Medina
R-20 Parcel
19,125 sf lot · 6,500 sf luxury residence · Joint venture proposal between landowner and Métrica Development.
Zoning & Site Feasibility
R-20 · Single-Family Residential · City of Medina, WAThe subject parcel is 19,125 sq ft, zoned R-20 within the City of Medina, WA. This zone is Medina's most exclusive single-family residential district, with a minimum lot size of 20,000 sq ft for subdivision — meaning this parcel cannot be subdivided but is fully entitled for one luxury residence. The R-20 zone uses structural coverage (not FAR) to govern density, making the footprint arithmetic below the critical constraint.
Zoning Standards — R-20
| Lot Area | 19,125 sq ft | Zoned R-20, Single-Family Residential. No subdivision possible — minimum for subdivision is 40,000 sf. Conforming. |
| Max Structural Coverage | 21.5% → 4,112 sq ft | Per Table 16.23.020(B): lots 19,001–19,500 sf = 21.5%. Includes all structures, roof eaves, decks, pool, garage. +2% bonus available for uncovered decks / porches. Tight for 6,500 sf above-grade home. |
| Max Impervious Surface | 52.5% → 10,041 sq ft | Applies to driveways, patios, hardscape. Generous relative to structural coverage limit. Sufficient headroom. |
| Building Height | 28 ft standard | MMC 16.23.050: R-20 base height is 28 ft from original grade. Measured from lowest original grade point within the building footprint using a 36-ft vertical + height plane method. Bonus height may apply if structural coverage stays ≤13%. Medina Heights overlay does not apply to this parcel. |
| Setbacks | 25 ft front / 20 ft sides / 25 ft rear | Per MMC 16.22: R-20 setbacks are larger than R-16. Eaves, gutters, and mechanical equipment ALL count toward setback — no protrusions permitted. Corner lots have different front-yard logic. Confirm exact dimensions with city planner at pre-app meeting. |
| 6,500 sf Footprint Note | Max 4,112 sf footprint | A 6,500 sf home on a 4,112 sf structural coverage envelope requires approximately 2 full stories + basement, or creative below-grade design (basements excluded from structural coverage if fully underground). Basement space is a key tool to achieve 6,500 sf. Achievable with multi-story + basement. |
The structural coverage cap of ~4,112 sf makes a 6,500 sf home achievable only through multi-story construction plus below-grade (basement) space. Fully subterranean basement square footage is excluded from structural coverage calculations under MMC 16.23.030(C)(9), making it the single most powerful tool available to reach the target size. A pre-application meeting with Medina's Planning Manager (Jonathan Kesler, jkesler@medina-wa.gov) is required before permit submittal for any new SFR.
Tree Code & Critical Areas
Tree Code: Medina has a robust tree ordinance. Any tree removal on a developed or redeveloped lot requires a tree permit. A Certified Arborist report should be commissioned early.
Critical Areas: If the parcel is within 200 ft of Lake Washington's ordinary high-water mark, the Shoreline Master Program overlay applies and adds SMP permit requirements and setbacks. This must be confirmed via the zoning map before design commences.
Permit Stack & Cost Estimates
Per ICC Building Valuation Data · Eastside benchmarks · Estimates onlyMedina calculates building permit fees based on construction valuation, following the Washington State Building Code and ICC Building Valuation Data. For a luxury custom home at the $3.06M construction cost level, permit fees are assessed as a percentage of declared valuation. The full permit stack for a project of this scale includes the following categories. All fees are estimates based on IBC valuation tables, ICC multipliers, and comparable Eastside jurisdictions — exact fees confirmed upon application.
