Commissioners hear feasibility report on transfer‑of‑development rights and LCLIP participation
Summary
Consultants told the Bothell Planning Commission that a TDR program tied to a multifamily tax exemption could be viable in North Creek and downtown; participation in the LCLIP would require interlocal agreements with King, Snohomish and Pierce counties and staged performance checks to trigger revenue sharing.
Planner Jacqueline Sampson and consultants Morgan Shook (Eco Northwest) and Skip Swenson (Swenson LLC) presented a feasibility analysis for a transfer‑of‑development‑rights program and options to participate in the Local Infrastructure and Community Livability Investment Program (LCLIP). No formal action was required tonight; staff sought input on whether to proceed with preparing code changes, interlocal agreements and public‑hearing materials.
Morgan Shook summarized the market findings, saying the analysis showed room to scale credits in the North Creek area and that, under a medium‑growth scenario, the program could reach modeled credit allocations. “The economics are favorable by using the, exemption tool,” Morgan said during the presentation, adding revenue sensitivity could push county contributions well above baseline estimates.
Consultant Skip Swenson outlined implementation steps: identify receiving sites and eligible projects, negotiate interlocal agreements with counties (King County requires negotiated interlocals; Snohomish and Pierce have adopted the Commerce rule option), adopt necessary code amendments, and establish administrative procedures. He emphasized the need for an operational plan assigning staff responsibilities and market outreach to developers and landowners.
Commissioners focused on risks and performance thresholds. Staff and consultants explained that LCLIP revenue sharing depends on TDR credit placement performance: 25% placement is required to start revenue flow, 50% is required by year 10 to continue, 75% by year 15, and 100% by year 20, with a total 25‑year revenue window. Presenters characterized the main downside as foregone future revenues if thresholds are unmet, not an immediate budget liability to the city.
Next steps outlined to the commission included public notice and LIPA formation (180‑day notice to affected counties and treasurers), potential public hearings, and coordinating interlocal agreements if the commission recommends proceeding to Council. Commissioners asked staff to return with more detailed implementation cost estimates, suggested outreach targets (affordable‑housing builders, property owners in receiving areas), and examples of neighboring pilot jurisdictions.
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