BI finds partner for affordable housing project

Bainbridge Island has found a partner for the city’s affordable housing project at the site of the former police station.

At the City Council meeting Aug. 13 city leaders are expected to authorize city manager Blair King to negotiate with Low Income Housing Institute for development and operation of affordable housing at 625 Winslow Way.

Since construction of the new police station on Madison Avenue, the city has been looking at the old site for a public-private partnership for affordable housing to provide homes for workers in the community and seniors.

The city anticipates a 100-unit mixed-use development using tax-exempt bond financing and the Federal 4% Low Income Housing Tax Credit. Six firms responded. An interview committee of city staff, a city consultant, a City Council member, a Planning Commission member, and a member of the Race Equity Advisory Committee recommended three firms to interview. LIHI was selected and is expected to finance, construct and operate the development for no less than 50 years as an affordable housing property. LIHI has 400 employees, a budget of $63 million, $580 million in assets and $36.7 million in cash. It has partnered with numerous cities and counties in the state on similar projects so it is highly qualified, city documents state.

In a related matter, the council will look at using eminent domain to acquire the “notch” property at 180 Olympic Drive that is surrounded by the city property. The parcel is .11 of an acre and the city property .89 of an acre. Fair-market value is $825,000. Owners of the investment property have not responded with a counter-offer of the city’s $880,000 offer, which is 10% more than the appraisal. Eminent domain allows the acquisition of property for public good. The property is southeast of the former police station.

Also, in accordance with the Sustainable Transportation Plan, the council will discuss a Winslow Circulator and other transit mobility improvements. The council has expressed the desire for those due to the lack of public transportation on BI, especially at night and from the ferry dock, between Winslow and Lynwood Center, and connecting Winslow to other business areas. Rather than wait for the next funding cycle, some councilmembers mentioned there is $117,000 from the Transporation Benefit District from the $10 increase in local vehicle license fees. About $30,000 would be needed for baseline information such as potential ridership, costs, regulations, technology, service providers and operations for improved public transit.

Meanwhile, the council will receive a recommendation from the Planning Commission regarding Hotel Land Use Regulations. Hotels are not allowed in downtown Winslow, only on High School Road. In June, the commission discussed a definition for hotels: Buildings that contain guest rooms where lodging is provided for transient visitors. Members want to discourage vehicle traffic, instead having customers use shuttles or bicycle rentals. The commission also wants to require water conservation and, limit size, such as 60 rooms, depending on the zoning. The city temporarily stopped allowing hotels downtown in October of 2021 and is just now coming up with options. Staff initially talked of different categories of hotel, such as boutique and resort, differentiated by scale and allowed accessory businesses. Further action isn’t anticipated until the Winslow Subarea Plan is done.

The council will receive an update on the Groundwater Management Plan. A consultant is looking at sea level rise, precipitation, population increases and groundwater recharge impacts. Results, analysis and draft management strategies will be presented to the council next month. Sea level rise alone is expected to be anywhere from 2.8 feet to 6.9 feet in the next 100 years. In that same timeframe, population could be anywhere from 46,380 to 70,010.

The council plans to have the Planning Commission continue to do the work of the Historic Preservation Commission through 2025-26. The historic commission resigned en masse a few months ago due to the council’s alleged lack of support. The city didn’t get interest from seven people to replace them. So, the Planning Commission took over the duties and will continue to until the next biennium.

In other news

The council will have a public hearing on allowing Finch Green as an expansion of the city’s multi-family tax exemption, which encourages affordable housing. This one, at Bethany Lutheran Church, was just outside the previous boundary.

The council will learn of a federal grant of $1.7 million for the Sound To Olympics Trail.

On the consent agenda, the council will authorize: King to advertise for the Wastewater Treatment Plant Outfall Extension Project; a change order for the Ferncliff Avenue Water Main Extention Project for almost $125,000; and a change order for more than $766,000 for the Bundled Madison Avenue Nonmotorized Improvement Project.

Finally, Squeaky Wheels, a bicycle advocacy group, will be recognized for donations in support of Dana’s Trail improvements.