| Pre-Application Meeting | Required by Medina prior to all new SFR permit submittals. Held Wednesday mornings. Upload preliminary site / building plans in advance. | Developer / Arch | Before design | $0 (required) |
| Demolition Permit | Required to demolish any existing structure on the parcel. Includes asbestos / lead survey for pre-1980 buildings. Utility disconnect letters required. | GC | Phase 1 | $3,500–$6,000 |
| Tree Permit | Medina tree ordinance requires permit for removal of regulated trees (typically 6"+ DBH). Arborist report required. Tree replacement may be mandated. | Owner / GC | Early design | $500–$2,500 |
| SEPA Checklist | State Environmental Policy Act review required for new SFR in Medina. Modest impact typically results in DNS (Determination of Non-Significance). | Architect | With building permit | $500–$1,500 |
| Site Development / Civil | Covers grading, drainage, stormwater management (SWPPP), erosion control, utility connections. Low Impact Development (LID) features may be required. | GC / Civil | Phase 1 | $4,000–$8,000 |
| Building Permit (New SFR) | Primary structural permit based on project valuation ($3.06M). Medina uses ICC / IBC valuation tables. Includes plan review fee (~65% of permit fee, paid at submittal) + permit fee at issuance. For $3M+ valuation, typical combined fee range on Eastside. | Owner / GC | Design complete | $55,000–$85,000 |
| Mechanical (HVAC) | Required for all HVAC systems including heat pumps, ERV / HRV, radiant systems. May be included in building permit or pulled separately by sub. | Mech Sub | During construction | $3,500–$7,000 |
| Plumbing | Required for all water supply, drain, waste, vent, and gas systems. Pulled by licensed plumbing contractor. | Plumbing Sub | During construction | $3,000–$5,500 |
| Electrical | Pulled through Washington State L&I (not city). Covers service entry, panels, all wiring. Smart home / EV systems may require supplemental review. | Electrical Sub | During construction | $4,000–$8,000 |
| Gas | Required for natural gas lines, appliances, and associated piping. Pulled separately by plumbing or gas contractor. | Plumbing Sub | During construction | $500–$1,200 |
| Right-of-Way | Required for any work in the public ROW including utility connections, driveway apron, curb cuts. City Public Works reviews. | GC / Civil | Site work | $1,500–$3,000 |
| Shoreline / SMP | Not applicable — parcel confirmed outside 200 ft of Lake Washington OHWM. No Shoreline Master Program overlay applies. | N/A | — | $0 |
| Fire Sprinkler | Homes over 5,000 sf typically require fire sprinkler systems in WA. Separate permit pulled by sprinkler contractor. | Sprinkler Sub | Framing complete | $1,500–$3,000 |
| Stormwater / Drainage | Medina requires LID compliance. Stormwater management plan required for impervious surfaces >2,000 sf. Engineering review included. | Civil Eng | With site permit | Included in site |
| School Impact Fee (Bellevue SD) | King County collects school impact fees for new SFRs in Medina. Bellevue School District fee applies. Paid at building permit issuance. | Owner / Project | Permit issuance | $8,000–$11,000 |
| Construction Activity Permit (CAP) | Medina requires a CAP for significant construction. Includes notification of neighbors, noise compliance, haul route approval. City holds informational meetings on major CAPs. | GC / Owner | Pre-construction | $1,000–$2,500 |
Medina does not publish a flat residential permit fee schedule online — fees are calculated at application based on declared construction valuation using ICC Building Valuation Data tables. For a project at $3.06M, the building permit fee alone (including plan review, typically 65% of permit fee billed at submittal) is the dominant cost. Comparable Eastside cities (Bellevue, Kirkland, Redmond) at this valuation level produce combined permit + plan review fees of $55,000–$85,000. This is the single best comparable benchmark until a pre-app meeting confirms Medina's exact multiplier. Budget $120,000 total permit costs in proforma with a 25% contingency.
Financial Model & Waterfall
Owner-financed construction · $3.06M hard costs · $8.5M saleThe following pro forma reflects the project economics assuming owner-financed construction loan, $3,060,000 hard costs (including 15% contingency), and $8,500,000 sale price. A GC fee of 10% of hard costs ($306,000) is included as a separate line item — this is standard for custom luxury residential in the Pacific Northwest and should be negotiated at GC selection. Development management fee of 5% to Métrica Development is also modeled.
| Gross Sale Price | Revenue | $8,500,000 | Assumed stabilized exit |
| Real Estate Commission | Selling Cost | ($255,000) | 3.0% of gross sale |
| Closing Costs (Seller) | Selling Cost | ($42,500) | ~0.5% excise tax, title, escrow |
| Net Sale Proceeds | — | $8,202,500 | After sales costs |
| Hard Costs (w/ 15% contingency) | Construction | ($3,060,000) | Per client assumption; incl. contingency |
| GC Fee (10% of hard costs) | Construction | ($306,000) | Industry standard for luxury custom SFR, PNW |
| Permits & Fees | Soft Cost | ($120,000) | All permits, impact fees, tree permits |
| Architecture / Engineering | Soft Cost | ($275,000) | ~9% of hard costs for luxury custom design |
| Construction Loan Interest | Financing | ($285,000) | ~7.5% on avg outstanding balance, 18-mo draw |
| Loan Origination / Fees | Financing | ($65,000) | 1.5–2% of loan amount |
| Métrica Development Mgmt Fee | Developer Fee | ($153,000) | 5% of hard costs; paid during construction |
| Insurance / Legal / Misc. | Soft Cost | ($75,000) | Builder's risk, liability, legal, accounting |
| Landscaping / Site Finish | Soft Cost | ($120,000) | Luxury finish standard for Medina market |
| Total Project Cost | — | ($4,459,000) | Excl. land value |
| Net Profit (Before Land) | — | ≈ $3,743,500 | Available for land + JV split |
The owner's land contribution is equity in the deal. A 19,125 sf R-20 parcel in Medina conservatively values at $2.5M–$3.5M based on comparable teardown land sales. In this model, "land" is contributed by the owner as their equity stake — it is not a cash cost but its implied value should be acknowledged in the JV agreement and used to anchor the owner's equity split. After allocating land value, the true development profit attributable to the construction and development work is the net profit figure above, to be split per the JV agreement structure in Section 04.
Joint Venture Structure
Landowner + Métrica Development LLC · Three common patternsThe proposed partnership is between the landowner (contributing the parcel as equity and financing the construction loan) and Métrica Development LLC (contributing development management, design coordination, entitlement, and project execution expertise). Three common structures are presented below; the recommended approach balances market norms with the owner's risk exposure as construction lender.
