On April 14, 2026 the Bellevue City Council adopted ordinance no. 6911 to establish a development agreement (DA) pathway specifically for projects involving public-private partnerships (P3). The P3 DA land use code amendment (LUCA) updated Bellevue's land use code to allow for greater zoning and development flexibility when the city has ownership or control of property or is a major funder of a project, in order to advance city policy priorities including, but not limited to, affordable housing, environmental stewardship and economic development.
What is a Development Agreement?
A development agreement is a voluntary, legally binding contract between a local jurisdiction and a group or individual that owns or controls property within the jurisdiction. The agreement specifies the responsibilities of both parties and establishes the development regulations, standards, and conditions that will apply to the development of the property for the duration of the agreement. These agreements provide certainty to developers by agreeing to the applicable development regulations for the duration of the agreed term. In exchange for this certainty, a city may negotiate project specific commitments including mitigation of project impacts, clarification of phasing and timing, and provision of public improvements or amenities.
Once the development agreement is completed, it runs with the land and is binding on the parties and their successors. Development agreements are allowed under state law through the Local Project Review Act (Chapter 36.70B RCW). Development agreements are reviewed and approved through a City Council process and are negotiated at the project level as contracts executed by the council.
Existing Development Agreement pathways in Bellevue
The land use code allows for development agreements in certain situations and areas of the city to advance defined policy objective. For example, in Downtown, development agreements may be used for the siting of pedestrian bridges for council review of the “Flexible Amenity” option within the amenity incentive program. That option allows applicants to propose an amenity that Is not listed among the standard downtown amenities when it would substantially increase downtown livability, with council determining whether the proposal meets this threshold through the development agreement process.
Similar flexibility exists in East Main, where development agreements are authorized for transit-oriented redevelopment projects that provide higher levels of affordable housing or propose a “Flexible Amenity”. In Wilburton, development agreements are authorized for sites abutting the Grand Connection to provide substantial development flexibility in exchange for delivery of that major public connection. Development agreements may also be used throughout the city to site homeless services uses.
The most prominent example of a development agreement in the city is the BelRed Spring District Catalyst Project. In 2009, the city executed a DA with the developer Wright Runstad for the Spring District, providing long term regulatory certainty and reduced incentive fee in lieu rates over a 15-year vesting period. In exchange, the developer committed to delivering developer funded infrastructure along with housing and office to spur development in the area.
What changed?
In addition to the existing development agreement pathways, this P3 DA LUCA established an additional development agreement pathway specifically for projects involving public-private partnerships. Through a P3 DA, council is able to negotiate clear and enforceable public benefits and project outcomes while offering flexibility in development standards that may otherwise constrain development capacity or impact project feasibility. This additional development agreement pathway is intended to make city owned or city supported projects more attractive to private sector partners while ensuring delivery of defined public benefits.
The land use code amendment also consolidates existing development agreement provisions, which were dispersed across multiple sections of the land use code, into a single chapter to improve clarity, efficiency, and ease of use. It defines when a P3 DA is authorized, generally when the city owns or controls real property or serves as a major project funder. The code amendment establishes submittal requirements, the review and approval process, which includes council direction to initiate and negotiate a development agreement, the framework for city evaluation of proposed development agreements, and procedures for modification of an approved agreement.
Project timeline and schedule
March 17, 2026 City Council Study Session (project initiation)
April 14, 2026 City Council Public Hearing and Action