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HomeMy WebLinkAboutAgendaAGENDA Planning & Development Committee Regular Meeting 3:00 PM - Monday, November 23, 2015 Council Conference Room, 7th Floor, City Hall – 1055 S. Grady Way 1.Economic Development Update 2.Multi-Family Housing Property Tax Exemption Extension Agenda Bill 3.Owner-Occupied Housing Incentive & Rental Housing Incentive Extensions Agenda Bill 4.The Lofts at Second & Main Multi-Family Housing Property Tax Exemption Agreement Agenda Bill REGULAR COUNCIL - 16 Nov 2015 SUBJECT/TITLE: Multi-Family Housing Property Tax Exemption - Extension RECOMMENDED ACTION: Refer to Planning & Development Committee DEPARTMENT: Community & Economic Development STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager EXT.: 6584 FISCAL IMPACT: Expenditure Required: $ N/A Transfer Amendment: $ N/A Amount Budgeted: $ N/A Revenue Generated: $ N/A Total Project Budget: $ N/A City Share Total Project: $ N/A SUMMARY OF ACTION: As authorized by Chapter 84.14 RCW, Council established the Multi-Family Housing Property Tax Exemption (“Exemption”) in 2003 (codified in RMC 4-1-220, as subsequently amended) to currently encourage multi- family housing development in Downtown Renton and the Sunset Area. Eligible multi-family housing projects must, for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the CD zone. The Exemption is scheduled to sunset on December 31, 2015, unless extended by Council action. The City has used the Multi-Family Housing Property Tax Exemption Program since 2003 to encourage increased residential opportunities within designated urban centers that lack sufficient, desirable, and convenient residential housing. Staff believes that extending the Exemption through December 31, 2018, will greatly enhance future redevelopment opportunities in the City’s two designated residential targeted areas. In particular, the proposed extension will help achieve the City’s vision and improve future prospects for additional new multi-family housing in Downtown Renton and the Sunset Area. EXHIBITS: A. Issue Paper B. Draft Ordinance STAFF RECOMMENDATION: Adopt an ordinance to amend the Property Tax Exemption for Multi-Family Housing in Residential Targeted Areas to extend the sunset clause for accepting new applications for the multi-family housing property tax exemption for three years to December 31, 2018, unless further extended by Council action. AGENDA ITEM #2. DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:November 6, 2015 TO:Ed Prince, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:C. E. “Chip” Vincent, CED Administrator STAFF CONTACT:Mark Santos-Johnson, Community Development Project Manager x6584 SUBJECT:Multi-Family Housing Property Tax Exemption – Extension ISSUE: Should the City extend the Multi-Family Housing Property Tax Exemption Program provided for in RMC 4-1-220 and currently scheduled to sunset on December 31, 2015? RECOMMENDATION: Adopt an ordinance to amend the Property Tax Exemption for Multi-Family Housing in Residential Targeted Areas in RMC 4-1-220 to extend the sunset clause for accepting new applications for the multi-family housing property tax exemption for three years to December 31, 2018, unless further extended by City Council action. BACKGROUND SUMMARY: Overview of Current Exemption Program As authorized by Chapter 84.14 RCW, the Council established the Multi-Family Housing Property Tax Exemption (“Exemption”) in 2003 (codified in RMC 4-1-220 as subsequently amended) to currently encourage multi-family housing development in Downtown Renton and the Sunset Area. Eligible multi-family housing projects must, for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the Center Downtown (CD) or Center Village (CV) zones. The Exemption is scheduled to sunset on December 31, 2015, unless extended by City Council action. As provided for in Chapter 84.14 RCW and RMC 4-1-220, the Exemption provision currently allows the value of qualified new housing construction to be exempt from ad valorem property tax for eight to twelve years depending upon when the project applied for the Exemption and whether the project provides at least 20% of the units as affordable housing. However, the Exemption does not include the value of the land, existing improvements, or non-housing-related improvements (e.g., commercial space). The Exemption applies to all levels of the ad valorem property tax, including the local jurisdiction, county, state, and all local taxing districts. The Exemption is in addition to any other tax credits, grants, or incentives provided by law for the multi-family housing. AGENDA ITEM #2. Ed Prince, Council President Page 2 of 4 November 6, 2015 Example of Potential Exemption Savings As noted above, the Exemption applies to all levels of the ad valorem property tax, including the local jurisdiction, county, state, and all local taxing districts. For projects in Renton, this amounts to a total of $12.63 per $1,000 of assessed value for 2015. The value of the property tax exemption will of course be determined by the nature, quality, and cost of the multi-family housing (e.g., size, type, parking, and amenities) and the future assessed value of the project and the future ad valorem property tax rates. The City has a pending Exemption application for The Lofts at Second and Main in Downtown Renton. As an example, the estimated property tax savings related to The Lofts at Second and Main is approximately $155,046 per year ($1.24 million for the applicable eight-year Exemption period). This equates to a potential property tax savings of approximately $1,535 per year per housing unit ($12,281 per housing unit for the eight-year Exemption period). The City of Renton’s portion of the above estimated potential property tax savings related to the Exemption is approximately $34,741 per year ($277,929 for the eight-year period) for The Lofts at Second and Main project. Although the City will receive additional property tax revenue from the new commercial space and any increased assessed value for the land as a result of the new construction on site, the City will not receive property tax revenue from the residential improvements until after the eight-year property tax exemption period. Exemption Projects Approved to Date As noted in Figure 1 below, the City has approved nine multi-family housing projects to date with a total of 1,795 housing units, including 1,745 rental apartments and 50 for-sale condominiums. The projects are located in all three of the historical designated residential targeted areas, including five projects in Downtown Renton (503 housing units), three projects in South Lake Washington (1,075 housing units), and one project in the Sunset Area (217 housing units). The projects range in size from 50 housing units to 440 housing units with an average of 199 housing units per project. Figure 1 - Multi-Family Housing Property Tax Exemption – Approved Project Applications Project Name Number of Housing