Simple proportional split of net profits after all project costs are repaid. Land valued at ~$3M treated as owner equity contribution. No preferred return structure.
- Simple to understand
- No complex waterfall
- Fast to negotiate
- Métrica has no pref return
- Owner bears all carry risk
- No dev fee structure
Owner receives 8% preferred return on land value contribution ($3M @ 8% = $240K / yr, ~$360K over 18 mo) from gross profits before split. Remaining profit split 65 / 35. Métrica receives 5% development fee off-the-top (already modeled).
- Owner rewarded for land + loan
- Métrica fee earned during build
- Industry-standard waterfall
- Aligns incentives well
- More complex to document
- Requires clear pref calc
Owner retains full project control and ownership. Métrica acts as Development Manager on a fee basis: 5% hard cost dev fee + 20% of profits above a hurdle (e.g., 15% project ROI). Least equity for Métrica but simplest ownership structure.
- Owner retains control
- Tax simplicity
- No LLC needed
- Métrica less motivated
- Owner bears all downside
- No shared risk culture
Industry Norm Context: For land-owner / developer joint ventures on high-end residential projects where the landowner finances construction, the market norm is roughly a 60–70% owner / 30–40% developer split of net profits, with the developer also earning a development fee (3–6% of hard costs) during construction as compensation for management services. This is distinct from equity — the fee is earned regardless of project outcome and compensates for time and overhead. The owner's financing role (construction loan) is a significant contribution beyond just land, and should be factored accordingly.
Scenario Comparison
| Line | Option A · 60/40 | Option B · 65/35 + Pref ✓ | Option C · 80/20 DM |
|---|---|---|---|
| Net Profit (before land) | $3,743,500 | $3,743,500 | $3,743,500 |
| Owner pref return (8% / 18mo) | — | ($360,000) | — |
| Remaining profit | $3,743,500 | $3,383,500 | $3,743,500 |
| Owner share | $2,246,100 | $2,549,275 | $2,994,800 |
| Métrica share | $1,497,400 | $1,184,225 | $748,700 |
| Métrica dev fee (pre-split) | — | $153,000 | $153,000 |
| Owner ROI on $3M land | 74.9% | 85.0% | 99.8% |
Process & Timeline
From JV formation through sale closing. Six phases. Total project duration realistically 28–36 months.
Medina does not provide permit review timelines — permits are processed first-come, first-served. For complex new SFRs, plan review in comparable Eastside jurisdictions currently runs 4–8 months. The 18-month construction loan term should be tied to the construction start date (permit issuance + demo), not the JV formation date. Budget a 6–9 month pre-construction period before the loan clock starts. This means total project duration from JV formation to sale closing is realistically 28–36 months.
Recommendations
Eight actions in order. The first four are immediate; the remainder unfold through Phase 1 and Phase 2.
This parcel is outside both the Medina Heights overlay and the Shoreline Jurisdiction (confirmed outside 200 ft of Lake Washington OHWM). The standard R-20 development envelope applies in full: 28 ft height, 21.5% structural coverage, 52.5% impervious surface. No SMP permit required. Contact Jonathan Kesler at jkesler@medina-wa.gov to schedule the mandatory pre-application meeting before permit submittal.
Required before permit submittal for new SFRs. Held Wednesday mornings. Upload preliminary site plan and massing study first — this will reveal setback interpretations, structural coverage counting, and height plane methodology specific to this parcel.
The 4,112 sf structural coverage cap is the binding constraint. A fully underground basement is the cleanest way to achieve 6,500 sf without coverage issues. A two-story main structure at ~3,800 sf footprint plus a 2,700 sf basement achieves the target. Eaves count — design with precision.
This is the most market-standard structure for a deal where the owner is contributing both land and financing. The owner's preferred return acknowledges their capital at risk; Métrica's development fee provides cash flow during construction; the 65/35 split rewards both parties proportionally. Retain a real estate attorney to draft the operating agreement — budget $8,000–$15,000 for legal.
This is a conservative estimate for a project at this scale in this jurisdiction. Build it into the construction loan budget so it doesn't erode contingency.
Given the 6–9 month pre-construction period, tying the 18-month loan term to construction start (not JV signing) preserves the timeline and reduces interest carry on the front end.
Medina's tree code is enforced strictly. Early identification of regulated trees will shape the site plan and potentially affect structural coverage and grading significantly. Tree mitigation fees can be substantial.
Confirm the capacity, condition, and invert elevation of the existing sewer lateral serving the parcel. A 6,500 sf luxury home will carry significantly more fixture units than whatever currently exists — multiple full bathrooms, kitchen, wet bar, laundry, pool bath, and potentially a guest suite all add load. A sewer scope identifies deterioration, root intrusion, or grade issues in the existing lateral that would require replacement (and an additional ROW permit). Flow calculations submitted to the City confirm whether the existing connection size and slope can handle the new fixture count, or whether a new tap to the main is required. This is a low-cost ($500–$1,500) due-diligence step that can prevent a costly mid-construction surprise. Coordinate findings with your civil engineer as part of the site utility plan.