Port Townsend sends counteroffer for appeal on comprehensive plan

Published 1:30 am Thursday, April 16, 2026

PORT TOWNSEND — The city of Port Townsend has sent a counter proposal to Affordable Hometown Port Townsend after it rejected a settlement offer last month.

AHPT’s settlement offer, sent March 18, came after it filed a petition of appeal with the state Growth Management Hearing Board (GMHB) in February for the city’s comprehensive plan, which it adopted in December. The appeal focused primarily on new zoning changes and an absence of specific requirements for affordable housing.

The city’s counteroffer letter, dated Friday, was addressed to Affordable Hometown’s (AHPT) lawyer, Bryan Telegin of Telegin Law PLLC.

“While the city appreciates AHPT’s expressed interest in resolving this appeal, the city cannot accept the proposed settlement,” City Attorney Austin Watkins wrote.

Three reasons were listed for the city’s rejection.

First, the city denied AHPT’s requested moratorium on the regulations set forth when the comprehensive plan was adopted through Ordinance 3361, including Port Townsend Municipal Code 17.16.030 and related zoning provisions.

Next, the city denied the petitioner’s request to undergo an Environmental Impact Statement (EIS), a request found in the settlement but not in the original GMHB petition.

“Requiring an EIS at this stage would be inconsistent with the existing (State Environmental Policy Act) record, would require substantial public expenditure, and would significantly delay implementation of adopted affordable housing strategies,” Watkins wrote.

Finally, the city stated that agreeing to AHPT’s terms would predetermine legislative outcomes — such as density limitations, inclusionary zoning requirements and landlord tenant protections — without a public process. Accepting the settlement would violate the state Growth Management Act’s mandate for early, continuous and meaningful public participation, Watkins wrote.

The city’s offer included a potential revision of its land capacity analysis (LCA) as well as the comp plan’s housing element.

Revision to the LCA might include examining income banding and additional adequate provisions for existing and projected needs of all economic segments of the community, Watkins wrote.

“This does not include updating the sufficiency analysis of available property to meet housing needs for all economic segments of the community,” he added. “As demonstrated in the (current) LCA, the City has sufficient land capacity to serve all economic segments of the community based on the unit type for that income band.”

Potential revision to the housing element would vet for compliance with RCW 36.70A.070(2). The state law mandates that cities, under the Growth Management Act, must include an inventory and analysis of existing and projected housing needs that identifies the number of housing units necessary to manage projected growth, including moderate, low, very low and extremely low-income households.

If the counteroffer is accepted, the city will commit to undertake an affordable housing funding study, which would include analyzing tools such as inclusionary zoning, tailored to Port Townsend’s market conditions.

Such a study is already included in the city’s 2026 work plan and adopted budget and will be conducted in a public process, Watkins wrote.

The city also would commit to performing a landlord tenant protection study, focused on identifying anti-displacement measures appropriate to Port Townsend’s market, Watkins wrote.

“If your clients are unwilling to accept the City’s counteroffer and your clients still wish to pursue settlement, the city strongly recommends that counsel and the parties, appellants and city staff, meet to discuss this matter and have good faith settlement discussions to see if a settlement is possible,” Watkins wrote.

The counteroffer will expire on May 15, unless rejected sooner by AHPT, Watkins wrote.

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Reporter Elijah Sussman can be reached by elijah.sussman@peninsuladailynews.com