Units Designated Residential Targeted Area Type of Housing Application Approval Date Project Status Merrill Gardens at Renton Centre 154 Downtown Rental 5/13/2005 Completed 2007 Parkside at 95 Burnett 106 Downtown Rental 5/13/2005 Completed 2007 The Bristol II at Southport 195 South Lake WA Rental 2/28/2006 Completed 2008 Chateau de Ville 50 Downtown For Sale 6/13/2006 Completed 2008 The Sanctuary 440 South Lake WA Rental 1/26/2007 Completed 2009 The Reserve 440 South Lake WA Rental 1/26/2007 Completed 2010 Harrington Square 217 Sunset Area Rental 9/27/2007 Completed 2011 Second & Main Apartments 101 Downtown Rental 7/21/2008 Cancelled 2011 Liberty Square Apartments 92 Downtown Rental 4/13/2009 Completed 2008 Total 1,795 AGENDA ITEM #2. Ed Prince, Council President Page 3 of 4 November 6, 2015 Proposed Extension: To encourage additional multi-family housing in Downtown Renton and the Sunset Area, staff recommends that the City Council extend the Exemption for an additional three years to December 31, 2018, unless further extended by City Council action. As noted in figure 1 above, the City has approved nine multi-family housing projects to date with a total of 1,795 housing units. Eight projects have been completed (with 1,694 units – an average of 212 units per project) and one project (Second & Main Apartments with 101 units) was unable to secure financing and was cancelled in 2011. The Lofts at Second and Main project is located on the same site as the former proposed Second & Main Apartments Of the eight completed projects, four projects with 635 housing units are located Downtown and one project, the Harrington Square Apartments with 217 housing units, is located in the Sunset Area; the balance of the projects and housing units were located in South Lake Washington. The Exemption, if extended, would continue to encourage developers to build new multi-family housing in Downtown Renton and the Sunset Area. Due primarily to changes in market conditions and available financing since the recession hit in late- 2008, the City did not receive an Exemption application for a number of years since the Liberty Square Apartments submitted an application in early-2009. However, the City received an Exemption application for The Lofts at Second and Main in September 2015 and we expect additional developers to utilize the Exemption in the future for projects in Downtown Renton and the Sunset Area. For example, Colpitts Development Company plans to use the Exemption to help develop approximately 400 housing units on the former Sunset Terrace public housing site as part of the Sunset Area Community Revitalization and CTB Venture LLC’s plans to use the Exemption to help build the 15-unit Brandon Place Townhomes for owner-occupied housing in the Sunset Area. When the City established the Exemption in 2003, it was the first city in South King County to utilize the incentive. However, in subsequent years almost all of the other eligible cities in South King County (including Kent, Federal Way, Auburn, Burien, Des Moines, SeaTac, and Covington) now have an Exemption program with one or more designated residential targeted areas. Consequently, it is even more important for Renton to maintain the Exemption in order to market opportunities for additional multi-family housing development and capital investment in Downtown Renton and the Sunset Area given the competition for new developments and other opportunities available in South King County. Summary: The proposed extension supports the City’s vision as the center of opportunity in the Puget Sound Region where families and businesses thrive and the 2016-2021 Business Plan Goals. The Exemption also supports affordable workforce housing development so that Renton employees can live in the community where they work to help combat transportation congestion and related environmental impacts. AGENDA ITEM #2. Ed Prince, Council President Page 4 of 4 November 6, 2015 CONCLUSION: The City has used the Multi-Family Housing Property Tax Exemption Program since 2003 to encourage increased residential opportunities within designated urban centers that lack sufficient, desirable, and convenient residential housing. Staff believes that extending the Exemption through December 31, 2018, will greatly enhance future redevelopment opportunities in the City’s two designated residential targeted areas. In particular, the proposed extension will help achieve the City’s vision and improve future prospects for additional new multi-family housing in Downtown Renton and the Sunset Area. Attachments: 1)Draft Ordinance cc:Jay Covington, CAO Jason Seth, City Clerk Iwen Wang, Administrative Services Administrator Gregg Zimmerman, Public Works Administrator Terry Higashiyama, Community Services Administrator Cliff Long, Economic Development Director AGENDA ITEM #2. 1  CITY OF RENTON, WASHINGTON    ORDINANCE NO. ________    AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION  4‐1‐220, PROPERTY TAX EXEMPTION FOR MULTI‐FAMILY HOUSING IN  RESIDENTIAL TARGETED AREAS, OF CHAPTER 1, ADMINISTRATION AND  ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF THE RENTON  MUNICIPAL CODE, BY EXTENDING THE PROPERTY TAX EXEMPTION.    WHEREAS, on December 22, 2003, the Renton City Council approved Ordinance No.  5061 (codified in RMC 4‐1‐220) to establish a limited property tax exemption to encourage  multi‐family housing development in designated residential targeted areas; and  WHEREAS, the property tax exemption will sunset on December 31, 2015, unless  extended by City Council action; and   WHEREAS, the provisions of Section 4‐1‐220, Property Tax Exemption for Multi‐Family  Housing in Residential Targeted Areas, have been successful in encouraging increased  residential opportunities and in stimulating new construction of multi‐family housing in  residential targeted areas; and  WHEREAS, the existing purpose and applicability of the property tax exemption will  remain the same; and  WHEREAS, the City seeks to amend RMC 4‐1‐220 to extend the property tax exemption  to encourage additional future multi‐family housing projects in the residential targeted areas;    NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES  ORDAIN AS FOLLOWS:   AGENDA ITEM #2. ORDINANCE NO. _______  2  SECTION I. Subsection 4‐1‐220.M, Sunset of Exemption for Applications for  Conditional Certificates, of Chapter  1, Administration and Enforcement, of Title IV  (Development Regulations) of the Renton Municipal Code, is hereby amended as follows:  M. SUNSET OF EXEMPTION FOR APPLICATIONS FOR CONDITIONAL  CERTIFICATES:  The City shall not accept new applications for conditional certificates as  provided in RMC 4‐1‐220.E after the close of business on December 31, 2015  2018, unless extended by City Council action. The City shall process (1) pending  complete applications for a conditional certificate submitted before the close of  business on December 31, 2015 2018, and (2) applications for an extension of  the conditional certificate and/or a final certificate received after the close of  business on December 31, 2015 2018, as provided in subsections D through J of  this Section.  