Committee recommends extension for 5201 Rainier South contract rezone to preserve a workforce housing project

The Land Use and Sustainability Committee on June 3 recommended that the Council grant an extension for a contract rezone at 5201 Rainier South (Clerk File 314549) and recommended passage of Council Bill 121220, which would extend the property use and development agreement and preserve an entitlement tied to a 111-unit workforce housing project.

Scott Shapiro, co-managing partner for the project, addressed the committee and requested a four-year extension, saying current market conditions—construction costs, rents and high interest rates—make the project unfinanceable today. He described the project as shovel-ready and noted participation in the Multifamily Tax Exemption (MFTE) program to make 20% of units more affordable.

Council Central Staff (Ketil Freeman) provided permitting history and explained the code default allowed a two-year extension but that the Council has authority to grant a longer term via separate legislation. The committee voted to recommend granting the clerk file and recommended passage of CB 121220; both votes were recorded 4–0 in favor, and the recommendations will be sent to the June Council meeting for final action.

Chair Lin said the committee sympathized with development challenges and noted the committee could consider another extension in the future if needed. Staff identified three criteria the Council uses when deciding contract-rezone extensions, including whether additional time is reasonably necessary to fulfill conditions of approval.

The committee’s recommendation advances the extension request to the full Council for final consideration.