be an initial step toward potential code revisions related to tree canopy.

On downtown redevelopment, Bond told the commission that Kitsap Bank has decided to merge with Heritage Bank of Olympia and that downtown headquarters office space may no longer be needed by the bank. City staff have met with Kitsap Bank and the incoming managers, and Kitsap Bank indicated it intends to be a “good steward” of the downtown and would seek an appropriate developer or party to take on pending entitlements and move a project forward, whether as office, a boutique hotel or mixed use with residential over retail. Bond said there are active permits including a shoreline permit; Kitsap Bank indicated it would prefer to sell entitlements to a developer who will build in a timely manner rather than hold the site.

Bond said the bank’s decision does not affect the proposed community center project. Commissioners asked clarifying questions about public-works responsibilities related to tree maintenance and invasive ivy; Bond suggested those questions be addressed by Public Works at the November presentation.

Bond said staff will keep the commission updated as they continue discussions with Kitsap Bank and any prospective developers.