Subsections C and J through L of this Section shall continue to apply  to all properties that have been or are issued a final certificate of tax exemption  under RMC 4‐1‐220 until expiration, termination or cancellation of the tax  exemption.  Incomplete applications for conditional certificates as of the close of business  on December 31, 2015 2018, shall be denied and/or returned to owners.   SECTION II.     This ordinance shall be effective upon its passage, approval, and thirty  (30) days after publication.  AGENDA ITEM #2. ORDINANCE NO. _______  3 PASSED BY THE CITY COUNCIL this _______ day of _______________________, 2015.                         Jason A. Seth, City Clerk    APPROVED BY THE MAYOR this _______ day of _______________________, 2015.                         Denis Law, Mayor    Approved as to form:             Lawrence J. Warren, City Attorney  Date of Publication:      ORD:1893:11/3/15:scr  AGENDA ITEM #2. REGULAR COUNCIL - 16 Nov 2015 SUBJECT/TITLE: Owner-Occupied Housing Incentive & Rental Housing Incentive - Extensions RECOMMENDED ACTION: Refer to Planning & Development Committee DEPARTMENT: Community & Economic Development STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager EXT.: 6584 FISCAL IMPACT: Expenditure Required: $ N/A Transfer Amendment: $ N/A Amount Budgeted: $ N/A Revenue Generated: $ N/A Total Project Budget: $ N/A City Share Total Project: $ N/A SUMMARY OF ACTION: Council approved the Owner-Occupied Housing Incentive (codified in RMC 4-1-210B as subsequently amended) to allow certain development and mitigation fees for “For Sale” housing to be waived to encourage owner-occupied housing in Downtown Renton and the Sunset Area. Council also approved the Rental Housing Incentive (codified in RMC 4-1-210C as subsequently amended) to allow certain development and mitigation fees for rental housing to be waived to encourage new multi-family rental housing in the Sunset Area. Both incentives are scheduled to sunset on December 31, 2015, unless extended by Council action. The City has used the Owner-Occupied Housing Incentive and the Rental Housing Incentive to encourage increased residential opportunities in Downtown Renton and the Sunset Area. Staff believes that extending the Owner-Occupied Housing Incentive and the Rental Housing Incentive through December 31, 2018 will greatly enhance future redevelopment opportunities for both Downtown Renton and the Sunset Area. The incentives will encourage capital investment in new multi-family housing development in the targeted areas and help stimulate additional revitalization and commercial development in Downtown Renton and the Sunset Area. EXHIBITS: A. Issue Paper B. Ordinance STAFF RECOMMENDATION: Adopt an ordinance to amend the Owner-Occupied Housing Incentive in RMC 4-1-210B and the Rental Housing Incentive in RMC 4-1-210C to extend the sunset clauses for three years to December 31, 2018, unless further extended by City Council action. AGENDA ITEM #3. DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:November 6, 2015 TO:Ed Prince, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:C. E. “Chip” Vincent, CED Administrator STAFF CONTACT:Mark Santos-Johnson, Community Development Project Manager x6584 SUBJECT:Owner-Occupied Housing Incentive and Rental Housing Incentive - Extensions ISSUE: Should the City extend the Owner-Occupied Housing Incentive and the Rental Housing Incentive provided for in RMC 4-1-210B and 4-1-210C, respectively, and both currently scheduled to sunset on December 31, 2015? RECOMMENDATION: Adopt an ordinance to amend the Owner-Occupied Housing Incentive in RMC 4-1-210B and the Rental Housing Incentive in RMC 4-1-210C to extend the sunset clauses for three years to December 31, 2018, unless further extended by City Council action. BACKGROUND: Owner-Occupied Housing Incentive Background In August 2001, the Renton City Council approved Ordinance No. 4913 (codified in RMC 4-1-210B as subsequently amended) to allow certain development and mitigation fees for “For Sale” housing to be waived to encourage owner-occupied housing in Downtown Renton. In February 2010, the City Council extended the incentive to include eligible owner-occupied housing in the Sunset Area. The Owner-Occupied Housing Incentive currently applies to eligible new construction projects with 100% of the housing units platted or condominium “For Sale” housing in the Center Downtown (CD), Center Village (CV), Residential 14 Dwelling Units/Acre (R-14), and Residential Multi-Family (RM-F) zones that are also located in Downtown Renton or the Sunset Area. In addition to being located in one of the targeted areas noted above, eligible multi-family owner- occupied housing projects must, for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the CD or CV zones. Eligible owner-occupied housing projects must currently have a minimum of ten attached dwelling units if located in one of the other zones AGENDA ITEM #3. Ed Prince, Council President Page 2 of 4 November 6, 2015 noted above. The Owner-Occupied Housing Incentive is scheduled to sunset on December 31, 2015 unless extended by City Council action. To date, the Owner-Occupied Housing Incentive was instrumental in helping construct two projects in Downtown Renton, the 37 condos at 55 Williams and the 50 condos at the Chateau de Ville. No projects in the Sunset Area have been built to date using the Owner-Occupied Housing Incentive, but there is one proposed project in the Sunset Area in the pipeline, CTB Venture LLC’s 15-unit Brandon Place Townhomes. Rental Housing Incentive Background In August 2011, the Renton City Council approved Ordinance 5617 (codified in RMC 4-1-210C as subsequently amended) to allow certain development and mitigation fees for rental housing to be waived to encourage new multi-family rental housing in the Sunset Area (but not Downtown Renton – where only owner-occupied housing continues to be eligible for waived fees). The incentive applies to eligible new multi-family rental housing in the CV, RM-F, and R-14 zones and also located in the Sunset Area. Eligible new affordable multi-family rental housing projects in the Sunset Area receive a 100% fee waiver and eligible new market-rate multi-family rental housing projects receive a 50% fee waiver. In addition to being located in the Sunset Area, eligible multi-family rental housing projects must, for example, be newly constructed and have a minimum of 30 attached dwelling units if located in the CV zone or a minimum of eight attached dwelling units if located in the RM-F or R-14 zones. The Rental Housing Incentive is scheduled to sunset on December 31, 2015, unless extended by City Council action. To date, the Rental Housing Incentive was instrumental in helping construct two projects in the Sunset Area, the eight-unit Glennwood Avenue Townhomes and