Kirkland City Council Special Meeting - July 6, 2022: Google Campus Project and Development Agreement Study Session

The Kirkland City Council held a special meeting on July 6, 2022, in a hybrid format (Zoom/City Hall) to conduct a study session on a proposed development agreement between the City and Google, LLC for a new Google campus project in the Northeast 85th Street Station Area. The meeting included presentations from city staff and Google representatives, followed by council discussion. No public testimony was taken; a public hearing is scheduled for July 11, 2022. Councilmember Pascal was excused.

Public Comments & Testimony

• There was no public testimony or comment at this study session. The Mayor noted that a public hearing on the development agreement will occur on Monday, July 11, 2022, at 6:00 p.m., and that a recording of this study session will be included as part of the record for that hearing.

Discussion Items

Google Presentation (Ian Goodhue, Mark Rowe, Abby DeWitt)

• Ian Goodhue (Head of Gov't & External Relations, Google) presented Google's site concept for a new campus on the Lee Johnson site at NE 85th Street. Key points:
  • Google has been in Kirkland since 2004 and wants to grow in Kirkland. The new campus would provide 6,000 new seats plus 1,000 supporting employees.
  • The project would be built in phases: initial two office buildings by 2027, two more by 2032.
  • The campus is designed to be one of the greenest Google campuses globally, targeting net-positive carbon, positive energy, positive water, and complete circularity.
  • Buildings would be constructed with mass timber (capped at 180 feet), but the development agreement allows up to 250 feet as a development envelope—though Google stated it does not intend to build occupied space to that height.
  • Community benefits include open public spaces (Cascades connection, North Pass, a west trail, and a southern prairie), pedestrian and bicycle infrastructure, and a $12.46 million community benefit incentive payment for affordable housing.
  • Transportation goals: reduce single-occupancy vehicle commute mode share to 15% (from current 54% at Kirkland campuses), promote transit (bus rapid transit station adjacent), bike/ped, and a fully electric G-bus fleet. Parking would be underground, and a mobility hub would be inside the campus.
  • Google is in discussions with WSDOT to activate land between the trail and I-405.

Staff Presentation (City Attorney Kevin Raymond, Deputy City Manager Tracy Dunlap, Planning Director Adam Weinstein, Transportation Manager Joel Fonden, Development Engineering Manager John Burkhaltar)

• Kevin Raymond outlined the development agreement (DA) background, noting the process began in 2018 with the station area plan. The DA provides certainty for Google and Lee Johnson to complete their transactions and ensures infrastructure and community benefits.
• Adam Weinstein explained entitlements: design review process retained but key site plan elements (building configuration) fixed; environmental review under station area plan EIS with planned action ordinance to avoid supplemental SEPA.
• Tracy Dunlap presented community benefits: open spaces, mid-block connections, and incentive payment. The amenities meet or exceed the incentive zoning requirements for the planned 180-foot mass timber building and even the 250-foot form-based code maximum.
• Joel Fonden covered parking and transportation: parking built to code (2 spaces/1,000 sq ft) in phases 1-3; phases 4-5 may reduce parking with enhanced TDM. Transportation improvements include bike lanes, signal upgrades, turn lanes, and frontage improvements on 85th, 120th, and 118th.
• John Burkhaltar addressed impact fees and concurrency: fees paid at time of building permit; eligible for credits for system improvements; sewer upgrades needed (SAP 6 & 7).
• Key DA terms: 10-year term with possible 5-year extension; $12.46M incentive payment due before phase 1 building permit, but 40% reimbursable if phases 4-5 not built; city can approve assignment; force majeure clause; no vesting for building/energy codes (but energy code to be added after council question).

Council Discussion

• Councilmembers asked questions about transportation (peak hours, G-bus routes, inter-campus transit), parking, EV charging (100% spaces with EV charging, some public), building height assurances, and the incentive payment repayment risk.
• Councilmember Black questioned the city's remedies in case of breach. Staff noted all legal remedies available.
• Councilmember Curtis expressed excitement about the project and the community benefits.
• Councilmember Falcone asked about affordability and the gondola concept for inter-campus connectivity.
• Deputy Mayor Arnold inquired about micromobility and partnerships with Metro/Sound Transit to boost transit mode share.
• Councilmember Nixon asked about latecomer agreements; staff clarified they would apply only to future development projects on 118th, not existing homeowners.

Key Outcomes

• The council took no action at this study session. The draft development agreement will be the subject of a public hearing on July 11, 2022, at 6:00 p.m., followed by potential council action at the regular meeting on July 19, 2022.
• City staff identified a correction to Section 20 of the DA (term extension language) to be reflected in the final document.
• Staff committed to adding energy code to the list of codes that do not vest (after Deputy Mayor Arnold's question).
• The next steps are: Public hearing on July 11; possible adoption on July 19.