Sammamish weighs future of property "lottery"

Officials in Sammamish are deciding whether to repeal or amend a controversial growth-control ordinance approved last summer, after two rulings handed down last month blasted the measure, saying it violated state law and put unfair constraints on development.

The Growth Management Hearings Board ordered the city to comply with the state Growth Management Act by May 22. The city did not appeal the decision by Friday's deadline.

The city ordinance is based on a unique lottery system — the first of its kind in the state — where winners can develop their property in the next two years while losers must wait until August 2007 to even submit another application. Builders argue it illegally hinders growth.

"We have to look at the decision and try to correct the ordinance based on that finding of fault," said Kamuron Gurol, the city's community development director. "The hearings board has taken away a tool that we thought was a pretty good one."

A King County Superior Court judge also ruled that the city has to accept applications for 558 new lot developments that it rejected last August. Gurol said the city is weighing an appeal on that decision.

"There are damages that could potentially be very expensive if the city did not prevail," he said. "Like any other prudent person, the city is trying to decide what's the best course."

Sammamish, one of King County's fastest-growing communities, has found itself in a complex crossfire of litigation from builders after passing a series of growth moratoriums since 1999 to stem development.

Contention grew after the city adopted the "growth-phasing" ordinance in July, which allows 840 parcels to be developed for housing over two years. The first lottery was held in October.

City officials say phasing in development over time is necessary to give Sammamish, which incorporated in 1999, a chance to catch up on its infrastructure projects. The city cited traffic congestion and overcrowded schools among its top concerns to keeping up with development.

In its decision, the hearings board found that Sammamish did not need growth phasing to deal with infrastructure problems.

"The decision shouts to local jurisdictions that you can't skirt the Growth Management Act," said Tim Attebery, lobbyist for the Master Builders Association of King and Snohomish Counties, which filed the lawsuit.

Growth phasing "is an artificial way to limit growth and it's been shot down by the GMA police," he said.

Builders also took their complaints on the development moratorium to the hearings board last year.

In August, the board ruled the moratorium invalid and ordered the city to do away with it — two days before it was set to expire anyway and the growth-phasing ordinance was to take effect.

This left a small window with no moratorium for developers to apply for building permits. Applications were submitted for more than 600 units, but most lacked a crucial water certificate and were rejected.

Sonia Krishnan: 206-515-5546 or skrishnan@seattletimes.com