the 18-unit Kirkland Avenue Townhomes, both part of the Renton Housing Authority’s replacement housing for the Sunset Terrace redevelopment. Example of Potential Development and Mitigation Fee Savings The amount of development and mitigation fee savings for a project depends upon many things, including the nature, quality, and cost of the multi-family housing (e.g., size, type, parking, and amenities) and the applicable fee rates at the time. For illustration purposes, the estimated savings are noted below for one Owner-Occupied Housing Incentive project and one Rental Housing Incentive project. Based on the analysis completed at the time, the 55 Williams project with 37 units was expected to receive a total savings of approximately $118,994 from the Owner-Occupied Housing Incentive, including $43,748 in fire, transportation and parks mitigation fees, $41,440 in water and wastewater system development charges, and $33,806 in building permit fees. (There were no surface water system development charges since 100% of the site was already an impervious surface from the prior use.) The incentive worked out to a savings of approximately $3,216 per unit. Based on the analysis completed at the time, the Glennwood Avenue Townhomes with eight units was expected to receive a total savings of approximately $52,916 from the Rental Housing Incentive, AGENDA ITEM #3. Ed Prince, Council President Page 3 of 4 November 6, 2015 including $28,609 in water, wastewater, and surface water system development charges, and $24,307 in building permit and plan review and inspection fees. (There were no mitigation fees since the project included eight replacement housing units.) The incentive worked out to a savings of approximately $6,615 per unit. PROPOSED EXTENSIONS: To encourage additional new owner-occupied housing in Downtown Renton and the Sunset Area and additional new rental housing in the Sunset Area, staff recommends that the City Council extend both the Owner-Occupied Housing Incentive and the Rental Housing Incentive for three years to December 31, 2018. Owner-Occupied Housing Incentive Extension To date, the City has had limited success at encouraging new owner-occupied housing development in Downtown Renton and the Sunset Area. Both projects that utilized the Owner-Occupied Housing Incentive since 2001, the 55 Williams condo project (completed in 2002) and the Chateau de Ville condo project (completed in 2008), had significant challenges selling units when constructed. In particular, the Chateau de Ville was completed in late-2008 at the beginning of the recession. Given the cost to construct the project and the significant decrease in housing values and available financing for home buyers at the time, the developer was only able to sell three condo units. As a result, the project was foreclosed and 47 of the 50 units were purchased by Jade Investments LLC which has used the units to date for rental housing. It’s unclear if or when the units will be made available for sale as owner-occupied housing. For developers who are building new condos or converting apartments to condominiums, there are other stronger market areas for them to develop their projects than Downtown Renton or the Sunset Area. Consequently, it is a major challenge to promote new owner-occupied housing in Downtown Renton and the Sunset Area. Staff believes that the Owner-Occupied Housing Incentive is an essential incentive to help stimulate and encourage new owner-occupied housing development in Downtown Renton and the Sunset Area in the future. As noted above, there is one proposed project in the pipeline, CTB Venture LLC’s 15-unit Brandon Place Townhomes in the Sunset Area. Rental Housing Incentive Extension Redevelopment of the Highlands or Sunset Area has been a priority business plan goal for the City since the 1990’s. Unfortunately, capital investment in the Sunset Area (particularly for residential construction) has been very limited, in part due to significant development costs for builders to compensate for the limited utility infrastructure in the area. The Rental Housing Incentive was established to provide an additional catalyst for redevelopment in the Sunset Area to help stimulate and support additional new multi-family rental housing in the community. The Renton Housing Authority (RHA) used the Rental Housing Incentive to help construct the 8-unit Glennwood Avenue Townhomes and the 18-unit Kirkland Avenue Townhomes as replacement housing for the Sunset Terrace redevelopment. We expect other multi-family rental housing projects to use the incentive in the future, including RHA’s additional planned Sunset Terrace replacement housing projects and Colpitts Development Company’s proposed three buildings with approximately 400 housing units on the former Sunset Terrace public housing site. Maintaining the Rental Housing AGENDA ITEM #3. Ed Prince, Council President Page 4 of 4 November 6, 2015 Incentive is a central part of the City’s efforts to support the Sunset Area Community Investment Strategy and, in particular, the Sunset Terrace redevelopment project. Summary: The proposed extensions support the City’s vision as the center of opportunity in the Puget Sound Region where families and businesses thrive and the 2016-2021 Business Plan Goals. In addition, the incentives for new owner-occupied housing and new multi-family rental housing in the Sunset Area supports the Sunset Area Community Investment Strategy adopted by the City Council in 2009 and the City Center Plan adopted by the City Council in 2011. CONCLUSION: The City has used the Owner-Occupied Housing Incentive and the Rental Housing Incentive to encourage increased residential opportunities within designated urban centers that lack sufficient, desirable, and convenient residential housing. Staff believes that extending the Owner-Occupied Housing Incentive and the Rental Housing Incentive through December 31, 2018 will greatly enhance future redevelopment opportunities for both Downtown Renton and the Sunset Area. In particular, the proposed extensions will help achieve the City’s vision and improve future prospects for additional new owner-occupied housing in Downtown Renton and additional new owner-occupied housing and rental housing in the Sunset Area. The incentives will encourage capital investment in new multi- family housing development in the targeted areas and help stimulate additional revitalization and commercial development in Downtown Renton and the Sunset Area. Attachments: 1.Draft Ordinance cc.Jay Covington, CAO Jason Seth, City Clerk Iwen Wang, Administrative Services Administrator Terry Higashiyama, Community Services Administrator Gregg Zimmerman, Public Works Administrator Mark Peterson, Fire Chief/Emergency Services Administrator Cliff Long, Economic Development Director Jennifer Henning, Planning Director Vanessa Dolbee, Current Planning Manager Karen Bergsvik, Human Services Manager AGENDA ITEM #3. 