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HEX Decision_PLN51498 RUE_VAR - White RUE and Variance, City Reconsideration Decision (Final, 12.1.22) Decision on City’s Request for Reconsideration City of Bainbridge Island Hearing Examiner White Reasonable Use Exception and Variance Nos. PLN51498 RUE; PLN51498 VAR Page 1 of 5 BEFORE THE HEARING EXAMINER FOR THE CITY OF BAINBRIDGE ISLAND In the Matter of the Application of ) Nos. PLN51498 RUE; PLN51498 VAR ) Tom White ) ) For Approval of a Reasonable Use ) DECISION ON CITY’S REQUEST FOR Exception & Zoning Variance ) RECONSIDERATION BACKGROUND The Hearing Examiner issued a decision in this matter on October 11, 2022, granting, with conditions, a request from Tom White (Applicant) for a Reasonable Use Exception (RUE) and a Zoning Variance, related to property at 3935 Lytle Road NE (Nos. PLN51498 RUE and PLN51498 VAR). On October 24, 2022, the Hearing Examiner received a request for reconsideration of the decision from Attorney James Haney, on behalf of the City of Bainbridge Island (City).1 The City’s reconsideration request asserts that the Hearing Examiner erred in determining that the Applicant had not previously derived a reasonable use of the subject property: in particular, use of the subject (south lot) property for mitigation plantings required for approval of a prior 2005 RUE authorizing development on the adjacent 0.66-acre property to the north. Specifically, the City asserts that the Hearing Examiner erred by determining that the facts underlying the Applicant’s RUE application were distinguishable from those underlying Kinderace v. City of Sammamish, 194 Wn. App. 835, 379 P.3d 135 (2016). In support of its assertion, the City argues: • The Hearing Examiner erred in determining that the previous 2005 RUE did not involve a “joint development” of the 0.66-acre northern parcel and the 0.2-acre parcel that is the subject of the current RUE approval. Language in the previous RUE application references both parcels, and the Hearing Examiner’s conclusion that the record did not firmly establish that the 2015 RUE request involved a joint development of joint use of the property is incorrect based on the express language of the application. In addition to the language in the application referencing both parcels, monitoring reports submitted for the required five-year monitoring plan related to the 2005 RUE mitigation included an analysis of plantings on the southern parcel. • The Hearing Examiner erred in determining that the record did not firmly establish that mitigation on the southern, subject lot was necessary to allow development on the 1 The next day, the Hearing Examiner received a motion for reconsideration from Attorney Joshua Lane, on behalf of neighboring property owner and party of record Astolfo Rueda. Mr. Rueda’s motion for reconsideration is addressed in a separate decision issued concurrently with this decision on the City’s request for reconsideration. Decision on Astolfo Rueda’s Request for Reconsideration, dated December 1, 2022. Decision on City’s Request for Reconsideration City of Bainbridge Island Hearing Examiner White Reasonable Use Exception and Variance Nos. PLN51498 RUE; PLN51498 VAR Page 2 of 5 northern lot. Although the earlier proposal changed during the preapplication process to shift the residence and stream culverting to the northern parcel, the requirement to mitigate impacts on the stream was not eliminated, and the stream buffer enhancement was merely relocated from the northern lot to the southern lot. The Hearing Examiner incorrectly relied on testimony at the hearing that there may have been sufficient area on the northern lot to support required mitigation. The Applicant’s predecessor chose to locate a substantial portion of the required mitigation in the stream buffer on the southern lot and, therefore, the mitigation on the southern lot was necessary for development on the northern lot. • The fact that the City did not require lot consolidation or the extension of the “No Disturbance/Restoration Zone” on the southern parcel as a condition of the 2005 RUE is not determinative of whether joint development occurred, and the Hearing Examiner erred by relying on the absence of these conditions. The City’s land use regulations do not require lot consolidation for establishing a use on an adjacent site, and the absence of such a requirement or a requirement for a no disturbance/restoration zone on the southern lot under the 2005 RUE does not negate the fact that the Mr. White currently has a reasonable use of the southern lot as a mitigation site. • The fact that no boundary line adjustment was involved in the 2005 RUE is not determinative of whether the Applicant’s predecessor created the inability to develop the south lot. The final basis stated by the Hearing Examiner for distinguishing Kinderace from the current application is that “neither the Applicant nor his predecessor obtained a boundary line adjustment designed to constrain the property with critical areas necessitating the need for an RUE.” The City has not accused the Applicant or his predecessor of purposely engaging in the kind of conduct involved in Kinderace. The legal effect is the same, however, because the Applicant’s predecessor combined the two lots for purposes of development and thereby caused the southern lot to become unbuildable as the mitigation site for the northern lot's development City of Bainbridge Island’s Motion for Reconsideration, dated October 24, 2022. Attorneys Piper Thornburgh and Stephanie Marshall submitted a response to the City’s reconsideration motion on behalf of the Applicant, dated November 10, 2022, arguing: • The Hearing Examiner thoroughly set forth the reasons why the current application and the two properties owned by the Applicant are distinguishable from the factual scenario considered by the Kinderace court, and the City does not present any new arguments about the application of Kinderace to the current matter. The reasons for the distinction between the present matter and Kinderace are based on the facts found by the Hearing Examiner, all of which are supported by substantial evidence. • There is no record documentation that would put a future owner on notice of the City’s new claim that the two parcels were consolidated under a single development plan. There is no evidence to refute the fact that the two parcels owned by the Applicant are separate and distinct legal lots that have not been consolidated and, therefore, have individual value as potentially developable parcels. There is also no requirement or Decision on City’s Request for Reconsideration City of Bainbridge Island Hearing Examiner White Reasonable Use Exception and Variance Nos. PLN51498 RUE; PLN51498 VAR Page 3 of 5 condition in the 2005 RUE that any use of the subject property would have been required for development of the