Debate over MOA development credits, ADU rights and stormwater maintenance draws strong public comment in Coupeville

Coupeville planning commissioners on Sept. 16 continued a months-long review of a 20-year Memorandum of Agreement (MOA) covering development credits, lot sizes and allowable housing types for several parcels on the towns west side. The discussion drew multiple public comments focusing on development-credit availability, how accessory dwelling units (ADUs) would be treated under state law and maintenance of a regional stormwater system.

Planning staff explained that some transfer-of-development-credit pathways had been eliminated after a conservation easement extinguished roughly 19 credits, reducing one set of options staff had presented earlier. Staff said the MOA currently allows smaller 7,200-square-foot lots and that abandoning the MOA would revert lots to a 9,600-square-foot minimum in the applicable zones; amending the MOA could preserve smaller lot sizes while clarifying whether state middle-housing and ADU rules would take precedence when they conflict with the MOA.

Staff and several speakers repeatedly referenced House Bill 1337 (HB 1337), the state law that changed ADU and middle-housing rules. Planning staff said existing MOA or development-agreement language can make parcels exempt from some state provisions, but the town could craft language to ensure MOA owners understand the tradeoffs: keeping lower lot sizes and MOA protections versus preserving new ADU rights under state law.

Public comment focused on two related concerns: maintenance and cost of an aging regional stormwater conveyance and whether property owners had been informed that the MOA limits future ADU options. Charlene Rexworth, who said she lives at 706 NW Krueger, said the homeowners association disclosures referenced HOA obligations to maintain ponds and conveyances but that many homeowners were unclear what those obligations meant and worried about potential large costs. She said it had been “an overwhelming and scary problem” and asked that the town clarify deeds and who would bear future costs if the town takes over the pond system.

Developer and property owner Cecil Stearns (identified in public comment) told the commission he owns many of the parcels and said the town had agreed at a council meeting to take over the bonds and easement for the stormwater system; staff confirmed the council had directed staff to pursue transfer but paperwork remained outstanding. Residents urged the town to accept maintenance responsibility so homeowners would no longer be liable for a regional stormwater system that serves many parcels beyond the HOA.

Several speakers representing property owners said they want flexibility to build smaller, more attainable middle-housing units rather than large single-family homes. Kimberly Doubler, who identified herself as a daughter of the property owner and a prospective developer, said: "It is not our goal to build anything that would be in character with them that we would be proud of, that we would want our own children to live in. But if the MOA stands as it is, really, the only option we have as developers is to build large, expensive, single family homes." She asked the commission to consider amending MOA language so property owners could pursue middle-housing options that align with state rules.

Commissioners and staff discussed outreach: several commissioners asked staff to send an informational letter to current homeowners and vacant-lot owners in the MOA area explaining the tradeoffs — specifically, that leaving the MOA unchanged could limit ADU options that the rest of town may gain under HB 1337, while an amended MOA could preserve smaller lot sizes and other original MOA benefits.

No final regulatory decision was made Sept. 16. Commissioners signaled they want to slow the process, perform direct outreach to affected property owners (including vacant-lot owners), and provide clearer written materials explaining development-credit ownership, the effect of HB 1337 and the towns planned assumption of stormwater maintenance responsibilities.