1  CITY OF RENTON, WASHINGTON  ORDINANCE NO. ________    AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION  4‐1‐210, WAIVED FEES, OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT,  OF TITLE IV (DEVELOPMENT REGULATIONS) OF THE RENTON MUNICIPAL CODE,  BY EXTENDING THE WAIVER OF CERTAIN DEVELOPMENT AND MITIGATION  FEES.     WHEREAS, on August 27, 2001, the Renton City Council approved Ordinance No. 4913  (codified in RMC 4‐1‐210.B) to allow certain development and mitigation fees for housing that  is for sale to be waived to encourage new owner‐occupied housing in Downtown Renton; and  WHEREAS, on February 1, 2010, the City Council approved Ordinance No. 5524 (codified  in RMC 4‐1‐210.B) to allow certain development and mitigation fees for housing that is for sale  to be waived to encourage new owner‐occupied housing in the Sunset Area; and  WHEREAS, on August 1, 2011, the City Council approved Ordinance No. 5617 (codified  in RMC 4‐1‐210.C) to allow certain development and mitigation fees for rental housing to be  waived to encourage new multi‐family rental housing in the Sunset Area; and   WHEREAS, these development and mitigation fee waivers will sunset on December 31,  2015, unless extended by City Council action; and  WHEREAS, the provisions of Subsection 4‐1‐210.B, Owner‐Occupied Housing Incentive,  and Subsection 4‐1‐210.C, Rental Housing Incentive, have been successful in encouraging  increased residential opportunities and in stimulating new construction of multi‐family housing  in Downtown Renton and the Sunset Area; and  WHEREAS, the existing purpose and applicability of the development and mitigation fee  waivers will remain the same; and    AGENDA ITEM #3. ORDINANCE NO. _______  2  WHEREAS, the City seeks to amend RMC 4‐1‐210.B and 4‐1‐210.C to extend the  development and mitigation fee waivers to encourage additional new owner‐occupied housing  in Downtown Renton and the Sunset Area and additional new rental housing in the Sunset  Area;   NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES  ORDAIN AS FOLLOWS:  SECTION I.    Subsection 4‐1‐210.B.8, Effective Date and Sunset, of Chapter 1,  Administration and Enforcement, of Title IV (Development Regulations) of the Renton  Municipal Code, is hereby amended as follows:  8. Effective Date and Sunset: These fee waivers are effective for  building permits issued after August 13, 2001, and will sunset at the close of  business on December 31, 2015 2018, unless extended by City Council action.   SECTION II.   Subsection 4‐1‐210.C.8, Effective Date and Sunset, of Chapter 1,  Administration and Enforcement, of Title IV (Development Regulations) of the Renton  Municipal Code, is hereby amended as follows:  8. Effective Date and Sunset: These fee waivers are effective for  building permits issued after September 5, 2011, and will sunset at the close of  business on December 31, 2015 2018, unless extended by City Council action.   SECTION III.   This ordinance shall be effective upon its passage, approval, and thirty  (30) days after publication.      AGENDA ITEM #3. ORDINANCE NO. _______  3  PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2015.                         Jason A. Seth, City Clerk    APPROVED BY THE MAYOR this _______ day of _____________________, 2015.                         Denis Law, Mayor    Approved as to form:             Lawrence J. Warren, City Attorney  Date of Publication:      ORD:1894:11/3/15:scr  AGENDA ITEM #3. REGULAR COUNCIL - 16 Nov 2015 SUBJECT/TITLE: The Lofts at Second and Main – Multi-Family Housing Property Tax Exemption Agreement RECOMMENDED ACTION: Refer to Planning & Development Committee DEPARTMENT: Community & Economic Development STAFF CONTACT: Mark Santos-Johnson, Community Development Project Manager EXT.: 6584 FISCAL IMPACT: Expenditure Required: $ N/A Transfer Amendment: $ N/A Amount Budgeted: $ N/A Revenue Generated: $ N/A Total Project Budget: $ N/A City Share Total Project: $ N/A SUMMARY OF ACTION: In September 2015, the City received a Multi-Family Housing Property Tax Exemption (“Exemption”) application for The Lofts at Second and Main project in the Downtown designated residential targeted area. As provided for in RMC 4-1-220, the Department of Community and Economic Development (CED) Administrator needs to approve or deny the Exemption application within 90 days of receipt of the application and, if approved, the applicant must enter into an agreement approved by Council that addresses the terms and conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion. Subject to Council’s approval of the agreement, the CED Administrator intends to approve the Exemption application for The Lofts at Second and Main project. The six-story mixed-use apartment project with one level of underground parking has 101 apartment units, 3,987 square feet of non-residential (commercial retail) space, and 117 structured parking spaces. EXHIBITS: A. Issue Paper B. Draft Multi-Family Housing Property Tax Exemption Agreement STAFF RECOMMENDATION: Approve the Exemption Agreement that addresses the terms and conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion and authorize the Mayor to execute the agreement. AGENDA ITEM #4. DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE:November 5, 2015 TO:Ed Prince, Council President Members of Renton City Council VIA:Denis Law, Mayor FROM:C. E. “Chip” Vincent, CED Administrator STAFF CONTACT:Mark Santos-Johnson, Community Development Project Manager x6584 SUBJECT:The Lofts at Second and Main – Multi-Family Housing Property Tax Exemption Agreement ISSUE: Should the City Council approve the Multi-Family Housing Property Tax Exemption Agreement for The Lofts at Second and Main and authorize the Mayor to execute the agreement? RECOMMENDATION: Staff recommends that the Council: (1) approve the Exemption Agreement that addresses the terms and conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion; and (2) authorize the Mayor to execute said agreement in substantially the same form. BACKGROUND SUMMARY: On September 24, 2015, the City received a Multi-Family Housing Property Tax Exemption (“Exemption”) application for The Lofts at Second and Main project in the Downtown designated residential targeted area. As provided for in RMC 4-1-220, the Department of Community & Economic Development (CED) Administrator needs to approve or deny the Exemption application within 90 days of receipt of the application and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion. Subject to the Council’s approval of the agreement, the CED Administrator intends to approve the Exemption application for The Lofts at Second and Main project. BACKGROUND: As authorized by Chapter 84.14 RCW, the Council established the Multi-Family Housing Property Tax Exemption (“Exemption”) in 2003 (codified in RMC 4-1-220 as subsequently AGENDA ITEM #4. Ed Prince, Council President Page 2 of 3 November 5, 2015 amended) to currently encourage multi-family housing development in Downtown Renton and the Sunset Area. The Exemption provision