north parcel, such that development restrictions on the subject property should have been recorded against title. • Neither the Applicant nor his predecessor attempted to manipulate lot lines or parcel sizes to gain additional development rights, and there is no evidence that development on the north parcel was made possible by the ability to include mitigation on the south parcel. Applicant’s Joint Response to Motions for Reconsideration, dated November 10, 2022. ANALYSIS Bainbridge Island Municipal Code (BIMC) 2.16.100.C.7 governs motions for reconsideration of the Hearing Examiner’s decision, and provides, “The rules of procedure adopted under BIMC 2.14.030.C.2.b shall allow a party of record to file, within a reasonable period of time specified by such rules, a motion for reconsideration of a recommendation or decision issued by the hearing examiner.” In addition, Section 1.9.4 of the Rules of Procedure for the Hearing Examiner states: Any party of record may file a written request for reconsideration with the Hearing Examiner within ten (10) working days of the date that the Hearing Examiner’s recommendation or decision is rendered. The request shall explicitly set forth alleged errors of law, fact, or procedure, or the discovery of new evidence that was not reasonably available at the time of the hearing conducted by the Hearing Examiner. As set forth above, the City contends in its reconsideration motion that the Hearing Examiner erred by failing to rely on Kinderace to determine that the Applicant had already derived a reasonable use of the subject property and would therefore be precluded from obtaining approval of the current RUE application. The City’s reconsideration motion, in essence, reasserts the same arguments it raised at the hearing, which the Hearing Examiner considered and addressed in the decision approving the RUE. The Hearing Examiner has reviewed these same arguments as presented in the City’s motion for reconsideration and reaffirms his determination that Kinderace is distinguishable and does not support the conclusion that the Applicant is precluded from obtaining approval of the RUE request. Regarding the City’s argument that, like Kinderace, the previous 2005 RUE involved a joint development of both the adjacent northern parcel and the southern parcel, the Hearing Examiner’s decision acknowledged that the initial application clearly proposed a joint development of both parcels. The decision pointed out, however, that – as is common with the iterative permit review process – the project plans ultimately changed to relocate all of the proposed development to only the northern lot, with no construction proposed on the southern lot. The City’s argument that language in the initial application referencing both parcels conclusively establishes that the prior 2005 RUE involved a joint development of both parcels, Decision on City’s Request for Reconsideration City of Bainbridge Island Hearing Examiner White Reasonable Use Exception and Variance Nos. PLN51498 RUE; PLN51498 VAR Page 4 of 5 and therefore precludes a grant of the current RUE request, elevates form over substance and fails to recognize that the project as approved did not include development on the southern parcel. Regarding the City’s argument that mitigation on the southern lot was necessary to allow development on the northern lot as part of the previous 2005 RUE, the Hearing Examiner’s decision recognized that mitigation plantings had occurred on the southern lot but noted that, unlike in Kinderace, the record was unclear as to whether such plantings would have been required to support the previous development on the northern lot. Due to the lack of clarity on this issue, the Hearing Examiner conditioned the current RUE approval on a requirement that the Applicant submit a final mitigation plan demonstrating to the satisfaction of the City, following third party review, that mitigation for the current proposal would not rely on any mitigation plantings on the southern lot utilized in relation to the previous RUE approval. This condition sufficiently addresses concerns raised at the hearing that the mitigation required for the current proposal overlaps with the mitigation required for the previous 2005 RUE (such that neither proposal has appropriate or sufficient mitigation). The City’s argument about the Hearing Examiner’s reliance on the 2005 RUE not requiring consolidation of the two lots or the inclusion of the southern lot within the “no disturbance/restoration zone” misses the point. The Hearing Examiner’s decision did not rely on this fact as determinative of whether a joint development had occurred but, rather, to highlight that there was no clear indication that the 2005 RUE decision would result in the southern lot becoming undevelopable in the future. This stands in contrast with the facts underlying Kindercare, in which the boundary line adjustment “contained an ‘Approval Note’ which stated that ‘This Request Qualifies for Exemption under SMC 19.20.010. It Does Not Guarantee the Lots Will be Suitable for Development Now or in the Future.’” 194 Wn. App. at 840. Finally, the City’s argument about the Hearing Examiner’s reasoning in distinguishing Kinderace on the basis that “neither the Applicant nor his predecessor obtained a boundary line adjustment designed to constrain the property with critical areas necessitating the need for an RUE” is also inapposite. It is not significant to the Hearing Examiner’s decision that no boundary line adjustment occurred in this matter that created the need for a RUE, or that there has been no malicious intent on the part of the Applicant or Applicant’s predecessor in creating the need for a RUE. Rather, the decision in Kinderace reasoned that a RUE would be inappropriate where, “by design,” a subject parcel’s boundaries were changed to be completely constrained by critical areas because this would thwart the purpose of environmental regulations. 194 Wn. App. at 840, 844-45. That did not occur here and, therefore, the Hearing Examiner’s decision determined that Kinderace is also distinguishable on that basis. In short, the Hearing Examiner determines that the City’s arguments in its motion for reconsideration are unavailing, and the Hearing Examiner reaffirms his previous determination Decision on City’s Request for Reconsideration City of Bainbridge Island Hearing Examiner White Reasonable Use Exception and Variance Nos. PLN51498 RUE; PLN51498 VAR Page 5 of 5 that Kinderace is distinguishable from the present matter as set forth in the decision granting the Applicant’s RUE application. DECISION Because no substantive error regarding the Hearing Examiner’s decision has been shown, the City’s motion for reconsideration is DENIED, and the October 11, 2022, decision is affirmed. DECIDED this 1st day of December 2022. ANDREW M. REEVES Hearing Examiner Sound Law Center