A Lynden-based developer may have to come up with a new proposal after the Anacortes Planning Commission turned down a plan to build 14 condominium units and a retail space at Ninth Street between Q and R avenues, citing a desire for more commercial space at the location.

Homestar NW was seeking approval to put up four condominium buildings overlooking the Cap Sante Boat Haven. The Marina Place Condos were expected to range in price from $500,000 to $1 million and range in size from 1,500 to 2,100 square feet.

The property is zoned commercial marine.

The original proposal included an 800-square-foot retail space that the developer increased to 1,200 square feet after an initial hearing Sept. 24.

Even with the addition, the commissioners said it just wasn’t enough commercial space. The commission denied a shoreline permit and conditional use permit at its Oct. 8 meeting. The developer can appeal the conditional use permit decision to the Anacortes City Council or return to the Planning Commission with a new proposal.

At the meeting last Wednesday, Homestar NW representative Tim Wiersma said the land, which is being used as a temporary dog park, is a good transitional space. He said the project would bring new money to town and add vitality to the downtown.

The company planned to market the units to boat owners and marina users.

Representatives noted the land was for sale for years and if it was good for commercial development it would already have been done.

In a letter to commissioners, Wiersma said the covenants will allow all the ground floor units to be used for commercial purposes.

“This will allow for changing market conditions to dictate the actual use of those units,” he said. “Perhaps marine-related uses such as boat sales and tours, high-end home-based businesses or a small sit-down coffee shop will be located there.”

Commissioner Clay Leming questioned if someone would actually buy a $500,000 unit and turn it into a retail space. If the downstairs units are not likely to be converted into retail uses, he questioned the need for a covenant specifying that.

“It wouldn’t be worth the paper it’s printed on,” he said.

The other residential units allowed on commercial marine zoning, most recently two developments at Ship Harbor, were in the West End, which is largely residential. Leming said this land doesn’t have the same feel.

“This parcel basically is the first CM zone on the waterfront going south,” he said. “I don’t think you’ve come anywhere near what we might do.”

Leming had problems with the ratio of residential to commercial space and allowing residential units on the ground floor, as outlined in the city’s comprehensive plan.

The plan states residential development “shall be located above the ground floor, with the ground floor reserved for non-residential commercial marine uses.”

“A token one unit for commercial doesn’t meet, in my opinion, what we’ve done in the last year or so,” he said. “I think you need to really convince me by just allowing you to have residential with one little unit is in the best interest of the city.”

Leming said the city needs retail and commercial development to keep up its infrastructure. And though the project may bring short-term benefits to the city, he said once the units are sold the money will go out of town.

“I’m concerned about the highest and best use for the city of Anacortes,” he said.

Commissioner Lin Folsom noted other residential developments allowed in the CM zone have given something to the city, such as a trail or park. She said the Marina Place Condos development doesn’t have a public benefit.

Other commissioners agreed.

Commissioner Marty Laumbattus said the project is not right for the site and doesn’t meet enough of the goals from the comprehensive plan.

“I can’t support this project,” he said.

Commissioner Larry Nelson said he would like to see at least one of the other buildings have commercial use on the bottom floor.

“I believe there needs to be more commercial space, more mixed use in this project,” he said.

Commissioner Stuart Janke urged planners to consider the best use for the city, not the landowner. He said the east side of the island would be residential if it were up to developers, but that’s not what’s in the best interest of Anacortes.

“This is going to set the precedent for what happens. I think we need to look at this very, very closely,” he said.





Comprehensive plan goals

The city’s recently completed comprehensive plan includes a section on commercial marine goals and policies. Goals include:

(1) Preserving the CM areas for commercial enterprise where orientation to the waterfront and waterway areas is of prime importance to marine, commercial and tourist activities.

(2) Require a public access element in all development plans abutting shoreline where appropriate.

(3) The zoning ordinance for Commercial Marine should strongly encourage marine, commercial and tourist developments that are water and waterview-dependent, destination oriented and enhance the marine values inherent in the district such as physical and visual access to waterways and shoreline.

(4) The zoning ordinance for Commercial Marine 1 may allow limited residential development, provided the residential development is integrated with and contributes to marine, commercial and tourist developments that are water and waterview-dependent, destination oriented and that enhance marine values inherent in the district.

Visit http://www.cityofanacortes.org/Planning/CompPlans/CompPlan07/chapters/chapter3.pdf.