allows the value of qualified new housing construction to be exempt from ad valorem property tax for a limited period of time after completion of the project1. However, the Exemption does not include the value of the land, existing improvements or non-housing-related improvements (e.g., commercial space). The Exemption applies to all levels of the ad valorem property tax, including the local jurisdiction, county, state, and all local taxing districts. The Exemption is in addition to any other tax credits, grants, or incentives provided by law for the multi-family housing. The City received an Exemption application for The Lofts at Second and Main project on September 24, 2015. The Lofts at Second and Main project is a mixed-use residential rental project located at 207 – 219 Main Avenue S (at the southwest corner of S Second Street and Main Avenue S) in Downtown Renton. The six-story mixed-use apartment project has one level of underground parking (five residential stories over one story of structured parking and commercial retail and residential amenity spaces, plus one below-grade level of structured parking), 101 apartment units, 132,171 sf of residential space, 3,987 sf of non-residential (commercial retail) space, and 117 structured parking spaces (101 residential and 16 commercial). The estimated potential property tax savings related to the Exemption is approximately $155,046 per year ($1.24 million for the eight-year period) for The Lofts at Second and Main project. This equates to a potential property tax savings of approximately $1,535 per year per housing unit ($12,281 per housing unit for the eight-year period). The City of Renton’s portion of the above estimated potential property tax savings related to the Exemption is approximately $34,741 per year ($277,929 for the eight-year period) for The Lofts at Second and Main project. Although the City will receive additional property tax revenue from the new commercial space and any increased assessed value for the land as a result of the new construction on site, the City will not receive property tax revenue from the residential improvements until after the eight-year property tax exemption period. The project paid a $1,000 initial application fee and satisfies the City’s Exemption eligibility requirements as outlined in RMC 4-1-220D: The multi-family housing units are located in one or more new buildings designed for permanent residential occupancy, each with four or more dwelling units; The project is located in the Center Downtown (CD) zone as part of the Downtown designated residential targeted area; 1 In 2007, the Washington State Legislature passed the Engrossed Second Substitute House Bill 1910, in part, to modify the limited the property tax exemption for future eligible projects to eight years or 12 years (the longer term being available if the project provides at least 20% of the units as affordable housing). AGENDA ITEM #4. Ed Prince, Council President Page 3 of 3 November 5, 2015 The project is a mixed-use development; and The project consists of a minimum of 30 dwelling units. As provided for in RMC 4-1-220F, the CED Administrator needs to approve or deny the Exemption application within 90 days of receipt and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for The Lofts at Second and Main project to receive a partial property tax exemption upon completion. Subject to the Council’s approval of the agreement, the CED Administrator intends to approve the application for The Lofts at Second and Main project. (Please see Attachment 1 for the proposed Exemption Agreement for The Lofts at Second and Main project.) The Lofts at Second and Main project is a high-profile, mixed-use project at a major gateway to Downtown Renton. The project will provide $17 million in private investment in Downtown Renton, significantly expand the housing opportunities Downtown, and support the City’s ongoing revitalization efforts in Downtown Renton. CONCLUSION: Renton’s Multi-Family Housing Property Tax Exemption program was established to help increase housing opportunities in designated residential targeted areas, including Downtown Renton. The Lofts at Second and Main project will provide an additional 101 apartment units in Downtown Renton and further the City’s 2016-2021 Business Plan Goals. cc:Jay Covington, CAO Jason Seth, City Clerk Iwen Wang, Administrative Services Administrator Gregg Zimmerman, Public Works Administrator Terry Higashiyama, Community Services Administrator Cliff Long, Economic Development Director AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 1 ATTACHMENT 1 MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT FOR THE LOFTS AT SECOND AND MAIN THIS AGREEMENT is entered into this ____ day of _______________, 201___ by and between RENTON HERITAGE LLC, a Washington limited liability company (hereinafter referred to as the “Applicant”), and the CITY OF RENTON, a municipal corporation (hereinafter referred to as the “City”). Recitals. 1.Applicant has applied to the City for a limited property tax exemption as provided for in Chapter 84.14 RCW and RMC 4-1-220 for multi-family housing residential rental housing located in the Center Downtown (CD) zone as part of the Downtown residential targeted area and the Department of Community and Economic Development Administrator has approved the application; and 2.Applicant has submitted to the City preliminary site plans, floor plans, and elevations for The Lofts at Second and Main with one hundred and one (101) new multi-family housing units to be constructed as part of a mixed-use projec (hereinafter referred to as the “Project”) on property located at 207 – 219 Main Avenue S, Renton, Washington, and more fully described in Exhibit A attached hereto, (hereinafter referred to as the “Property”); and 3.Applicant is the owner of the Property; and 4.The City has determined that the Project will, if developed as proposed, satisfy the requirements for a Final Certificate of Tax Exemption. NOW, THEREFORE, the City and Applicant do mutually agree as follows: 1.Conditional Certificate of Acceptance of Tax Exemption City agrees, upon execution of this Agreement following approval by the City Council, to issue a Conditional Certificate of Acceptance of Tax Exemption, which conditional certificate shall expire three (3) years from the date of approval of this Agreement by the City Council, unless extended by the Administrator of the Department of Community and Economic Development (or any other City office, department or agency that shall succeed to its functions), or his or her designee, (hereafter referred to as “Administrator”) as provided in RMC 4-1-220I. AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 2 2.Agreement to Construct Multi-Family Housing. a.Applicant agrees to construct the Project on the Property substantially as described in the site plans, floor plans, and elevations on file with the City’s Department of Community and Economic Development or its functional