The conditional use permit to build a three-story condominium at 306 Center Street filed by Kate and Brandon Atkinson early in 2022 has been approved by Town of La Conner Planning Director Michael Davolio, an administration determination made Sept. 20 in a four-page letter. The administration rejected the challenge brought by residents Linda Talman and Debbie Aldrich, and others, that conditions of a 1986 contract rezone agreement between the Town and then owners Donna and Gerald Blades govern the zoning.

The validity of the contract rezone has been the central issue since Talman’s public record request located it last spring. Town staff failed to file it with the county auditor in 1986, though the Town was to “record this agreement with the Skagit County Auditor so that this agreement will become a matter of public notice to subsequent purchasers and shall become an encumbrance upon the land.”

Town Attorney and Administrator Scott Thomas and Davolio agree that the rezone agreement “is unenforceable as a matter of law.” They relied on an assessment by the Seattle-area firm Kenyon Disend, which believes “a strong argument exists that the Contract Rezone is not binding on subsequent purchasers since there are no facts indicating the purchasers had constructive or record notice of the Contract Rezone.”

Thomas sent eight questions to the law firm, including asking if the 1986 agreement was effective upon adoption. The firm responded, in their “opinion, the Contract Rezone was most likely effective upon adoption as a proper exercise of the Town Council’s contracting authority.” The 306 Center Street property was zoned residential earlier in 1986 but the zoning changed to commercial, evidence that that portion of the agreement was enacted.

Davolio’s determination was forwarded to the Town’s planning commission, council and all parties of record to the hearing examiner’s May decision. Parties of record has 10 days to appeal to the hearing examiner.

The determination listed 10 findings of fact of the case, including the dates of the hearing examiner’s hearing (March 31) and decision (June 21). The conditional use permit applied for allows residential units above the first-floor short term rentals, which are an approved commercial zone use.

Hearing Examiner David Lowell ruled on reconsideration requests July 20, remanding back to the Town the question of the validity of the contract rezone agreement.

Kenyon Disend was engaged in August, providing its assessment Sept. 9. Thomas summarized those conclusions at the Sept. 13 council meeting. The firm charged $481.50 for 2.3 hours of work.