Council takes steps to bring Home Trust’s Argyle project closer

To meet the state federal funding cycle for the affordable housing project on Argyle, the San Juan Island Community Home Trust must have a Development Agreement with the Town of Friday Harbor. A few sticking points between the two parties prompted Town Planning Director Ryan Ericson to write a memo to the Town Council asking for direction on draft language in the DA regarding those issues. During the Aug. 21 meeting, Council worked through the topics one by one, and a public hearing on the DA is being scheduled for Sept. 18.

Several individuals spoke during the public access time prior to the discussion.

“There is a lot in Ryan’s memo that is going to sound complex, but it’s just one part of the story,” Home Trust President Paul Fischburg told the Council, reiteraterating that having a DA is essential for state funding, and the state’s deadline is in October.

Home Trust Director Amanda Lynn spoke next, touting the Trust’s bold and innovative affordable housing leadership, noting that the Holli Walk neighborhood exceeded expectations with its solar project.

Argyle Project Manager Karl Eberhard pointed out clarity issues with some of the staff’s proposed anguage and noted that the historical review setback requirements would make it difficult to meet 24 units per acre.

County Council Chair Kari McVeigh spoke as a citizen, urging the Town to schedule a public hearing as soon as possible.

San Juan Islander Steve Ulvi reminded the Council that low and moderate-housing in town is key to economic diversification, and that Argyle and similar permanently affordable housing projects are “a precious gift that will keep on giving.”

Waiving appeal rights was noted in a couple of places. Lynn told the Journal that they could not negotiate away their rights.

“A small nonprofit like ours would never enter into a $27 million project without appeal rights, especially utilizing and stewarding public funds,” Lynn said. “We hope we don’t need them … but from a responsibility standpoint, as agents of these public funds, we have to be able to appeal.”

Staff recommended language stated “The Land Use Administrator’s decisions on project compliance with the DA may not be appealed to Town Council. This provision does not remove any appeal rights afforded to the Developer under Washington State Law.”

During the Aug. 21 meeting, Town Administrator Denice Kulseth explained to Council that Ericson’s intent was not to strip the Home Trust of appeal rights, but to streamline the appeal process and bypass appeals to Council.

“I understand where Mr. Ericson is coming from, and I understand the reasoning behind it. However, I also want to work with the Home Trust and I want to be able to come to the table together,” Council member Barbara Starr said. “I would be willing to eliminate that provision in order to move things forward.”

The rest of the Council agreed, and a motion to accept the Home Trust’s language in Section 2(B)(5) of the DA passed.

The Home Trust also took issue with Section 2(C) of the proposed DA. Staff recommended language stating that “The San Juan Community Home Trust must demonstrate prior experience managing a construction project or similar scope and cost to that of the proposed project, or contract management services with a party that is able to demonstrate prior experience managing a construction project of similar scope and cost …”

Kulseth told Council that it was actually her idea for that language, given issues with the Holli Walk project. She also explained that it wasn’t unusual for DAs to have such language.

Lynn told the Journal that she had not hired the project manager for Holli Walk; they had hired that person before Lynn was hired. She also pointed out that Eberhard has 40 years of affordable housing experience.

Council ultimately agreed with the Home Trust, after questioning how the Home Trust would prove such experience, and noted that it is the County, the Home Fund and the Home Trust’s responsibility.

While the Council did agree with the staff recommending language regarding setbacks and other requirements in accordance with the Historical Preservation Design Manual, Council also moved to adopt staff-recommended language increasing the density to 24 units per acre.

The Council also accepted staff recommendations regarding tolling and deadlines, noting that Ericson had given up some of his review time, limiting himself to 60 days rather than 90.

There was a second public access time after the discussion.

McVeigh applauded the Council and urged them to continue moving the project forward.

Eberhard thanked the Council as well. Noting that there were some minor issues, such as the language around solar panels, but that they would be for another day. “We appreciate your clarity and your answers,” he said.

“I have to confess I was holding back tears at multiple points of this conversation because of the thoughtful work you were doing,” Lynn told the Council.