successor (hereafter referred to as “Department”) as of the date of the City Council’s approval of this Agreement, subject to such modifications thereto as may be required to comply with applicable codes and ordinances; provided, that in no event shall such construction provide fewer than thirty (30) new multi-family housing dwelling units designed for permanent residential occupancy, nor shall permanent residential housing comprise less than fifty percent (50%) of the gross floor area of the mixed-use project constructed pursuant to this Agreement. b.Applicant agrees to construct the Project on the Property to comply with all applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the City’s development regulations in Title IV of the RMC and the City’s applicable design standards and guidelines. The Applicant further agrees that approval of this Agreement by the City Council, its execution by the Mayor, or issuance of a Conditional Certificate of Acceptance of Tax Exemption by the City pursuant to RMC 4-1-220F3 in no way constitutes approval of proposed improvements on the Property with respect to applicable provisions of the City’s development regulations included in Title IV of the RMC or any other applicable regulation or obligates the City to approve proposed improvements to the Property. c.Applicant agrees that the Project will be completed within three (3) years from the date of approval of this Agreement by the Council, unless extended by the Administrator for cause as provided in RMC 4-1-220I. 3.Requirements for Final Certificate of Tax Exemption. Applicant may, upon completion of the Project and upon issuance by the City of a temporary certificate of occupancy, or a permanent certificate of occupancy if no temporary certificate is issued, request a Final Certificate of Tax Exemption. The request shall be in writing directed to the Administrator and be accompanied by the following: a.A statement of expenditures made with respect to each multi-family housing unit and the total expenditures made with respect to the entire Project and Property; b.A description of the completed work and a statement of qualification for the multi-family housing property tax exemption; AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 3 c.A statement that the Project was completed within the required three-(3) year period or any authorized extension and documentation that the Project was completed in compliance with the terms of this Agreement; d.The total monthly rent of each multi-family housing unit rented to date; e.The income of each renter household to date at the time of initial occupancy; and f.Any such further information that the Administrator deems necessary or useful to evaluate the Project’s eligibility for the Final Certificate of Tax Exemption. 4.Agreement to Issue Final Certificate of Tax Exemption. The City agrees to file a Final Certificate of Tax Exemption with the King County Assessor within forty (40) days of submission by the Applicant of all materials required by paragraph 3 above, if Applicant has: a.Successfully completed the Project in accordance with the terms of this Agreement and RMC 4-1-220; b.Filed a request with the City for a Final Certificate of Tax Exemption with the Administrator and submitted the materials described in paragraph 3 above; c.Paid the City a fee in the amount of one thousand dollars ($1,000); and d.Met all other requirements provided in RMC 4-1-220 for issuance of the Final Certificate of Tax Exemption. 5.Duration of the Property Tax Exemption Subject to the terms of this Agreement and the requirements of RMC 4-1-220, the value of improvements qualifying under RMC 4-1-220 is exempt from ad valorem property taxation for eight (8) successive years beginning January 1st of the year immediately following the calendar year of issuance of the final certificate of tax exemption. 6.Annual Certification and Report. Within thirty (30) days after the first anniversary of the date the City issued the Final Certificate of Tax Exemption and each year thereafter for the duration of the tax exemption period noted in paragraph 5 above, Applicant agrees to file an annual report with the Administrator. The report shall contain such information as required by RCW AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 4 84.14 and as the Administrator may deem necessary or useful, and shall at a minimum include the following: a.A statement of the occupancy and vacancy of the multi-family housing units during the twelve months ending with the anniversary date; b.A certification that the multi-family housing units, Project, and Property have not changed use since the date the City issued the Final Certificate of Tax Exemption, c.A statement that the multi-family housing units, Project, and Property continue to be in compliance with this Agreement and the requirements of RCW 84.14 and RMC 4-1-220; d.A description of any improvements or changes to the Project made after the City issued the Final Certificate of Tax Exemption; e.The total monthly rent of each multi-family housing unit rented or the total sale amount of each multi-family housing unit sold to an initial purchaser during the twelve months ending with the anniversary date; f.The income of each renter household at the time of initial occupancy and the income of each initial purchaser of owner-occupied multi-family housing units at the time of purchase during the twelve months ending with the anniversary date; g.Any additional information requested by the City pursuant to meeting any reporting requirements under RCW 84.14; and h.Any such further information that the Administrator deems necessary or useful to evaluate the Applicant’s compliance with this Agreement and the requirements of RCW 84.14 and RMC 4-1-220. 7.No Violations for Duration of Exemption. For the duration of the property tax exemption granted under RMC 4-1-220 and noted in paragraph 5 above, Applicant agrees that the Project and the Property will have no violations of applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the development regulations in Title IV of the RMC, for which the Department of Community and Economic Development or its functional successor shall have issued a notice of violation, citation or other notification that is not resolved by a certificate of compliance, certificate of release, withdrawal or otherwise, within the time period for compliance, if any, provided in such notice of violation, citation or other notification or any extension of AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 5 the time period for compliance granted by the Department of Community and Economic Development. 