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(1) Following notice and public hearing as prescribed in RCW 84.14.040, the City Council may, in its sole discretion, designate one or more residential targeted areas. Each residential target area must meet the following criteria, as determined by the City Council:

(a) The residential targeted area is within a designated mixed-use center;

(b) The residential targeted area lacks sufficient available, desirable, and convenient residential housing, including affordable housing, to meet the needs of the public who would be likely to live in the mixed-use center if affordable, desirable, attractive, and livable residences were available; and

(c) Providing additional housing opportunities, including affordable housing, in the residential targeted area will assist in achieving one or more of the following purposes:

(i) Encourage increased residential opportunities within the target area; or

(ii) Stimulate the construction of new multifamily housing; or

(iii) Encourage the rehabilitation of existing vacant and underutilized buildings for multifamily housing.

(2) In designating a residential targeted area, the City Council may also consider other factors, including but not limited to:

(a) Additional housing, including affordable housing units, in the residential targeted area will attract and maintain an increase in the number of permanent residents;

(b) An increased permanent residential population in the residential targeted area will help to achieve the planning goals mandated by the Growth Management Act under Chapter 36.70A RCW, as implemented through the City’s current and future comprehensive plans;

(c) Encouraging additional housing in the residential targeted area is consistent with public transportation plans; or

(d) Additional housing may contribute to revitalization of a distressed neighborhood or area within the City.

(3) At any time the City Council may, by ordinance, and in its sole discretion, amend or rescind the designation of a residential targeted area pursuant to the same procedural requirements as set forth in this chapter for original designation.

(4) The following areas are designated as residential targeted areas under this chapter:

(a) Town center district (TC) as defined in CMC 18.15.080(1).

(b) Mixed housing/office district (MHO) as defined in CMC 18.15.080(4).

(c) R-18 (multifamily residential) zone as defined in CMC 18.15.050(1)(b).

(5) If a part of any legal lot is within a designated residential targeted area then the entire lot shall be deemed to lie within such residential targeted area. Property located outside of, but adjacent to, the described areas is not designated as residential targeted areas. (Ord. 13-12 § 1 (Exh. 1); Ord. 05-12 § 1 (Exh. 1))