Two applications for city growth being reconsidered

Paige Richmond

of the Gateway

Two major annexations before the Gig Harbor City Council could increase the city’s size and population by more than 25 percent — if a few roadblocks are removed first.

The 96th Street annexation, which would bring a large piece of land commonly known as the “Donut Hole” into city limits, has been held up since last month after Pierce County invoked jurisdiction over the land, essentially appealing the city’s decision to annex.

Residents of the Canterwood neighborhood had their first public meeting last Monday, requesting that the city annex their 715 acres into city limits. Only a few days later, the Canterwood Homeowner’s Association sent the mayor a letter expressing hesitation about the annexation process due to increased tax rates.

At the same time, the city council is cautious about annexing Canterwood because of the potential cost of the process.

The city hopes to figure out the next step for both annexations by the end the year — if everything goes smoothly.

A law against cemeteries

For all intents and purposes, the 96th Street annexation should have moved forward easily. The application for annexation was completed earlier this year, and most residents and developers in the area were in favor of the process.

But an old law got in the way.

The potential annexed property includes Haven of Rest, a funeral home that has served the Gig Harbor area for 60 years — and cemeteries are illegal inside city limits.

That means if Haven of Rest were to become part of the city, it could potentially be fined just for going about its daily operations. The cemetery could never expand — not even onto property it already owns but is not using.

That future was unacceptable to Haven of Rest, which contacted Pierce County Council Chair Terry Lee. He decided to invoke the county’s jurisdiction over the land, which is part of the Urban Growth area.

“Some businesses could be perfectly fine without having a right to expand. The cemetery isn’t,” Lee said. “They have to expand — it’s expected, it’s planned for. And to put a road block in front of them would be problematic.”

Instead, the city is attempting to find a way to work around it. At a council meeting in September, one of two ordinances to allow Haven of Rest to exist as a conditional use was approved.

George Nelson, funeral director at Haven of Rest, is optimistic the city will sort this issue out.

“We’re pleased with the progress that the city is making toward the issue,” he said, adding that “we just want the answer (before annexation), rather than coming in an unacceptable format” and having to deal with the situation later.

From the city’s perspective, the cemetery issue — and the Pierce County Boundary Review Board meeting on Nov. 18 — is just a formality.

“I think everyone is in agreement to what the ultimate outcome would be,” City Planning Director Tom Dolan said. “There’s just process time.”

When money is the bottom line

If everyone is in agreement about the 96th Street Annexation, there’s much less common ground between the city and the Canterwood Homeowner’s Association.

Last week’s city council meeting was the first public meeting in the Canterwood neighborhood’s application to be annexed. The city hired a consultant to evaluate whether or not annexing the 715 acres of land, 660 homes and 1,650 people inside the gated community would be financially beneficial to the city.

The council tabled the annexation proposal and will vote on whether to move forward on Monday.

From Canterwood’s perspective, there are advantages to being inside city limits. For one, the neighborhood would be serviced by Gig Harbor Police, and residents would be able to vote on city policy.

From the city’s perspective, annexations come down to dollars and cents.

“The problem with this annexation — and any annexation — is a cash flow problem,” consultant John Spencer said at last Monday’s meeting.

As an example, Canterwood’s use of the city’s police force would require the city to hire more police officers. Plus, the city would need to devote staff time to prepare the annexation process, including modifying the comprehensive plan to match up with Canterwood’s density.

Dolan agreed, pointing out that annexations of mainly residential areas tend to cost the city more than those involving commercial areas.

In the end, the city would see a net gain of $70,000 a year — not a large sum, considering Canterwood is the largest annexation into city limits since the entire west side of Gig Harbor was annexed in the 1990s, and it would increase Gig Harbor’s size by 25 percent.

The economic cost or gain can be a driving factor in some council members’ decisions to approve an annexation.

“I look at them from an economic standpoint,” council member Steve Ekberg said. “If it’s not going to make economic sense to the current taxpayers of the city, I’m not going to put on them that expense or burden.”

The annexation no longer seems to have financial benefits for Canterwood residents, either. Russell Tanner, a board member for the Canterwood HOA, said the main reason residents were interested in annexing was a possible reduction in taxes. Instead, each resident will pay about $200 more per year if they become part of the city.

On top of that, Canterwood’s water and sewer systems aren’t up to city standards. It’s likely a pre-annexation agreement would require Canterwood residents to pay for improving those systems, which could cost millions of dollars.

Tanner also believes the city would benefit from the annexation more than the consultant suggested. He said the city could make $300,000 to $400,000 per year, rather than $70,000.

The financial costs give Tanner pause about moving forward with the annexation and makes him question the city’s motives.

“It seems like the city is saying, ‘Hey, they want to be annexed, so let’s see what we can get from (Canterwood) if they are annexed,’” he said.

Mayor Chuck Hunter insists there’s very little financial benefit to the city if Canterwood is annexed. Financial costs are a big concern for the city right now, given projected budget shortfalls in 2009.

“In the short term, it’s not a real positive for us. It would cost us money to get ramped up to do it. In the first few years, it would cost us, and I don’t know that we’re in a position to make those commitments,” he said. “Especially with the budgeting situation the way it is today.”

Next Canterwood hearing

The Gig Harbor City Council will decide whether to move forward with annexing Canterwood during a regular council meeting at 6 p.m. Oct 27 at the Gig Harbor Civic Center, 3510 Grandview St. Input from the public is welcome.

Reach reporter and columnist Paige Richmond at 253-853-9243 or by e-mail at paige.richmond@gateline.com.