8.Notification of Transfer of Interest or Change in Use. Applicant agrees to notify the Administrator within thirty (30) days of any transfer of Applicant’s ownership interest in the Project, the Property or any improvements made to the Property. Applicant further agrees to notify the Administrator and the King County Assessor within sixty (60) days of any change of use of any or all of the multi- family housing units on the Property to another use. Applicant acknowledges that such a change in use may result in cancellation of the property tax exemption and imposition of additional taxes, interest, and penalty pursuant to State law. 9.Cancellation of Exemption - Appeal. a.The City reserves the right to cancel the Final Certificate of Tax Exemption if at any time the multi-family housing units, the Project, or the Property no longer complies with the terms of this Agreement or with the requirements of RMC 4-1- 220, or for any other reason no longer qualifies for a property tax exemption. b.If the property tax exemption is canceled for non-compliance, Applicant acknowledges that state law requires that an additional real property tax is to be imposed in the amount of: [a} the difference between the property tax paid and the property tax that would have been paid if it had included the value of the nonqualifying improvements, dated back to the date that the improvements became nonqualifying; [b] a penalty of 20% of the difference calculated under paragraph (a) of this paragraph 9; [c] interest at the statutory rate on delinquent property taxes and penalties, calculated from the date the tax would have been due without penalty if the improvements had been assessed without regard to the exemptions provided by Chapter 84.14 RCW and RMC 4-1-220. Applicant acknowledges that, pursuant to RCW 84.14.110, any additional tax owed, together with interest and penalty, become a lien on the Property and attach at the time the Property or portion of the Property is removed from multi- family housing use or the amenities no longer meet applicable requirements, and that the lien has priority to and must be fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the Property may become charged or liable. Applicant further acknowledges that RCW 84.14.110 provides that any such lien may be foreclosed in the manner provided by law for foreclosure of liens for delinquent real property taxes. c.Upon determining that a tax exemption is to be canceled, the Administrator shall notify the property owner by certified mail, return receipt requested. The property owner may appeal the determination in accordance with RMC 4-1-220L2. AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 6 10.Amendments. No modification of this Agreement shall be made unless mutually agreed upon by the parties in writing and unless in compliance with the provisions of RMC 4-1-220H, including but not limited to the Applicant’s payment of a five hundred dollars ($500) contract amendment fee. 11.Binding Effect. The provisions, covenants, and conditions contained in this Agreement are binding upon the parties hereto and their legal heirs, representatives, successors, assigns, and subsidiaries. 12.Recording of Agreement. The Administrator shall cause to be recorded at the Applicant’s expense, or require Applicant to record, in the real property records of the King County Department of Records and Elections, this Agreement and any other documents as will identify such terms and conditions of eligibility for exemption as the Administrator deems appropriate for recording. 13.Audits and Inspection of Records. Applicant understands and agrees that the City has the right to audit or review appropriate records to assure compliance with this Agreement and RMC 4-1-220 and to perform evaluations of the effectiveness of the multi-family housing property tax exemption program. Applicant agrees to make appropriate records available for review or audit upon seven days’ written notice by the City. 14.Notices. All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when hand-delivered within normal business hours, when actually received by facsimile transmission, or two business days after having been mailed, postage prepaid, to the parties hereto at the addresses set forth below, or to such other place as a party may from time to time designate in writing. APPLICANT: Aquarius Global LLC 11747 NE 1st Street, Suite 300 Bellevue, WA 98005 Phone: 425-451-8188 Fax: 425-451-8498 Attention: James G.S. Hwang, Manager AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 7 CITY:City of Renton Department of Community and Economic Development 1055 South Grady Way Renton, Washington 98055 Phone: (425) 430-6592 Fax: (425) 430-7300 Attention: Administrator 15.Severability. In the event that any term or clause of this Agreement conflicts with applicable law, such conflict shall not affect other terms of this Agreement which can be given effect without the conflicting terms or clause, and to this end, the terms of the Agreement are declared to be severable. AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written above. RENTON HERITAGE LLC A Washington Limited Liability Company ____________________________ By: James G.S. Hwang Managing Member Aquarius Global LLC CITY OF RENTON ____________________________ Denis Law, Mayor APPROVED AS TO FORM:ATTEST: _______________________________________________________ City Attorney Jason Seth, City Clerk AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 9 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this ________ day of _____________________, 201_____, before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me James G.S. Hwang, to me known to be the Managing Member of Aquarius Global LLC that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of said party, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. [notary seal] NOTARY PUBLIC Printed Name: Residing at My commission expires AGENDA ITEM #4. Multi-Family Housing Property Tax Exemption Agreement The Loft at Second and Main 10 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this ________ day of _____________________, 201_____, before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me Denis Law, to me known to be the Mayor of the City of Renton, the municipal corporation that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said municipal corporation for the uses and purposes therein mentioned and on oath stated that he was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. [notary seal] NOTARY PUBLIC Printed Name: Residing at My commission expires AGENDA ITEM #4. Exhibit A Multi-Family Housing Property Tax Exemption Agreement Exhibit A – Legal Description The Lofts at Second and Main i MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT EXHIBIT A LEGAL DESCRIPTION LOTS 16 THROUGH 20, INCLUSIVE, BLOCK 13, TOWN OF RENTON, ACCORDING TO THE PLAT THEREOF RECORDED IN THE VOLUME 1 OF PLANTS, PAGE 135, IN KING COUNTY, WASHINGTON; EXCEPT THE WEST 5 FEET OF SAID LOT 16 DEEDED TO THE CITY OF RENTON BY QUIT CLAIM DEED RECORDED MAY 7, 1979 UNDER RECORDING NO. 7905070629; AND EXCEPT THE WEST 5 FEET OF SAID LOT 17 DEEDED TO THE CITY OF RENTON BY QUIT CLAIM DEED RECORDED MAY 7, 1979 UNDER RECORDING NO. 7905070628. SITUATE IN THE CITY OF RENTON, COUNTY OF KING, STATE OF WASHINGTON. AGENDA ITEM #4.