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Ordinance No. 2023-05 Dev. Agreement with PSE Resolve SEPA Appeal (Approved 02142023){JEH2752891.DOCX;1/13023.150015/ } Page 1 of 3 ORDINANCE NO. 2023-05 AN ORDINANCE of the City of Bainbridge Island, Washington, adopted pursuant to RCW 36.70B.170, et seq., approving a development agreement between Puget Sound Energy and the City of Bainbridge Island limiting the uses on the Winslow Substation Site to utility uses if the Comprehensive Plan Designation is amended and the Winslow Substation Site is rezoned to Business/Industrial to resolve a SEPA Appeal filed by the Stetson Ridge Homeowners Association; authorizing the City Manager to execute the development agreement on behalf of the City; and establishing an effective date. WHEREAS, Puget Sound Energy (“PSE”) is the owner of real property (“Winslow Substation Site”) located on the north side of NE Bucklin Road one lot east of Fletcher Bay Road NE in Bainbridge Island, Washington. The Winslow Substation Site is currently developed as an electric utility substation providing for the electrical energy needs of the Bainbridge Island community; and WHEREAS, the Winslow Substation Site is currently designated Residential under the Bainbridge Island Comprehensive Plan and zoned Residential – One Unit per 2.5 acres (“R-0.4”) under the Bainbridge Island Zoning Code. PSE has applied for a Comprehensive Plan Map Amendment and a Rezone to change the Comprehensive Plan designation and Zoning Map designation to Business Industrial (“B/I”). The applications have been given City File Nos. PLN52149 CPA and PLN52149 REZ; and WHEREAS, PSE intends to continue the current electrical substation use but has requested the redesignation and rezone to facilitate further development of electrical facilities on the Winslow Substation Site without having to comply with the Aquifer Recharge Protection Area (“ARPA”) requirements that apply to the City’s residential zones; and WHEREAS, the Stetson Ridge Homeowners Association has filed an appeal of a Determination of Nonsignificance (DNS) issued by the City under the State Environmental Policy Act (SEPA) for the Winslow Substation Site Comprehensive Plan Amendment and Zoning Map Amendment because the Stetson Ridge Homeowners Association is concerned about uses other than the current electrical substation uses that could be made on the Winslow Substation Site if the Site is redesignated and rezoned to B/I; and WHEREAS, PSE has agreed to limit the uses on the Winslow Substation Site to utility uses to resolve public concerns and the City administration, PSE, and the Stetson Ridge Homeowners Association have agreed that a development agreement entered into by the City and PSE pursuant to RCW 36.70B.170, et seq., is an appropriate mechanism for doing so; and WHEREAS, the Stetson Ridge Homeowners Association has agreed to dismiss its appeal of the DNS for the Winslow Substation Site if a development agreement limiting the Site to utility uses is entered into and recorded; and WHEREAS, the City of Bainbridge Island has the authority under RCW 36.70B.170, et seq., to enter into development agreements with the owners of property that fix the uses that may be allowed and the standards that will be applied to development for a time period stated in the development agreement. Pursuant to RCW 36.70B.200, a development agreement may be approved only after the City Council holds a public hearing on the development agreement and finds that the development agreement is consistent with applicable development regulations; and {JEH2752891.DOCX;1/13023.150015/ } Page 2 of 3 WHEREAS, pursuant to notice published in the Bainbridge Island Reporter, the Bainbridge Island City Council held a public hearing on a proposed development agreement for the Winslow Substation Site on February 14, 2023; and WHEREAS, the proposed development agreement does not commit the Bainbridge Island City Council to approve the Comprehensive Plan Amendment and Zoning Map Amendment requested by PSE, which will be approved or denied after completion of a separate process involving at least one public hearing before the Bainbridge Island Planning Commission and further consideration by the Bainbridge Island City Council. Approval of the proposed development agreement will allow that process to proceed, however, after the appeal of the DNS is dismissed, and will become effective only if the Comprehensive Plan Amendment and Zoning Map Amendment are approved; and WHEREAS, after considering all testimony received at the February 14, 2023 public hearing, including but not limited to, the support of PSE and the Stetson Ridge Homeowners Association for the development agreement, the Bainbridge Island City Council has decided to approve the development agreement in substantially the form attached to this ordinance and to authorize the City Manager to execute the same on behalf of the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Findings. The Bainbridge Island City Council finds that entering into a development agreement with PSE for the Winslow Substation Site to resolve the pending DNS appeal is in the public interest. The Council further finds that a development agreement in substantially the form attached to this ordinance as Exhibit A is consistent with the Bainbridge Island Comprehensive Plan and the City’s development regulations. The recitals set forth above are adopted as additional findings in support of this ordinance. Section 2. Approval of Development Agreement and Authority of City Manager to Execute. Based on the findings made in Section 1, the Bainbridge Island City Council hereby approves the development agreement for the Winslow Substation Site in substantially the form attached to this ordinance as Exhibit A. The City Manager is hereby authorized to execute the development agreement in substantially the form attached on behalf of the City. Section 3. Recording. Pursuant to RCW 36.70B.190, the City Manager or his designee shall ensure that the development agreement is recorded in the property records of Kitsap County, Washington to bind the parties and their successors and assigns. Section 4. Effective Date. This ordinance shall take effect and be in full force five (5) days from its passage and publication as required by law. PASSED BY THE CITY COUNCIL this 14th day of February, 2023. APPROVED BY THE MAYOR this 14th day of February, 2023. Brenda Fantroy-Johnson, Mayor {JEH2752891.DOCX;1/13023.150015/ }Page 3 of 3 ATTEST/AUTHENTICATE: Christine Brown, MMC, City Clerk FILED WITH THE CITY CLERK: January 20, 2023 PASSED BY THE CITY COUNCIL: February 14, 2023 PUBLISHED: February 24, 2023 EFFECTIVE DATE: March 1, 2023 ORDINANCE NO. 2023-05