March 9 Council Meeting
The meeting opened with an art month proclamation. It’s youth art month!
BASTYR PRESENTATION
Bastyr gave a presentation on their history. In July 2025 they found that they were $15m in debt and had $20m in deferred maintenance after losing $14m in the previous three fiscal years. They had a loan from US Bank and the bank forced them to sell, which is why the campus went up for sale and Bastyr sought a change in the master plan. The prior administration had been advised that it was worth $60m in the hands of a developer. A philanthropic Kenmore citizen came forward to help to avoid selling to a developer, so they worked out a private loan to take out US Bank and not have to sell the property.
They received a bid for $65m for all the property except the primary buildings and garden, but it would have meant a lot more council/staff time working through the proposed options, and they may have lost access to ballfields and trails.
Over the years Bastyr has seen a continued decline in enrollment, and they won’t be able to depend upon student tuition going forward. Graduating students with hundreds of thousands of dollars in debt also doesn’t work. Their vision is expanding Bastyr into a healing village rather than just an educational institution.
STAFF REPORTS
Tourism update: Nicole Suarez
Kenmore received a tourism grant for the wayfinding signs, and the banners on the light posts ($46k). The goal with the project is to support local businesses and increase engagement in Kenmore. The city also received a grant from the Port of Seattle. This was directed towards supporting shop local, website updates (for findkenmore.org) and tourism.
2026 projects are Oktoberfest sponsorship and 20 new banners along SR522.
Permitting & Development: Sam Loyuk
This presentation covered the broader housing/construction market as well as what we are seeing in Kenmore. Our permit fees are set to recover costs; not make a profit. Last year, a cost recovery study was done and determined we were losing money on permits. Fees were increased as a result. Since this is recovery and fluctuates, it should not be considered a stable revenue source.
The broader market prediction is gradual growth in construction, and the housing market has cooled. We have more homes for sale and fewer sold. Interest rates are still high (hovering around 6%), and although prices are lower than they were a few years ago, the high rates make the total cost of a loan substantially higher.
SB 5290 required jurisdictions to streamline permit timelines and report them. Last year was the baseline report; March 2025 data is the first time we are held to required timelines. Kenmore is in compliance with state-mandated requirements.
Short plats, long plats and site plan applications have been fairly consistent but pre-applications have declined. The pre-apps indicate what will be coming into the pipeline, so a slowing here indicates a future decline in permit volume.
Permit revenue is up. Permit fees are based on how much the project costs, and high value projects (the school) combined with the higher cost of standard projects (due to increase in construction material cost) have driven up permit value.
Building permit activity (new single family) peaked in 2021; multi-family in 2023/2024 likely due to 25 Degrees. ADUs and commercial tenant improvements are moderate but steady. They are seeing more interest in ADUs. Single-family homes are getting larger - the average size is 4,000sf + two car garage in Kenmore. Staff hopes the middle housing code that was passed will start to change this; developers are showing interest but it will take a while to change.
Discussion
CM Culver asked about the mismatch between the permit data for ADUs shown vs. our previous conversations that we only have a couple dozen ADUs in Kenmore. Sam clarified that we probably have more than a couple dozen, and this is just permit data and doesn’t reflect finished units.
CM Marshall asked about the average project length. Sam said it depends on the project and how efficient the applicant is with their application and planning. If you’re good, maybe a year and a half, two would be average.
COUNCILMEMBER REPORTS
CM Loutsis said that this Wednesday the Sound Cities Association will have a Policy Issues meeting and it will be about King Co. enacting a councilmanic .1% sales tax for transportation district to go towards bridges and rural road maintenance. There is a discussion on SCA about whether to support this. CM Loutsis requested input from other council members.
CM O’Cain said that we have too many other burdens coming our way and she doesn’t support it. If it happens, she’d like to see some of it to come back to Kenmore. DM Sasson and CMs Marshall and Adman echoed this.
CM Loutsis clarified that the tax would be 95% funded by incorporated areas, 5% by unincorporated areas. Mayor Herbig pointed out that these are roads that we all drive, so it makes sense that we pay for them.
